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QLD GoHealth Took Over Previous Gym - Refund under Australian Consumer Law?

Discussion in 'Australian Consumer Law Forum' started by IvanJavor, 20 October 2015.

  1. IvanJavor

    IvanJavor Member

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    I was a member of a gym called Zest and i was on a weekly contract, i signed up with them in 2004 and the company went into administration around 2007 or 2008 or around that time. So one day when i turned up they told me that the company was in administration but they allocated a new gym location in the same suburb for the current members.

    This location didn't have the name or any insignia of a business name. So i went to this location a few times but one day when i turned up there was nothing there and the doors were closed. So recently i accidentally had a look at my bank statement and i noticed that money was being withdrawn by a company called GoHealth which is another gym located in the same suburb but a few streets away.

    Their location is different to all previous locations mentioned above but in the same suburb. So i gave them a call and they told me that i was a member there on a 13$ fortnightly contract. Apparently what happened was, GoHealth took over Zest and took over all of their assets, including membership contracts from Zest, which according to them is completely legal since that was part of my original with Zest.

    When i spoke to GoHealth they had my wrong address since i changed my household, wrong email and wrong phone number because many years have passed and i didn't even know i was contracted with GoHealth so i guess even if they tried contacting me there was little chance they could. In the meantime i was a member of other health clubs but i never once went into GoHealth since i sincerely didn't know my membership was taken over my them.

    So they offered me some free time and a permission to cancel my membership but i was wondering if i could get my money refunded under Australian Consumer Law?
     
  2. Sophea

    Sophea Well-Known Member

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    What money do you want refunded? The money that you paid after Zest went out of business?

    I would ask for a copy of the contract that you signed which states that you would be bound by successors of Zest. Check that it says what they allege it does. Then write them a letter of demand requesting a full refund of the monies that they took from your account since you received no benefit for the money that you had been paying them. Also threaten to take it to the Office of Fair Trading. If they refuse to give you the refund, discuss it with the Office of Fair trading and see what they can do for you.

    There is a provision in the Consumer Law for unfair pro-forma contracts, such as the type used by gyms however I'm not sure there is any clause that would necessarily be construed as unfair in this case. It appears to simply have been a case of several independent events resulting in you not being aware of the change over and your right to cancel your membership back at the date that the change over occurred.

    Let us know how you go.
     
  3. IvanJavor

    IvanJavor Member

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    Thanks for the reply, ammm yeah i would like to refund the money that i paid after Zest went into adminstration but you are definitely right with this sentence "It appears to simply have been a case of several independent events resulting in you not being aware of the change over and your right to cancel your membership back at the date that the change over occurred".

    I will chase down that contract and I will contact Office of Fair Trading to see if i can do anything about this matter and i will let you know how it went. Even though i understand that these contracts can be taken over i still think these companies have to advise their the previous clients and offer them cancelation option since they changed their location and business name.
     

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