Consumer complaint received 2021-05-17
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: First Credit Services Inc. (NJ)

I went to XXXX XXXX in XXXX, NJ from XXXX of XXXX to XXXX of XXXX. I canceled my membership due to COVID-19 over the phone and the manager told me it was canceled. My account was shut down, including my online gym portal. The gym shut down the next day. When they reopened in XXXX of XXXX, the gym charged me, and I called them to remind them I had canceled. I could not even access my online account since I had closed it down, which they acknowledged, so I actually could not even see what the charges were for. The front desk staff member who I spoke to said they were still processing their cancelations from earlier in the year, which caused the delays. She said it would be resolved within a week or two and asked that I be patient. 

They charged me again in XXXX and I called multiple times to get updates, and I was told my cancelation was still 'pending '. When I did not get my refund towards the end of XXXX I asked to speak to a manager and was told he would not speak to customers regarding cancelations unless I came in person. I live almost two hours away so I said that wasn't feasible. XXXX said there was nothing they could do. I was confused as I was told that my cancelation was already done, and I was told multiple times they could see the notes on my account, so why did they need me to re-do it? When XXXX kept refusing to tell me why they would not honor my cancelation, I got my bank involved. 

In XXXX of XXXX, my bank disputed the claims and I was refunded the erroneous monthly charges and annual fees. I tried working with the gym to resolve the issue, but XXXX then said that because so much time had passed since I canceled, they would not refund me and I would have to re-cancel my membership and pay additional penalties for being late in paying XXXX and XXXX 's monthly fees - even though they admit they were the ones who did not honor the cancelation in time. While I am empathetic to businesses struggling during Covid, it is not my responsibility to pay monthly, annual, and late fees because they were not able to process their forms. 

If you check this location 's XXXX and XXXX review page, dozens of other customers have reported being charged after canceling and/or management not closing their accounts properly ( i.e., someone canceled their membership in person and this location 'froze ' it instead, and refused to cancel it and this person was expected to keep paying after their account unfreezes even though they clearly asked for a cancelation ). It is not just me who is told their account is closed, then fraudulently charged monthly and late fees. 

My bank allowed XXXX to provide evidence in response to the dispute, and they reviewed the paperwork XXXX sent. My bank ruled in my favor since XXXX  had no documentation that would continue my membership. XXXX  actually doesn't even have a signed copy of my original contract anymore ; the manager deleted all the contracts when I originally canceled so it's currently just a blank copy with a random date pasted on a cover letter. XXXX had to 're-create ' the contract, which obviously can not be trusted since there is no original. Clearly, a blank contract with no signature and no renewal date is not valid. Due to this, it was ruled that I was not supposed to pay XXXX 

However, after my bank ruled in my favor, XXXX  sent the money to a collections agency. I used a CFPB dispute letter and asked the agency for proof of any debt I owe the gym, and they ( once again ) sent a generic contract with no signature and no renewal date. It just has a cover letter with a random contract date and then a default contract attached, with no signature or renewal date. XXXX actually alerted my bank that it would still charge me, regardless of their decision, so my bank called me and we decided to block XXXX  from fraudulently charging my account. If you actually look at the 'invoice ' they are sending me, they are still charging me for monthly fees ... even though my bank has been disputing them since XXXX. 

I'm very concerned because both XXXX and the credit services are sending me unsigned template contracts as evidence with information copied and pasted onto the front. They are escalating the issue without providing me the evidence. My bank found that XXXX had no original or signed evidence so I'm not sure how to proceed. The cover sheet of the contract is not even accurate - I joined in XXXX of XXXX, and the face sheet said XXXX of XXXX. This provided clear evidence that the face sheet was created and is not the original contract, which XXXX  only admitted to after my bank questioned them. I don't know how to defend myself against 'evidence ' that isn't even valid. The credit agency gave me no way of further disputing the claim, only a phone number to call to make payments and that number does not handle disputes. I'm stuck at this point and the agency has provided no way of further discussing the erroneous charges. 

I'm hoping the CFPB can help me put this issue to rest and look into options for further disputing this. I have letters from my bank stating that XXXX has no renewed or even signed contracts to prove I owed them any fees. I also have called two personal trainers who used to work here ( up until XXXX of XXXX ) who say the manager purposely will lie about contracts ( including personal training packages ) and special pricing, then 'do whatever he needs to do ' to make it extremely difficult for customers to cancel. 

I don't think a collections agency should be used as a tactic to take money from people in a pandemic. Since the collections agency is not offering me a way of further disputing this, I am hoping this complaint helps me move forward.