Cases where presented to the National Consumer Commission in Durban in July, from consumers who are locked into contracts for life, unable to sell timeshare their points or even give them away in order to free themselves from the ever-increasing costs.
Thankfully the National Consumer Commission are to conduct a two-day public inquiry.
Thezi Mabuza the Deputy consumer commissioner commented “We are here to gather, collate, study, analyse and research all the information available for the panel to produce a report to correct the challenges so we can come to a more just dispensation for consumers”
Mabuza said the commission had received “several thousand” grievances all ranging from unavailability of requested accommodation, problems cancelling contracts and the cost of levies and fees. Consumers complained about being enduringly locked into the contracts, which the cunning sales representatives had sold to the consumer as a solid investment and one which could be passed on to their children.
Consumers have only ended up with a lifelong burden of soaring costs and unrealistic annual fees and the benefits become lesser and lesser each year.
Marque Pretorius, a member of Victory Over Disability, presented the case of a mentally disabled couple who claimed had been sold timeshare points, purportedly under a credit agreement, after a sales representative had repeatedly denied during his presentation that he was selling timeshare. He said the couple had been sold points that would accumulate to 2 800 points in three years however, they would never be able to take a holiday as 3 200 was the minimum points needed. The husband was a labourer and his wife was on a state disability grant, the company had not completed an affordability assessment, contrary to the National Credit Act.
Pretorius said the consumers had tried in vain to cancel the contract, “When a person with a certain disability presents themselves and they are on a pension, one has to ask if it is right in terms of selling luxuries like timeshare. We are not saying people with disabilities shouldn’t be able to buy timeshare if they can afford it, but reasonable care should be taken,”
Eban Combrink owned a timeshare since the 80’s in Bela Bela, however he hit hard times when his wife became ill and he had huge medical expenses to cover.
The annual costs to the Combrink were R10 000 a year, now they owe R38 000 due to arrears and they are forever receiving calls from debt collectors adding to an already stressful time.
Another consumer, Duncan Austin, purchased a vacation club and tied himself into a 20-year contract, he has paid the requested fees for over 10 years only to have his membership terminated when he protested to a special levy, following more than 50% annual levy increase to R2 990. He said the special levy of R2 000 on an estimated 4 000 members came to millions of rand.“They are taking money that doesn’t belong to them, and now they’ve taken away our timeshare, which we’ve paid for 10 years,”
General Manager Peter Snyman of Club Leisure Group addressed the public as an industry representative, albeit the complaints raised did not concern his company.
Snyman said his firm had stopped selling perpetual contracts, increased the cooling-off period to 30 days and allowed consumers to cancel timeshare agreements on certain terms.
He said it was international practice for points to expire after three years as companies could only bank accommodation for a certain period.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk