Fitness club closes confounding customers

OAKLAND, N.J. (WABC) -- It's big price break to get in early and pay up front, but this didn't pan out. The gym owners in New Jersey were evicted for not paying rent.

It was a mob of mystified members including the town's mayor, all stuck and steaming, outside an Oakland-based gym. "I Am Fitness" closed before it ever opened.

But the only thing that got slimmer was their wallets. Now, as many as 700 confounded gym customers are frustrated, out hundreds of dollars in membership down payments. Some even forked over nearly $600 apiece for a full year's membership.

"This is one expensive t-shirt for sure. This all I got." New mom, Allie Mitchell, says she got suspicious when all she saw over the winter was one lonely treadmill in the gym.

"I drove by and see an eviction sign so they obviously weren't paying their rent and I feel robbed," Mitchell said.

Members are mad at this man, Ryan Shannon, the gym's co-founder and owner, according to his the gym's lawyer and his Facebook page. His customers say when they asked for refunds, he went AWOL.

"He said he was going to be mailing me back a check and it was going to arrive to my house. And he said (it would arrive in) 7 to 10 business days. It never came. I called back. His email - down. Everything was bouncing back so I was fed up," Mitchell said.

When we went to the Oakland gym, we found the doors locked, a stack of contracts, with un-cashed checks, on a desolate front desk.

"It's unconscionable that they would keep taking peoples money and they probably knew they couldn't open." Oakland Mayor Linda Schwager says she's trying to recover money from the closed down club.

Other members says contracts, containing personal info like birth dates, social security and credit cards numbers, are all inside the club.

So the mayor got on it, calling down the property manager to unlock the evicted tenant's door. And sending in the police, to secure those sensitive documents.

"That's a relief. That was all our personal information in the window. Anyone could've gotten. At least it will be safe," said Carrie Quadrini, a gym member.

The next step is restitution. Luckily, "I Am Fitness" had paid a $50,000 bond to the state in order to start collecting money for annual memberships.

"If the health club goes out of business, or for some reason the contracts aren't honored, there is some way for customers to get back their money," said Steve Lee, Acting Director of the New Jersey Division of Consumer Affairs.

The bond is worth $50,000. The lawyer for the owners of "I Am Fitness" said he believes the bond will cover what members paid to Ryan Shannon. The big takeaway, before signing a contract with a gym or fitness club, always check to make sure the gym is registered with the state. Make sure you know exactly what the cancellation policy is and get it in writing. You could cancel the contract but still be may be on the hook for the term of the deal. Lastly, pay by credit card, you'll have a chance at a charge-back. If you report it within the fraud window, usually 60 days, you could be covered.

CLICK HERE to file a complaint with NJ Division of Consumer Affairs.