THE Government has pledged to clamp down on rogue holiday companies after a North-East MP claimed that a scam had conned people out of thousands of pounds.

North Durham MP Kevan Jones addressed the House of Commons yesterday to highlight the growing number of holiday clubs pressurising people into handing over large sums of money for holidays that never materialise.

He told how several people from the region had handed over money to a former Wearside firm, On-Line Vacations.

People paid between £1,950 and £4,800 for membership to the holiday club and were told they would receive a PIN number to the agency's website to access discounted holidays.

But to date, none of them has received a holiday or their money back.

One 65-year-old Washington man, who does not wish to be named, said he handed over £3,500 of his retirement money to On-Line Vacations after they rang him up inviting him to attend a presentation in Washington on January 26, where he was sold membership to the club.

But after asking for a refund he is still waiting for his money.

Speaking to The Northern Echo he said: "I'm considering it a dead loss.

"I've lost £3,500. If I get it back, it will be a miracle."

Another couple, from Chester-le-Street, County Durham, took out a £4,000 loan two years ago to pay for membership to the holiday club, which was then trading as GM Leisure, but are still waiting for something in return.

Responding to yesterday's debate, Trade Minister Alan Johnson said existing laws regulating timeshare holidays should in future cover so-called holiday clubs.

He said: "The Government will be working closely with the European Commission on its forthcoming review of the Timeshare Directive to ensure that any future definition of timeshare encompasses new products, such as holiday clubs."