Reduction in timeshare complaints leads to restructure of consumer processes

Following a fall in complaints made about timeshare companies, the Organisation for Timeshare in Europe (OTE) and The Association of Timeshare Owners Committees (TATOC) have taken the decision to restructure their consumer facing elements to create a UK based service dedicated to timeshare owners.

VOICE, a joint venture between OTE and TATOC, created in 2002 to form a bridge between the industry and its consumers, will close as of 31 December 2007. Following this the general enquiries and complaints handling function for resorts that are not members of OTE will be taken over by TATOC and OTE’s free of charge complaint handling system and dispute resolution scheme will continue to operate unchanged.

This decision was reached following a consultation period which highlighted that TATOC was better placed to assist consumers with general enquiries and concerns as it is run by timeshare owners who play an active part in their resorts’ owners and management committees. TATOC is also recognised by government bodies.

Complaints about timeshare have fallen dramatically in the past five years. The current figure relating to OTE members is 61% lower than when VOICE was created in 2002, and the move to restructure is testament to the success that OTE, TATOC and VOICE have had in legitimising the industry.

John Ashley, a Director and acting Secretary General of VOICE, comments, “This is a positive development for the timeshare industry and is proof that what we have all been working towards over the last decade is coming to fruition. This change will undoubtedly improve and simplify the procedure for making enquiries about timeshare and will be of great benefit the consumer.”

Whilst timeshare complaints have been decreasing, it is in the field of DTMCs* (Discount Travel Membership Clubs or Holiday Clubs) that complaints have been rising. Whilst the timeshare and DTMCs products are completely different, TATOC will be able to give advice on what to do if consumers feel they have been defrauded by a DTMC.

*DTMCs offer consumers the right to book holidays in the future often for an initial deposit varying from between £3,000 to £25,000, luring the public with the promise of discounts of up to 70% on future holidays, which may not be substantiated.

DTMCs do not own or control the accommodation offered within the club portfolio, and often overstate their access to such holiday accommodation and therefore charge a substantial membership fee for what amounts to little more than a booking service. There are concerns that these Clubs will be unable to fulfil their contractual obligations over the term of the contract, which can run for up to 25 years or longer.

In 2006, the OFT issued a report on DTMCs and stated that over 400,000 people have fallen victim to this scam, costing £1.17 billion a year.

DTMCs are not covered by any specific regulations or legislation but this is under review by the European Commission.