OFFICE OF FAIR
TRADING News Release (10/09) issued by COI News Distribution
Service. 4 February 2009
The OFT is
appealing for complaints from timeshare owners who have received
unsolicited approaches by scammers claiming to be resale agents
and promising a 'guaranteed buyer' and a high price for
their unwanted timeshare.
The OFT is aware that many owners have already lost hundreds of
pounds to bogus timeshare resale companies with some having also
been conned into paying thousands of pounds to obtain bogus
holiday club membership on the basis of false promises.
Typical complaints state that the owner of a timeshare has been
subject to an unsolicited telephone call by a bogus timeshare
resale company which claims that a 'definite buyer' has
been found for their timeshare and that an above market offer has
been made to buy it.
Consumers are first tricked into making an upfront payment of
several hundred pounds, to cover so-called 'administration
costs' or 'land registry charges' but then the
'definite buyer' falls through. The consumer is
subsequently asked to attend a meeting with another buyer, often
referred to as a 'corporate buyer,' to discuss their
offer. Often these meetings take place abroad, most commonly in a
Spanish resort or other holiday destination where the consumer is
made to sit through a high pressure sales presentation often
lasting several hours. They will be offered membership of a bogus
holiday club in exchange for their timeshare plus an additional
payment of several thousand pounds. As part of its Scams Awareness
Month, the OFT is warning timeshare owners to be cautious if they
receive an unsolicited approach by a company claiming to be able
to sell their timeshare who:
* requests an up-front fee such
as an administration fee, VAT, land registry charge or insurance
cover
* offers an unrealistic purchase price - often higher
than the original purchase price
* says they have a confirmed
buyer waiting or a 'corporate buyer'
* pressures you
into making a decision on the spot
* asks you to go abroad to
complete a sale
Genuine avenues for timeshare resale do exist but the OFT advises
owners to always take advice first, do some research on the
company making the offer and to check out the truthfulness of any
promises made before making a decision.
The OFT is asking any UK consumers who have lost money to
timeshare resale scammers to make contact and provide it with
written information and documentation. The OFT is appealing for
information from consumers who, having signed up, attended a
holiday club presentation in Spain and having purchased holiday
club membership found the services on offer in terms of range,
price and quality of holidays not as promised by the salesmen. The
OFT cannot intervene in an individual case or get consumers'
money back for them, but the evidence provided could strengthen
any enforcement action to be taken by the Spanish authorities and
ensure that those who mislead consumers are prevented from doing
so in the future. Any consumers with a complaint about timeshare
resale scammers or bogus holiday club operators should write to
the OFT at: ScamBusters, Bogus Holiday Club Project, OFT,
Fleetbank House, 2-6 Salisbury Square, London EC4Y 8JX. We will
acknowledge all receipts and will contact consumers again should
we require further details.
Mike Haley, OFT Director of Consumer Protection
said:
'As the public has become more aware of the dangers
of bogus holiday clubs and the tricks used, so the scammers have
changed their tactics. Increasingly timeshare owners are being
targeted with the bait of a fictitious timeshare resale used as a
means of hooking consumers into buying a bogus holiday club membership.'
Elisabetta Sciallis, from the UK European Consumer Centre (UK
ECC) which provides free and confidential information and advice
for the resolution of consumer cross-border disputes
said:
'This issue is a major threat to consumers and we
encourage consumers to support the OFT initiative. The UK ECC has
seen an increase in the number of complaints related to timeshare
resale operators. Overall 40% of the cases dealt with by the UK
ECC involve timeshare resale, Holiday Club and similar products.'
NOTES
1. The OFT has joined with partner organisations in Spain,
Belgium, France, Sweden and Norway to work on a project aimed at
reducing the harm caused by the unfair trading practices of bogus
holiday clubs and their marketers which it is estimated cost EU
consumers millions of Euros every year. For more details see press
notices 65/08, 67/08, 129/08 (NEED LINKS)
2. The UK European Consumer Centre (UK ECC) provides free and
confidential information on consumer rights in the European Union
and assists consumers with cross-border disputes. The UK ECC is
part of the ECC-Network, which consists of 29 centres in Europe
including Iceland and Norway. UK ECC is funded by the European
Commission and the Department for Business, Enterprise and
Regulatory Reform. You can find the UK ECC contact details on the
UK ECC website at http://www.ukecc.net or you can
contact us by email at ecc@ukecc.net
3. OFT research shows that 78 per cent of bogus holiday club
victims are aged between 35 and 64. The average loss per victim is £3,030.
4. Not all Holiday clubs are bogus products and there are
legitimate avenues for timeshare resale but there are many
unscrupulous companies who mislead over potential sale prices and
availability of buyers and who mis-sell their product and wildly
exaggerate its benefits and its value. The OFT has produced a
consumer leaflet to help prevent people being caught out by bogus
holiday club hard sell. The leaflet can be downloaded from our
website at http://www.oft.gov.uk/advice_and_resources/publications/consumer_advice/scams
or ordered by calling 0800 389 3158.
5. The UK European Consumer Centre (ECC) is able to act as a
mediator between a complainant and a trader by providing
linguistic and legal assistance so that a satisfactory solution
may be reached. The ECC may also be able help complainants claim
for any financial loss suffered as a result of entering into an
agreement with a trader. Please check their website for more
details on http://www.ukecc.net
or phone on 08456040503.
6. Consumers can also contact Consumer Direct for clear,
practical consumer advice on 0845 404 05 06. Consumer Direct is a
telephone and online consumer advice service funded by government
and managed by the Office of Fair Trading. It offers clear,
practical and impartial advice and information about consumer rights.
Fleetbank House, 2-6 Salisbury Square, London EC4Y 8JX.