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     | Monday, May 29, 2000 - 12:21 pm  About 5 years ago, I signed a Bally's gym contact (ugh)... it was a mistake. I requested cancellation at the club (no proof unfortuntely)within the 72 hours time frame, and never used another Bally's again. Now 5 years later, I started receiving letters from Financial Credit Corp telling me I owed them 671$ for a debt of unknown origin. I sent them back a letter (no return receipt... I'm learning the hard way)within the initial thirty days after they notified me, requesting proof of the debt. They never responded... until this weekend, when my mailman delivers me a summons for a Civil Court Case demarnding the 671$ + lawyers fees for this Bally's debt. (Side note, I didn't sign for anything... he put both the mailed copy, and the copy with return receipt still attached in my mailbox) Financial Credit Corp is listed as an "assignee" of Bally's Total Fitness. Now I don't have any proof of the requested cancellation at the club, but until now I was never pursued for the cost of the membership, nor did I have any indication who these people were until they sued me... what do I do?
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| | Monday, May 29, 2000 - 07:40 pm I'll leave the legal advice to others who have more knowledge, but I do want to encourage you to follow through with this, and don't let it slip! IF you do nothing, you'll have a default judgement against your credit report, and that is a credit-killer big time. I would attempt to solve this in the most efficient manner possible, but consider this: Regardless of how you handle this, do whatever you have to in order to prevent this stuff going on your credit report. In my opinion, it is worth paying the debt just for that reason. You can't imagine the inconvenience, humiliation, declined credit, mortgage problems, frustration (dealing with credit bureaus, etc) that will occur due to something like this. I know that others will chastise me for my position, on principle, but from a practical standpoint, all the future trouble is not worth the $671 plus fees. If you do settle in some way (even if it's just paying the demand), GET IT IN WRITING, on signed letterhead that the settlement you propose HAS THE NON-NEGOTIABLE requirement that the agency AND Bally's will NOT place ANY entry in your file with ANY consumer reporting agency. In other words, part of your settlement is that this issue vanishes entirely and forever.
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| | Monday, May 29, 2000 - 09:11 pm I agree with Lynn. We don't know how much money you have. Can you afford a lawyer? Do you have the ability to pay their demand? Was (is) this debt on your credit report? You don't say if Bally's continued to bill you, nor what State you live in. Maybe the SOL on this is already expired. You can also play THEIR game, not show up in court and later claim you weren't notified and have the judgment set aside. Just like THEY didn't get your cancellation and the dispute. IF you go to court, much would depend on the judge. He could believe you or them. *I* wouldn't go without a lawyer. With the limited info you posted, even a lawyer couldn't advise you properly. Where did you sign the contract, are you still at the same address? Have you checked for your SOL (Statute of Limitations) in the "Links ..." section?
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| | Tuesday, May 30, 2000 - 12:28 pm Thanks for the help... I did check the SOL it's 6 years for written contracts in NJ. The agency who filed the suit only attached the reverse side of the contract with a handwritten notation "Bally's" - when I reveiwed my credit report, it did not shows the entry from Financial Credit Corp (which is the assignee on the suit), or from Bally's. However, I did successfully dispute off a debt on my Experian report, from Perimeter Credit about 2 years ago (again with no indication of the debt's source). Now I'm reading that Perimeter is Bally's also. I signed the contract when I lived in Morristown, NJ - I haven't lived there in over 4 years. And I never got any mail forwarded from that address. If FCC is an assignee of Bally's... do they own the debt? Or are they just an agent (meaning I could still negotiate with Bally's itself). I can afford to pay the debt over time... but this is a health club notorious for scamming people... I checked the site at http://www.consumeraid.com/faq.htm and it indicated that the FTC penalized Perimeter in '99 for violations of the Credit Reporting Act. I do want to avoid another black mark on my credit record (I'm only now recovering from previous debts)... but I'm infuriated by the concept of paying for something I never used or even knew of the debt for. I can get a lawyer... but by the time I cover his fees I probably would have been better off negotiating the debt. Any input you folks have is helpful.. thanks
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| | Tuesday, May 30, 2000 - 02:05 pm I HIGHLY recommend that you call some lawyers and see what THEY recommend, some will give you a brief free phone consultation. If Bally's didn't bill you after you cancelled, one would assume that they received your cancellation. The whole thing sounds very weird. As Lynn said, "You can't imagine the inconvenience, humiliation, declined credit, mortgage problems, frustration (dealing with credit bureaus, etc) that will occur due to something like this." US residents are so terrified by a negative credit entry, they pay debts they don't owe just to maintain a good credit rating. And that's EXACTLY what corporate wants. I have been trying to find some affordable legal options, but it seems like everything I look at is just another scam. I'm sorry I can't be of more help. Call a few lawyers and let us know what they say!
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