Timeshares and holiday clubs – London Borough of Bromley

This guidance is for England, Scotland and Wales

If you are considering buying a timeshare, joining a holiday club, or reselling or exchanging your existing timeshare, it is important that you find out what your rights are under the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010. It is also important to obtain as much information as you can about the trader and the products they are selling before you sign a contract or make a payment. There are many rogue traders operating in the timeshare industry and they can cause serious difficulties for the unwary consumer.

Please note that the information below assumes that the agreement was signed in the UK.

BREXIT

The United Kingdom (UK) left the European Union (EU) on 31 January 2020. At that point, existing EU law was converted into UK law (generally speaking, legislation titles remain the same). An agreement was reached between the UK and EU on their future relationship, which came into effect on 1 January 2021.

This guide reflects amendments made to the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010 as a result of exiting the EU.

WHAT IS A TIMESHARE CONTRACT?

A timeshare contract between a consumer and a trader is one where the consumer pays to use overnight accommodation (property, caravans and boats) more than once. The contract must last more than one year or can be renewed or extended so that it lasts more than one year.

WHAT IS A LONG-TERM HOLIDAY PRODUCT CONTRACT?

A long-term holiday product contract, such as membership of a holiday club, is one where a consumer pays and has the right to obtain discounts or other benefits related to accommodation. The contract must last more than one year or can be renewed or extended so that it lasts more than one year.

WHAT IS A RESALE CONTRACT?

A contract where a trader, for a fee, helps a consumer buy or sell a timeshare or a long-term holiday product.

WHAT IS AN EXCHANGE CONTRACT?

A contract where a consumer, who owns a timeshare, pays a fee to join a trader's timeshare exchange system (a temporary timeshare 'swap').

WHAT SHOULD I LOOK FOR BEFORE I SIGN THE CONTRACT?

Timeshare or holiday club membership advertising must include details about how you can obtain important information about the contract. If a trader invites you to attend a promotion or sales event, the invitation must clearly explain the commercial purpose (for example, the intention to sell you a timeshare) and nature of the event so that you are not misled.

Before you enter into a contract, you must be given important information in good time and before the contract is made so you can choose whether or not to go ahead with the purchase. This information must be given to you in English and may also be given in another language. It must be easily available, clear, accurate and understandable. It should also be provided in writing and free of charge.

Check timeshare contracts to see how long they last. Some contracts state that you own the timeshare permanently.

Find out how much the maintenance fees are and what arrangements are in place to pay them.

CAN I WITHDRAW FROM THE CONTRACT?

If you sign a contract you have a 14-day cooling-off period during which you can withdraw. This period runs from the date the contract is concluded or the date you receive a copy of the contract, whichever is later. The contract must be in writing, in English (and may also be written in another language) and include certain information, such as your right to withdraw from the contract. If the trader does not comply with the requirement to provide the standard withdrawal form or the key information, the withdrawal period can be extended. You should give written notice of withdrawal to the trader. You can use the form included in the contract for this, although you do not have to. You are not responsible for any costs or charges if you decide to withdraw.

Any credit agreement you signed to finance the purchase of the product is automatically terminated when you withdraw.

HOW DO I STOP A LONG-TERM HOLIDAY PRODUCT CONTRACT?

You are entitled to stop the contract, without having to pay a penalty charge, by informing the trader within 14 days of the day you received a request to pay an instalment charge (after the first instalment has been paid).

WHEN DO I HAVE TO PAY?

For timeshare, long-term holiday products and exchange contracts, a trader must not ask for or take any payments (including guarantees, reservations of money on account and acknowledgement of debt) from you within the 14-day cooling-off period (or the extended cooling-off period if the trader did not provide you with the standard withdrawal form or the important information). To take a payment of any kind during this period is a criminal offence. You can report an offence by contacting the Citizens Advice consumer service.

For resale contracts, the trader cannot collect payment from you until the timeshare or long-term holiday product has been sold or the resale contract is ended.

WHAT IS A PAYMENT SCHEDULE FOR A LONG-TERM HOLIDAY PRODUCT?

The Regulations explain how a payment schedule should be set out by a trader. Payments must be divided into equal, yearly instalments - taking account of the length of the contract - and the schedule must be given to you. The trader must send you a request for payment at least 14 days before it is due. If a trader fails to comply, a criminal offence is committed. You can report an offence by contacting the Citizens Advice consumer service.

I HAVE BEEN MISLED, WHAT CAN I DO?

You may be enticed into attending a presentation by the lure of a 'free' holiday, only to discover that you have been misled and the 'free' holiday has add-ons that make it expensive; you may also be restricted as to when and where you can go.

Watch out for scams. You may 'win' a prize, which you are taken to collect from a timeshare sales event, only to be pressured into signing a contract.

Whilst at the sales presentation you may be subjected to the hard sell, with sales techniques designed to lure you into signing a holiday club contract costing you many thousands of pounds. You may not be aware at the time, but the small print in the contract will not match up to the glossy too-good-to-be-true sales pitch you were given.

Watch out for timeshare agreements that have very tight exit clauses which make it difficult to end the contract. Some contracts are 'everlasting' meaning there is no end-point. Even if you are no longer able to use the timeshare, you may still be responsible for fees. Upon your death, your estate (anything of value you leave) could be required to settle outstanding fees.

If you own a timeshare, beware of the timeshare resale scam. You may be cold-called by a trader claiming that they can market your timeshare for you for an up-front fee and if it does not sell they will buy it from you; or they will offer to buy the timeshare if you agree to buy another one or join a holiday club. The trader may inflate the value of your timeshare to encourage you to go ahead. In some cases, the trader may tell you that there is already a buyer interested in your timeshare but, in reality, they don't exist. The trader may even pose as the buyer and use different contact details to appear more credible. The trader's motive is to get you to part with your cash or make a card payment for what turns out to be a fraudulent service.

Beware of a suspicious call from someone pretending to be a lawyer who claims they can represent you, for a fee, in your dispute with a timeshare trader. Some criminals trying to commit fraud will pretend to be genuine and reputable legal firms. In all cases, their sole aim is to steal your money.

Never be persuaded to make an up-front payment of any sort, always seek independent advice first.

If a trader misled you, had an aggressive sales technique or undertook any trading practice that was unfair, they may have breached the Consumer Protection from Unfair Trading Regulations 2008. To report an unfair trading practice, contact the Citizens Advice consumer service for a referral to trading standards.

If you enter a timeshare, holiday product, resale or exchange contract because a trader misled you or because the trader used an aggressive commercial practice, the Consumer Protection from Unfair Trading Regulations 2008 give you rights of redress: the right to unwind the contract, the right to a discount and the right to damages. These rights are in addition to the rights you already have under the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010. See our guide 'Misleading and aggressive practices: rights of redress' for more information.

DO I HAVE ANY PROTECTION IF I SIGN A FINANCE AGREEMENT OR PAY BY CREDIT / DEBIT CARD?

If you pay for the product by credit card or on finance arranged by the trader, and if it costs more than £100 but less than £30,000, you are protected by the Consumer Credit Act 1974. Section 75 of the Act makes the card provider as responsible as the trader for a breach of contract or a misrepresentation. You are entitled to take action against the trader, the card provider or both. If the cost exceeds £30,000 and is less than £60,260, and the finance was arranged specifically to buy the product, you may be able to claim against the finance company under section 75A of the Consumer Credit Act 1974.

If you use a debit card to purchase the product, you may be able to take advantage of the chargeback scheme. Chargeback is the term used by card providers for reclaiming a card payment from the trader's bank. If you can provide evidence of a breach of contract - the product was not 'as described', for example - you can ask your card provider to attempt to recover the payment. Check with your card provider as to how the scheme rules apply to your card and what the time limit is for making a claim.

IN THIS UPDATE

Last reviewed / updated: June 2023

Key legislation

Please note

This information is intended for guidance; only the courts can give an authoritative interpretation of the law.

The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to legislation can be found on each link's 'More Resources' tab.

For further information in England and Wales contact the Citizens Advice consumer service on 0808 2231133. In Scotland contact Advice Direct Scotland on 0808 164 6000. Both provide free, confidential and impartial advice on consumer issues.