Tune-up mooted for timeshare

LONG WAY AHEAD: DTI PREDICTS IT WILL TAKE A WHILE

Board of inquiry suggested shorter-term contracts, subject to renewal.

All timeshare contracts must be defined as fixed-term contracts, running for a fixed shorter period, subject to renewal by agreement.

Consumer rights in the CPA’s Section 14 (which deals with fixed-term contracts’ expiry and renewal) apply automatically if a consumer cancels.

National Consumer Commissioner Ebrahim Mohamed said there’s also an opportunity to consider a revision to the Property Time Sharing Control Act.

An important recommendation is that a provision be prescribed by the minister for clubs to disclose an email address where notice of cancellation is deemed to be received once proof of remittance is provided.

Bone of contention

A requirement that consumers only cancel contracts through registered mail has been a bone of contention, as it often meant members couldn’t meet the fiveday cooling off deadline allowed by the CPA.

The inquiry recommended that a platform be created for the cashing-in, exchanging and reselling of points.

The NCC accepted medium to long-term proposals that a comprehensive piece of legislation that centralises regulation of SA’s timeshare industry be passed and a new regulator be created to enforce compliance.

“The NCC anticipates these recommendations will be implemented over the medium to long term, as well as in the short term, depending on the willingness of industry to engage in good faith with us and other stakeholders and regulators.”

Frustration, anger

The commissioner said the vacation ownership industry has been a source of frustration and anger for many consumers.

“It was most disturbing and sad to see elderly, vulnerable pensioners sob and plea with government for help and relief at these public hearings.”

He stressed the intention was never to punish the industry, but to ensure consumer transactions are fair and legally compliant.

Delayed reaction

The DTI’s MacDonald Netshitenzhe said it would need to analyse the report and seek legal guidance regarding the CPA and other legislation, competition and trademark issues.

The DTI would work on this internally in 2018 but the legislative process won’t start this year. Next year would be unpredictable because of the election, he added.