Holiday clubs
The scam
You get a phone call at home or you're approached while on holiday and handed a scratch card. You're told you've 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 - the holiday club.
Often the presentation will be at a plush hotel. The brochures will look convincing. You will be told that, in return for an annual subscription charge, you can join an exclusive club offering great value holidays all over the world in top-class accommodation. You will be told this isn't anything to do with timeshare.
The sales reps will pressure you to sign on the spot. Their tactics could include:
- making the presentation last so long you are tempted to sign just because you are desperate to leave
- offering free alcohol to get you in the mood
- making you a special discounted offer valid only for that day
- stopping you from discussing anything with your partner in private
- giving you limited time to view the contract.
If you do sign up, you will find that the club won't be held accountable for the spoken promises made by their reps. The promised discounts will not be guaranteed as claimed. In fact, you could end up paying more than the high street price. Also, holidays may not be available when and where you want them.
If you don't join the holiday club, you will find out that the 'free' holiday you were promised isn't free after all, as you must pay for extras, such as flights and other add-ons. And you may have to go somewhere you don't want to go at a time that doesn't suit you.
That is how a bogus holiday club works. Although there are many of them around, not all holiday clubs are bogus. With a reputable holiday club, you should be able to take the contract away and come back in a few days with your decision. Also, you should have written cancellation rights, and everything that was promised to you at the presentation should be written down in the contract.
However, even if the holiday club is reputable, you should note that, unlike with timeshare arrangements, a holiday club provider is not required by law give you a chance to cancel later on if you have second thoughts.
Read more about bogus holiday clubs in the OFT leaflet 'Congratulations! You have not won a free luxury holiday!'
Protect yourself
- Insist on taking the contract away with you.
- Take a few days before making any decision.
- Make sure everything that was promised to you at the presentation is confirmed in writing.
- Don't sign anything, no matter how much you're pressured, unless you are sure it's exactly what you want.
For advice about a holiday club that's approached you or that you've already signed up to in the UK, call Consumer Direct on 08454 04 05 06.
Holiday clubs abroad
If you have come back from a foreign holiday and have concerns about a holiday club abroad, contact the European Consumer Centre United Kingdom (ECC) on 08456 04 05 03. The ECC provides free information on consumer rights in Europe and assists in cross-border disputes.
If you are on holiday in Spain and have problems with a Spain-based holiday club, you may wish to contact the Spanish European Consumer Centre (CEC). Visit the CEC website or call 091 82 24 555.
