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Beware of dubious holiday travel schemes - CHOICE # 375

  • 2008.01.15

Consumers are warned to be wary of the malpractices of dubious holiday travel schemes.

The Consumer Council has recently received complaints that are very similar to those leveled against time-sharing schemes.

But instead of time-sharing of holiday home or resort hotel accommodation, the new tactic is to sell holiday travel schemes.

In a typical case, a complainant got called up one day that a prize was ready for his collection in appreciation of his help in responding to a recent telephone survey, and that a free seminar on travel would also be provided.

He duly showed up at the company office, but was quickly persuaded to join a holiday travel scheme being promoted by the company.

Two options were offered: First, pay in one lump sum of $70,000 to become a scheme member, and henceforth enjoy a 7-day holiday travel at designated overseas resorts once every two years.

Second, pay on monthly instalment, with cash or bank account transfer or credit card, a total sum of $90,000 as membership fee, and henceforth a 7-day holiday travel once every year in the next 30 years.

The complainant declined but the persuasion and bombardment went on relentlessly.

Exhausted and desperate to leave, he finally backed down - signed and paid a deposit of $1,200 for the purpose of applying to join a scheme of 15-year duration, by monthly instalment of $500, on the belief that he was not qualified (according to the staff), and his application would be rejected anyway.

Later, he received a notification of the company informing him that his application had already been accepted. After much negotiation, the complainant had to forfeit the deposit in order to rescind the agreement that he had signed with the company.

Consumers are advised to be on guard for these sale practices that usually begin with a seemingly normal market survey to be followed by a surprise telephone call informing you that you are the lucky recipient of a free prize.

Once entrapped, you will be subjected to grueling sale persuasion to join the scheme at no small cost.

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