Consequences for Refusing to Pay Collections Agency
(Colorado Springs, CO, USA)
I cancelled my gym membership back in November 2011, but they never gave me a copy of the cancellation form that I filled out. Per our original contract, they charged me one more month (December). I did not see a charge in January 2012 and assumed it was taken care of. I recently noticed in July 2012 that they have been collecting my monthly dues ($39.99/mo) since February 2012. I called the company and explained the situation, but they said they have no record of my cancellation. I also went to my bank to dispute the charges: the bank put a stop to all debits from the gym, refunded the last two months membership ($80) and is in the process of refunding the other four months ($160). When I explained all of this to the gym's corporate supervisor over the phone, she said that if the bank takes that money back from them, they will send it to a collections agency. Even though they never gave me the copy of my cancellation form, I feel very strongly that they are in the wrong and I refuse to pay. What are the consequences for not paying a collections agency for such a small amount ($280)? Will they attempt to sue me? Will it affect my credit report?