Send to a friend

Holiday club hell?

News

EU acts on holiday clubs - 7 June 2007

In the wake of a raft of complaints in the past year from the public, who are falling victim to ‘scams’ involving discount travel membership clubs, the EU has proposed a series of revisions to the European Timeshare Directive to cover bogus long-term holiday products.

These fraudulent clubs often use high-pressure sales techniques and deception to persuade people to sign up and pay up-front fees to join, often while they are on holiday. What is marketed to them as a flexible alternative to timeshare properties, offering exciting and discounted holidays across the globe in top-class accommodation often turns out to be access to nothing more than an internet booking service – which has cost them thousands of pounds.

The companies involved give potential customers no time alone to discuss the deal, no cooling off period, and rarely provide contracts in English. What starts with ‘scratchcard touts’ touring beaches and bars in-resort, culminates in an overlong presentation, and a ‘one day only’ offer designed to make people sign the agreement on the spot.

The Office of Fair Trading (OFT) estimates that 400,000 Britons fall victim to these scams every year, at an approximate cost of over £1 billion. Mike Haley, Head of Scambusters at the OFT says, “Unscrupulous holiday club companies often don't deliver what they promise and leave consumers thousands of pounds out of pocket. Our advice is to be wary of the scratchcard tout when you are on holiday. If you do go along to a presentation ask the company three simple questions: Do you give cooling off rights? Is everything you promised in the presentation in the contract? Can I take away the contract to consider at my leisure? If the answer to any of these questions is no, then simply walk away.”

Not everyone agrees with the EU proposals. The Organisation for Timeshare in Europe (OTE) believes that revising the existing timeshare rules will fail to deliver the consumer protection where it is most needed. Indeed, it believes that rather than waiting until 2010, when the revised legislation will be introduced, the EU should act now to protect the public.

Peter Van der Mark, OTE Secretary General, says, “The European Commission has recognised the real problem in Europe. These Long Term Holiday Products are ticking time bombs, but by shoehorning these holiday products into legislation created for asset based Timeshare, the European Commission has chosen a short cut that will leave millions of European holiday makers at risk. The Commission has missed the opportunity to introduce better regulation with tangible consumer benefits.”

Van der Mark also discussed this issue on BBC Radio 4’s Today programme, suggesting that the way these companies work is to look at the legislation that exists, and then deliberately operate outside of the scope of the laws.

Related Articles

• Guide to Buying Property Abroad – Getting Started