Legal Question in Credit and Debt Law in California

Can A Health Club Send Me To Collections

I entered into a one year term contract with a health club in California. I was only able to use the gym for three months. A transfer at work forced a move over two hundred miles away. I have paid for seven months of this contract so far. I pay by automatic electronic funds transfer on my credit card. The gym wants a $150.00 fee for cancellation. Can I avoid the cancellation fee and simply cancel the credit card to avoid the final five payments without the fear of harming my credit rating? I had worked at a gym several years ago and at that time, gyms were unable to place default contracts into formal collections.


Asked on 12/02/04, 1:37 am

1 Answer from Attorneys
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Can A Health Club Send Me To Collections

This does sound eligible to be placed in collection, so you're probably better off paying the $150 cancellation fee. As a practical matter, they may not pursue you very diligently if the amount is small, or not worth a lawsuit, but it would still likely be a legitimate debt you owe (if you do not follow the cancellation terms/cancellation payment).

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Answered on 12/02/04, 2:03 am


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