LAW FROM GENERAL ASSEMBLY AIMED AT REINING IN TRAVEL CLUBS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, March 8, 1993                   TAG: 9303080068
SECTION: VIRGINIA                    PAGE: C2   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium
LAW FROM GENERAL ASSEMBLY AIMED AT REINING IN TRAVEL CLUBS
Complaints against travel clubs promising bargain vacations but employing high-pressure sales tactics have prompted the General Assembly to pass a law to make the businesses more accountable.
The Virginia Travel Club Act, effective July 1, makes it illegal for clubs to offer travel services unless they meet certain requirements, including registration and bonding.
Lauryne and James Green wish the law had been in place sooner.
The Alexandria couple received an invitation from a travel club promoting three "free" vacations, so they decided to attend a sales presentation last June.
By the time the Greens left Mediterranean Resorts Inc. in Vienna, they had signed a seven-year, $6,600 contract for 10 vacations at rates described as far below those offered by travel agencies.
But membership discounts were available only if the Greens signed up that day. "It was high pressure to the nth degree," Lauryne Green said.
The couple had paid almost $2,000 by last month, but have yet to visit Hawaii, Acapulco or any other vacation spot. After finally reaching an operator after two to three days of trying to get through on a toll-free number, the resort the Greens wanted was never available at the time they wanted to go.
In December, Green returned to the Mediterranean Resorts office to cancel the contract. She said the company refused, and one staff member said her wages would be garnisheed if she stopped paying her installments.
The Greens filed a complaint against the company with the state Division of Consumer Affairs. They are seeking to cancel their contract and receive a refund.
Bill Sauers, operations director for Mediterranean Resorts, said he wasn't aware of the Greens' complaints, but would work with the couple to resolve the problem.
The Greens are among hundreds of people who have filed complaints about travel clubs. The consumer affairs division has received 425 formal, written complaints about the clubs since 1990.
Under the new law, clubs must register annually with the state Consumer Affairs Division and pay a registration fee of $350. Each club also must file a $60,000 bond as proof the group will deliver on its promises.
The law also includes a seven-day right of cancellation, and provides for written disclosure of the terms and limitations of memberships when a contract is signed.
The law stipulates that clubs cannot say special priorities for reservations are available when such considerations generally are granted to the public. The clubs also cannot misrepresent the availability of lodging or other accommodations.
The American Society of Travel Agents endorsed the law. "It's an excellent idea because it's going to protect people from becoming the victim of a scam," said Brooks Bowen, co-owner of Travel Agents International in Henrico County.

by Archana Subramaniam by CNB