Story Published:
Mar 12, 2001 at 3:50 PM PST
Story Updated:
Aug 30, 2006 at 11:27 PM PST
BELLEVUE - A shock for the 4,000 members of the Gold's Gym in Bellevue. Without warning, members arrived at the gym Monday to find that the doors were locked and their pricey memberships appear to be worthless.
Instead members were greeted by a sign saying the exercise equipment now belongs to Wells Fargo Bank.
But it's not the sudden closure that irks some members. It's the way the company handled the membership fees. "They had people here the day they were closing they were selling memberships to, cash only," said Member Mitch Wright.
Members Suspicious
An attorney representing the owners confirmed that a few memberships were sold on Friday, before word of the closure reached the staff. He assured KOMO 4 News that those people will be paid back. But people who paid before Friday's decision to close are out of luck. He says their membership money also belongs to the bank.
Some of the locked out members call that suspicious. Erika Owen says she's lucky she didn't re-sign just days ago.
"Mine is getting ready to expire," she said. "But I was asked last week to renew. Had I had my checkbook with me I would've done that and would be out another two years of membership fees."
Unfair Business Practices?
The state attorney general's office says the gym might have used unfair and deceptive business practices by taking money if the owners knew they'd be shutting down. The state wants to hear from gym members -- and might be able to help get their money back.
The Gold's Gym in Bothell is run by a separate owner. He advises people to only pay membership fees by the month -- and just because of a great deal never sign up for a year.
"I would say don't do it," said Bothell owner John Hamilton. "Because if they're offering that incentive, there's a reason for it -- they need that money now, today. Whereas if they're running that business properly and managing it correctly, you're in a much better position as an operator to have that money coming in each month than to be paid in full."
"It's like if you get your paycheck for the year in advance," he continued. "Even if you budget, probably by the last couple months of the year, you're gonna be short."
State Wants To Hear From You
A flyer on the Bellevue Gold's informs members that Washington law says they're entitled to a refund. But the company claims it doesn't have money for a refund now, and doesn't expect to have it later.
However, the attorney for the owners says the company plans to open a new gym soon. He says they will honor anyone's contract from any gym -- not just the members left in the cold by Monday's sudden closure.
Still, the Washington Attorney General's Office wants to hear from gym members who think they've been cheated. You can call the Consumer Protection Hotline at 1-800-551-4636. Or, file a complaint online by going to the AG's Web site at www.wa.gov/ago.