Only last week we published an article regarding letters received by owners of timeshare with MacDonald Resorts the letters stated that maintenance fees will rise by at least 30%, we made emphasis that no upper limit was mentioned. We established that the MacDonald resort owners at Doña Lola in Calahonda, Costa del Sol have also received letters but this time the rise in the maintenance fee is a whopping 40%!
The owner of the timeshare at this resort who contacted us was justifiably angry, in fact that might be an understatement. The question posed to us was “is there any law or legal mechanism to challenge this hike”, unfortunately, the answer is no. There is nothing in law to set any limits on how much timeshare developers can charge for maintenance fees.
It doesn’t end there, bear in mind that maintenance fees are subject to VAT at 20%, the real rise is not 40% but 48%.
Caught between a rock and a hard place
Owners receiving bills for any MacDonald resort will experience rises of between 30% and 40% (exclusive of VAT), naturally many will be saying “enough is enough” and wish to exit their timeshare contract once and for all, but wait……
MacDonald resorts are one of a few developers who publish an exit strategy but be prepared. The penalty cost for getting out is a mere 4 years additional maintenance fees, yes we said four years! The fee also applies to the current fee so again, in the case of Doña Lola a 40% rise on what it would have cost last year. So reality states, either stay put and suffer rising maintenance fees or stump up a not inconsiderable sum to be let out of prison.
TCA Comment
Difficult to make a comment under these circumstances beyond our normal statement that whilst an owner of timeshare you are contractually liable to pay annual maintenance fees, no matter how much they are. Some may say “I’m not paying it”, not a good idea. MacDonald Resorts are one of the most aggressive developers in chasing debtors and have no qualms about sending in the debt collectors and if heels are still dug in, a County Court Judgement will be on the way.
The final point is that maintenance fees only ever go up, so for 2024 if the rise is even a paltry 5% it will be 5% on top of the 40% increase for 2023, and so it goes on. Hostage and ransom come to mind!
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