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Vacation/Holiday Clubs:

During the last several years a great number of questionable Vacation/Holiday Clubs have sprung up around the world (largely to avoid the strict legislation that applies to a timeshare purchase) and large numbers of consumers have been defrauded and/or disappointed by them.

Vacation/Holiday Clubs differ from timeshare in that membership of the club is not linked to any rights in any particular property and members are therefore at the mercy of the company's ability to fulfill vacation requests. There are many legitimate vacation clubs throughout the world, but do your homework to find out which are legit before you are dazzled or exhausted into submission by salespeople who are very good at their jobs. (Please note that we are not talking about vacation clubs of the sort presented by such companies as Marriott, Disney and many other legitimate vacation ownership companies which may call their product a "club".)

  • Do not respond to unsolicited invitations, either by mail, email or via telephone, that look too good to be true: Chances are that they ARE too good to be true.
  • Be extremely skeptical about postcards, emails and telemarketers stating you have been "selected" to receive a "fabulous 'no-cost' vacation
  • Do not purchase a vacation/holiday club without first checking with your local Better Business Bureau or your state or local consumer affairs department. In Europe, check to see if they are registered with the OTE (http://www.ote-info.com)
  • Read all the fine print and don't sign a contract unless everything your salesperson told you is included in writing-- PERIOD.
  • Ask lots of questions and don't stop until you're completely clear on all the details. Vacation clubs generally represent a big investment, so take your time before taking that vacation!
  • See this helpful press release from VOICE: VOICE Provides Consumer Guidelines About Holiday Clubs

Here are some URLs that will give you specific information about such clubs in Europe and other areas, how to avoid them, and actions that have been taken against some of them. (NOTE: Links will open in new windows)

Vacation Scam "Red Flags"

Be alert to the following "red flags" that may signal fraudulent vacation promotions:

  • Salespersons who use high pressured tactics such as:
    • demanding your credit card number before explaining all the conditions of an offer;
    • requesting that you identify yourself by your credit card number (a sign of possible misuse of your card);
    • or refusing to provide all the information about the total cost of a vacation or travel offer.
  • Post card or fax promotional mailings that require you to pay a fee or to purchase membership in a travel club, in order to claim a vacation or travel prize.
  • Low rates on air travel that require you to purchase an additional ticket for a companion.
  • Offers by companies attempting to subvert U.S. postal authorities by requiring a messenger or courier to deliver the travel package to you in exchange for your payment.

As a case in point, in January, 2002, OTE (Organisation for Timeshare in Europe) filed suit against 7 companies that promote, market and manage the holiday package Dream Works Vacation Club. As part of its major program to rid the timeshare industry of unethical behaviour by unscrupulous companies, OTE filed a claim in a Fuengirola court against Dinastia Resort S.L, Dream Works Vacation Club S.A, Holidays in Style S.L, Incentive Leisure Group Limited, Incentive Leisure Group S.L, Timelinx S.A., and Vacations & Leisure International S.L.

There have been many folks in Europe, particularly the UK, who have written to The Beat to say they have been ripped off by Timelinx S.A./DreamWorks Vacation Club. In more than one case, we have been told that Timelinx has threatened disenchanted purchasers of the Dream Works product with legal action if they don't pay up. For instance: --"...on my return there was an article in the Sunday Post on 16 and 23 June regarding the arrest of a number of directors on charges of racketeering etc. I called Timelinx to enquire and I was informed that this was an error and their lawyers were contacting the Sunday Post's owners, D C Thomson and Co to obtain a printed retraction. I informed Timelinx I would pay no further monies until I had seen this retraction and they initially were fine. No retraction has been sent to me and upon further investigation via the internet I have seen that both Dream Works and Timelinx are of a very dubious nature, therefore I notified them I would not be paying any due balance, but I accepted my deposit was lost. ...This week I received a letter threatening me with 21 days notice to pay or they will start proceedings for a CCJ against me."

On behalf of the people who have asked us for help, The Timeshare Beat contacted OTE for some direction as well as info on the current status of that lawsuit. OTE replied on Oct. 31, 2002: --"This court case is still ongoing and we hope to receive some preliminary conclusions in the next month.

"If consumers have bought this product and they are UK citizens the best thing is for them to write to OTE, to Trading Standards in the UK and the Office for Fair Trading. In addition if they feel they have been defrauded they should go to their local police station and file an official complaint. This then needs to be forwarded to Interpol and the OFT as well.

"In addition if these consumers have paid with their credit card and they have cancelled the contract by recommended letter in 10 days they can write to their CC company to reclaim their money.

"In last resort they can go to the OTE website which has a list with specialised solicitors who could assist them. I would be surprised if this company would take the consumers to court in the UK.

"We believe clearly that these companies are operating without the appropriate licenses, amongst many other alleged violations of law (consumer protection laws, timeshare laws, travel laws).
"

UPDATE: In March, 2003, legal action started by OTE against the above mentioned seven holiday companies based in Spain failed. OTE says that they will appeal. The failure of this lawsuit does not change our opinion of the companies involved.

UPDATE: February 2004- OTE lost the appeal against Timelinx. See the press release: OTE appeal fails in court case against DWVC and Timelinx

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