Holiday Clubs for example fell outside of the protection afforded to customers by the Timeshare Act 1992 (later amended in 2003 and 2007). This means that if someone purchased a Holiday Club, they would not have the right to a cooling-off period that would have automatically applied if purchasing a traditional timeshare.
There have been similar developments in relation to products described as “fractional ownership” or in products which are in reality timeshares, but which relate to boats, cruise ships, or aeroplanes.
In 2008 a new European Timeshare directive was adopted and it was a requirement that all European Member States should bring this into law by 23rd February 2011. The purpose of the directive was to clearly give consumers greater protection.
A full copy of the directive can be viewed at EU Directive
This directive has now been brought into law in the UK with effect from 23rd February 2011.
A full copy of the law can be also be viewed at Timeshare Regulations 2010
Key features are:
- Holiday clubs are covered in the cooling off period
- Shorter Timeshare contracts are allowed
- All types of holiday accommodation are covered including caravans or cruise ships
- Timeshare can be resold by the consumers
- Introduction of exchange services (i.e. some Timeshare owners pay an additional fee to join an exchange club and for paying that fee they swap their Timeshare week for other weeks at different resorts).
It will apply to all contracts entered into by consumers in the following circumstances:
- a)
Where the contract has been concluded in any EU State, or - b)
Relating to any accommodation in an EU State, or - c)
Entered into by a trader who conducts business in an EU State.
The directive is also designed to completely shake-up the way that timeshare and timeshare like products are sold. Essentially, the key is that accurate and honest information must be provided inline with the new legislation. This includes information on cooling-off periods.
Another issue that has been addressed by the new Directive relates to the resale industry. In recent years there have been a number of complaints regarding individuals who have contracted with companies offering to assist them with the resale of their Timeshare.
Unfortunately in the past this has been another ‘scam’. This will change under the new directive to help to eradicate this issue for consumers.
Enforcement of new regulations
The new regulations will be enforced by the Office of Fair Trading and Local Authority Trading Standards Officers in the UK. Failure to comply with the directive could allow for consumers to bring a civil claim against the trader.
Ask for advice!
Consumers now have the time to take away any contracts to do with Timeshares and holiday clubs before parting with any money. We strongly advise that you take legal advice before signing anything.
Timeshare in Spain 