Ballys Total Fitness I Mean Total Rip Off lowered my Fico denied for Mortgage Rockford Illinois

I recently joined Ballys this year. I enjoyed going there. I ran short of money in the fall of 08. I got behind 1 month, caught back up and then was late again ( about 26 days).
Two weeks ago I paid them 80.00.( my membership is 29.00 a month). I was sure that I was current and even called Bally to make my payment over the phone. The agent told me my account is in good standing and to make sure that I make my next payment on time.

Yesterday I went to Chase to have a Mortgage letter of approval drawn up. My lender pulled my credit report and Ballys reported to all three bureaus that I'm 90 days past due. this lowered my fico to the point that FHA will not even accept me. The lender told me it caused my score to drop 50 or 60 points.
I immediatly logged into my Bally account and saw that the last payment I made was for the current month and the rest was applied to the following month leaving a balance of 40.00 due from October of 08. ( this is how they do it)

I totally understand how important it is to pay your bills on time. I just cant understand why Ballys would do that and expect me to ever darken their doorstep again. I WONT! My payoff is 355.00 which I am paying tomorrow. I also understand thats its difficult to have the negative reporting removed.

so, now, I lost the house I was ready to buy yesterday. They ruined my good credit rating, and made me look like a loser in front of my loan officer.

My company has Health club benefits and they offer membership at Ballys at a discounted rate. I plan on contacting my benefits manager today and tell them not to endorse this peice of s**t company!.. Just wait until my bill is paid and I have my receipt in hand. I'm going to the facility and will cause a scene!!

STAY AWAY FROM BALLYS!!

Jim
Rockford, Illinois
U.S.A.