With all the dark grey clouds and miserable summertime of rain-filled days, even the constant talk of credit crunch and tightening your belt doesn't seem to stop us Brits from booking our annual holiday somewhere in the sun.

So with budgets being tightened, the touts are out to induce you into booking that lovely summer break for 2009, many with tempting offers or even 'free holidays'.

Picture this, you're at home one day watching the rain cascading from the sky, when the phone rings and the person on the other end tells you you've just won a seven day holiday.  But there are strings attached!  You'll need to visit a holiday exhibition centre and spend a few hours being 'sold' an even better, long-term package.  It sounds too good to be true, doesn't it?

The most common scam these days is the 'discount holiday club'. Hundreds of thousands of holiday-makers fall victim to bogus clubs every year, parting with between £3,000 and £12,000 a time to get access to five-star trips at bargain prices, along with discounted air fares either for life or over five to 10 years. Such discounts usually prove worthless, or no better than many available on the internet.

The OFT has stepped up efforts to warn people of these clubs through a 'Scams Awareness' campaign earlier in the year by distributing leaflets at airports with further campaigning to follow.

Middle-aged and elderly couples looking for a bit of luxury and a good deal are the main targets, says Andrew Garrettof the OFT. They tend to be approached over the phone or often while on holiday. Spain is a hot spot for the sales representatives, who give their victims scratch cards saying they've won a free holiday. However, to claim their prize, they have to sit through lengthy presentations at smart locations, where the benefits of these 'exclusive' holiday clubs are explained. People approached over the phone are asked to attend a presentation in a British hotel.

The European Union has proposed changes to the European Timeshare Directive that would require holiday clubs to abide by the same rules as timeshare companies that are part of the Organisation for Timeshare in Europe (OTE). These would include 'cooling-off' periods during which customers could change their minds. However, it may be three years before these come into effect.

So how can you be sure you are booking a genuine holiday? As a first rule, if a deal seems too good to be true, it probably is, so steer clear.

'If it's too late, there may be some recourse if you've booked the holiday using a credit card rather than a debit card or cheque,' says David Cresswell of the Financial Ombudsman Service. This gives you more rights than paying with a debit card, cash or cheque. Under Section 75 of the Consumer Credit Act, if you pay for goods worth more than £100 even partially on a credit card, the card provider is equally liable with the company should problems arise.

However, be suspicious if there is an unusually high credit-card loading fee that encourages you to pay cash, says Amanda Diamond of Which?. 'If you are told the company does not accept credit cards, book with one that does.'

Make sure the travel company has financial protection behind it - most genuine holiday companies will be registered with a compensation or arbitration scheme such as the Association of British Travel Agents (Abta) or the Association of Independent Tour Operators (Aito), which will offer you some protection if you lose your money through fraud or if the company goes bust. Look for their logos on the website. 'If there are none, this should ring warning bells, as companies are keen to make it very clear they are a member of one of these schemes,' says Sean Tipton of Abta. But don't just take the company's word for it - confirm it with the relevant trade body.

If you book with travel agents, remember that they are arranging a holiday on your behalf. 'If you are told the holiday is booked, they should tell you who it is with and you should receive a confirmation invoice from the supplier,' says Tipton. 'If you have not received this within five working days, it is a possible indication they are not reputable.'

Ultimately if you suspect something may be wrong, go with your instincts, if it sounds too good to be true, it probably is.

Even for the genuine 'discount clubs', being registered with ABTA doesn't necessarily mean you can trust them.  The initial costs can be very prohibitive, yet you've sat through hours of polished presentations about the most luxurious resorts in the world, so when they finally hit you with a signing on fee of £12,000 somehow you can't just say 'No' straight away.  You may then be exposed to the 'options' which is essentially designed to get you to use the finance package with an APR of about 20%.  Next come all the extras, monthly management fees for maintenance and so on, for apartments you may find you'll have to pay for the utilities you use during your stay.

So overall, how much cheaper is it to take on a 'discount club' package than use your local high street travel agent or simply book online?   Certainly not a scam, but by no means cheap, so although it may well offer you the discount, it still may not be something you can comfortably afford. 

Our research lead us to investigate 2 different companies offering much the same deal.  Both were offering 'free' holidays to entice attendance at a hard sell exhibition, both later revealed a series of extra costs and both seemed very reluctant to let us go.

For further information on what is genuine, or to know more about the people who offer you free holidays, contact... 

· Contact Abta on 020 7637 2444 or at abta.co.uk; Aito at 020 8744 9280 or aito.co.uk; the UK European Consumer Centre on 08456 040503 or ukecc.net; Consumer Direct on 08454 040506 or consumerdirect.gov.uk.