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For the second time in 2021, Better Business Bureau® (BBB®) advises consumers to use caution when responding to demand letters from Litchfield, Illinois-based travel companies.
Numerous consumers tell BBB they received letters from various travel clubs demanding payment for past dues. Consumers tell BBB they believe they cancelled their membership years ago only to receive an “Overdue Notice” that features a large red stamp indicating that it is the “Final Notice” the company will give the consumer to make payment.
Consumers have contacted BBB about debt claims made by various businesses, including Castaways Vacation Club, Funseekers, Sealand Travel Club, and Tradewinds Vacations. All of the businesses share the same address - a P.O. Box in Litchfield - and have an “F” rating, the lowest on BBB’s scale.
“You should never be coerced into paying a debt you do not owe,” BBB St. Louis president and CEO Michelle L. Corey said. “Make sure to investigate any claims made by a company before you pay. Make sure the company is following rules set by the Fair Debt Collection Practices Act.”
An Austin, Texas, man told BBB he received a demand letter from Sealand Travel Club in February 2021 which said he owed $2,827 in past dues. After receiving the demand letter, he said he called the business. He said he asked for his case to be arbitrated, but he said the company would not go to arbitration with him.
“They took us a long time ago,” the man told BBB. “Eleven years had passed, so it was out of sight, out of mind for me until I got this letter. No legitimate company is going to wait 11 years for their money.”
A couple from Henderson, Nevada, told BBB they received a demand letter from Tradewinds Vacations in March 2021 that indicated they owed the company $1,900 in past membership dues. The couple believed they had cancelled their membership in 2012.
“I was so annoyed at being bothered by them 10 years later,” the wife told BBB. “We didn’t owe them anything.”
A man from Spring, Texas, told BBB he received a demand letter from Castaways Vacations Club in December 2020. He said the business was seeking just over $2,900 for past dues and fees to end his membership. The man said he ended his membership in 2010 and had not heard from the company in years. He contacted the company and negotiated his exit payment to $1,500, but did not pay, saying he didn’t believe he owed any money.
Since BBB issued a news warning centering on Castaways in March 2021, the company has changed how it has responded to BBB complaints. It is answering complaints with the following statement:
“Thank you for the additional information regarding the clients listed above. As a good faith gesture after receiving this new information we are cancelling all debt, past, present and future, that we show is owed by the above consumer and will show that their membership is cancelled.”
When contacted about claims of an old debt, consumers should be aware that there are often legal time limits (called Statutes of Limitations) within which a creditor or debt collector must start a lawsuit or the claim may be “barred.” In most states, debt collectors can still attempt to collect debts after the statute of limitations expires, but a debt collector filing or threatening to file a lawsuit after the statute of limitations has expired may be violating the Fair Debt Collection Practices Act. Consumers may want to consider consulting with an attorney before responding to demands to pay an alleged debt that is several years old.
The businesses at the Litchfield address appear to have some affiliation with William Bailey or his wife. Bailey previously has been sued by state officials in Indiana, Missouri, Texas and Wisconsin for how he operated various travel businesses. Several of Bailey’s previous companies have been the subject of BBB consumer warnings.
BBB tips on safe vacation planning:
- Research any business and its owners carefully before paying any money. Check the company’s BBB Business Profile at BBB.org.
- When searching for travel packages on the Internet, avoid using broad search terms. Using broad search terms can sometimes lead you to websites that look official, but are designed to trick users.
- If you attend a meeting where vacation club plans are sold, don’t give into high-pressure sales tactics. Take your time to make a decision and research what you are purchasing.
- Make sure you get all the details in writing. If you purchase a travel club membership and have second thoughts about the purchase, you have a limited time to rescind the contract and get your money back. Refer to the Federal Trade Commission’s Cooling-Off Rule for more information.
- Pay by credit card whenever possible in case you need to challenge the payment.
- For more information about travel scams, refer to a 2018 BBB study.
Read about BBB Accreditation Standards and BBB Standards for Trust.
