If you receive a postcard inviting you to a presentation on how to saving big money on travel, you might be wise to show some skepticism. These come-ons, usually offering some kind of incentive to attend -- can end badly for consumers.
A suit filed by the state of New Jersey claimed Global Travel Solutions, LLC and its owner, Jason A. Krieck, took payments from consumers for costly travel club memberships that promised steep discounts on vacation packages and other travel benefits, and then failed to deliver the contracted-for services.
Consumers were also charged monthly fees for the memberships. The defendants allegedly invited consumers to attend sales presentations for the memberships with free promotional items, and then failed to deliver the items.
Must pay $350,000
In a settlement with the state Global Travel Solutions is required to direct all billing and reservations companies to immediately stop trying to collect payments from consumers on the company's behalf. The company is also required to pay $350,000 to the state.
In addition, for a period of 5 years, Krieck is required to post a bond of at least $250,000 with the division if he opens, owns or operates any business in the state that sells merchandise to consumers. The defendants entered into the settlement without any admission of liability but has agreed to dissolve the business.
"We have stopped the sale of these allegedly worthless travel club memberships in the state and the continued collection activity against consumers who previously purchased memberships," said New Jersey Attorney General Jeffrey Chiesa.
He also advised consumers to be extremely careful when listening to an attractive sales pitch for any product, including travel and vacation packages.
Beware of travel scams
"Travel scams, offering free amenities and big discounts for cruises and airfare, can be shockingly effective at separating consumers from their hard-earned money," Eric T. Kanefsky, Acting Director of the New Jersey Division of Consumer Affairs, said. "These operations often begin with postcards inviting consumers to attend a presentation at which they will hear about amazing deals that really are too good to be true."
Kanefsky says consumers who purchased memberships based on sales presentations lost thousands of dollars. He said any consumer who receives a similar solicitation should be extremely skeptical.
To date, New Jersey has identified more than 700 affected consumers, the majority of whom paid between $995 and $9,995.00 for the Global Travel memberships, plus a $29.95 monthly fee.
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