BEWARE of timeshare sales people who will persuade you to sign a contract you would not ordinarily have signed.
Holiday club or timeshare membership is one of the luxuries consumers have had to give up because of the recession.
As the financial situation improves, consumers will once again want to buy into holiday clubs.
Patrick Borman regrets the day he accepted a phone call from Scott Balentine of Quality Vacation Club, who said Borman had qualified for a draw to win a quad bike.
"I had not entered any competition, but I was persuaded to attend their final draw," Borman said.
He said when he and his wife arrived for the draw they were instead given a holidaying presentation.
"Scott told us it was an investment of a lifetime and that we could end it any time we wanted," Borman said.
They were not allowed to take a copy of the contract because it was a one-day promotion.
Borman said they were told to pay R975, which was a 50 percent discount and that they would only have to pay monthly premiums three months later.
"Then, in January 2008, when I had to buy uniforms and school books, I noticed a huge debit order. I almost collapsed.
"Quality Vacation Club had debited my account for R6,000, which was not the agreed amount when they promoted their product," Borman said.
"I have never recovered and have not been able to cancel the contract since there was a cooling off period of seven days, which I only got to know about three months after signing the contract," he said.
He still pays instalments and has never been on any of the promised holidays since 2008.
"They raised my expectations and I now want to stop paying this never-ending debt," Borman said.
Manie van Schalkwyk, the credit ombudsman, said this is how some consumers end up in financial trouble. He advised consumers to avoid being negatively listed for such purchases.
"Unfortunately, most of the consumers who come to us for help with timeshare or vacation-club issues are in fact victims of their own inability to read contracts that they happily signed when offered 'free' holidays or other benefits," Van Schalkwyk said.
He said people go to presentations and see wonderful resorts in exotic places and it all looks very affordable.
He said consumers become so engrossed in the film or the presentation that they forget that they are signing a contract that is binding.
"When they finally get listed for non-payment, it is too late. The contract is legal. They signed it and my office cannot help them," he said.
The Ombud's office has spoken to the Vacation Ownership Association of Southern Africa about these complaints.
Voasa is the self-regulatory body that acts as a watchdog over timeshare, fractional ownership, points clubs, private residency and destination clubs, which all fall into the shared vacation ownership industry.
Voasa concurs with the ombud that aggressive sales tactics are unethical and are not supported by the association. He said usually these discussions take place after the event when the consumer is already in trouble and then it's too late, with their credit record damaged.
Van Schalkwyk said Voasa had undertaken to intensify its efforts to educate its members against aggressive sales tactics.
Handy tips to remember when considering a timeshare or holiday club purchase are:
- Don't let sales people rush you or make you feel ignorant if you ask questions. It is your right to question everything and to make sure that you can afford the purchase and that there are no hidden costs;
- Don't assume anything. Ask and make sure;
- Never sign a blank or partially blank document because your signature is binding;
- Always ask yourself: What if I am not happy, how do I cancel this contract?
- Be very aware of time limits. If the contract says you can cancel in writing within five working days after signing and you only let them know in 10 days, you will have to pay for something you did not want;
- Always cancel contracts in writing and get acknowledgment or a cancellation letter from the company. Phoning the salesperson is not good enough;
- Do not rely on the goodwill of the salesperson, who is out to earn a commission.
If you do have a complaint, phone Voasa on 021-914-9693 or email voasa@voasa.co.za to report this.
The credit ombud offers a free service and assists in dispute resolution with credit providers. Phone 086-166-2837 or email ombud@creditombud.org.za
Pie in sky vacations
BEWARE of timeshare sales people who will persuade you to sign a contract you would not ordinarily have signed.
Holiday club or timeshare membership is one of the luxuries consumers have had to give up because of the recession.
As the financial situation improves, consumers will once again want to buy into holiday clubs.
Patrick Borman regrets the day he accepted a phone call from Scott Balentine of Quality Vacation Club, who said Borman had qualified for a draw to win a quad bike.
"I had not entered any competition, but I was persuaded to attend their final draw," Borman said.
He said when he and his wife arrived for the draw they were instead given a holidaying presentation.
"Scott told us it was an investment of a lifetime and that we could end it any time we wanted," Borman said.
They were not allowed to take a copy of the contract because it was a one-day promotion.
Borman said they were told to pay R975, which was a 50 percent discount and that they would only have to pay monthly premiums three months later.
"Then, in January 2008, when I had to buy uniforms and school books, I noticed a huge debit order. I almost collapsed.
"Quality Vacation Club had debited my account for R6,000, which was not the agreed amount when they promoted their product," Borman said.
"I have never recovered and have not been able to cancel the contract since there was a cooling off period of seven days, which I only got to know about three months after signing the contract," he said.
He still pays instalments and has never been on any of the promised holidays since 2008.
"They raised my expectations and I now want to stop paying this never-ending debt," Borman said.
Manie van Schalkwyk, the credit ombudsman, said this is how some consumers end up in financial trouble. He advised consumers to avoid being negatively listed for such purchases.
"Unfortunately, most of the consumers who come to us for help with timeshare or vacation-club issues are in fact victims of their own inability to read contracts that they happily signed when offered 'free' holidays or other benefits," Van Schalkwyk said.
He said people go to presentations and see wonderful resorts in exotic places and it all looks very affordable.
He said consumers become so engrossed in the film or the presentation that they forget that they are signing a contract that is binding.
"When they finally get listed for non-payment, it is too late. The contract is legal. They signed it and my office cannot help them," he said.
The Ombud's office has spoken to the Vacation Ownership Association of Southern Africa about these complaints.
Voasa is the self-regulatory body that acts as a watchdog over timeshare, fractional ownership, points clubs, private residency and destination clubs, which all fall into the shared vacation ownership industry.
Voasa concurs with the ombud that aggressive sales tactics are unethical and are not supported by the association. He said usually these discussions take place after the event when the consumer is already in trouble and then it's too late, with their credit record damaged.
Van Schalkwyk said Voasa had undertaken to intensify its efforts to educate its members against aggressive sales tactics.
Handy tips to remember when considering a timeshare or holiday club purchase are:
If you do have a complaint, phone Voasa on 021-914-9693 or email voasa@voasa.co.za to report this.
The credit ombud offers a free service and assists in dispute resolution with credit providers. Phone 086-166-2837 or email ombud@creditombud.org.za
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