Attorney General Gansler Charges Hagerstown Karate School

BALTIMORE, MD ( September 30, 2009) - Maryland Attorney General Douglas F. Gansler announced today that his Consumer Protection Division has filed administrative charges against Allstar Kicks, Inc., located at 13102A Pennsylvania Avenue in Hagerstown and its owners, Michael Bolding and Julie Bolding. The business and its owners are charged with failure to renew registration and post security with the Division under Maryland’s Health Club law. Despite the company’s lack of registration and bonding, Allstar Kicks sold health club memberships and collected more than three months’ advance payment from consumers. In addition, the Division alleges that the business has attempted to collect debts not owed in violation of Maryland’s Consumer Debt Collection Act.

A public hearing on charges will be held at the Office of Administrative Hearings, 11101 Gilroy Road, in Hunt Valley, on December 4, 2009, at 10:00 a.m.

Under Maryland law, health clubs, self-defense schools and weight loss centers are required to register prior to selling health club services. The law also requires facilities to post a bond or other security with the Division if they collect more than three months of payment in advance from members or charge an initiation fee of more than $200.00.

“It is especially important in the current economic climate for consumers to check that their health clubs are properly registered and bonded before they join,” said Attorney General Gansler. “If not careful, consumers may lose their hard-earned money if their health club goes out of business.”
The charges seek an order requiring the business and its owners to cease and desist from selling health club services in Maryland unless they have complied with the registration and bonding requirements and to return all payments collected in violation of the Consumer Protection Act and Health Club law. The Division is also seeking payment of civil penalties and costs.
Attorney General Gansler urges consumers to visit the Attorney General’s website at www.oag.state.md.us/healthclub/ or call the Consumer Protection Division at 410-576-6350 before they join a health club, weight loss center or self-defense school to ensure it is properly registered and bonded. The website also contains tips for consumers considering joining health clubs, weight loss centers or karate schools.