Avoid this holiday scam!

If you are thinking about taking a well-deserved break, watch out for this holiday scam..

Here’s a scary fact for you – around 400,000 UK consumers fall victim to bogus holiday clubs each year, according to the Office of Fair Trading (OFT).

That’s a lot of people.

Although many holiday clubs are perfectly reputable, unfortunately, alongside them are numerous bogus clubs whose sole purpose is to con you out of your money.

How do these scams work?

Often these scams start when you are either approached by a scratchcard tout (usually when you are on holiday) or you receive a phone call at home. Either way, you will be told you have won a ‘free’ holiday and all you need to do in order to collect your prize and learn more about it is to attend a presentation.

Sounds simple doesn’t it?

The problem is by attending the presentation you could end up losing a vast amount of money. In fact, according to the OFT, the average victim loses more than £3,000 through bogus holiday clubs.

The presentation

Let’s say you decide to attend a presentation out of curiosity. You arrive at a plush hotel and are given a glossy brochure which makes it all look very professional and convincing.

You take a seat, the presentation starts, and you are made to feel as if you are joining an exclusive holiday club which will allow you to travel to many exotic destinations and stay in top-class accommodation.

It all sounds wonderful, but the sad truth is it isn’t wonderful at all.

What you will really be getting

According to the OFT, after spending thousands of pounds, consumers often find they have bought little more than access to an internet booking service offering the same service they could find in a high street travel agent.

Even though you might believe you can take a holiday whenever and wherever you fancy, the truth is that no dates or destination are guaranteed and holidays are often not available when you want them, proving completely useless.

You will probably also be told you will get your cash back after four years, making it seem like a worthwhile investment, but in reality, there is no guarantee this will happen, and the company may not even be there in four years’ time anyway.

Other things to watch out for

There are a number of techniques used at presentations which are designed to lure you in. For example, some presentations go on for hours – sometimes as many as six – so that by the end of it you are so desperate to leave, you sign on the dotted line in haste.

You may also find they ply you with plenty of free alcohol so that by the end of it you are feeling more relaxed and are more likely to sign up.

Another technique to watch out for is when they tell you they have a discounted offer valid only for that day. This is very unlikely to be the case, and is simply a way of making you believe you need to sign up there and then.

Often you will also find you have very little time to view the contract or discuss it with anyone, making it harder to understand exactly what you are signing up for.

How can I avoid being a victim?

First and foremost, if you are approached by a holiday representative with a scratchcard, refuse it and walk away. If they try to invite you to a presentation, simply don’t go.

However, if you do end up attending a presentation, there are three important questions you should ask yourself:

1) Can you take the contract away, mull it over, and come back a few days later with a decision?

2) Do you have any cancellation rights and are they written down?

3) Are any verbal promises from the presentation also written down?

If you answer no to any of these questions, walk away without signing anything.

What to do if you are a victim

If you have already been trapped into signing up for one of these holiday clubs, the bad news is the OFT say they cannot help you claim any money back. However, they are interested in hearing about your experiences as they may be able to prevent that particular club from using these tactics again, so do put your complaints in writing to the OFT.

If you would like advice on your consumer rights, you can contact Consumer Direct, who will be able to help you.

By following these steps, we can hopefully prevent these bogus holiday clubs from preying upon more people and conning them out of their hard-earned cash.

If you have been affected by any of this or are aware of any similar scams, you can share your thoughts with other Fools using the comment boxes below.

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