When your gym continues charging you after cancellation, enrolls you without consent, or engages in deceptive billing practices, use this playbook to recover your money through demand letters and legal action.
Common Gym Billing Fraud Scenarios
Fraud Type
Typical Amount
Recovery Likelihood
Charging after cancellation
$200 - $1,500
High - clear unauthorized charges
Hidden fees and undisclosed charges
$50 - $500
High - contract disclosure violations
Refusing to honor cancellation
$300 - $2,000
High - state law violations
Auto-renewal without proper notice
$200 - $800
High - automatic renewal law violations
Charging during facility closures
$100 - $600
Medium-High - services not rendered
Why demand letters work for gym disputes
Gyms want to avoid state attorney general complaints.
Credit card disputes often favor consumers for unauthorized charges.
Small claims court is highly effective for membership disputes.
Consumer protection laws provide statutory penalties that increase exposure.
Common gym defenses
"You didn't follow the cancellation procedure" - counter with state law requirements.
"The contract requires 30-day notice" - may be unenforceable under state law.
"You signed an auto-renewal agreement" - requires proper disclosure under state law.
"We never received your cancellation" - certified mail creates proof.
Act quickly: Dispute unauthorized charges with your credit card company within 60 days of the statement date. Send a demand letter within 30 days of the first unauthorized charge to preserve your rights.
Legal Framework for Gym Billing Disputes
State Gym Membership Laws
Health Club Acts: Most states have specific laws regulating gym memberships, including cancellation rights, contract disclosure requirements, and prohibited practices.
Cooling-off periods: Many states require gyms to allow cancellation within 3-5 business days of signing with a full refund.
Cancellation by mail: Several states require gyms to accept cancellation by certified mail, regardless of contract terms.
Relocation rights: Most states allow cancellation without penalty if you move more than 25 miles from the facility.
Automatic Renewal Laws
California's Automatic Renewal Law (Business & Professions Code 17600-17606) requires clear disclosure and easy cancellation methods.
FTC guidelines require clear disclosure of automatic renewal terms before purchase.
Many states require written confirmation of auto-renewal terms and advance notice before each renewal.
Failure to comply with auto-renewal laws often voids the renewal obligation entirely.
Consumer Protection Remedies
State
Consumer Protection Statute
Potential Damages
California
CLRA, UCL, Auto-Renewal Law
Actual damages + $2,500 per violation
New York
GBL 349-350, Health Club Law
Actual damages + $1,000 statutory
Texas
DTPA, Health Spa Act
Up to 3x actual damages
Florida
FDUTPA, Health Studio Act
Actual damages + attorney fees
Illinois
Consumer Fraud Act, Physical Fitness Act
Actual damages + $50,000 penalties
Credit card chargebacks: Under the Fair Credit Billing Act, you can dispute unauthorized charges. If the gym charged you after cancellation or for services not provided, your credit card company must investigate and may reverse the charges.
Documentation Checklist
Membership Documents
Original membership agreement and all pages.
Any amendments or upgrades to membership.
Promotional materials and advertisements from signup.
Gym rules, policies, and fee schedules.
Cancellation Evidence
Cancellation letter with certified mail receipt.
Email cancellation requests and responses.
In-person cancellation forms or receipts.
Phone call records and notes.
Billing Records
Credit card or bank statements showing all gym charges.
Membership fee receipts and invoices.
Documentation of any disputed charges.
Credit card dispute correspondence.
Any refund or credit issued by the gym.
Communication Records
All emails with gym staff about billing issues.
Text messages and social media communications.
Notes from phone conversations with dates and representative names.
Complaints filed with Better Business Bureau or state agencies.
Create a billing timeline: Document every charge, every communication, and every cancellation attempt with specific dates. This timeline will be the foundation of your demand letter and any small claims case.
Demand Letter Strategy
Multi-Channel Approach
Send demand letter via certified mail to corporate headquarters and local gym.
Simultaneously dispute charges with your credit card company.
File a complaint with your state attorney general's consumer protection division.
Report to the Better Business Bureau for additional pressure.
Key Letter Elements
Identify the fraud: Clearly describe each unauthorized charge with dates and amounts.
Document cancellation: Prove you cancelled and when, referencing your certified mail receipt.
Cite legal violations: Reference your state's health club law and consumer protection statutes.
Calculate damages: List unauthorized charges plus any overdraft fees or other consequential damages.
Demand specific amount: State the exact refund demanded and deadline for payment.
State consequences: Explain you will file in small claims court and report to regulators.
Escalation Path
Day 1: Send demand letter and credit card dispute.
Day 7: Follow up by email if no response.
Day 14: File state attorney general complaint.
Day 21: File small claims court case if unresolved.
Stop automatic payments: Contact your bank or credit card company to block future charges from the gym. Request a new card number if necessary. This prevents additional unauthorized charges while you pursue recovery.
Sample Gym Billing Fraud Demand Letter
[Date]
Via Certified Mail and Email
[Gym Owner/Corporate Office]
[Gym Name]
[Address]
[City, State ZIP]
Re: Demand for Refund of Unauthorized Charges
Member Account: [Your Account Number]
Amount Due: $[Total Amount]
Dear [Gym Manager/Owner]:
I am writing to demand the immediate refund of $[Amount] in unauthorized charges billed to my account after I cancelled my membership with [Gym Name].
BACKGROUND
On [Membership Start Date], I enrolled in a membership at [Gym Name]. On [Cancellation Date], I cancelled my membership by [method: certified letter/in-person/email]. I have attached proof of this cancellation, including [certified mail receipt/cancellation form/email confirmation].
Despite my cancellation, [Gym Name] has continued to charge my [credit card/bank account] as follows:
[Date] - $[Amount]
[Date] - $[Amount]
[Date] - $[Amount]
Total Unauthorized Charges: $[Total]
LEGAL VIOLATIONS
Your continued billing after my cancellation violates:
1. [State] Health Club Act, which requires gyms to honor written cancellation requests and cease billing within [X] days.
2. [State] Consumer Protection Act ([cite specific statute]), which prohibits unfair and deceptive business practices including unauthorized billing.
3. The Fair Credit Billing Act, which makes unauthorized charges disputable and subjects you to liability.
[If applicable: Your failure to provide proper automatic renewal disclosures as required by [State] Automatic Renewal Law renders the renewal void and all renewal charges unauthorized.]
DEMAND
I demand that you:
1. Immediately cease all charges to my account;
2. Refund $[Total Amount] representing all unauthorized charges; and
3. Confirm cancellation of my membership in writing.
Payment must be received within fourteen (14) days of this letter. Refund should be made by [check mailed to address below / credit to original payment method].
If I do not receive full payment by [Deadline Date], I will:
1. File a claim in [County] Small Claims Court for unauthorized charges plus statutory damages;
2. Report this matter to the [State] Attorney General Consumer Protection Division;
3. Pursue all available remedies under [State]'s Consumer Protection Act, which provides for [statutory damages/treble damages/attorney fees]; and
4. File a formal complaint with the Better Business Bureau.
I have already disputed these charges with my credit card company. Your cooperation will avoid further legal action and regulatory complaints.
Sincerely,
[Your Name]
[Your Address]
[Your Email]
[Your Phone]
Enclosures:
- Membership agreement dated [Date]
- Cancellation letter and certified mail receipt dated [Date]
- Credit card/bank statements showing unauthorized charges
- Prior correspondence regarding billing dispute
If you sent cancellation by certified mail, the tracking number proves delivery. If you cancelled in person or by email, provide the date and any confirmation. Under many state laws, the gym bears the burden of proving proper receipt and processing of cancellations.
No. Stop automatic payments immediately. You are not obligated to pay unauthorized charges. If the gym reports to collections, you can dispute the debt and provide your documentation showing the charges were unauthorized.
Attorney Services & Contact
Gym Billing Fraud Resolution
I represent consumers seeking refunds from gyms that engage in unauthorized billing, refuse to honor cancellations, or violate automatic renewal laws.
Email owner@terms.law or use Calendly for a paid strategy session.