Consumer Alert – Beware Of Class Actions

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4 Sep 2012

Consumer Alert – Beware Of Class Actions

Consumers are advised to be extremely cautious when approached by companies claiming to be part of a class action against timeshare clubs and exchange companies. These entities are aggressively marketing their services to timeshare owners, via emails, newspaper advertisements, etc.


Their modus operandi is to get timeshare owners to attend a meeting in order to assess the size of the potential claim and state that the class action is on a ‘no win, no fee’ basis, however they then offer the timeshare owner the option of joining their travel club making a once-off payment on the promise that they will sell their timeshare portfolio. They also promise to arrange the "transfer" of your club portfolio to a third party, at a cost to you and in addition to that they offer to engage in group litigation against all timeshare operators.


There is no logic in this business practice as they get you to pay to transfer your membership to a ‘potential third party buyer’, (and who will pay the annual levies and membership fee in the meantime?) and then offer to act against the same timeshare company.


If the company you’re dealing with is not a member of RDO, we recommend you walk away. RDO requires its members to sign up to a code of conduct and they are safe to do business with. You can always check the credentials of a company by going to

Never hand over your ownership documents to a company you don’t know is reputable. You may never see the paperwork again but at the same time if the sale is not finalised, you may still be liable for your annual management fees.


And remember, if it sounds too good to be true, it probably is!

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