Case reference number: CRE-E-24584
Start date: Case opened in 2009 following referral from a South East Regional Scambusters Team at Essex Trading Standards and the receipt of consumer complaints by OFT.
Next milestone: A final court hearing against Incentive Leisure Group Limited, Personal Travel Group Limited, Geo Demographic Market Research Limited, Keith Barker and Kimberley Bambroffe. A date for the final hearing has not yet been set.
OFT investigation following referral from regional Scambusters team and receipt of consumer complaints.
Investigation into the activities of the following traders:
The individuals include an executive director and associated sales staff.
Several allegations relating to the alleged misconduct of the traders mentioned above involved in the selling and marketing of holiday products; these include allegations that traders have provided misleading information and/or used aggressive sales techniques and failed to provide cancellation rights as required by law.
Part 8 of the Enterprise Act 2002, the Consumer Protection from Unfair Trading Regulations 2008, the Cancellation of Contracts made in a Consumer's Home or Place of work etc Regulations 2008, and the Unfair Terms in Consumer Contracts Regulations 1999.
The investigation was initiated as a result of a referral from a regional Scambusters team and the receipt of consumer complaints about the activities of the traders. It has been carried out under Part 8 of the Enterprise Act 2002 which gives the OFT the power to investigate traders who may have breached consumer protection laws.
The investigation covered various products associated with holiday clubs and disposal of time shares. Central to the allegations made by the OFT are business models which, the OFT alleges, involve the traders inviting consumers to attend a sales presentation which they believed was about how they could sell an existing holiday time share to the traders, but ended up buying a product such as expensive holiday club membership, with complex terms involved in recovering the cost of the holiday club, or agreeing to join what appeared to be a pyramid scheme on payment of a significant fee by the consumer. The traders have introduced a number of variations to this model since the OFT commenced its investigation.
The investigation has included the collection and review of materials obtained during searches conducted by Trading Standards of various ILG offices and from responses to information notices issued by the OFT. The trading standards offices that have assisted us include Edinburgh Trading Standards, Milton Keynes Trading Standards, North Somerset Trading Standards and Durham Trading Standards.
The OFT has alleged that the traders have provided misleading information and, for traders involved in the selling of these holiday products, used aggressive and misleading sales techniques which induced consumers to purchase products they would not otherwise have bought. In addition, the OFT has alleged that the traders selling holiday products have failed to properly notify consumers of their cancellation rights and have used unfair contract terms.
The OFT also has alleged that the traders cause consumers to think that they will get the value of their timeshares back via a 'reclaim' scheme, when this is in fact not the case.
The traders have denied the OFT's allegations.
The OFT believes it has engaged in appropriate consultation with the traders The OFT sent out initial consultation letters to the traders in June 2010. The letters set out the OFT's concerns with a request that the traders address these and sign suitable undertakings in which they agree to cease or otherwise discontinue the alleged misconduct the OFT believes it has identified.
Although there has been some agreement between the traders and the OFT, the traders deny the allegations made by the OFT and have sought substantial amendments to the undertakings before signature.
The OFT has concluded its consultation. It believes the traders have failed to adequately address the concerns that had been raised in the OFT consultation letters and are unlikely to do so and it does not agree with most of the amendments to the undertakings proposed by the traders. Solicitors acting for the traders have said that their clients do not agree with the OFT in this regard.
In December 2010 the OFT launched court action under Part 8 of the Enterprise Act 2002 seeking a final enforcement order against the traders which may require them to cease or otherwise discontinue breaches of relevant consumer laws.
The traders defended the proceedings.
On 21 January 2011 the Gibraltar Chronicle published a Legal Notice (pdf 455kb) stating that Incentive Leisure Group Limited would be wound up by way of creditor's voluntary liquidation.
The OFT has informed the liquidator about its action in the UK and its interest in the proposed liquidation.
Keith Lawrence was appointed Liquidator of Incentive Leisure Group Limited. His postal address is Haven Court, 5 Library Ramp, PO Box 900, Gibraltar. We understand that creditors with an interest in the liquidation can contact him by email at liquid.ilg@keithlawrence.gi
We are aware that some customers of ILG, PTG or holders of Reclaim certificates have received unsolicited emails or cold calls from people who claim to represent companies who are able to get refunds of fees that have been paid to ILG or PTG including through a class action.
We cannot confirm whether or not these companies are genuine. Therefore, we would suggest that consumers exercise caution when deciding whether to respond to these companies.
In particular, consumers should not pay upfront fees to these companies or travel abroad to meet anyone who claims to be a representative of these companies, without having thoroughly researched the matter first and received clear and written confirmation of the services that are being offered.
We believe that the most appropriate course of action is to obtain genuine and independent legal advice (for example advice from a solicitor). Consumers who paid using credit cards should also consider whether they might benefit from the additional rights set out in section 75 of the Consumer Credit Act 1974 (see below).
Consumers may have additional rights of recovery when purchasing goods or services for a cash price that exceeds £100 but is not more than £30,000 with certain types of credit, for example by using a credit card. The additional rights are set out in section 75 of the Consumer Credit Act 1974, and they apply where there are commercial arrangements between the creditor and the supplier of the goods or services. Such arrangements always exist in the case of a credit card purchase, but they may also exist where for example finance is arranged by the seller.
A consumer may be able to make a claim to the credit card provider or finance company to recover money where he has used the credit facility to pay the trader.
The claim may succeed if it can be shown that the trader was responsible for a breach of contract or misrepresentation.
The credit provider may be jointly and severally liable for the trader's misconduct and as a result may pay back to the consumer the monies paid out to the trader.
If you paid for something using a Mastercard or Visa debit card, you may also have the option of making a claim through their 'chargeback' scheme. For example, you can make a claim from chargeback if there is a fault with something you bought that cost less than £100. However there are strict time limits within which you have to act, after which you will no longer be able to make a claim.
The OFT cannot guarantee that a claim made by a consumer under section 75 or a 'chargeback' scheme will succeed. Much will depend on the circumstances of each case.
Neil Davies & Partners LLP of Calcameron House, 36B Water Street, Birmingham B31HP act as solicitors for Personal Travel Group Limited, Geo Demographic Market Research Limited, Keith Stuart Barker and Kimberley Bambroffe.
Any consumers who hold a Reclaim certificate and have any queries regarding it, including whether they have registered correctly, should contact Reclaim Limited direct. Their contact details are given as:
Reclaim Limited
Avenida General Lòpez Dominguez Nº 2A
Edificio Puerto Azul Nº 3C
29603 Marbella
Malaga
Spain
Telephone: 0034 952 76 64 33
Email: info@reclaim.gi
An initial court hearing was listed to occur on 30 March 2011 to hear an application made by the OFT for an interim enforcement order against all the traders, except ILG.
No interim enforcement order was sought against ILG as it is not trading and is in liquidation in Gibraltar. However, the OFT is monitoring the progress of the liquidation and intends to continue its action through the High Court against the company.
The hearing of 30 March was vacated because all the traders to which the OFTs application referred agreed to the making of enforcement orders by consent.
Martin White, Jonathan Daniels, Mark Gales, Robert Knight and Lily Alderson, consented to final enforcement orders substantially on the terms sought by the OFT. These orders conclude the OFT's action against these individuals.
PTG, GDMR, Keith Barker and Kimberley Bambroffe consented to similar orders but on an interim basis. This means that the orders against them will last until the final hearing of the OFTs court action, when the court will decide whether the orders should be made final.
ILG and PTG sold and marketed holiday club memberships and other holiday based products to consumers. GDMR placed adverts in national and local newspapers and in-flight magazines on behalf of ILG.
Keith Barker was a director of ILG, and is a director of GDMR and PTG. Kimberley Bambroffe was a director of ILG and is a director of PTG. Martin White was a director of ILG.
Jonathan Daniels, Mark Gales, Robert Knight and Lily Alderson were involved in the sale ILG and/or PTG products.
The application for interim enforcement orders was based on a number of allegations against the defendants. Examples of the allegations are set out below.
The OFT alleges that the adverts placed by GDMR failed to disclose the identity of ILG and gave the misleading impression that consumers would be able to dispose of their timeshares and as a result no longer pay maintenance charges for them.
Instead consumers who responded to the adverts were invited to attend presentations where they were subjected to lengthy and high pressure sales pitches which resulted in their being sold expensive holiday club memberships or their agreeing to join what appeared to be a pyramid scheme on payment of a significant fee.
Consumers were often told that this was their only chance to dispose of their timeshares, failing which their children would be responsible for ever increasing maintenance fees after their death.
Also the OFT alleges that consumers were promised a one off right to sign up to a 'reclaim scheme', under which they were promised up to 95 per cent of the value of their timeshare back. The OFT believes that that this scheme may have been subject to terms and conditions which were not properly explained. As a result, it was unlikely that any sum as high as 95 per cent would be repaid.
The OFT also alleges that many consumers subsequently wished to cancel their holiday club membership, but were told they did not have the right to.
Amongst other things the final orders made against Martin White, Jonathan Daniels, Mark Gales, Robert Knight and Lily Alderson provide that they shall not:
See Final Enforcement Order against Martin White, Jonathan Daniels, Mark Gales, Robert Knight and Lily Alderson sealed by the High Court of Justice on 19 April 2011 (pdf 264kb).
Similar provision is made in the interim orders made against PTG, GDMR, Keith Barker and Kimberley Bambroffe. Amongst other things the orders also provide that they shall not:
See Interim Enforcement Order against PTG, GDMR, Keith Barker and Kimberley Bambroffe sealed by the court on 19 April 2011 (pdf 230kb).
The OFT does not provide advice or resolve individual complaints for consumers. Consumers who believe they have an interest in this matter should obtain genuinely independent legal advice.
Team Leader
Simone Higgins (020 7211 8173, simone.higgins@oft.gsi.gov.uk)
Project Director
Jason Freeman (020 72118262, jason.freeman@oft.gsi.gov.uk)
Senior Responsible Officer
Cavendish Elithorn (cavendish.elithorn@oft.gsi.gov.uk, 020 7211 8170)
Media enquiries
Any media enquiries should be directed to a member of our Press Office.
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