Gold's Gym membership cancellation scam

Complaint Pertaining To

The following text is what I have submitted to the Oregon Attorney General's Office.

Gold's Gym, ABC Financial and CCB

Type of Sale: Retail

I canceled my membership with Gold's Gym in Keizer, Oregon, May 13, 2006, via a return-receipt-requested letter per the date on the U.S.Post Office receipt and as required by the terms of Gold's cancellation policy for my month-to-month membership. In my cancellation letter I requested a final bill in the mail.

After five phone calls and e-mail correspondence I finally received a final bill dated July 13, 2006. I paid the bill. Per the e-mail correspondence from ABC Financial, they received my check for $39.00 August 11, 2006, but refused to accept the check because it was now more than 90 days past due from the date of membership cancellation. They forwarded my check to CCB, a collections agency, which to date also has not cashed my payment.

It was entirely due to Gold's Gym and ABC Financial and their extremely delayed billing process that my payment was "late" and has been sent to a collections agency. The continued delay by CCB in cashing my payment no doubt will give them reason to charge a late fee. I feel that I was deliberately delayed and misled by Gold's and ABC and my credit is now damaged by a collections notice posted to it. The two people at ABC who deliberately misled me were Terra Evans ( Email User) and Ashley Hiatt ( Email User). This to me was a deliberately obstructive process designed to end up forcing me to pay late fees when any timeliness problem has entirely been due to the nonresponsiveness of ABC Financial.

I would like a response and guidance. What they did may be legal, but it's definitely unethical. The e-mail chain follows.

----- Original Message -----

From: Ashley Hiatt: Monday, August 14, 2006 6:40 AM

Subject: RE: 6611-94771 Ms. Snyder, Please review your emails again. The only information that I have given was to let you know that your account has now been returned for collections. At the time that Ms. Evan's gave you the information your account was not yet in collections. There is no due date on your cancellation letter because the letter was mailed in July. Your May payment was already past due as you were informed on June 12th by a representative from our company and on July 5th by another representative. I do apologize that your account has been sent to collections. ABC Financial is no longer handling your account. Ashley Hiatt Lead Administrative Clerk ABC Financial Services, Inc.

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From: Ann and Phil: Friday, August 11, 2006 11:01 PM To: Ashley Hiatt Cc: Terra Evans Subject: Re: 6611-94771

Subject: Ashley and Terra: The bill I received from abcfinancial: 1) was dated July 21, 2) did not contain a due date, and 3) stated there would be no cancellation fee. The lack of a due date can be verified by the copy of the bill I enclosed with payment. The immediacy of the payment can be verified by the postmark on the envelope. So to confirm, you are now holding me to a bill date that you did not provide? I just want to be sure this is what you are doing before I file my official complaint with the Oregon Attorney General's Office. Ann Snyder

----- Original Message -----

From: Ashley Hiatt: Friday, August 11, 2006 12:04 PM Subject: RE: 6611-94771

Ms. Snyder, Your check was received and sent to the collection agency. We could not accept it because it would not have brought your account within 30 days past due. You will need to contact C C B @ 800-493-5506. I apologize for the inconvenience. Thank You Ashley Hiatt Lead Administrative Clerk ABC Financial Services, Inc. -

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From: Ann and Phil: Wednesday, August 09, 2006 8:32 PM To: Ashley Hiatt Subject: 6611-94771

Ashley, I mailed a check for $39 to ABC July 27. I sent the check to the address on the form, which was P.O. Box 6800, Sherwood, AR 72124-6800. It was check #3605, which a call a few minutes ago to my bank confirms has not yet been cashed. Since I placed the check in the mail at the same time as four others, three of which have cleared my bank, there appears to have been no problem with postal delivery. Assuming reasonable mail delivery, it should have arrived at your post office box no later than August 2 or 3. Is there typically a receipt and/or processing delay once payment arrives at the post office box? Ann

----- Original Message -----

From: Ashley Hiatt: Wednesday, August 09, 2006 11:54 AM Subject: FW: 6611-94771

Ms. Snyder, I apologize for the delay in my response. As of today ABC has not received your payment and as of 07/27/06 your account has been returned for further collections. Please contact C C B at 800.493.5506. I do apologize for any inconvenience. Thank You Ashley Hiatt Lead Administrative Clerk ABC Financial Services, Inc.

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From: Ann and Phil: Friday, July 28, 2006 3:47 PM To: Terra Evans Subject: Re: 6611-94771

Terra, Just wanted to let you know that the final Gold's bill arrived yesterday (Thursday, July 27), and I mailed the $39 payment this morning. Thank you very much for your help with this matter. Ann

----- Original Message -----

From: Terra Evans: Wednesday, July 26, 2006 6:37 AM Subject: 6611-94771

Ann, I am showing that the bill was sent on 7-24-06. You should receive the bill within 3 to 5 business days. If you do not receive the bill by 8-01-06 please let me know. Terra Evans Lead Administrative Clerk ABC Financial Services

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From: Ann and Phil: Tuesday, July 25, 2006 9:15 PM To: Terra Evans Subject: 6611-94771

Terra, I just received another call from ABC, and still haven't received a bill in the mail. I'd appreciate it if you could expedite this. Thank you. Ann

----- Original Message -----

From: Terra Evans : Friday, July 21, 2006 10:02 AM Subject: RE: 6611-94771 Ann, You're more than welcome. Have a good weekend. Terra Evans Lead Administrative Clerk ABC Financial Services

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From: Ann and Phil: Friday, July 21, 2006 11:37 AM To: Terra Evans Subject: Re: 6611-94771

Terra, Thank you very much for your prompt and positive response. I received no e-mail, but that doesn't mean it wasn't sent; likely it wasn't recognized by our computer's firewall and never made it through to the in-box. I look forward to receiving the bill in the mail and concluding this matter. Again, thank you. Ann

----- Original Message -----

From: Terra Evans: Friday, July 21, 2006 9:25 AM Subject: RE: 6611-94771

Ann, I sincerely apologize if you have not received the final bill. I do show the letter was issued to you via email on 6-16-06. At this time the remaining balance is $39.00. I will have the final bill mailed to the address on file. I have waived the late fees on your account as well. If there is anything else I can assist you with let me know. If you would like to submit the payment before you receive your bill, I have put our mailing address below. If there is anything else I can assist you with let me know. Have a good weekend. Any information sent to ABC Financial Services, Inc. must include your 9 digit membership agreement number. ABC Financial Services, Inc. PO Box 6800 Sherwood, AR 72124 Terra Evans Lead Administrative Clerk ABC Financial Services

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From: Ann and Phil: Wednesday, July 19, 2006 6:57 PM To: Member Email Inbox

Re: Cancellation of Gold's Gym membership at the Keizer facility Account # 6611-94771

To Whom it May Concern: I purchased a month-by-month membership at the Gold's Gym facility in Keizer, Oregon, late in 2005. As part of my membership I authorized automatic payment of my dues each month through my Bank of America debit card. I canceled that membership in May 2006, per the instructions provided by Gold's, which required me to send a letter by certified mail with a return receipt requested. A copy of that letter is below. The return receipt I received from the U.S. Postal Service is dated May 13, 2006. As you will note in the text of the letter, I stated that no more payments would be authorized through automatic withdrawal from my account, and that I would expect to receive a final bill. My intent was, and remains, to receive a final billing statement by mail, and to then pay the final bill by check. Per my membership agreement with Gold's, the amount of the final bill will be the equivalent of no more than one or two months worth of dues. To ensure no more automatic electronic withdrawals would be made by Gold's, Bank of America changed my debit card number. After cancellation of my membership I received three calls from the bank that handles dues payments to Gold's. Each time I explained I would be happy to pay my final bill when I received it in the mail. I never received any bill. Then, my account was handed to ABC Financial, which now has called me twice. Again, I explained both times that I would be happy to pay my final bill by check, as soon as I received the final bill in the mail. I received no final billing statement after the first call. After the second call I received a form dated July 13, 2006, to authorize you to electronically withdraw money from my account. I don't know how much clearer to make it to you that you do not have and will not have any authorization from me to make any kind of automatic electronic withdrawal from any account in my name, either a bank account or credit card. I continue to request that you send me a final bill so that I can have the paperwork for my records. As soon as I receive the bill, assuming it is correct, I will happily send you payment in full by check. As a collections agency, which I assume is your role, you must have the ability to receive a payment by check. By CC, I am sending copies of this e-mail to the Oregon Attorney General's Office, Oregon Department of Consumer and Business Affairs, and a columnist at The Oregonian, the state's largest newspaper. I trust that, if for no other reason than to avoid looking foolish, you will mail me a correct final billing statement confirming my membership cancellation, which I will then pay. Your speedy cooperation in resolving this matter is requested.

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May 12, 2006

Gold’s Gym General Manager

3850 River Road N Keizer, OR 97303

1-503-390-4653

Attention, General Manager:

This letter serves as official notice that I am canceling my membership in Gold’s Gym effective upon the date you certify receipt of this letter. Notification of your receipt of this letter will be confirmed by the U.S. Post Office, per your stated policies. A review of my membership will confirm I hold a month-by-month membership and I may cancel my membership at will. This letter formally notifies you I am ending my membership with Gold’s Gym effective upon the date you certify receipt of this letter. Further, this letter formally notifies you that I no longer authorize you to deduct membership dues or any other fees or monies from my checking account effective upon the date you certify receipt of this letter. You do NOT have authorization to access my checking account in any manner whatsoever as of the date you certify receipt of this letter. Any access of my checking account after the date you have certified receipt of this letter will be viewed as a fraudulent action. The final bill for remaining dues may be mailed to me at (name deleted from this posting). Notice from you confirming cancellation of my membership and cancellation of withdrawals from my checking account is expected with the final bill.

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Comment On This

I renewed my membership with Gold's Gym i9n Toccoa, GA, which I had been a member of since 2000, in 2006 to carry me thru to July 18, 2009. In October 2006, I had health issues esculate. I asked to have my membership froze they wouldn't do it without a letter from the doctor. I had frozen it numerous times for surgeries and never needed a letter before. So I tried to continue going to the gym until Jan. 2007 at which time I asked for a refund as I could no longer continue. They once again asked for a letter from the doctor, which I brought. They refused the letter saying it didn't have all the info in it that they needed, because it didn't have their name in the letter, so I got another one. They claimed this letter also didn't have enough info in it even though it had all they told me needed to be in it. They excuse this time was that it didn't say disabled it just said I couldn't use the equipment any longer and that they saw no time in the immediate future that I would be able to. They said the best they would do is freeze my account. I told them that at this point there was no returning and freezing it wouldn't do any good because it would be froze forever.

I asked the doctor for another letter and he gave it to me but told me to tell them that he wasn't playing their game he didn't have time for it. They also refused this letter because it didn't state that I couldn't use any equipment in the gym even tho it stated that I was permanently disabled and couldn't return to the gym. Of course my doctor refused to write another letter and I tried to get them to take all the letters and combine them. They refused. I had to get another one of my doctors to write another letter. This time they accepted it and said that I would get a refund the next week.

It is now July 2008 and I still do not have a refund. I called and was told they had to check on it and get back to me. They never called back. I have called several more times and the lady that cuts the checks, Arlene is either on the phone or in a meeting and never returns my calls. At this point I am thinking about contacting a lawyer or filing a suit in small claims.

Comment On This

We are currently investigating Gold's Gym for possible class action liability with regards to its alleged fraudulent billing practices. If you are interested in participating in this litigation or otherwise sharing your experience with us, please contact shane(AT)legalsupportstaff.com