When you are contacted by a debt collector, it can be incredibly overwhelming. Unfortunately, this is often the case with gyms and fitness clubs, due to unpaid dues or billing errors. As such, if you are in collections for a gym debt, the following blog explores what you should know about this process, including your legal options nd the importance of working with a California debt collection defense lawyer to help you fight for the best possible outcome
What Does It Mean to Be Sent to Collections?
If a debt is sent to collections, this means that the original creditor has had no luck in getting you to repay the debt, so they have sold it to a third-party debt collector. Typically, the original creditor will wait at least 90 days before resorting to collections. It’s necessary to understand that, just like any other creditor, a gym is a typical business and can send you to collections for outstanding payments.
It’s imperative to understand that being sent to collections can have a significant and negative impact on your credit score. This is because any account that is in collections must be reported to the credit agencies, which can result in the drastic reduction of your credit score. As a result, you may find that this inhibits your ability to obtain loans, be approved for housing, and even what kind of jobs you can seek.
What Are My Legal Options if a Gym Sends Me to Collections?
If you are contacted by a debt collector or collection agency in regards to an outstanding debt, the first thing you should do is have the debt validated. Essentially, this means that the collector sends you a letter with information about the debt, including the balance due and the original creditor. You should check this against your records to determine if the debt is valid.
In the event the debt is valid, you can work with an experienced debt collection defense attorney to help you negotiate a settlement with the collector. This option allows you to pay a portion of the debt in exchange for them to stop pursuing the funds. Typically, you can pay the entire amount in one lump-sum payment or work out a payment schedule. You should note, however, that you should never agree to a settlement amount without the full terms and conditions detailed in a legally binding contract reviewed by your attorney.
If the debt is not valid, meaning you do not owe it, working with an attorney is critical, as they can help you dispute the debt. This often includes sending a letter via certified mail to the collection agency with proof that the debt they seek is not yours. Your attorney can help in fighting the collection of a debt that does not belong to you.
As you can see, being sent to collections by your gym is not a matter that should be taken lightly. If this represents your circumstances, the team at Loker Law is ready to help. Our firm is committed to helping you seek the best possible outcome for your situation. When you need assistance, contact us today to learn how we can help you.
