Consumer Alert - Incentive Leisure, UK

The industry trade body for the vacation ownership industry, RDO (Resort Development Organisation), is advising consumers who have purchased a membership from the Incentive Leisure Group (UK) to check with their local Trading Standards office or their solicitor to establish whether they have been defrauded.

This advice follows a recent court case in the UK, brought by West Berkshire Trading Standards, during which the Incentive Leisure Group pleaded guilty to 11 counts of fraud. The offences admitted by the company concerned the likely value of the cashback scheme and claims that it was run by an independent lawyer.

Incentive Leisure Group and its associated companies have heavily promoted their holiday club membership*, Designer Way Vacation Club, at offices in the UK. Timeshare owners are typically invited to attend a presentation to discuss finding a buyer for their week or points but are subsequently sold membership of the Designer Way Vacation Club, having been told that they would get the money they paid for the membership back through a cashback scheme.

Victims are also urged to forward details of their case to the Office of Fair Trading at the address below. The OFT cannot intervene in an individual case or get consumers' money back for them, but the evidence provided could strengthen any enforcement action to be taken and ensure that those who mislead consumers are prevented from doing so in the future.

Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London EC4Y 8JX

*Holiday clubs, also known as discount travel clubs, claim to offer savings and discounts at luxurious resorts around the world but the discounts are not guaranteed and many customers have reported that the reductions are no better than those available on the high street. The contract can run for 25 years or more.

Purchasers pay a one off joining fee of up to £25,000, then still have to pay in full for each holiday taken.

These clubs are not governed by the European Timeshare Directive and many fail to offer basic consumer protection such as a cooling off period.