General division case study

A young woman entered into a 6-month gym membership at her local fitness centre, and signed a direct debit authority for the fees to be deducted monthly.  At the end of the 6 months the woman chose not to renew her membership, believing that was the end of the matter.

However the fitness centre continued to deduct a monthly fee from her bank account.  When she rang the fitness centre to complain, they stated that her contract was ongoing.  They also explained that she needed to provide the fitness centre with 1-month's notice to cancel her membership and that a cancellation fee was payable.

The woman made an application to the CTTT seeking orders for a refund of overpaid membership fees debited from her account after the expiration of the membership.

At the CTTT hearing, the fitness centre gave evidence that the woman was informed a number of times of the gym membership conditions, including the cancellation policy.  The Tribunal Member found that the gym membership contract clearly states that it expired after 6 months and that there was nothing in the membership terms to provide that the membership was ongoing nor any details as to the cancellation policy.  The Member found that the woman was not liable for any fees beyond the term of her membership and made orders for a refund of the fees charged beyond the term of the membership.