Aspen Athletic Club sold contracts to Gold’s Gym without any notification to its members

Without notice, in late 2011 Aspen Athletic Club in Oklahoma City’s Penn Square Mall closed its doors, and without the knowledge of its members, membership contracts were sold to a nearby Gold’s Gym location. Shortly after, members discovered that another entity had access to and debited their checking accounts.

 In response, one state lawmaker is seeking protections for consumers who were jilted in the transfer of their contracts.

“It came to my attention that some businesses are not adhering to the most basic of practices, and that there’s not much on the books to protect consumers when this occurs,” said Rep. Emily Virgin, D-Norman.

 According to the law, when Aspen management sold contracts to Gold’s Gym, they were supposed to give their members a 30-day notice to provide the opportunity for members to change or cancel their memberships. However, shortly after Aspen signed its agreement with Gold’s Gym, it closed its doors and placed a sign redirecting members to Gold’s.

 Members did not receive notices of new ownership and the change of location — they only became aware of this closing when they attempted to enter the Aspen gym to find the doors locked and the lights off, or when they discovered an unfamiliar charge on their bank statement.

 One member of the Aspen Athletic Club was hit with two month’s of fees from Gold’s Gym. After many calls from him and a legislator’s office, he was finally reimbursed, but only for one month of membership.

Rep. Virgin stated she was appalled to learn that a company would act so irresponsibly towards its paying customers, and has filed an amendment to Senate Bill 1497 to address the issue.

 “Aspen sold these contracts to Gold’s Gym without any notification to its members,” Virgin said. “My amendment will require the seller to notify the contract holders within 30 days through certified mail about the sale, and if they fail to do this, the member will be entitled to a penalty-free cancellation of their contract. In addition, my amendment will require that the new owner obtain re-authorization from the member to continue to collect automatic bank draft deductions. If they do not, the contract can be cancelled and the gym will be obligated to refund to the buyer any funds drafted after the change of ownership and relocation.”

 Senate Bill 1497 is currently eligible to be heard in the House chamber.