A club not worth belonging to: Massachusetts cracks down on three alleged vacation scams

I have yet to find a single travel club that’s worth joining. Some, if not all, are outright scams. The latest, according to Massachusetts Attorney General Martha Coakley, are Only Way 2 Go Travel, of Plymouth, Mass., Fantasia Travel Group of Methuen, Mass., and Outrigger Vacation Club of Tulsa, Okla.

The state has filed a complaint and obtained a temporary restraining order against the companies for allegedly selling sham vacation club memberships that cost consumers hundreds of thousands of dollars without providing the promised benefits.

Here’s a video clip of the AG explaining why the action was necessary.

In a statement, the state claimed these companies offered a “classic bait and switch scheme” that preyed on travelers who were simply hoping to reduce the costs of their summer vacations.

According to the complaint,

The defendants lured consumers through mail and telephone solicitations to their Plymouth and Methuen presentation centers by promising them prizes and gifts of airline travel, weekend getaways, and rebate cards.

Once consumers arrived at the presentation centers to claim their prizes, defendants subjected these consumers to high pressure sales tactics designed to induce those consumers to purchase memberships in the Outrigger Vacation Club.

The complaint also alleges that consumers entered into the membership contracts based upon false promises that they would receive better-than-Internet wholesale prices on vacation packages, cruises, accommodations and other travel services.

None of the consumers who complained to the Attorney General’s office ever received the prizes or gifts initially promised to them, according to the state. Instead, they left the Plymouth and Methuen sales presentation venues having spent as much as $8,500 for vacation club memberships that were essentially worthless when compared with travel arrangements they could make themselves using one of the major Internet travel search engines or by calling airlines, hotels and resorts directly.

The vacation club scam is an epidemic, often targeting retirees on fixed incomes. Many victims spend a significant amount of their life savings on the product and are too embarrassed to talk about it after they’ve been taken, thus unwittingly helping to perpetuate the fraud.

Do you know of any travel clubs that are worth belonging to? If so, do tell.

(Photo: Today is a good day/Flickr Creative Commons)

  • Chuck

    I’m not anywhere near retirement age but I’m not a kiddie anymore and this kind of thing just baffles me. I have a 75 year old father who would tell people like this to $#@! off. Not every senior citizen is an idiot but common sense should prevail regardless of age. If it sounds too good it probably is a rip off. My old dude dad is so cheap he won’t even send out Xmas cards lol. Probably why he’s never been grifted (griffed?) – whatever.

  • Bill

    I don’t know of any vacation clubs worth joining, and I strongly recommend that people considering this do a lot of research.

  • Carol

    @Chris
    This travel club scam is reminiscent of the travel insurance fiasco you reported on until you were threatened into silence with the lawsuit. Too bad our bureaucrats in Florida couldn’t take a lesson from their colleagues up north in MA. The AG in MA acted quickly to stop these clubs. How many years did the Florida insurance scam go on before anything was done and what is going on now? Hopefully now that your legal situation has been resolved, can you you update your readers as to what is happening in Florida regarding the travel agencies who had been selling the outlawed insurance plans?

  • Joe Farrell

    How can anyone get you what you can’t negotiate for yourselves these days =

    Scams are all about greed – not the scammers – but yours. If you are trying to get something for a crazy cheap price you deserve to lose your money – the old saying goes “An honest person cannot be scammed.”

    End of story.

  • Sean

    Ha! I love this post! 

    Whatever you think of Travel Clubs, I am here to change your mind. 

    I am about to launch a new online travel club, and it’s not in any way shape or form a scam. Not only that, but I am happy to show you who the direct suppliers are and you can try to get the same deal with them that I do, but you won’t…

    I have been developing this for a couple years after working in the travel industry for a decade and then seeing the myriad of travel club scams out there! 

    Most are either a scam an MLM pyramid scheme or both!

    I do feel bad for everyone who has been scammed by travel clubs etc. for so many years, it is truly a shame. I even worked for one for two months until I figured out what they were up to and that guy is now wanted in both Canada and Mexico for fraud, on the run in Asia and making a killing selling his scam club over there.

    But it was this experience that convinced me that this could be done right, affordably  and really make sense to the average traveler/family whether you want to stay close to home or travel the world.

    I hope to have it ready to launch in about 3 weeks could be 4…, and I will contact Chris to see if he will allow it to be plugged here, promoted in some way, since he asked in his post above for someone to show him a club worth belonging too.

    But I won’t post the url without his permission, or even the name of the club.

    We aren’t all bad guys out there…but I seriously do get it’s a massive problem.