HCS HB 1338 -- BUYERS CLUB (Wood)

This substitute 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
substitute 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 claimant who suffers a loss.

The substitute allows anyone who purchases a travel club
membership 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 a membership, a refund will be
delivered to the purchaser within 30 days after the notice of
rescission is given.  The right to rescission cannot be waived.
Notice of cancellation must be written and sent certified mail,
return receipt requested, with the proper postage and address.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

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