Is Goodlife fitness shafting members?

[scuro2]

My 17 year old daughter joined GF for a year and set up automatic bi-weekly withdrawals. She had insufficient funds and as a teenager she did what teenagers do best and that is to ignore the problem. GF attempted to withdraw the funds 2 twice and than canceled her account.

 

So much is acceptable.

 

The part that galls is that Goodlife, if I understand this correctly, have outsourced this operation to the Canadian Payment Association who made two separate attempts to withdraw $25 dollars for their services...and with both attempts further NSF charges came from her bank.

 

So for the two missed payments

$80 dollars in NFS charges from her bank (2 x 40)

$80 dollars in NFS charges for the two attempts by the agency to collect their fee for being involved (2 x 40)

plus $50 dollars in charges from CPA

 

As the GL phone representative explained it to me ( you can't meet anyone in person about accounts) the bank charges are appalling. When I questioned her about the CPA...she said well that is totally out of GF's hands. She explained that they instituted this system because customers complained that previously they didn't understand where the extra charges where coming from. As I research further the CPA is a nonprofit government agency to help settle collections. From my vantage point they are compounding a problem. Shouldn't collection fees come at the end of process and shouldn't one have the right to pay it instead of having them automatically attempt to pull it from your account? Also, if the original sum was NSF a simpleton could assume that the attempt to collect fees will also be NSF. Our bank is good to us so we can probably get some of the NSF fees back...but this seems grossly unfair and a scam. Perhaps I have misunderstood all this and someone has an answer?

Edited August 24, 2010 by scuro2

[Harrison]

Go talk to the Manager at the location. They fixed my wife and I up when we changed bank accts and forgot to switch the kids GF daycare fee to the new acct. They can address this in person. .

[bigfish1965]

I do not see how a collection agency has any right to access the account. I would be screaming at my bank asking them why they allowed a third party access without any agreement.

[scuro2]

Go talk to the Manager at the location. They fixed my wife and I up when we changed bank accts and forgot to switch the kids GF daycare fee to the new acct. They can address this in person. .

We did and the manager said the only way to settle this is to phone their 1-800 account #. He said they used to handle things locally but no longer. As it was explained to me, you can't actually sit down with someone who has the authority to intervene on your behalf.

[lookinforwalleye]

I have been through this more than once with my boys when they were younger and what I think is appalling is that these companies are allowed to sign up kids to contracts and sell services that they do not have the means to pay for.

And in the end it is usually the parents that end up getting the leters and the phone calls and paying money while the dumb kids are out sign another stupid contract they can`t afford!!!

[bare foot wader]

this is where the fine print of your contract comes into play...once your account becomes delinquent and they sell your outstanding balance to a third party they are in fact authorized to collect payment from you...perhaps not in so many, clear cut words but it's in the fine print....say you owe GLFC $100, they sell it to a collection agency for say 10-15%....said collection agency will then try to maximize recovery of the debt, usually you can settle for much lower than your original balance but still adversely affects your rating

 

We did and the manager said the only way to settle this is to phone their 1-800 account #. He said they used to handle things locally but no longer. As it was explained to me, you can't actually sit down with someone who has the authority to intervene on your behalf.

 

check your pm's....

[bigfish1965]

No contract signed by anyone under the age of 18 is valid unless it is for things like rent or food. Otherwise a parents signature is required.

[scuro2]

All I would hope to expect from GLF is for them to do the right thing. I have no problem paying the missed payments and the entire year membership. Just give us a call when the payment problem arises. If a client takes the time to come to your office and settle things then at least give them the opportunity to talk face to face with someone who can actually do something. Don't hide behind telephone ping-pong and don't play the pass the buck game.

 

Finally, if your collection agency is creating further NFS charges for your clients, then rethink your business with this agency...after all this is a people business.

[jediangler]

The wife works for Goodlife as a Club Admin, when she gets home, I'll quiz her on it and get back to y'all.

[Roy]

This probably changes a few things:

 

The Canadian Payments Association (CPA) is a not-for profit association created in 1980 by an act of parliament, the Canadian Payments Act, to "establish and operate national systems for the clearing and settlement of payments and other arrangements for the making or exchange of payments" within Canada. The CPA is the regulatory body for the settlement and clearing of payments in Canada. The Minister of Finance is responsible for overseeing the operations of the CPA.

 

The Association facilitates the flow of funds between institutions and mitigates risk to participants in the payment system. They handle several transaction types including cheques, bills payments, and point-of-sale debits.

 

All banks operating in Canada as well as the Bank of Canada are required under the Act to be members of the payment system. Other financial institutions such as credit unions, trust companies, life insurance companies, and securities dealers are eligible for membership.

 

The CPA is very active: on average, some 20.6 million payment items, representing $164 billion in transactions, were cleared and settled through the CPA’s systems each business day during 2005.

[bigreddog]

+1 for what Rick said. I'd question the legality of the contract since your daughter hasn't reached the age of majority.

 

And yes, GF is in the business of ripping people off.

[scuro2]

Yup, don't know much about the CPA and what role they are playing in this. When we met the local manager he gave us a statement which states,"that Head Office Collections is currently handling this account". This would make it sound like GLF is handling it. The manager then told us we must phone 1-800-387-2524 if we had an issue with the bill. Is this a GLF 1-800 #? When we phoned the lady stated that is GLF's policy to only make two attempts at withdrawal so as not to swamp their clients with NSF charges. If so where did the extra two NSF charges come from? The lady at the 1-800# said that these charges were independent of the company and on the bill after each NSF, there is a charge for, "external collection". Are the 3rd and 4th attempts at collecting money from my daughter's negative balanced account the actions of a private collection agency, GLF, or the CPA? All very confusing...and any way you slice it...it stinks!

Edited August 25, 2010 by scuro2

[jediangler]

Wifey says that, as a 17yr old, she couldn't have joined without a parent/guardian co-signing. After attempting to withdraw and getting NSF she would have incured a $25 charge from Goodlife as well as whatever charge your banking institution charges for the NSF. After a second attempt that results in another NSF, Goodlife will not charge again and will not send the account to CPA until 75 days after the first NSF. This gives time for the member to catch up on payments directly at the Gym. After the CPA takes over, only the manager can reverse this process and that is unlikely unless she shows up at the Gym with enough cash to cover her debt. This will not, however, have any affect on what she now owes to CPA or your bank. Sounds to me like you're between a rock and a hard place.

Edited August 25, 2010 by jediangler

[Guest Johnny Bass]

The worst is when they force you to sign up for a contract and even though you dont use their services, you are required to still pay for the year. And make sure you cancel your membership in writing(over the phone is not good enough for them) and make sure they get it or they will charge you for another year....

 

After all the money the banks make lending out our money, they still have the audacity to charge us for services.

[cram]

The worst is when they force you to sign up for a contract and even though you dont use their services, you are required to still pay for the year.

 

In some communist states you have to pay for everyone else's gym membership as well, whether they use it or not. :-)

[bassman87]

as much as i dont like goodlife fitness, they dont force you to sign anything. they let you know of the 1 year agreement before you sign. if youre too eager and excited to become arnold shchwarzengger (sp?) and overlook the terms of service thats your fault

[Guest Johnny Bass]

In some communist states you have to pay for everyone else's gym membership as well, whether they use it or not. :-)

 

Give it up cram. When I open up my political site, your more than welcome to talk about economic systems and I will really school you on the truth. Not the indoctrinated lies you have been fooled to believe since your birth.

[Guest Johnny Bass]

as much as i dont like goodlife fitness, they dont force you to sign anything. they let you know of the 1 year agreement before you sign. if youre too eager and excited to become arnold shchwarzengger (sp?) and overlook the terms of service thats your fault

 

Well I believe it is silly that they wont let you pay monthly and some places force you to get a yearly membership.

 

My daughter brought me to a fitness club in Dufferin mall she wanted to join. Not only do you have to pay yearly, they now have a Membership fee of $200!!! That's not even including the monthly rate.My daughter looked at them like they were crazy and walked out. THANK GOD, I didn't have to pay.

[jediangler]

Because my wife works there I get a free membership. I told her to give it to her brother. The place is a pick-up joint masquarading as a gym anyway.

[scuro2]

Wifey says that, as a 17yr old, she couldn't have joined without a parent/guardian co-signing. After attempting to withdraw and getting NSF she would have incured a $25 charge from Goodlife as well as whatever charge your banking institution charges for the NSF. After a second attempt that results in another NSF, Goodlife will not charge again and will not send the account to CPA until 75 days after the first NSF. This gives time for the member to catch up on payments directly at the Gym. After the CPA takes over, only the manager can reverse this process and that is unlikely unless she shows up at the Gym with enough cash to cover her debt. This will not, however, have any affect on what she now owes to CPA or your bank. Sounds to me like you're between a rock and a hard place.

What you say makes sense but you haven't explained where the #3 and #4 NSF charges came from. My daughter doesn't write checks and the only other purpose of her account was for caf food and other small items...so those charges are related to GLF. On her bank statement they are about 4 weeks from the first NSF, on the GLF statement and they both are charged on the same date. Why couldn't they have combined the fees and saved her one NSF? Better yet how about a mailed bill from this outside agency for their services? The lady from the 1-800 # said those attempts were not from GLF and I should go the CPA website to learn more?!?? Did that.

 

Did CPA charge her account directly for their involvement, did this come from head office ( their statement from today states, "head office collection is currently handling this member")... or was a private collection agency responsible for the 3rd and 4th attempt at withdrawing her funds from her account? GLF policy states they will only attempt to withdraw funds twice. Can your wife explain what happened? Regardless, why would GLF give their blessing to a system that shafts it's members with 4 NSF charges in less than a month? This is a teenager after all.

 

Finally, my wife said that she didn't sign any papers, I certainly didn't! She was the one who used to go with her. You are suggesting that my wife signed? The proof is in the pudding. Can I ask to see the contract at the gym?

Edited August 25, 2010 by scuro2

[jediangler]

Ask to see the contract, it should not have been approved if there was no co-sign by parent/guardian. Wifey says that they only charge NSF once. Those other charges are not from Goodlife. Probably from your bank or CPA. Did she book any time with a personal trainer or tanning time that could also have incured a NSF?

[scuro2]

Ask to see the contract, it should not have been approved if there was no co-sign by parent/guardian. Wifey says that they only charge NSF once. Those other charges are not from Goodlife. Probably from your bank or CPA. Did she book any time with a personal trainer or tanning time that could also have incured a NSF?

There were 4 NSF charges. GLF tried to pull the money twice in the normal two week interval. Then whomever tried twice more. She has a "teenager" account at her bank so the extra NSF charges ain't from her bank. There is so little activity in there anyways. There is no tanning in this facility and she didn't use a personal trainer. She would go in with mom a few times a month.

 

Can your wife explain what the CPA actually does, if glf uses a private collection agencies, and if they do, how do they work the CPA? My assumption is that the CPA as a "helper" wouldn't be involved in the first stages of the game, nor would they be attempting to pull money directly out of my daughter's account. I am assuming that the CPA is more an arms length government body.

[jediangler]

Goodlife tries twice but only charges NSF one time. It's not likely they would try again so 3 of those NSF charges were coming from somewhere other than Goodlife. Why would a teenager account give her freedom to issue NSF cheques? Won't the bank tell you the identity of the other attempted withdrawls?

[scuro2]

Your wife has no info on the CPA or the possibility of an outside collection agency with regards to outstanding GLF accounts? I would like to understand what exactly happened.

 

In talking to the two manager and the 1-800 lady, and after viewing the GLF bill, the first two NSF charges came through GLF's attempt to withdraw funds. The dates match up perfectly. To me that is acceptable.

 

But also on the GLF statement there are two charges of $25 dollars for "service charge external collection". These charges are on the same date as the nsf notice. Since I don't understand who is seeking this money nor the necessity of these charges, I find them unacceptable as do I find the 3rd and 4th attempts to withdraw cash from her account. She has no checks so it really looks like the final nsf are related to her GLF account.

 

I will go back to GLF today to look at the contract and I will go to the bank to gather info and see what can be done.

Edited August 25, 2010 by scuro2

[bassman87]

make your daughter find a job at a local grocery store and pay it off