[net.general] Travel Scams

shaprkg@sdcrdcf.UUCP (Bob Shapiro) (11/22/84)

     Article from 21 November Los Angeles Times.

     The Caligornia attorney general is suing the defunct National Student
Travel Center for more than $200000 in civil penalties as part of its
crackdown on schemes to bilk unwary travelers on air fares.
     "With federal deregulation, we are very, very worried that over the next
year or so there will be tremendous problems in airline travel," said Senior
Assistant Atty. Gen. Herschel T. Elkins, predicting several more suits will
be filed.

     The following are my comments:

     I agree with the attorney. There are entreprenours springing up all over
the place offering reduced or discount travel. Many of them are similar to
the above operation. They take your money and run or in some cases charge you
a annual fee and then give you exactly what you could have gotten without
them. Beware of any scheme offering you something which is too good to be
true especially companies which have you deal by mail rather than having a
local office where you can conduct your business.
     In California it is the law that funds such as travel deposits be placed
in separate accounts from the general funds of the business preventing them
from becoming lost when the business has a reversal. Violation of this rule is
the typical way in which the public's money is lost.
     By the way the public charter business a few years ago had a similar
problem so the CAB ordered them to place all of their funds in a bank escrow
account until they provided the services. If you purchase a charter you should
see that the check sent to the charter company is made out to a bank escrow
account and not the charter company itself. Thus in the case of a business
failure your money will be protected.

			Bob Shapiro