A 55-year-old man from Banbury has been arrested following an investigation into a timeshare scam originating in Spain.

Thames Valley Police launched an inquiry in July after a complaint from a member of the public was passed on by Bedfordshire Police.

The complainant said he had been targeted by a scam, in which people wanting to sell their timeshares are contacted by a marketing company and told a buyer has been lined up.

To proceed with the sale, owners are asked to send a £1,000 administration fee to the company, Golden Sands Marketing, which gave its correspondence address as Horse Fair, Banbury.

After making enquiries, officers visited the address and closed down a mailbox, where letters were being held before being sent onto Spain.

More than 100 letters have been intercepted so far and officers are writing to the senders to inform them about the ongoing inquiry.

Thames Valley Police said its officers have been liaising closely with Oxfordshire County Council’s tading sandards department, as well as the Spanish authorities, throughout the investigation.

A 55-year-old man was arrested on Tuesday on suspicion of conspiracy to defraud. The man has been released on bail until January 2011 to allow further enquiries to take place.

PC Suzanne Cubitt, of Banbury police station, said: “We believe people across the country have fallen victim to this scam and are keen to get the message out that timeshare owners are being targeted in this way.

“We are urging people to be vigilant and think carefully before making payments over the phone as a result of unsolicited calls.”

Ian Marriott, of Oxfordshire County Council’s trading standards, said: "We are advising people to be extremely cautious if they receive cold calls about selling their timeshare. The great majority of these calls are scams. Genuine companies will not ask for fees up front. Do not give out bank details or agree to pay advance fees.

“If you require advice please call trading standards on 0845 051 0845. Information about selling timeshare is available from the Timeshare Consumers Association www.timeshare.org.uk and your legal rights abroad from the UK European Consumer Centre for Services www.ukecc-services.net/”