Article written by Chris Emmins, CEO of KwikChex
Yesterday, I spoke with two people who are struggling to understand how a Vacation Investment product, sold by Seasons Holidays PLC as something everyone would want to invest in, has left them feeling betrayed and broken.
In the first call, Colin (name changed), broke down in tears as he told me how he was expecting a significant payout on the money he had paid Seasons – but is now being told that the scheme is likely to cost him more money rather than help him and his wife in the difficult circumstances of their retirement. I asked how they were feeling about the situation, and he replied that his wife had been having ‘dark thoughts’ – it was at this point he dissolved into tears.
An hour later, I was on the phone to Julia (name changed). She described how, after informing Seasons that her husband had only a few months to live, they were pressured into attending a meeting with one of their salespeople, who, even after the sad situation was emphasised, tried to persuade them that the best way to avoid having to pay previously undisclosed, claimed fees, was to take out a loan for thousands more to buy a new long-term holiday product.
If these calls had been isolated incidents, I would still have been shocked – but I have had dozens of similar conversations with people suffering the consequences of investing in the Seasons Holidays ‘Keys’ scheme. They include a lady suffering from stage 4 cancer, who, in addition to not getting what was promised, was additionally banned from even taking the holidays that were at the heart of the supposed ‘dream scheme’. And the reason for her ban? She had dared to make comments on social media about what was happening. Then, when she persisted in telling her story and trying to help others in the same situation, Seasons had their lawyers threaten to sue her for defamation.
Others have described how their retirement is in ruins after Seasons representatives persuaded them that the Keys scheme was so good that they cashed in their pensions to invest in the returns it would provide and the ‘luxury’ holidays that were included for years to come. The amounts invested are huge – up to nearly £300,000 in one case reported to KwikChex.
You might wonder how anyone could be persuaded to make such investments. Well, the truth is that these are people who were already owners of timeshares with Seasons, who, by and large, were enjoying the breaks they had at the Seasons resorts. But then, they were told by Seasons there was something so much better than timeshare – a new product that meant no annual fees, fabulous luxury accommodation for 16 years, and the choice at the end of the 16 years to ‘cash in’ what was described as co-ownership in freehold property that was bound to appreciate in value – or give back their share in exchange for another 16 years of luxury holidays. In fact, Seasons said, it was such an excellent investment that it was worth buying additional weeks in the scheme just to rent them out through Seasons for income while they waited for the 16 years to roll by.
New coercive tactics
Now, in many cases, years before the end of the original contract, Seasons is insisting that its investors attend face-to-face meetings, where they are told that they will be lucky to get anything back – and could end up owing thousands to Seasons instead. The only way out of this, Seasons says, is to swap the original Keys product for a new ‘guaranteed luxury’ holiday product. That’s ironic because, during the time their Keys contracts have been running, Seasons have been stopping their investors from using much of the Seasons portfolio on the basis that they have been recategorised as ‘Core Members’ (something none of the investors had ever previously heard of) and they could no longer use the ‘luxury grade’ resorts and accommodation.
And what of the promised 16-year, no-cost extension? Seasons is now saying that it’s not viable, as the choice and availability within the scheme is so limited as to make it worthless. That’s come as a sad and hard blow for many who invested not for the supposed financial return but for the prospect of free, luxury holidays for themselves and their families for 32 years. Some who invested for this promised benefit have told KwikChex that they knew they would be unlikely to still be taking holidays 30+ years later themselves – but had told their children that they were using their savings and other investments to gift years of free holidays to them. They are now distraught at not being able to do this – and the impact it has on the value of their estate.
Seasons Holidays Investors fight back
However, despite their anxiety about what is happening, the investors are not taking this lying down. First came a Facebook group, which is now rapidly approaching 500 members and has led to actions being taken, including the preparation of court claims against Seasons, claims for compensation over loans made to purchase Seasons products, and complaints to the authorities.
KwikChex is helping coordinate these actions and is providing information on the situation and all of the options that are available to the many affected – according to Seasons; they sold thousands of these products. KwikChex is also calling for a formal investigation by the authorities, including an examination of the adequacy of the property trust system that investors believed would help protect them.
Vacation Investment schemes require urgent actions
This is not the only case of Long-Term Vacation Investment products causing distress to those who have bought into these ‘dreams’ – KwikChex is also working on the mis-selling and collapse of a scheme called Global Great Hotels, and the practices of Holiday Park Resorts in the selling and management of static caravans – often referred to as ‘holiday lodges’. All the evidence indicates that hundreds of millions of financial detriment and extreme stress have been caused by misrepresentations, unethical sales practices, and in several cases, outright fraud.
Further information is available on these links
Global Great Hotels & Restotel Help website
Holiday Park owners nightmare article
