World Gym was accused of charging members after shutting down facilities
World Gym has been
accused of charging members
fees after closing down its facilities.
Businesses and organizations that have accidentally charged their customers or clients for work, products or services not performed may receive a number of complaints. It is also possible that some consumers may file a lawsuit against a company in this situation. When dealing with similar disputes, a business owner in Chicago may need the help of a small business lawyer.
Such is the case in Illinois where the Attorney General is suing two owners of local World Gyms – James Mecha and Diane Vassolo – who allegedly shut down their facilities and kept charging their customers fees for use. Attorney General Lisa Madigan claims that the owners made it nearly impossible for gym members to close their accounts and continued billing them after shutting down the gyms, according to CBS Chicago.
Three of these facilities closed without giving members any notice. The owners directed customers to start using World Gyms in other locations, some of which were as far as 22 miles away.
The members who attempted to cancel their membership received no response or were told that cancellation was impossible unless they paid additional fees.
"About 150 people who refused to pay memberships at gyms that no longer existed had their accounts sent to a collection agency," the news source stated. "The lawsuit alleges that with the help of ASF, the gym was able to go on billing and collecting membership fees even though the members were trying to cancel their contracts."
The lawsuit calls for banning World Gym franchises from owning or operating a fitness center and even any Illinois-based business that accepts electronic payments.
Other companies that have found themselves in a similar situation to the owners of the World Gym may need to speak to a Chicago business lawyer.