Travel Club Warning Signs

Do you ever get the feeling something just isn’t write? Ever have your gut try to stop you from making a decision?? Well, that is just your intuition picking up on some underlying warning signs. However, when it comes to a travel club presentation – one who isn’t versed in the scam tactics they use – may find it hard to see the wolf in sheep’s clothes. Below we have outlined a number of red flags you should be aware before attending a travel club presentation.

  • Did the sales agent, phone agent, or anyone refuse to give you their last name? Where they wearing a name tag with only their fist name? Did they purposefully not give you a business card? Did they not have a card? It has been reported to us that some companies sales staff consists of former convicts and felons who have been court ordered to no longer sell travel clubs. By hiding their last names they do not run the risk of you googling their name?
  • Where’s the logo? Some travel club companies are so fly-by-night that they don’t even put their logos on their marketing materials. It is much easier for them to change name every three to six months and not have extra materials that they would then have to discard. Being able to change names without having to print new marketing materials is a good way for a bad company to save money.
  • If a company only takes Paypal, there is a problem. Paypal has some of the most lax approval standards for companies out there. What this means to the unsuspecting travel club purchaser is that a company who uses only Paypal is considered too high risk to be a normal merchant. In more basic terms, to get approved to process someone’s credit card, you have to be vetted by a merchant companies underwriting department. Most merchants can see through the falsification of documents that the scam travel clubs use. They turn down travel clubs because they deem to be highrisk and susceptible to scamming the consumer. If a scam company cant get a normal merchant company, they almost always turn to Paypal.
  • Using a check to make a purchase. Writing a check to a travel club is almost as bad as wiring your money to someone you don’t know in Nigeria. If you are ever going to purchase a travel club – always – do it with a credit card. With a credit card you have a small window to create a chargeback and leverage the credit cards protections to unwind a bad decision. Writing a check means you have NO protection. To get your money back after writing a check would mean you would have to spend thousands of dollars hiring an attorney to take a travel club to court if the travel club scammed you. In many cases, it’s just not worth it as the travel club has already folded and no longer holds any assets to leverage against for a refund. Don’t be pressured into using a check.

Do you have other red flags? Let us know here.