Hongkonger paid HK$200,000 for Physical contract that will last until she is 85: lawmaker

A Hong Kong woman paid HK$200,000 (US$25,640) for a three-decade Physical Health Centre membership, which would have lasted until she was 85, prompting lawmakers to call for more regulations on prepaid contracts.

The gym chain has been at the centre of more than 3,600 complaints filed with the Consumer Council, with the claims involving HK$123 million as of Friday after Physical announced a “temporary closure” last week.

Lawmaker Kwok Wai-keung said on Saturday he came across a case where a woman in her 50s spent almost HK$200,000 on what was described as a “lifelong plan” with Physical, which would remain in effect until she turned 85.

“Of course, the longer the plan, the cheaper the fees per year,” Kwok said. “While Hongkongers are known for their long life expectancy, one should take into account the company’s ‘life expectancy’ too, and whether they would have such a long rental contract.”

He added that it would be unreasonable if the money intended for the early purchase of services became capital for the companies to invest, which they get to keep the wins, but customers would have to suffer if they lost money.