The National Consumer Commission will be launching an investigation into conduct of major holiday clubs operating in South Africa.
The probe into the 'timeshare/ vacation ownership industry was announced by Commissioner Ebrahim Mohamed this week in light of a range of complaints by consumers.
Some of the allegations include complaints from customers who say they were duped into signing up for lifetime contracts ; overbooking and over-selling accommodation; excessive levy increases as well as threats of legal action if members cannot pay up.
We have been receiving complaints about the time share industry for years now, we have received since I was the DGI in excess of 2 000 complaints.— Ebrahim Mohamed , National Consumer Commissioner
There were gaps in the legislation for instance that didn't cover consumer protection adequately. So we thought that a study of the entire industry from A-Z to cover not only consumer complaints but issues such as how are points calculated in the point system because that is the system that causes most of the complaints.— Ebrahim Mohamed , National Consumer Commissioner
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This article first appeared on CapeTalk : Legislative gaps in timeshare industry probed by National Consumer Commission