I need some advice. Here’s the situation: a couple of weeks ago, I attended a free intro class at a gym. They required me to put a credit card on file before the class, which seemed normal based on my past experience. After the class, a sales associate texted me about joining. I said I was interested, and they texted me the cost and asked if they could email me a contract to sign electronically. I responded “okay” to that text, but I never signed the contract or responded after they sent it.
Fast forward, I see a $250 charge on my credit card ($175 for membership and $75 joining fee). When I called to dispute it, the owner claimed that my texts agreeing to be sent the contract constituted a legally binding agreement. He also refused to cancel the membership without me agreeing to their 30-day cancellation policy, which requires another payment. I didn’t sign anything, so I refused.
I disputed the charges with my credit card, and they reversed them. Now the gym owner is emailing me, saying he’ll send my account to collections. I have good credit and am worried this could hurt me. I’ve already filed complaints with the attorney general and the BBB. Do I need to go to small claims court to resolve this? Is hiring a lawyer worth it for something like this?
Tell the owner to provide proof of the debt. If they send you to collections without valid proof, the collection agency can’t enforce it, and you can dispute it with the credit bureaus to have it removed.
@Corwin
Since the owner is threatening collections based on what seems to be false claims, they could potentially be held liable for submitting fraudulent information to the credit bureau.
Donna said: @Corwin
Since the owner is threatening collections based on what seems to be false claims, they could potentially be held liable for submitting fraudulent information to the credit bureau.
OP should make it clear that if this goes to collections, they will pursue legal action for damages. The texts don’t appear to be a clear acceptance of a contract.
@Faithjones
Agreed. The text where OP says ‘okay’ was clearly in response to receiving the contract, not agreeing to its terms. That ambiguity will likely work in OP’s favor.
Ignore their threats for now. If they actually send you to collections, send a debt validation letter. They won’t be able to provide proof, and the debt will be dismissed. It sounds like this gym owner is banking on intimidation to scare you into paying.
You’ve already won your chargeback, so don’t worry. If the gym sends you to collections, update the attorney general’s office, and dispute the claim with the collection agency. They’ll need to provide proof of the debt, which they won’t have.
Close the credit card they charged and get a new one issued to stop them from attempting future charges. If they send this to collections, you can dispute it, and they’ll fail to provide proof since you never signed anything.
Verbal contracts can sometimes be enforceable, but in your case, it seems like Missouri law requires health club contracts to be in writing, which works in your favor.
Tyson said:
Verbal contracts can sometimes be enforceable, but in your case, it seems like Missouri law requires health club contracts to be in writing, which works in your favor.
Yes, Missouri law does require written contracts for health clubs, and it includes specific terms they didn’t meet. I’m hopeful this will work in my favor.
You can’t preemptively agree to terms in a contract you haven’t seen. If the text simply said ‘okay, send me the contract,’ that’s not binding. A judge would likely side with you in small claims court.