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New tactic for timeshare scams
By Neo Chai Chin / Liang Kaixin | Posted: 15 December 2010 2332 hrs
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SINGAPORE: They had already used their timeshare purchase to get holiday discounts, but when Ms Diana Lim and her husband received a call from D.R.I & Chia Partners & Associates offering to recover their investment, the couple agreed to a meeting.
At its International Plaza office on Saturday, Ms Lim and Mr Andrew Cheang, both 42, were told that their S$9,100 investment - made in 2008 with Concepts Vacation Club via Garraway Enterprises - was now worth about S$28,000.
A woman who identified herself as Katrina Moss, legal counsel, claimed D.R.I was a legal firm, said Mr Cheang, an engineer.
While companies offering to buy timeshare memberships have come under flak in recent months for their practices, the couple's experience could be an example of how these approaches are varying.
With timeshare databases continuously mis-sold in the black market, there are "bogus law firms" that make cold calls to investors offering litigation to recover purchases, Mr Alberto Garcia, enforcement project head at European timeshare trade body Resort Development Organisation (RDO), told Channel NewsAsia.
And when the Cheangs - who had placed a S$500 deposit with D.R.I, with another S$7,000 to be paid up - asked a lawyer later to verify if there was any difference between a legal firm and a law firm, as Ms Moss had claimed, they found there was none.
According to Accounting and Corporate Regulatory Authority records, D.R.I was known previously as Gina's Peranakan Restaurant & Pub.
The company's name change took effect on Friday - one day before the couple went to its office - and its director is Ms Kartini Mohamed.
CASE executive director Seah Seng Choon said there have been "only very few cases" of feedback about "parties claiming to be lawyers or from law firms" calling about timeshare contracts. The earliest indication "pertaining to this trend" was in 2006.
So far, no complaint has been lodged with the Consumers Association of Singapore (CASE) against D.R.I.
The timeshare industry, though, has topped CASE's complaints list for the last six years.
From this January to November, CASE has seen 1,844 timeshare cases.
And RDO said some of them claim falsely to be registered with it.
The trade body has received complaints on 17 timeshare-related companies in Singapore - including United Wealth Management, which D.R.I. listed on its receipt to the Cheangs, and Garraway, the company from which the couple purchased their timeshare.
When Channel NewsAsia contacted Ms Moss, she said D.R.I was an advisory firm. "(The couple) should have thought it through first ... not make a decision and decide to complain later." she said.
Asked if she was a lawyer with "Khattar and Wong", as she had told the Cheangs, she said she had only "liaised" with it.
Law firm KhattarWong confirmed it did not have any lawyer named Katrina Moss.
Wary of the negative experiences others have had with timeshare-related companies, the Cheangs terminated their contract with D.R.I. and received their S$500 refund on Monday.
Companies here complained against
List of companies in Singapore that European trade body for timeshare, the Resort Development Organisation, has received complaints against.
- Services Pte Ltd.
- Vision Solutions
- I-Generic Pte Ltd.
- Worldex Asia.
- Worldex Pte Ltd.
- Asian Travel Group
- Holiday Plus
- Hayward Ventures Ltd
- Garraway Enterprises
- Colonial Strategies
- River Marketing Ltd
- Beaufort Park
- St George Group
- Global Securities
- Colonial Securities
- Mgi Luxury Pte
- United Wealth Management
RDO promotes the industry to stakeholders and works with governments to ensure that any legislation adopted is fair to consumers and the industry. It is represented in Asia by The Absolute World Group of Companies. For consumers alerts, visit www.gotimeshare.org
-CNA/ac/ls
