Life memberships end early

How long does a lifetime membership last? If you thought it meant until your death, think again.

Peak Fitness is telling members who bought lifetime gym memberships more than 20 years ago that those memberships are now illegal.

That the gym is apparently in the right doesn't make the news sit any better with those affected.

"Most of those who had a lifetime agreement feel like they've been cheated," said George F. Fetty of Raleigh, who has been a lifetime member for more than 25 years.

Fetty didn't know how many other members were affected, and officials with Peak Fitness would not say. Gary Govert, acting senior director of consumer protection in the state Attorney General's Office, said his office had received numerous calls complaining about it.

Govert said that Peak Fitness is likely referring to a 1979 law that made it illegal to sell any prepaid entertainment contract with terms beyond three years.

Prepaid entertainment includes such things as dance classes, dating services and health and athletic clubs, said Govert.

The law was designed to protect consumers from companies collecting large sums of money and then going out of business before fulfilling the contract.

"It may be legal, but is it ethical?" Fetty asked.

Fetty bought his membership in 1982 from the Spa Health Club and for the past 26 years, he has gone to the gym three times a week. Now, at 79, he does 100 sit-ups, rides the exercise bike and lifts weights.

Two-year plans

Peak bought Fetty's gym about two years ago but didn't try to change any members' status until this year. Most of Peak's memberships are renewed every two years, said Ken Hanley, the company's controller.

"While Peak Fitness was not legally required to honor these contracts at all, Peak Fitness did so for two years," Hanley said.

When it came to renewal time, Fetty and others were told that they needed to pay a $199 annual membership fee and a one-time $50 fee for facility improvements.

"They were given 30 days to renew their memberships under valid, legal and enforceable Peak Fitness agreements," Hanley said.

Fetty reluctantly paid.

"There are guys I've gone to the gym with since 1977," Fetty said.

As Fetty's membership shows, some companies sold lifetime memberships after the law was passed. Fetty said he did not know such memberships were illegal, but he may have little legal recourse now. But the legal issue is not clear for Sam Hudson of Raleigh and others who bought their memberships before the law was passed.

"I've been a lifetime member since 1972," Hudson said. His original contract also was with the Spa Health Club. He found out that his membership at Peak Fitness had ended two weeks ago -- on his 80th birthday.

"I started to go in on my birthday and I was told, 'As of July 1, you are out,' " Hudson said.

Govert said the Attorney General's Office would have to review the contracts of those who bought memberships before 1979 to determine when the contract was made and what company made it.

"We are very interested in receiving copies of these contracts in order to be in a much better position to assess what the story is," Govert said.

Other businesses have found ways to work around the law.

Earlier this month, local Fitness 19 gyms offered members a promotion that promised "free membership and never pay dues again."

"What we are doing is giving them free membership," said Amber Lineberger, a manager at Fitness 19 in Cary. "They are not paying an extra amount for a lifetime membership."

As far as never paying dues, that depends on how good members are at recruitment. The gym discounts dues by $1 -- forever -- for every new person a member brings in.

Hanley said that Peak has never offered lifetime memberships. The company, which is based in the Mecklenburg County town of Huntersville, came to the Triangle in 2006 when it purchased Capital Health Clubs and Beyond Fitness locations. It has 27 gyms in North Carolina.

Peak Fitness is also being sued in Wake County Superior Court by the state Attorney General's Office over a different complaint, said Govert. That lawsuit includes complaints from customers who claimed that Peak Fitness, after buying their gym, closed it and transferred them to locations that did not provide comparable services.

"After our facilities closed, we refunded and/or canceled hundreds of members that were unhappy with the new facilities," Jeff Harley, Peak Fitness president, wrote in a letter concerning the lawsuit.

Fetty said that his original gym was sold to different gyms before Peak bought it from Capital Health Clubs, and that the others honored his lifetime membership. He thinks Peak should do the same.

"When you buy out a business, you accept the good with the bad," said Fetty. "It's like getting married."