Total Fitness agrees to get membership terms in shape

09/09/2009

Gym chain Total Fitness has agreed to review its customer agreements to provide more straightforward information about when someone can cancel their membership after an intervention by the Office of Fair Trading (OFT).

Under a deal with the consumer and competition watchdog, Total Fitness must also make it clearer that the company does not have "absolute discretion" to change the opening times of its gyms or to change, reduce or remove facilities without providing any rights for consumers.

The changes will apply to all new membership agreements.

In addition, Total Fitness, which runs 24 gyms in England, Wales and Ireland, has said it will not enforce any of the terms flagged up by the OFT in existing customers' agreements.

OFT director of consumer protection Mike Haley said that like any consumer contract, gym memberships must be "balanced, fair and understandable".

"We have worked closely with Total Fitness to secure these changes and we believe that consumers will find the new membership agreements much clearer and fairer," he added.

EuroDebt director Kevin Still said: "Gym memberships are always a difficult subject when reviewing someone's income and expenditure when they fall into financial difficulty or enter a debt solution like a Debt Management Plan or IVA.

"Many creditors see these types of memberships as non-essential expenditure, but terminating the agreements can be very difficult and may result in further debt collection activity being pursued by the fitness centre’s administration unit or appointed agents.

"Many members are incentivised to take out monthly payment schemes rather paying for their membership upfront - this obviously makes renewals a lot easier for these companies."

Tags; Income Worries and Debt, Young Family Finances, Credit Card Lifestyle,

• Share
• 
• 
• Store
• 
• Follow
•