Gold's Gym Demanding payment of dues after terminating contract/mistake on their end Arcadia California

My wife joined Gold's Gym Arcadia approximately a year ago during their grand opening special promotion period.  Towards the end of her contract, my mother became ill and my wife was unable to continue to use the gym facilities due to her caretaking duties.  My wife paid for the remainder of her contract and asked to terminate membership.

Fast forward 3 months later, we get notified that we owe 3 month member dues and that her contract was not cancelled.  The manager, Marco, who handled her last transaction was transferred to another location and claimed to "not remember" what occurred.  My wife has not used her membership for the period they are asking (because it was cancelled!) but they are still demanding payment.

The operations manager, Denny Wen, said there was nothing he could do for us and to fill out the form online to speak with corporate.  He said that Marco should have given us a termination form but failed to do so, and it was basically our word against his with corporate.

Bad business practice!!!  Prospective members beware!!!!