Death can’t part widower from holiday contract

THE National Consumer Commission’s inquiry into the vacation ownership industry has heard that not even terminal illness and death could release members from their contracts.

Widower Ivan Sylvester said his wife loved holidays and bought a Flexi Club membership for R8 000 in 1997. She died seven years ago.

When her estate was being wound up by a bank executor, Sylvester was asked about her Flexi Club membership, which he did not want and believed had been settled.

He later received an invoice for R5 000 for Flexi Club management fees.

“They told me, ‘if you can’t pay, we will sell your house to get the money’. My wife left me with this stupid Flexi Club. I never get a holiday. I don’t know what to do. Must I give up my house for Flexi Club? I’m not very educated and can’t fight them,” said Sylvester.

Those who spoke at the inquiry’s hearings in Cape Town yesterday said they had tried to cancel their lifetime contracts but the companies wanted proof of ID, proof of income, six months’ bank statements and, in some instances, medical and rates accounts.

Nine vacation club members spoke of their experiences with Flexi Club, while three had difficulties with QVC (Quality Vacation Club).

Neels Mostert said the National Consumer Commission, when regulating the vacation club industry, should stipulate that exit clauses be included in contracts, as it was in 1995.

Mostert said he would not have bought into his contract had a clause not been in the document which stated that there was a buyback option at 30% of the total value.

Members should not have to forfeit their points for money just to get out of their contract, Mostert added.

He said what was happening was “very disgraceful” and that the companies were clearly in contravention of the Older Persons Act “for financial abuse”.

Trevor Hattingh, spokesperson for the commission, said it intended completing the public hearing by the end of September, and a report with findings and recommendations would be submitted to the commissioner by November.

Thirty-two complainants in Pretoria last week made oral submissions and 193 emailed theirs.

Up to 40 complainants had spoken at the hearings in Cape Town since Tuesday.