Gym contracts
It seems the gym industry is efficient at signing up new members, but far less vigilant in explaining the price, contract and cancellation terms. We sent two ’shadow shoppers’ out separately to visit nine Sydney gyms. The findings: beware high pressure sales tactics and creative pricing. And don’t expect too much by way of information on how to cancel your membership.
The CHOICE report, Unfair gym contracts, offers some advice on your consumer rights when you embark on your gym journey, including a cancellation form letter that should make breaking up with your gym a little bit easier.
What to watch out for:
- Don’t succumb to high-pressure sales tactics.
Take time to shop around and carefully consider the memberships on offer at each gym. - Rights and responsibilities.
Read your contract carefully and be fully aware of your rights and responsibilities. Don’t be afraid to question anything in the contract that you don’t like and/or understand. - Check the cancellation terms of the contract.
Can you get out of it if you move house, get sick, lose your job or simply decide to give up? Don’t assume the contract finishes at the end of 12 months. Check your contract to see how to cancel your membership (and direct debit) if you no longer want to attend. - Don’t assume your direct debit will be cancelled when you cancel your gym membership.
If you have any doubts, contact your bank directly and request an immediate cancellation of the direct debit. Although, if you have any outstanding debt you will need to arrange to pay this by cash or cheque.
If you have a gym membership story to tell, we’re keen to hear it. You can leave a comment here or in the Your Say section of the report.
I am trying to stop direct debits for my son who is travelling OS. HIs initial 3 month contract period ended just prior to leaving Aust (which is why he only took it out for that period) but another 7 fortnightly debits have occurred totalling nearly $300. interestingly, despite your website advice re rights under the Code of Banking Practice re cancelling direct debit arrangements, his bank say they cannot do this – they can only put the debits on ‘hold’ for a limited period! So it would appear that unless one goes in person to the gym and physically destroys the banking information they have on file (electronic & hard copy) you cannot stop their access to your account?! This seems a nonsense in extremis. What happens if someone accesses your direct debit details fraudulently? Do you have to close your account? It would appear so. Thanks to the NAB for supporting us as customers (not). Also thanks to Genesis Prahran for not returning the two phone calls, not sending contract copies as requested, and continuing to take money for a service they have not delivered.