Legislation targets unethical travel clubs with cooling-off period

JEFFERSON CITY, Mo. -- Branson travel club owner Jim Kilroy says giving people time to rethink their decision to join will be good for consumers and the travel industry.

He's hoping a proposal that aims to weed out unscrupulous travel clubs from Missouri's tourism industry will help accomplish that goal.

"It gives people a cooling-off period, which will eliminate a vast majority of complaints," said Kilroy, president of Travel More Now.

The measure by Sen. Larry Gene Taylor requires travel clubs to register with the attorney general for $50, with a provision for annual renewal, and requires clubs to give customers a window of three business days to cancel their contract and get their money back.

Taylor said the requirements should force out of business clubs that promise show tickets or discounted hotel rooms to customers and don't deliver.

"What this does is protects the consumer, and guarantees them they will either have their show or be reimbursed," said Taylor, R-Shell Knob, whose southwestern Missouri district includes the tourist draw of Branson.

The legislation easily passed May 13 as the legislative session wrapped up, and is awaiting action by Republican Gov. Matt Blunt, who is expected to sign it.

But Democratic Attorney General Jay Nixon wanted the legislation to be stronger. He already has gone to court and won reimbursement for some customers who felt misled by travel companies, and other cases are pending.

Taylor said requiring clubs to declare themselves up front will make it easier to track and get rid of the bad players. Nixon said he agrees with allowing consumers to back out of contracts, but he worries that wording differences between the bill and current law defining types of vacation clubs could impede outstanding litigation.

Overall, he said, "if people lie when they're presenting stuff," the attorney general's office will go after them, no matter what they're called.

The measure applies to clubs with membership fees of at least $750, which Kilroy said ensures that it covers time shares and other vacation-planning businesses, but not things like auto club memberships.

Most of the industry does a good job, Taylor said, but a few bad companies can ruin the business and hurt the reputation of Branson. He said the bill would help disgruntled customers have their concerns addressed more quickly.

Ross Summers, president of the Branson Lakes Area Chamber of Commerce, pushed for the measure and said the requirements are important to protect tourists.

Summers said his office receives more complaints about travel clubs than all other things combined.

"The companies who participate in these types of sales in many cases are more of a fly-by-night or disreputable companies," he said. "There are obviously some operations that are longtime companies within the community, but since it is a totally unregulated industry, some have taken advantage of the situation."

Taylor said legitimate travel clubs sought the legislation.

"They want rules to be played by, because they can make money playing fair, and so does the community," Taylor said. "We don't want to overregulate anything, but without parameters we have problems."

The legislation requires travel clubs to post a bond if they commit fraud or don't provide reimbursement for canceled contracts.

The measure also allows customers to file complaints with the state against travel clubs, and gives the clubs 30 business days to resolve the matter before facing penalties.

Those who violate the law -- from not reimbursing someone to not paying the $50 registration fee -- face a felony charge, with a sentence of up to four years in prison and a $10,000 fine.

Summers said the bill doesn't go as far as he would like -- for example, he'd prefer giving customers longer to back out of a contract -- but is a good starting point.

"For people who come to Branson and feel they've been taken advantage of, it is a step in the right direction," Summers said. "We hope the problem will be somewhat muted."

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Travel club bill is SB274.

On the Net:

Legislature: http://www.moga.mo.gov

Branson Chamber: http://www.bransonchamber.com