Recently we found out that owners of timeshare contracts in Ontario, Canada could be getting some government assistance to exit their agreements. This comes as part of a new public consultation on updating the Consumer Protection Act.
In basic terms, the plan put on the table for consultation is proposing that all timeshare owners old and new should be allowed to exit their contracts after a ten year period. Also suggested is a very fair exit penalty of 1.5 times the annual maintenance fee. Owners could give notice that they want to withdraw at any time following the 10th anniversary of signing the contract.
On top of this, the Ministry of Public and Business Service Delivery is considering improved disclosure requirements for timeshare contracts, which would be set out in regulation. Once, and if the new rules under the Consumer Protection Act come into force, it’s proposed that exit fees would have to be explicitly included in new timeshare contracts. If not stated upfront, timeshare owners could end their agreements at the allowed time with no cost.
Exit companies
The proposals go further and include changes that affect exit companies. Proposed new rules would prohibit such companies from receiving payment until clients have received the promised results. Also included is the requirement to offer a ten day cooling off period after signing the agreement contract. As with other countries, Canada suffers from bogus exit companies, these changes have been brought about because some companies were found to be taking consumers’ money without providing any real result.
TCA comment
Well done Ontario, a great move in the right direction. From our point of view there shouldn’t be any time period imposed before timeshare owners can exit the contract. We also think if a term has to be included, maybe five years would have been better. Nevertheless, this is a clear sign that long term timeshare contracts and the lifelong lock in could soon be a thing of the past, at least in Ontario.
Generally, the timeshare industry lobby is all powerful; we have seen similar proposals across the border in the USA knocked back by the industry. Let’s hope that Ontario wins the day and other areas of Canada follow suit. It would also be great if the changes proposed filter across the border and timeshare USA made similar changes. First things first, Ontario has to get this into statute which will be no mean feat.
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