Having recently completed due diligence on a health club acquisition for a client, I was astonished to discover that a member’s bank account had been knowingly debited for six years, although she had never returned following her initial induction.
Some readers may feel that people should be more disciplined in cancelling services they never use, but there can be few industries where suppliers can charge for delivering nothing. These member accounts, which must be internally marked as `do not communicate`, might represent easy money, but they expose the industry to media investigations and headlines that all readers can imagine.
There is a clear obligation for financial service providers to communicate with all account holders at least once a year. Why not introduce the same for health and fitness clubs? Money from `dormant accounts` which I define as no attendance for six continuous months, should be returned to its rightful owner, or perhaps put towards an FIA initiative. So, come on health club industry, lets set up a `Dormant Accounts Fund` and put this money into an initiative that transforms lives.