By Tessa Wong

THE timeshare pigeons have come home to roost, five or so years since complaints about the industry's hard-sell tactics soared.

Now, a new batch of grouses is hatching, this time by consumers who are still waiting for promised payouts or finding it difficult to claw back their investments - not only in timeshares but also in other purchases, from gold to beauty packages.

Complaints lodged with the Consumers Association of Singapore (Case) against cashback schemes have shot up dramatically in the last six years, from two cases in 2003 to 62 last year. So far this year, there are already five complaints.

Most of them have to do with timeshare companies, which have topped Case's list of consumer complaints for the last decade.

Case executive director Seah Seng Choon said the present increase in complaints probably stems from many timeshare agreements, signed five to 10 years ago, maturing now.

Complaints then were about some of the industry's underhand sales tactics.

But the money-back promises used by timeshare companies have also been creeping into other products.

In the last two years, consumers have also been getting burnt by 'cashback' promises in beauty packages, gold purchases and wine investment.

Here's how it works: A consumer purchases a package or makes an investment, and is promised a lump-sum cash payout after a certain period or a refund of the initial investment. In some cases, he is promised a fixed amount of cash regularly, such as every month or year.

In a typical complaint, that payout just never materialises.

Take Mr Benedict Faustin. He signed up for a cashback programme with a holiday club, which he said promised a full refund of his investment but has left him hanging for several months.

The 57-year-old's troubles started in 2003 when he transferred his $10,000 investment in one timeshare company to another, Leisure Group Marketing. The latter was among several which made the news earlier this decade for complaints about high-pressure sales tactics.

He made two top-ups when asked, the second one in 2007 when he agreed to join their 'Cash Rewards Program'.

Mr Faustin, an officer with a security company, said he was told that he would get his full investment, worth over $21,000, by November last year. He claimed he has contacted the company about five times but he still has not seen his money.

Leisure Group Marketing did not respond to The Straits Times' repeated queries.

Other complaints are smaller payouts than promised, according to Case. One consumer who purchased a facial package was promised $500 every year, but has been receiving dwindling amounts each time.

Another person, who deposited funds with a finance company five years ago in undisclosed investments, was recently told that the final payout would be much lower than promised.

Case could not give details because of confidentiality reasons.

Mr Seah warned consumers to look closely at what they are buying. He said: 'Consumers have to ensure that the payout terms are properly written into the contract and that these companies' commitment are clear.'

Case assures consumers they have a 'high chance' of getting their money back through a court order from the Small Claims Tribunal - provided the company has not wound up by then.

In the meantime, some, like retiree Mr Tong Yan Ming, 70, are simply waiting.

In October, Mr Tong agreed to deposit $5,000 with Bao Jing Trading Company in exchange for 100g of gold and a monthly payout of $150, renewable every three months.

Last month, when he tried to end his agreement, he was told to return the gold before the company could return his deposit and give him that month's payout.

Mr Tong asked for a letter guaranteeing this, but has yet to receive one. Multiple attempts by The Straits Times to contact Bao Jing's owners were unsuccessful.

'I'm never going to get into something like this again. You just don't know where your money will go,' he said with a sigh.

This article was first published in The Straits Times on February 05, 2009.