The Pennsylvania state attorney's office in the US has launched a consumer protection lawsuit against the operator of a failed tennis club who failed to obtain a letter of credit (L/C) that would have refunded membership fees to club members whose subscriptions to the club had not expired when it folded.

According to the state attorney, the former operator of the Edgewood Tennis & Fitness Club closed the club in February without warning members.

Prepaid memberships

The attorney said 83 consumers complained that they had prepaid for health club memberships at the business and for time on the indoor tennis courts there.

The complaint filed accuses the club and president and treasurer of East Hills Racquet and Fitness Club, David D Hasley, of failing to give refunds to consumers who did not get the full value of their memberships.

L/C legal requirement

Hasley did not use contract documents that contained required information nor did he obtain the L/C or bond that state law requires in order to provide refunds if a club suddenly closes, Corbett said.

The lawsuit seeks full restitution for consumers who prepaid for services, plus penalties.

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