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It seems that Australian timeshare customers have the same complaints and concerns as consumers in the UK. This has in fact prompted ASIC to review timeshare holiday schemes. The ‘Timeshare Council has hit back at the allegations that the industry ‘rips consumers off’ by saying that they contribute $700 million to the economy.

A recent complaint in Australia comes from Carina. She paid thousands of her hard earned money for a timeshare investment that she believed would provide her with cheap international holidays for the rest of her life. She joined with timeshare player Classic Holidays.

She has accused them of behaving unethically and offering products and services that are not value for money. She claims that she was told during the first presentation that after she paid her joining fee, she would be able to book a four week holiday in the USA for less than $4000. She then advises that when she actually logged on to Classic’s site to book a trip she was being quoted over $8000, more than double the price she was ‘sold’ during the presentation. She has said that she feels betrayed and let down by Classic who have behaved disgracefully. She hasn’t yet been on a single trip, but yet has paid the joining fee. Everything that had been promised to her is yet to come to fruition.

Carina has been trying to cancel her ‘contract’ with Classic as she has been advised she will need to pay an annual fee for 80 years (which will make her 110 years old!), however, there is no exit clause. Surprisingly when pushed by media Classic cancelled Carina’s contract citing unpaid annual fees. Carina has advised that she received no notification of the cancellation.

Classic has defended themselves by saying that the price quoted in the initial presentation was not an all-inclusive price.

ASIC (Australian Securities and Investments Commission) is now considering implementing stricter restrictions on Timeshare sellers after an increase in complaints from timeshare consumers. They have decided to carry out a review into the area and have asked consumer groups and the industry itself for its ideas on what changes are needed.

The complaints being received are similar to regularly heard timeshare complaints. That potential customers are being lured to presentations with promises of the world and subsequentially end up feeling bullied and pressured into buying, what is essentially not a very good product in many cases.

Katherine Temple from the Consumer Action Law Centre has said that ‘the practice is disgraceful and really needs to be stopped.’

ATHOC is also going to contribute to the review, however, they have raised their concerns about making too many drastic changes because of the effect that may have on existing owners of timeshare and also the effect it may have on the future growth of the industry which does contribute nearly $700 million to the economy.

The timeshare industry has changed significantly and there is now a points based system, however, it has been mentioned that this system may actually be ‘hiding’ the very poor value in the schemes. It has been said that the schemes are deliberately complex and in fact, people may be better off spending their time looking for and booking their holidays themselves. No matter where you are, take care of yourselves and your future and stay cautious!

 

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