Consumer Alert - Vacationers Beware of Unlicenced Vacation Clubs

August 26, 2004

Edmonton...An Alberta government investigation has resulted in 125 charges being laid against four companies and a director under the Fair Trading Act for alleged misconduct involving timeshare and travel services. The charged parties are:

  • Royal Club International A World Of Timeless Vacations;
  • Resort Condominiums International LLC;
  • RCI Canada Inc.;
  • Royal Club Resorts Inc. and
  • Andre Muran, director of Royal Club Resorts Inc.

The parties face charges ranging from operating without a travel club licence, misleading consumers and refusing to provide refunds when consumers attempted to cancel their contracts.

An investigation was launched after several consumers complained that they failed to get their refunds, in accordance with the Fair Trading Act, when exercising their cancellation rights after purchasing timeshare/travel services from Royal Club Resorts Inc. The initial investigation findings resulted in the investigation being expanded to include compliance with the Fair Trading Act requirements by the other accused parties.

Consumers considering purchasing a timeshare, travel club membership or a combination of the two services are advised never to sign a contract unless they have read and understood it; shop around and compare prices offered by other businesses; and check if a travel club is licensed.

The first provincial court appearance for all charged parties is October 13, 2004 in Canmore.

Alberta's Travel Clubs Regulation applies to any organization that sells memberships to consumers for future access to travel services. In addition to providing 10-day cancellation rights, the regulation requires any travel club intending to deal with Albertans to be licensed, post a security bond and follow a code of conduct.

The Fair Trading Act requires timeshare and travel club operators to provide refunds within 15 days to consumers who cancel their contracts within the allowable timeframes - seven days for timeshares and 10 days for travel clubs. The Act also allows cancellation rights for one year if the supplier was operating a travel club without being properly licensed.

Albertans who have purchased travel club memberships and have concerns about their contracts may contact Alberta Government Services' Consumer Information Centre toll-free at 1-877-427-4088. A travel club tip sheet is also available online at www.gov.ab.ca/gs.

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Media enquiries may be directed to:

Terry Cunha, Communications
Alberta Government Services
(780) 415-6051