Platinum Travel agrees to allow cancellations

October 30, 1994

Maryland Attorney General J. Joseph Curran Jr. announced last week that Platinum Travel Inc., a Virginia-based vacation membership club, and two of its directors agreed to a settlement under which Maryland consumers who wish to do so can cancel their membership contracts and stop payment immediately.

Those who bought their memberships in Maryland will also be able to receive refunds from a restitution fund into which Platinum and its directors will make payments.

In settling the charges, Platinum and its directors, Alan Resnick and Cynthia Glendinning of Savannah, Ga., did not admit any wrongdoing but agreed that Platinum and its president, Mr. Resnick, will no longer do business in Maryland.

According to the charges, Platinum lured prospective buyers with promises of free vacation prizes to its Pikesville offices as well as offices in Alexandria, Va. When consumers sought to claim their prizes, they were required to submit to a sales presentation, a violation of Maryland law.

According to the attorney general's office, the charges alleged that during its high-pressure sales presentation, Platinum made a number of misrepresentations, including statements that: It had accommodations worldwide; members could travel at any time; accommodations would be luxurious.

"Nobody has the right to deceive consumers into spending their hard-earned money for dream vacations that turn out to be nightmares," Mr. Curran said. "This settlement will help to put an end to some of those nightmares."

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