Personal Finance

Random collection file on my Equifax - FROM WORLD GYM.

  • Last Updated:
  • Dec 9th, 2018 12:00 pm
[OP]
Newbie
Nov 21, 2018
32 posts
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Random collection file on my Equifax - FROM WORLD GYM.

Hey guys! Need some advice/help on my situation.

I've had spotless credit ever since I could remember and I always pay debt in full and RARELY ever carry debt. The result was a good credit score!

Recently I checked my Equifax and it looks like World Gym has tried to screw me.

Story is: Back in December 2015 I signed up for 1 year membership. Pay as you go (MONTH-TO-MONTH) type plan with no contracts. I paid the year in full on the spot and did not renew with them, it was a crappy gym and I thought that was the end of it. 3 years later... boom, it shows a collection file from them dating back to 2016!

I called up the world gym that I signed with back in 2015 and I was going back and forth with them and they are confused about the whole situation and it has sort of turned into the manager dodging my calls about this matter.

What can I do?? My credit score has dropped like no tommorow..
Last edited by Nexus313 on Nov 24th, 2018 4:53 pm, edited 3 times in total.
24 replies
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Nexus313 wrote:
Nov 22nd, 2018 9:10 pm
Hey guys! Need some advice/help on my situation.

I've had spotless credit ever since I could remember and I always pay debt in full and RARELY ever carry debt. The result was a good credit score!

Recently I checked my Equifax and it looks like World Gym has tried to screw me.

Story is: Back in December 2015 I signed up for 1 year membership. Pay as you go type plan with no contracts. I paid the year in full on the spot and did not renew with them. 3 years later... boom, it shows a collection file from them dating back to 2016!

I called up the world gym that I signed with back in 2015 and I was going back and forth with them and they are confused about the whole situation and it has sort of turned into the manager dodging my calls about this matter.

What can I do?? My credit score has dropped like no tommorow..
Majority of all gyms use specific language in their contracts that state the gym member must submit membership cancellation 'in writing' one month or 30 days prior to membership end. They use this legal language because they know very few people will actually submit a request to cancel in writing.
Note I am talking about gym membership only.
Without doing so your membership is still active even after you paid the 1 year in advance. Pre-paying a service agreement does not automatically end when the pre-paid service timeframe period ends.
While this ruling is whacked, a gym has the right to renew your contract if you do not cancel it and then bill you for it.

A lot of mobility agreements use similar language. In fact, many service contracts and agreements no matter what they are from fitness to utility to rental equipment all use similar verbiage and all require written cancellation.
Last edited by mikeymike1 on Nov 24th, 2018 4:30 pm, edited 2 times in total.
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Go see the manager if you can't get ahold eh?
Nexus313 wrote:
Nov 22nd, 2018 9:10 pm
Hey guys! Need some advice/help on my situation.

I've had spotless credit ever since I could remember and I always pay debt in full and RARELY ever carry debt. The result was a good credit score!

Recently I checked my Equifax and it looks like World Gym has tried to screw me.

Story is: Back in December 2015 I signed up for 1 year membership. Pay as you go type plan with no contracts. I paid the year in full on the spot and did not renew with them. 3 years later... boom, it shows a collection file from them dating back to 2016!

I called up the world gym that I signed with back in 2015 and I was going back and forth with them and they are confused about the whole situation and it has sort of turned into the manager dodging my calls about this matter.

What can I do?? My credit score has dropped like no tommorow..

WOULD SOMEBODY THINK OF THE CHILDREN!!!
[OP]
Newbie
Nov 21, 2018
32 posts
3 upvotes
mikeymike1 wrote:
Nov 24th, 2018 4:19 pm
Majority of all gyms use specific language in their contracts that state the gym member must submit membership cancellation 'in writing' one month or 30 days prior to membership end. They use this legal language because they know very few people will actually submit a request to cancel in writing.
Note I am talking about gym membership only.
Without doing so your membership is still active even after you paid the 1 year in advance. Pre-paying a service agreement does not automatically end when the pre-paid service timeframe period ends.
While this ruling is whacked, a gym has the right to renew your contract if you do not cancel it and then bill you for it.

A lot of mobility agreements use similar language. In fact, many service contracts and agreements no matter what they are from fitness to utility to rental equipment all use similar verbiage and all require written cancellation.
See, the problem is.. I never got any of this.. Just a collections account on my credit report, 3 years later. I checked my credit a few months ago and it wasn't there, but now it is all of the sudden?
Last edited by Nexus313 on Nov 24th, 2018 4:54 pm, edited 1 time in total.
[OP]
Newbie
Nov 21, 2018
32 posts
3 upvotes
Cheapo-Findo wrote:
Nov 24th, 2018 4:21 pm
Go see the manager if you can't get ahold eh?
Lol, I'm heading there first thing Monday if the manager tries dodging me again.
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You can file a dispute with the reporting agency (Equifax and you should check Transunion as well). Then they have to provide proof of what they’re claiming or it drops off.

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Nexus313 wrote:
Nov 24th, 2018 4:46 pm
See, the problem is.. I never got any of this.. Just a collections account on my credit report, 3 years later. I checked my credit a few months ago and it wasn't there, but now it is all of the sudden?
They probably make more money selling off their sneaky contract to debt collectors than they do in actually pursuing you themselves.

I speculate that this is actually a planned part of their business model, and as such, I think we need a law to govern gym / fitness centre contracts.
What if there were no hypothetical questions?
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May 16, 2017
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I suspect the OP probably signed-up for something like this. And remember, there is no such thing as "no contract" - you signed something, that is a CONTRACT; which is always a good thing to read and keep.

"Automatic Monthly Renewal
The Member/Buyer guarantees to pay maintenance fees for a minimum of twelve (12) months. Any payment made toward the first
month's maintenance fees will be applied toward the minimum twelve-month maintenance fee guarantee. This membership does not
expire after the twelve-month term. This membership automatically renews for further successive terms of one (1) month after the initial
twelve (12) month term.
The Member may cancel this Agreement at any time in accordance with the Consumer Protection Act, 2002
and Section 5 hereof however, if the membership is not cancelled after the initial twelve (12) month term in accordance with Section 5
hereof, the Club will continue to debit the Member on a month to month basis for the maintenance fee.
The Club is authorized to revise
the monthly maintenance fee by giving "The member" at least 30 days’ notice in writing that such change(s) are going to occur.
Cancellations are not valid and binding upon the Club only if they are in writing and delivered to management. Anything other than the
written contents of this Agreement is not binding upon the Club.

5. STATUTORY RIGHTS OF MEMBER. Member may rescind this Agreement in accordance with the provisions of the Consumer Protection
Act, 2002, as set forth on the first page of this Agreement. The Member may rescind the Agreement at any time after the initial term has been met set out in
Section E hereof upon thirty (30) days’ notice by hand delivering written notice to the Manager/Operator of WGS at the address set out above at which time the
Member will receive a signed and dated cancellation receipt.
"
[OP]
Newbie
Nov 21, 2018
32 posts
3 upvotes
robsaw wrote:
Nov 24th, 2018 6:00 pm
I suspect the OP probably signed-up for something like this. And remember, there is no such thing as "no contract" - you signed something, that is a CONTRACT; which is always a good thing to read and keep.

"Automatic Monthly Renewal
The Member/Buyer guarantees to pay maintenance fees for a minimum of twelve (12) months. Any payment made toward the first
month's maintenance fees will be applied toward the minimum twelve-month maintenance fee guarantee. This membership does not
expire after the twelve-month term. This membership automatically renews for further successive terms of one (1) month after the initial
twelve (12) month term.
The Member may cancel this Agreement at any time in accordance with the Consumer Protection Act, 2002
and Section 5 hereof however, if the membership is not cancelled after the initial twelve (12) month term in accordance with Section 5
hereof, the Club will continue to debit the Member on a month to month basis for the maintenance fee.
The Club is authorized to revise
the monthly maintenance fee by giving "The member" at least 30 days’ notice in writing that such change(s) are going to occur.
Cancellations are not valid and binding upon the Club only if they are in writing and delivered to management. Anything other than the
written contents of this Agreement is not binding upon the Club.

5. STATUTORY RIGHTS OF MEMBER. Member may rescind this Agreement in accordance with the provisions of the Consumer Protection
Act, 2002, as set forth on the first page of this Agreement. The Member may rescind the Agreement at any time after the initial term has been met set out in
Section E hereof upon thirty (30) days’ notice by hand delivering written notice to the Manager/Operator of WGS at the address set out above at which time the
Member will receive a signed and dated cancellation receipt.
"
OK - Going to try to work with the manager in that case, if not cooperative then I will file claim via equifax as another user stated. I never received sh*t in writing as a 30 day notice.
[OP]
Newbie
Nov 21, 2018
32 posts
3 upvotes
Jucius Maximus wrote:
Nov 24th, 2018 5:21 pm
They probably make more money selling off their sneaky contract to debt collectors than they do in actually pursuing you themselves.

I speculate that this is actually a planned part of their business model, and as such, I think we need a law to govern gym / fitness centre contracts.
IKR. There needs to be a law for this shit everyone I know gets screwed by gyms..
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Nexus313 wrote:
Nov 24th, 2018 6:32 pm
IKR. There needs to be a law for this shit everyone I know gets screwed by gyms..
There is a law and assuming you are in Ontario you can find it here, under Personal Development Services, other provinces probably have similar legislation:

https://www.ontario.ca/laws/statute/02c30#BK39
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Feb 17, 2017
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Calgary
Honestly, allowing companies to report collections is pretty BS in general. Random companies shouldn't be able to do it unless they have a court judgement.
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Nexus313 wrote:
Nov 24th, 2018 6:31 pm
OK - Going to try to work with the manager in that case, if not cooperative then I will file claim via equifax as another user stated.
Equifax won't be able to help you.
So as long as the gym can show proof that they have a legitimate claim against you ie: non canceled membership and a skip from non-payment the collections tradeline will continue to report
Nexus313 wrote:
Nov 24th, 2018 6:31 pm
I never received sh*t in writing as a 30 day notice.
People these days rarely notify any service/membership of change of address and now with all the paperless statements it's even worse. Even the MTO is aware of the tardiness that it attached fine years ago if you don't send them a notice of address change.
As for the gym, if they have documentation that they did send out a notice to the address you gave them then that's all they need.
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CanadianSpruce wrote:
Nov 24th, 2018 7:26 pm
Honestly, allowing companies to report collections is pretty BS in general. Random companies shouldn't be able to do it unless they have a court judgement.
There's a specific legal process involved for any creditors to file a collections claim. It's not some willy nilly procedure and yes it's very much involved like a judgment claim.
Nothing's random as any creditor that repeatedly files false made-up collection claims can and will lose their licenses to operate. That pretty well puts them out of business!
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