Timeshare and Long Term Holiday Products are again under the government spotlight
The following statement is contained in the recent Consumer Protection Partnership: Priorities Report 2015.
Many scoff at the work the TCA does, however there has to be someone or some entity to rebut the spin placed on timeshare by the timeshare industry. In saying this many at the TCA believe that the fundamental product is good and would deliver good benefits. Clearly the government and its satellite agencies think likewise and attempt to keep up with the abundance of variations and changes of the timeshare products. As my mother used to say “if it’s not broken don’t fix it”. Therefore if the original concept was good and is good why does the industry habitually change its products? We believe it is to avoid the legislation and to diminish right given to consumers by the legislators.
Extract:- See full report CPP_Report_Jan_2015 (1)
Holiday Products 2.29.
Complaints concerning the holiday product sector have consistently constituted a significant proportion of complaints UK ECC has been receiving from the UK consumers over the years.
Clause 2.30. Issues identified within the travel sector include holiday products such as timeshares and holiday clubs. Complaints commonly based around:
The selling process
Contracts
Non-adherence to legal requirements
Products devised to avoid regulations
Civil breaches of availability of services purchased
Problems owners face when they no longer wish to keep their timeshare and want to exit from contracts.
Clause 2.31. Timeshares are considered to be an emerging threat by the ECC with this area generating the most complaints during 2013. There are loopholes in the recent timeshare legislation which are being exploited by unscrupulous companies. Timeshare issues, particularly attempts to avoid the current legislation are of interest to the ECC. They take an active in part in both the EU Commission’s review of legislation, and in the ECC Networks joint project on Timeshare which aims to educate consumers, assisting them in avoiding problems. The OFT/CMA (for BIS) has looked at the legal issues concerning timeshares disposal. Planned CPP
Response
2.32. The CPP will undertake further research to better understand the extent of consumer detriment in the holiday club / timeshare sector, and identify any specific problems that require a CPP response during 2015. It is intended that CPP research will link up to relevant work being undertaken by the European Commission in this area.
Clause 2.18 (is quite interesting)
Consumers can face onerous terms when cancelling contracts including, but not limited to, long cancellation periods or significant fees. Fees may be arbitrary and not based upon actual losses/costs. Problems have been identified across a number of sectors, including holidays, tickets, gyms and training courses, as well as internet and mobile phones. CMA guidance states that consumers should be allowed to leave a contract without penalty if there is an increase in subscription price.
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