RDO’s Enforcement Project in Spain dealt with more than 300 alleged fraudulent companies in 2009, uncovering new ways in which consumers are being deceived and leading to the closure by Spanish Police of 26 bogus companies.
The threat of class action lawsuits against RDO members and other smaller timeshare resorts, and the way this is used to con timeshare owners, is a growing concern for the industry, according to Alberto Garcia, Head of the Enforcement Project
An increasingly common kind of fraud involves organisations purporting to have links to law firms, approaching timeshare owners to tell them that their timeshare company doesn’t comply with the new Directive and offer to join them into a class action lawsuit against the company. This is often just a cover to sell them membership of a Discount Travel Club (DTMC).
The Enforcement Project continued to work closely with the Spanish Police over the past year, providing them with 68 reports on alleged bogus companies. The focus of fraudulent activity, however, is shifting to the UK, with the main class action lawsuits and DTMCs found in this country.