Refunds Paid To Consumers Stranded By Queens Travel Agency

Attorney General Spitzer today notified customers of a defunct Queens travel agency that refund checks are being distributed as part of a $272,000 settlement.

More than 200 consumers were stranded when Plus Ultra Tours suddenly closed its office at the end of June 2002. The majority of these consumers had pre-paid for direct charter flights for their families to return to Galicia, Spain to spend their summer holidays with relatives and friends.

"Although the abrupt cancellation of a much anticipated family reunion and summer vacation is a distressing ordeal, these refunds are substantial and will help to compensate many families for a significant portion of their losses," Spitzer said.

After receiving numerous complaints from customers of Plus Ultra Tours during the summer of 2002, Spitzer's office launched an investigation of the travel agency. The investigation revealed that the owners of Plus Ultra Tours had transferred $270,000 in company funds into several personal and corporate accounts at three different banks. In December, 2002, Spitzer's office sued the travel agency and its owners for consumer fraud and obtained a restraining order freezing both the corporate and personal accounts.

In June, 2003, Spitzer's office obtained a court order that found P.U. Travel, Inc., which was doing business as Plus Ultra Tours, in violation of state consumer protection laws by accepting payments for travel services and failing to provide those services or make refunds to consumers. In the decision rendered by Justice Sherry Heitler of Manhattan State Supreme Court, Plus Ultra Tours was ordered to make refunds to its customers.

In August of last year, Justice Heitler signed a consent order and judgment in which a restitution fund was established and eligible consumers were notified of their right to file claims for refunds. After processing the claim forms, Spitzer's office determined that the money in the fund was sufficient to make refunds of 70 percent of the money each eligible consumer had paid to the travel agency. The refund payments range between $185 and $3,722. The average refund will be approximately $1,250. Additional money may be recovered and deposited into the restitution fund in the future and will be distributed to provide the remaining compensation owed to the consumers.

Individuals with questions about the Plus Ultra Tours case are encouraged to contact the Attorney General's office by calling (212) 416-8345.

This case was handled by Special Assistant Attorney General Michele Marqui of the Consumer Frauds and Protection Bureau.