You signed up for a Prepaid Membership with the promise of a fixed annual rate "for life." Then one day, you checked your statement and saw your rate had jumped—sometimes by 150% or more.
This isn't an isolated incident. It's a documented pattern that has resulted in over $320 million in settlements—and the behavior continues.
What Happened in July 2024
In July 2024, thousands of 24 Hour Fitness members with Prepaid Memberships reported sudden, dramatic rate increases:
"I've been a member for 19 years at a low rate. In July 2024, my rate was raised significantly. I was never notified of any class action lawsuit."
— Consumer complaint, Top Class Actions
Many members reported their contracts specifically stated rates could not increase by more than 5% per year—yet they saw increases of 100%+ overnight.
The Broken Promise
When you signed up for a Prepaid Membership, 24 Hour Fitness made a specific promise:
"In exchange for signing up for a Prepaid Membership, customers would be entitled to a fixed Annual Renewal Amount for life, so long as they remained Prepaid Members in good standing and timely paid their Annual Renewal Amount."
— Class Action Complaint, U.S. District Court for the Northern District of California
Despite this promise, 24 Hour Fitness began increasing rates in April 2015 and has continued to do so periodically ever since. Each time, they pay settlements—then do it again.
The Settlement History
24 Hour Fitness has a documented history of settlements for rate increases and billing issues:
On June 8, 2018, the U.S. District Court for the Northern District of California granted final approval to a full-relief settlement valued at over $24 million. Class members received full refunds of improper rate increases, and their rates reverted to the original amount for three years.
Source: Chimicles Schwartz Kriner & Donaldson-Smith LLP with Tycko & Zavareei LLP as co-counsel
While focused on billing after cancellation, this settlement established a pattern of 24 Hour Fitness ignoring consumer contracts. Keller Grover LLP served as co-lead counsel representing 1.5 million class members.
Source: Keller Grover LLP
Why It Keeps Happening
Despite paying hundreds of millions in settlements, 24 Hour Fitness continues this pattern. Why?
Arbitration Clauses Block Class Actions
Most modern 24 Hour Fitness contracts include arbitration clauses that prevent class actions. This means each consumer must fight individually—and most don't.
Settlements Are Cheaper Than Compliance
The math works in their favor: most people give up, and the occasional settlement costs less than honoring lifetime rate promises for millions of members.
The Friction Is Intentional
Every barrier—unclear cancellation processes, unresponsive customer service, complex legal requirements—reduces the number of people who fight back.
What You Can Do Now
Find Your Original Contract
Look for language about rate locks, lifetime rates, or limits on annual increases. This is your evidence that they broke their promise.
Document the Increase
Screenshot before/after billing statements. Note the exact amounts and dates. Calculate the percentage increase.
File Individual Arbitration
Under AAA rules, you pay $225 to file—24 Hour Fitness pays $1,500+. The cost imbalance often leads to settlement offers.
Contact Class Action Attorneys
New cases may be forming. Firms like Chimicles Schwartz, Tycko & Zavareei, and Keller Grover have successfully sued 24 Hour Fitness before.
Report to Your State AG
State Attorneys General have consumer protection divisions. California has particularly strong auto-renewal and consumer protection laws.
The Pattern Is Clear
24 Hour Fitness has paid over $320 million in settlements since 2010. They've faced multiple class actions for the exact behavior you're experiencing. Yet the pattern continues.
Your individual action matters. When enough people file arbitration claims, the economics change. When enough people report to state AGs, investigations happen. When enough people document their cases, patterns become undeniable.
Key Takeaways
- July 2024 saw mass rate increases on 'lifetime rate' contracts
- $24M settlement in 2018 for the same behavior—rates restored for 3 years
- Arbitration clauses block class actions but individual claims cost 24HF $1,500+ each (you pay only $225)
- Document your original contract and the rate increase
- Contact class action attorneys—new cases may be forming