Consumers beware! Complaints against timeshare service are back on the rise.
In the first 6 months of 2009, the number has risen to 123 cases alleging undesirable high-pressure sale tactics by timeshare marketers.
In 2007, there were 118 cases and in 2008 144 cases. It looks like this year's number is set to continue this rising trend to a new high.
The allegations revealed a similar pattern of aggressive tactics subjecting the complainants to hours of bombardment of sale pitch.
Trapped in the premises of the timeshare marketers, the hapless victims finally relented and signed the purchase agreement - but only to regret later.
In nearly all cases, the complainants were enticed by the promise of a free gift - the only condition being to attend a travel presentation of 45 minutes.
Turning up for the gift, the consumers were asked to produce their identity card for collection registration, and to turn off the mobile handset so as not to disturb the presentation proceedings.
The bombardment then began with staff taking turn to sell their schemes until the complainants yielded, signed an agreement and made a downpayment with credit card or in cash.
The attention of consumers is drawn in particular to the offer of a so-called "right of cooling-off period"
The cooling-off period stipulates that consumers can notify the company of cancellation of the agreement in writing within 3 days.
But what is not made known to the consumers is that the purchaser's right to the amount for refund is subject to a deduction of termination fee equivalent to 40% to 60% of the total amount due.
This is a sharp deviation from the cooling-off period protection stipulated in the legislative oversight of timeshare schemes that exists in some countries.
In the long run, the Council strongly recommends the introduction of a cooling off period clause in a sales contract to enhance consumer confidence.
In regard to complainants being allegedly kept from leaving the office, the general legal opinion is that anyone held without his/her consent resulting in a total restraint of liberty, might constitute an offence of false imprisonment. In the circumstances, complainants could report to the police for assistance.
The Consumer Council reserves all its right (including copyright) in respect of CHOICE Magazine and Online CHOICE ( https://echoice.consumer.org.hk/ ).