In 1999 I joined Fitness USA for what I thought was month-to-month terms over a period of 1 year. I was a college student at the time but knew that I would be moving within 5 months after signing up, so BEFORE signing, I inquired the cancellation policy and was told that if a member moved to a location where there was not a Fitness USA within 25 miles, the membership could be cancelled. I signed up.
After attended the gym for a period of 5 months, I picked up a cancellation form at the San Francisco location and filled it out according to the directions, which were to state the reason for cancellation and mail it to the address listed along with the membership card.
I was then contacted for more information as they needed proof that I had relocated, such as a Driver's License, which I photocopied and forwarded to them. It seems this was insufficient and they then requested a copy of a utility bill to prove I resided at my new residence.
Since I had moved back to my parent's house, I did not have any bills in my name, but I did forward them a copy of a credit card statement that I received at the new address. This was also not sufficient. I let it go. Up until this point, I was not even aware that the $1200 yearly membership had been financed.
Subsequently, I stopped paying the membership and was then tracked down by National Credit Corp. When I explained that I simply wanted to cancel my account, I was told that I had financed the membership and needed to bring my account current before any cancellation could occur.
The guy who called told me that the phone conversation was being recorded and that they would ruin my credit if I did not pay that day over the phone. He told me that within 24 hours this collection would be reported to the credit bureaus. I was young and naive and gave him my banking/routing information over the phone for the unpaid membership dues.
I was never contacted again but the collection agency charged off the account and reported it to my credit. It has existed as a negative account on my credit report for the last 5 years although it has not prevented me from building credit. I tried to dispute it with the credit agencies but was unsuccessful. I also reported it to the Better Business Bureau but nothing ever came of the complaint.
I recently refinanced my home and as part of the refinance, the escrow company cut me a check payable to National Credit Corp. For the remaining balance owed. After doing my research, I decided it would be best to pay the full balance and not negotiate downward, if in exchange the collection agency would remove the account entirely from my credit report.
I called today and was told that this was not possible. I tried to be persuasive and told the woman that she would probably like the commission she would receive from this paid debt. She said that it was an old account and she didn't care. I told her that they have the ability to change the status of an account and she told me that I was trying to buy credit. I told her that the debt would age-off my report within the next 2 years anyway and that it wasn't worth it to me to pay it off.
By the way - National Credit Corp. And Fitness USA are practically the same company with the same President, Vice President, Executive Assistant and principal, and the same business location. The Vice President is also a board member of the Eastern Michigan Better Business Bureau. Ironically, they have a positive rating and most complaints have been resolved. I wonder if most people just don't report their experiences.
A local station here in San Francisco has done 2 investigative pieces on Fitness USA - ironically, everything negative that I have read seems to involve the San Francisco location. I understand that I should have read the fine print, but I feel that I was duped by this unscrupulous company into financing a membership that I would have NEVER signed up for if this was disclosed to me. Also, I never received a follow-up disclosure letter that they say they send to members.
AP
Alameda, California
U.S.A.
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