HB 83 -- TRAVEL CLUBS

SPONSOR:  Wood

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Small Business by a vote of 12 to 0.

This bill specifies that any use of travel club membership
benefits during the three-day rescission period of the membership
contract will not effectively waive the member's right to rescind
the contract and requires the rescission statement that must be
printed in the form of a disclaimer on all contracts to reflect
that change.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the bill will help with a
problem in the travel club business when a purchaser changes his
or her mind after signing a contract.  A three-day rescission
period is available as long as no benefit has been used.  When
someone buys into the club, he or she is often immediately given
a discounted lunch, ticket, or hotel stay so the purchaser has
already benefitted and can't rescind the contract.  If the
purchaser gets a free gift, it should not stop the rescission
right.  Vacation clubs are taking advantage of a loophole in the
law.  The bill provides better consumer protection against some
unscrupulous vacation club sellers.

Testifying for the bill were Representative Wood; Ross Summers,
Branson Chamber of Commerce and Visitors Bureau; Trent Ford,
Vacation Services of America; and Wyndam Worldwide Corporation.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:23 am