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| Premier Travel Closes After Legal Battles |
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December 13, 2004
Premier Travel International, a Florida-based travel club, has filed for Chapter 7 bankruptcy, leaving thousands of its members high and dry. With the club's closing, members who paid up to $6,000 to join have no way to use the club's benefits.
Until its closing, Premier Travel had been engaged in a running series of legal disputes with Florida officials, who challenged the company's right to market and sell travel services. The company paid $107,000 in fines, but denied any wrongdoing. However, the fine and costly legal bills apparently took their toll.
The company's legal tangles began in late 2002. Charges were filed - but later dropped - alleging the company was engaged in a scheme to defraud consumers. Then the Florida Department of Agriculture and Consumer Affairs continued to press civil actions against the company.
Premier drew a large number of consumer complaints. Many consumers complained that the company used high-pressure sales tactics to sell memberships that offered travel discounts easily obtained from other travel sellers. A settlement in March of this year provided at least 200 consumers with compensation.
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