7 On Your Side
NJ Travel company shut down after complaints, lawsuit
NEW JERSEY (WABC) -- A New Jersey Travel club accused of selling hundreds of useless memberships has been banned from doing business in the state and slapped with a hefty fine.
The settlement comes after a 7 On Your Side investigation alerted authorities the sales pitch consumers were falling for smelled like a scam.
This was no cheap club. Customers forked over up to 10-grand each just to join, and then got hit with a monthly charge.
To settle the lawsuit, Global Travel Solutions agreed to dissolve the company, stop collecting payments, and start paying restitution.
Juanita Randolph was all smiles learning the fate of Global Travel Solutions. The company sued by the state of New Jersey agreed to pay 350-thousand dollars in restitution.
Last spring, a 7 On Your Side investigation first exposed Jason Krieck, Global Travel's owner.
We succeed in getting a Staten Island couple their refund, but our story led to hundreds of other customer complaints of expensive memberships getting zero perks and promised refunds being ignored.
Turns out, while Krieck enjoyed travelling around the globe, posting about it on Facebook, the self-proclaimed "hustler" left a whopping 700 customers unsatisfied, according to the NJ Division of Consumer Affairs.
We assisted viewers like Juanita Randolph in filing complaints with consumer affairs. She and her husband paid Global Travel 83-hundred. After raising 4 kids, they had hoped to enjoy their golden years enjoying discount trips.
Luckily she put that $8,000 on a credit card and the bank issued her a refund. Because she worked with us to file that formal complaint, she will get a portion of the restitution.
As part of the settlement Krieck admits no wrongdoing. He has no further comment after being reached by phone.
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