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  1. #1

    Default In Debt from Month to Month Contract That Won't End

    My question involves collection proceedings in the State of: Georgia

    I'm sorry if I have the wrong forums; if so, please direct me where to go.
    Back story: I joined a gym back in December of last year. I signed a month to month contract.

    The wording in the contract, under TERM OF MEMBERSHIP AND MONTHLY RENEWAL FEE: "The term of this membership will automatically continue and be renewed on a month to month basis following the expiration date shown above [Date of Contract 12-15-10], upon your payment of monthly renewal dues of $____ per month, payable in advance plus any sales or similar taxes payable by us thereon...The right to continue your membership on a month to month basis will exist only if you have a member in good standing, and have no been in default or delinquent or in violation of any of the term of your contract with us. Upon each proper payment by you of monthly dues, we shall be deemed to have entered into a separate and independent contract with you having all the same terms and conditions as this contract...After payment of monthly dues commences, you may terminate your agreement with us, effective as of the next dies payment date upon written notice to us by registered or certified mail, return receipt requested. Termination of this agreement or your failure to pay each consecutive monthly dues payment will extinguish your membership under this contract and your right to reinstate your membership pursuant to this contract."
    I left out anything that would have just been extra reading.
    If anything else is needed regarding the contract, let me know. I'll edit and add it when I get the chance

    Anyways, a several months back I misplaced my debit card, cancelled and had it replaced without updating my information with the gym. At the time I figured '...your failure to pay each consecutive monthly dues payment will extinguish your membership under this contract..." to do just that, end my contract. I'd pay the charge back and be done with it.

    However, they send it to collections agency, saying I need to send a certified letter to end my contract. Now I'm hit with a higher bill, and they continued to charge me a monthly membership. I try to end my contract by sending a certified letter, and they say they can not end my contract until I pay the fees. So they are charging me monthly fees on top of that. Right now I'm looking at a $90 bill, with about 3 months of monthly fees,a $15 charge back fee and 30$ in late fees (on the back on my contract is says I can be charged 5% or $5 of what is owed, whichever is less).

    Where do I stand here? What do I owe them?The full 90? Do I let this go to court? Can they still charge me monthly fees after I sent in the letter to end my contract? What are my options? What do I do?

    If I need to provide more information regarding this, please let me know. This is being a pain in the ass, as I never used the gym but twice (I go to a much better one) and having had been a previous member of this gym, I feel used and cheated. I'd rather pay them nothing, as they got way more out of me than they ever deserve. I called up once to speak with the manager and he was rude as can be.

    Thank you for your help in regards to my situation

  2. #2
    Join Date
    Sep 2005
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    Default Re: In Debt from Month to Month Contract That Won't End

    You chose not to properly terminate your contract. The fact that your delinquency gives them the right to revoke your contract doesn't obligate them to do so.

  3. #3

    Default Re: In Debt from Month to Month Contract That Won't End

    Thought I would get an e-mail on response to this...
    Understood. I did send in the letter to cancel the account; they are saying they can still charge me monthly fees as I still owe them money. And I am being charged more than the 5% on the late fees, can they do this as my contract states "If we receive payment more than ten(10) days after it is due, we may charge you a late charge of five percent (5%) of the payment or five dollars ($5.00) whichever is less.".

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: In Debt from Month to Month Contract That Won't End

    If you fulfilled the contractual requirement of sending your termination letter by certified mail, return receipt requested, send them a copy of the return receipt and remind them that you cancelled as of the next dies payment date. If you contracted to pay late fees in the amount of "five percent (5%) of the payment or five dollars ($5.00) whichever is less", then that's what you agreed to pay. I don't think a court would deem a late fee of less than $5 as unreasonable; you're free to try to litigate the issue.

  5. #5
    Join Date
    Jan 2010
    Location
    New Jersey
    Posts
    3,666

    Default Re: In Debt from Month to Month Contract That Won't End

    Basically what there telling you is that you need to send them any money that is owed to them before they can terminate your contract.

    They already have your letter that you want the membership terminated, but they will not terminate the contract till the balance of your bill reaches zero.

    If you don't pay the full balance they will continue to bill you at the monthly rate and then ether send you to collections or sue you.

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