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Have you ever been tempted to buy one of those
bargain-priced travel packages sold over the Internet, or telephone? Be
careful. Your dream adventure may be a misadventure if you fall victim to one
of these travel scams. While some of these travel opportunities are legitimate,
many of them are scam operations that are defrauding consumers out of millions
of dollars each month.
How The Scams Work:
- These schemes take many forms. Often, schemes involve vacation travel
packages. A consumer pays hundreds of dollars or more to receive a travel
package that includes round-trip air transportation for one person and lodging
for two people in Hawaii, London, or another vacation place for a week. The
catch? You must purchase a high-priced, round-trip ticket for the second person
from the fraudulent travel operation or you must pay for costly accommodations
in less-than-ideal timeshares or resorts. You may end up paying more than what
it would cost if you purchased your own tickets in advance or bought them
through an airline or reputable travel agency.
- Another scam starts by sending you an e-mail message, or postcard,
stating: "You have been specially selected to receive a free trip."
The message instructs you to call a phone number, usually toll-free, for
details about the trip. Once you call, you are given a sales pitch for a
supposedly luxurious trip that is not free at all. Sometimes, a credit card
number is requested so that your account can be billed for the package. Only
after you pay are you sent the vacation package with instructions on requesting
reservations for your trip. Usually, your reservation request must be
accompanied by yet another fee. The catch here? New charges are being added at
every step of the way. And, you never get your "free" trip because
your reservations are not confirmed or you must comply with hard-to-meet hidden
or expensive "conditions."
- Telemarketing travel scams usually originate out of "boiler
rooms." Skilled salespeople, often with years of experience selling
dubious products and services over the phone, pitch travel packages that may
sound legitimate, but often are not.
These sales pitches usually include some of the following techniques:
- Oral Misrepresentations. Whatever the particular scheme may be, telephone
salespeople are likely to promise you a "deal" they cannot deliver.
Unfortunately, you often do not realize this until after you have paid your
money.
- High Pressure/Time Pressure Tactics. These scam operators are likely to
tell you they need your commitment to buy right away or that this special offer
will not be available tomorrow. Often, they will brush aside your questions
with vague answers.
- "Affordable" Offers. Unlike telephone fraud operators who try to
persuade people to spend thousands of dollars on a particular investment
scheme, travel scam operators usually pitch their membership or vacation offers
in the range of hundreds of dollars. Because this amount is often in the price
range of those planning vacations, offers may appear to be reasonably-priced.
- Contradictory Follow-up Material. Some firms may agree to send you written
confirmation of the deal. You will find, however, that the literature bears
little resemblance to the offer you accepted. Often, the written materials will
disclose additional terms, conditions, and costs.
How To Protect Yourself:
- No one wants unpleasant surprises on a vacation. Therefore, it pays to
thoroughly investigate a travel package before you commit to purchase. While it
is sometimes difficult to tell a legitimate sale pitch from a fraudulent one,
there are some things you can do to protect yourself. Be wary of "great
deals." One tip-off to a scam is that the offer is very low-priced. Few
legitimate businesses can afford to give away things of real value or to
undercut substantially everyone else's price.
- Do not be pressured into buying NOW. Generally, a good offer today will
remain a good offer tomorrow. Legitimate businesses do not expect you to make
an instant decision. Ask detailed questions. Find out exactly what the price
covers and does not cover. Ask if there will be any additional charges later.
Find out the names of the specific hotels, airports, airlines, and restaurants
that your package includes. You may wish to contact these places yourself to
double-check arrangements. Find out exact dates and times. Ask about
cancellation policies and refunds. If the salesperson cannot give you detailed
answers to these questions, this is not the deal for you.
- Get all information in writing before you agree to buy. Before purchasing a
travel package, ask for detailed written information. Once you receive the
information, make sure the written material confirms everything you were told
by phone. One easy way for a scam operator to close a deal is to get your
credit card number and then charge your account. Sometimes scam operators say
they need the number for verification purposes only. Never give your credit or
charge card numbers or any other personal information (such as bank account
numbers) to unsolicited Internet, or telephone salespeople. Do not send money
by messenger or overnight mail. Instead of asking for your credit card number,
some scam operators may ask you to send a check or money order right away or
offer to send a messenger to pick these up. Check out the company. Before
buying any travel package, check first with various government and private
organizations to see if any complaints have been lodged against the travel firm
calling you. Be aware that fraudulent firms change their names frequently to
avoid detection.
If in doubt, say "no." Sometimes an offer appears
legitimate, but you still have doubts. In that case, it is usually better to
turn down the offer and hang up the phone. Remember, if something goes wrong,
the likelihood of your receiving any money back is very slim.
What To Do If You Have Problems:
- If you have problems with a travel package, try resolving your disputes
first with the company that sold you the package. If you are not satisfied, try
contacting your local consumer protection agency, or Better Business Bureau.
- You also may contact the National Fraud Information Center, 1-800-876-7060
(9:00a.m. - 5:30 p.m.. EST, Monday - Friday). Or, write to the Federal Trade
Commission, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580.
Although the FTC generally does not intervene in individual consumer disputes,
the information you provide may indicate a pattern of possible law violations
requiring action by the Commission.
- If you charged your trip to a credit card, you may dispute the charges by
writing to your credit card issuer at the address provided for billing
disputes. Try to do this as soon as you receive your statement, but no later
than 60 days after the bill's statement date. In some circumstances under the
Fair Credit Billing Act, your credit card issuer may have to absorb the charges
if the seller does not resolve your dispute. If you did not authorize the
charge, you are not responsible for its payment.
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