More complaints
expected in airline
ticket deception

Nancy Tickets customers who
lost out are advised to
tell the police, too

By Debra Barayuga
Star-Bulletin

For the second time in a little over a year, residents have lost out on tickets purchased from Hawaii travel agents.

Always check out a travel agent before purchasing tickets, advises the state Regulated Industries Complaints Office, because if you are defrauded it can be difficult to get your money back.

In the latest case of consumers who paid for airline tickets that were apparently never purchased by the agent, at least eight complaints have been filed against Nancy Tickets ranging from allegations of engaging in deceptive practices to failure to refund money, and Jo Ann Uchida of RICO expects more.

Investigations into some of the complaints against Nancy Tickets have been completed and are being evaluated by RICO attorneys to evaluate what administrative action is needed, Uchida said.

In another travel agency case, nearly 2,000 customers who paid in advance for tickets they never received from James K.S. Lee are still trying to get their money back.

Lee has pleaded guilty to theft charges and is scheduled to be sentenced Nov. 5.

It's uncertain if consumers in the Jimmy's Travel case and the Nancy Tickets case will ever get their money back.

Uchida said that like attorneys, travel agents must set up a client trust account where client monies are deposited and withdrawn for specific purposes, such as travel services. Licensed travel agencies must show proof of this account to get their license.

The idea behind the account is to ensure that there is no commingling of funds. Under the law, using monies in the trust account improperly is theft. The law is designed to discourage travel agents from misappropriating funds.

The problem is if a travel agent is prosecuted criminally, there's sometimes no money for consumers to tap into, Uchida said. Travel agents are not required to be bonded.

The complaints office can file a petition or lawsuit against the travel agency to preserve any money still in the account and try to recover it, Uchida said.

She said it's a good idea for people seeking travel services to call the Consumer Resource Center for information. While the staff can't say whether a business is legitimate, it can provide an agency's complaint history and whether it is authorized and licensed to do business in the state.

"Sometimes people just assume everything will work out all right and operate on faith," Uchida said. But travel services are expensive, and it's not inappropriate for the public to check on whether someone is licensed.

Those who file complaints with RICO also should file a report with police, Uchida advised.

While the complaints office can take administrative actions against the agency, police can seek criminal charges if appropriate.

"We'll definitely be working with the police," she said.

Anyone with complaints about Nancy Tickets is asked to call the Regulated Industries Complaints Office at 587-3222 and ask to speak to an investigator.

TRAVEL INSURANCE Here are some tips that consumers should know when they set out to look for travel services. First, you should receive your ticket or other similar documentation for travel services from the travel agency, upon making full payment. And at the time of payment, the travel agency must provide the consumer making the payment with a written statement containing the following: The name, business address and telephone number of the agency. The amount of money paid, the date of payment, the purpose of the payment and an itemized statement of any balance due. The name and address of the financial institution that maintains the travel agency trust account. The name of the entity with which the travel agency has arranged services and other information, including types of accommodation, dates and times of services and all restrictions or conditions and fee assessments pertaining to the person's right to cancel, obtain a refund, change itinerary or make a claim for lost tickets. The cancellation provisions of the contract between the travel agency and the consumers, and the rights and obligations of both parties. Under a state law that regulates travel agencies, the travel agency must provide you with a written disclosure of your consumer rights no later than when the agency issues the ticket. -- Source: State Department of Commerce and Consumer Affairs