Timeshare
22.11.2002
For many people, the buying of holiday time at a timeshare
property gives many years of happy times abroad and in the UK. For
many others however, timeshare has brought nothing but
heartache.
The Timeshare Act 1992 gives consumers protection for any
timeshare agreement or credit agreement if:
(1) UK law covers the agreement
(2) one or both of the parties are in the UK.
Anyone who has signed a timeshare agreement in the EU, has
rights under Timeshare Regulations.
Q. How does the Timeshare Act protect the consumer?
A. The seller must provide you with written details, setting out
the terms of the agreement and a notice explaining your right to
cancel.
The notice must say:
- you have a legal right to cancel the agreement within 14
days
- that you have a right to claim back any deposit which you might
have paid.
Failure to meet these obligations is a criminal offence, and you
should report the matter to your local Trading Standards
office.
Q. What about timeshare agreements bought on credit?
A. If you cancel your timeshare agreement, any credit used to
finance the purchase is also cancelled. Remember to notify the
credit company of the cancellation. You will have to pay back any
amounts of credit which you have already had.
If you repay the whole amount, or part of the credit within one
month of cancelling the agreement, or pay the credit before the
first instalment is due you will not have to pay any interest.
Q. I have taken part in a market research survey after being
stopped in the street and have now received the offer of a prize if
I attend a holiday exhibition. Is this timeshare?
A. It may well be - this is a common approach used by timeshare
marketing companies. Do not attend the exhibition if you do not
want timeshare.
Q. I recently took part in a
simple quiz over the telephone. Now I have been called back and
told that I have won a prize at a holiday presentation. Is this
timeshare?
A. This is another method designed to persuade you to attend a
timeshare presentation. Again, be absolutely sure you can afford a
timeshare property before you attend.
Q. Something has come through the post which claims I’ve won a
holiday. What's the catch?
A. You might have to pay unexpected costs for flights or
accommodation, which often work out as expensive as if you had
booked the holiday the normal way. The free holiday may turn out to
be in timeshare apartments and you are likely to meet with more of
the company's sales pitch.
Q. I want to collect my prize, but not to sign a timeshare
agreement. How can I do this?
A. Prize offers are usually conditional on attending a
presentation, which can go on for hours.
Remember - there is no obligation to buy or sign anything, and
you are always free to leave. lf you are in any doubt, walk out.
Don't take money, cheque book or credit cards, and don't let the
salesman take you home to get money or give him your credit card
number. Alternatively, don't go to the presentation at all. It is
likely that the prize you will receive will be of low value or full
of hidden catches. The prize is usually cheaper than the cost in
petrol attending the presentation. In the past, people have been
known to win a pen with a value of 10p!
If you want to buy, and are interested in credit, shop around
for the best deal. Don’t feel pressured into signing up with the
company's package, you may find credit cheaper elsewhere.
Do not be pushed into signing immediately, even if a discount is
offered. The chances are that the longer you refuse, the higher the
discount will be.
Check and double check all the paperwork and seek professional
advice from a solicitor.
Never sign unless you have read and understood all the terms and
conditions. You might be legally bound by them and unable to
cancel.
Check that the company is a member of a trade association like
the Organisation for Timeshare in Europe. They might be able to
offer pre-buying advice.
Last of all, remember that the salesmen are there to sell
timeshare - be cautious.