Expert: Chris Ebert - 9/2/2009

Question
I entered a 2-yr contract with a gym here in Texas while I was a minor (17yo). I was laid off from my job that same month (Dec. 2008) so, of course, I couldn't continue to pay it unless I got a job. The monthly payment was automatically drafted from my account as agreed in the said contract. It took payments from Dec 2008 to March 2009. I had tried to cancel the contract, essentially repudiate it, and I was going to have to catch up on what I owed plus a cancellation fee. It has since been turned over to an attorney to collect from me. First off, he was very rude and he never identified himself when answering the phone. He treated me as if I were a piece of scum that repeatedly takes out loans and refuses to pay them. When I asked him what I was supposed to do since I don't have a job, he answered, "I don't know, I ain't a psychic!" He never told me my options or tried to help work something out other than he told me I had to pay a minimum of $100/month (the amount he is trying to collect is $532). I called him back the next day, again, he never identified himself, and told him that I was a minor so it was a void contract. He said I acknowledged the contract as an adult by paying the gym after I turned 18 and that no judge in the country would rule in my favor. I told him to pursue my debt however he wanted because I wasn't going to pay anything and the he just hung up on me. I did some research and read what he said about the contract being ratified since I payed on it as an adult, but read that a judge might allow a few months "grace" between the last date of infancy and the date that the contract was repudiated. Also, I only agreed to the payments as a minor, they were automatically drafted from my account after I turned 18 so I don't acknowledge making payments as an adult, especially since I asked to terminate the (void) contract. Now that I've told my life story, my question is, what can I do to prevent or fix my credit after they will, undoubtedly, screw it up? And do I have enough to file a grievance with the State Bar of North Carolina against the attorney collecting my debt? Any other details you could give me about the law and anything else that pertains to my case would be greatly appreciated. Thank you so much for your time! And I'm terribly sorry about how long this is.

Answer
Evan,

As a matter of protocol I would dispute the amount of the debt to figure out how they came to the amount of $532. It also has a cease and desist in there so they do not call you again. I have a form to do that on the bottom link.

Second, I have heard that the most effective way to end a fitness contract is to move or claim to move more than xx miles away from their gyms. It is usually stipulate in the contract.

Finally, if you want to settle with them, then offer 50% or so for release. Better yet, go back to the gym that you signed up with and complain about your treatment from the collector. Several people I know have complained to the main creditor about treatment from the collector and let out of the contract.

http://www.henleycreditlaw.com/diy-credit-repair/

I wish you the best of luck and if you have any other questions, feel free to ask.