March 31, 2004

By: Maxwell Stone
Website: http://www.1st-in-fitness.com

OCA survey shows majority of health clubs illegally require credit card or electronic funds transfers as only method for monthly payment

As more and more consumers look to join a health club this month, the Office of Consumer Affairs and Business Regulation advises consumers of their rights when it comes to health club membership payment methods, as many clubs appear to be operating outside the law.

A survey conducted this month by OCA showed that 55 percent of health clubs only offered two choices for monthly payments: credit card or electronic fund transfers. By law, health clubs must allow members to pay their monthly dues with cash and cannot require consumers to pay with electronic funds transfers or a credit card.

“Just as December is all about eating, January is all about health clubs,” said Beth Lindstrom, Director of OCA. “It is important for consumers to understand they have options when it comes to paying for their health club membership. For health clubs, it is far easier to collect monthly dues through a credit card or electronic transfer, but consumers cannot legally be forced into that arrangement. Health clubs must permit payment by cash and consumers interested in paying that way must be allowed to do so.”

“The important issue here is choice,” added Lindstrom. “Automatic billing can be a convenient choice for some consumers, however problems may occur when it comes to canceling memberships. In fact, consumers should know the majority of complaints and inquiries about health clubs with the OCA Consumer hotline concern automatic billing issues that arise when consumers terminate their memberships.”

Author Notes:

Maxwell Stone contributes and publishes news editorial to http://www.1st-in-fitness.com.  A source of information and helpful tips on various types of fitness equipment.