Consumer and
Competition Policy Directorate
FACTSHEET and Frequently Asked Questions (FAQs)
Subject
Timeshare, Timeshare Sales, Holiday Clubs
Relevant or Related Legislation
Timeshare Act 1992, Timeshare Directive (94/47/EC), Timeshare Regulations (SI 1997/1081)
Current Position
The EU Commission is committed to reviewing the Timeshare Directive to tackle areas not currently falling within the scope of the timeshare legislation. Issues such as post-contractual are an area likely to be considered by the review.
However, the Commission’s priority now appears to be the development of the proposed Framework Directive on Unfair Commercial Practices, which is likely to be issued this year. It is intended that this Directive will provide a broad ‘safety net’ of consumer protection.
An amendment to the Timeshare Act came into force on 31 October 2003. The amendment means that consumers receive clear and accurate information on their right to cancel timeshares when they sign a contract. The legislation has been amended so that cancellation information is included in the contract instead of on a separate form.
Key Facts
• By definition Timeshare means buying the right to spend a set period in a holiday property each year for at least three years or more.
• If timeshare is bought anywhere in the European Economic Area (EEA), consumers have minimum rights to protect them against unscrupulous sellers. These are:
• A minimum 10 day cooling off period in the EEA countries in which to cancel the contract; In the UK this cooling off period is 14 days.
• Timeshare sellers cannot seek or take deposits during the cooling off period.
• The right to a brochure and a written contract setting out basic information on the timeshare property in the buyers own language.
• Products that may not be covered by the Timeshare law. There are a number of timeshare related products which are not subject to the Timeshare law and consequently do NOT offer the same protection and rights: These are:
• Holiday or vacation club schemes - where membership of the club is not linked to any rights in any particular property.
• Timeshare resale. Remember that the second-hand value of most timeshares is far less then the price when new.
• Timeshare in floating vessels (e.g. narrow boats, pleasure boats and houseboats).
• Timeshare lasting less than three years.
Frequently Asked Questions (FAQs)
Q2. Who do you complain to if you feel you have been pressure sold to whilst on holiday?
Q3. Is there a trading association that looks after the timeshare industry?
Q4. Are Holiday Clubs the same as Timeshare?
Q5. I’ve just won a free holiday, is it really free?
Q1.
If someone is pressure sold a timeshare whilst on
holiday, what are their rights if they wish to respond on
returning home?
If they buy within the UK, they have 14 days in which to cancel the contract. If they buy anywhere in the rest of the EEA then they have a minimum of 10 days. They should remember not to take any money, credit card or a chequebook with them if they go to a timeshare presentation because the sellers cannot take any up-front money during the cooling off period. If they are not sure or happy about buying the timeshare then they should walk away. They also need to get everything in writing and make sure they read and understand it all - they should not allow themselves to be rushed into signing anything there and then.
Q2.
Who do you complain to if you feel you have been pressure
sold to whilst on holiday?
If in the UK, you need to contact your local Trading Standards Office (TSO) as they are responsible for enforcing the Timeshare legislation here. If you are overseas at the time then that country's equivalent of UK's TSOs.
Q3.
Is there a trading association that looks after the
timeshare industry?
The Organisation for Timeshare in Europe (OTE) is a leading trade association which represents timeshare, holiday clubs and resale companies located throughout Europe. All of its members follow a strict code of practice and it also provides a free advisory and conciliatory service for anyone who deals with its members. For information, advice and help Tel: 00 322 533 3069.
Q4.
Are Holiday Clubs the same as Timeshare?
During 2003 the Office of Fair Trading launched a campaign warning people about the dangers relating to Holiday clubs. The OFT advise that because Holiday Clubs are not covered by timeshare law there are no automatic cancellation rights for those who change their minds. Bogus holiday club companies exploit this by employing high-pressure sales techniques such as long presentations – lasting as long as six hours – to get customers to sign a binding contract. With promises of a once in a lifetime opportunity, dream holidays for life, special one-day only offers or cashback on the scheme, it can be tempting to sign up. But with no cooling-off period, people should always take the contract away to consider at your leisure before signing. For further information visit the OFT’s website (www.oft.gov.uk).
Q5.
I’ve just won a free holiday, is it really free?
Free holidays won by methods such as scratch cards are rarely free. They are usually Holiday clubs which require membership before you can claim your free holiday. For more information contact the Office of Fair Trading on 0870 60 60 321 to obtain a copy of their leaflet “Congratulations you have not won a FREE luxury holiday!”
Enquiries
You should contact your local Citizens Advice Bureau (http://www.nacab.org.uk) who can give you legal advice about your rights under the current law. Also your local Trading Standards Departments (http://www.tradingstandards.gov.uk) who are responsible for enforcing the timeshare law within the UK. You can find the address and telephone numbers of both these organisations under the respective given sites and then entering your local postcode. Both should also be listed in your local phone book.
If you do wish to seek a legal remedy, then you might like to contact the Law Society on 0207 242 1222 or visit http://www.solicitors-online.com and select the topic travel and tourism. The Society can provide you with a list of solicitors who have knowledge and experience of dealing with timeshare and related issues.
Further information, advice and help is also available from:
The Association of Timeshare Owners Committees (TATOC) which is a non-profit making body, which represents timeshare owners, owners/resort committees and associations. It can provide information and advice to consumers on timeshare resale, maintenance fees, exchanges, VAT/Tax issues. Tel: 0151 638 8239.
The Timeshare Consumers Association is able to offer consumers advice and information on many problem areas relating to timeshare and holiday clubs. Its contact details are Tel: 01909 591 100; email: info@timeshare.org.uk Website: www.timeshare.org.uk
The Consumer Gateway is a DTI website which offers information and advice to consumers on a range of issues (including timeshare). For further details see http://www.consumer.gov.uk
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Last updated 08 December 2003
Department
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