Consumers are cutting the fat from their budgets. And sometimes, that means not worrying so much about the fat that lives a little closer to their waistlines.
Some fitness clubs are taking a hit as the economy slogs through recession and gym memberships fail to make the cut on consumers’ “must-have” lists. And increasingly, club members who want to cancel are getting frustrated about complicated contract language that often delays membership termination by months.
That was what happened when Aubrey Michaelis tried to cancel her membership at Everett’s LA Fitness earlier this month.
She found her contract with the gym could only be terminated by mailing a letter to the club’s corporate office in California. And after receiving written notice of cancellation, the gym continued to withdraw membership fees for 20 days.
On top of that, her pre-paid “last month” was applied.
That meant two months more than Michaelis planned on paying, a contract stipulation she thinks exists to scam customers out of their money. “I just think it’s a dishonest policy,” she said. “The bottom line is, it’s kind of rotten.”
Calls to the gym’s corporate office were not returned last week, and the manager of the Everett LA Fitness declined to comment on how memberships are terminated.
But as gym members across the country are rethinking their priorities, fitness clubs are getting more creative about keeping clients.
Earlier this month, the national chain Planet Fitness offered memberships for $1. Some smaller chains are experimenting with 24-hour self-service gyms that aren’t always staffed with trainers.
For Michaelis, cancellation was spurred by worry about her finances and her track record for going to the gym — not as often as she would have liked.
“I’m trying to just get our finances down to what we have to pay,” she said.
That shouldn’t include two more months of fees, Michaelis said. She filed complaints with the state attorney general’s office and the Better Business Bureau.
Overall, LA Fitness has an “A-” rating with the Better Business Bureau, according to a spokeswoman for that organization. In the past 36 months, there have been 508 complaints filed against the gym — more than half of which LA Fitness said “occur when customers fail to read and follow contract stipulations.”
Comments left by gym members on the BBB Web site detail experiences similar to that of Michaelis: Memberships take months to terminate and staff are courteous but allegedly unresponsive to cancellation requests.
LA Fitness is far from the only gym against which complaints have been launched — and in some cases, those complaints aren’t resolved. 24 Hour Fitness headquarters has a BBB ranking of “F,” mostly due to the unresolved status of some complaints. Individual club ratings vary.
When it comes to contracts, there isn’t a lot of legal wiggle room, said Kristin Alexander, a spokeswoman for the state attorney general.
“The law on contracts is pretty clear — you are bound by it,” she said.
There are a few loopholes for members: one state law allows for cancellation within three days of joining. But as for other reasons?
“Just not being able to pay is not one of them,” Alexander said.
Since 2005, the state attorney general’s office has received 79 complaints about 24 Hour Fitness — more than any other health or fitness club in the state. (The gym has 19 locations in Washington.)
Most complaints were focused on billing issues, and only six were are specified as being about a client’s “right to cancel.”
The fitness chain issued this statement in response to cancellation complaints: “24 Hour Fitness offers a wide variety of membership options, including monthly payments and pre-paid multi-year agreements. Members are provided full information on their right to cancel and the cancellation process when they sign up.”
Health and diet clubs ranked 20th on the state attorney general’s list of most-complained-about industries last year, right behind auto repair businesses and mortgage lenders.
‘One of those luxuries’
The economic outlook isn’t entirely dire for fitness clubs — some have even reported an uptick in membership as stressed-out workers seek relief through exercise.
The YMCA’s Snohomish County branches didn’t see membership decline as the economy soured, but that might be because they’re willing to foot the bill of members who lose their jobs.
Ted Wenta, vice president of operations for county YMCA branches, said they have more than 4,300 members receiving financial assistance earlier this month. At that time last year, there were about 2,470.
“If a current member comes to us and says, ‘I have lost my job,’ we will provide financial assistance for six months,” Wenta said.
Matt and Terri Reed have been on the YMCA’s extension plan since March, when Matt lost his job as a family pastor at a church in Monroe. Terri went to the YMCA branch to cancel the family of six’s membership, but found their $75-per-month membership fees would be waived for six months or until they found work.
“It was an answered prayer,” she said. “One of the things my husband is trying to do is get into law enforcement.”
The six-month extension helps him stay in shape while he’s tracking down job leads, she said.
Usage rates — the frequency with which members visit YMCA gyms — are up over last year, Wenta said. But though the YMCA hasn’t experienced dwindling membership, the same can’t be said for some for-profit gyms and health clubs.
Leanne Christie, owner of the Body and Mind Fitness studio in Arlington, has noticed her clients’ numbers waning. Last years, she coached about 35 people; this year, about 25.
Christie also watched membership numbers drop at the Gold’s Gyms she used to manage in the north part of the county. This spring, she’s launching a series of free fitness classes at her studio.
“It’s what people need most right now, but it’s definitely one of those luxuries they’re letting go,” she said.
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