Legal Question in Credit and Debt Law in New Jersey

Thought account was cancelled, was not and now owe money.

I joined a gym in October 2001. I signed a contract for 1 year, but did not realize that it renews every year automatically. After the year was over,(2002) The monthly charge was still being deducted from my account. I called the gym and told an employee that I would like to cancel. The employee said, no problem and took my information, that was it. I was still having the fee deducted from my account though. As per the employee, I assumed my account with them was cancelled so I contacted my bank to stop payments. Now, over a year later, I was contacted by their credit department saying that I owe close to $800. They claim that in the contract it says I have to write a letter in order to cancel therefor my account has been open this whole time, but like I said, the employee told me it was no problem and never said anything about a letter. Even though it says that in the contract, is there anything I can do to avoid paying the balance of an account I had no idea was still open?

Thank you for your help!


Asked on 3/03/04, 8:29 am

1 Answer from Attorneys

Re: Thought account was cancelled, was not and now owe money.

Were you given a copy of your contract with the gym? LOOK AT THE CONTRACT! What does it say?

IF you didn't get a copy of your contract, you have a right to your money back, at least from the first year on, and treble (3x) damages, under the NJ Consumer Fraud Act. You can file in Small Claims yourself, as it's not financially justified to get an atty to help you. You can get the forms & instructions online at: http://www.judiciary.state.nj.us/forms.htm. Under $3,000 = Small Claims, upto $15,000 = Special Civil Part.

The Consumer Fraud Act can be found online at: http://www.state.nj.us/lps/ca/ocp/ocplaw.htm#cf1.

This Act DOES apply to gyms/health clubs. They MUST give you a copy of your contract, they MUST post their license, etc. Call Dept. of Community Affairs if you need help (goto: http://www.state.nj.us/lps/ca/ocp.htm for numbers).

Good luck.

Kevin J. Begley

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Answered on 3/03/04, 1:53 pm


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