Hello,

I live in Alberta, Canada and have a question regarding the limitations a collections agency can mark your credit report.

In March of 2004 I allowed a gym membership to expire and have never returned to the gym. I paid the total amount agreed to in the original 2 year commitment (March 2002 - March 2004), and never missed a payment.

I recently applied for a new car loan and discovered that a debt of $160 was turned over to a collection agency for payment of unpaid dues extending past the original end date of the contract. Apparently, because I didn't go into the gym and cancel my membership, they continued billing me month-to-month.

I have never received a phone call nor a letter from the collection agency and the gym is now closed and out of business.

The question is, at what point is it within my rights to remove this negative mark on my credit report (obtained from TransUnion)? I was denied the loan based on this.

Thank you for your help.

Sorry I don't have exact knowledge of canadian law...
But following the principles of natural justice that is " not following the principles of civil court" I think you should try to find these things from your records or gym's records
1 gym contract or application for membership
2 if the fee is paid by cheque " bank statement" for the period
3 if paid in cash, cash receipts with you or duplicate copy with gym
4 gym policy of allowing a member credit for the fee
5 the fact that " no call or letter has been received either from gym or collection agency "
Ask for reason why the collection agency hasn't sent you any reminder.
6 Your original contract was for 2 years, until and unless you apply for further period they
Are not entitled to assume that you are willing to continue...
7 you may file a complaint in consumer court for wrong billing on the above facts

Quote:

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Originally Posted by omsailogistic

sorry i don't have exact knowledge of canadian law.....
but following the principles of natural justice that is " not following the principles of civil court" i think you should try to find these things from your records or gym's records
1 gym contract or application for membership
2 if the fee is paid by cheque " bank statement" for the period
3 if paid in cash, cash receipts with you or duplicate copy with gym
4 gym policy of allowing a member credit for the fee
5 the fact that " no call or letter has been received either from gym or collection agency "
Ask for reason why the collection agency hasn't sent you any reminder.
6 Your original contract was for 2 years, until and unless you apply for further period they
are not entitled to assume that you are willing to continue...
7 you may file a complaint in consumer court for wrong billing on the above facts

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Thanks for your response...

1 - I've moved 3 times since the expiration of the contract and would have little hope of finding the original contract
2 - The monthly dues were paid each month by authorized debit withdrawal. At the time I noticed the automatic withdrawals continuing I contacted my bank and cancelled the payments.
5 - I'm assuming because I've moved three times, they can't find me. I do however, live in the same city, and my name is in the phone book. I'm easy to find.
6 - That was my thought as well at the time. I didn't authorize, nor did I sign a contract extension. If they can extend your contract without your signature, why even sign a contract in the first place? It seems only to protect them, not me.
7 - As I said the gym is now closed. They didn't move, they didn't sell to new owners, they went out of business. My quarrel is now with the collection agency.

Collection agencies cannot operate without a copy of the contract you signed with the gym, send them a registered letter asking for a copy of the contract and proof they are authorised to collect for the gym. The gym must have sold the debt to the credit agency and in doing so they obtain a form, this form is the legal document they must poses to collect.

With the contact you can show the date the service contract ended, as long as their isn't an automatic renewal clause you should win.

CC the Edmonton consumer protection office and explain the whole story, someone should be able to help you

Alberta
Service Alberta
Consumer Contact Centre
17th Flr. TD Tower, 10888 – 102 Avenue
Edmonton AB T5J 2Z1
Tel.: (780) 427-4088 (Edmonton and area)
Toll Free: 1-877-427-4088 (Alberta only)
Email: [email protected]
Website: Service Alberta - Home

Found at: Canada's Office of Consumer Affairs - Canadian Consumer Handbook 2007