Complaint Review: Utopian Travel - Vacation Travel Club - Beaverton Oregon

Travelers say club took them for ride

Complaints - A Beaverton firm is accused of bogus offers and threatening members

Friday, March 07, 2008LAURA GUNDERSON The Oregonian Staff

Utopian Travel's sales pitch -- free airline tickets in exchange for sitting through an evening presentation on a vacation club -- sounded familiar to many of the estimated 400 customers who paid an average of $4,500 to join.

But some said what came after surprised them. When customers who felt duped by the vouchers or memberships asked for refunds, they said, the Beaverton firm's operators refused to tear up contracts and return money -- even within a state-designated cooling-off period. Customers also said Utopian employees made threats of lawsuits and used unsettling language in response to complaints.

By Thursday, 22 Oregon consumers had complained to the Oregon attorney general's office, spokeswoman Jan Margosian said. The complaints, she said, assert that Utopian made bogus offers not only of free travel vouchers but also of airfare discounts and club travel savings. Margosian said the complaints also contend the firm categorically refused refunds.

"Everybody seems to think people in a business like ours are just making a ton of money," Wilson said. "But a business like ours is very expensive to operate. We just can't have people calling and changing their minds on a large purchase."

Wilson said she wrote much of the BBB rebuttal, but one of her employees must have written the stray-bullet line. Wilson said she was unaware of a Utopian representative threatening lawsuits.

Utopian sells memberships in Vacation Travel Club, a separate company headquartered in Michigan.

Scot Ender, who owns Vacation Travel Club, said he can't help Oregon customers get refunds. He said that he doesn't collect the large upfront membership fees and that his club makes its money from $169 annual dues.

Ender said he can't control the claims of his 14 associated distribution firms. He discourages them, he said, from touting cut-rate airfares or quoting percentages for club discounts.

"We offer substantial savings," said Ender, who put the membership of his 18-year-old club at 35,000.

Utopian Travel has solicited customers in Oregon and Washington through postcards exclaiming, "We've been going crazy trying to contact you," and promising free airfare or cruises for hearing the pitch.

Wilson said she and her 25 employees hold gatherings in various Beaverton locations to pitch Vacation Travel Club to about 80 people a week.

Customers said Utopian employees pitched club membership as a lifetime access to exclusive travel and lodging discounts ranging from 10 percent to 50 percent.

The state is investigating the operation that's done business in Beaverton for six months.

Most of the 14 customers interviewed by The Oregonian said they were too afraid to comment publicly.

They pointed to the alleged threats, along with online postings of news articles about a 2002 capital murder case in Arkansas. Utopian owner Janet Wilson and her husband, Troy James Wilson, were charged with murdering a descendant of the Marshall Field's department store founder, although charges were dropped against Janet Wilson and her husband was acquitted.

Customers also said they were rattled by the firm's response to at least one complaint.

"You drew your guns and fired before the dragon even showed his ugly head," went a response signed "Janet Wilson, President, Utopian Travel LLC," countering one recent complaint to the regional Better Business Bureau. "This is a good way for people to get wounded with stray bullets."

Janet Wilson, who operates Utopian with her husband, said she has many happy customers and doesn't pressure anyone. "We take pride in our business, and we have nothing to hide," Wilson said.

Wilson confirmed her business must provide customers with a cooling-off period. However, she said, she doesn't grant every refund -- even those requested within three days. Wilson said she takes requests on a case-by-case basis.

"Everybody seems to think people in a business like ours are just making a ton of money," Wilson said. "But a business like ours is very expensive to operate. We just can't have people calling and changing their minds on a large purchase."

Wilson said she wrote much of the BBB rebuttal, but one of her employees must have written the stray-bullet line. Wilson said she was unaware of a Utopian representative threatening lawsuits.

Utopian sells memberships in Vacation Travel Club, a separate company headquartered in Michigan.

Scot Ender, who owns Vacation Travel Club, said he can't help Oregon customers get refunds. He said that he doesn't collect the large upfront membership fees and that his club makes its money from $169 annual dues.

Ender said he can't control the claims of his 14 associated distribution firms. He discourages them, he said, from touting cut-rate airfares or quoting percentages for club discounts.

"We offer substantial savings," said Ender, who put the membership of his 18-year-old club at 35,000.

Utopian Travel has solicited customers in Oregon and Washington through postcards exclaiming, "We've been going crazy trying to contact you," and promising free airfare or cruises for hearing the pitch.

Wilson said she and her 25 employees hold gatherings in various Beaverton locations to pitch Vacation Travel Club to about 80 people a week.

Customers said Utopian employees pitched club membership as a lifetime access to exclusive travel and lodging discounts ranging from 10 percent to 50 percent.

Joel Glick of Southwest Portland didn't buy a membership, but he said he attended a pitch to obtain the vouchers. When they did not pan out, he said, he complained to the attorney general's office and Better Business Bureau.

In a response to Glick's complaint, Utopian's rebuttals, which the BBB invited, went to the bureau and Glick. One included the stray-bullet line. Glick posted the statements on several consumer Web sites.

The rebuttal says that because independent vendors supply the vouchers, Glick's complaint about Utopian was misguided.

"Your very first step in this effort, and the most rewarding for you, would have been to contact Utopian Travel first before you blew your whistle to the Attorney General and to the BBB," the rebuttal says. "You drew your guns and fired before the dragon even showed his ugly head. This is a good way for people to get wounded with stray bullets. I guess you did not understand that Utopian is not responsible for denying your gift."

In at least two cases, Oregon customers of Utopian said the firm's operators threatened defamation lawsuits when they spoke of filing official complaints.

"I think that's absolutely ridiculous," Wilson said. "That's not how we do business."

At least one of the consumer Web sites featured copies of newspaper articles from Arkansas about arrests of Troy and Janet Wilson in New Mexico on suspicion of capital murder in 2002.

Troy Wilson stood trial and was acquitted in the shooting death of Bettine DeDubnic, who had been letting the Wilsons live rent-free in Arkansas.

Wilson said the dismissed Arkansas allegations have no bearing on her business in Oregon.

"What the state of Arkansas did was a bad thing," Wilson said. "I feel that I am a very good person, an earnest person -- regardless of what you read."

Laura Gunderson: 503-221-8378; lauragunderson@ news.oregonian.com

Please check out this expose on Utopian Travel that ran on KATU in Portland, OR.

http://www.katu.com/news/specialreports/16372721.html

Travel club's 'exclusive' deals don't exist, many say

By Thom Jensen and KATU Web Staff

Video BEAVERTON, Ore. - Did you get one of those 'travel itineraries' in the mail promising free airline tickets? Lots of people did and many are saying they were duped into giving away thousands of dollars for exclusive travel bargains that don't exist.

The travel vouchers have logos that look like they come from the airlines but don't be fooled. Everyone who gets one of the itineraries is told that if they attend a Utopian travel seminar at a business center in Beaverton, they will get two free airline tickets.

However, while there many are persuaded into buying travel club memberships that cost anywhere from $3,500 to $12,000 with promises of free cruises and exclusive member bargains.

Once Larry and Nila Butler got home from Utopian's seminar, they said they realized the promises did not exist and tried to cancel their credit card payment. But by then it was too late, the payment had already gone through and the money was gone.

Customers like Ross Villegas paid thousands of dollars for lifelong bargains. But when KATU News logged onto Utopian's Web site using Villegas' customer ID and password (with his permission), we did not see any real deals, like exclusive hotel bargains.

In fact, the prices were $20 to $30 more on Utopian's Web site than what we found on free Web sites. And the same was true for airfare, cruises and tropical resort packages. You can find the same or better deals on Web sites like Orbitz, Travelocity, Hotels.com and Priceline.

We found the owner of Utopian Travel, Janet Wilson, at the company's Beaverton office and she swore several times she would sit down and give us answers for the customers who felt they were scammed.

After we never heard back, we returned to look for her. We were confronted by her son, Bryan, a Utopian salesman who said she was in but still had no time to talk to us despite her promises that she would answer our questions.

At one point, we finally did catch Wilson in the doorway and she said she would reimburse anyone who wanted their money back.

However, those who bought the expensive packages aren't so sure that will happen. The Butlers received a letter from the company stating they could not obtain a refund and that refunds were not offered simply due to buyer's remorse.

Under Oregon law, refunds are supposed to be available within three days of purchase. The Butlers applied for a refund within one day and were still denied.

The Attorney General's office in Oregon has received more than 20 complaints against Utopian and is investigating. Meanwhile, Utopian's attorney said owner Janet Wilson will not be answering any of our questions.

The company has had problems in other states. The Attorney General offices in Indiana and Wisconsin also investigated complaints against Utopian's vacation travel club and fined them. In Missouri, where Wilson used to work in the vacation travel club's home office, the company received a record $1.9 million fine.

Jes

Minneapolis, Minnesota

U.S.A.