9.28 Credit Refusal: Cash Is King at Twin Cities Athletic Club (Objs. 1-4) As ma
ID: 386771 • Letter: 9
Question
9.28 Credit Refusal: Cash Is King at Twin Cities Athletic Club (Objs. 1-4) As manager of the Twin Cities Athletic Club, you must refuse the application of Zoë Lanier for an Extended Membership. This is strictly a business decision. You liked Zoë 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 multiservice 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 Zoë'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 Drop 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 Zoë is far in debt, you would feel guilty allowing her to plunge in any more deeply. Your Task. Refuse Zoë Lanier's credit application, but encourage her cash business. Suggest that she 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 Zoë Lanier, 3100 South Vista Avenue, Apt. 310, Boise, ID 83705.Explanation / Answer
From
Bryan Smith
Manager, Twin Cities Athletic Club
Boise- 83704
Date: September 18, 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. We appreciate your interest in fitness and a healthy lifestyle through the membership plan. We regret to inform you that we are unable to process your application due to the failure in meeting the required criteria.
The rejection is based on the fact that your credit rating is very low and does not meet the standards set to avail credit based services. 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 have failed to make payments on time in the past which disqualify you from getting the extended membership. We value our customers and hence we cannot involve in any activities that increase their debt.
Though we cannot process your credit 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 plan allows you to reserve space on the Racquetball and handball courts and also to avail 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 inquire with Experian to learn more about your credit report. You are eligible to avail your free credit report from Experian if you mention this application. Pease feel free to contact us in case of any queries.
Yours Sincerely,
[Signature]
Bryan Smith
Manager, Twin Cities Athletic Club
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