The purpose of this posting is to investigate possible fraud and/or unfair business practices being committed by ABC Financial, Inc., a company that provides billing services and contract administration for health clubs and gyms.
In this regard, our firm is currently investigating claims that ABC Financial fails to disclose to consumers that their gym contracts will automatically renew, refuses to cancel gym contracts for consumers who are relocating or suffering from a disability that renders them unable to use the gym, and continues to charge consumers monthly fees after being notified that the consumers wish to cancel their contracts.
The incidents we have been informed of include:
- A consumer who signed up for a four-year contract with monthly payment terms. Soon thereafter she was diagnosed with multiple illnesses that resulted in her inability to visit the gym to work out. She contacted the gym to cancel her contract, who then to ld her to contact ABC Financial. ABC Financial repeatedly denied her request for cancellation despite receiving several doctor's notes that complied with ABC Financial's requests as well as California law. Over a year later, ABC Financial still has not cancelled the contract and recently sent her account to collections.
- A consumer who signed up for a two-year contract with monthly payment terms who then received notice from the Navy that she was being transferred. When she notified her health club of the relocation, the club informed her to call ABC Financial. ABC Financial informed her should would have to pay the full balance due on the contract despite her relocation, and refused to cancel her contract.
- A consumer who relocated to another state and continued paying her monthly payments up through the termination date of her contract. Once her contract term ended, ABC Financial continued charging her account pursuant to an automatic renewal term that she was unaware of in her contract.
These are just a few examples of the incidents we have discovered during our investigation. Many consumers are frustrated and confused because they don't know how to proceed, especially when ABC Financial makes it difficult or nearly impossible to cancel their gym membership.
At this time, we are investigating a possible class action lawsuit against ABC Financial. If you feel that ABC Financial has cheated or defrauded you, or has engaged in unfair business practices, please comment below or send us an e-mail and share your story. We will investigate your experience and evaluate whether you may be a proper party to pursue a class action lawsuit.