You told them you wanted to cancel. You filled in the form, sent the email, maybe even went in person. And the direct debits just keep coming. Every fortnight, another $30, $40, $60 vanishes from your account for a gym you haven’t set foot in for months.
Now they’re telling you there’s a “minimum term”, a “30-day notice period”, a “cancellation fee”, or that you need to fill in a different form you’ve never heard of. It feels deliberate. In a lot of cases, it is. You’re not going to be most people.
Your rights
Gym memberships in Australia are governed by the Australian Consumer Law (ACL), which sits in Schedule 2 of the Competition and Consumer Act 2010. A few provisions matter here:
- Unfair contract terms (ss 23–28 ACL). A term in a standard-form consumer contract is void if it causes a significant imbalance, isn’t reasonably necessary to protect the business, and would cause you detriment. Terms that let the gym cancel but not you, automatic rollovers with no notice, and disproportionate exit fees are exactly the sort of terms the ACCC has targeted. Since November 2023, using an unfair term is also a breach that attracts penalties.
- Misleading or deceptive conduct (s 18 ACL). If the salesperson told you “you can cancel anytime” and the fine print says otherwise, the representation may be misleading, and you can rely on what you were told.
- Unconscionable conduct (s 21 ACL). Continuing to debit an account after clear written notice to cancel, or making cancellation deliberately hard, can be unconscionable.
- State fitness industry rules. Some states have extra protections. New South Wales no longer has a fitness-specific Act (the Fitness Services (Pre-paid Fees) Act 2000 was repealed in 2015), so NSW Fair Trading relies on the Australian Consumer Law and its fitness-industry guidance. Victorian and Queensland fair trading offices publish fitness-specific guidance and have taken action against chains for cancellation practices.
Also important: a direct debit is your authority. You can instruct your bank to cancel a direct debit arrangement at any time. If the gym debits your bank account, under the Banking Code of Practice your bank must promptly process your request to cancel the direct debit. If the gym charges your card, cancel with the gym (or its billing company); your bank can still help you dispute an unauthorised charge.
What to do right now
- Put your cancellation in writing today. Email the gym (not just the app, not just the front desk) stating clearly: “I cancel my membership effective [date]. Please confirm in writing and cease all direct debits.” Keep the sent email. If they insist on their own form, complete it and email a copy so there’s a timestamped record.
- Pull your contract and your bank statements. Find the membership agreement you signed (ask them for a copy if you don’t have it; they must provide it). Highlight every debit taken after your cancellation notice. Add them up. That figure is what you’re demanding back.
- Cancel the direct debit at your bank. Call your bank or use the app. Tell them you’re cancelling the direct debit authority to the gym. Do this even if the gym says you “can’t”. You can.
- Send a formal Letter of Demand. This is where things change. A properly drafted letter cites the ACL provisions above, states the amount owed, gives a deadline (typically 14 days), and states that you will lodge with your state fair trading body and the civil tribunal if they don’t pay. Gyms settle these because the tribunal filing fee costs them more than your refund.
- Escalate if they ignore you. Lodge a complaint with your state consumer body: NSW Fair Trading, Consumer Affairs Victoria, Queensland Office of Fair Trading, Consumer and Business Services (South Australia), Consumer Protection WA, or the equivalent in your territory. Then file in your state’s civil tribunal (NCAT, VCAT, QCAT, SACAT, etc.). Filing fees are usually under $100 for small claims and you don’t need a lawyer.
Two things not to do: don’t just stop paying and hope it goes away (they’ll send it to a debt collector), and don’t accept a “credit” or “membership freeze” as a substitute for a refund of money they weren’t entitled to take.
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Mistakes that let the gym keep your money
- Cancelling verbally only. “I told the guy at the desk” is worth nothing at a tribunal. If you did that, send the written notice now and refer to the earlier conversation with the date.
- Accepting a “freeze” instead of a cancellation. A freeze pauses payments; it doesn’t end the contract. Some gyms will “freeze” your membership and then quietly resume debits three months later.
- Ignoring the debt collector letter. If the gym sends the “outstanding balance” to a collector, respond in writing that the debt is disputed and why. Collectors must stop pursuing a genuinely disputed debt while it’s resolved, and a disputed debt shouldn’t be listed as a default without notice.
- Letting the bank tell you to “sort it out with the merchant”. For a direct debit from your bank account, your bank must promptly process your request to cancel it. If a staff member refuses, ask for the complaints team and quote the Banking Code of Practice.
- Waiting. Every fortnight you wait is another debit. The longer the money sits with them, the harder they’ll argue you “accepted” the ongoing membership by not objecting.
What typically happens once a proper Letter of Demand lands: the gym’s head office or franchisor (not the club manager who’s been ignoring you) responds within the deadline, confirms cancellation, and offers a refund of some or all of the post-notice debits. If they offer a partial refund, you don’t have to accept it; a tribunal will usually award the full amount plus your filing fee.
Who to complain to
The ACCC collects reports on gym cancellation practices and has publicly warned the industry, though it doesn’t resolve individual disputes. Your state fair trading or consumer affairs office can conciliate. If the gym is a member of AUSactive (the fitness industry body), you can also complain there. And if the debits kept going after you cancelled at your bank, that’s a complaint to the bank via AFCA (Australian Financial Complaints Authority).
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What happens when you put it in writing — properly
Same problem. What a prepared case looks like.