Case takes legal action against timeshare firm

Case takes legal action against timeshare firm

By Jessica Lim THE Consumers Association of Singapore (Case) has taken legal action via an injunction against a timeshare company for unfair trading practices. Yesterday, the consumer watchdog said at least 19 complaints had been lodged against Garraway Enterprises' Singapore branch, and attempts to get the firm to make redress had failed. Related link: » Sunshine Empire chief on 20 charges Said the association's executive director, Mr Seah Seng Choon: 'We had no choice but to take action to make sure that they observe fair practice.' The injunction demands that the company stop making misleading claims and exerting undue pressure on consumers. Total claims against Garraway come to $230,000, with amounts ranging from $3,650 to $30,000. The complaints follow a similar pattern. Complainants say Garraway approached them with winning scratch cards, then asked them to collect the prizes at the company's premises. Once there, they were coerced into buying memberships which promised them benefits like an easy access booking system, and discounted airfares to various places. None of these came to be. Case said it had tried to get the firm to sign a Voluntary Compliance Agreement, in which a company admits it has carried out unfair trading practices and will compensate consumers and clean up its act. But Garraway officials refused. The company could not be reached for comment despite repeated calls. If it does not comply with Case's injunction, it may find itself in the district court. The action against Garraway comes on the back of 2,000 complaints lodged against timeshare companies annually for the past five years, the most for any industry. In 2006 and 2007, Case proceeded with injunctions against timeshare companies Orion's Belt Network and Global Europ (Asia), after numerous complaints were filed against them. Midway through their respective court hearings, both companies conceded to unfair practices and stopped them. This article was first published in The Straits Times on February 06, 2009.