In recent years, the timeshare industry has grown tremendously. Although there are many current owners who are trying to get out of their timeshare contracts, many people still choose to choose this way of vacationing. On the other hand, the timeshare market has also become an ideal target for many scams. As several people have fallen victim to these scams, authorities are warning timeshare consumers to be aware of some of the many fake vacation clubs.
According to consumer bodies, an increasing number of tourists are being targeted by bogus holiday club schemes. The Office of Fair Trading added that thousands of people are lured each year with promises of luxury getaways at bargain prices, but almost all of them are scams. There are up-front fees that are virtually impossible to recover once the promised benefits do not materialize.
With an initial registration fee ranging from millions to thousands of pounds, victims are told they will be able to book holidays at five-star resorts and only pay two- or three-star prices. Then people realize they’ve fallen into a fancy sales trap to discover that their membership counts for nothing when it comes to booking a vacation.
fraudulent schemes
Susan Marks, of Citizens Advice’s consumer affairs policy, says fraudulent schemes use sophisticated sales techniques to lure people in. In most cases, there are representatives who work in large resorts. In some, there are scratch cards that are often used to attract tourists. Usually they are promised a guaranteed prize via something like a scratch card, and this lures them to the club office to claim their prize. Once in the office, the real sale can begin.
New laws
On the other hand, Citizens Advice advises tourists not to sign up for anything that requires money up front.
Similarly, they are warned never to hand over money unless they have a written purchase agreement. And they shouldn’t leave unless they’re offered an unconditional 14-day cooling-off period. Additionally, Citizens Advice recommends reporting problems to OFT and Trading Standards.
Meanwhile, new legislation to standardize timeshare-like products will become law across Europe in 2011. Under the Timeshare Directive, long-term vacation products of less than 36 months known as Vacation Clubs or Discount Travel Membership Clubs will now be protected by such legislation. This law will be a real improvement for consumers who still have to decide whether to go ahead with a deal before paying for something, instead of having to try to get their money back after it’s already been paid.
