Texas Gym Membership Billing Fraud Demand Letters

Fight back against unauthorized gym charges, cancellation obstruction, and deceptive billing practices in Texas. Use the Texas Deceptive Trade Practices Act (DTPA) to recover up to 3x damages in Justice Court claims up to $20,000.

Common Texas Gym Billing Fraud Issues
Fraud Type DTPA Violation Typical Damages
Unauthorized recurring charges after cancellation Section 17.46(b)(5) - misrepresenting services $200 - $2,000+
Hidden enrollment or annual fees Section 17.46(b)(24) - failure to disclose $50 - $500
Cancellation obstruction or impossible procedures Section 17.46(b)(12) - unconscionable conduct $300 - $1,500
Bait-and-switch pricing Section 17.46(b)(9) - advertising false prices $100 - $1,000
Fraudulent auto-renewal without consent Section 17.46(b)(7) - false representations $200 - $2,500

Why Texas DTPA Claims Are Powerful

  • Up to 3x damages for knowing or intentional violations.
  • Mandatory attorney fees awarded to prevailing consumers.
  • $20,000 Justice Court limit - higher than most states.
  • No minimum damage requirement for DTPA claims.

Texas Health Spa Act Protections

  • 3-day right to cancel new gym contracts (Tex. Occ. Code 702).
  • Contract must be in writing with specific disclosures.
  • Gyms must register with Texas Secretary of State.
  • Bond requirements protect consumer deposits.
60-Day DTPA Notice Required: Before filing a DTPA lawsuit in Texas, you must send a written demand letter at least 60 days before filing suit. This letter must describe your complaint, economic damages, and relief sought. Failure to send proper notice can limit your damages.
Documentation Checklist

Contract Documents

  • Signed membership agreement (all pages).
  • Terms and conditions or member handbook.
  • Cancellation policy documentation.
  • Auto-renewal disclosures provided at signup.
  • Any written amendments or changes to terms.

Payment Evidence

  • Bank statements showing all gym charges.
  • Credit card statements with transaction dates.
  • Receipts for payments made.
  • Evidence of unauthorized charges after cancellation.
  • Total amount of disputed charges calculated.
Communication Records
  • Written cancellation requests (emails, letters, forms).
  • Gym responses to cancellation or refund requests.
  • Text messages with gym staff.
  • Notes from phone calls (date, time, who you spoke with, what was said).
  • Certified mail receipts for cancellation letters.
Additional Evidence
  • Screenshots of gym website pricing and terms.
  • Marketing materials or promotional offers you relied on.
  • Photographs of posted gym policies.
  • Statements from other members with similar experiences.
  • Better Business Bureau complaints about the gym.
Create a Timeline: Document every interaction chronologically, from signup through the current dispute. Include the date you signed up, all charges made, when you requested cancellation, gym responses, and any continued billing. This timeline becomes the factual backbone of your demand letter.
Demand Letter Strategy for Texas
DTPA 60-Day Notice Requirements
  • Send at least 60 days before filing lawsuit.
  • Must identify the specific complaint in reasonable detail.
  • Must state the amount of economic damages claimed.
  • Must state the amount of attorney fees claimed (if any).
  • Must describe any other damages or relief sought.
  • Send via certified mail, return receipt requested.
Letter Components
  1. Header: Mark as "NOTICE PURSUANT TO TEX. BUS. & COM. CODE SECTION 17.505"
  2. Identification: Your name, address, gym name, membership details.
  3. Factual Background: When you joined, what you were promised, what charges were made.
  4. DTPA Violations: Cite specific subsections of 17.46(b) that apply.
  5. Economic Damages: Itemize all unauthorized charges and losses.
  6. Demand: Specify the total amount demanded and deadline (60+ days).
  7. Consequences: State you will file suit in Justice Court if not resolved.
Settlement Considerations
  • Under DTPA 17.5052, if the gym makes a written settlement offer within 60 days, your damages may be limited if you reject a reasonable offer and recover less at trial.
  • Consider accepting reasonable settlement offers to avoid trial risk.
  • Settlement offers must be in writing to affect damage calculations.
Proper Service is Critical: Send your demand letter to the gym's registered agent for service of process (searchable at Texas Secretary of State website) or to the business address. Keep certified mail receipts as proof of delivery.
Sample Texas Gym Billing Fraud Demand Letter
[Date] Via Certified Mail, Return Receipt Requested [Gym Name] [Gym Address] [City, Texas ZIP] Re: NOTICE PURSUANT TO TEX. BUS. & COM. CODE SECTION 17.505 60-Day Pre-Suit Demand - DTPA Violations Member: [Your Name] Account Number: [If known] Amount Demanded: $[Total Amount] Dear [Gym Owner/Manager]: This letter constitutes formal notice pursuant to the Texas Deceptive Trade Practices-Consumer Protection Act, Tex. Bus. & Com. Code Section 17.505, that [Gym Name] has engaged in deceptive trade practices in connection with my gym membership. I hereby demand payment of $[Amount] within sixty (60) days of your receipt of this letter. BACKGROUND On [Date], I enrolled in a membership at [Gym Name] located at [Address]. I was quoted a monthly rate of $[Amount] with [describe any other terms: no enrollment fee, cancel anytime, etc.]. DECEPTIVE TRADE PRACTICES Your gym has violated the Texas DTPA through the following conduct: 1. UNAUTHORIZED CHARGES (Section 17.46(b)(5)): On [Date], I submitted a written cancellation request [describe method: in person, certified mail, email]. Despite proper cancellation, your gym has continued to charge my [bank account/credit card] in the amounts of: - [Date]: $[Amount] - [Date]: $[Amount] - [Date]: $[Amount] Total unauthorized charges: $[Amount] 2. FAILURE TO DISCLOSE (Section 17.46(b)(24)): At the time of enrollment, your staff failed to disclose [hidden fees, cancellation requirements, auto-renewal terms, etc.]. 3. [Add other violations as applicable] These practices constitute violations of Tex. Bus. & Com. Code Section 17.46(b)(5), (7), (12), and (24), and are actionable under Section 17.50. ECONOMIC DAMAGES I have suffered the following economic damages: - Unauthorized charges after cancellation: $[Amount] - [Hidden/undisclosed fees]: $[Amount] - Bank overdraft fees caused by unauthorized charges: $[Amount] - [Other damages]: $[Amount] TOTAL ECONOMIC DAMAGES: $[Amount] Under Tex. Bus. & Com. Code Section 17.50(b)(1), because your conduct was committed knowingly [or intentionally], I am entitled to recover up to three times my economic damages, plus court costs and reasonable attorney's fees. DEMAND I demand that [Gym Name]: 1. Immediately cease all charges to my account; 2. Refund all unauthorized charges totaling $[Amount]; 3. Remove any negative credit reporting related to this account; 4. Confirm in writing that my membership is cancelled with no further obligations. RESPONSE REQUIRED You have sixty (60) days from receipt of this letter to respond with a written settlement offer addressing my damages. Pursuant to Tex. Bus. & Com. Code Section 17.505(d), I will provide you the opportunity to inspect and review any documents or evidence upon which my claim is based. If you fail to resolve this matter within 60 days, I will file suit in [County] Justice Court seeking actual damages, treble damages for knowing violations, court costs, and attorney's fees. I will also file complaints with: - Texas Attorney General Consumer Protection Division - Better Business Bureau - Texas Secretary of State (Health Spa Act violations) I remain willing to resolve this matter without litigation if you act promptly and in good faith. Sincerely, [Your Name] [Your Address] [Your Phone] [Your Email] Enclosures: - Copy of membership agreement - Bank/credit card statements showing disputed charges - Cancellation request documentation - Timeline of events
Under DTPA Section 17.5052, if the gym makes a reasonable written settlement offer within 60 days and you reject it, your damages at trial may be limited if you don't recover more than the offer. Carefully evaluate any settlement offer before rejecting it. Consider whether the offer covers your actual damages and whether trial risk is worth potential treble damages.
Yes. Texas Justice Courts are designed for self-represented litigants. The process is informal, and judges are accustomed to helping pro se parties understand procedures. For straightforward gym billing disputes under $20,000, Justice Court is an excellent option. However, complex DTPA claims seeking treble damages may benefit from attorney representation.
Yes. File credit card chargebacks or bank disputes for unauthorized charges while pursuing your DTPA claim. Under federal law (FCBA), you have 60 days from each billing statement to dispute charges. Banks can reverse unauthorized charges faster than litigation, though the gym may try to collect through other means.
Attorney Services & Contact

Texas Gym Billing Fraud Recovery

I help Texas consumers fight gym billing fraud through DTPA demand letters, Justice Court litigation, and negotiated settlements. From unauthorized charges to cancellation obstruction, I pursue full refunds and statutory damages.

Email owner@terms.law or use Calendly for a paid strategy session.

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Services

  • DTPA 60-day demand letter drafting.
  • Settlement negotiation with gym management.
  • Justice Court representation for claims up to $20,000.
  • Consumer protection agency complaint filing.
  • Credit card dispute assistance.

Pricing

📄
Demand Letter
$450 flat fee
Extended Negotiation
$240/hour
📈
Contingency (Strong Claims)
33-40%