Spring is on the way, and spring break vacations can't be that far behind. But a word of caution; spring is the time of year when travel scams come out of hibernation.
"Some unscrupulous companies take advantage of consumers' desires to get a good deal on travel," said Ohio Attorney General Cordray. "They offer 'free' vacations, cheap flights and other perks, but when consumers try to cash in, the companies invalidate the offers or simply stop responding. It is important to watch out for these deceptive bait-and-switch tactics."
In fact, the word "free" is often a tip-off that the item being pitched isn't quite on the up and up. No matter what they tell you, marketers don't make any money when they give something away free, which is why they hardly ever do it.
Cordray says that in the last two years he has received nearly 300 complaints about travel clubs and travel agencies. One consumer said she attended a sales presentation from a vacation company that promised her three days to cancel. She paid $2,500, but when she tried to cancel, she said the company ignored her calls and never refunded her money.
Another consumer said he signed a two-year membership with a travel club that promised travel amenities, including lodging, food, gas and entertainment. Despite paying $2,900 and following all the rules, the consumer said he never received the promised benefits.
Last September, Florida Attorney General Bill McCollum sued Suncoast Incentives LLC, saying its offer of a travel club with unlimited free travel was nothing but a scam. McCollum charged the company enticed victims to purchase travel club memberships for thousands of dollars, but failed to provide the incentives advertised. McCollum says his suit was prompted by the more than 500 consumer complaints his office received.
Victims received advertisements for sales seminars that featured images of various commercial cruise ships. The advertisements encouraged consumers to attend the seminars and receive a free cruise. Once at the seminars, consumers were allegedly told they would never have to pay retail price for travel again if they joined the travel club. Membership fees ranged from $2,495 to $7,495, and annual renewal fees ranged from $199 to $249.
Here are some suggestions that will help you stay out of trouble when booking travel:
• Check companies' reputations before you pay. Search a travel company's name on the Attorney General's and Better Business Bureau's Web sites to see if other consumers have filed complaints against the company. Check with the Ohio Secretary of State to make sure the company is registered to do business in Ohio.
• Be skeptical of postcards, phone calls and e-mails that promise a free vacation. Businesses may use giveaways to persuade consumers to call and then pressure them into buying an over-priced package or travel club membership. You may be able to find better deals with a local, reputable travel agent. Other times, you will be able to save money by booking your own flights and hotel reservations through the Internet or telephone.
• Don't give in to high-pressure sales tactics. If you attend a sales presentation, you may be encouraged to make a purchase on the spot. Instead, insist on time to think about the deal and do not make a payment until you have all the information you need to make a decision. Don't do business with companies that make you feel uneasy or rushed.
• Guard your personal financial information. Don't give your debit card or credit card number to a company you don't know or don't trust. Some consumers report travel clubs that make unauthorized withdrawals from their accounts or refuse to let them cancel their contracts.
• Read the fine print. A travel club contract may include annual fees, maintenance costs or other unexpected charges. To avoid surprises, read the contract to find out exactly how much the membership will cost and how you can cancel it. Look for exclusions or conditions that will limit your ability to get a refund.
• Get everything in writing. Make sure all verbal promises are put into a written contract; otherwise, they are not guaranteed. If a company refuses to put an agreement in writing, don't sign the contract.
• Pay with a credit card. When you pay with a credit card, federal law allows you to dispute unauthorized charges of more than $50 with your credit provider. You may not have the same protections if you pay with a debit card.
