HB 1338 -- Buyers Clubs

Sponsor:  Wood

This bill requires travel clubs and vacation clubs to keep their
registration or certificate of authority to do business on file
and in good standing with the Secretary of State.  These clubs
are required to file and maintain a bond with corporate surety or
a letter of credit from a bank with the Attorney General in an
amount to be determined by the Attorney General.  The bond or
letter of credit must be renewed annually.  The bill specifies
the information clubs are required to give the Attorney General
when filing the bond or letter of credit.

The bond or letter of credit will be in favor of the state for
the benefit of any private claimant who suffers a loss.

The bill allows anyone who purchases prearrange travel- or
tourist-related services to rescind the purchase by providing
written notice within seven business days following the date on
which the purchase was made.  The seller must provide the
purchaser with a confirmation number within five business days of
the sale.  If the confirmation number is not postmarked or
electronically confirmed prior to the fifth day, the customer's
right of rescission extends to the fourteenth business day
following the purchase.  If a purchaser cancels travel
arrangements, he or she is entitled to a full refund of all money
paid, with the exception of any non-refundable deposits.  The
refund will be delivered to the purchaser 14 days after the
notice of rescission is given.  The right to rescission cannot be
waived.  Notice of cancellation must be written and will take
effect upon deposit in a mailbox with proper postage and address.

Violations of the bill will be subject to all penalties pursuant
to merchandising practice laws.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am