New York Gym Membership Billing Fraud Demand Letters
When your New York gym continues charging after cancellation, refuses to honor your cancellation rights, or engages in deceptive billing practices, use this playbook to recover your money under N.Y. Gen. Bus. Law Section 349 and Article 30 Health Club regulations.
Common New York Gym Billing Fraud Scenarios
Fraud Type
Typical Amount
Recovery Likelihood
Charging after cancellation
$200 - $1,500
High - clear GBL 349 violation
Refusing to honor 3-day cancellation right
$100 - $800
High - Article 30 violation
Hidden fees and undisclosed charges
$50 - $500
High - deceptive practices claim
Auto-renewal without proper notice
$200 - $1,000
High - GBL 527 violations
Denying relocation cancellation (25+ miles)
$300 - $2,000
High - Article 30 violation
Why demand letters work in New York
NY Attorney General actively pursues gym fraud cases.
GBL Section 349 provides statutory damages plus attorney fees.
NYC gyms face additional DCWP enforcement and penalties.
Small claims courts are consumer-friendly with low filing fees.
Common gym defenses
"You didn't follow the cancellation procedure" - Article 30 requires gyms to accept certified mail.
"The contract requires 60-day notice" - Cannot exceed 30 days under NY law.
"You signed an auto-renewal agreement" - Must meet GBL 527 disclosure requirements.
"Our contract says no refunds" - Unenforceable if charges were unauthorized.
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. File NY Attorney General complaints promptly.
New York Legal Framework for Gym Billing Disputes
N.Y. Gen. Bus. Law Section 349 - Deceptive Acts and Practices
Broad protection: Prohibits deceptive acts or practices in consumer transactions, including false billing, misrepresentation of cancellation rights, and hidden fees.
Private right of action: Consumers can sue directly without waiting for government enforcement.
Damages: Actual damages or $50 (whichever is greater), plus treble damages up to $1,000 for willful or knowing violations.
Attorney fees: Courts may award reasonable attorney fees to prevailing consumers.
No privity required: You can sue even if you did not deal directly with the party that caused the deception.
N.Y. Gen. Bus. Law Article 30 - Health Club Services
3-day cooling-off period: Right to cancel any health club contract within 3 business days of signing with full refund.
Cancellation by mail: Gyms must accept cancellation by certified mail regardless of contract terms.
Relocation rights: If you move more than 25 miles from the gym, you can cancel with 30 days notice.
Disability cancellation: Medical disability entitles you to cancellation with refund of unused portion.
Contract limits: Health club contracts cannot exceed 36 months.
Bond requirement: Gyms must post a surety bond to protect consumer prepayments.
NYC Consumer Protection Law (NYC Admin Code Section 20)
Additional NYC protections: NYC Administrative Code provides additional consumer protections enforced by the Department of Consumer and Worker Protection.
Civil penalties: Violations can result in penalties up to $500 per violation.
DCWP enforcement: The NYC DCWP investigates complaints and can issue violations directly.
N.Y. Gen. Bus. Law Section 527 - Automatic Renewal
Requires clear and conspicuous disclosure of automatic renewal terms before purchase.
Must provide acknowledgment of renewal terms before charging.
Must provide easy cancellation mechanism.
Failure to comply renders renewal void and charges refundable.
Court
Jurisdiction Limit
Filing Fee
NYC Small Claims Court
$10,000
$15 - $20
Other NY Small Claims
$5,000
$10 - $20
NYC Civil Court
$25,000
$45 - $95
Credit card chargebacks: Under the Fair Credit Billing Act, you can dispute unauthorized charges with your credit card company. New York gyms that charge after cancellation face both chargeback losses and state law liability.
Documentation Checklist
Membership Documents
Original membership agreement and all pages.
Health club registration with NY Secretary of State.
Any amendments or upgrades to membership.
Promotional materials and advertisements from signup.
Cancellation Evidence
Cancellation letter with certified mail receipt (USPS tracking).
Email cancellation requests and responses.
In-person cancellation forms or receipts.
Proof of relocation (new lease, utility bills) if applicable.
Billing Records
Credit card or bank statements showing all gym charges.
Membership fee receipts and invoices.
Documentation of any disputed charges with bank/credit card.
Any refunds or credits 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.
NY Attorney General complaint filing confirmation.
NYC DCWP complaint number (if applicable).
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 gym corporate headquarters and local gym.
Simultaneously dispute charges with your credit card company.
File a complaint with the NY Attorney General Consumer Frauds Bureau.
File a complaint with NYC DCWP (for NYC gyms).
Report to the Better Business Bureau.
Key Letter Elements
Identify the fraud: Clearly describe each unauthorized charge with dates and amounts.
Document cancellation: Reference your certified mail receipt and cancellation date.
Cite NY law violations: Reference GBL Section 349, Article 30, and NYC Consumer Protection Law if applicable.
Calculate damages: List unauthorized charges plus any overdraft fees, and request statutory damages.
Demand specific amount: State the exact refund demanded and deadline for payment.
State consequences: Explain you will file in small claims court and pursue GBL 349 statutory damages.
Escalation Path
Day 1: Send demand letter and credit card dispute.
Day 7: Follow up by email if no response.
Day 14: File NY 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 New York Gym Billing Fraud Demand Letter
[Date]
Via Certified Mail and Email
[Gym Owner/Corporate Office]
[Gym Name]
[Address]
[City, NY 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] located at [Address]. 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 with tracking number/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]
NEW YORK LAW VIOLATIONS
Your continued billing after my cancellation violates multiple New York laws:
1. N.Y. Gen. Bus. Law Section 349 (Deceptive Acts and Practices): Charging a consumer after proper cancellation constitutes a deceptive practice. This statute provides for actual damages plus treble damages up to $1,000 for willful violations, as well as attorney fees.
2. N.Y. Gen. Bus. Law Article 30 (Health Club Services): Your failure to honor my cancellation sent by certified mail and your continued charges violate New York's Health Club Law, which mandates acceptance of written cancellation requests.
3. N.Y. Gen. Bus. Law Section 527 (Automatic Renewal Law): Your failure to provide proper automatic renewal disclosures and easy cancellation methods renders any renewal void.
[If applicable for NYC:] 4. NYC Administrative Code Section 20-700 et seq. (Consumer Protection Law): Your deceptive billing practices violate the NYC Consumer Protection Law, subjecting you to civil penalties of up to $500 per violation in addition to restitution.
DEMAND
I demand that you:
1. Immediately cease all charges to my account;
2. Refund $[Total Amount] representing all unauthorized charges;
3. Pay statutory damages of $[Amount, up to $1,000] under GBL 349; and
4. 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 seeking unauthorized charges plus GBL 349 treble damages;
2. File a formal complaint with the New York State Attorney General Consumer Frauds Bureau;
[If NYC:] 3. File a complaint with the NYC Department of Consumer and Worker Protection;
4. Dispute all charges with my credit card company under the Fair Credit Billing Act; and
5. Pursue all available remedies under New York law, including attorney fees.
I have already disputed these charges with my credit card company and filed a complaint with the NY Attorney General. Your prompt cooperation will avoid further legal action.
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 USPS tracking number proves delivery. Under Article 30, gyms must accept cancellation by certified mail. Print your USPS tracking history showing delivery confirmation and include it with your demand letter.
Yes, if the gym's conduct was willful or knowing. For gym billing fraud, continuing to charge after receiving a cancellation request typically qualifies as willful conduct. Courts can award up to three times your actual damages, capped at $1,000 in additional statutory damages.
Attorney Services & Contact
New York Gym Billing Fraud Resolution
I represent New York consumers seeking refunds from gyms that engage in unauthorized billing, refuse to honor cancellations, or violate GBL 349 and Article 30.
Email owner@terms.law or use Calendly for a paid strategy session.