Last year saw a record number of scammers and cold call companies being exposed and brought to justice. This was thanks to the general public and there decision to ensure that no one else suffers in the hands of these companies.
Reports suggest that thanks to the help of reports made by victims of scammers, in 2015;
- The National Trading Standards Illegal Money Lending Team wrote off £55million worth of illegal debt and helped nearly 24,000 people who were victims of loan sharks
- Chris Harvey from Caerphilly, South Wales, was jailed for 40 months for charging interest as high as 400,000%.
- Fines of over 1 million were placed on cold call firms for unwanted marketing phone calls and junk texts.
- Complaints about discount holiday clubs have halved, according to the UK European Consumer Centre. These clubs have devised technicalities to avoid European rules that protect consumers who buy or own timeshares.The main source of the holiday club problem concerns cashback deals, with some clubs making it as difficult as possible for customers to reclaim their money. As more and more people are reporting these companies to places such as Trading standards and the UK European Consumer Centre, it seems as though they are getting a hold on these bogus companies.
Another huge boost was that saw the new Directive 2008/122/EC come in, which has provided anyone who is looking to purchase a timeshare with some much needed power to ensure they are not the victims of any miss-selling, miss-representations or up front fees. The Key points of the new Directive are:
- Full harmonisation across the EU
- Detailed rules on pre-contractual information
- Cooling-off period is 14 calendar days, with no cancellation costs incurred. No reason has to be given
- Prohibits traders or any third party from asking consumers for deposits, advance payment, guarantees or reservation of money during the cooling-off period
- Specific payment rules for long-term holiday product contracts
- Compulsory penalties (national) if the trader does not comply with the national rules implementing the Directive
- Any linked loan or finance agreement is automatically terminated if the consumer cancels
- Timeshare and long-term holiday products must not be sold as an investment
- Contracts must be in an EU language of the consumer’s choice
The new Directive applies to contracts where a consumer pays for a service:
- concluded in an EU state, or
- relating to any accommodation in an EU state, or
- entered into by a trader who conducts business in an EU state (for the purposes of the Directive, a trader is taken to mean any one acting ‘in the course of a business’)
The new Directive will require prospective purchasers to be given accurate and sufficient information about what they are buying in good time, before they are bound by any contract or offer. It is also worth noting that the Directive requires the European Commission to encourage the development of Codes of Conduct.
If you are thinking of purchasing a timeshare and/or have been approached about a deal that seems perfect for you, our advice is to read our summary on the new Directive, ensure that the offer and contract matches the EU requirements before you proceed.
We welcome calls from any consumers who wish to discuss the offer to ensure that you are happy before you proceed.
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