Bally's rip-off

catnip · September 14, 2004

A favorite bartender of mine was recently telling me of getting suckered into a membership at a Bally's gym here in NYC. His English isn't that good, and he understood the rep telling him that there was a $5 fee for one month. He just had to cancel before the month was over and there would be no obligation. Three weeks into it, he went to cancel and was now told that he needed to cancel in the first 12 days. Now they'll charge his checking account each month for 3 years at a pretty high monthly rate.

He probably didn't read the contract carefully, and you can say that it is pretty stupid to give your checking account number to a gym, all true; but it also seems extremely sleazy to take advantage of immigrants (or anyone) this way.

So, does anyone have experience in what can be done in this case. They're telling him they'll destroy his credit rating, that even if he closes his bank account the account will automatically re-open each month when the payment is due. Like stepping into some Mafia nightmare. Any helpful info is appreciated.

Thanks

Boston Guy · September 14, 2004

That's pretty outrageous.

It would be worth spending a bit of money to get out of an expensive three-year commitment. I'd suggest that he engage an attorney have the attorney send a certified letter to the gym, the president of the chain, etc.

Alternatively -- and perhaps better -- he should contact the NY State Attorney General's office. This is a consumer rip-off big time. They should stand behind what people are told by their employees. I would think that the threat of legal action and/or NYS AG involvement and/or bad publicity would get them to back down.

BG

OneFinger · September 15, 2004

>...They're telling him they'll destroy his credit rating...

Probably a true statement. It sounds to me like they have a legally binding contract. If he refuses to pay they have every right to report the delinquency to the credit reporting agencies. I believe that stays on the record for 7 years after the last action. Since it's a 3-year contract, he's got 10 years of bad credit reports.

>...that even if he closes his bank account the account will automatically re-open each month when the payment is due...

This is an out-right lie. Even automatic withdrawals cannot re-open an account that has been closed. When he closes the account he needs to inform the bank of the automatic withdrawal and have it put in writing that he no longer authorizes the withdrawals. Once notified, the bank cannot legally reopen the account.

However, if he gave them 3 years of post-dated checks, that might be problematic. But I believe, once notified, the bank would also reject those checks.

The gym has every right to take him to court and win a judgment. Once judgment is granted, it is the gyms responsibility to try and collect that judgment. Your friend could be hauled into court again and have to provide current bank info, income verification, etc. They could seize assets in his accounts, garnish his wages, put a lien on property, etc. But those things can only be done after winning a judgment.

...Like stepping into some Mafia nightmare...

Maybe he should fight fire with fire and hire a mafia enforcer. :+

In all seriousness, he's probably screwed. But I'd sure make them go to court to collect. I suspect that the worst thing that will happen is that they turn it over to a collection agency after writing it off as a bad debt. Collection agencies can be brutal but they too have to follow the law. The gym and a collection agency will probably try to intimidate him into paying and I doubt they'll go to the expense and hassle of court.

+ *deej* · September 15, 2004

>he should contact the

>NY State Attorney General's office. This is a consumer

>rip-off big time.

Or hit them where it *really* hurts. Contact the local TV stations and see if their Consumer Affairs reporters have any interest. Those guys LOVE stories about consumer ripoffs, and a lot of companies will back down in the face of bad press.

They'd much rather see the reporter say "all's well, Bally's made good" at the end of the story.

Boston Guy · September 15, 2004

An excellent suggestion.. if they'll do it.

BG

eastbayguy · September 15, 2004

>Or hit them where it *really* hurts. Contact the local TV

>stations and see if their Consumer Affairs reporters have any

>interest. Those guys LOVE stories about consumer ripoffs, and

>a lot of companies will back down in the face of bad press.

>

>They'd much rather see the reporter say "all's well, Bally's

>made good" at the end of the story.

Sadly, this one may depend on how if Ballys is an advertiser and how much they spend. Once upon a time those consumer affairs reports did a ton of good. These days, from personal experience, media are reluctant in the extreme to take on a big advertiser.

--EBG

FrancoDiSantisxxx · September 15, 2004

Long Term Contracts

There are various ways to deal with this kind of situation, which happens to a lot of people who never bother to or find reading contracts with a lot of text and small print a nuisance. An well known escort here in Los Angeles got stuck with a three year contract at a well known chain here because their sales department were assholes. As one of the clients pointed out here, your friend was misinformed, at best, regarding the likely outcome of closing his bank account. However, his credit rating could certainly be negatively impacted and that is something for him to avoid, if possible; particularly as other clients pointed out, he does have other options, including the office of consumer affairs in New York City (assuming this is New York) and/or the State Attorney General. This should be done in addition to contacting any and all local news outlets which might regularly broadcast consumer affairs features.

I would suggest that someone help him draft a letter to the manager of the gym pointing out that the salesman induced him to enter into a written contract under false representations vis a vis length, liability and cancellation and then also provided false information when he went to cancel the contract. The letter should request that the contract be terminated effective the end of the first months, ask for a refund of any futher payments withdrawn from his account and that his credit rating not be impacted; the letter should show the City Consumer Affairs office and State Attorney General consumer affairs division as "ccs" on the letter.

Hopefully, this simple step will get him the desired outcome. If not, he can then pursue it further. There are also possibly low income legal clinics that might be able to advise him. Your friend will, likely, however require assistance in navigating all these channels.

http://www.gaydar.co.uk/francodisantis

Spida · September 15, 2004

He could also file a Better Business Bureau complaint and with the complaint contact the manager of the gym that might get them talking. I had to do this with Dell, it was the only way I could get someone to correct my problem, of course it wasn't a contract dispute.

September 15, 2004

>...Like stepping into some Mafia nightmare...

>

>Maybe he should fight fire with fire and hire a mafia

>enforcer. :+

How do we know he isn't already dealing with the mafia when dealing with the gym? A gym sounds like the type of venue the mob would use to launder some of their $$$$ (or Hells Angels)

Chairmans Pig · September 15, 2004

Often times there's an 'out' in the contract that says if the person is moving, and provides such documentation, then the contract is nullified. At least this was the case when I left DC for NY.

Perhaps the bartender can 'move'??

CP

HooBoy · September 15, 2004

One year, at Christmas, I took advantage of one of Bally's Free trials, only to be locked into their cubicle office, surrounded by black T-shirted hulks blocking the door. Despite my protests that I had to buy Christmas gifts for some orphans, they would not let me out until I signed the contract.

I did.

The result? I got in the best shape of my life.

Tell your friend to work out. It'll be good for him...and there are some really hot guys at Bally's.

I do not like nor approve of their high pressure tactics, but I had the expensive membership, so I put it to waist with no regrets.

+ *BenjaminNicholas* · September 15, 2004

Extended oral workouts don't count HB... If that were the case, i would be competing in the Ah'nuld Shwarzneger Classic this coming weekend

I dealt with a Ballys contract a few years ago and it was a real headache, but ultimately it taught me a lesson: Read EVERYTHING before you sign your name to something. I could have saved myself from taking out a loan for over $2k with Bally's banking services. It's literally what you're doing when signing up with them...

Luckily, i had enough recourse legally to get out of my contract, with the knowlege that Ballys didn't disclose enough verbally when sitting me down and putting things in front of me.

In any case, as HB said, since he's probably locked into the contract, why not get into the best shape of your life. It's a great excuse and motivator to get into the gym and feel the burn.

Warmest Always,

Benjamin Nicholas

Candyman · September 15, 2004

Bally's isn't the only rip-off. World Gym is almost as bad. I signed up 4 years ago for a 1 year membership. Everything was fine and the money just came out of my credit card. After having a car accident and "freezing my membership" for 2 months I lost motovation to keep working out. I went in to cancel and was told that I owed for another 6 months. Seems that the contract automatically renews and I had to make up for the "frozen time". I brought the contract to a lawyer friend and was told that I should smile when I bend over... and I'm a top

DaninWA · September 15, 2004

24 Hour Fitness is just as bad as Bally's. I had a problem with someone fraudulently using my credit card, cancelled the card, and filled out the new paperwork for my auto payments at 24HR with the new credit card number. Within one day, someone started fraudulently using my card number again. I know it was someone at 24 Hour Fitness because that was the only place I had used the new card number. Reported this to my credit card company and wrote a letter to the 24 Hour corporate office cancelling my auto payments and explaining why I was doing it. Even though I had paid first and last month in advance and paid cash for my dues at the gym I was using aftercancelling the auto payments, they froze my membership and refused to allow me to use the gym or repay the excess amount I had paid.

I filed a formal, criminal complaint with the Oregon Attorney General's office. We'll see what happens.

On the bright side, I found a small, private gym. Paid for one year in advance ($449). No pressure to sign up for longer than I wanted to and everyone there is terrific. I get greeted by name when I walk in the door. In the end, I win.

Dan

DaninWA · September 15, 2004

24 Hour Fitness is just as bad as Bally's. I had a problem with someone fraudulently using my credit card, cancelled the card, and filled out the new paperwork for my auto payments at 24HR with the new credit card number. Within one day, someone started fraudulently using my card number again. I know it was someone at 24 Hour Fitness because that was the only place I had used the new card number. Reported this to my credit card company and wrote a letter to the 24 Hour corporate office cancelling my auto payments and explaining why I was doing it. Even though I had paid first and last month in advance and paid cash for my dues at the gym I was using aftercancelling the auto payments, they froze my membership and refused to allow me to use the gym or repay the excess amount I had paid.

I filed a formal, criminal complaint with the Oregon Attorney General's office. We'll see what happens.

On the bright side, I found a small, private gym. Paid for one year in advance ($449). No pressure to sign up for longer than I wanted to and everyone there is terrific. I get greeted by name when I walk in the door. In the end, I win.

Dan

September 16, 2004

Bally's sales personal are quite ethically challenged.

Several years ago my 17-year old niece joined Ballys. Since she was

a minor, she needed to have a parent sign the application form.

Her mother wasn't with her at the time and the Bally's rep told her

"oh you can sign your mother's name" A few months later my niece

couldn't afford the fees and was going to a new school miles

away from Ballys. Dispite the obvious forgery (encouraged by a

Bally's employee) It took several years of nasty phone calls, letters,

to finally get it settled during which my sister had a bad mark on

her credit report.

Seeing how Ballys corporate acts, I would never ever go to Ballys.

I did have a very good experience with New York Sports Club

(and an oh so sexy personal trainer/boxer named Jesse) }(

September 16, 2004