Friday, May 11, 2007

WELCOME TO TIMESHARE SOUTH AFRICA

This site has been designed to guide you through the minefield of South African Timeshare. Although it does have its benefits, South African Timeshare has often been used to manipulate people into investing and parting with their hard earned cash. Not every timeshare operation or marketer is underhanded but it pays to go into any dealings with them with both your eyes wide open. Local operators have perfected the methods long tried and tested by their European and American counterparts. If you have any comment, positive or negative about any of the topics on timeshare, then please feel free to leave a posting.

PURPOSE OF THE BLOG


For too long the South African public has been bled dry by unscrupulous Timeshare operaters and marketing companies. The sole purpose of this blog is to identify pit-falls, scheme's and underhanded methods that these vampires use to ensnare you and bleed you of your hard earned money. As an ex-industry insider (with 15 years experience in the industry) I am able to give you good, unbiased and sound advice. This advice is often lacking when counselling is needed when faced with a timeshare dilemma. South African consumer are growing wise to their rights and its about time that the wolves are seperated from the sheep. It is not my intention to blacken the reputations of any company that may be mentioned or on the other hand to promote those who do operate above the law and in good faith. Rather, it is to give you, the consumer, the best possible unbiased advice that is normally unavailable and if it is, comes at a premium. I do request, however, that you be honest in your posting, giving as much detail as possible. If the advice is taken and you still get no relief from the offending party then our section on consumer watchdogs will be of much help. These operater's hate having their dark deed brought into the light. Please share this blog with as many friends as you can. Its success relies on your word-of-mouth advertising.

METHODS OF TIMESHARE MARKETING


All timeshare operators follow at least one of the following methods of marketing. I will advise you on pit-falls of each so you can be prepared when marketed. Remember that NOT all operaters are underhanded - there are geniune, as few as they are, operators in the timeshare industry - so we need to be fair in our approach.


METHOD ONE: THE TELEMARKER

How many times have you received a call informing you that you had won a prize or rather one of several prizes? The catch? Both you and your spouse have to attend a 60 minute presentation together. Firstly, the reason that they want you to be together is that they want you to make a financial commitment and make it one the day of the presentation. They will not allow you to go home to ponder the benefits but will lambast your emotions and reason - beating down all forms of intellectual resistance. The prize! You will NEVER be guaranteed a single prize but rather one of the selection of prizes on offer. If you are guaranteed the top of the range prize then it is unlikely that they will give that guarantee to you in writing without the small print. Their marketing is aimed at your greed which will lure you into their waiting hands. The bigger the prizes the greater the lure! Normally a holiday is offered - and this is the most likey prize that you will receive. The reason: the holiday is in one of the resorts that the operator has access to therefore it costs them nothing to give it to you. The catch is that the holiday time (when) and location (where) is at the discretion of the timeshare operator or marketer and is invariably only out of season and for a maximum of two adults (sorry the kids stay at home for this one!). Further, the catch is that you have to pay a registration fee (which you will forfeit if you don't accept their offer of WHEN and WHERE). This registration fee is a nominal fee of normally between R200 and R500 - which if you consider, is not a bad price to pay for a weekend (friday to monday) or a midweek (monday to friday). It is excellent value if you can get one of these holiday vouchers to work. Now back to the telemarketer. S/he earns commission only if you pitch to the presentation and you spend the nominated time there. So s/he is hell-bent on getting you there at any cost. Some operators don't mind the method that they use only that they get you there so their salespeople can work their magic on you. The telemarketer earn's on average of R2500 to R5000 per month and it has to be the worst job on earth. They have to deal with rejected EVERY minute of the day. But, work is hard to come by in the New South Africa so they perservere. You are reminded to bring either your cheque book or credit card with you. "Why?", you ask in horror. "To identify yourself", of "you stand a chance to win an additional prize if your numbers match our lucky numbers". This is hogwash. They need you to pay a deposit (on the night) so you need these little items handed. They won't let you go home to fetch them, because, alas, they no that you won't return after all the pressure that they have applied on you is finally released once you are safely back in the comfort of your own home. The telemarketer will tell you that there are NO catches and NO cons and furthermore that you are under NO OBLIGATION WATSOEVER! Try telling that to the persistent salesperson - you'll be humilated and taunted like you've never been before! So lets say you look past what I have said and you decide to go to the presentation (maybe you feel you may stand a chance to win because the telemarketer sounded so convincing and sincere or/ maybe you felt sorry for the telemarketer or/ maybe it may be educational) please move on to the next section called THE PRESENTATION.


METHOD TWO: THE OPC

This is the person that bumps into you at the local shopping centre of as you stroll along the Durban beachfront. They will ask you to complete a survey or to enter a competition. Once you stop and entertain this person it is unlikely that you will escape! They will proceed to tell you that you have in fact won a prize and that you have been entered into a larger competition to win a grander prize. The catch? Follow them to a quick show followed by your prizegiving or to tell you that someone will be in contact to invite you to collect your prize (then you become a 'lead' for the conventional method of telemarketing'. A word of warning - just as in the case of the telemarketer you are unlikely to win that top prize, infact, you'll probally be a couple of thousand poorer with an hour lsot left clutching a bottle of cheap sparkling wine.


METHOD THREE: TV Advert

A colourful animation in the morning invites you to phone in. Your number is then logged and you can expect a call from a telemarketer (once they get your name - they don't let go).


METHOD FOUR: The Maildrop

This is normally practised by the better off and higher calibre timeshare groups. They send you a colourful prospectus and brochure and invite you to make contact with them to come and have a complimentary weekend or midweek stay with them. The catch is you pay a minimal fee and that you allow a sales consultant to give you a presentation during your stay. It is a good method - one that I prefer. Normally, one of your friends, family or associates has joined and they have referred your name. This is sometime worth a look because you get all the details (including the fine print) in your hands even before you commit even a minute of your time to these people. This is a much more honest way of marketing - it gives you much more choice even before you attend.


A word of caution: South African legislation has been amended to make cold calling and telemarketing illegal this year. The route these companies are planning to go is to stop you outside shopping centre's and have you complete a competition or questionaire. BY COMPLETING A COMPETITION OR QUESTIONAIRE YOU ARE GIVING THEM PERMISSION TO TELEMARK YOU IN THE FUTURE! The fineprint is misleading - it speaks about further communication regarding notifying you of your prize. Once you have completed any type of application/questionaire/competition you cannot stop them from telemarketing and harrassing you in the future.

THE PRESENTATION

When you arrive (along with your spouse if you are married - so that you can make decision on the day of the presentation) you are asked to fill out a registration sheet. You are asked to do so in order to 'qualify you'. If your income bracket is below the stipulated figure then the marketer who managed to get you to attend is not paid or may be paid less. It also catogrises you into how much you can possibly afford and depending on your financial status you are then passed on to a consultant. The higher your income the stronger the consultant is assigned to you in selling and psychology. You are then given an emotional presentation. The whole presentation it to take you on a high - making you feel good about taking your family on regular well deserved holidays as oppossed to being a low-down child abuser who neglects their family by staying at home. Right through the presentation they will get you to agree with them (called a tie-down in timeshare speak) and then at the end when you want to re-consider or have time to think about it, throw it in your face. The best thing to do during a presentation is to remain unresponsive! The more you speak, the more you will allow that salesperson to see what angle to 'sell you' with. Be very careful, these people are extremely well-trained and have many years of selling psychology behind them not to mention the pressure that it is placed upon them if they do not make the sale.

THE PRODUCT

There are two main timeshare products on sale in South Africa:
1). Coventional timeshare
2). Points (or sometimes marketed as 'shares')

CONVENTIONAL TIMESHARE
This is when you invest in a particular resort at a particular time of the year in a particular size of apartment. It is very un-flexible but at least you are guaranteed availabilty each year. The timeshare can be sold for a limited term (ie 20 years) or for in-perpetuity (for life - can be passed on to heirs). Sure, you are told that you can make use of RCI (Resorts Condiminiums International) to exchange to other resorts but often this in uncertain because members of RCI do experience availability problems. Exchanging does attract an exchange fee. This fee is quite expensive for a local exchange but normally a good deal if you exchange abroad. Coupled with these costs you pay an annual levy from R2000 and up. This levy is subject to change and it does go up each year. Should the resort need to raise a special levy for whatsoever reason then you are liable. Some resorts also offer what they call a 'flexi' week which is a more flexible option whereby you can holiday anytime within a prescribed season (low, mid, high, peak1, peak2 & peak3).

So is timeshare a good deal?

It can be a very reasonable guaranteed annual holiday and inflation fighter provided:
1). You buy from a reputable marketing company
2). You buy a 'Gold Crown' (top quality) resort (you will need this if you want to make good exchanges.
3). Check the levy history (and if buying 2nd hand timeshare, that all the levies have been paid up-to-date).
4). You must make use of it each and every year to get the full benefit.
5). Expect to pay anything from R35,000 for a good week (anything less I would be wary of).

POINTS (OR SOMETIMES MARKETED AS 'SHARES')
These are sold on the basis of you can go anywhere and you can go anytime. This is the least favourable of all timeshare options. The way it works it that the Developer buys timeshare weeks and puts them all into a pool and then markets it on the basis of flexibility. Often you won nothing and always have availabilty problems. STAY WELL CLEAR OF ANY POINTS ORGANISATIONS! Even while some of them may have good intentions of providing members with good annual holiday almost ALL of them fall short of their promises. Ask any points owner what their biggest gripe is and they will tell you that there is NO/LIMITED AVAILABILITY.
You are investing in.............. NOTHING! Sure you get an owners certificate/share certificate but it means nothing. All you have invested in is the right to use accomodation within that developers pool of stock. You still pay a levy (which is marketed as subs or membership fees) which is almost certainly higher than that of any timeshare week within the same time.
Points have absolutely no resale value. Check out the news paper or Junk Mail for second hand points - they sell for a small fraction of their original cost! For example: The Holiday Club (marketed as South Africa's biggest points organisation) sells their points for almost R2000 each. Ten points (R20,000) may give you a week in the lowest of all seasons and the worst of all their resorts. If you try to sell these points to a timeshare resale company you will only be offered in the region of R50 (yes FIFTY RAND) and R250 per point. Calculate your loss!!!!! The reason for there been no re-sale value is the high commissions paid to the sales people combined with the high marketing costs that the marketing companies incur. Out of the initial investment amount up to 65% is used to pay marketing costs and commission, 10% is used for administration and the balance (25%) is used for development costs. Hence, there is NO value to second hand points.

THE PRIZE (OR GIFT FOR ATTENDING)

There is always a catch when it comes to the prize. Remember that the prize is an end to a means. It is the bait to lure you to the presentation. You are always told that you have one of the following rather a specific prize. The reason that they do this is to get you to think that you stand a chance to win one of the big prizes while the odds are stacked against everyone attending that they will each get a complimentary prize with little value (and almost certainly with some cost to redeeming it). THERE'S NO SUCH THING AS A FREE LUNCH.

If you are promised a prize then get them to promise in writing that you have won a specific prize (get the marketer to name the prize and its value) without the obligation of buying anything!
Check out this soundbite about a couple in Durban who were conned into thinking that they had won a prize. This was featured on East Coast Radio's CONSUMERWATCH:

THE SALES PITCH

Invariably you are offered a deal that is only valid for the day and should you choose to walk away then you will loose it. NO REPUTABLE BUSINESS CONDUCTS BUSINESS LIKE THIS! Normally, what they do is to offer a discount. The truth is, there is no discount! If you come back the next day and invest you will get it at the same price! Why? The salesperson inflates the normal price and then offers a discount bringing it back to the regular price! (this is against the TISA code of conduct but every company that I know of still does it!). Another way is to double the price then offer you the equal amount of timeshare or points back if you invest on the day free - all you have done is buy twice as much as you should have (there is NO discount - all timeshare companies work on one set price - don't be fooled).

ALWAYS:

1. Ask for everything in writing - contract, details of the developer & outlay of the scheme
2. Request at least two weeks to consider, re-consider, research
3. Look for 2nd hand prices of the same scheme (it will be minus the high marketing costs and commissions).

NEVER!

1. Sign on the day (disregard any promises of what you will lose if you do not sign)
2. Commit to anything
3. Hand over your credit card
If you follow my advice you will thank me for it later - I promise you!

HOW TO CANCEL A TIMESHARE CONTRACT

South African law says that you have 5 (five) WORKING days (not including week ends) to cancel any timeshare or timeshare type agreement.

YOU MUST!:

1). Always cancel in writing! Fax a copy to the marketing company, the developer and TISA and remember to keep the fax receipt.
and.....
2). Phone to make sure that they have received it (take the name of the person you speak to and record the time and date of your call).
and.....
3). Post a copy to the marketing company, the developer and TISA (make sre you send it by registered mail so that you have proof of postage).
and .......
4). Return any literature, sales pack or promotional items that you were given but remember to keep the copy of the contract that you signed. If you keep anything baring the contract they will find a way to deduct it from your deposit or any capital that you have paid.

I know that this seems to be extreme, but these people will stop at nothing to prevent you from getting our of your commitment to them.

You need not give any reason for your cancellation as it is your right to do so by law. The company has to refund any monies that you have paid (in terms of a deposit or capital amount) in full and are NOT allowed to deduct any administration costs. In your cancellation letter request the refund of any monies paid within 14 (fourteen) days and warn that any time after this will incur interest (your right too).

Do not be bullied or persuaded - if you have changed your mind it is your right and you are allowed to do so with the full protection of South African law.

TIMESHARE INSITUTE OF SOUTH AFRICA (TISA)


This body was set up by the timeshare companies to self-regulate their industry and to prevent the South African Government intervening in its business. The SA Government had long toyed with the idea of following the European counterparts by enforcing a minimum 14 working day cooling off period. Coupled with a two week cool-off in Europe, the timeshare companies have to make use of an independant service who contacts the potential investors and asks them if they wish to continue with their timeshare investment at the end of the 'cool off' period. One can only understand what volume of their business is diminished by this process. The reason that this was instituted was because of the wholescale racketeering that was been conducted in the Canary Islands by timeshare crooks like Jack Pesche and co. The Cook Report which is a prominent investigative journalist programme (similiar to Carte Blanche on M-Net) went in undercover and blue the lid off what was going on. After a huge outcry across the UK and Europe the two week cool-off was introduced. The SA timeshare co. have long raped the 'unitiated' emerging black market having long since lost steam with the white market in South Africa. The black market was seen as 'soft' and 'vulnerable' and there was a lot of money within this market as it had the buying power. It took a couple of years, but after a while The Bad Business Practices Committee (instituted by parliment) was swamped with complaints. The ANC, ever protective of its elective started to take a serious look at the state of South African timeshare and its unsavoury practices. To prevent the same thing happening in South Africa as had happened in Europe, the industry decided to self-regulate to prevent outside and Government intervention hence TISA (Timeshare Institute Of South Africa) was born (a section 21 company).
All the major timeshare companies sit on the commitee of TISA and contribute towards its funding (between R50 and R150 is contributed from each sale of timeshare). Firstly they introduced the 5 day revision period (cool off clause) which was later extended to a 5 working day cool-off. This seems to have pacified Government intervention but there has been talk that Finance Minister Trevor Manuel is still concerned over their self-regulation and feels that the marketing practices should be examined further. Time will tell.........

Contact details:
Timeshare Institute Of South Africa
Website: www.tisa.co.za

PHYSICAL ADDRESS:
Unit 10 Roodebloem Office Park
20 Bella Rosa Drive
Rosendal
Bellville
7530

POSTAL ADDRESS:
P O Box 2823
Durbanville
7551

TEL: +27 21 914 9693
FAX: +27 21 914 5202
E-mail: tisa@tisa.co.za

BRUCE CAMERON OF PERSONAL FINANCE TAKES A CLOSE LOOK AT THE BUSINESS CLUB AND MULTI LEVEL MARKETING TIMESHARE


This article was originally published on the 14th July 2006 under the title MULTI LEVEL TIMESHARE IS NO HOLIDAY. You can get the award winning Personal Finance every Saturday in The Independant On Saturday (Durban) and The Saturday Star (Johannesburg). You can also view this article on Personal Finance's surperb website along with many other interesting articles (www.persfin.co.za)


Timeshare holidays have been around for years and in many instances they are a very good deal.For example, I own timeshare at the Vacation Club at Sun City. One year, my one week there got me two weeks at a ski resort in Switzerland via a swap through the RCI timeshare exchange system.Unfortunately, there have also been some major timeshare scams. One of the bigger ones involved Holland Moorehouse, which disappeared without providing the promised holidays.Most of the more recent scams have involved the points system of timeshare. With the points system, you do not buy into a particular resort, but you purchase points for holidays at various resorts. The points system companies buy resorts, or buy into resorts (that is, a fixed number of units) or they hire units from resorts.Research I did a few years ago showed that, on the whole (but not necessarily always), you got better value for money by buying into a resort and then using RCI if you want to stay somewhere else.My one problem with RCI is that it never seems to be able to book you into one place for more than a week. I suspect this may have something to do with the fact that it charges for each booking. So booking you into three different venues over three separate weeks provides RCI with more income than three weeks at the same venue.I am raising timeshare again because:
Personal Finance has received a number of queries about an Australian multi-level marketing outfit called the Business Club, which is now very active in South Africa. The Business Club sells a points timeshare product called the Holiday Club.
Readers have complained that the points system does not meet their expectations or does not provide suitable accommodation at convenient times.
Manie van Schalkwyk, the Credit Information Ombud, says his office is seeing an upswing in consumers being listed at credit bureaus for non-payment of timeshare or holiday club purchases. Most points timeshare contracts commit you to paying for the points for holidays for a number of years. You must still pay if you do not take a holiday. And pay you must, even if you do not like the look of the venues on offer. This is a major complaint about the points system - namely, many of the venues are poorly situated or are of poor quality, while the better resorts are seldom available at convenient times.Van Schalkwyk says: "Unfortunately, most of the consumers who come to us for help with timeshare or vacation club issues are, in fact, victims of their own inability to read the contracts that they happily signed when offered 'free' holidays or other benefits."People go along to presentations and see wonderful resorts in exotic places and it all looks very affordable. Many of the salespeople are agents and exist on the commissions they make. Their sales tactics are very aggressive and they resort to telling the consumer partial truths."Van Schalkwyk says consumers are so busy concentrating on the film or presentation that they lose sight of the fact that they are signing a binding contract.What worries me is when a multi-level marketing organisation overlays the points system. Most of these organisations have dubious marketing methods. Multi-level marketing is based on one person signing up other people, who, in turn, sign up others. Each level in the organisation is paid a percentage of whatever amount is paid by people in the level below it, and the sponsors also take a slice.For a multi-level marketing company to be legal, it must offer a product.These pyramid organisations make many exaggerated claims, including that the system creates more wealthy people than anything else. This is plain rot. They also use hard-sell tactics. Someone who has already signed up invites you to a meeting. The meetings have the atmosphere of a religious revivalist session in which speaker after speaker hammers home the message that joining the organisation is the only way to get rich. The problem is that if these structures were perfect, everyone would eventually sign up and everyone would be back at square one, less the amount paid to the sponsors. In reality, the pyramids are fragile and people drop out.A legitimate reason for joining would be if you need the product being sold, and you should join only once you have assessed that the product is appropriate and offers the best value for money.Most multi-level marketing organisations don't want you to consider their proposals rationally, so they seldom allow you to take away the documentation and study it. This is also a fault of the timeshare points industry.You should never sign up for anything - be it timeshare, life assurance, an investment or some multi-level marketing scheme - before you have studied all the documents for two weeks, and then only after all your questions have been answered in writing and you have been able to make comparisons with other products. Signing up under pressure only makes you a potential sucker.Before you sign on the dotted lineManie van Schalkwyk, the Credit Information Ombud, has the following advice about buying timeshare:
Don't let salespeople rush you or make you feel stupid or ignorant if you ask questions. Don't assume anything; ask and make sure. It is your right as a consumer to question anything.
Make sure that you can afford the purchase and that there are no hidden costs.
Take careful note of the time limits that apply to cooling-off periods. If the contract states you can cancel in writing in five days, but you cancel after six days, you will end up paying for something you do not want.
Always cancel contracts in writing and get a written acknowledgement that your letter has been received, or ask the company for a letter stating that it has cancelled the contract. Telephoning the salesperson is not good enough. Do not be naive and rely on the goodwill of salespeople, who are out to earn their commission. There are some good salespeople who explain things properly, but there are also those who just want their profit and who will make misleading promises to get you to sign.
Some salespeople ask you to fill in a contact "to qualify for a special rate", but say you can withhold your credit card details until you make a final decision about whether you want to purchase the timeshare. The salesperson tells you that if you want to cancel the contract, you just need to telephone the company and ask the salesperson to destroy the contract. But this does not happen and the contract is processed.If a you sign a contract and it is processed, the contract is enforceable and you are liable for the outstanding money, even if you have received a verbal promise from a salesperson that he or she will destroy the contract.
Check your contract. If a salesperson tells you something that is not in the contract, it is the contract that is going to be believed when you are listed at a credit bureau and not a partially remembered conversation with a salesperson who may have left the company concerned.
If you have a complaint against a timeshare or holiday club sales company, you can telephone the Timeshare Institute of South Africa on (011) 805 3027. To contact the Credit Information Ombud, telephone 0861 662 837; or write to Postnet Suite 444, Private Bag 1, Jukskei Park, 2153; or email ombud@creditombud.org.za. The ombud's website is at http://www.creditombud.org.za/

SO WHO IS YOUR TIMESHARE CONSULTANT?


He or she is your average Joe trying to make a living, perceived to be selling a pig-in-the-poke to some poor unsuspecting member of the public. They are not evil just trying to make ends meet. Their brief is to 'sell you on the day' because it is an emotional product and buyers 'just don't come back'. They are set high budgets and are continually under pressure from their seniors and managers to 'close you' and get you to sign today! If they do not get you to invest then you can expect some type of retribution like getting the most difficult customer the next day or even possibly no customer. And hell, we all know that in the world of timeshare no customer means no commission. And if the poor sod doesnt earn commission how must he or she live? Theyve got no basic salary, no pension fund or medical aid so its do or die for the commission. And you know the old story, ........ it was me or him! So next time you're at a timeshare presentation, don't waste this poor soul's time with empty promises that you'll be back to invest! Rather tell them the truth - that maybe it doesnt suit you or your families needs, or even more honestly that you just attended to collect the prize. But if you are really swayed by their professional presentation and the fantastic product then tell them that you need the time to decide and compare prices then go home, investigate & contemplate and if it still makes calculated sense, GO FOR IT! Timeshare in a decent gold crown resort with stable maintance levies does make sense. But only when you've made the decision based on your timing and all the facts considered

Timeshare Company: Coming soon

Timeshare Company: Coming soon

Timeshare Company: Coming soon

Timeshare Company: THE HOLIDAY CLUB


Membership: 70,000

Price Per Point: R2000

Average Re-sale price per point: R300

For an independant view on re-sale's check out: http://www.timeshareresorts.co.za/aboutPoints.htm



Managing Director: Jacob (John) Beekman




Its website was down when I looked but you can normally get their contact details from the site.



WHAT MONEY WEB SAID OF THE HOLIDAY CLUB



If you succumb to the hard-sell tactics of those selling points in timeshare scheme Holiday Club, chances are you'll get ripped off. You'll be buying points at close to R2 000 apiece. But if you try to re-sell them the next day, you'll be lucky to get R300.It's this situation that has created some customer dissatisfaction, which is aired on the consumer website http://www.hellopeter.com/.The Holiday Club is a points-based timeshare scheme. According to its website, it was started in 1993, and was the logical continuation of a leisure property company started by John and Braam Beekman in 1971. It is affiliated to timeshare giant RCI.When you purchase Holiday Club points, you are actually buying shares in a public company. Purchasers of points are issued with share certificates.The Holiday Club claims to have over 83 000 members, growing by some 18 000 each year. Director Steve McCarroll says the company posted sales worth R340m last year. "The club has acquired investments in resorts throughout Southern Africa, and developed its own quality resorts in the most popular areas in the country," notes the website. "Currently valued at over R1bn, these investments are administered by the Beekman Brothers Group, and are held by the Leisure Property Trust."The Holiday Club does not market its own points. This function is outsourced to various retailers, who sell points close to the recommended price of R1 895 each.The Holiday Club also has a direct marketing scheme called The Business Club, in which members earn commission for introducing new business.The main gripe of dissatisfied Holiday Club customers seems to be misleading sales pitches, which results in disappointment when the time comes to convert points into holidays. They say that the Holiday Club is not prepared to re-purchase its points at any price. Re-sale market is bestMcCarroll tells Moneyweb that The Holiday Club applies itself to selling new points only. And while re-possessed points might be re-sold, it is not the company's main practice. McCarroll says the company refers interested sellers to specialist re-selling companies approved by the Timeshare Institute of Southern Africa (Tisa), a self-regulatory body for the timeshare industry.One such re-seller told Moneyweb that the highest price he's ever seen Holiday Club points fetch in the second-hand market is R650. He says that most customers are happy to let their points go for as low as R300 apiece.Another re-seller was prepared to sell Moneyweb points for R900 including VAT and his commission.Thus it makes a lot more sense to buy your points in the second-hand market than new. Transfer of points between buyer and seller costs R1 000.Buyer bewareTisa director Alex Bosch warns that the onus remains on members of the public to familiarise themselves with the content of any agreement before signing it.McCarroll echoes this sentiment. He stresses that Holiday Club points must not be seen as a financial investment, even though they take the form of shares. Buyers need to be aware that the points should be purchased for holidaymaking purposes, and that there are ongoing costs in the form of an annual levy. Bosch says that Tisa has seven pending complaints regarding Equitac Commodity Brokers, a major retailer of Holiday Club points. But he says there is no disproportionate number of complaints made against The Holiday Club, in comparison to other vacation clubs operating in the marketplace.

Timeshare Company: FLEXI-CLUB


Physical Address
1 Crompton Street
Pinetown
3600
South Africa

Postal Address
P.O.Box 1583
Pinetown
3600
South Africa

Telephone+27 (031) 717 7300
Fax+27 (031) 709 3098

Website: www.flexiclub.co.za

Timeshare Companies: CRI


CRI stands for: Club Resorts International
Members: 20,000
Price of point: R1,500
Resale price: R400
For an independant view:



Website: http://www.crisa.co.za/

Physical Address1 Crompton Street
Pinetown
Kwa-Zulu Natal
South Africa

Postal Address
P.O.Box 1583
Pinetown
3600
South Africa

Telephone+27 031 717 7662
Fax+27 031 709 1810