Peak Fitness settles suit, agrees to make changes

Peak Fitness has agreed to make changes to its customer service, contracts and billing practices at its 28 health clubs in North Carolina to settle a suit filed by the state Attorney General's Office.

The Attorney General's Office said it had received about 300 complaints about Peak Fitness over the past five years, including complaints from customers who claimed that the gym closed their location and transferred them to locations that did not provide comparable services.

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 28 gyms in North Carolina.

Under the judgment announced today, Peak Fitness must designate someone to handle all consumer complaints and post contact information in the clubs, on its Web site, and on all customers’ contracts, according to a press release from the Attorney General's Office. The judgment was approved by Wake Superior Court Judge Howard Manning.

The company must also post contact information for it's billing company, ABC Financial, and provide a fax machine in its clubs for cancellations and correspondence with Peak Fitness.

The agreement also requires Peak to purchase and maintain appropriate bonds to pay refunds to members if the club shuts down.

In addition, the company must give advance notice to gym members and the Attorney General’s Office when a health club will be closed or when members will be transferred to another location.

Peak must honor lifetime contracts purchased before 1980 at health clubs now owned by Peak Fitness. Peak had told members who purchased lifetime gym memberships more than 20 years ago that those memberships are illegal.

Consumers who allowed their lifetime contracts to lapse or entered replacement contracts with Peak in 2008 have 60 days to contact Peak to get their lifetime contract reinstated.

Some customers of Peak Fitness clubs in Asheville, Knightdale and Wilmington may also be eligible for refunds.

Knightdale consumers who believe they are eligible for a refund under these circumstances can contact Peak Fitness by e-mail at www.peakfitnessclubs.com and by fax at 704-896-5741, or contact the Attorney General’s Office at 1-877-5-NO-SCAM. Peak Fitness must provide proof to the Attorney General's Office of all refunds paid to members.