I have signed up gym membership on contract for 3 years with Gym A. It is sold and now is owned by different person and is called Gym B. I was charged every month from Gym A billing company. I was allowed to use Gym B for over 6 months and they called me recently and cancelled my gym membership since he is not getting paid for my services from Gym A.

Since gym A does not exist anymore I called gym A billing company and requested to stop payments. But they are not willing to do so until I get written cancellation notice. I requested them to talk to Gym but they said that they cannot talk to them. It is my responsibility to get cancellation proof.

Gym B owner is not giving me written notice. I already met him 3 times and called once.

I am getting charged everything month and am not able to use gym. What are my options? Can I go to small claims? Small claims will be against gym B or billing company. Gym A does not exists anymore.

Yes, you are between a rock and a hard place with these gym memberships, and recently in Ontario they have stopped these organizations from billing and taking money off signed contracts, at the same time, taking a preauthorized membership fee from someone's checking account.

I suggest you write a letter to both and tell them you are cancelling your membership and if they are taking money from your bank account, cancel that so they may not take any more monthly payments. The bank will honour your request because it is your account. You may have to pay a small fee to do this but in the long you will save a lot money.

This gym, A or B is operating illegally and have no firm corporation rules to stand behind them.

Take the initiative and get this done.

Tick

Tick

Thanks. I have signed the contract and agreed to pay every month. I pay by credit card. If I stop payments, won't they report to collection agency and affect my credit history.

... I have signed the contract and agreed to pay every month. I pay by credit card. If I stop payments, won't they report to collection agency and affect my credit history.

You are getting charged for services you are not receiving and you are not stopping payment, out of fear of being reported you to a credit agency? I need some customers like you. :p

If they have the gall to report you to a credit agency, tell the agency the entire story. You do have the right to do so, you know.

Stop the payment to A, if they are not paying B and B has cancelled you, ( have proof they cancelled you) and have proof they refused to allow you to enter.

What is the legal connection between B and A, did B buy A

Thanks everyone. I got contract termination letter from gym B today. I have fax it to gym A billing company and requested to stop charging me.

@FR_Chuck: I am not sure about the relation. I believe Gym B bought gym A. I didn't have proof before except phone call. But today I got contraction termination letter signed by one of gym B employee.

@AK_Lawyer: I agree but I am just worried that this should not affect me. That's why I thought of taking advise from all of you here.