Tip of the Week: Avoid Travel Fraud (8/9/99)

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	Avoid Travel Fraud Financial Tip of the Week by Deloitte & Touche OnLine August 9, 1999

The FTC nails travel firms for misrepresentations, and warns consumers.

See our archive of previous tips on your money, your taxes and your financial plan.

The Federal Trade Commission has cracked down on travel fraud. On August 3, it filed charges against four travel companies for misrepresenting their services and failing to inform consumers about restrictions on travel packages. In addition, there were 47 state actions against 25 companies and two restitution orders filed on behalf of the Department of Transportation.

The message is that travel fraud is widespread. The FTC issued these warning to help consumers protect themselves.

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, the FTC says.

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, the FTC says. 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.