Sometimes you just don't want to admit that you were taken in by a scam artist.  You feel stupid, or maybe just plain foolish.  But others have the same fears and concerns--and  you'll feel better when you hear that they have had the same experience.

The best way to be able to recognize a scam is to hear what the con artists say, and to know how the scam works.  When you know what the scam is, you will be better able to resist the pitch.  

It's the best way to "stay ahead of the scam, and to stay smart!"

 A reader writes in that she purchased a $1.95 product from an on-line retailer named “Dazzle Smile”. Since then she has received over ten calls from the same retailer trying to sell her everything from wrinkle cream to weight loss programs. She was also encouraged to enter a lottery, which the retailer called a sweepstakes. The reader notes that after making the purchase she did an internet search of the company and found several sites full of “hundreds of complaints” from consumers. She warns others to thoroughly research a company before sending money, to make sure that you understand the terms of a purchase, and to “opt out” of receiving any other calls or emails from a company that is trying to get you to purchase additional items.  Posted September 1, 2009

 

A reader from Kansas reports that he and his wife are very frustrated by a recent experience with the Roark Vacation Travel Club while in Branson, MO. After hearing a sales presentation that promised that they could go on vacations at huge discounts of 30-70 percent, they purchased a membership for $3,946. During the “high pressure sales pitch” the salesperson stated that their representatives would beat any web prices on travel, and promised that it was easy to book on line or to call CRI and have them take care of the travel. They were also told that they would have three days in which to cancel their membership if desired.

Unfortunately, upon returning home they tried to use the Club, but were unable to do so as they did not get their “membership number” until well past the time limit to rescind the sale.  As a result, they could not make an informed decision about keeping the membership until it was too late to cancel. Unfortunately, now that they have had the time to do more research about the cost of travel, they have learned that they could meet or beat any deal that they get with this travel Club. This reader now feels that he spent almost $4,000 to get to get great vacations at highly discounted rates but that with very little effort on the Internet he can get the same or better deals on his own for free.  Posted August 4, 2009.

According to the Federal Trade Commission (FTC), consumer complaints about travel consistently rank among the top five categories in the FTC-Attorney General complaint system, and annual losses to travel-related fraud are estimated to exceed $12 billion. The FTC offers the following advice if you are considering purchasing a Travel Club:

·       Contact the state Attorney General, Consumer Protection Agency and Better Business Bureau where you live and where the company is based to see if there is a history of complaints on file.

·       Before you buy, ask about your ability to cancel the contract, sometimes referred to as a “right of rescission.” Many states give you a right of rescission, but the amount of time you have to cancel may vary. If a right of rescission isn’t required by state law, ask that it be included in your contract. 

·       Make sure that you know when the deadline for rescission starts, and be sure that you have time to do independent investigation before the deadline. If there is any verbal agreement to extend the deadline to allow you to finish your vacation, make the seller put it in writing. 

·       If you decide to cancel the purchase , cancel it in writing. Send your letter by certified mail, return receipt requested, so you can document what the seller received. Keep copies of your letter and any enclosures. You should receive a prompt refund of any monies you paid, as provided by law.

·       Use a credit card to make your travel purchases. You may be able to dispute the charges with your credit card company if you don’t get what you pay for.

If you have already been a victim of this type of practice, file a complaint with the FTC by calling toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov/ftc/complaint.htm. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to thousands of civil and criminal law enforcement agencies in the U.S. and abroad.

One reader recently told us about a “travel scam” that he encountered in Mexico. He rented a jeep in Cozumel for a couple of hours from a foreign rental company. He was instructed to top off the tank prior to returning the vehicle and was told to go to a certain gas station nearby. When he pulled in to the station after less than 40 miles of driving, the gauge still registered as full. However, when he began pumping the gas he realized that something was wrong as it continued to fill up far beyond what he believed that he had used.   He looked inside the car at the gas gauge, and it was still registering as full! When he looked back to the pump, he realized that a gas station worker had taken the nozzle out of the tank, and that the pump registered a higher cost than it had shown when he had stopped it! He tried to complain to the worker who appeared to not speak English. He demanded to speak to a supervisor, who told him that him that it was probably the rental shop that must have rigged the gauge so it said full when it was not full and therefore the company was getting free fuel at his expense. When he then argued that the worker had changed the cost of the fuel when he wasn’t looking, the supervisor just shrugged. The unhappy reader decided to call their bluff, and gave them the amount that he believed he owed and drove off. 

Here are his tips on how to avoid a similar problem when traveling in a foreign country:

·       Track your miles and estimate fuel usage prior to fill up. Stop the gas pump as soon as it fills up to the amount that you think you have used.

·       Be sure you understand the exchange rate in a foreign country. Fast talking, busy merchants and restaurant servers are known to spot a tourist who does not appear to know the exchange rate and will short change them.

Be sure to use rental companies who operate in the United States if possible. Consider taking out the damage insurance for the rental.

Other readers have reported using a foreign car rental company who will have someone on a scooter follow the customer and when the car is parked they will disable the venicle, causing you to have to call for costly repairs.

 Posted June 21, 2009