AG Forces Changes by Problem Health Club

Eyewitness News Troubleshooter Diane Wilson first reported that Beyond Fitness, which is now Peak Fitness, faced court action after the Attorney General claimed the clubs were breaking state law.

Now officials with the clubs have agreed to change their ways - affected hundreds of thousands of members.

The clubs were set to face a judge Wednesday for a complaint that alleged unfair and deceptive advertising problems with the contracts and no bonds.

Instead of facing a judge, Peak Fitness agreed to make changes.

Peak's advertising is appealing only $19.99 a month  online the special is only $14.99 a month, but if you look closely at the contract you'll see certain restrictions apply. Those restrictions mean you must pay the entire 2-year membership up front equaling to hundreds of dollars.

The state's Attorney General's Office claimed these advertising tactics are deceptive and misleading. State attorneys wanted a judge to cancel all prepaid contracts that violated state law, and ordered refunds for consumers. Instead, Peak Fitness agreed to stop their advertising tactics online. Instead of the $14.99 deal, it just says "best offer, best value."

State attorneys also claimed neither Beyond Fitness, or Peak Fitness companies are bonded. Bonds are required by state law and provide members with refunds if the business goes under. Peak's owner, Jeff Stec says Peak is bonded and has agreed to provide the state with that proof.

Another change includes making sure the contracts include information about the 3-day right to cancel.

According to state attorneys, Peak Fitness also agreed to set aside money to cover future refunds. Even with these agreed changes, the Attorney General's case goes forward.

Part of the lawsuit is asking the court to require Beyond and Peak Fitness to turn over all copies of all prepaid membership contracts and provide detailed information about the sale and ownership of the clubs.

That information is needed so the current owner can be held responsible for resolving complaints and paying refunds.

AG Cooper encourages consumers to check out a health club thoroughly before signing any contract. Be sure to read contracts carefully to avoid automatic renewals and early termination fees. Also, remember that you have three days to cancel your contract. If you have problems with your health club or want to check up on one before joining, contact the Attorney General's Office at 1-877-5-NO-SCAM.