Credit Refusal: Cash is King at Twin Cities Athletic Club As a manager of the Tw

Question

Credit Refusal: Cash is King at Twin Cities Athletic Club

As a manager of the Twin Cities Athletic Club, you must refuse the application of Zoe Lanier for an Extended Membership. This is strictly a business decision. You liked Zoe very much when she applied, and she seems genuinely interested in fitness and a healthy lifestyle. However, your Extended Membership plan qualifies the member for all your testing, exercise, recreation, yoga, and aerobics programs. This multi-service program is expensive for the club to maintain because of the large staff required. Applicants must have a solid credit rating to join. To your disappointment, you learned that Zoe’s credit rating is decidedly negative. Her credit report indicates that she is delinquent in payments to four businesses, including Total Body Fitness Center, your principal competitor.

You do have other programs, including your Drip In and Work Out plan, which offers the use of available facilities on a cash basis. This plan enables a member to reserve space on the racquetball and handball courts. The member can also sign up for yoga and exercise classes, space permitting. Since Zoe is far in debt, you would feel guilty allowing her to plunge in any more deeply.

Your task: Refuse Zoe Lanier’s credit application, but encourage her cash business. Suggest that she can make an inquiry to the credit reporting company Experian to learn about her credit report. She is eligible to receive a free credit report if she mentions this application. Write to Zoe Lanier, 3100 South Vista Avenue, Apt. 310, Boise, ID 83705.

Explanation / Answer

From

John Alexander

Manager, Twin Cities Athletic Club

Boise-16

Date: September 17, 2018

To

Zoe Lanier

3100, South Vista Avenue

Apt. 310, Boise

ID 83705

Dear Zoe Lanier,

Thank you for your application for the Extended Membership in the Twin Cities Athletic Club with credit card privileges. We appreciate your genuine interest in fitness and a healthy lifestyle through the membership plan. We regret to inform you that we are unable to process your application since you do not meet the required criteria.

The rejection is based on the fact that your credit rating is decidedly negative. The multi service program under the plan which includes testing, exercise, recreation, yoga, and aerobics programs is expensive for the club to maintain and hence we require the applicant to have a solid credit rating to join. Your credit report from the credit reporting company Experian shows that you are delinquent in payments which disqualify you from getting the extended membership. You can inquire with Experian to learn more about your credit report.

Though we cannot process your request, we are happy to inform you that you are still eligible for the cash based programs which include our Drip In and Work Out plan. The plan allows you to use the available facilities on cash basis. The other highlights of the plan include ability to reserve space on a Racquetball and handball courts, yoga and exercise classes which are very helpful to ensure a healthy lifestyle.

We look forward to serve you in a better way through the cash based programs. You can avail your free credit report from Experian if you mention this application. Pease feel free to contact in case of any queries.

Yours Sincerely,

[Signature]

John Alexander

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