Telemarketing Travel Fraud
Hello...you have been specially selected to receive our SPECTACULAR
LUXURY DREAM VACATION offer!
Have you ever been
tempted to sign up to win a "free" trip at a fair, trade show or
restaurant? If so, you may get a phone call, letter, unsolicited fax,
email or postcard telling you that you've won a vacation. Be careful.
It may be a "trip trap." The vacation that you've "won" likely isn't
free. And the "bargain-priced" travel package you're offered over the
telephone or Internet may not fit your idea of luxury.
While some travel
opportunities sold over the phone or offered through the mail,
Internet or by fax are legitimate, many are scams that defraud
consumers out of millions of dollars each month.
The word "offer" can be a clue to hidden charges. When you get the
phone call, or place the call in response to a postcard, letter, fax
or Internet ad, you also get a sales pitch for a supposedly luxurious
trip - one that you could pay dearly for.
The salesperson may
ask for your credit card number to bill your account for the travel
package. Once you pay, you receive the details of the "package," which
usually include instructions for making trip reservation requests.
Your request often must be accompanied by yet another fee. In
addition, many offers require you to pay upgrade costs to receive the
actual destinations, accommodations, cruises or dates you were
promised. Some offers may require you to pay more for port charges,
hotel taxes or service fees.
See a pattern
developing? New charges are being added every step of the way. You may
never get your "bargain" trip because your reservations may not be
confirmed or because 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 pitches usually include:
Oral
Misrepresentations. Particular schemes vary, but all fraudulent
telemarketers promise you a "deal" they can't possibly deliver.
Unfortunately, you won't know it until your money's gone.
High Pressure/Time Pressure Tactics. Scam operators often say they
need your commitment to buy immediately or that the offer won't be
available much longer. They typically brush aside questions or
concerns with vague answers or assurances.
"Affordable" Offers. Unlike fraudulent telemarketers who try to
persuade people to spend thousands of dollars on an investment
scheme, fraudulent travel telemarketers usually pitch club
membership or vacation offers in a lower price range. The offers
sound reasonable and are designed to appeal to anyone who is looking
for a getaway.
Contradictory Follow-up Material. Some companies may agree to send
you written confirmation of your deal. However, it usually bears
little resemblance to the offer you accepted over the phone. The
written materials often disclose additional terms, conditions and
costs.
How To Protect
Yourself
Unpleasant surprises can ruin a vacation, especially when they cost
money. That's why it pays to investigate a travel package before you
buy. But it can be difficult to tell a legitimate sales pitch from a
fraudulent one. Consider these travelers' advisories:
Be wary of "great
deals" and low-priced
offers. Few legitimate businesses can afford to give away products
and services of real value or substantially undercut other
companies' prices.
Don't be pressured into buying. A good offer today usually will be a
good offer tomorrow. Legitimate businesses don't expect you to make
snap decisions.
Ask detailed questions. Find out exactly what the price covers and
what it doesn't. Ask about additional charges. Get the names of the
hotel, airports, airlines and restaurants included in your package.
Consider contacting these businesses directly to verify
arrangements. Ask about cancellation policies and refunds. If the
salesperson can't give you detailed answers, hang up.
If you decide to buy, find out the name of the travel provider - the
company that is getting your reservations and tickets. This company
usually is not the telemarketer.
Get all information in writing before you agree to buy. Once you
receive the written information, make sure it reflects what you were
told over the phone and the terms you agreed to.
Don't buy part of the package - the air fare or hotel stay -
separately from the rest. If the deal is not what you expected, it
may be difficult to get your money back for the part of the package
you purchased.
Don't give your credit card number or bank information over the
phone unless you know the company. One easy way for a scam operator
to close a deal is to get your credit card number and charge your
account. Sometimes fraudulent telemarketers say they need the number
for verification purposes only. Don't believe them.
Don't send money by messenger or overnight mail. Some scam artists
may ask you to send them a check or money order immediately. Others
may offer to send a messenger to pick up your payment. If you pay
with cash or a check, rather than a credit card, you lose your right
to dispute fraudulent charges under the Fair Credit Billing Act. 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. If possible, do this as soon as you receive your
statement. In any case, the law gives you up to 60 days after the
bill's statement date to dispute the charge.
Check out the company before you buy. Contact the Attorney General
in your state or where the company is located to see if any
complaints have been lodged against the travel firm or the travel
provider. Be aware that fraudulent businesses often change their
names to avoid detection.
If in doubt, say
"no." Trust your instincts. It's less risky to turn down the offer
and hang up the phone.
Where to Complain
Several organizations can provide additional information and help you
with complaints.
Your state Attorney General or the Attorney General in the state where
the company is located probably has a division that deals with
consumer protection issues.
The American Society
of Travel Agents, Consumer Affairs, at 1101 King Street, Alexandria,VA
22314, may be able to mediate your dispute with an ASTA member.
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices in the
marketplace and to provide information to help consumers spot, stop and
avoid them. To file a
complaint or to get free information
on consumer issues, visit
www.ftc.gov or
call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The
FTC enters Internet, telemarketing, identity theft and other fraud-related
complaints into
Consumer Sentinel, a
secure, online database available to hundreds of civil and criminal law
enforcement agencies in the U.S. and abroad.
|
FEDERAL TRADE COMMISSION |
FOR THE CONSUMER |
1-877-FTC-HELP |
www.ftc.gov |
|
August 2000 |