NEWARK, N.J. (Legal Newsline) - New York Attorney General Jeffrey Chiesa and the New Jersey Division of Consumer Affairs announced a settlement on Friday with a vacation club and its owner to resolve allegations of defrauding consumers.
Chiesa's office filed a lawsuit in March against Global Travel Solutions LLC and Jason A. Krieck, the company's owner, for allegedly taking payments from consumers for discount travel club memberships and failing to deliver the contracted-for services. Additionally, consumers were allegedly charged ongoing fees for the memberships.
The defendants compelled consumers to attend sales presentations for the memberships with free promotional items and then allegedly failed to deliver the items, Chiesa claims.
Chiesa's office has determined more than 700 consumers affected, the majority of whom paid between $995 and $9,995 for the memberships, in addition to a $29.95 monthly fee, he says.
"We have stopped the sale of these allegedly worthless travel club memberships in the state and the continued collection activity against consumers who previously purchased memberships," Chiesa said. "Consumers should be extremely careful when listening to an attractive sales pitch for any product, including travel and vacation packages."
Under the terms of a final consent judgment, Krieck must direct all reservations and billing companies to stop trying to collect payments from consumers on behalf of Global Travel Solutions. In addition, Krieck must pay $350,000 to the state and post a bond of at least $250,000 with the division for a period of five years, if he opens, operates or owns any business that sells merchandise to consumers in the state. The defendants admitted no liability in the settlement.