Warning to timeshare owners

Shropshire Council’s trading standards team are warning timeshare owners to be aware that they may not be protected under the new Timeshare Directive.

The new directive now applies to timeshare contracts lasting less than three years, and to products such as cruise boats, caravans or canal boats.  Re-sale contracts and long-term holiday products including holiday clubs are now also regulated by the directive.

However four European countries – Spain, Poland, Slovenia and Lithuania – have not adopted the new legislation.  This means that consumers who have signed timeshare agreements with companies based in these countries are not covered by the directive.

Under the new directive sellers must provide detailed information to consumers in good time before the consumer is bound by any contract, including the price to be paid, a description of the product and the exact period and length of stay that the consumer is entitled to under the contract.

The directive also ensures that consumers may withdraw from a contract within a ‘cooling-off’ period of 14 calendar days, and that traders can never ask them for any form of advance payments or deposits during that period.  Before the conclusion of the contract, the trader is required to explicitly draw the consumer’s attention to the existence of the right of withdrawal, the length of the withdrawal period and the ban on advance payments during the withdrawal period.

Councillor Steve Charmley, Shropshire Council’s Cabinet member responsible for trading standards, said:

“The majority of cold calls for timeshare products originate in Spain and it is very worrying that Spain, and three other countries, have not incorporated this necessary change.  A Shropshire resident was recently cold called and the company drew his attention to the new legislation.  However, as the company was based in Spain, the consumer was not protected and could have lost thousands of pounds if they had signed an agreement with them.”

Anyone seeking advice or information about the new Timeshare Directive should call Consumer Direct on 08454 040506.