Bogus holiday clubs
Not all holiday clubs are bogus, but there are many that are. With a reputable club you should be able to take the contract away and come back in a few days' time with your decision, you should have written cancellation rights and everything that was promised to you at the presentation should be written down.
These are some of the danger signs to watch out for:
The dream
How they hook you in
They phone you at home and tell you that you have won a 'free' holiday. Or they approach you on the street whilst on holiday and give you a scratchcard which reveals that you have won a 'free' holiday. All you need to do is go to a presentation to collect your prize and learn more about a new holiday venture. You will be told that this is not about timeshare.
You will later find out that the 'free' holiday isn't free, as you must pay for extras, such as flights and other add-ons and go somewhere you don't want to go at a time that doesn't suit you.
At the presentation
Often the presentation will be at a plush hotel. The brochures will look glossy and convincing. You will be made to feel as if you are joining an exclusive holiday club which will offer exciting and great value holidays all over the world in top class accommodation.
What they don't tell you
Unlike the law covering timeshare arrangements, you are not necessarily given a chance to cancel if you have second thoughts.
The reality
What are you buying?
Don't believe everything you hear. What the bogus holiday club tells you in the sales pitch and what is in the contract you sign could be two very different things:
'You will have holidays in fabulous places at times of year that fit in with your needs.'
Reality: no dates or destinations are guaranteed and holidays are often not available when and where you want them. You might end up going nowhere.
'You will get your all your cash back after four years.'
Reality: the contract will not guarantee you getting back all your money.
There is also no guarantee that the company will still be here in four years.
'Look how much cheaper we are than the regular tour operators.'
Reality: the advertised discounts are not guaranteed and some deals are available elsewhere anyway. You could end up paying as much as the high street brochure price.
'The holiday club's subscription is worth a lot. You can sell it on later or leave it to your children as a bequest.'
Reality: the resale value may be zero and you may not even be able to find a buyer. There are annual subscription charges to pay whether you use the holiday club or not.
'This club will give you everything you ever wanted from a holiday.'
Reality: the holiday clubs won't be held accountable for any spoken promises made by their sales reps. They will only provide what is agreed to in the contracts that you have signed.
The contract
Don't be pressurised
The bogus holiday club will try to get you to sign on the spot - but do not let yourself be pressurised - ask for time to think it over. Seek independent advice.
Watch out for the techniques the bogus club uses:
the presentation has lasted so long you are tempted to sign just because you are desperate to leave
you are offered unlimited free alcohol to get you into the mood to sign up
they have made you a special discounted offer only valid for that day
you are not left alone to discuss anything with your partner and you are given very limited time to view the contract.
The three-point checklist
Not all holiday clubs are disreputable. To avoid being caught by a holiday club that is bogus, use this checklist and take your time to think things through:
1. Can you take the contract away and come back in a few days' time with your decision?
2. Do you have any cancellation rights, and are they written down?
3. Is everything in writing in the contract that was promised to you at the presentation?
DO NOT sign anything, no matter how much you are pressurised, unless you are sure it is exactly what you want.
What to do if you have a complaint
If you have already been caught by a bogus holiday club, the OFT can't help you reclaim your money, but we would like to know about it. We might be able to stop this club from using the same tactics in future.
Please put your complaint in writing to:
EPIC
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square EC4Y 8JX.
email enquiries@oft.gov.uk
If you have already signed up for one of these clubs and would like advice on your consumer rights, contact Consumer Direct on 08454 04 05 06.
If you have returned from overseas and have concerns about a holiday club you may wish to contact the European Consumer Centre United Kingdom (ECC). The ECC provides free information on consumer rights in Europe and assists in cross-border disputes. For more details visit the ECC website or call 08456 04 05 03.
If you are a UK citizen still on holiday in Spain and have problems with a Spanish based holiday club you may wish to contact the Spanish European Consumer Centre (CEC). For more details on the advice and assistance the CEC can offer visit the CEC website or call 91 82 24 555.
bogus holiday scam (pdf 462 kb)
