Special Contracts

Special Contracts

Health Clubs

When you are considering whether to join a health club, be
cautious of:

o joining clubs that have not opened - they might never open; o
low-cost "bait" ads - many "switch" you to expensive long-term
contracts;

o promises that you can cancel anytime and stop paying - check the
written contract for the terms of membership and any other
promises;

o the fine print - many low-cost ads and contracts severely
restrict hours of use and services;

o signing long-term contracts - consumer protection agencies
report that many consumers quit using the club within a few months;


o automatic monthly billing to your charge card or debit from a
checking account - these are easier to start than to stop; and o
unbelievably low one-time fees with no monthly dues.

Before you sign, be sure to:

o check with your doctor before you begin an exercise program;
o visit the club at the hours you will be using it;

o check to see that promised equipment/services are actually
available;

o talk to current members regarding their satisfaction with the
club;

o check out several clubs before you sign a contract;

o consider your commitment to a long-term program - good
intentions seem to fade as the reality of the hard work sets in;
o read the contract carefully before you sign; is interest charged
for a payment plan? Are all promises in writing?; and o check
with your local or state consumer agency or Better Business Bureau
for any laws in your state, cancellation rights or complaints
against the company.

Dating Clubs/Matchmakers

When you choose to deal with a dating service, be sure to check:
o from how far away the referrals might come;

o the economic/professional status of dates;

o that dates are club members;

o your ability to review the video/profile/picture, etc. of a
proposed date before your phone number is given or a meeting is
arranged;

o that the information in your file is clear, e.g., wishes,
interests, requirements, "won't accepts;"

o the length of the contract and the number of
dates/introductions promised;

o the cost of any additional fee to extend/renew/continue the
membership;

o any extra costs associated with club functions (parties,
picnics, trips);

o what the club promises to do for the basic fee - there might be
little relationship between the cost and performance of the club;
beware of very high priced companies;

o that all "guarantees" are in writing;

o for figures on its percent of success and the average length of
time needed to locate an acceptable spouse if the club
promises to find you a spouse; and

o the cancellation policy - check with your state or local
consumer agency for your legal rights; contact your consumer agency
or the Better Business Bureau to file a complaint.

Timeshares/Campgrounds

o Prizes and awards might be used in promoting timeshares and
campgrounds. They sometimes are overvalued or misrepresented.
Free awards might "bait" you into driving a long distance to the
property, only to attend a long high-pressure sales pitch to obtain
your prize.

o Be realistic. Make your decision based on how much you will use
it and if it provides the recreational and vacation purposes you
want. Don't decide to purchase based on an investment
possibility. It might be difficult or almost impossible to resell.

o Ask about such additional costs as finance charges, annual fees
and maintenance fees. Maintenance fees can go up yearly. o
Compare your total annual cost with that of hotels or your normal
vacation expenses.

o Ask about availability during your vacation periods. Ask what
other timeshares or campgrounds you may use with your membership.

o Talk to individuals, who already purchased from the company,
about the services, availability, upkeep and reciprocal rights to
use other facilities.

o Get everything in writing and make sure verbal promises are in
the written contract. Have an attorney review any
contracts/documents and make sure there are no blanks on the papers
you sign.

o Do you have cancellation rights? State laws vary. Check with
your local or state consumer agency.

o Check for any complaints against the company, seller,
developer and management company with your consumer agency or the
Better Business Bureau.

o To order a free publication on timeshares and health clubs,
contact the Federal Trade Commission, Public Reference Section, 6th
& Pennsylvania Avenue, N.W., Suite 130, Washington, DC 20580, (202)
326-2222.


Travel Scams

o Don't be taken by solicitations by postcard, letter or phone
claiming you've won a free trip or can get discounts on hotels and
airfares. These offers usually don't disclose the hidden fees
involved, for example, deposits, surcharges, excessive handling
fees or taxes.

o Some travel scams require you to purchase a product to get a
trip that's "free" or "two-for-one." You'll end up paying for the
"free" trip or more for the product than the trip is worth, and the
two-for-one deal might be more expensive than if you had arranged
a trip yourself by watching for airfare deals.

o Be wary of travel offers which ask you to redeem vouchers or
certificates from out-of-state companies. Their offers are usually
valid only for a limited time and on a space-available basis. The
hotels are often budget rooms and very uncomfortable. The company
charges you for the trip in advance, but will the company still be
in business when you're ready to take the trip? o Check the
reputation of any travel service you use, especially travel clubs
offering discounts on their services in exchange for an annual fee.
Contact your state or local consumer protection agency or the
Better Business Bureau.

o Request copies of a travel club's or agent's brochures and
contracts before purchasing your ticket. Don't rely on oral
promises. Find out about cancellation policies and never sign
contracts that have blank or incomplete spaces.

o Never give out your credit card number to a club or company with
which you're unfamiliar or which requires you to call 900 numbers
for information.

o Don't feel pressured by requests for an immediate decision or a
statement that the offer is only good "if you act now." Don't deal
with companies that request payment in advance or that don't have
escrow accounts where your deposit is held.

o Research cut-rate offers, especially when dealing with travel
consolidators who might not be able to provide your tickets until
close to your departure date.

o You can protect yourself by using a credit card to purchase
travel services. If you don't get what you paid for, contact the
credit card issuer and you might be able to get the charges
reversed. Be aware that you have 60 days to dispute a charge. See
page 20 for further information on billings and disputes.