- Mark Burnett seeks a refund after a Utah jiu-jitsu studio closes.
- Burnett's credit union denied his dispute due to time lapse. The owner is unresponsive.
- The BBB advises caution with memberships; legal action is an option for consumers.
SALT LAKE CITY — Mark Burnett's kids were in the middle of a two-week jiu-jitsu trial when the gym made him an offer: "Upgrade" and "save!" "12 months at $864."
"The deal ends today," Burnett said of the promotion. "So, we had decided right then and there."
Burnett signed both kids up, but two months later, he was told they were shutting down.
"The start of the third month, the instructor said they were closing down the studio," he said.
The studio told him it was trying to reopen. But when he asked for an update when summer rolled in, he got nothing.
"He just decided to not respond," Burnett said of the studio's owner.
Not getting a refund, he disputed the charge with his credit union, but it was denied. Too much time had passed. The studio owner told the credit union Burnett just needed to call him.
"And it does say to have the cardholder reach out to the merchant," Burnett read from the denial letter. "I've tried that countless times."
Frustrated, Burnett decided to call me.
I tried reaching the owner of Gracie Jiu-Jitsu myself. The phone is disconnected. The website is gone. And the studio is now a nail salon.
What can consumers do?
"With a gym membership, subscription, be very careful where you put your money," warned Melanie Fox of the Better Business Bureau.
According to the BBB, even if they close, a "business is still obligated to fulfill your order for goods, services, or a refund."
Consumers can take a company to court, which can be a time-consuming and expensive process. So, the BBB suggests customers file a credit card dispute or contact the company.
"If the business is closed, it's hard to know what to do to save your money," said Fox.
"We are just trying to get our money back," said Burnett.
He is out more than $1,000 and said he'll think twice before buying into the next "too-good-to-miss" deal.
"I feel that it was kind of a bait-and-switch," he said of the now-defunct jiu-jitsu studio's offer.
If a closed business filed for bankruptcy, you would need to make a claim for your money or property with the court. But that's no guarantee as individual customers are often considered low priority.
If a business has not filed for bankruptcy protection, another option is to file a lawsuit through small claims court. In Utah, an attorney is not required to file a small claims case and fees run from $60 to $185. The most you can ask for in Utah is currently $20,000.
