According to Iowa Code § 552.17 and(NNN) NNN-NNNN does it mean that members of a fitness club who sign a 12 month agreement but make monthly payments can cancel at anytime without any cancellation fee?
State/Country relating to question: Iowa
Hello, my name is Ely. I am here to help you. There may be a slight delay between your follow ups and my replies as I type out a reply. Please note: (1) this is general information only, not legal advice; and (2) my function is to give you honest information and not to tell you what you necessarily wish to hear.Yes. Under 552.17, where you pay a membership fee in four or more periodic payments, then the contract is subject to Chapter 537. Under(NNN) NNN-NNNN1), the consumer is allowed to cancel any such agreement going forward at every payment. The cancellation has to be made in writing. Let me know if you need a template.While there is on discussion about a "cancellation fee," the legislative intent here is clear. ("We determine legislative intent from the words chosen by the legislature, not what it should or might have said." Painters & Allied Trades Local Union v. City of Des Moines, 451 N.W.2d 825, 826 (Iowa 1990)). The club cannot accelerate, and thus, cannot charge a cancellation fee because the whole point is to be able to cancel the periodic contract without penalty.IMPORTANT INFO: I hope this finds you well. Please use REPLY TO EXPERT to keep talking, or RATE my answer when we are finished. Kindly rate my answer as one of the top three faces and then click SUBMIT, because this is how I get credit for my time with you. Rating my answer the bottom two faces does not give me credit and reflects negatively on me as an expert even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith. Do not worry, you may always ask follow ups free after rating.
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Can a 30 day notice be required? Also, could you send me the template you mentioned.
Aimee, Although XXX.XXXX does not mention a 30 days notice, this is standard and individuals should include this.To Whom It May Concern:Re: (Account number)This is to inform you that per Iowa Code § 552.17 and XXX.XXXX, I am hereby giving you a 30 days notice of my cancellation of membership. After 30 days of this notice, the billing cycle should end. If your company continues to (1) bill my account or (2) engage in unwarranted collection efforts, a complaint to the Attorney General and possible legal action under "negligence per se" will follow.Thank you in advance.Sincerely,SignatureNameIMPORTANT INFO: I hope this finds you well. Please use REPLY TO EXPERT to keep talking, or RATE my answer when we are finished. Kindly rate my answer as one of the top three faces and then click SUBMIT, because this is how I get credit for my time with you. Rating my answer the bottom two faces does not give me credit and reflects negatively on me as an expert even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith. Do not worry, you may always ask follow ups free after rating.
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