Gym Membership Query

Anonymous Deflector

Hi,

I've recently moved to a new area and there is only one Gym. They are only offering two membership options:
Annual (€600eur)
Monthly DD (€56 p/m)

Ideally I would like to pay it all up front and get it out of the way but with rent etc I just don't have that kind of cash spare. I have offered to pay the monthly charge with cash, however they refused saying I must set up a Direct Debit. I don't have a bank account as I use a credit union who unfortunately don't have DD capabilities.

Are the Gym allowed to insist on a Direct Debit? I don't see why I should have to have a bank account to use their service, or are they covering themselves with the Annual Payment option?

homer911

I think you need a proper current account..

Sulla Felix

They can ask for payment in penny jellies if they want. At the end of the day though, you don't have to pay them that.

Anonymous Deflector

Sulla Felix wrote: »

They can ask for payment in penny jellies if they want. At the end of the day though, you don't have to pay them that.

I know you were probably joking but a company has to accept cash as payment. My question is are they covering themselves with the annual payment option or would they have to accept cash for the monthly amount also.

Sulla Felix

It has to accept cash as payment of a debt. There is no debt here.
You wish to enter into a contract with them for the use of their services. If they stipulate as part of that contract that they want to be paid in penny jellies on a monthly basis, then you have two choices, pay them their jelly beans on a monthly basis, or not enter into contract with them.

dudara

Anonymous Deflector wrote: »

I know you were probably joking but a company has to accept cash as payment.

They do not have to accept cash. It is their service and they can outline the methods of payment.

From a business perspective, handling cash is riskier, plus there are additional steps required when logging cash receipts in whatever system they use.

Anonymous Deflector

Thanks for your replies.

I will set up a RABO Direct savings account, these allow standing orders so I expect this will work.

Paulw

Anonymous Deflector wrote: »

Thanks for your replies.

I will set up a RABO Direct savings account, these allow standing orders so I expect this will work.

Make sure Rabo allow Direct Debits .... which are different from standing orders.

Anonymous Deflector

Paulw wrote: »

Make sure Rabo allow Direct Debits .... which are different from standing orders.

Rabo only allow SO's, assume this is what the gym will use as it's the same amount each month, I'll check with them anyway. I should have wrote SO's above and not DD's. Always manage to get the two confused

Paulw

No, the gym will require Direct Debit, not Standing Order. In this case, Rabo will not be good enough for what the gym requires.

DD - the company make a demand for payment. The amount may vary or it may be the same. Your bank then pay the requested amount, since you have agreed to pay by direct debit.

SO - You send the same amount every month to a company. No demand for payment is involved.

Caliden

dudara wrote: »

They do not have to accept cash. It is their service and they can outline the methods of payment.

From a business perspective, handling cash is riskier, plus there are additional steps required when logging cash receipts in whatever system they use.

Not just that but if you're paying cash monthly, there's nothing stopping you from quitting after 3 months whereas a 12 month contract has a DD attached and if you paid the full amount up front, there's no need for additional payments.

emeldc

Anonymous Deflector wrote: »

I know you were probably joking but a company has to accept cash as payment.

Even our local Bank wont accept cash on Wednesday's & Friday's :rolleyes:

L1011

You don't have a bank account, yet are willing to set one up and opted for a savings account? Why?