Bogus holiday clubs

The Office of Fair Trading (OFT) tells you how to spot bogus holiday clubs, including information about how they con you out of money while promising you a dream holiday.

Hooking you in

• They phone you at home and tell you that you've won a 'free' holiday
• Or they approach you on the street while you're on holiday and give you a scratchcard, which reveals you have won a 'free' holiday
• You are told that all you need to do is go to a presentation to collect your prize and learn more about a new holiday venture
• You will be told that this is not about timeshare
• The presentation will often be at a plush hotel. The brochures will look glossy and convincing. You'll be made to feel as if you're joining an exclusive holiday club, which will offer exciting and great value holidays across the world in top class accommodation
• What they don't tell you - unlike the law covering timeshare arrangements, you're not necessarily given a chance to cancel if you have second thoughts

The reality

• Don't believe everything you hear. What the bogus holiday club tells you at the sales pitch and what's in the contract you sign could be two very different things:
• They tell you: "You will have holidays in fabulous places at times of the year that fit in with your needs." Reality: No dates or destinations are guaranteed and holidays are often not available when and where you want them. You might end up going nowhere
• They tell you: "You will get your cash back after four years." Reality: The contract will not guarantee you getting back all your money. There is also no guarantee that the company will still be here in four years
• They tell you: "Look how much cheaper we are than the regular tour operators." Reality: The advertised discounts are not guaranteed and some deals are available elsewhere anyway. You could end up paying as much as the high street brochure price.
• They tell you: " The holiday club's subscription is worth a lot. You can sell it on later or leave it to your children as a bequest." Reality: The resale value may be zero and you may not even be able to find a buyer. There are annual subscription charges to pay whether you use the holiday club or not.
• They tell you: "The club will give you everything you ever wanted from a holiday." Reality: The holiday clubs won't be held accountable for any spoken promises made by their sales reps. They will only provide what is agreed to in the contracts you have signed.

The contract

• Don't be pressurised - the bogus holiday club will try to get you to sign on the spot. Ask for time to think it over. Seek independent advice
• Watch out for some techniques the bogus club uses:
• They might make the presentation last for so long that you are tempted to sign just because you are desperate to leave
• You could be offered unlimited free alcohol to 'get you in the mood' to sign up
• They might offer you a special discounted offer only valid for that day
• They could make sure you are not left alone to discuss anything with your partner
• You might have very limited time to view the contract

Three point check-list

Not all holiday clubs are disreputable. To avoid being caught by a holiday club that is bogus, use this checklist and take your time to think things through.

1. Can you take the contract away and come back in a few days' time with your decision?
2. Do you have any cancellation rights, and are they written down?
3. Is everything in writing in the contract that was promised to you in the presentation?

What to do if you have a complaint

If you have already been caught by a bogus holiday club, the Office of Fair Trading can't help you to reclaim your money, but they would like to know about it. Hopefully they can stop this club from using the same tactics in the future.

Please put your complaint in writing to:

EPIC
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
EC4Y 8JX
Email: enquiries@oft.gov.uk
Visit the Office of Fair Trading's website

• If you have already signed up for one of these clubs and would like advice on your consumer rights, contact Consumer Direct on 08454 04 05 06.
• If you have returned from overseas and have concerns about a holiday club you may wish to contact the European Consumer Centre United Kingdom (ECC). The ECC provides free information on consumer rights in Europe and assists in cross-border disputes. For more details visit the ECC website or call 08456 04 05 03.
• If you are a UK citizen still on holiday in Spain and have problems with a Spanish based holiday club you may wish to contact the Spanish European Consumer Centre (CEC). For more details on the advice and assistance the CEC can offer visit the CEC website or call 91 82 24 555.