What are my leagal options when a company charges more than the contracted amount and does that void the contract?

I resently realized that Golds gym has been charging me $12 per month more than the contracted amount for thirteen mos of my 14 mo contract. After numerous attempts to get the situation resolved, we were told that they had no record of this overcharge and that we would have to show proof. We attained our bank records at a cost of $70 and showed Gold's a copy of our records and our contract and they have refused to return our money. We have been talking to Gold's people for about 3 weeks now from store managers to corperate office and finally have decided to cancel our debit cards with the bank so that Gold's could no longer take our money. Our innitial contract is up, but it does state that we must give 45 days notice of cancelation even after the contract expires which we will not meet.
Answer this question Add to list

Answers (1)

Kennard Neal Friedman

Kennard Neal Friedman

Contributor Level 5
Dear Overpaying:

You have raised a question of contract law and, possibly, statutory law. I can give you a big picture view of the issues an attorney might consider. For legal advice, you will need to contact an attorney. You can find attorneys through the Wisconsin Bar Association Lawyer Referral and Information Service (see link below).

Contract Law: If I understand, you are claiming contract damages of $156 ($12 x 13 months). You could sue in small claims court for your damages and, if you win, recover your $70 costs and the filing fees. If you lose, you may have to pay Gold's costs.

There is a contract law principle that some breaches of contract release the non-breaching party. These are called material breaches. It may be that refusing to return funds that are yours is a material breach. If this is the case, you are not required to continue your membership.

Contract questions are very fact intensive, so you need to talk with an attorney.

When you talk with an attorney, you should ask whether there may have been a violation of Wis. Stats 100.18 ("False advertising" because they told you one price, but charged another). If you can prove this, you can recover your attorney fees for small claims court. You should also ask if there may have been a violation of Wis. Stats. 943.20(1). ("theft" because they took your money wrongfully and/or held it after you asked for it back). If there was a violation of 943.20, you could get attorneys fees and up to three times your loss of $156).

The big picture would not be complete without noticing that you are pursuing a small amount of money on the principle of the thing. Attorney fees will certainly be more than your loss. You should consider the size of the loss, the dollar cost to get justice, your time and your emotional involvement during the six or eight weeks the case will go on.

Good luck.
0 0
Back to Search Results

Ask a Question

Get free answers from real lawyers.