Timeshare troubles: no quick fix for clients

THE National Consumer Commission (NCC) has released a long-awaited report on the timeshare industry, and while there are proposals into redress for those who invested in vacation ownership and want out, there are no immediate solutions.

National Consumer Commissioner Ebrahim Mohamed told a press briefing in Pretoria that the NCC wanted to find a way of addressing the “plethora of issues raised by consumers”. He said the situation was exacerbated by the nature of the timeshare product offering, “with all its legal and structural complexities”, and a need to improve consumer protection.

According to consumer Goods and Services Ombud’s (CGSO) Magauta Mphahlele, over 400 complaints were received, of which 68% were on timeshare cancellations.

The report broadly recommends changes to the management of timeshare clubs, the competitiveness of timeshare products, marketing – including hoodwinking consumers – credit issues, fairness of contracts, the points system, quality of accommodation, and legislative reform.

Mohamed told of the distressing tales relayed during public hearings held by the commission, and of owners’ frustration, anger and even despair.

“It was most disturbing and sad to see elderly, vulnerable pensioners sob and plead with government for help and relief.

“The greatest discomfort I experienced though was when a Free Statebased consumer told how she had planned to take her own life to escape her debt-stricken circumstances, which were occasioned by ‘a mistake’ she made when she signed up for a lifelong ‘timeshare trap’.”

The commission said it anticipated that its recommendations could be implemented over time, depending on the willingness of the industry to engage in good faith with it and other stakeholders.

The NCC has referred timeshare complaints to the Consumer Goods and Services Ombudsman in recent times, which has facilitated cancellations for consumers.

Mohamed said the biggest issues for consumers related to the points system within the timeshare industry, rather than conventional timeshare, and that these should be fixed-term contracts so that people were not locked in, and there was provision for people to sell or exchange points.

It was most disturbing and sad to see elderly, vulnerable pensioners sob and ask for help

Ebrahim Mohamed

NCC Commissioner