Las Vegas Athletic Clubs review: cancellation policy issues

I signed up for LVAC and moved from Las Vegas to Chicago immediately after for work. I NEVER attended the gym other than the initial sign up. Upon realizing I would have to relocate back to Illinois, I called to cancel and mailed documentation in support of my move. I thought I was fine. Fast forward 10 months later, I see a collection on my credit report for $900+. I NEVER STEPPED FOOT IN THIS GYM! I called to see how I could rectify and they state they never received my cancellation documents and have no record of my call, but I did call!

I ask for a manager, BILLY NEWSOME and he tells me I need to pay $300 and a $50 cancellation fee, $350 to get this removed from my credit report. I inform him I NEVER attended the gym, never used the service, and emailed him proof of my relocation OUT OF STATE. BILLY NEWSOME verifies the relocation dates and says, pay the $350 by August 15, 2017 and we will remove it.

HOW IS THIS ETHICAL? Did they intentionally not process my cancellation to get more money from me? You can clearly see, I never utilized the gym's services. This is unprofessional, unkind, and unscrupulous. Imagine if they do this to thousands of people. Next time you cancel a gym membership, get the cancellation IN WRITING. Lesson learned! BEWARE!