Class action: Coast law firm takes on gyms 'duping' lazy members
HAVEN'T used the gym lately that you signed up for last year? A high profile Sunshine Coast law firm is looking for you to pursue class action against the big gym companies.
Kyle Kimball, director of Sajen Legal, said the law firm was looking to pursue a class action against gyms which continued to deduct membership fees off lapsed members.
He called on anyone who had been "duped by the gyms into paying for something that has lapsed" to contact his office.
While Sajen Legal's head office was based in Maroochydore, the class action would look for people nationwide.
Mr Kimball said a close insider in the gym industry was providing detailed information on how some large companies relied on people's good intentions to sign up for annual memberships knowing they wouldn't use them.
"These organisations went out of their way to avoid reminding members of their expiry of their membership, thus avoiding any chance of 'waking the dead'."
Mr Kimball said "waking the dead" was a term used in the industry to describe the contacting of old members reminding them of the right to cancel their membership.
"Hundreds of people join the gym at the beginning of the year and then give up going a few months into it and forget to check when their annual fee has expired," he said.
"We believe many gyms are not reminding people their annual membership is due for renewal and simply continue billing these fees.
"We are looking at a class action to take this on."
Mr Kimball said gyms were bound by the Australian Consumer Law to remind members when their membership was due for renewal.
"Many gyms business model work on extracting money from people when they know full well the service they are offering is unlikely to be used," he said.
"These businesses need to be taken to task for this.
"The industry knows people don't use their gym membership. Imagine if they 2000 people who signed up for a gym membership actually turned up."
He made it clear not all gyms operated under a model where annual membership fees were deducted from their bank account on a regular basis.
"Anyone who believes they have been duped by the gyms into paying for something that has lapsed should email our office at mail@sajenlegal.com.au"," Mr Kimball said.