33/07    23 February 2007

As part of its scams awareness month the OFT is warning consumers about the dangers of signing up to bogus holiday clubs. Every year 400,000 UK consumers fall victim to these clubs at a cost of over £1 billion, by deceiving and pressurising them into membership.

Today members of the OFT Scambusters team will be leafleting holiday makers at Cardiff, Gatwick and Stansted airports as they jet off, warning them of the tactics used by bogus holiday clubs and how to avoid being taken in by them.

Holiday clubs are marketed as a flexible alternative to timeshare, promising a lifetime of discounted holidays anywhere in the world, but they often promise far more than they deliver. After spending thousands of pounds many consumers find that they have bought little more than access to an internet booking service.

Many consumers are approached whilst they are already on holiday, when they are more receptive to tempting holiday offers, by a 'scratchcard tout'. The card will always be a winner but to collect your prize you will need to attend a presentation to learn more about a new holiday venture.

The presentation will be held at a professional looking sales 'deck' where you will be made to feel as if you are joining an exclusive club offering exciting and great value holidays all over the world in top class accommodation. The truth is that, more often than not, you could obtain the same holidays at the same price via the Internet or at your local travel agency.

The OFT is working with the Spanish European Consumer Centre to warn consumers of the slick sales techniques used to persuade unwary consumers to sign up. As part of Scams Awareness Month and assisted by relevant Local Authority Trading Standards Services we are taking our consumer education message to consumers boarding flights bound for Spain at Cardiff International, Stanstead and Gatwick airports.

Techniques used by bogus holiday clubs include:

• presentations that last so long you are tempted to sign up just because you are desperate to leave
  
• you are not left alone to discuss anything with your partner and you are given a very limited time to view the contract, and
  
• they tell you they have made you a special discounted offer which is only valid for that day placing you under pressure to sign on the spot.

Mike Haley, Head of Scambusters at the OFT says:

'Unscrupulous holiday club companies often don't deliver what they promise and leave consumers thousands of pounds out of pocket. Our advice is to be wary of the scratchcard tout when you are on holiday. If you do go along to a presentation ask the company three simple questions: Do you give cooling off rights? Is everything you promised in the presentation in the contract? Can I take away the contract to consider at my leisure? If the answer to any of these questions is no, then simply walk away.'

NOTES

1. Scams awareness month, is part of an international initiative organised by the International Consumer Protection Enforcement Network. The OFT has enlisted the support of Trading Standards Departments, Consumer Direct, the Advertising Standards Authority and other consumer and industry bodies.

2. The key message of the campaign is to 'stop, think and think again, if you think you may have received a scam offer. The campaign also exposes they key myths about scams that they are victimless, that victims only lose money, and that only the vulnerable become victims.

3. The top ten scams are based on the numbers of victims each year: 1.08million to premium rate telephone scams, 480,000 to pyramid selling and chain letter scams, 400,000 to bogus holiday clubs, 400,000 to internet dialler, 380,000 to prize draw and sweepstake scams, 330,000 to work at home scams, 200,000 to miracle health scams, 170,000 to clairvoyant and psychic scams, 110,000 to loan scams. It is based on research by the OFT involving 11,200 interviews. The ICSTIS, the premium rate regulator has made efforts to fight premium rate scams, such as a tougher code of practice

4. Scams are an OFT priority. Two years ago the OFT launched the Scambusters team and set up the Scams Enforcement Group with partner organisations focussing on law enforcement; consumer education; and cooperation with private sector businesses to disrupt scammers' routes to market.

5. During the campaign the OFT is going to target particular UK regions: the Midlands, South East, North East and Wales. The OFT is working closely with industries who suffer as a result of scams including the National Lottery and the Direct Marketing Association. It will involve nationwide adverts, events and a scams awareness video has been produced.