A gym in Canada did not cancel my account and suddenly claims that I owe them money for almost two years, despite the fact that I never signed an agreement with them (I signed it with a different branch of this brand, but they transferred my account without notice to a different gym when I moved) and despite that fact that I sent them a cancellation letter when I moved to a province without this gym brand's presence (I had been informed by the gym that they would cancel my account immediately, i.e. without the advance notice requirement, if I moved to a place which has no presence of their brand).
So now they are threatening to send this account to a collection agency and still do not want to cancel "my account" with the gym (unless I pay "the debt") and keep adding balance to it. Is this legal at all? What is my best course of action? I do not want to pay extortion money. Can I report them to the police or do I have to file a court case? If a collection agency adds a record to my credit profile, how can I dispute it in this case? Is it really so easy to impact one's credit profile without some due process? I have an excellent credit profile without any negative records whatsoever, and with a credit score of 800+.