Agency Cancels Agency Over Dishonored Drafts

FAIRFAX, Va. -- Travel agent arbiter William McGee revoked the Airlines Reporting Corp. accreditation of an agency in New York state, saying its record was "littered" with dishonored ARC sales drafts.

In an earlier, unpublished decision in June 1997, McGee had given the agency, Olinville Travel Inc. of White Plains, a chance to keep its accreditation if it could stop dishonoring drafts for one year. But more drafts were dishonored, and McGee acted swiftly to take final action.

According to the decisions, Olinville Travel dishonored more than 50 drafts since August 1988.

In October 1996, Olinville Travel fell under Section IX of the ARC contract, which imposes extra operating conditions on firms that repeatedly fail to pay immediately for dishonored drafts. Subsequently, the agency dishonored two more drafts, automatically triggering an ARC complaint in March 1997.

McGee decided to hold the record open until June 1998 to give the agency a chance to show it could cure the remitting problems. When the additional dishonors occurred, ARC renewed its request for termination and the arbiter granted it in December.

In a separate case, the arbiter revoked the accreditation of Lucky Enterprises Inc. (doing business as Lucky Travel Service) of Annandale, Va., for failing to pay for one dishonored draft worth $482.

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