Over the last few months we have reported on many fraudulent companies that are quite happy to take your money and you never see it again. There are ways to protect yourself if you think ahead. These companies know all of the tricks of the trade, but there are several things that they cannot control, such as how you pay for something, and legislation. There may be loopholes to get around these, but if you know what you are doing, it is much easier to protect yourself.
So we have put together a small fact sheet to protect yourself when paying for a timeshare product, or a timeshare related product. If you are happy to part with your money, do it in a way that is safe. The first tip we would like to give, and is very important; NEVER pay in CASH.
The Consumer Credit Act 1974 was brought out to protect anyone making a purchase of an item through credit. So, if you pay for a product with a credit card, or indeed with a loan agreement solely to pay for that product you will be protected under this scheme if you have been mis-sold. Be very aware though, this does NOT mean paying by Debit Card or Paying with a Loan that is to be paid in full every month, that you will be protected. There is another way of recuperating your monies if you pay with these payment methods.
We will start with the first, which is the Consumer Credit Act 1974, this is a great consumer protection which can be used for up to 6 years after the purchase of product. You are able to claim back ALL of the monies paid if the company that you purchased from are in breach of the original contract, or you have been mis-sold the product. A breach of contract is described as
“a legal cause of action in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contractby non-performance or interference with the other party’s performance”, Wikipedia.
And Mis-sell is defined by;
“Sell (something) to a customer on the basis of misleading advice” Collins Dictionary.
The conditions of claiming back by this method, the original payment has to be between £100 and £30,000. The claim has to be made direct to the credit card or loan company, and one important thing to take heed of is that the company that you are signing the contract with should be the company that you are purchasing the goods from, not an agent of the company contracted to make the sale of goods, as in this case the Consumer Credit Act would not apply on the grounds of third party involvement.
Secondly, if you have paid by debit card or an ordinary loan that is paid over time with interest, the Consumer Credit act does not cover these purchases. However, there is a method of reversing the payment using the ‘Charge Back’ Method. This can be used if the goods or products that you have purchased are faulty, damaged or broken. A breach of contract has to have happened as defined above, this also may be due to company closure and you not being able to use the product.
The conditions for making a charge back are slightly different for each provider, so be sure to check with your card provider previous to your purchase. All providers are not in the scheme as it is not compulsory, but the bigger companies such as VISA, Mastercard, AMEX are all in the scheme. There are a maximum number of days after purchase that you have to claim back, normally up to 3 months, however, also to be checked with your provider as these may differ. The good thing about a claim by this method is that there is not a minimum or maximum claim amount, so the original purchase could have been any amount.
We also suggest that you make contact with the Financial Ombudsmen in the UK to check the in’s and outs of what to expect from a claim or charge back. They will be able to provide you with all relevant details for your claim. If you need to ask any questions specific to Timeshare and your claim, please do not hesitate to contact us on the number or email address below.
Again, we would just like to warn you; Be sure of what you are buying and from who. Research the company and if you are happy to continue with the purchase, stay safe and follow our guidelines for payment.
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