Question regarding Consumer Protection Act and a Contract

[Piesang]

My wife goed to Gym everyday. Since we moved two months ago she wasn't really able to attend the Gym because we live much further away from the gym now.

She wants to cancel the contract. In the contract it states that she can cancel it but there will be a cancelation penalty. No-where in the contract its describes what the cancelation penatly is. Are they not suppose to explain it in the contract or not?

They want to charge her now like this:

Herewith please find all the options available to members for early cancellation;

· Standard Early Cancellation of Contract (can only be done once 50% of contract has been seen through, if you cancel before you have completed 50% of your contract you will revert back to a month to month contract = R299.00 )

o 3 months fees + R300 cancellation fee (member must come in and sign an “early cancellation of membership” form once 50% of contract is complete – thereafter 3 months notice plus cancellation fee is applicable) Your amount due will therefore be R 1197.00.

In the contract it says that she can cancel at any time though. It doesn't say anything about the Standard Early Cancellation.

 

[wheunis]

If she signed the contract before the actual implementation of the CPA, then she has no recourse at current.
Cancellation fees are entirely legal and allowed before the implementation of the CPA.

There will at some point be a lapse of the Act into older contracts and agreements, but that period is not yet.

Review your contract, if it isn't mentioned, then tell them to go **** themselves.

 

[Piesang]

If she signed the contract before the actual implementation of the CPA, then she has no recourse at current.
Cancellation fees are entirely legal and allowed before the implementation of the CPA.

There will at some point be a lapse of the Act into older contracts and agreements, but that period is not yet.

Review your contract, if it isn't mentioned, then tell them to go **** themselves.

She renewed the contract in August.

 

[wheunis]

She renewed the contract in August.

In that case she is more than within her rights to tell them where to shove it.

 

[Dean]

Maybe the part about being able to cancel at any stage is like the new South African definition of 'uncapped'.

ie. you can do whatever you want (download excessively/cancel the contract), but you'll definitely be billed extra for it!