Membership cost increase

[clubchamp98]

I put £120 a month into a fixed rate savings ACC.
This pays my fees every year and I get some interest on it.
usually matures about now so I have the cash to pay my fees on 1st January.

 

[sunshine]

Its really as NearHull says - a club cannot offer credit (delayed payment) without a Credit Licence, hence you need to outsource.

I don’t think you need a license to allow people to pay over the course of the year. I imagine you need a licence to lend money and charge interest.

 

[D-S]

I don’t think you need a license to allow people to pay over the course of the year. I imagine you need a licence to lend money and charge interest.

I believe you do as you are taking the money for an annual fee in a delayed form, thereby granting your debtor credit (in effect loaning them the money), that was at least how it was explained to us as Directors of the Club.

 

[upsidedown]

We fell foul of the FCA by offering a deferred payment to members over 12 months by charging them an admin fee. A rather large fine had to be paid, we now outsource DPS ,so get all our money from DPS up front and the company deals with defaulters ,late payers etc.The extra interest we get offsets the cost of this and free up office staff.

 

[Hobbit]

I believe you do as you are taking the money for an annual fee in a delayed form, thereby granting your debtor credit (in effect loaning them the money), that was at least how it was explained to us as Directors of the Club.

Exactly as you say. The member and the club have entered into a 12 month contract with by deferring an annual payment over 12 months, in some cases, at a zero rate of interest. Many people think that the zero interest means it isn’t a credit agreement - it is.

 

[badgergm]

Loo

Exactly as you say. The member and the club have entered into a 12 month contract with by deferring an annual payment over 12 months, in some cases, at a zero rate of interest. Many people think that the zero interest means it isn’t a credit agreement - it is.

Does this:

Gyms and golf clubs

Find out what permissions you'll need to apply to us for authorisation, and what we expect to see in your application.

www.fca.org.uk

not imply that Limited Permission is only required if more than 12 payments or more than 12 months? Provided no interest or fees charged then there is an exemption?

See also:

You do not need a credit licence to allow members to pay on an instalment plan

Articles regarding the regulation of golf membership finance are causing golf clubs unnecessary concern.

www.thegolfbusiness.co.uk

 

[Mandofred]

Membership increases......one club 10% to £1090, the other one....not sure how to calculate it since there are two options....either pay the full amount up front, which most people don't (I did the last 2 years) or what most do...goes from £700 up front and then £5 a round to £800 up front and £5 a round. So....part of that amount goes up over 10% but the other part stays the same....no idea how to figure that out, although I don't know if I will be a member there in the future.

 

[Orikoru]

This is a great post with interesting insights. Thank you.

I have always found it strange that clubs outsource the direct debit to a finance company like fairway credit. The golf club spends money over the course of the year, it doesn’t need your cash up front. I don’t understand why a club would encourage members to go into debt and pay interest to a third party instead of just letting them pay monthly. It doesn’t need to be a finance arrangement.

Maybe it covers their back and prevents people from quitting the club halfway through the year and just ceasing payments? I don't know.

My club uses Fairway Credit too, I used it for the first couple of years - it works out more overall, but also you repay it over 10 months rather than 12 so then it felt like March and April were free. Last year though I just paid the normal amount in full from mine and my wife's savings account and increased the amount I put back in it monthly instead. I'm not sure what I'll do this year, depends on how much they increase it I suppose.

 

[GB72]

Maybe it covers their back and prevents people from quitting the club halfway through the year and just ceasing payments? I don't know.

My club uses Fairway Credit too, I used it for the first couple of years - it works out more overall, but also you repay it over 10 months rather than 12 so then it felt like March and April were free. Last year though I just paid the normal amount in full from mine and my wife's savings account and increased the amount I put back in it monthly instead. I'm not sure what I'll do this year, depends on how much they increase it I suppose.

We used to have that problem at my old club and it was not stopped for years. People quit in October and re joined at beginning of the next subs year in April. As it was long term, respected members who did it, nobody else knew it could be done, they just let it continue.

 

[Orikoru]

We used to have that problem at my old club and it was not stopped for years. People quit in October and re joined at beginning of the next subs year in April. As it was long term, respected members who did it, nobody else knew it could be done, they just let it continue.

Haha, I wasn't even thinking about that - that's hilarious. Imagine leaving such a blatant loophole open.

 

[GB72]

Haha, I wasn't even thinking about that - that's hilarious. Imagine leaving such a blatant loophole open.

Amazing that those who knew the people running all the committees 'found' this loophole and nobody on those committees thought it would be an idea to close it. That said, I cannot complain as when I had had enough of the club (following the well quoted adage on here that if you do not like it, you can always leave and so I did) I left well before the end of the year and did not pay a single penny for that period.

 

[Voyager EMH]

I get a reduction after 40 years continuous full subs.
Only 4 more years to go.
Wish I hadn't had that gap from 1980-88.
First joined at start of 1974.

 

[patricks148]

Maybe it covers their back and prevents people from quitting the club halfway through the year and just ceasing payments? I don't know.

My club uses Fairway Credit too, I used it for the first couple of years - it works out more overall, but also you repay it over 10 months rather than 12 so then it felt like March and April were free. Last year though I just paid the normal amount in full from mine and my wife's savings account and increased the amount I put back in it monthly instead. I'm not sure what I'll do this year, depends on how much they increase it I suppose.

i think its precisely that. the club get the money upfront too.

 

[SwingsitlikeHogan]

Nice comprehensive and positive club and course update email in my Inbox this morning…the cynic in me thinks the renewal notification is about to drop…

 

[Captain_Black.]

I pay my fees up front every year.
But, what really surprised me recently was a member left / resigned in Sept.
Our fees are due in Jan.
As a passing comment, hI said to a group whilst having a drink, "I'm surprised he left in sept & didn't see the year out"
They all said, he probably paid by DD every month & the club won't chase him for the remainder.

Obviously, I wouldn't imagine the club would allow him to rejoin in the future, but even so I aways thought that once you had rejoined in Jan, you we're committed to the full year.

 

[Oddsocks]

Nice comprehensive and positive club and course update email in my Inbox this morning…the cynic in me thinks the renewal notification is about to drop…

Sounds like a **** sandwich has been ordered

 

[Deleted member 1147]

I pay my fees up front every year.
But, what really surprised me recently was a member left / resigned in Sept.
Our fees are due in Jan.
As a passing comment, hI said to a group whilst having a drink, "I'm surprised he left in sept & didn't see the year out"
They all said, he probably paid by DD every month & the club won't chase him for the remainder.

Obviously, I wouldn't imagine the club would allow him to rejoin in the future, but even so I aways thought that once you had rejoined in Jan, you we're committed to the full year.

We chase people if they owe us anything. Or if they owe a finance company I imagine they'd chase them up.

We threatened one fella that if he didn't pay up he'd never be allowed back, including county matches or open qualifying.

 

[Imurg]

I pay my fees up front every year.
But, what really surprised me recently was a member left / resigned in Sept.
Our fees are due in Jan.
As a passing comment, hI said to a group whilst having a drink, "I'm surprised he left in sept & didn't see the year out"
They all said, he probably paid by DD every month & the club won't chase him for the remainder.

Obviously, I wouldn't imagine the club would allow him to rejoin in the future, but even so I aways thought that once you had rejoined in Jan, you we're committed to the full year.

There are some clubs that, effectively, operate a monthly membership.
My 2nd club and another close by used to have monthly DD paid straight to them with no charge..
So you could stop paying and leave without penalty at any time
I think there was a clause that you couldn't rejoin for a year so you couldn't stop paying in November and start again in May...

 

[IanM]

If you resign from the club, you'll get the rest of the year full month's repaid. You are at liberty to resign in October, to avoid the winter, but don't expect there to be a vacancy and if there is, you will be billed for another joining fee!

I am about to pay my Newport subs. 1300 or thereabouts, although if this keeps rising, the 5 day membership at the Bristol for £500 less is becoming increasingly tempting. Although, I don't know what that would be like to play at. Wife is nagging me to move to St Pierre where she plays.

 

[D-S]

the 5 day membership at the Bristol for £500 less is becoming increasingly tempting. Although, I don't know what that would be like to play at.

Not the best, very dodgy after any rain - membership/comps etc. I would think Thornbury on a points package would be better. They’ve also done quite a lot of work on irrigation and tees there.