HOLIDAY
CLUBS AND TIMESHARE
Over
444,000 UK consumers own a timeshare, costing an average of £6,500.
Within the UK alone, the timeshare market is worth over £108
million pounds per annum, and this does not include members of
holiday
clubs.
Derek
Alcorn Chief Executive of Citizens Advice Bureau says
”With Timeshare Law excluding contracts of less than 36 months,
and timeshare on boat there is a case for much grater public information
and education about the legal framework of timeshare, and a case
for much tighter legislation. CAB is calling on government to amend
the Timeshare Act 1992 and on the EU to amend its Timeshare Directive
to take account of the same issues.”
Some
of the main problems are...
• Companies offer prizes to get people to attend presentation,
where pressure-selling techniques are used to push them into buying
holiday club membership. People are assured that it is not timeshare
– it isn’t, and this leaves them with less legal protection.
• The presentation goes on for so long that people are desperate
to leave and more likely to sign. “Special deals” are
promised which supposedly won’t be available later.
• Timeshare law is too narrowly defined, so it excludes contracts
of less than 36 months or timeshare on boats. Holiday club contracts
of 35 months are common.
• There is no cooling off period, there is no requirement
to provide written information and it is not legal to take deposits
at sales presentations, as long as the product falls outside the
legal definition of timeshare.
• There is no protection for timeshare owners who get ripped
off by re-sale companies, which take a fee and deliver nothing.
• There is no obligation for holiday clubs to provide written
information about how much accommodation there is, when and where
it is available and how many other members are competing for it.
This makes it impossible for people to assess the likely availability
until they try to book.
Citizens
Advice says the UK government should amend the Timeshare Act 1992
at the earliest possible opportunity to include holiday clubs and
other similar schemes such as vacation clubs, shared membership
clubs and timeshare on boats. Contracts of less than 36 months should
also be covered. As so many schemes operate across the EU, the EU
Timeshare Directive also needs to be reviewed to take account of
holiday clubs and similar schemes.
TOP 10 TIPS ON HOLIDAY CLUBS AND TIMESHARE (info
supplied by the CAB)
| 1 |
If
you win a prize or holiday which you need to attend a
presentation
to collect, be wary. Don’t try to claim it unless
you want to spend several hours at a high pressure sales
pitch
for holiday clubs or timeshare on a boat. |
| 2 |
Don’t
be reassured by sales reps promising that it is not timeshare.
You have far less legal protection if you are buying a
holiday
club membership or if you are buying a timeshare on a boat. |
| 3 |
If
you are approached on holiday, don’t get in to
a taxi or bus provided by the sales rep to attend a presentation.
Insist on making your own arrangements to get there and back.
Companies often choose locations away from your hotel and
out of town to make it more difficult for you to leave the
sales pitch when you have had enough. Tell someone where
you
are going and if you have a holiday rep, listen to their
advice. |
| 4 |
If
you are not sure about a deal, leave. Ignore suggestions
that the ‘special offer’ will not be available later.
Once you have signed a holiday club contract, there is no
cooling off period if you change your mind – so better
to think it through than regret it later. |
| 5 |
Be
wary of cash-back schemes – if the company goes bust
before the cash-back is due, you will never get your money.
Some companies do not pay out, claiming there are ‘mistakes
in the paperwork’. |
| 6 |
Ask
to see detailed written information about costs, companies
involved and responsibilities. Take it away and read it
before
signing anything. Don’t be pushed in to signing on
the spot. |
| 7 |
If
you change your mind, act quickly! Check the small print
of your
contract for a cooling off period
- you may be able
to cancel. Some holiday clubs pass your details to credit
companies - don’t be pushed in to borrowing the money. |
| 8 |
Find
out about extra costs before claiming your ‘free’
holiday – they often cost more than a high-street holiday,
but offer less choice over dates and destinations. |
| 9 |
If
you own a timeshare, be careful of companies who claim to
have someone waiting to buy it. You may have to pay a fee
upfront, but lose this if the buyer never shows up. |
| 10 |
If you
have a problem with a holiday club or timeshare, seek advice
from your local Citizens Advice Bureau or the Timeshare Consumers
Association.
|
|
