Section 2163 - Contents of health club contract(a) General rule.--Every health club contract shall be in writing and shall contain the following provisions:(1) The date on which the buyer actually signed the contract.(2) Provisions permitting the buyer to cancel the contract without penalty within three business days of its signing and the buyer receiving a fully completed copy thereof. Upon receipt of notice of cancellation under this paragraph, the health club shall refund to the buyer all moneys, including any initiation fee, paid under the contract.(3) A provision that, if a health club facility temporarily closes for 30 days or less, the buyer shall receive an extension of the membership term equal to the period during which the facility is closed.(4) A provision permitting the buyer to cancel the contract if the health club facility closes for more than 30 days and the health club fails to provide a comparable facility within ten miles of the location designated in the health club contract. Upon receipt of notice of cancellation under this paragraph, the health club shall refund to the buyer all moneys paid in excess of an amount computed by dividing the full contract price, including any initiation fee, by the number of weeks in the contract term and multiplying the result by the number of weeks elapsed in the contract term.(5) A provision permitting the buyer to extend the membership term of the contract at no additional cost for a period of time equal to the duration of a disability where the buyer has a disability which precludes the buyer from using one-third or more of the health club facilities for a period of less than six months and the disability is verified by a physician.(6) A provision permitting the buyer or his legal representative to cancel the contract if the buyer dies or becomes permanently disabled. A permanent disability means a condition which precludes the buyer from using one-third or more of the facilities for six months or more and the condition is verified by a physician. Upon receipt of notice of cancellation under this paragraph, the health club shall refund to the buyer all moneys paid in excess of an amount computed by dividing the full contract price, including any initiation fee, by the number of weeks in the contract term and multiplying the result by the number of weeks elapsed in the contract term, less a predetermined fee not exceeding $100, or, if more than half the life of the contract has expired, a predetermined fee not exceeding $50. In the case of permanent disability, the health club may require the buyer to submit to a physical examination by a physician agreeable to the buyer and the health club. The additional cost of the examination shall be borne by the health club.(7) A provision permitting the buyer to cancel the contract if the buyer moves more than 25 additional miles from the health club and is unable to transfer the contract to a comparable facility located within five miles of his new residence. Upon receipt of notice of cancellation under this paragraph, the health club shall refund to the buyer all moneys paid in excess of an amount computed as of the date of relocation by dividing the full contract price, including any initiation fee, by the number of weeks in the contract term and multiplying the result by the number of weeks elapsed in the contract term, less a predetermined fee not exceeding $100, or, if more than half the life of the contract has expired, a predetermined fee not exceeding $50.(8) Provisions that, to cancel a contract pursuant to paragraph (2), (4), (6) or (7), the buyer shall notify the health club of cancellation in writing, by certified mail, return receipt requested, or by personal delivery to the address specified in the health club contract; that all money to be refunded upon cancellation of the health club contract shall be paid within 40 days of receipt of the notice of cancellation; and that, if the buyer has executed a credit, lien or automatic funds transfer agreement with the health club to pay for health club services, any negotiable instrument or credit or lien agreement executed by the buyer shall also be returned and any automatic transfer shall be canceled within 40 days after the cancellation.(9) If the health club facility is not completed and operational on the date the health club contract is executed:(i) A provision stating the date the facilities will be open and available for use.(ii) A provision permitting the buyer to cancel the contract without penalty and receive a full refund, including any initiation fee, if the facility is not completed and operational by the date specified in the contract.(iii) A provision permitting the buyer to cancel the contract without penalty and receive a full refund, including any initiation fee, within three business days after the facility opens or the buyer receives notice of its opening, whichever occurs later.(10) A provision setting forth the name and address of the surety or bank from which the health club has obtained a bond or letter of credit and describing the procedure to obtain a refund under such bond or letter of credit.(11) A provision that, until the health club has provided the buyer with a signed copy of a contract written in full compliance with this section, the buyer may cancel the contract at any time.(b) Notice provisions required.--A health club contract and any promissory notes executed by the buyer in connection with the health club contract shall contain the following provisions on their faces in boldface type of a minimum size of ten points: (1) Notice of consumer rights.--BUYER'S RIGHT TO CANCEL
If you wish to cancel this contract, you may cancel by delivering or mailing by certified mail, return receipt requested, written notice to this health club. The notice must say that you do not wish to be bound by the contract and must be delivered or mailed before 12 midnight of the third business day after you sign and receive a copy of this contract. The notice must be delivered or mailed to...(health club shall insert its name and mailing address). In some cases you may also cancel this contract if you signed it before the health club facility was completed, if the club moves or goes out of business, if you become permanently disabled or if you move from the area. If you cancel, the health club may be entitled to a certain portion of the contract price. If the health club goes out of business or refuses to give you a refund, there may be a bond or letter of credit under which you are entitled to collect. For details, read your contract carefully. Enforcement of the Health Club Act is by the Attorney General of the Commonwealth of Pennsylvania or the district attorney of the county in which the health club is located. You may also bring a private cause of action. If your rights are violated, you may contact the State Bureau of Consumer Protection or your local district attorney.
(2) Notice of claims and defenses.--NOTICE
Any holder of this contract or note is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained pursuant hereto or with the proceeds hereof. Recovery hereunder by the debtor shall not exceed amounts paid by the debtor hereunder.
(c) Assignment of right of action.--Whether or not the health club has complied with the notice requirements of this section, any right of action or defense arising out of a health club contract which the buyer has against the health club, and which would be cut off by assignment, shall not be cut off by assignment of the contract to a third-party holder, whether or not the holder acquires the contract in good faith and for value.(d) Execution and delivery.--Every health club contract shall be signed by the buyer, and a copy shall be delivered to the buyer at the time the contract is executed.1989, Dec. 21, P.L. 672, No. 87, § 3, effective in 180 days.