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Home / New Zealand

Auckland man loses $2000 at a Three Kings gym he never stepped foot in

NZ Herald
26 Jul, 2018 02:05 AM3 mins to read

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Diego Opatowski was shocked to discover a gym he had been a member of years ago and which had closed down had been taken over by a new company that were still charging him fees.

Diego Opatowski spent two years paying for a gym membership he had no knowledge of and had lost around $2000.

He signed a 12-month membership with Club Physical in Three Kings in 2015 but assumed it ended when the year was up.

He has spent the past two years unknowingly paying for a membership to City Fitness, costing him around $2000, despite never setting foot in the gym.

Due to the terms and conditions he signed in the first contract, it was listed that unless he cancelled he would automatically be charged in the future.

Opatowski acknowledged that the fine print of his contract said payments would become automatic after the 12 months if he didn't cancel.

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"I understand it's all legal, having said it in the terms and conditions but it is not ethical. I feel that they are taking advantage of people," he told the Herald.

CityFitness director of operations Lisa Brown said the company wouldn't discuss Opatowski's situation because of privacy issues.

Opatowski signed a 12-month membership with Club Physical in Three Kings in 2015, but hurt his back after six months and did not return.

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He continued paying the year-long membership, believing it would run out after the 12-months had ended.

However, Opatowski was left scratching his head after he discovered two weeks ago a new gym had taken over from the previous and continued to charge him.

CityFitness took over from Club Physical and they picked up Opatowski's original contract with Club Physical and continued to charge him a membership.

Brown said CityFitness wrote to members multiple times to offer them a CityFitness contract at a lower membership deal.

"Those who didn't convert onto CityFitness contracts remained on their original contracts, and the terms that they originally agreed with Club Physical," Brown said.

"It is common practice in many industries for contracts to automatically roll over following the completion of a minimum term, including the fitness industry, because it allows customers to continue accessing services without the need for further administration or a break in the service – this also enables us to deliver competitive pricing to our members."

Opatowski was told CityFitness would not be willing to refund him on the basis that he never completed a cancellation form with Club Physical.

"In the terms and conditions of my contract, it does say that after 12 months they are allowed to roll me into automatic payment.

"But, with that gym, not another one. How could I imagine that I have to cancel for a business that is no longer there?" he said.

Opatowski said while he might not get a refund, he wanted to warn others who might be caught in a similar trap and are paying for a membership without knowing it.

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Consumer New Zealand suggested that before signing a gym contract, people should make sure they understand the fine print.

It's also important to take notice of whether contracts have a minimum period and what happens when that ends, a spokesperson said.

Consumer NZ advice:

• Check your bank statement on a regular basis so that you see unauthorised money come out and find out what has happened

• Make sure your gym has up-to-date contact details so any reminders aren't sent to an old email address/address

• Ask the new owner for a copy of your contract with them that authorises them to take money out of your account

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