UK solicitors are seeing a seasonal increase in people being swindled out of their hard-earned cash while on holiday.

Some holiday clubs are reputable but others are targeting tourists with offers of ‘free’ holidays and using high-pressure sales techniques to persuade them to sign dodgy contracts.

Solicitors Latimer Hinks has seen an increase in upset tourists coming to them for advice after losing their hard-earned money by joining holiday clubs.

Warning people not to sign contracts to join the ‘clubs’ while on holiday, Neil Wilkinson from Latimer Hinks said:

"We have seen an increase in people coming in asking what to do because they have joined these clubs in places such as Lanzarote or Tenerife, signing away up to £3,000 to the companies running the clubs, which have just disappeared along with the money.”

"Other cases we've seen have involved people going on these holidays arranged through the club, and they've not got their money's worth. They have to go to resorts where they wouldn't normally go at all and it works out more expensive for them than if they had organised their own holiday."

Neil also warned that these companies normally target older people or retired couples, charm them after ‘hospitality’ before targeting them with the hard sell. Contracts offer no ‘cooling off’ period, which timeshare agreements, under new legislation, have to offer.

The contracts also detail ‘service charges’ which the holidaymaker would have to pay.

Neil said: "Once these companies have your money it is very difficult to get it back, and sometimes it is not possible to find these companies at all. The people we have been talking to have been very upset and feel they have been conned out of their money.”

"We would warn people not to get involved in any of these so-called ‘holiday clubs’. It would be cheaper and more reliable to organise your own trips abroad.”

“The contract for membership of the holiday club will generally include a clause indicating that there may or will be a service charge for accommodation. The service charge is frequently large and may mean that the holiday club member is effectively paying for part of their holiday twice.”

The Office of Fair Trading have warned against such holiday clubs and have published a pamphlet setting out the problems with Holiday Clubs called 'Congratulations! You have not won a free holiday.’ It can be viewed (in pdf) at www.oft.gov.uk/Consumer

The OFT’s three point advice is:

• Can you take the contract away with you and come back in a few days’ time with your decision?
• Do you have cancellation rights and are they written down?
• Is everything in writing in the contract that was promised you at the presentation?

And good advice for anything – Don’t sign anything, no matter how much you’re pressurised, unless you are sure it’s exactly what you want.