Keep Your Finances in Shape Gym and Fitness Memberships
If your New Year resolutions included getting fit, take these simple steps before signing up for a gym or fitness membership.
Consider:
- your fitness goals, what you can afford and the type of membership that will suit you
- the location and facilities - take the time to tour several centres, try it out on a ‘pay-as-you-go’ basis, to see if it meets your needs
- paying monthly, avoid paying large amounts up-front or signing long-term contacts which can be risky.
Ask the gym
What are the terms of the introductory offer or ‘free’ trial?
Special offers are often used to attract new members. For example, a gym may offer ‘free’ use of facilities for two weeks - but only if you join as a member for three months.
Make sure you understand the terms of the introductory offer, including:
- when the offer will end
- what services you can use during the period
- whether you will automatically switch to an ongoing membership price at the end of the period.
If there is no promotion running, ask if there are any value adding benefits that can be offered to new customers - this is often negotiated.
Will my membership renew automatically?
Most memberships automatically renew without notice, the fees will continue to be drawn from your account if you have agreed to direct debit.
A fitness centre must:
- give you a choice when you first sign up, whether you want your membership to automatically renew. If you do not want this, your membership should automatically terminate at the end of the minimum term.
- make it clear on the application form that you have this choice.
- send you a reminder that your membership will automatically renew prior to expiring, giving you enough time to give notice if you do not wish to renew.
Can I get out of my contract?
There is usually a cancellation fee and you will need to give notice. The fee must be reasonable and you should not have to pay out the contract.
Always put any notice you give in writing and keep a copy. This record will be important if you are in dispute.
What will happen if my direct debit payment bounces?
Find out before hand what fees you will have to pay if a transaction fails. You may have to pay fees to the fitness centre and your bank or financial institution.
For information about making direct debit, visit the Australian Securities and Investments Commission’s MoneySmart website.
What happens if I move?
Do not assume you will be able to use another centre or get out of your contract if you move to a different area. Ask about their policy before you join.
Can I suspend my membership?
Unless it is in the contact, a gym or fitness centre is not required to allow members to suspend membership for holidays or illness.
Further information
Contact Consumer Affairs Victoria on 1300 55 81 81 or visit their website.