As Consumer Commission flexes its muscle.
Hanna Barry | 21 July 2015 00:01
JOHANNESBURG – The Freedom Front Plus has submitted more than 4 000 (and counting) written consumer complaints to the National Consumer Commission (NCC) relating to 18 holiday clubs.
Univision – a group that owns Vacation Recreational Services (VRS), which is a management company for a number of holiday clubs including Quality Vacation Club (QVC) and African Club
Innovations – is responsible for more than 35% of these complaints (some 1 400).
Flexi Club, managed by Club Leisure Group, accounts for nearly 31% (some 1 200) of complaints.
Both QVC and Flexi Club are among the largest holiday clubs in the country. In June 2011, QVC had 65 000 members, according to its website, while Flexi Club in 2012 had in excess of 70 000 members.
Club Leisure Group services more than 200 000 holiday club members, Flexi Club’s website claims.
Anton Alberts, Freedom Front Plus spokesperson, says most of the complaints received by the party relate to non-availability of holiday stock at the time people want it and at the quality promised to them.
Difficulties with cancelling contracts also account for a large portion of complaints.
“They [members] have signed perpetual contracts, which is in contradiction of their common law and constitutional rights,” he says.
Alberts says that a number of these contracts “lock people in while selling many more points than there is product available”.
These points have little to no value in the second-hand market, which makes it impossible for people to sell their membership, he adds.
Papers filed by the National Consumer Commission (NCC) against Club Leisure Group accuse the group of fraudulently selling points-ownership as timeshare-ownership.
Pensioners struggle to pay

“Many people are unhappy,” Alberts tells Moneyweb, noting that where members fail to pay holiday contributions they are threatened with legal action.
The Freedom Front Plus became aware of difficulties relating to holiday club membership through its assistance of Transnet pensioners, some 62 000 of who are bringing a class action against the parastatal, claiming R79 billion in assets.
Alberts explains that many of these pensioners were attempting to get rid of their club membership in order to secure extra income. “For many of them it’s a choice between buying food and paying the levy [club membership fee], so we started investigating the matter from there,” he says.
Club Leisure Group said none of the complaints received by Freedom Front Plus have been forwarded to them.
“All complaints sent through to the NCC and VOASA [the Vacation Ownership Association of
South Africa] have been dealt with in the ordinary course of business,” its lawyers said in written responses to Moneyweb.
“Flexi Holiday Club is currently one of the largest clubs in the points industry and makes up at least 30% of the market share. It could therefore be quite possible that the majority of these alleged complaints may well involve our client.”
Univision declined to comment, saying the matter is currently sub judice.
Earlier this year, the NCC submitted an application to the National Consumer Tribunal (NCT) to have the business operations of Club Leisure Group, and its subsidiaries, declared a fraudulent scheme and in contravention of the Consumer Protection Act (CPA).
Last year, it submitted a case against Univision to the NCT.
“The replying affidavits to the allegations made by the NCC have already been served and filed and the matter is therefore ripe for hearing,” Univision said.
“Despite requests to have the matter set down this has not been forthcoming. The matter is therefore currently before the High Court for an order to compel the Tribunal and the Commission to proceed with the setting down and hearing of the matter,” it noted.
“I think it is safe to assume that those club members with problems must have contacted the club first and after receiving no joy submitted the matter to the NCC through us. People send us the applications out of desperation,” says Alberts.
The matter was discussed on a recent edition of SAfm’s Forum @ Eight, on which a number of disgruntled club members called in to air their views.
Complaints against holiday clubs can be emailed to help@vfplus.org.za
.

RJSA 2 days ago
Flexi Club and most other holiday clubs in SA are nothing short of a pyramid scheme. They have caused so much heartache and stress to so many innocent people. I’m so glad that they are finally being investigated. They should be criminalised, in my view.
LOG IN TO REPLY / LIKE 69 VOTES / REPORT / TWEET COMMENT phyllisb 2 days ago
My husband and I were member of the Holiday Club and we thought it would be a great holiday investment when we retire. We were so wrong!!!
We could NEVER get into any of their resorts in the Cape only 1 time we got an awful resort in Umdoti which was so disgusting and dirty, meanwhile all they ever did was put up the Levy. We also owned 1 week x 12 people at Mabula Lodge and they said they could take it over and WE still had to pay the Levy.
Eventually we sold and now are proud to be a part of an International Online Travel Company, 2x2foryou.
We go to the most beautiful resorts and Cruises anywhere in the World and get major discounts on our flights. We are now so happy to be out of Holiday Club they should be closed down.