Refunds Slated For Long Island Consumers

Attorney General Spitzer today announced that refunds are available for consumers who lost money when a Nassau County fitness club abruptly went out of business.

When the Fitness Connection Health Club closed its doors in August of 1996, without warning to its members, individuals who had paid in advance for long-term contracts found themselves without their money back, or a place to exercise. The Fitness Connection was located at 1981 Marcus Avenue, Lake Success.

"State law provides protection for consumers when paying large sums of money up-front to join a health club," Spitzer said. "By enforcing this law, my office is striving to locate all consumers who are owed money for their unused membership, and also is raising public confidence that consumers will not get ripped off."

Under the terms of the settlement, the club principals -- William Balbach and Sylvia Feldman -- are required to pay the Attorney General’s Office $10,000, which will be used to reimburse affected consumers. The settlement also allows the Attorney General to seek additional money for refunds if the actual losses exceed $10,000.

Additionally, Balbach and Feldman are prohibited from engaging in any business providing health club services in New York State until they are in full compliance with New York State laws relevant to the health club industry. Those laws include provisions requiring that health clubs secure financial bonds, specifically to protect consumers in the event that the clubs go out of business.

The Attorney General’s Office launched the investigation after receiving several complaints from aggrieved consumers. This settlement represents the most recent in a series of settlements and lawsuits against health clubs generated by the Attorney General’s Consumer Frauds Bureau. The Bureau is investigating health clubs statewide to ensure that they are in full compliance with New York State’s General Business Laws.

Any consumers who had valid contracts with the Fitness Connection on August 26, 1996 and who paid in advance for their memberships are asked to submit a complaint with all available documentation by Monday, May 24, 1999 to the New York State Attorney General, Nassau Regional Office at 200 Old Country Road Suite 240, Mineola, NY 11501. Consumers with questions can call (800) 771-7755 or (516) 248-3302.

The investigation and settlement were handled by Assistant Attorney General Juan Merchan of the Attorney General’s Nassau County Regional Office under the supervision of Suzan Flamm, Assistant Attorney General in Charge.