Is it legal for a company to draft money from my bank account every month without a signed service contract? Golds Gym recently raise my monthly membership rate without warning. I had signed a fixed rate for life contract with Worlds Gym back in 2001, which was subsequently purchased by Golds. I have my bank records showing the payment, but no contract (my wife threw it out by mistake). Please advise.
Unless your original authorization for the charges to your account said the amount could change, the transactions with the higher amount are unauthorized. Even if the authorization provided for changed amounts, you should have received a notice of the change.
You may be able to convince your bank that the change in amounts wasn't authorized, even without the original contract. If you can, and if you sign an affidavit that the transactions were not authorized, you should be able to have your bank send back any of the increased transfers that are not more than sixty days old.
If you actually want to stop Golds from charging your account altogether, you must notify them in writing that you are revoking your authorization. Of course that will mean you will have to make other arrangements to pay your club fees.
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Unless your original authorization for the charges to your account said the amount could change, the transactions with the higher amount are unauthorized. Even if the authorization provided for changed amounts, you should have received a notice of the change.