Durban - KwaZulu-Natal is ranked in the top three provinces for having the highest number of consumer complaints lodged with the National Consumer Commission (NCC) against firms in the vacation ownership industry over the past eight months.
NCC deputy commissioner Thezi Mabuza said the commission had
received 4879 complaints for the period April to November 2016, of which 2628 emanated from Gauteng (53.9%); 750 from the Western Cape (15.4%); and 597 from KZN (12.2%).
“KZN ranks number three, and the biggest timeshare companies are based in KZN,” Mabuza said.
She said the commission’s recently announced public inquiry into the vacation ownership, or timeshare, industry had been sparked by unresolved complaints.
“Piecemeal attempts to resolve the complaints have not soundly addressed the plight of consumers, and in the NCC’s assessment, the inquiry has the potential to bring lasting solutions,” she said.
Top complaint categories included, difficulty in cancelling contracts (120), unconscionable conduct (267) and incorrect billing (63).
Mabuza said the countrywide inquiry would be similar to the banking inquiry and would take place over six months under the counsel of a three-member panel of property and consumer law experts, chaired by a retired judge.
The panel will form part of a task team that will visit provinces to engage with affected consumers and role-players in the industry to hear out parties, conduct research and investigate specific consumer allegations.
“Preliminary processes pertaining to the inquiry, including appointment of a retired judge, have started. In terms of the formal inquiry process, it’s intended that it will start at the beginning of February,” Mabuza pointed out.
“Pretoria, being the seat of the NCC head office, will be used as
the main base for the inquiry,
given austerity measures that are currently in place in government in general.
“However, there will be roadshows or hearings held in provinces from where the bulk of consumers in the industry hail. This includes KwaZulu-Natal,” she said.
Mabuza advised consumers to resist pressure-selling marketing methods and not to hand out personal details or credit card information until they had resolved to enter into a transaction.
“Consumers should also insist on being provided adequate time to read the pre-agreement contract or quotation, as well as the actual contract or agreement,” Mabuza said.
“They should not be induced to forgo their legal rights to properly apply their minds as a result of
promises or so-called ‘one-day
discounts’.
“These are all used to dupe or hoodwink consumers to transact in a hurry, and always to their detriment.”
Mabuza said the dates and venues of the inquiry would be published in national and provincial media.
She said the NCC had partnered with regulatory bodies including provincial consumer protectors, the South African Revenue Service, Estate Agency Affairs Board, National Credit Regulator, Competition Commission, Department of Human Settlements, Companies and Intellectual Property Rights Commission and the Community Schemes Ombudsman.
“There is an overlap in the mandate of the NCC and those of other regulators when it comes to certain aspects of the industry, hence the rapport,” she added.
Vacation Ownership Association of Southern Africa (Voasa) spokesman Alex Bosch earlier said the association had committed its full support to the inquiry process.
“Voasa has always been proactive in engaging with the NCC by extending invitations to meet and resolve issues pertaining to consumer and industry-related matters.
“We welcome this inquiry and view it as a positive step in the right direction towards remedying any challenges faced by consumers and the shared vacation ownership industry,” Bosch said.
“We are eagerly awaiting further announcements on the commencement date for the inquiry, and the selection of the panel of property and consumer law experts that will be chaired by a retired judge.
“Once established, Voasa will make itself available to engage with the task team and assist this inquiry wherever needed,” Bosch added.
He said a fair number of consumer complaints emanated from travel clubs not registered with Voasa and which did not comply with its code of conduct.
He noted that the country’s R3.5 billion industry comprised more than 200 resorts and 500000 shared owners.
Bosch said Voasa was awaiting comment from the NCC on a new
industry code of conduct to provide consumers with an additional independent industry resolution body to handle queries and disputes.