General Forum

I appreciate any advice. I recently began working with a client who had a change in circumstances and can no longer afford a gym membership. Initially, my client had a well-paying job and lived local to the gym's location. However, the client had lost her employment, and although she has secured other employment, her take-home pay is less than half her previous employment. Due to the reduction in income, the client relocated to affordable housing on the other side of Wellington (Upper Hutt). In my limited knowledge, it would seem that the CCCFA does not apply. Therefore, we cannot utilise a hardship provision; however, the terms of trade seem unfair given there is no means for enacting any hardship due to her change in circumstances from a loss of income when she undertook the contract and a move as a result. The client has contacted the gym to explain her predicament. Her plan is around $150 weekly. The gym offered to change her membership to a cheaper plan at $79 per week, which is still unmanageable, and as she now lives on the other side of Wellington from the location of the gym, she cannot attend. The only other choice was to find someone who could take over her plan. The membership is on hold. However, this will not resolve the matter as the contract stipulates that any 'hold' would extend the number of weeks for the membership. Unfortunately, I cannot figure out how to attach the contract to this discussion, but if anyone has experience with this form of contract, please make contact, and I will send it via email.

Morena Natasha, Hope you had a wonderful weekend. Please refer this case onto the Banking Ombudsman and there is an article on their website regarding direct debits.  Please click on the link below to read more about this. ttps://bankomb.org.nz/guides-and-cases/quick-guides/payment-systems/direct-debits/ Unfortunately the discussion board does not have the capability to add attachments. Hope this is helpful Ngā mihi Bella

Hi Natasha,   This seems to be a common problem, and yes, you're right, gyms arent in the CCCFA, but I would def by looking at the Fair Trading Act. Have a look at this link from Consumer, which gives some guidelines.  I would also think, that if client lost job due to covid (maybe) then there should be extra provisions given?   Charlotte

Forgot the link!  :)   https://www.consumer.org.nz/articles/cancelling-a-gym-contract

Here are a couple of articles on the topic with quotes from Charlotte and Jake. https://www.consumer.org.nz/articles/banks-not-cancelling-direct-debits https://www.stuff.co.nz/business/money/300643949/dozens-complain-about-battle-to-end-direct-debits-ombudsman-says