A Kraaifontein woman has learnt timeshare contracts signed in haste can be regretted years down the line.
The gripe Ronelda Rhode has with Gauteng timeshare firm Quality Vacation Club (QVC) is a prime example of why consumers should read the fine print carefully when signing contracts, so as to avoid hassles years later. She said debt collecting firms were now threatening to blacklist her if she failed to pay an outstanding amount even though she was misled and rushed at the time of signing the contract. She has already paid more than R50 000 in the past five years.
But QVC has dismissed most of Rhode’s claims as incorrect and supplied a copy of the contract bearing Rhode’s signature and initials.
QVC’s correspondence department head Daniela de Oliveira said: “With due respect, we believe that the information the member has provided you with, is in direct conflict with the factual situation as reflected in the attached documentation. In this regard we believe the details of the actual and factual situation should be reflected in any article....”
An earlier report published by Argus Action about QVC prompted Rhode to share her experiences to warn other consumers about the trouble they could get into.
In March Argus Action published Kaashief Lackay’s tale about his three-year battle to get out of a contract with QVC, during which time the firm debited about R35 000 from his account.
QVC countered that Lackay had chosen to only supply this newspaper with selective information and said it had offered him extended terms for the agreement, but that he had declined.
Last week Rhode told Argus Action she was in a similar predicament and since signing a contract with QVC five years ago, has been battling to sort out the issue. However, the firm has threatened her with legal action over an outstanding amount.
“QVC phoned me in 2006 to say I had won a holiday. But to claim the ‘prize’, I had to bring someone else along to a presentation in Bellville.
“It all seemed very pretty and worth every cent at the time. We were taken through the presentation on holiday resorts in South Africa and some ACI destinations, and told this was an investment, and that we were not obligated to pay for anything at that point.
“I was asked for credit card details to ‘secure’ the special offer. The consultant then rushed through the contract and told me to sign. The consultant also told me and my friend that went with me that I could take the contract home, then let the firm know when we were ready – but not before we had signed some documents,” Rhode said.
She added that the consultant had not asked her at any stage whether she could afford the holiday plan.
“At the time I didn’t have a permanent job – I was studying through Intec College, doing part-time jobs every second week earning R400 a week… So the next month I found QVC had withdrawn almost all the money owed.”
She added she had been battling with the firm for years to cancel the contract but then got a letter from a debt-collecting firm threatening to blacklist her if she failed to pay arrears of R5 966.39. Last month she got an SMS telling her to make a full payment within 28 days or she would be blacklisted.
“Despite making numerous calls to the firm, and sending off several e-mails, I was told simply that the five-day period to cancel had expired,” Rhode said.
But De Oliveira said on Friday: “At the outset we must point out that we have had negotiations with the member regarding the affordability of the agreement. Over and above that this matter has been referred to the industry’s self-governing trade association mandated to deal with timeshare matters by the Department of Trade and Industry.”
She added that Rhode signed various documents confirming both her understanding and acceptance of the terms of the agreement and also completed a form in terms of the National Credit Act confirming affordability.
“We therefore take exception to the allegations that the member was not aware of the terms. More especially, her selective interpretation of the five-day revision period contained in the document signed by herself and initialled 21 clauses confirming the contents and stipulations. Relating to her purchase a copy of the said document under the heading ‘Certificate of Purchase’.
“Over and above this document the client also signed a ‘Certificate and Summary’ relating to the purchase agreement which document again contained 15 clauses which the member duly initialled. Again a copy of this document is appended hereto.
“It appears that subsequent to the purchase the member’s income has increased by 62 percent which information is extracted from the recent documentation that the member forwarded to ourselves in substantiation of her financial position.”
De Oliveira added that as far as Rhode’s request for cancellation was concerned, subject to the provisions of the National Credit Act and to assist her, the firm has referred the matter to a vendor company to review her latest request.
“There is still a considerable amount outstanding on the capital as well as an amount on her annual membership fees.”
De Oliveira also said the parties cited by Rhode were incorrect as proven by the sales documentation.
Credit ombudsman Manie van Schalkwyk has previously warned consumers on the perils of believing the promises of timeshare salespeople and of signing a contract without knowing what it means.
“Most consumers who come to us for help with timeshare or vacation club issues are victims of their own inability to read the contracts they happily signed when offered ‘free’ holidays or other benefits,” Van Schalkwyk said.
He cautioned against signing blank or partly completed documents,
and “always cancel in writing and get acknowledgement or a cancellation letter”.
- Cape Argus