Timeshare and holiday clubs

Directly to:

• What is covered under the new rules?
• Protection against providers of 'holiday clubs' is covered!
• What information should you be given before entering into an agreement?
• Can you cancel the contract after signing?
• What if the entrepreneur did not inform you about the cooling off period?
• When do you have to pay?
• Don’t fall for aggressive or misleading selling techniques!
• Be wary of anyone offering to ‘help’ you sell on your timeshare!

Timeshare (holiday) accommodation is usually offered while abroad and therefore by definition constitutes a cross-border transaction. In order to offer consumers within the European Union greater protection against what are often aggressive selling methods, a European Directive on timeshare contracts has been drawn up. This Directive applies in all Member States of the EU.

As of February 23rd 2011, the rules for timeshare and holiday clubs changed. On this website you can read about the new rules. If you have signed a contract before February 23rd 2011, please contact the ECC for further information.

What is covered under the new rules?

The EU Directive applies to contracts:

• with the right to spend at least 1 week a year in a holiday apartment or other accommodation;
• the duration of your contract is longer than one year;
• or if it concerns the resale and exchange of timeshare schemes.

Timeshare is the annual right to use accommodation during one or more weeks in a holiday property or several properties.

Protection against providers of 'holiday clubs' is covered!

The new Directive also applies to 'holiday clubs'. A holiday club is where you pay a membership fee which allows you to book and pay for holidays through the club at a discount.

What information should you be given before entering into an agreement?

With the offer, the trader must provide you with the following information:

• the duration of the agreement;
• what rights you get, for example, the duration of your yearly stay;
• the price;
• all additional costs such as service, maintenance and administration;
• the costs and options for using facilities like a sauna and swimming pool.

The trader must provide you with a reasonable amount of time to be able to think about the offer. You do not need to accept the offer. It is your own decision. If you decide to accept the offer and enter into an agreement, then the trader must provide you with further information.

The European Union has designed standard information forms to help entrepreneurs to inform consumers. You can use these forms to verify if the entrepreneur gave all required and necessary information. If he did not, ask for it.

The following rules apply for the information:

• all required information must be given in your own language;
• you must be able to store the information or receive it on paper;
• the contract must be signed by both parties. This may be done in writing or electronically.

Note that you store the information electronically or receive it on paper, because it is very difficult to prove what the seller offered you verbally afterwards. In such a situation you might have entered into a contract you do not want.

Can you cancel the contract after signing?

Yes. After signing, you have a right to a cooling off period of 14 calendar days. Within this cooling off period you have the right to cancel the contract, without giving any reason and at no cost. At the entering into the contract, the entrepreneur must give you a standard form with which you can cancel the contract.

The cooling-off period starts when you have received the contract, which is signed by both parties. The entrepreneur may not ask you to pay anything within this period for reflection. If you want to cancel the contract, it is wise to send your withdrawal notice by registered post and save a copy for your own administration.

What if the entrepreneur did not inform you about the cooling off period?

If the entrepreneur did not notify you about the cooling-off period of 14 calendar days and did not provide you with the withdrawal form, then your cooling-off period is extended by one year.

If you receive the withdrawal form afterwards, the cooling off period becomes 14 calendar days.

If the entrepreneur informed you about the cooling-off period, but not about the other required information, then your cooling-off period extends to 3 months. If you receive the required information afterwards, the cooling off period becomes 14 calendar days.

If the entrepreneur did not provide you the filled in standard contract form, then the agreement is void. The agreement is not valid. It is wise to inform the entrepreneur in writing, that he does not fulfil his legal obligations. Mention his legal obligations. And this is the reason why you will not make use of the accommodation and will not pay. Send the letter by registered mail and keep a copy of the letter and the posting receipt for your records. This is useful for any future contacts with the trader.

When do you have to pay?

You only have to pay if the agreement has become binding. After you have received all the mandatory forms and after the cooling-off period of 14 calendar days. The entrepreneur may not request a deposit or advance payment earlier.

Therefore, you do not need to respond to requests for deposits or advance payments. If you have made a down payment and cancel the timeshare contract within the statutory cooling off period, you are entitled to a full refund of all money paid. If your money is not refunded you should contact your credit card company as soon as possible in order to have the payment reversed. Or contact the ECC.

Don’t fall for aggressive or misleading selling techniques!

Sellers of timeshare deals as well as holiday club schemes use aggressive selling methods. For example, they approach you in the street and invite you to try your luck with a scratch card. They tell you that you are the lucky winner of a free holiday, cruise or bottle of champagne. Or that your children have won a wonderful surprise. To ‘claim your prize’, however, you have to go with them. Once there, you are likely to be subjected to high-pressure sales techniques aimed at getting you to sign up. But you will never get what you were promised. Instead, you can lose thousands of Euros or end up being tied to long-term financial commitments from which it is almost impossible to withdraw.

Be wary of anyone offering to ‘help’ you sell on your timeshare!

If you already have a timeshare or holiday club membership, you may be approached by organisations claiming to know or to be able to find someone willing to take over your commitments. For this service they charge you an administration fee – payable in advance. Don’t fall for it: they are unlikely to provide you with the promised service. There is no market for resale.

For more information on practices of unscrupulous holiday clubs, fake cash back companies, fraudulent resale companies, fraud class action firms, fake lawyers and notaries, please visit the blog Mindtimeshare.

Tips:

1. Only trust the written contract, not the seller's verbal offer.
2. Read the full contents of any contract – before signing!
3. Keep a cool head. Work out whether it isn’t cheaper to rent holiday accommodation.
4. Never make any down payment!
5. It is very difficult to withdraw from a timeshare or holiday club contract.
6. Be wary of organisations offering to take over your timeshare or holiday club contract.