From Pam Newby, Exeter 383654, May 16,2008

Devon County Council's Trading Standards service receives frequent complaints about 'Holiday Clubs'.

In a recent investigation, two directors of a Devon based holiday club, Easysave Finance Ltd, gave trading standards officers binding undertakings not to misrepresent their products to potential customers. They promised not to breach the Trade Descriptions Act or to make misleading statements about so called 'free holidays' where customers had to pay additional charges.

The company, trading as Leisure Time Promotions and World of Holidays based at Brendon House, Sigford Rd, Marsh Barton, Exeter, is now in liquidation. They offered a Holiday Club service, selling points to customers, which could then be converted into holidays at timeshare resorts.

Trading Standards received a large number of complaints from people who had phone calls from a connected marketing company inviting them to a presentation.

Some were told that they would be attending to pick up details of a 'free holiday award'. When they arrived, the company tried to get them to sign up for a Holiday Club. The 'free holiday' also carried an administration charge.

Directors Marc Herbert and Carol Small have now promised to abide by the terms of the Misrepresentation Act 1967, and not to induce consumers to enter contracts by making false representations to them.

The undertaking, given under Part 8 of the Enterprise Act 2002 regulates their future conduct in any business they may engage in.

If the undertakings are breached, Devon Trading Standards can seek a court injunction. Failure to obey a court injunction can result in proceedings for contempt of court.

Councillor Brian Berman, Devon County Council Executive Member for Communities, said: "Members of the public should be wary of inducements such as offers of free holidays from businesses seeking to persuade consumers to enter into expensive 'holiday club' agreements.

"The activities of this holiday company and its directors led to a large number of complaints from members of the public about misleading statements and additional charges in relation to holiday offers. The undertaking we have received should ensure that the named individuals do not engage in this type of practice in the future. If they do, they risk further enforcement action and possible heavy penalties."

A Holiday Club usually offers accommodation for a fixed monthly fee. Members are often tied in for several years to payments made under a loan agreement. Membership fees do not usually include flights and other transport costs and may cost more in total than an equivalent holiday bought through a travel agent.

A phone call out of the blue offering a 'free holiday' in return for answering a short survey on holiday habits is often the way many people are initially contacted. An invitation to a presentation about a new holiday product usually follows.

Attendees of the presentation may then be subject to hard sell techniques for a club package costing in excess of £10,000.

The Timeshare Act 1979 allows purchasers of timeshare products a two week cooling off period. However, a Holiday Club is not subject to the same legislation and therefore a period when people can change their minds is not always available.

Devon Trading Standards recommend that unless people are seriously considering purchasing the product, they do not to attend presentations and should not be tempted by promises of 'free holidays'. They also advise shopping around, disregarding 'today only offers' and rejecting any offers when the company will not allow the paperwork to be taken by people who want more time to consider their options.

For clear, practical consumer advice on a range of consumer issues, people should call Consumer Direct on 08454 04 05 06 or visit its website at www.consumerdirect.gov.uk

Notes for Editors:

Cllr Berman can be contacted on 01626 891871

For further information contact Peter Greene, Fair Trading Manager, Devon County Council Trading Standards service on 01392 382728 or 07890 540784 (mobile).