Gym threatens to give me to a collections agency. What can I do?I started a membership with Premier Fitness in May 2008 and purchased 36 personal training sessions. They opened 2 accounts for me - one for the regular membership (account A), and one for the personal training (account B). Both accounts are bi-weekly, A is $25, B is whatever the total is for the PT sessions, divided by 26.
My trainer got fired after I used up 19 of the 36 sessions, so I stopped training with a trainer, as they were supposed to find me a good replacement. They didn't. 2 months later I got hired as a personal trainer at the gym myself, and I was told that all employees get free membership.
They kept charging my credit card for another month and a half (3 payments), and I tried many times to tell them to update their records and stop, but they didn't. So, I canceled my card. That, in theory, left another 4 months of gym membership on account A, and whatever was left on account B.
A year and a few months later I get 2 letters, one for each account, saying that I owe about $200 on account A, and $800 on account B (which claims that I also purchased some nutrition package, which I didn't). I call and from the call it seems that they want me to pay the $200, and "we can deal with the $800 later"... As far as account A goes, I was under the impression that if I'm an employee, I get a free membership, and this will stop. Account B - i signed an agreement to get training and pay for it... considering they never provided me with the service, are they entitled to the balance? I did the math, and the money I had paid to the point when I canceled my card was exactly for 22 sessions, at their hourly rate.
Now they threaten to send me to a collections agency unless I pay them... To add insult to the injury, they owe me over $400 in wages for months now, but they don't care - they say it's 2 departments, and to get my wages, I have to start another war. They also want things in writing, but they never provide anything in writing - that gym is one big mess and paperwork is almost impossible to get.
What should I do? What happens if I don't pay? What can they do to my credit (that other than this would be perfect)? I read something about "debt expiration of 2 year"... are they worried about that so they want me to pay the small one just so the timer gets reset, or am I misunderstanding that?
Any advice would be welcome.