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Ashwin D

1 reviews | Active since Jul 2009

11 Jul 2019, 11:33

Cancellation of Membership issues

I called the Holiday Club a few weeks back and requested a process to cancel my lifetime contract with them. I was advised that they needed 30 days’ notice period and an official cancellation notice. I then went ahead and cancelled almost 2 months’ notice before my next anniversary. They have now responded that even though I am cancelling I still need to pay then R4400.00( R220.00x 20 points) This was never mentioned when I asked for the cancellation process.

Legislation says no company can bid you to a lifetime contract .THC as now reverted that even though my contract does not mention cancellation Fees payable I am still liable for this. I warn all those out there cancel your membership now to avoid being charged later when you cannot afford this

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Replies (5)
The Holiday Club
The Holiday Club's reply11 Jul 2019, 12:27
Official
Dear Ashwin,

Thank you for your post.

You have entered into a legal Agreement whereby you are liable for fees annually.  As you are requesting to cancel your membership, you are in breach of the Agreement which you signed.  The Holiday Club will not prevent you from cancelling your membership, however, you will be liable for the payment of a cancellation fee.

We will arrange for a consultant to contact you to discuss the matter further.

Kind Regards,

The Holiday Club


The Holiday Club
The Holiday Club's reply11 Jul 2019, 14:44
Official
Dear Ashwin,

Thank you for taking the time to speak to our Consultant.  We have emailed you as discussed and will await further feedback from you.

Kind Regards,

The Holiday Club
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Ashwin D's update15 Jul 2019, 15:02
Reviewer Update
Good day Louise/Nicole
In response to your e-mail below I wish to re-iterate that I am relinquishing my Holiday Club points and cancelling my membership with the Holiday Club with immediate effect. Refer attached instruction issued to you on 8th July 2019
Please also take note of the following:
The contract that I entered into with the Holiday Club is a “in-perpertuity” or a “lifetime” Contract. However, Section 14 of the Consumer Protection Act that you made reference to refers to Fixed Term Contracts (see below text highlighted in green) whereby cancellation fees are applicable if there is a of breach of contract of a Fixed Term Contract. The cancellation fee that you are suggesting in this case will not apply as I have not entered into a Fixed Term Contract with the Holiday Club.
Please note further that the cancellation fee dispute cannot have a negating effect in my right to cancel this contract. This is an official instruction to you to cancel this contract with immediate effect.
Also note that no further invoices for Membership renewal or Cancellation fees will be entertained .
Please confirm cancellation of this contract in writing.
Section 14 of the Consumer Protection Act No 68 of 2008, (“CPA”), which relates to the expiry and renewal of fixed term agreements, reads as follows:
“14 (1) This section does not apply to transactions between juristic persons regardless of their annual turnover or asset value.
(2) if a consumer agreement is for a fixed term –
(a) that terms must not exceed the maximum period, if any, prescribed in terms of subsection (4) with respect to that category of consumer agreement;
(b) despite any provision of the consumer agreement to the contrary –
(i) the consumer may cancel that agreement –
(aa) upon the expiry of its fixed term, without penalty or charge, but subject to subsection (3)(a); or
(bb) at any other time, by giving the supplier 20 business days’ notice in writing or other recorded manner and form, subject to subsection (3)(a) and (b); or
(ii) the supplier may cancel the agreement 20 business days after giving written notice to the consumer of a material failure by the consumer to comply with the agreement, unless the consumer has rectified the failure within that time….
(3) upon cancellation of a consumer agreement as contemplated in section (1)(b)-
(a) the consumer remains liable to the supplier for any amounts owed to the supplier in terms of that agreement up to the date of cancellation; and
(b) the supplier –
(i) may impose a reasonable cancellation penalty with respect to any goods supp****, services provided or discounts granted, to the consumer in contemplation of the agreement enduring for its intended fixed term, if any; and
(ii) must credit the consumer with any amount that remains the property of the consumer as of the date of cancellation...”

Section 14 applies to all fixed term agreements concluded in the normal course of business, save when entered into by and between juristic persons (thus, any lease agreements entered into on a month to month basis would not fall within the scope of section 14), accordingly it has had a substantial impact on the rental property market since its commencement on 31 March 2011. In most instances lease agreements are entered into for a fixed term, and in turn it is clear that section 14 would be applicable to many, if not all lease agreements relating to immovable property, especially lease agreements in respect of residential property.
Section 14(2)(d) provides, however, that upon expiry of such fixed term, such agreement will automatically continue on a month to month basis, thus, although previously governed by section 14, after expiry it will no longer be regulated thereby.
Regards
The Holiday Club
The Holiday Club's reply19 Jul 2019, 12:37
Official
Dear Ashwin,

We confirm that we have provided you with feedback on your cancellation request.

Should you have any further queries kindly contact our Member Services department.

Kind Regards,

The Holiday Club
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Ashwin D's update19 Jul 2019, 12:48
Reviewer Update
Good day As requested why did you not post your reply to me on this site ,for other customers to see .
THC response on email

We wish to re-affirm that you have purchased Life Points which are available to you in perpetuity. The Holiday Club is, however, prepared to allow you to cancel your membership subject to the payment of a cancellation fee.

In the absence of the payment of the cancellation fee you remain a valid member of The Holiday Club and remain liable for payment of all accounts and entitled to all benefits attached to the agreement which you signed.

Kindly contact our Collections department on telephone number ***or via email *** to make arrangements to settle the cancellation fee of R4,400.00 over either 6 or 12 months. Alternatively, should you be able to settle the amount as a once off lump sum payment, kindly forward us the proof of payment to enable us to assist you further.


Should you have any further queries you may contact our Member Services department.

Kind Regards,
Member Services
The Holiday Club