Georgia Receivables Inc. v. Welch

Collections company could not enforce health club membership contract against defendant since the contract did not specify the exact date on which her right to cancel the contract expired.

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In this contract case, appellant, Georgia Receivables, Inc., sought to recover from appellee, Cheryl Welch, amounts it claims were due under a retail installment contract entered into between Welch and Holiday Universal, Inc., a/k/a Bally’s “Bally’s” for a health spa facility membership. Georgia Receivables alleged that it subsequently purchased the membership contract from Bally’s and was assigned all of the rights, title, and interest to the contract. Welch denied the debt in her pro-se answer. On Georgia Receivables’ motion for summary judgment, the trial court found that the contract Georgia Receivables sought to enforce was void and unenforceable, because the contract did not meet the requirements of OCGA § 10-1-393.2. The trial court denied summary judgment to Georgia Receivables and dismissed its complaint. Georgia Receivables appeals, alleging that the trial court erred in denying its motion for summary judgment. Finding no error, we affirm.

The Fair Business Practices Act of 1975 was passed by the General Assembly “to protect consumers and legitimate business enterprises from unfair or deceptive practices in the conduct of any trade or commerce in part or wholly in the state.” OCGA § 10-1-391 a. Such Act “is to be liberally construed and applied to promote its underlying purposes and policies, which are to protect consumers. Cit.” Standish v. Hub Motor Co., 149 Ga. App. 365, 366 254 SE2d 416 1979; OCGA § 10-1-391 a. In order to insure that consumers are protected as the Act contemplates, such Act must be strictly enforced against the business which engages in unfair or deceptive acts or practices that this Act seeks to prohibit.

Georgia Receivables Inc. v. Welch

Collections company could not enforce health club membership contract against defendant since the contract did not specify the exact date on which her right to cancel the contract expired.

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