Travel insurance: OFT warns of bogus holiday clubs

Wednesday, 12 November 2008

Brits who have taken the trouble to search for cheap travel insurance in order to reduce the costs of a foreign trip could end up losing any savings made at the hands of bogus Spanish holiday clubs, the Office of Fair Trading (OFT) has warned.

According to the OFT Scambusters Team, every year large numbers of people from the UK are tricked out of thousands of pounds at resorts such as Tenerife, Gran Canaria, Malaga and Marbella.

The group explained holidaymakers are normally targeted by touts who hand out fake winning cards.

In order to collect their prize, people are required to attend a lengthy sales presentation and persuaded to sign a contract for an exclusive club.

However, holidaymakers find this simply gives them access to an internet booking site offering the kind of service they could get for free at a travel agents.

Mike Haley from the OFT said: "Bogus holiday clubs ruin thousands of holidays every year leaving holidaymakers with large bills for near worthless holiday club memberships."

In other news, Lonely Planet recently advised that people who like to search for cheap travel insurance and get the best-value holidays around may find Iceland is becoming a more affordable destination.

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