News & Resources

Fitness club's questionable collection tactics under fire

May 16, 2012 Philip Burgess

Fitness club's questionable collection tactics under fire
A Canadian fitness chain is in hot water after allegations that the debt collection firm it contracted with has illegally been withdrawing funds from former members' accounts after they've cancelled, the Hamilton Spectator reports.
 Premier Fitness Clubs, via a partnership with National Credit Recovery, have been sending bills via email that demand payments within five days, threatening alleged debtors with "black marks" on their consumer credit scores, the news source states. What's more, some Premier clubs that have closed are still removing monthly fees from former members' accounts. One victim, Patti Stolarchuk, told the media outlet that payments have been coming out of her bank account every other week from a club that closed nearly three months ago. Jose Blommestyn, vice-president of operations for National Credit Recovery, assured that anyone being called about a Premier debt can get the action stopped if they provide physical proof that they've cancelled their memberships. The Star reports that Premier has begun selling off its locations to potential buyers, and so far has sold 18 of its 30 franchises.