Reference no: EM13917120
Credit Refusal: Paying Cash at Atlanta Athletic Club
As manager of the Atlanta Athletic Club, you must refuse the applica- tion of Cherie Liotta for an Extended Membership. This is strictly a busi- ness decision. You liked Cherie very much when she applied, and she seems genuinely interested in fitness and a healthful lifestyle. However, your Extended Membership plan qualifies the member for all your test- ing, 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 Cherie'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 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 Cherie is far in debt, you would feel guilty allowing her to plunge in any more deeply.
Your Task. Refuse Cherie Liotta'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 Cherie Liotta, 2015 Springdale Hills, Apt. 15, Sandy Springs, GA 30328.
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