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Gym Contracts:
Members have more rights to cancel their contracts and get a refund (Civil Code 1812.80-1812.97)
This new law lets gym members cancel their contracts and get prorated refunds, even if their initial right to cancel expired.
The law used to require that gym contracts be no longer than 1 year, or more than $1,000. Gyms were also required to give customers at least 3 days to cancel the contract without any charges.
Gym contracts can now be for up to 3 years (starting 2010, they can be up to 4 years). If the contract is up to 3-years long, it can be for as much as $3,000.
If the contract is for $1,000 or less, the customer has 3 days to cancel it without any charges. If the contract is more than $1,000, the customer has 5 days to cancel it without any charges.
If the contract is for $1,500 or more, the customer can still cancel it after the 5-day right to cancel has expired, and be charged only a prorated amount based on the days he kept it.
The following amounts and time frames apply: If the contract is for $1,500 to $2,000, it may be cancelled within 20 days; contracts for more than $2,000, but no more than $2,500 may be cancelled within 30 days; and contracts over $2,500 may be cancelled within 45 days.
Example: Suppose Sue signs a gym contract on January 3, 2006 for 3 years, and agrees to pay a total of $3,000. Sue then changes her mind and cancels her contract on February 8, 2006. She has the right to do this, and the gym can only charge her for the 37 days she kept it. Since the contract was for 3 years (1,095 days) and $3,000, the gym can charge Sue $2.90 per day, or $107.30 for the 37 days.
Action: DCA’s Consumer Services Unit takes complaints against gyms that don’t follow the law.
For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
web site: dca.lacounty.gov