Anonymous
Anonymous asked in Politics & GovernmentLaw & Ethics · 1 month ago

The gym I attended charged my card for September then immediately closed. I contacted my credit card and charged back the fees?

The gym declared bankruptcy and apparently tried to charge everyone for the month that they weren't going to be open. They were open only on the 1st then closed on the 2nd permanently with no other locations. My card refunded my money immediately, but now a collection agency is demanding I pay. They say that because they were open on the 1st, Im not entitled to a refund. They said it is standard business to charge one last time even if they are closing and that it would be cheaper to pay than to fight them anyway. Should i just not respond unless they sue me? I've already told them I dispute the bill because no services were rendered.

9 Answers

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  • 1 month ago

    Respond in writing. Send it by certified mail with proof of delivery and keep a copy for your records. In fact, you can mail a copy to yourself and when it arrives, put it away unopened for when and if you have to go to court.

    In the letter, you say this: "I owe nothing. An illegal charge was placed on my credit card by a business that knew it was closing its doors - which it did the very next day - and knew that it would not be providing the services being charged for. I have disputed the charge and my credit card company has sided with me and refunded the charge. You people can do whatever you want, but I am telling you now that any damage you do to my credit rating by falsely reporting a debt I do not owe will be responded to immediately and you will be held responsible for all actual damages to my good name and credit, and I will be seeking punitive damages to the extent the law will allow."

    I believe you will never hear another word from them. But just in case you do, get copies of anything you have from your credit card company/statements showing the original charge and the reversal. If they take you to court, go, and bring everything with you, including the proof of delivery of your letter to them (or the actual letter, if they refuse to accept it - you will get it back unopened and you leave it that way) and the copy you sent to yourself. The judge will hand them their heads.

  • 1 month ago

    Friend the collection agency can't do a darn thing to you they won't sue you nor will they attempt to sue you! And the way to totally kill this matter is to file for a refund in the bankruptcy court where the company declared bankruptcy send it by certified mail to the gym and a copy to the clerk of the court also by certified mail this will cost you $10. This will make you part of the ongoing bankruptcy which won't be closed for at least 6 months. this makes it 100% impossible for a credit collection company to do Jack diddly-squat about it! Simply tell them that you have filed a claim in the bankruptcy and if they want a copy of the claim you'll be glad to mail it to him. They can't legally do anything as long as you file a claim in the bankruptcy proceeding!

    They won't do anything anyway but for $10 you can put a dead stop to their garbage

    • Nuff Sed
      Lv 7
      4 weeks agoReport

      Filing a fraudulent claim in federal bankruptcy court would be a felony. Great advice.

  • Bruce
    Lv 7
    1 month ago

    I don't know of any court I'm familiar with that would agree with them.

    Seems to me just the opposite is true, it would cost them more to file than they will get for your one month payment. My guess is they are hoping most will just pay.

  • Biff
    Lv 6
    1 month ago

    Charging the fee in the full knowledge they were going bankrupt and then opening for just one day in an attempt to justify keeping the fee sounds fraudulent but contact Consumer Protection as ibu guru has suggested. Is a company applying for bankruptcy even allowed to legally continue trading?

    The collection agency might be saying it would be cheaper for you to settle than contest the fee in court but unless they are certain they would win they probably wouldn't bother anyway.

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  • 1 month ago

    I would reply in writing, or email, to offer to pay them for the time they were open, which is one day or one thirtieth of the monthly fee. Keep all recrds, and if they take you to court, you can show the judge that you were willing to pay what is fair, which is for the day they were open. I am sure the judge would take your side if it goes that far, but I doubt if they would take you to court anyway because it would cost them more than it is worth, and they are banktupt anyway.

    • Nuff Sed
      Lv 7
      4 weeks agoReport

      Bankrupt doesn't necessarily mean they don't have any money.

  • Maxi
    Lv 7
    1 month ago

    If they declared and registered bankrupcy then no 'collection agency' would be collecting money for a business, everything is done viia the official reciever that is the person who is dealing with their debts....... the collection agency is committing fraud and needs reporting

  • 1 month ago

    OF course they say it would be cheaper. Tell them to go screw.

  • Bob
    Lv 7
    1 month ago

    take them to small claims court along with everyone else who was ripped off.

  • 1 month ago

    Write a letter detailing this to your state's Office of the Attorney General, Consumer Protection Division, requesting a fraud investigation. Copies to the collection agency (give details on the collection agency, their threats, etc, in your letter to the Attorney General), and to the gym (or receiver in bankruptcy). Act immediately!

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