Has anyone had an experience with this collections agency? Basically, my debit card number expired, and I was issued a new debit card. I changed all my automatic withdrawals, except the gym, Complete flake on my part, not on purpose though. This was in January. I never realized that the money wasn't being deducted from my account, and my gym never notified me of this either.
Well, the other day, I get a call from a collector saying I owed this gym money and to call him. So I call, explain what had happened and told him I would call him back when I got paid to fulfill my debt. I pay $60/mo, so I am thinking Jan-Apr is $240 owed. When I called back to pay, he wanted $1200! Now, I understand penalties and fees, etc, but that is 500% interest! So I called the gym, explained what happened and ask if I can just pay them directly. They said that legally, since they sent to collections, they cannot collect payment from me. I work in billing for an insurance company, and we take payments from insureds who were sent to collections, so I am not sure that this is really a legality.
So they give me the number to the manager at the collections agency to work out a lump payoff amount. I call the manager, he was pretty upset that I called him, and said he couldn't believe the Golds Gym would give me his number. He said he would place me on hold to look up my account, and before I know it, I am transferred to the original rep I spoke to. Needless to say, he was not happy that I called his manager. What followed was a bit shocking to me, as I have never dealt with collections.
All I asked for was a letter with a break down of the charges, and that they are collecting a debt, for my records. He stated "Well, your gym told you to call us, what more proof do you need?". I told him "Please just respect my request, and send this. I am not refusing to pay, I just want this for my records". He told me the break down was in my contract. Well, I don't have my contract, this is a 6 year old contract. So I asked him to send that to me. He doesn't have the contract. Yet they are charging me fees based on this contract that he does not have. He basically said this was stupid. Then he told me "you've already provided me with your routing number, all I have to do is look up your name and we can deduct from your account without your approval". EXCUSE ME? My only response to that was "I will be looking for the letter in the mail, thank you" and I hung up. I was in shock.
I called the gym back, told them I was threatened and I refused to pay the collection agency. All I got from the gym was an "I'm sorry, we can't help you".
Can anyone help me understand what is going on? I get it, I messed up, I want to pay what I owe to the gym. But all I asked for was clarification on where the $1202 is coming from, and I was threatened. And the gym wont accept a payment, so how do I fulfill this debt? I imagine a gym debt on my credit report wont be a hard hit if everything else is good. I would like to know if anyone else has had an experience with this company, that is not listed on BBB and there is no website for them, and he would not provide me with a tax id number either when I asked. SO FRUSTRATING.