How to Avoid Telemarketing Travel Fraud.

• Position: Brief Article

Have you ever been tempted to sign up to win a "free" trip at a fair, trade show, or restaurant? If so, you may get a phone call, letter, fax, email, or postcard telling you that you have won a vacation. Be careful. It may be a "trip trap." The vacation that you've "won" likely isn't free, and the "bargain-priced" travel package you are offered over the telephone or Internet may not fit your idea of luxury.

While some travel opportunities sold over the phone or offered through the mail, Internet, or by fax are legitimate, many are scams that defraud consumers out of millions of dollars each month, warns the Federal Trade Commission. The word "offer" can be a clue to hidden charges. When you get the phone call, or place a call in response to a postcard, letter, fax, or Internet ad, you also get a sales pitch for a supposedly luxurious trip--one that you could pay dearly for.

The salesperson may ask for your credit card number to bill your account for the travel package. Once you pay, you receive the "package," which usually includes instructions for making trip reservation requests. Your request often must be accompanied by yet another fee. In addition, many offers require you to pay upgrade costs to receive the actual destinations, accommodations, cruises, or dates you were promised. Some offers may require you to pay more for port charges, hotel taxes, or service fees.

See a pattern developing? New charges are being added every step of the way. You may never get your "bargain" trip because your reservations may not be confirmed or because you must comply with hard-to-meet hidden or expensive conditions.

Telemarketing travel scams usually originate out of "boiler rooms." Skilled salespeople, often with years of experience selling dubious products and services over the phone, pitch travel packages that may sound legitimate, but often are not. Their methods usually include:

* Oral misrepresentations. Particular schemes vary, but all fraudulent telemarketers promise you a "deal" they can't possibly deliver. However, you won't know it until your money's gone.

* High pressure/time pressure tactics. Scam operators often say they need your commitment to buy immediately or that the offer won't be available much longer. They typically brush aside questions or concerns with vague answers or assurances.

* "Affordable" offers. Unlike fraudulent telemarketers who try to persuade people to spend thousands of dollars on an investment scheme, fraudulent...