Advice on Ballys collections

[prefont313]

My wife used my name and credit card to open a Bally membership. When I tried to cancel, they said to fax my driver's license and signature to compare from what's on the membership application. When they declined my cancellation, I stopped paying. About one year into my two year contract, they sent me to collections.

I was willing to pay the year I owed but now that I am in collections, they want the value of the two year contract. This I disagree with because 1) the contract isn't up and 2) I moved and the nearest Ballys is over 50 miles away.

Any advice on how to proceed?

[swirlgirl]

The problem is since the issue of the cancellation was never truly resolved, you are legally liable for the entire value of the two year contract. Since you stopped paying and went into default, they have the right to ask for the full two years, even if the time is not up yet. Same applies to your moving. Since you defaulted, all of these reasons no longer matter.

From a consumer point of view, it's always best to keep paying on an agreement until you get any issues resolved. And if you decide to stop payment, you would need to notify them that you are withholding payment until the matter is resolved.

With all that said and depending on your goals, you can DV the CA or just try a settlement/PFD letter. Check your credit reports to see who is reporting.

Lastly, there may be some recourse due to the "marital" issues where a one spouse uses the name and credit card of the other spouse with or without permission. Maybe some others can offer their knowledge on this.