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Issue Date:  -  Thursday, 22 July 2004

Aim fitness studio fiasco

Consumers Could Be Out of Pocket

Consumers who paid to join a new gym near Mandurah that was due to open on July 31 may be left out in the cold, following the gym’s owner being charged with drug trafficking and having his assets and bank accounts frozen.

Aim Fitness Studio at 67 Batavia Avenue Wannanup, operated by Powerway Nominees Pty Ltd attracted potential new members who each paid $399 and now face uncertainty about getting their money refunded.

The Director of Powerway Nominees Pty Ltd who can be identified only by the surname ‘Powers’ faced the Mandurah Court of Petty Sessions on drug charges on Tuesday and the matter was referred to a Committal Hearing on September 7th 2004.

“We are very concerned about this matter as with Mr Powers having his assets frozen, the gym is unlikely to open on time, if at all.  The ability of members to obtain a refund is also in doubt”, Consumer Protection Commissioner Patrick Walker said.

“Usually if a trader’s assets are frozen by the State, a consumer seeking a refund would have to get a court order to have their money released from the frozen assets.

“Understandably this action would be quite daunting to the average consumer”, the Commissioner said.

Consumer Protection lawyers are exploring whether it is possible in the circumstances for the Commissioner to step into the shoes of affected consumers and head a representative action to recover their membership fees for them.

“Persons considering taking up the offer of the pre-opening memberships should seriously consider other options.

“Those who paid Mr Powers by credit card should contact their bank promptly to apply for a charge-back”, Mr Walker said.

Anyone who paid money to Mr Powers or Aim Fitness Studio needs to call Consumer Protection without delay on 1300 30 40 54 or email consumer@docep.wa.gov.au
Page last updated on:   -  Tuesday, 31 August 2004