How do you define a scam? Does your definition include anything where you have to put down money upfront in order to get discounts later? Maybe it should. Meet Stephen and Jean Liang of Kansas City, Missouri. They went to a presentation for a travel club, and ended up joining for $7,500– with the condition that they could cancel after 3 days. Before they left, they were offered a discount for Red Lobster. They thought it was a bonus for joining the club. It wasn’t.
From CNN:
During the presentation, Stephen and Jean were told they could get discounted condo rates and other travel benefits around the world. They decided to join — for $7,500. Jean said they were assured they could cancel within three days.
Before Stephen and Jean even left, they were offered a discount coupon for Red Lobster.
“We really enjoy Red Lobster,” Jean said. “We thought it was a bonus for joining.”
They were asked to sign a piece of paper after they received the card. The Liangs didn’t think much about it.
“We thought we needed to sign it to show we’d gotten the card,” Jean said.
But, unfortunately, Stephen and Jean didn’t realize that by accepting the Red Lobster card, they had used the services of the travel club. And by signing that piece of paper, they were waiving their right to cancel their membership.
But the couple soon found out the next day when they tried to cancel.
Jean said they felt deceived. “This is really, really wrong. A person’s word is what they are.” The couple found out the hard way that it doesn’t always work that way.
The BBB warns consumers that they receive lots of complaints about these travel clubs. Here’s what they have to say about them:
“Vacation clubs, special travel agent training and bargain-finder software, often aren’t good deals because initial costs are rarely recouped by any future savings on travel costs since the bargains and special deals don’t really exist as portrayed in the sales pitches,” said the BBB’s spokesperson. “Consumers need to be very wary of travel club offers and research the companies extensively before committing any money or giving out credit card or bank account information.”
It’s better to save your pennies than bet them on a deal that may never come.
Watch out for the ‘free’ stuff [CNN] (Thanks, prameta1!)
(Photo: danesparza )
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When will people see these ponzi/pyramid schemes from the start? They are all over the news and the net ALL the time.
I don’t mean to say it’s their fault, but they’re the ones that neglected to read the fine print.
Always read before signing anything,… that’s rookies 101!
And anything that involves an hour’s (or more) of a sales pitch is already not worth what they are asking, otherwise it wouldn’t take an hour (or more) to talk you into it.
And the ole saying: “if it sounds too good to be true, IT IS!!!!!!!”
@Poisonous Taoist:
Yup. They were too stupid to accept the Red Lobster card without reading the fine print. There was no scam here, just plain incompetence.
I can’t feel bad for people who fall for scams that are 100+ years old. So stupid.
Oh wait! I got a great way to make money! Only $20 and I’ll tell ya!
Travel clubs are notorious for bait-and-switch, misrepresentation and outright lying to sell memberships. The BBB was correct in saying that “initial costs are rarely recouped by any future savings on travel costs since the bargains and special deals don’t really exist as portrayed in the sales pitches.” This happened to my grandparents in Florida (a hotbed for this type of scam), and only contacting the Attorney General finally got them their refund months later.
The thing that makes me blame the op the most is I’ve actually done these thing before (as the salesperson) and I can tell they felt pressure to sign and so instead of leaving, they wanted to PLEASE the salesperson so the were signing up with the intention of canceling, NEVER DO THIS!
If you know you are going to cancel, then don’t sign up in the first place, or you’ll just be dealing with a rude salesperson again days later, and once again they’ll be putting the pressure on you and taking your cancelation personal.
@snoop-blog: I agree. No reason to try to “please” a salesperson, they’ll forget you as soon as you walk out the door either way.
wait, nobody said “hah, who eats at Red Lobster?” yet…
@JoeTan: Is it “get a job you lazy bum”?
If so… *hands JoeTan $20 ZWD*
If you sign it, it’s legal. Ask yourself, why is this have to be a legal document. If you get a coupon in the paper, no signature, probably OK. If you have to sign something for that coupon, probably NOT OK, look in deeper.
@Git Em SteveDave is a poor substitute for LindsayJoy: Same goes for telephone calls. If they ask you to say your name, the date, or anything identifying, watch out. Why does this have to be a “legal” call.
Why did they even GO to the presentation? Let me guess, they were giving away “free” gifts, right?
I know I am preaching to the consumerist choir here–but for the love of God people, STOP GOING TO SALES PRESENTATIONS.
@xwildebeestx: Not always. I sell cars, and granted there are hundreds of people that i remember faces and no names, there are quite a few that I remember every detail about, name, first and last, what they bought, what they put down, what they traded in… you get the idea. But a great salesperson is always thinking about the next sale and that is why most of their sales are nothing but numbers to them. Because it takes “x” amount of numbers to be sold, before you get to eat.
Meal at Red Lobster – Free
Trying to scam the scammers – $7500
Finding out you are an idiot – Priceless
@CreativeLinks:
Thank you, I could not say it better.
Funny, just read the same type of scam in of all places a Reader’s Digest at the Doctors office.
Going to these types of sales presentations is tantamount to dinner with the Devil. You think you go in with the upper hand, but the Devil knows your weaknesses, in this case dinner at Red Lobster.
and this, my friends, is why you never sign anything you didnt read first…especially just after a sales pitch
Any “club” that requires you to spend $7,500 in order to save money is a scam.
This reminds me of that home improvement club they are always advertising on home improvement channels. Something direct? I looked them up online. Tons of people who sat through an hour long presentation and then pressured into paying $7,500 to join only to find out it isn’t any great service. It is just set up like catalog showrooms were in the 70′s.
@primo.avanti: Never enter a pyramid scheme on an empty stomach?
@Git Em SteveDave is a poor substitute for LindsayJoy: or drunk. or stoned for that matter…
But, unfortunately, Stephen and Jean didn’t realize that by accepting the Red Lobster card, they had used the services of the travel club. And by signing that piece of paper, they were waiving their right to cancel their membership.
This is why you read the fine print. Personally I’d be pretty careful about joining some service with a $7500 entrance fee just for the purpose of getting or doing one thing, then canceling before that money is due. If the company knowingly allows this, I’d be expecting some sort of a catch along the way.
If this was one of the sales pitches where they advertise
“FREE SOMETHING just for listening” and the FREE SOMETHING was coupons/gift certificates for Red Lobster, shouldn’t they be entitled to them even if they cancel? I know people who have gotten the free gifts without signing up for the product offered. If you don’t mind giving up an hour of your time, and you can say “no” then it’s not so bad. I just don’t know why these people said “yes” instead of “no”.
@samurailynn: Because they were assured they could cancel within 3 days. That’s why they signed up. I guess you could say the players got played. game, set, match!
I hate blaming the victim, but jeez, it’s not like this is some new, elaborate scam. Putting 7500 down? WTF! “They were asked to sign a piece of paper after they received the card. The Liangs didn’t think much about it.”-and therein lies the problem
@bohemian: DirectBuy. I think they were covered on here but I don’t feel like searchin’.
BTW, how many people here have $7500 laying around in pocket cash to spend on a program to receive discounts on future travel and condo packages?
It is not just the amount of $, or the “travel” purpose of spending the $, but spending the $ just to receive a discount on travel. The OP must sure like to travel to justify $7500 expenditure so as to receive some discounts.
Why would they pay the money if they probably knew they were going to cancel? I mean $7500 is alot of money…did they give this large expense zero thought?
I know were arent suppose to blame OP but they didnt read the contract plain and simple. Does it suck? Yes it sure does but who’s fault is it?
If there was no signed paper contract then they should take them to small claims court. If there is one they should also send in said contract for all of us to read.
Just think … if the Liang’s kept kosher, they would have declined the red lobster card, not signed the form, and still have their $7500.
Just saying …
“A fool and his money are soon parted”, they say.
Anybody that’s got $7,500 to toss around on such frivolous offers can surely afford the cost of this lesson anyway.
Never sign anything. Never.
I’m still trying to figure out why you would need to spend $7,500 in order to save on travel. There are tons of places to get things way cheaper than the normal advertised price. Hotwire and Priceline come to mind. I even found something through Cruise Critic where you could get a discount on unbooked rooms on a cruise as long as it was close to the ship out date plus they gave you a bunch of the cruiseship fun money. There are plenty of legit ways to save a few bucks.
On this topic, why do people still fall for buying timeshares? I don’t know anyone who has ever bought one and kept it for more than a few years or didn’t feel ripped off.
$7500? What kind of savings could they possibly have been buying into? WTF do they vacation that would justify that kind of money? Maui? Montenegro? The French Alps?
Geez… how about a little sympathy here. Yes, EVERYBODY should read the fine print… no, not everyone is savvy enough to do so.
These are older people. There’s a reason that douche bag companies like this target older people… they don’t always function at the same level they used to. They tend to be more trusting (scammers weren’t nearly so prevalent 30 years ago) and they bow to intimidation much easier.
How is this NOT the companies fault? Sure the people should have spent 12 hours reading the fine print in depth, at what is often written at a 56th grade level, but the company is designed to essentially lie to scam money. The people working this system need a swift bat to the shins.
This doesn’t sound right. If they thought it was a “bonus” why did they go an cancel? Why not just not take the deal to begin with. I think they were just in it for a coupon, and when it started taking forever to get out, they just signed what ever they could. Not bashing, or anything it’s the wording don’t sound right, smells like a cover-up of a mistake.
It sucks, but Caveat emptor
I wonder what kind of commission the salesperson got. He probably at a much fancier restaurant than Red Lobster, that’s for sure! Travel Club offers are almost always a scam. Buyer Beware!
Didn’t the elderly have ponzi schemes and ripoffs back in their day, too? They were a more trusting generation, I suppose, so I guess it’s hard to teach them.
Someone pointed out the scam was in Reader’s Digest in the doctor’s office waiting room. It’s great the article was there – it’s probably the only way to get the message to these old people.
What the article fails to mention is the discount was for up to $10,000 off your next Red Lobster meal-they were actually quite savvy.
[end sarcasm subroutine]
There’s an old saying about it being impossible to cheat an honest man. That’s not completely true, but it is a great deal easier to cheat someone who is looking to get something for nothing…
In this case it is not completely appropriate to blame the OP as people are doing. Is honor and honest business so completely dead in the United States that we are to mock someone who still expects people to be good to them? The criminal here is the shark that put together such a horribly deceitful scam. They should have their arms cut off.
The OP now knows not to trust people. They learned the hard way, as so many other people do. And we smile, laugh at their folly, and continue with our day, content to allow this sort of unethical business to pass without criticism?
@Corporate-Shill: Was wondering that too. If they have $7,500 to throw around on something as frivolous as a travel club, they’re probably not hurting without this money.
Meanwhile, that’s almost 9 months rent for me.
Sucks to be them, but we’ve all heard that statement about what happens to a fool and their money…
Reminds me of the time I went to a timeshare presentation so I can get a discount on Disney World tickets. I was actually interested in learning about this whole timeshare deal, so I figure why not. What the guy hadn’t counted on was that I could do math, so every time I asked a question about fees and such the salesman would totally change the subject. He also played the sympathy card saying he’s taking care of two adopted children, not that I don’t believe him, it’s just that he brought it up during the presentation to get sympathy points. And when I didn’t agree to buy he was rude saying I would never be “invited” in again. Well fine, you can keep your exclusive “community” to yourself, and I’ll enjoy my own vacations without having to pay you.
“We really enjoy Red Lobster”
Right there you knew they were in trouble.
Wow. I’ve worked for my school and they hand me a lot of things to sign. I always, always read them thoroughly before doing so, even though I don’t expect them to be attempting to screw me. I was probably the first one to catch a typo on one of the documents last year that they had to fix.
its really sad that they got such a terrible deal on what sounds like a crappy timeshare system.
timeshares are awesome if you buy the right one.
seriously, i’m not sure how much my mom originally put down (cant be very much since when she bought it, she was a single mother of three with 2 full time jobs) but every year she renews her membership for about $500 and she gets a certain amount of points. this year i spent a week in vegas in a two bedroom, two bath, luxury unit with stove, full size fridge, all dishwear, etc. (this unit could have been priced easily at $900+ for the week)
my mom is planning a week trip somewhere around christmas.
every year you get this really thick catalog of all the places you can go. for the most part, you can pretty much go anywhere.
unfortunately it is a little more to go overseas, but that’s something i think would be expected.
@Dakota Courtois: You are wrong. It is “I’ve got a great way to make money. Give me $20 and I’ll tell you.”
I went to a presentation for a vacation club; they ask you how many vacations to you take, how much do you spend, they add it all up and say “spend 7500 now and you’ll save lots more over the next (5,10,15) years!”
The one we went to only cost us $1100 bucks, promised plane ticket rebates, discounts on special travel weekends, etc. And the math worked out, ASSUMING:
1) you took all the trips you said you’d take and
2) they stay in business beyond 18 months.
Yes, they went out of business 18 months later. Or perhaps it was just 12 months. Either way, it was $1100 down the drain.
Since then I’ve instituted the “I don’t spend over $500 on the spur of the moment without sleeping on it” policy that’s saved me a couple of times since then.
I’m surprised that they didn’t think before signing something. Think about it. You just signed up for a club for $7,500 with the condition that you could cancel in three days. You are then presented a coupon if you SIGN something shortly after you join a club that you want to quit. Doesn’t that sound suspicious.
If something is free, there’s a catch. What should you do? Don’t take it UNLESS you know what is attached to make it free and are willing to take that risk.
Short and simple, you will probably pay/give more than the value of something that’s free.
DON’T sign for something unless you READ (not know) what you are signing for.
@damitaimee: They can be a good value in certain circumstances. For example, if you have several couples who can vacation together in a multi-room condo or if you will really use the kitchen to save on meals while vacationing. However, there are a LOT of fees and rules that they don’t tell you up front.
@XianZhuXuande: Well put.
@Coolmatt49: For older people, this mentality of trust no one is completely foreign to them. Additionally, what they were TOLD and what the legal speak written were two different things. Sounds like there was never a meeting of the minds and in that case the contract is null and void.