David Lloyd clubs and ARC Europe

[kjaksa]

Hi there, 

I came into financial difficulty at the end of March last year (2023).

I worked as a contractor for a friend's company and it got ended early (i didn't enforce it since I didn't want to cause any detriment to my friend and his company).

I was a member of David Lloyd Clubs since January 2023. And had rarely used the club since June. I sent payments for every month. And the last one was on the 2nd of January.

Then my account had no money in it for the month of February (since I didn't have any) and the Direct Debit bounced. I assumed that since the 12 months of the contract were up, that would be it and they would cancel my membership. They tried to take the direct debit a few more times so I just cancelled it. I received calls from them and ignored them.

I then received payment reminder emails which I didn't open or reply to on the following dates in February 2024:

2nd, 8th, 16th, 22nd.

And then on the 29th I received the following email:

Quote

Your Payment Portal Login Membership Number: ***** Last Name:****** Hi ***,     There's still an outstanding payment of £58.00 on your account. You can pay in one click.

PAY NOW

Alternatively, you can pay:    At reception with your debit or credit card    Or via Manage My Account in the David Lloyd Clubs App     If we don't get payment by the end of the month, we'll pass your details on to our administration partners, ARC Europe Ltd, who will go about settling the outstanding balance and an extra £75 could be added to your account. Not something any of us want. We're always happy to chat, so if you have any questions about your membership, book a call via Manage My Membership in the App. You can also contact us via the website, by email to leicester@davidlloyd.co.uk or in writing.  We look forward to hearing from you.  Stephen Empson Group Central Membership Manager P.S If you've already sent your payment, then of course forget about this email. But don't forget to download the App if you haven't already. You can stay on top of all things membership, plus it's packed with online workouts to keep you entertained and active when you can't make it to the Club.

I then sent them an email saying (29/02):
 

Quote

Hi David Lloyd,

 

I lost my job in March (2023) and I said to the receptionist at the time that I wouldn't be able to come much longer. She said that since I was in my contract I'd have to keep paying until it ended. Annoyingly, I've had to do that. Now that February has come around. I cannot afford for this membership anymore and I'm not sure why my membership hasn't ended. I haven't used your services, and I have no intention of coming while I am in this financial situation since my time is better spent working. If the situation changes in the future, then I will come back, I enjoyed the experience at the club. But right now it's not financially feasible. Although, as a side note, threatening debt collectors to your members is an aggressive tactic and although I am someone that looks at a service objectively instead of relating it to emotional connections. I imagine for some people, that would put them off joining again.

 

I'm confused about the situation, my notice was given, my contract is cancelled.

 

They responded (01/03):

Quote

Hi ***,

Thanks for getting in touch.

To cancel you membership, you are required to contact the Membership Team in writing via your app or email.  Unfortunately the Reception team are not Membership trained so unable to process cancellations.

Did you contact the Membership Team at anytime as I unable to find any previous tickets for you?

As you joined us in January 2023, we would have been able to process a cancellation for February 2024 which is the end of your initial term.  After this time, your notice period to cancel is 3 calendar months.

 

I look forward to hearing from you.

Best wishes,

 

Laura Freak

Membership Support Advisor

David Lloyd Clubs

Then I replied (01/03):
 

Quote

I asked about it and they said exactly that. So I just responded well, “consider this my 3 months notice”.

 

To show why the 3 month notice clause it’s absurd. It’s bypassable just by saying at the start of each month. I’m giving in my three months notice. Of course, every member can do this and then decide to continue their membership even if they say they are going cancel. So it gives no tangible benefit to David Lloyd’s and their cash roll. Other than being a barrier to make it difficult to cancel your membership. Something that is, by its nature, anti-competitive and not in the best interest of your customers. 

 

If you want to keep your members, provide them good services, don’t give them obnoxious contract clauses. Regardless, the reason I am cancelling is because of financial issues, which is why you have been unable to take out the direct debit. The money doesn’t exist. I have my 3 months notice on a rolling basis to you. So cancel my membership. Expect to hear from me in a couple months when my financial situation has improved and I want to use your facilities again. But for right now, I can't afford the time or money to use them.

Then they sent me the following email with my terms and conditions attached (04/03):
 

Quote

Hi ***,

Thanks for your reply and I am sorry to hear the fees are no longer feasible for you.

If you have had a change to your financial situation since joining with us, please let us know as with supporting documentation provided we can review your end date.

Please find attached the t's and c's which were agreed to on joining for your reference.

If you are wishing to use the club in a few months time, we do offer a suspension for between 2 and 9 months.  Suspensions are chargeable at 25% of your monthly fee although we do not charge if in financial difficulty.  This will keep your membership on your current rate and save you paying another joining fee in the future.

I do hope you are keeping well.

Best wishes,

Laura Freak

Membership Support Advisor

David Lloyd Clubs

 

I have now received an email today (7/04/24) from arc europe which says:
 

Quote

Current Arrears To Pay: £136.00
Amount Owed to End of Contract: £307.00

Dear ** ******* ,

Our client, David Lloyd Leisure Limited, has passed your account to us as they have been unable to collect your outstanding membership fees.

What are these amounts for?

The outstanding amount of £307.00 is for any membership arrears you have, plus the remaining months on your notice period and the contractual administration fee added by our client due to your missed payment.

I want to remain a member and continue to use the Club, what should I do?

To use the Club for the remainder of your notice period, you will need to pay your arrears to us (currently £136.00) and then you can contact your home club Leicester on leicester@davidlloyd.co.uk to reinstate your Direct Debit. Once this is in place you can enjoy the Club facilities while you make the remaining monthly payment(s) that are due. Or you can pay the amount owed to the end your notice period of £307.00 to us and then continue to use the Club for the months you have paid up to.

I don’t want to continue my membership, what should I do?

You’ll need to pay the outstanding amount to the end of your notice period of £307.00. You can make a secure card payment, 24 hours a day by visiting our website www.arceuropeltd.co.uk. or by calling our automated payment hotline on 01332 647693. For details of all payment methods please visit our website. You will be able to use the Club for the months you have paid up to, once this payment has been made.

And a text message introducing themselves. I've not sent any correspondence yet, can somebody please advise?

[lolerz]

Ignore ARC totally. Don't waste your time writing/calling/whatever.

They have no legal powers whatsoever.

Only thing David Lloyd (Not ARC) can do is the same as anyone else, issue a court claim.

Only way they can do that is by sending a letter of claim. If you get one of those, come back here.

There have been a couple cases where David Lloyd have taken people to court but that was for far higher amounts than what's claimed here.

The likelihood of them taking you to court is quite low for that amount.

[dx100uk]

moved to the gym forum.

plenty of threads here on DL.

their 3mts cancellation is not aligned with the std industry guidelines, at most you owe ONE payment following your notification you wish to cancel.

ARC are a DCA.

a DCA is not a bailiff 

and have 

ZERO legal powers on ANY debt no matter what it's type.

dx

 

[kjaksa]

I was somewhat considering sending them an email saying I would pay the 1 month membership fee (maybe even after 9 months since I can say I just wanted a suspension)  for them to cancel my membership and not contact me again.

But I assume they'd just say no anyway.

So best course of action is just ignore until they get a court involved?

[dx100uk]

DL as with all gyms following the ashbourne debacle in 2012 will not do court.

there were 2 recent DL court claims, the 1st any gym has launched since 2012, both were for joint or family membership whereby the claimed sums were near£1000 each. neither i believe have gone anywhere and are now stayed .

as you've read in other threads you could WRITE, (never use email!) offering 1 mths membership, giving 14 days to accept, then ignore them when they refuse.

i cant ever see any gym doing court for low level arrears  still.

dont forget also that any added fees like this £75 to pass it to ARC are unlawful and cannot be levied either.

dx

[Nicky Boy]

kjaska,

You certainly missed a trick here!

Section15.1 of their T's &C's allow you to end your membership early due to "loss of employment".

(PDF attached)

 

A question for the team... Is there any mileage in trying to enforce this after the event and get the OP some money back?

UK-Terms-and-Conditions-Dec-2022-1.pdf

[dx100uk]

yes its been achieved before.

dx

[Nicky Boy]

So, are you up for a fight kjaska?

Or just happy with the status quo?

[slick132]

Hi Kjaksa,

Site Team NickyBoy is right about your right to cancel under DL's own T&C's. However, I think if you were going to reclaim fees under the DD Guarantee Scheme, this should have been done sooner.

The choice is, of course, yours but let us know what happens.

[kjaksa]

I attended the gym during that period (rarely).

And to be honest, I assumed that I was going to get some more stable employment in the following months and could continue my membership.

I assume that my case would get thrown out the moment DL said I used their facilities in month x,y,z but maybe I’’m wrong. 

[slick132]

You'd need to know the last date you used the facility and the date you told the gym, AFTER then, that you wanted to cancel due to loss of job/change in finacial circumstances.

Then we could offer more informed advice.