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Better Business Bureau (BBB) advises consumers to use caution when doing business with Castaways Vacation Club, a travel company located in Litchfield, Illinois. Consumers reported to BBB the company is attempting to collect past annual fees, did not cancel memberships as requested, failed to communicate, and provided poor customer service.
Castaways Vacation Club has an “F” rating, the lowest on BBB’s scale, due to unresolved complaints. BBB has received numerous complaints about the business in the last three months.
Consumers report receiving letters from the company that claim to be an “Overdue Notice.” The letter features a large red stamp that reads “Final Notice,” and says it is the company’s “final attempt to reach you before escalating your file for further review and possible legal action by our attorney.”
The letter lists the years the customer is past due and includes an increase of 5 percent for “annual increases.”
A woman from Arvada, Colorado, told BBB she received a “Final Notice” in December 2020. She said she was asked to pay more than $4,000 for fees dating back to 2006. The woman signed a contract with the company in 2005, but said she never used its services.
“They provided me absolutely nothing,” the woman told BBB. “I didn’t hear from them for more than 10 years and eventually threw away any documents I had from them a long time ago.”
A Henrico, Virginia, woman told BBB she received a letter from Castaways Vacation Club in October 2020 which indicated she owed $3,117. She set up a meeting with a company representative, but never received a return call.
According to the letter she received, the woman owed dues going back to 2007. She said she used to have a membership but cancelled it in 2005.
“We have been losing sleep over this,” the woman said. “We are on Social Security and don’t have that kind of money.”
A couple from Valparaiso, Florida, told BBB they received a letter in January 2021 that demanded payment of $2,829 in back fees. The couple called the business and was told they could pay $2,300 as part of a separation agreement. The couple said they paid the company approximately $6,000 in 2008 to join a vacation club.
“We started getting emails soon after, and we figured out that we could do a better job of finding travel deals on our own,” the wife said. “We quickly realized that we spent $6,000 for nothing.”
Even though they received a “Final Notice” letter, the couple said they had not previously received any notices from the company about the alleged debt.
“There are certain procedures businesses must use when seeking to collect a debt,” BBB St. Louis president and CEO Michelle L. Corey said. “If you’ve received a collection notice that you don’t believe to be true, make sure to investigate before paying it.”
Consumers reported receiving notices from companies with various names. All of the letters referenced a “Travel Department” at the same Post Office Box in Litchfield, a small community in the metro east of St. Louis.
Several consumers told BBB they cancelled or were never members of Castaways Vacation Club. After BBB contacted the company, in some cases, the company agreed that the consumer did not owe on the invoice.
A company representative would not answer questions and referred a BBB investigator to the company’s upper management. The company’s upper management did not return messages or emails. The company did not respond to a BBB letter asking what it is doing to address its ongoing, serious pattern of complaints.
The company is owned and operated by William Bailey. Bailey previously has been sued by state officials in Indiana, Missouri, Texas and Wisconsin for how he operated various travel businesses. Several of Bailey’s previous companies have been the subject of BBB consumer warnings.
BBB tips on safe vacation planning:
- Research any business and its owners carefully before paying any money. Check the company’s BBB Business Profile at BBB.org.
- When searching for travel deals on the Internet, avoid using broad search terms. Using broad search terms can sometimes lead you to websites that look official, but are designed to trick users.
- If you attend a meeting where vacation club plans are sold, don’t give into high-pressure sales tactics. Take your time to make a decision and research what you are purchasing.
- Make sure you get all the details in writing. If you purchase a travel club membership and have second thoughts about the deal, you have a limited time to rescind the contract and get your money back. Refer to the Federal Trade Commission’s Cooling-Off Rule for more information.
- If you are asked to repay a debt, refer to the Federal Trade Commission’s Fair Debt Collection Practices Act.
- Pay by credit card whenever possible in case you need to challenge the payment.
- For more information about travel scams, refer to a 2018 BBB study on timeshare scams.
Go to BBB.org to look up online marketplace business profiles, file a complaint, or write a customer review. Visit BBB Scam Tracker to research and report scams.
Read more about BBB Accreditation Standards and BBB Standards for Trust. Learn how to become a BBB Accredited Business.