Consumer complaint received 2020-09-18
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: JPMORGAN CHASE & CO. (CA)

XXXX XXXX XXXX XXXX XXXX is franchised business, membership based pilates studio whereby they retain members financial information and charge monthly dues based on the contract the member signed. My contract was for unlimited in studio classes which could be taken in other locations as well as XXXX at the cost of {$210.00} per month. I have been a member for 3 years and taken 586 classes. The owner of this location is XXXX XXXX. 

Due to COVId-19 the studio was forced to close in XXXX XX/XX/2020. I had been billed for my monthly dues and questioned how these dues would be allocated upon re-opening. The then, General Manager, XXXX XXXX, responded that she had reversed my monthly dues and my membership would be on hold until XX/XX/2020. ( See attached email chain : XXXX ). 

XXXX  XXXX eventually re-opened in XX/XX/2020, I was charged my monthly dues and everything was fine until XX/XX/2020, when I was charged my monthly dues of {$210.00} on XX/XX/2020. I then received a text message on XX/XX/2020, that the studio was closing effective immediately due to COVID-19 mandate. I responded to that text by stating I had been charged my monthly dues on XX/XX/XXXX, it was now XX/XX/XXXX, that it was fine to prorate the 3 weeks of my XXXX membership dues to when the studio re-opened, but dont charge any further. The XXXX  response was XXXX. 

On or about XX/XX/2020, I noticed I had been charged again, {$210.00} on XX/XX/2020, for my XXXX dues. The studio remained closed since XX/XX/2020 through the writing of this complaint. 

On XX/XX/2020, I sent an email to the general manager asking her to reverse the XXXX charges and sent copies of my text messages referenced above. On XX/XX/2020, I received an email response from GM, XXXX XXXX, stating that unless you have requested your membership placed on Freeze, you will continue to be billed because we are providing virtual classes to members. XXXX XXXX email chain : XXXX ). 

My membership and all other XXXX memberships have nothing to do with virtual classes. They are contracts entered into for in studio, live classes with pilates instructors, reformer beds and other equipment. I later found out that an email had been sent through the XXXX  XXXX  telling Letter from XXXX XXXX Re : XXXX XXXX XXXX XXXX  XXXX XXXX XXXX, 2020 Page 2 members they could place a Freeze on their membership, which generally costs {$15.00} per month, and I am unsure what XXXX  charged during this time. 

XXXX has its own email system, that can be set up to notify members of their upcoming classes and changes. Many members opt out of this email system as we know our schedule and do not need or want more daily emails. The XXXX  studio owner and manager have access to every members account and can easily see who is receiving the emails and who is not. I did not receive the email and thought everything was handled via text. 

Additionally, I could not fathom a situation wherein a business that had an agency relationship over my financial information would charge my credit card for a service they did not and could not provide. Its illegal. I responded to that email indicating same. 

I then reached out to another XXXX  employee to find out what was going on. I was told that XXXX, the owner, is refusing to refund anyones membership dues and I should dispute the charge with my credit card company which I did. 

I also sent an email communication to XXXX XXXX XXXX through the XXXX   website. I do not have a copy of that email. In that communication I explained that in the little I know about Franchise agreements, I understood that the Franchisor had a duty to protect the reputation of the Franchise and the Franchisee had a duty to refrain from doing anything that would tarnish the name or reputation of the business. I explained that charging a person, just because XXXX has the credit card info, for something the studio did not and could not provide is illegal. I understood that many members from XXXX XXXX studio were having the same experience as I was and stealing money from members will in fact damage the reputation of the business. 

I was contacted by XXXX XXXX, who owns two other XXXX  studios, he wanted me to know the President of XXXX XXXX, XXXX XXXX, had received my communication, had reached out to XXXX XXXX who was traveling and would have the GM call me Monday. 

The GM, XXXX XXXX, did call me in the late afternoon on Monday XX/XX/2020, told me they were wrong and willing to credit me, but saw I had already disputed the charges so they could not do anything at that point. Again, she asked me to fill out a Freeze form for a 3 month period which is the maximum amount of time a member can freeze their membership. I asked why I would need to freeze a membership that XXXX  could not provide. I didnt want to freeze anything, I wanted to resume my classes when the studio was allowed to reopen. 




Letter from XXXX XXXX XXXX : XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXX, 2020 Page 3 The next day XXXX received an email from XXXX XXXX XXXX the owner of XXXX  XXXX XXXX XXXX In essence, he told me that I owed XXXX  money and I should either pay my bill or if he did not hear from me, he would consider my membership terminated effective immediately. I did not respond. ( See email chain : XXXX XXXX. 

XXXX XXXX challenged the charge-back. I was just notified by my Chase visa that they are allowing the charges because the shut down was mandated by the Government, so not the fault of the business. I know XXXX XXXX has sided with their customers on this issue and I feel Chase Visa has taken this position because the merchant brings them more business than I do. I do not understand how my financial institution can stand behind I have to pay for something which COULD NOT be delivered. The charge was put back on my statement. I called Chase Visa, they stand by their decision because it was " no fault '' of the business and instead Government mandated. 

I have supporting documents upon request and can download the letter from my bank. 

Thank you,