by davhen
Tue Aug 11, 2009 7:27 am
LETTER OF CAUTION ISSUED BY VACATION OWNERSHIP ASSOCIATION OF SOUTHERN AFRICA
RE: Alert to Timeshare Owners – Discount Travel Clubs
The self-regulatory body for the vacation ownership industry, Vacation Ownership Association of Southern Africa (VOASA), is
mandated to enforce a Code of Conduct as approved by the Department of Trade and Industry; the objective of the Code it to
maintain an equitable balance between the interests of consumers (timeshare owners) and those of the industry, through fostering
and maintaining enhanced levels of service, a high standard of business and sound business practices, so as to enhance the
positive image and viability of the industry.
In compliance with the stated objective, this association deems it prudent to alert timeshare owners of weeks and points about
certain business practices employed by a number of Discount Travel Clubs (DTC) styled as “Holiday Clubs”. ”DTC” claim to offer
savings and discounts at luxurious resorts around the world but our investigations have revealed that in several instances the
discounts are not in fact guaranteed. The products are not linked to accommodation schemes subject to the Property Timeshare
Control Act 75/1983 (“the Act”), and are in reality travel packages unrelated to products subject to the Act.
The typical business practice of the “DTC” appears be either to advertise in the media or by direct solicitation through usage of the
databases of various timeshare resorts or clubs - which usage our member clubs have indicated is not authorized - extending an
invitation to attend a presentation to discuss the sale of your week or points.
However it has been reported to us that at these presentations, you are asked to sign sale documents for your weeks and points
and at the same time offered a membership in the “DTC” (the purchase of this membership is inextricably linked to the sale of your
weeks and points, i.e. you cannot do one without the other). It has also been reported that you will be advised that you will get the
proceeds of the sale of your week / points through a cash back / reclaim guarantee scheme. However, there does not seem to be
any mention that the cash back scheme may extend over a period of up to 4 (four) years. Whilst you might expect that by selling
your points/weeks, you will be paid immediately, it seems that this is not the case and payment is deferred to sometime in the
future.
Some of the “DTC” then lease back to you the very weeks/ points you have sold to them.
Should your timeshare weeks or points be resold by entities that are inexperienced in the marketing of timeshare products and
secretarial procedures related to the transfer of a timeshare week or points, you could be exposed. All resorts and clubs have
scheme rules in terms of the Act and Share Block Control Act 59/1980 and on re-sale and transfer of weeks and/or points, stringent
formalities are required to protect both the seller and the purchaser.
It appears that the cash back / reclaim guarantee scheme described above does not fall under the control of the resort or club
concerned and this could jeopardize future payment of annual levies and membership fees.
You are urged to exercise caution on any solicitation of the sale of your weeks or points. Please also note that some of the “DTC”
do not adhere to the five day cooling off period nor comply with the National Credit Act and/or the Consumer Protection Act.
The “DTC” that have been approaching time share owners may operate under different business names, but the following have come
to our attention – Travel Club International, Global Trekker Alliance, Timelinx, Incentive Leisure Group with Designer Way Vacation
Club.
For the protection of timeshare owners, we recommend that VOASA affiliated re-sale agents / brokers mandated by affiliated resorts
and clubs be utilized as no “DTC” are affiliated members of VOASA. For further guidelines on re-sale of weeks or points, please
consult our web-site, http://www.voasa.co.za, or your resort or club direct.
Yours truly,
Alex Bosch
Executive Director
Moved from Auction Scams - Ralph
RE: Alert to Timeshare Owners – Discount Travel Clubs
The self-regulatory body for the vacation ownership industry, Vacation Ownership Association of Southern Africa (VOASA), is
mandated to enforce a Code of Conduct as approved by the Department of Trade and Industry; the objective of the Code it to
maintain an equitable balance between the interests of consumers (timeshare owners) and those of the industry, through fostering
and maintaining enhanced levels of service, a high standard of business and sound business practices, so as to enhance the
positive image and viability of the industry.
In compliance with the stated objective, this association deems it prudent to alert timeshare owners of weeks and points about
certain business practices employed by a number of Discount Travel Clubs (DTC) styled as “Holiday Clubs”. ”DTC” claim to offer
savings and discounts at luxurious resorts around the world but our investigations have revealed that in several instances the
discounts are not in fact guaranteed. The products are not linked to accommodation schemes subject to the Property Timeshare
Control Act 75/1983 (“the Act”), and are in reality travel packages unrelated to products subject to the Act.
The typical business practice of the “DTC” appears be either to advertise in the media or by direct solicitation through usage of the
databases of various timeshare resorts or clubs - which usage our member clubs have indicated is not authorized - extending an
invitation to attend a presentation to discuss the sale of your week or points.
However it has been reported to us that at these presentations, you are asked to sign sale documents for your weeks and points
and at the same time offered a membership in the “DTC” (the purchase of this membership is inextricably linked to the sale of your
weeks and points, i.e. you cannot do one without the other). It has also been reported that you will be advised that you will get the
proceeds of the sale of your week / points through a cash back / reclaim guarantee scheme. However, there does not seem to be
any mention that the cash back scheme may extend over a period of up to 4 (four) years. Whilst you might expect that by selling
your points/weeks, you will be paid immediately, it seems that this is not the case and payment is deferred to sometime in the
future.
Some of the “DTC” then lease back to you the very weeks/ points you have sold to them.
Should your timeshare weeks or points be resold by entities that are inexperienced in the marketing of timeshare products and
secretarial procedures related to the transfer of a timeshare week or points, you could be exposed. All resorts and clubs have
scheme rules in terms of the Act and Share Block Control Act 59/1980 and on re-sale and transfer of weeks and/or points, stringent
formalities are required to protect both the seller and the purchaser.
It appears that the cash back / reclaim guarantee scheme described above does not fall under the control of the resort or club
concerned and this could jeopardize future payment of annual levies and membership fees.
You are urged to exercise caution on any solicitation of the sale of your weeks or points. Please also note that some of the “DTC”
do not adhere to the five day cooling off period nor comply with the National Credit Act and/or the Consumer Protection Act.
The “DTC” that have been approaching time share owners may operate under different business names, but the following have come
to our attention – Travel Club International, Global Trekker Alliance, Timelinx, Incentive Leisure Group with Designer Way Vacation
Club.
For the protection of timeshare owners, we recommend that VOASA affiliated re-sale agents / brokers mandated by affiliated resorts
and clubs be utilized as no “DTC” are affiliated members of VOASA. For further guidelines on re-sale of weeks or points, please
consult our web-site, http://www.voasa.co.za, or your resort or club direct.
Yours truly,
Alex Bosch
Executive Director
Moved from Auction Scams - Ralph
