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Arlina Arshad
Mon, Feb 11, 2008
The Straits Times
Case helps get back $4m from dodgy deals

CONSUMERS got back close to $4 million in refunds last year from dodgy deals, nearly half of which involved timeshare holidays.

In terms of the number of complaints filed against industries, timeshare companies emerged tops, followed by motorcar sellers, electrical and electronic goods retailers, renovation contractors and a new entrant on the list, beauty salons.

The refunds, secured through settlements negotiated by the Consumers Association of Singapore (Case), have climbed every year, said the watchdog's executive director, Mr Seah Seng Choon.

This is partly because the cost of living has gone up, pushing prices higher. As a result, the recovered amounts have also gone up, he explained.

But he also put the rising figures down to Case's bumper year: It resolved a record 1,442 cases last year, 27 per cent more than the year before.

A majority of customers who went to Case got back more than half the amounts in dispute. One in five received full refunds, said Mr Seah.

Refunds for timeshare deals hit $1.9 million last year, twice the $999,662 of the year before.

Nearly all the cases involved five timeshare companies, two of which are being taken to court by Case.

The consumer watchdog considers a timeshare dispute resolved when the consumer gets a full or partial refund, or successfully gets out of the contract.

Timeshare related transactions were tops on the list of money refunded because the lifetime memberships at holiday resorts worldwide can cost tens of thousands of dollars each.

The fact that these purchases came with options to re-sell, lease or terminate the deals with money-back guarantees also made them hotbeds for disputes.

Complaints against the timeshare companies typically involved their hard-sell tactics and the misleading claims they made to entice consumers to sign on the dotted line.

The other two industries among the top three in terms of money recovered were the motorcar and education sectors.

Consumers got back $496,361 and $247,427, respectively, on the back of grouses that revolved around misrepresentation and unsatisfactory service.

Consumers' claims were over cash-back promises, and products and services, Mr Seah said.

On beauty salons entering the list at fifth among industries that pulled in the most complaints, Mr Seah said that consumers took issue with the salons' misleading advertisements for procedures such as bust enhancement and slimming.

Complaints were also filed over their high-pressure sales tactics after consumers showed up for free trial sessions.

Case is pushing for salons to provide a 'cooling off' period - just like for timeshare purchases - of three days, during which consumers are free to cancel the deal they signed to buy beauty products or services.

Fewer complaints were filed against the travel industry, which slipped from fourth position in 2006 to ninth last year.

Mr Seah attributed the drop to the accreditation scheme run by Case and the National Association of Travel Agents Singapore, which requires the 24 agents which have signed up to be fair, ethical and provide good sales and after-sales service.


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