AG Announces Distribution of $273,000 in Consumer Refunds from Two Central PA Health Club Cases

HARRISBURG - Attorney General Tom Corbett today announced that refund checks totaling $273,278 are in the process of being delivered to more than 1,200 consumers who were unable to use their health club memberships after two central Pennsylvania clubs suddenly closed or changed ownership.

Corbett said the consumer restitution was a major part of consumer protection settlements reached in late June with Leader Health and Fitness, of York, and Planet Fitness - Lancaster, formerly known as Lancaster County Racquetball & Health Club.

Corbett said 1,131 former members of Leader Health and Fitness will be receiving a total of $238,717 to reimburse them for health club memberships and pool memberships, along with fees for summer camps, tanning, personal training sessions and martial arts classes that were unused or cancelled when the club suddenly closed on June 9, 2008.

Corbett said 96 former members of Planet Fitness - Lancaster will be receiving a total of $34,561 to compensate them for facilities that were closed and programs that were cancelled after the club changed ownership.

All consumers covered by these settlements will be receiving notification letters and checks from the Attorney General's Bureau of Consumer Protection.

Corbett explained that consumers do not need to take any additional action in order to receive their restitution payment. The distributions follow a thorough review of all consumer complaints filed with the Attorney General's Bureau of Consumer Protection along with a detailed examination of health club records to identify all consumers who paid for services that were not provided.

"Pennsylvania's Health Club Act and Consumer Protection Laws were created to protect consumers in these situations, and the Attorney General's Office is dedicated to vigorously defending consumer rights," Corbett said. "We appreciate the patience and cooperation of all the people who contacted our office and filed complaints about these health clubs, and we are happy to be able to return this money to consumers and bring these cases to a close."

Corbett said the restitution checks and notification letters are currently being processed. All consumers should receive their refund payments within the next two weeks.

Health Club Act

Corbett explained that Pennsylvania law requires health clubs and gyms to register with the Attorney General's Bureau of Consumer Protection office if they offer contracts of three-months or longer. Additionally, any health club or gym selling memberships lasting more than one-year, or clubs that collect more than one-month of payment in advance, must file a letter of credit or bond with the Attorney General's office. The bond or letter of credit is intended to protect consumers from financial losses if a club closes before their pre-paid memberships have ended.

Corbett said that the state's Health Club Act also allows consumers to cancel their gym or health club contracts in certain situations. Any health club contract can be cancelled within three business days of signing the contract, providing a "cooling off period" for consumers to evaluate the contract and determine if it best suits their needs.

Corbett said that consumers also have the right to cancel health club contracts in other special circumstances:

* If a club closes for more than 30 days and there is no comparable facility available within 10 miles.

* If the consumer moves more than 25 miles from the health club and there is no comparable club available within five miles of their new residence.

* If the consumer sustains an injury, verified by a doctor, which prevents them from using one-third or more of the health club's equipment for six months or longer.

* If a health club closes within 30 days from the start of a consumer's contract.

* If a contract contains terms or conditions that violate the Health Club Act.

When considering a health club or gym membership, Corbett suggested that consumers take the following steps:

* Shop around - compare multiple clubs in your area to be certain that their location, equipment, hours, staff and price best suits your schedule and needs.

* Read all contracts carefully before you sign - take materials home for review before making a commitment.

* Do not give in to high-pressure sales tactics - take as much time as you need to evaluate all of your options.

* Understand exactly what your membership includes, and what additional fees you may be charged for the use of special equipment, facilities, trainers, etc.

* If you are considering a long-term contract, check to see if the club has registered with the Attorney General's Office.

* If you are pre-paying for a contract, verify that the club has posted the required letter-of-credit or security bond with the Attorney General's Office.

* Ask for a tour or complimentary visit to help determine if the club suits your needs.

* Ask current members about their experience.

* Be sure the club has at least one person trained in C-P-R on the premises at all times.

Corbett encouraged consumers with questions about health clubs or complaints regarding health club memberships to contact the Attorney General's Consumer Protection Hotline at 1-800-441-2555 or file an online consumer complaint using the Attorney General's Web site. Detailed information about consumers' rights related to health club memberships is available on the Attorney General's Web site.