There's good news for former members of Curves Health Club. If you showed up to work out one day only to find the facility shut down, you will now get your money back. We are just getting word of the deal from the State Attorney General.
This affects people in 5 local counties.
In 2009, 60 Curves health clubs across 27 counties in New York signed up new members, accepted membership fees, and then suddenly shut their doors. Some did so without providing refunds to their members. Now, Attorney General Eric Schneiderman has secured refunds for those people.
That includes people who signed up at Curves locally in Cortland, Madison, Oneida, Oswego and Wayne counties.
As part of the settlement, Curves International, a multinational health club franchisor, will set up a reimbursement fund for consumers who paid for health club services that were discontinued.
"If you do business in New York, then you have to play by the rules. Curves International - like any franchisor operating in the state - must refund the customers who prepaid for memberships they ultimately could not use," Attorney General Schneiderman said. "My office will continue to ensure that consumers are treated fairly, and I encourage New Yorkers to learn their rights and report offenses to our office so that we can take action."
When independently-owned Curves Health Clubs franchises went out of business, Schneiderman says, Curves International didn't honor its obligation to provide refunds to its customers. The company will now set up a reimbursement fund of up to $100,000 for clients to collect money they lost. The fund will be overseen by the Better Business Bureau. Curves has also agreed to pay an additional $60,000 to the state for the costs of the investigation.
If you think you are entitled to a refund, you should contact the Better Business Bureau at (212) 358-2857. You can file complaints about businesses anytime by contacting the Attorney General's Consumer Helpline at (800) 771-7755.
The AG's office has several tips you should consider before signing on the dotted line for a gym membership. The advice comes as part of National Consumer Protection Week.
Here is some important advice from the AG's office:
*As with any service, consumers should shop around to compare prices, learn about the dues, hours of operations and other amenities. High-pressure tactics are no reason to join a club and should be reported to the Attorney General's office.
*The New York Health Club Services Act protects New Yorkers from unfair sales practices, business and financing methods. Under the law, contracts cannot exceed $3,600 per year, or last for a term longer than 36 months.
*All health club contracts can be cancelled within three days of signing, or if the club stops offering the services listed in the contract, the consumers moves 25 miles away from any health club operated by the seller, and if a doctor orders that the consumer cannot receive the services stated in the contract. Refunds must be provided within 15 days of such a cancellation.
*A need-to-know requirement is that health clubs must file a bond or another type of financial security with the Secretary of State to protect New Yorkers who have prepaid for their members in the event that the club must close. Make sure your club has met this requirement before signing a contract.
For more information about this and other consumer issues, click here.
