Timeshare resorts impart maintenance fees on the consumers who buy into those resorts. This maintenance fees provide funds to maintenance Contractors who allegedly bid on maintenance projects, when they win the contract they farm out 50 to 70 percent of the work to subcontractors, who specialize in certain aspects of projects, such as carpentry or electrical work etc. If you own a small contracting business, you will encounter situations where subcontractors do not perform as agreed in the contract. If timeshare resorts do not perform to the contract then your club can withhold payments from a contractor and in some circumstances unlimited amounts.
If the club is not acting in the consumer’s best interest and the control of that committee is suspect, then the consumers can and should withhold those maintenance fees.
A few years ago my processor in title Sandy Grey called for a payment strike and many resorts began to change their ways. Admittedly not every resort did but it did have an effect on the resort developers and Maintenance Company.
The question is, is that legal?
The answer is yes if you the consumer believe that the money you pay is being squandered or that the fees relate to other matters other than maintenance fees you are entitled to withhold the funds pending satisfaction of your allegations.
Of course if that resort does tender reasonable and satisfactory answers then of course they should be paid. But the question is do they provide the answers? Are they a complete set of answerers and do the supporting documents provided detailed explanations as required by law?
If they don’t and your enquiry is reasonable and proportionate, then they will be barred from a future action and/or the action will be stayed until the pre action protocols have been complied with.
Timeshare resorts are sometimes bullies and they state that they don’t have to comply with your requests as they have a policy or they have rules preventing disclosure when in truth they don’t and the procrastination are just lies. They are not exempt from the CPR Court rule and never have been, so ask away and withhold your funds, withhold you payments until such time as you are satisfied.
If you have a builder who rocks up to your house and he did shoddy work I am sure you would not pay him until the work was satisfactory, yet many pay the resort when clearly they have no idea where the money has gone too and whether the fee represent best practise and reasonable cost.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk