Apparently there have been a lot of complaints about Peak Fitness in Asheville and around the state, so much so that the state attorney general took action.
WINSTON-SALEM – Peak Fitness health club has reached an agreement with the North Carolina Attorney General’s Office after the AG received around 300 complaints from customers across the state.
The chain, which operates 28 clubs in North Carolina, agreed to improve customer service and membership contracts and resolve refund requests at its Asheville, Knightdale and Wilmington locations.
The judgment announced Thursday requires Peak Fitness to:
designate a single point of contact to handle all consumer complaints, concerns and questions and post contact information clearly in all Peak Fitness clubs, on all Peak Fitness Web sites, and on all customers’ contracts.
clearly post contact information for Peak’s billing company, ABC Financial, in all Peak Fitness clubs, on all Peak Fitness Web sites, and on all customers’ contracts, and provide a working fax machine in all Peak Fitness clubs for cancellations and correspondence with Peak Fitness.
purchase and maintain appropriate bonds for each health club it operates in North Carolina. Bonds can be used to pay refunds to members if the club shuts down.
not sell memberships to any club more than 180 days before it will open.
notify the AG’d office before entering membership contracts for clubs that have yet to open, purchase a bond of at least $10,000 for the club, and give consumers written notice of their extended three-day right to cancel their contracts.
give advance notice to gym members and the AG’s office when a health club will be closed or when members will be transferred to another location.
provide pro-rated refunds to any customer who purchases or renews a membership to a club that then closes within 90 days.
make sure all membership contracts are fully completed and signed, include a specific time period for the membership measured in years or parts of a year, contain a full statement of consumers’ right to cancel the contract within three days of signing it, and contain a full statement of their right to refunds.
clearly explain that automatic renewal of memberships is optional.
pay pro-rated refunds when members move more than eight miles from the club or more than 30 miles from any Peak Fitness location or are no longer able to use the facilities because of death or disability.
honor lifetime contracts purchased prior to 1980 at health clubs now owned by Peak Fitness. Consumers who allowed their lifetime contract to lapse or otherwise entered a replacement contract with Peak in 2008 have 60 days to contact Peak to get their lifetime contract reinstated.
The Raleigh newspaper has a story here.