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State AGs 
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Gym reaches settlement with Abbott
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Abbott
AUSTIN, Texas (Legal Newsline) - Texas Attorney General Greg Abbott on Tuesday announced that his office has secured a deal with a fitness center that allegedly deceived its customers with fake past-due bills.

The California-based Bally Total Fitness Corp. agreed to a judgment that will prohibit the company from sending its former members misleading "past-due" mailings, which it had allegedly done between the summer of 2009 and March.

Abbott alleged that during that time period, Bally mailed more than 11,000 misleading "past-due" collection notices to past customers as a way to get them to rejoin their former gym. These notices misled consumers into thinking that they owed outstanding membership fees when, in fact, they were merely a scheme to get people to renew their plan with the gym, Abbott claims.

Allegedly, more than 1,000 Texans made payments to Bally after receiving the improper past-due collection notices.

According to the agreement, Bally must provide refunds to Texans who paid these fees. Bally is responsible for sending out settlement notices to customers who are automatically eligible for restitution.

Bally is also not allowed to inform current or former members that they owe a balance on their account unless the balance is truly owed.

Filed Under: State AGs

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MORE NEWS HEADLINES:
+ Okla. AG defends his decision not to join mortgage settlement - 2/10   read more
+ Payday lender ruled in contempt of Wis. settlement - 2/10   read more
+ Bill limiting Miss. AG's authority dead for breaking rules - 2/10   read more
+ Vermont GOP wants Sorrell to look into possible union bullying - 2/10   read more
+ Madigan recovered more than $1M for workers in 2011 - 2/10   read more
+ Mass. AG recovered $5M from labor violations - 2/10   read more
+ Blog: Mortgage settlement not all that great - 2/9   read more
+ Report: Va. AG sues over health spa memberships - 2/9   read more
+ N.H. AG settles with PetSmart over cadmium allegations - 2/9   read more
+ Conn. utilities board rules for Jepsen's motion - 2/9   read more


IN THE SPOTLIGHT:
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Wednesday, February 08, 2012
PHILADELPHIA (Legal Newsline) - A roundtable of federal and state judges from across the country will convene at the posh Ritz Carlton on Feb. 9 to address topics such as "Can MDL's keep up with state court trial settings;" "Priority of deposition examination;" "State and federal cooperation;" and "Forum non conveniens."
Read more...


+ Study shows plaintiff bias in Philly courts - 2/6
+ Fannie Mae offers examples of routine dishonesty in its fight against lenders - 2/3
+ Quaker City courts have troubled history; some reject 'plaintiff-friendly' criticism - 1/31
+ Madison County asbestos docket feeds off intake firm referrals - 1/19
+ Torts conference set for Feb. 8 in Philly - 1/18
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