Your Personal Finances

Consumer Alert

Getting fit is an admirable goal. But before you sign up for a fitness club membership, you should know your rights and consider alternative ways to get fit.

With respect to joining a fitness club, depending on where you live you could be protected by rules providing cooling-off periods when you sign a contract, rules about fees and options about how you can pay those fees.

Under Ontario's Consumer Protection Act, 2002, you have the right to cancel any fitness club contract you sign within ten days of receiving a written copy of the agreement or the day all the services in the agreement are available, whichever is later. (Manitoba has a seven-day cancellation right under its Consumer Protection Act.) You don't have to have a reason to cancel, you simply have to provide notice to the club. The notice could be hand delivered (be sure to get a signature on the delivery receipt) or sent by registered mail.

With respect to fees, initiation fees can't be more than twice the annual membership fees. Also, the club has to give you the option of paying membership fees and any initiation fees in monthly installments. In Ontario a club can charge up to 25% more than if you paid up front. But, if you are joining a new club or one that isn't well established in the community, the 25% higher fee might be worth the protection of paying the entire cost up front and the company going out of business.

As an alternative to joining a fitness club, there are many other ways to get fit without spending a bundle. Local Community Centres often have very low-cost programs or even fitness clubs that rival full service private clubs. Costs are usually lower and can be based on a pay-per-use basis. There are DVDs that allow you to get into a routine at home with the purchase of some simple and inexpensive equipment. And local running groups are usually low-cost. If your 2010 goal is to drop some weight and get fit, get creative. Look for alternative fitness opportunities that don't cost you a bundle to keep your New Year's resolution. And, work with your financial advisor to ensure that your fitness costs are including in your budget.

More Personal Finances -- Consumer Alert -- Credit/Debt -- Employment Issues -- Family Issues -- Home Ownership