Nz Trade Me

Gym junkies angry over contracts

Upset gym-goers who believe they were misled when signing up to gym contracts are applauding the Commerce Commission's warning shot to the industry over its practices.

The competition watchdog yesterday said many gyms were breaking the Consumer Contracts and Consumer Finance Act and face court fines of up to $30,000 if they don't shape up.

At the heart of the commission's concerns were gym contracts paid by instalment and subject to fees or interest - known as consumer credit contracts.

Its investigations revealed many gyms failed to advise customers of their statutory right to cancel the contract, and when a client signed up, failed to disclose the full membership cost of the minimum period.

Former gym enthusiast Hayley Young said she was only 17 when she signed up for her gym membership, and wasn't told that she would be liable to pay for a mandatory contract period of two years.

Ms Young lost her job and couldn't afford to carry on paying for the rest of her contract term but was told she didn't have much of a choice.

"They took me to the debt collectors for about $3000. I was very upset by it all."

Gym-goer Justin Cook was angry at the way he was treated by Club Physical and its partner Debitsuccess, when he gave notice of cancellation of his six-month membership just before the end of the contract period.

"They tried to tell me that a direct debt constituted a binding contract when I gave notice, and insisted that I was unable to get out of the contract for another two months,'' he said.

''It seemed like they were out to get money regardless of the reality of the situation or what was ethically right.''

Club Physical chief executive Paul Richards said among its 13,500 members there were bound to be unhappy customers, but said he would look into Mr Cook's  experience.

"The thing is people come to the gym and want to slim their waists and have smaller stomachs, but get lazy, realise they are wasting their membership and want to get out of it. Then suddenly you become the bad guys.

"I think 99.9 per cent of gym owners are nice people who are passionate about training and teaching people to keep fit."

Debitsucces said when the Credit Contracts and Consumer Act came into effect in April 2005, it took legal advice to ensure its contracts were compliant.

Industry body Fitness New Zealand chief executive Richard Beddie said when the CCCF Act came into force it worked extensively with the industry to make sure they were compliant.

Trade Me slams online scammer - crime - national | Stuff.co.nz

A pregnant internet fraudster who used several trading profiles to rip people off has been slammed by Trade Me as "not the smartest offender" after being caught 23 times.

Mother-of-two Rose Marie Pawson, 22, was sentenced in Feilding District Court yesterday on 23 counts of obtaining pecuniary advantage by deception and received a community detention and community work punishment.

Pawson and her former partner stole $7935 by tracking down bidder details from numerous trading websites, and then working out what each bidder was looking to buy.

These mainly consisted of gaming consoles, games, and mobile phones.

She then contacted those bidders via text message, and offered the same item for a cheaper price.

The buyers would then agree, outside of the trading site, and place money into Pawson's bank account. But the items were never sent.

The offending took place between August 2010 and March 2011.

Lawyer Dawn Patchett said Pawson took "full" responsibility, but said she had not "benefited" from the offending.

"She's a single parent working part-time and has accepted responsibility for the full amount owed. She understands this will cause a struggle financially."

Trade Me spokesman Jon Duffy said it was happy to see Pawson go to court as she "did not appear to have appreciated the seriousness of her actions and its impact on her victims".

"Pawson operated several memberships on Trade Me which were subsequently banned when her offending came to light. Pawson was not the smartest offender and was easily traced as she had used her own name, bank account details and other identifying details.

"It is safe to say that Trade Me is a stupid place to commit fraud as you are easily traced, as the Pawson case demonstrates."

He said Trade Me was aware Pawson's offending had not been restricted to Trade Me.

"Pawson's offending could have been stopped if the victims had followed Trade Me terms and conditions.

"Trade Me does not allow members to place contact details in Q&A on listings. One of the reasons for this is so that scammers cannot use those contact details to attempt scams. Secondly, members should never purchase items outside the auction process."

Last year the online site received 46 complaints – 0.1 per cent of sold listings for the region – about members in Manawatu, including six from the members Pawson fooled. He said 19 of these complaints were resolved between members, and 27 were investigated further. Nine were referred to police.

Trade Me Success Secrets, How to Buy Better and Sell More Profitably on New Zealand's Most Popular Auction Site

Trade Me Success Secrets 2nd Edition, How to Buy Better and Sell More Profitably on New Zealand's Most Popular Auction Site

Moon Living Abroad in New Zealand

New Zealand Websites, Trademe, Nz Performance Car, Gaynz. Com, The-Hub. Tv, Shop New Zealand, Gay. Co. Nz, Gameplanet, Lixtor, Mighty Ape

Start Me Up!, Over 100 Great Business Ideas for the Budding Entrepreneur