QLD Recovering Years of Illegal Direct Debit Charges by Gym

[Julie Baker]

Hi there,

Yesterday I discovered that a gym that I have never heard of before has been direct debiting my credit card since early 2014 (6 years). I have never heard of this gym, never been to the gym, never spoken to anyone from that gym.

Six years ago I filled out a gym application and a direct debit request form for a gym near my house in Fortitude Valley. I went approximately 3 times. I then contacted the gym (in writing) and told them that I needed to have surgery urgently and asked if I could suspend my membership. The owner of the gym contacted me back (in writing) and said "we haven't even processed your application yet, so you haven't even started paying. No worries". I never attended that gym again, and, assuming there was no Contract, never contacted them again and never thought about it again.

Yesterday I discovered that one month later (back in 2014) that gym was sold to a Mixed Martial Arts/Karate academy in a different location, with a different name, and a different ABN/ACN. And that the 'new' mixed martial arts business has been debiting my credit card for 6 years without me ever knowing. It amounts to tens of thousands of dollars taken from me.

I contacted the first gym and asked for a copy of the Contract so that I could see what the cancelling clauses were and the assignment/novation clauses were. He said he gave all of the records to the new company at time of sale. I then contacted the second business and asked for a copy of my contract - and they do not have it. I asked the second business for a refund of all my money since I've never stepped foot in their gym - and the owner said "no".

I need to know how to recover my money and who to recover it from! Is it the first gym who told me that my membership application was never even processed (eg. there was no contract) but then gave my credit card details to the second business?? Or is it the second business I should pursue, who actually took all the money from my credit card over a 6 year period?

I'm thinking of going to QCAT...is this the right avenue? But who do I name in my application?? Help would be so appreciated - this is enough money for a house deposit.

 

[Scruff]

You never had a contract with either company and you have a written response from the first company to prove it.

Since the second company can't produce a contract and refuses to give the money back, I would report them to the Police for fraud. As far as I can see, if there was never any contract, it's not a consumer law matter - it's a criminal law matter.

 

[Julie Baker]

You never had a contract with either company and you have a written response from the first company to prove it.

Since the second company can't produce a contract and refuses to give the money back, I would report them to the Police for fraud. As far as I can see, if there was never any contract, it's not a consumer law matter - it's a criminal law matter.

Thanks. I think there is a criminal law element here... but pursuing that line won’t get me my money back. I assume the only way is to pursue it in the civil system. I called half a dozen lawyers yesterday... commercial/contracts types. None of them interested.

 

[Rob Legat - SBPL]

It’s a QCAT type matter and you can’t be represented for it except with the leave of the Tribunal.

Your first port of call should be your card scheme to dispute the charges as far back as they will allow you (probably a maximum of 2 years). They’ll request a copy of the authority from the direct debit company - when that doesn’t appear, you should get refunded the allowable chargebacks.

Using that outcome as ‘evidence’ take the MMA gym to QCAT seeking the balance.

Be prepared for some possible push back on the basis that you’ve had six years to notice this and haven’t done anything.

 

[Scruff]

I stand corrected. Thanks Rob.

 

[457Visafraud]

Six years ago I filled out a gym application and a direct debit request form for a gym near my house in Fortitude Valley. I went approximately 3 times. I then contacted the gym (in writing) and told them that I needed to have surgery urgently and asked if I could suspend my membership. The owner of the gym contacted me back (in writing) and said "we haven't even processed your application yet, so you haven't even started paying. No worries". I never attended that gym again, and, assuming there was no Contract, never contacted them again and never thought about it again

Always be very very careful when you sign any membership with gyms because you enter in contract with a third party financial institution which manages your account and you PAY for it as it's included in the gym membership!

we haven't even processed your application yet

that means not yet, it was done later.

so you haven't even started paying

again not yet but the contract was signed and forwarded to the financial company.

I needed to have surgery urgently and asked if I could suspend my membership

it was best practice to accompany the request with a medical certificate.
I see many easy mistakes here not because you're a bad person but the problem is when signing a contract you need to know the Laws especially when dealing with financial institutions.
And I understand you had to deal with health issues so it wasn't easy to deal with the gym problem.
I don't know your health issues but just in case if any and relevant, you could better fight this fraud with a medical certificate.

it the second business I should pursue, who actually took all the money from my credit card over a 6 year period?

Yes I think so, they must show you a copy of the contract as for the first step because passing your bank details to "someone" (the second gym) who just withdraws money without having any authority or contract document it's a fraud.