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Consumer protectors probe in R3‚5 billion a year timeshare industry

National Consumer Commissioner Ebrahim Mohamed didn’t hide his disgust at the conduct of major holiday clubs operating in South Africa when announcing a new public enquiry into the “timeshare” industry today.

“It’s disgusting‚ in my view‚ that captains of this industry can turn a blind eye to the relentless pain and suffering of consumers for such a long time‚” he told a briefing in Pretoria.

The industry now prefers the term “vacation ownership” to “timeshare”.

Consumers have alleged that:

-they were duped at slick presentations into signing up for lifetime contracts that can never be cancelled;

 -companies overbook and over-sell accommodation;

 -annual levy increases are excessive and that they are threatened with litigation if they can’t afford to pay them;

 -they can’t secure bookings; and

 -they can’t give their points away‚ let alone sell them‚ because of the massive levy obligations that go with them.

“The most disturbing aspect of it all‚ I think‚ is that the vacation ownership industry has done little or nothing to correct itself‚ which is naturally what every industry should be doing when issues are raised with its roleplayers’ conduct‚ products or services‚” Mohamed said.

According to the Vacation Ownership Association of SA (VOASA)‚ it’s a R3‚5 billion per year industry‚ locally‚ with more than 200 resorts and 500‚000 “shared owners”.

In 2015 the National Consumer Commission (NCC) lodged an application with the National Consumer Tribunal following an investigation into major holiday clubs‚ including Univision‚ the holding company of Quality Vacation Club‚ and Club Leisure Group‚ which owns Flexi Club.

The cases were “withdrawn” by the NCC‚ according to Mohamed‚ because of “technical defects”.

“We were legally challenged by the clubs and we realised it would prove very costly for taxpayers to proceed…”

Today’s announcement of a public enquiry is the NCC’s Take Two industry challenge‚ intended to “identify the root causes of the issues experienced by consumers‚ make findings on the facts and evidence presented and make recommendations on how to address the consumer issues highlighted in the complaints”.

A three member panel — all attorneys with combined experience in consumer protection‚ property law and contract management — will‚ with the NCC’s technical task team‚ spend six months gathering evidence by engaging with consumers who have filed complaints‚ as well as industry players‚ regulators‚ academics and courts.

 At the end of that process‚ the panel is expected to recommend how the “gaps‚ inadequacies‚ misalignment and inefficiencies in the laws‚ regulations‚ policies and codes regulating the industry” can be addressed in order to better protect consumers.

- Wendy Knowler is ‘In Your Corner’ as TimesLIVE’s consumer champion. You can contact her on email: consumer@knowler.co.za or via Twitter: @wendyknowler

 

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