A couple from Yorkshire were spared from shelling out £5000 in a holiday club scam after they contacted the government funded Consumer Direct helpline for advice. They also set in motion a chain of events, which led to the company being wound up by the DTI.

Consumer Direct took the call from a woman and her husband who had been to a presentation by PR Holidays Ltd, a Liverpool based company offering membership of an internet based holiday club called Network Vacations. It offered lifetime access to a wide range of highly discounted holiday accommodation all over the world through an internet site.

The idea appealed to the couple who were looking to end a timeshare deal which tied them to the same place every year. They had also been convinced by the company's 'soft-sell' approach and at the end of the presentation agreed to sign a membership contract which gave them the option to trade-in their timeshare as part payment.

After returning home they became suspicious when they noticed that some of the accommodation the company offered was, in fact, available at cheaper rates through other deals. They contacted Consumer Direct, the DTI backed consumer helpline, for advice.

Consumer Direct advised the couple that Network Vacations, the website being promoted by PR Holidays, was in fact already in liquidation after a separate DTI action, saving them from a costly mistake. Consumer Direct also referred the matter to local Trading Standards for action. Unfortunately others were not so lucky and at least 10 people between them paid a total of at least £40,000 for memberships.

Gerry Sutcliffe, Consumer Affairs Minister said:

"Consumer Direct gives thousands of people high quality consumer advice every day.

"It's great news that a phone call to the Government funded service helped this couple steer clear of a scam and led to the perpetrators being brought to justice.

"Consumer Direct is playing a crucial role in helping consumers and in ensuring that its Trading Standards partners are able to focus on clamping down on rogue traders."

The company was closed down at the High Court in Manchester and in his summing up Judge McGrath agreed there were "serious irregularities" and an "unsavoury feel" to the company's dealings.

If you're worried about a holiday scam or any other consumer matter, you can ring the information and advice helpline on 08454 04 05 06 from 0800-1830 Monday to Friday, and 0900-1300 Saturday, excluding bank holidays and public holidays.