They also cannot require payments over a period of one month past the length of the contract. For example, if the contract is for one year, the payments cannot be for more than 13 months. Payments must be required at equal intervals, and not more frequently than one per month. A contract must also include a consumer's rights to cancellation. Many health clubs prefer to bill consumers automatically, either by charging the payments to their credit cards or by electronically withdrawing them from their bank accounts.
Automatic billing can be a direct benefit to both consumers and health clubs.
It allows consumers to save time preparing payments and to eliminate the chance of being charged fees for late payments. In addition, it affords health clubs a cost efficient billing system. However, problems may arise when consumers cancel their memberships. In fact, the majority of consumer complaints and inquiries about health clubs with OCA concern automatic billing issues that arise when consumers terminate their memberships. By law, health clubs may not require consumers to pay with electronic fund transfers.