smarTours Complaint

A $600 Penalty - Travel Agency

- New York City
We came to this travel agency because of positive recommendations and reviews through our social networking. We sent them a deposit of $600 on February 2nd for only a ground tour through India for May 12th thru May 19th, which was long in advance. Shortly thereafter on February 22nd and in good faith, as they requested, we sent the entire additional balance amount of $798.

However, unfortunately due to uncontrollable circumstances we were forced to cancel our tour. We notified the agency right away on February 28th, again, long in advance of the scheduled ground tour of May 12th. After many following telephone conversations we were advised we would receive a refund.

We patiently waited for a refund. After June 1st we wrote them a complaining letter with a copy to the Better Business Bureau. Following they were gracious to refund us $798.

But I am are still puzzled. The question I have:
Is it legal for a company to keep the money for an undelivered product?
At the time of our cancellation notice there were no company money outlays, no travel expenses and no advanced costs involved. Shouldn’t we actually be
refunded all our money? I understand a reasonable registration or cancellation fee but I cannot understand a $600 penalty. Reputable retail establishments refund 100% of the purchase price when returning, even after using, their product.

Can anyone justify this to me?




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