Regulator must act against timeshare schemes trapping people for decades in poor value products: CHOICE
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CHOICE has launched a super-complaint to ASIC about the timeshare industry, which alleges at least eight industry-wide potential breaches of the law and is calling on the regulator to enforce the law.
“The timeshare industry is causing deep harm to people through high-pressure sales tactics, poor financial advice and terrible value products that run for multiple decades,” says CHOICE’s Banking Policy Expert Patrick Veyret.
CHOICE collected data from 350 timeshare members on their experiences with industry as part of the complaint. From this survey CHOICE found that:
30% of the case studies wanted to exit their timeshare scheme but couldn’t.
70% of the case studies said they expect that the timeshare schemes, ongoing cost and debt will pass on to their children. The legal status of industry-stated requirements to pass on these poor value schemes to children is disputed by CHOICE and other experts.
Timeshare providers are forcing people to pay exorbitant fees to exit some timeshare schemes. One case study reported that they were asked to pay $29,000 in fees to switch to a shorter contract timeshare scheme.
"Many people are stuck in unfair and expensive contracts running for decades and being told by the timeshare provider that they need to pass this burden on to their children”
"CHOICE has launched a super-complaint to ASIC on the troubled timeshare industry in an effort to get the regulator to take these matters seriously. We're disappointed and frustrated by ASIC’s limited enforcement action while people are struggling with timeshare products." says CHOICE’s Banking Policy Expert Patrick Veyret.
"ASIC has the power to act against unfair and predatory practices in the industry, they need to use it.”
Contact details for case studies available on request.
Media contact: Jim Hook, 0430 172 669, media@choice.com.au
Infographics available for embedding here:
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Documents
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The Timeshare Trap - CHOICE super-complaint to ASIC - May 2021.pdfThe trouble with timeshare schemes by Classic Holidays, Accor, Wyndha.pdfVideos
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Patrick Veyret CHOICE_Timeshares_Prerecorded lines.mp4Patrick Veyret_Overlay footage_Front.MOVCHOICE_Overlay footage_timeshares super complaint.MOVPatrick Veyret_Overlay footage_At desk.MOVCHOICE_Timeshare super complaint document.MOVImages
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Case study footage
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Contact details for case studies available on request.
Key lines_Megan Lewis_Accor.movKey lines_Karen Borowinsky_Accor.movKey lines_Adrian Sadler_Classic Holidays.mov