Consumer complaint received 2022-04-11 00:00:00
Product: Debt collection — Other debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Outsource Services, Inc. d/b/a National Acceptance Company
State: MD

Complaint narrative:
I want to voice my complaint about deceptive practices that are evidenced at XXXX XXXX ( XXXX ) Gym. 
During the month of XX/XX/XXXX thru XX/XX/XXXX, XXXX put out an advertisement as a XXXX XXXX. They were looking for 45 participants to embark on a 16-week weight loss journey. I attended an informational session on Friday, XX/XX/XXXX. The program would begin on XX/XX/XXXX and end 16 weeks from that date or approximately XX/XX/XXXX. I decided to join for the 16-week challenge. We were also informed that XXXX is using a billing company, National Acceptance Company ( NAC ) to handle the monthly payments. I paid two months in advance on XX/XX/XXXX, one payment would be due XX/XX/XXXX and the final payment due XX/XX/XXXX. During the informational session, it was stressed to attend 3 times a week alluding to the fact that you had to make at least 48 sessions ( 16 weeks x 3 days a week ). If you do not, your assigned trainer will stay on you. Nothing was stated that you will have to continue to pay the monthly fee for an entire year. What was stated was- After the 16 weeks, you can choose to continue with the program or cancel. If you choose to just do the 16-week challenge, a letter will be provided to you to send to the billing company to stop the monthly payment coming out of your account. XXXX also started a private XXXX XXXX. 
DECEPTION # 1 : The program was limited to 45 participants. 
During the first week I attended an evening class. The class was packed. I thought it may have 10 to 15 participants, but it appeared to be over 25 or more students in class. Looking at the pictures on the XXXX page, all the classes were packed. Obviously, they registered more than the stated 45 people. I voiced my concern in the private group chat. Others had the same concern. The classes were larger than anticipated and the concern of COVID-19 outbreaks and social distancing were not really addressed. I continued to attend though I was already disappointed and felt that we were all misled. It was stated they had an overwhelming response, so they kept registration opened. The registered over 250 people.

DECEPTION # 2 The classes are small and you have the flexibility of choosing your scheduled class time. Social distancing will not be a problem. 
During the informational session in XXXX, it was stated that since it was going to be a small group and classes are held six days a week and approximately 8-10 classes a day except Saturday which is maybe one or two classes, there should be no concern of overcrowded classes and you have the flexibility of choosing your own time for a workout. 
Sometime in XX/XX/XXXX, due to the surge in COVID, they required everyone to register for classes instead of showing up at any time and limiting it to 20 participants a class. Unfortunately, I could not sign up in advance due to my work schedule and I needed the flexibility of being able to show up when it was conducive to my schedule. I tried to sign up a few times, but the timeframe that worked for me was already full. After a few tries, I decided to count it as a loss and after the 16 weeks, I will get a letter to send to the billing company. 
Through the XXXX XXXX several persons communicated that they were out of classes due to COVID-19 and was glad to be back to class. However, others stated that due to them having COVID-19 they could not make up the missed time and wanted information about cancelling the class. 
DECEPTION # 3 The title of the challenge is misleading.

As stated, this was a 16-week challenge. After the 16 weeks, it was told to us that we had to send a letter to the billing company stating that we were ending the program. However, if you wanted to continue with the program, the monthly amount would continue to be deducted. Since I chose to stop coming to class, mainly because of the surge in COVID-19, I was waiting for the end of
the 16 weeks to get the official letter from XXXX and send to the billing company. Through the XXXX XXXX, several participants were very upset after calling the billing company and not able to cancel for various reasons. We paid for a 4-month challenge however, because we did not have a total of 48 sessions completed mainly due to weather cancellations the billing company charged everyone for the fifth and sixth month ( XXXX and XXXX ). Finally, one of the XXXX administrators, called the billing company and shared the outcome with the group. XXXX extended the timeframe to complete the challenge thru XX/XX/XXXX. Once you complete the 48 sessions ( 16 weeks x 3 days a week ), then the monthly amount will be refunded. If you did not complete the 48 sessions, then you are locked into a years contract. XXXX also shared that they were not happy with the billing company, and they will no longer use them. However, I am sure that the billing company is paying XXXX  their allotted amount, but XXXX is not willing to work with us as a member of their gym to resolve any payment issues. 
On XX/XX/XXXX, I had a phone discussion with XXXX, I think he's the owner of the gym. He stated that if you attended at least 25 times, then they would complete the form as though you attended 48 times. That was never publicly communicated, and it was not posted in the XXXX group. I did not attend 25 times therefore, I would not qualify to get a letter to send to the billing company to cancel the contract after 16 weeks.

This is the most misleading and deceptive practice of them all. I do not recall anyone discussing a 12- month contract during the informational session. During the phone discussion with XXXX, he asked me did I read the contract? I said, during the informational session, no I did not read the contract. However, the title of the challenge is 16 weeks. It is not called a 12-month challenge, but you can opt out after 16 weeks. It was told to us that after 16 weeks, a letter will be provided to send to the billing company. It was not stated that we had to continue to pay if we did not complete 48 sessions. Due to the surge in COVID cases through-out the United States , including Maryland, I chose not to return to the gym. As a result, I must pay for a 12-month contract. This is ridiculous. From the XXXX XXXX chat, others contacted the billing company and was informed that you can provide a doctors slip to prove you can not attend classes during the 16 weeks. This is also ridiculous and absurd. We did not have to have a doctors note to sign up for the challenge but now must produce a doctors note to get out of a contract if its health related. 
As reflected in the conversation that the administrator had with the billing company, no one will be allowed to cancel the contract until after XX/XX/XXXX. It also states that XXXX will work with all of us to get out of this contract. From the administrator, We are going to make sure you all have complete attendance forms and meet all attendance requirements. Regardless of illness, etc ... because this is ABSURD. 
This statement must not apply to everyone specifically me since XXXX has denied providing me a letter to get out of this contract. 
I signed up for a 16-week challenge that was supposed to have a maximum of 45 participants and the gym was large enough to allow for socially distancing. Also, I would have the flexibility of choosing my time to attend classes. Because none of these circumstances proved to be true, I was not able to benefit from this challenge. As a result, I am now subject to collection letters from a billing company that was contracted by XXXX gym. The monthly amount was {$79.00} but a letter from the billing company dated XX/XX/XXXX is charging me {$89.00} for the month of XX/XX/XXXX. 
This is unacceptable to me, and I think this should be investigated not only from a legal perspective but due to the surge in COVID, this should not be a problem to allow people to get out of this deceptive 12-month contract when it was only for a 16-week ( 4 months ) challenge. 
XXXX XXXX is located at XXXX XXXXXXXX XXXX XXXX XXXX, XXXX XXXX MD XXXX. The phone number is XXXX. 
XXXX is located at XXXX XXXX XXXXXXXX, XXXX, PA XXXX. The phone number is XXXX.

Company public response: Company believes complaint caused principally by actions of third party outside the control or direction of the company
Company response to consumer: Closed with explanation