The Timeshare, Holiday Products, Resale and Exchange Regulations 2010 - A Guide

Started by Boss Man, December 15, 2010, 21:54:08

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Boss Man

    These guidance notes have been produced to provide guidance to business on the above regulations. However, they do not carry any legal authority and should be read in conjunction with the legislation itself.

Overview

On 23 February, 2011 new Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010 (the Regulations) will come into force and will apply across the UK.  The Regulations transpose into UK law EU Directive 2008/122/EC on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts (the Directive).  They will contribute to the important objectives of boosting consumer confidence in the timeshare industry and eliminating the operations of rogue traders which bring legitimate traders into disrepute and cause considerable problems for consumers.

The Directive replaces Directive 94/47/EC on the protection of purchasers in respect of certain aspects of contracts relating to the purchase of the right to use immovable property on a timeshare basis.

The Regulations:

- implement the Directive and replace entirely the current regime in the UK by repealing the Timeshare Act 1992 and revoking the Timeshare Regulations 1997.  Ancillary regulations and orders such as the Timeshare (Repayment of Credit on Cancellation) Order 1992 will fall when the Act and the regulations are removed

- cover timeshare, long term holiday product, resale and exchange contracts (regulated contracts), although some arrangements are excluded[/li][/list]

- make provisions relating to the advertising of regulated contracts

- require important key information to be provided in advance of a contract being agreed and in a standardised form

- make provisions relating to the form and content of the regulated contract

- make provisions relating to the language of the regulated contract and the pre-contractual information

- provide a consumer with a right to withdraw from a regulated contract within a standard 14 day withdrawal period, and the additional right to withdraw from a long-term holiday product contract when payment of the second and subsequent instalments become due

- ban any payment in advance of the completion of the withdrawal period of the regulated contract

- set out provisions for payment for a long-term holiday product contract by way of yearly instalments

- provide for the automatic cancellation of a related credit agreement and other ancillary contracts

- include sanctions and, where appropriate, criminal offences for non compliance. The Regulations also provide for contractual remedies for consumers

- set the penalty for offences to a fine not exceeding the statutory maximum

This guidance will next be revised on an ongoing basis, but in any case no later than 30 July 2011.

Scope of the Regulations

1.
Q: Will the Regulations replace the Timeshare Act 1992 and the Timeshare Regulations 1997?
A: Yes. The Regulations will replace entirely the current regime in the UK by repealing the Timeshare Act and revoking the Timeshare Regulations 1997.

2.
Q: When do the Regulations come into force?
A: The Regulations come into force on 23 February 2011

3.
Q: Will the Regulations apply to contracts entered into before 23 February 2011?
A: No. The provisions of the Timeshare Act 1992 and the Timeshare Regulations 1997 will continue to apply to contracts entered into before 23 February 2011.  The new Regulations will apply to contracts entered into on or after 23 February 2011.

4.
Q: What types of contracts are covered by the Regulations?
A: The Regulations apply to the sale and marketing of the following types of contract:

-'Timeshare contract' - a contract of a duration of more than one year under which a consumer, for consideration, acquires the right to use one or more overnight accommodation for more than one period of occupation.  This includes, for example, timeshare rights in accommodation within a pool of accommodation or which allow use of accommodation within a pool of accommodation

- 'Long term holiday product contract' - a contract of a duration of more than one year under which a consumer, for consideration, acquires primarily the right to obtain discounts or other benefits in respect of accommodation in isolation or together with travel or other services

- 'Resale contract' - a contract under which a trader, for consideration, assists a consumer to sell or buy a timeshare or a long term holiday product

- 'Exchange contract' - a contract under which a consumer, for consideration, joins an exchange system which allows that consumer access to overnight accommodation or other services, in exchange for granting to other persons temporary access to the benefits of the rights deriving from that consumer's timeshare contract.

5.
Q: Will the Regulations apply to Business to Business type contracts?
A: No. The Regulations only apply to contracts between a 'trader' and 'consumer'. The limited coverage of the Timeshare Act and the Timeshare Regulations 1997 in respect of business to business transactions has not been retained.

A "trader" is defined as a person acting for the purposes relating to that person's trade, business, craft or profession, or, anyone acting in the name of or on behalf of such a person.  In practice, this means that contracts and the sales practices related to the sale of contracts remain subject to the regulations whether they are sold direct by the contracting party or by an agent for the contracting party.

A "consumer" is defined as an individual who is not acting for the purposes of a trade, business, craft or profession.

6.
Q:  Why do the regulations refer to the EEA or the European Economic Area?
A:  The Directive falls within the European Economic Area agreement which means that the Directive also applies to the non EU members of the EEA (Iceland, Liechtenstein and Norway).

7.
Q: Will the UK Regulations apply where the contract is governed by the law of another State which is a member of the European Economic Area?
A:  The Regulations will not apply where the contract is governed by the law of another EEA state unless it is to any extent also subject to UK law.

As with other contracts, and as is the case now, the law which applies in any individual case with regard to contracts agreed within the European Economic Area will be determined on a case by case basis with reference to the contract and, where necessary, the relevant European treaties on applicable law.

8.
Q: Can the consumer waive their rights under the Regulations by agreeing that the contract should be governed by the law of a third country (i.e. a non EEA State)?
A: No - even where the applicable law is the law of a third country (i.e. a non EEA state) the Regulations will apply where there is a sufficient link with the EEA.

In the case of immovable property, the Regulations will apply if the property is in an EEA state and the UK has jurisdiction in relation to the contract.

In other cases (i.e. where it is not immovable property) the regulations will apply if the contract falls within the scope and the trader carries on commercial or professional activities in the UK or directed at the UK.

9.
Q: Are any types of contract specifically excluded from the Regulations?
A: Yes. A list of excluded arrangements is included at Regulation 6 and includes:

-  multiple reservations of accommodation to the extent that they do not imply rights and obligations beyond those arising from the separate reservations

- this ensures , for example, that agreements by hotels to allow a customer to book a room or rooms in a hotel for a series of stays under their usual terms and conditions (even when they are booked more than a year in advance) are not subject to these regulations

- a lease agreement which provides for a single continuous period of occupation

- a loyalty scheme, operating within a group of hotels, which provides consumers with discounts on future stays at hotels within the group where--no consideration is payable in respect of membership of the scheme, and consideration payable by consumers for accommodation at hotels within the group is not payable primarily for the purpose of obtaining discounts or other benefits in respect of accommodation; and

This would cover normal loyalty schemes and clarifies that they should not be considered to fall within the definition of a long-term holiday product contract.

- a contract of insurance

Our view is that these types of product, even where some right to use accommodation is offered alongside the investment aspects, are not covered by the Directive.  However effecting and carrying out a contract of insurance is a regulated activity for the purposes of the Financial Services and Markets Act 2000 so these products are subject to that regulation.
 

10.
Q: Are contracts for 'package' holidays covered by the Regulations?
A: If a contract which is covered by the Regulations also happens to fall with the definition of a 'package' within the package travel regime, then both sets of regulations apply.

11.
Q: Do the Regulations cover timeshare accommodation in movable property such as boats?
A: The definition of 'timeshare' covers timeshare in any overnight accommodation. This would include boats or caravans etc.

Advertising and Marketing


12.
Q: Is failure to comply with Regulation 14 (Advertising and Marketing) a criminal offence?
A:  In our view, failure to comply with the substantive requirements in relation to marketing and sales (Regulations 14(1) and (2)) would give rise to an offence under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) of misleading 'omission' or 'action'.  Regulation 6(3) of the CPRs specifically provides that information required by Community obligations in relation to commercial communications is material and therefore we consider that the CPR offences would apply.

The Directive and the regulations include detailed and specific provisions regarding marketing and sales events.  This is because marketing and sales events can provide rogue traders with an ideal opportunity to mislead and pressure consumers into entering contracts which they may subsequently regret. Given the long term and often high cost nature of the contracts involved it is essential that consumers are protected against this type of behaviour.  The provisions aim to ensure the consumer fully understands the nature of the product being advertised and we think that a failure by the trader to comply with regulations 14(1) or (2) would be likely to impact on the consumer's behaviour and would therefore give rise to an offence under the CPRs.

Guidance on the CPRS is available at:

http://www.bis.gov.uk/policies/consumer-issues/buying-and-selling/consumer-protection-regulations


Failure to comply with Regulation 14(3) (ban on selling or marketing timeshare or long-term holiday product contracts as investments) is an offence under these Regulations.  We think in many cases there will also be an offence under the CPRs for breach of this requirement.  However, as it might not be absolutely clear in a  particular case that the timeshare is not an investment we think that relying on the CPRs would place an unnecessary burden on enforcers - i.e. they would need to show that the timeshare could not be an investment.  We have sought to remove any doubt about whether or not an offence has been committed.
 
13.
Q: Does the 'trader' for the purposes of the advertising and marketing rules in Regulation 14 include any party involved only in the publication or dissemination of the advertisement. For example a newspaper or magazine carrying the advertisement or a person distributing leaflets?
A: There is no offence specified in the Regulations relating to the requirements of Regulations 14(1) and (2) because we consider not meeting those requirements would be covered by offences under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).

The question of whether a person distributing leaflets has committed an offence will depend on whether they are viewed as a trader carrying out the relevant commercial practice.  This will depend on the circumstances of the case.

For publishers, the relevant offence in the CPRs contains the "Innocent publication of advertisement defence" at CPRs Regulation 18.

There is an offence specified in the Regulations in relation to the ban on marketing as an investment in Regulation 14(3).  This offence also has the a defence for "innocent publication".

Pre-contractual information

14.
Q:  What information do I have to provide to the consumer before they enter into a contract?
A:  You must provide all of the key information as set out in the relevant standard information form for the type of contracts you are selling.  All of the information in parts 1 and 2 of the form must be provided on the form, which must not be changed.  All of the information listed in part 3 of the form can either be provided on the form, or separately (for example, in a brochure or in the contract).  If separately, part 3 of the form must indicate where that information can be obtained.  The information must be provided in good time before any contracts are agreed.

If you are holding a promotion or sales event, for example, giving a presentation, the information must also be available to consumers for the duration of that event.

15.
Q: Regulation 12 requires that the trader provide the consumer with the pre-contractual information 'in good time' before entering into the contract. What constitutes 'in good time'?
A: The phrase "in good time" reflects the wording of the directive.  In our view this means that the consumer should have adequate opportunity to be able to familiarise themselves with the information so that a decision to purchase may be properly informed.  However, what is required may depend on the individual circumstances of a situation.  We think the seller will need to exercise some judgement in individual cases, taking into account, for example, any obvious characteristics of a particular consumer which may mean that it would be appropriate to allow more time than usual.
 
16.
Q: Do I have to hold stocks of all my sales materials and contract in all of the official languages of the EEA?
A: No. Businesses are not required to hold stocks of the precontractual information and contracts in all languages, just those languages of the consumers with whom they choose to trade.

The language requirements reflect the requirements of the Directive.  We would not, in any case, wish to diminish the right of consumers to be provided with important information and contracts in a language with which they are fully familiar.  This is the reason why the consumer has the choice of language.

We believe most businesses will have a very good idea, from experience, of the languages in which it would be wise hold the information so that they are ready to make a sale when the occasion arises.

17.
Q: Is the trader under any obligation to make the consumer aware of the right to have the pre-contractual information provided in a language of the consumer's choice?
A: Yes. The trader must give the consumer the opportunity to nominate one of the possible languages they are entitled to, that is either one of the official languages of an EEA state in which the consumer normally resides, or the language of an EEA State of which the consumer is a national.

18.
Q: Would a trader showing the consumer the pre-contractual information on a computer screen be likely to meet the requirement of Regulation 12 for the pre-contractual information to be given 'in writing'.

A: No. We consider that "in writing" is construed broadly to cover information held electronically where it is capable of being reproduced in a legible form.  We do not consider that displaying information on a computer screen during a consultation or presentation would comply with Regulation 12.  In particular 12(1)(a) requires the trader to give the consumer the key information.  Displaying information is not giving or providing information in writing.  Providing the information in a physical form which the consumer can take away with them or in electronic form which they may store on their own equipment and recall unchanged for future reference would, in our view, be to "give" the consumer that information.

Traders should bear in mind the purpose of the regulations is that the consumer should be provided with the information in good time before a contract is concluded or agreed so that they may have ample opportunity to read and understand it.

19.
Q: Can the trader charge for the provision of pre-contractual information?
A: No. The pre-contractual information must be provided free of charge.

20.
Q: Is failure to comply with Regulation 12 (Key information) a criminal offence?
A: In our view failure to provide the information required or providing false or misleading information would already be an offence (of either misleading action or misleading omission) under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).

The relevant offences in the CPR apply where the commercial practice would be likely to impact on the transactional decision of a consumer - e.g. leads them to enter into a contract they would not otherwise have entered into.  The Directive is very specific on the pre-contractual information that must be provided. Failure to provide this key information or failure to provide it in the language required, or providing false information on these matters is, in our view, likely to impact on the consumer's transactional decision.  For example, information about the consumer's rights to use the timeshare, the price and any additional costs, and the right to withdraw, are key information that the consumer needs in order to make an informed decision when entering a contract or when deciding whether or not to withdraw from it.  So although it is not an offence on the face of these regulations, failure to comply with Regulations 12(1)-(4) and (6)-(8) would, in our view, give rise to an offence under the CPRs.
 
However, failure to comply with Regulation 12(5) - not providing the consumer with the pre-contractual information in the set format etc. - would be an offence under the Regulations. In our view, failure to comply with these specific requirements with regard to format are unlikely to fall within the scope of offences under the CPRs since it doesn't necessarily follow that information that doesn't comply with the format requirements will be unintelligible or ambiguous and therefore affect the transactional decision.

21.
Q: Where the consumer enters into a timeshare agreement, and also acquires exchange rights, is the trader required to provide the consumer with Schedule 1 (Timeshare contracts) key information only or Schedule 4 (Exchange contracts) information as well?
A: If both a timeshare contract and an exchange contract are being sold then both sets of key information must be provided.  Similarly, if a single contract happens to fall within both definitions, then all of the information in schedules 1 and 4 must be provided.

Contractual information

22.
Q:  What information do I need to include in the contract?

A:  You must include all of the key information as part of the contract and you must include the identity place of residence and signature of each of the parties and the date and place of where the contract is agreed (concluded).  When you provide the consumer with their copy or copies of the contract you must also provide them with standard withdrawal form

23.
Q:  What if the information has changed since I gave it to the consumer as pre-contractual information?

A:  Any changes to the key information which appear in the contract must be expressly agreed by the consumer.  Proof that a change has been expressly agreed by the consumer might, for example, be their separate signature next to the relevant information, or perhaps a separately signed addition to the contract explaining clearly the changes.

No other changes are permitted except those which result from unusual, unforeseeable circumstances which are beyond the control of the trader, the consequences of which could not have been avoided even if all due care had been exercised.  This is a tough test and is only likely to be met in very exceptional situations.  Traders should therefore take care that their contracts reflect clearly the key pre-contractual information they have provided to the consumer before agreeing the contract.

24.
Q: Is failure to comply with Regulation 15 (Contract formalities) a criminal offence?

A: Yes. Failure to comply with the formalities in Regulation 15 or to change the contract in a way which is not permitted under regulation 15 would be an offence under the Regulations.

25.
Q: Is failure to comply with Regulation 16 (Obligations of Trader on entering a contract) a criminal offence?

A: Yes. Failure to draw the consumer's attention to the relevant parts of the contract, to obtain the consumers signature in relation to those parts of the contract, or to provide a copy of the contract at the time of its conclusion (agreement) would be an offence under the Regulations

26.
Q: Is failure to comply with Regulation 17 (Language of the Contract) a criminal offence?

A: In our view, failure to comply with the substantive requirements in relation to regulations 17(1) to (3) would give rise to an offence under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) of misleading 'omission' or 'action'.  A failure to provide the contract in a language the consumer understands is likely to be considered misleading information under the CPRs in that the language would be unintelligible to the consumer.

In our view it is unlikely that the CPRs would also cover the requirement to provide the contract in English in Regulation 17(4). In such cases the contract would be unenforceable against the consumer.

27.
Q: Is failure to comply with Regulation 18 (Translation of contract into the language of a member State in which immovable property rights in relation to which a timeshare contract is concerned is situated) a criminal offence?

A: Yes. Failure to comply with Regulation 18 would be an offence under the Regulations

Right to withdraw

28.
Q: Do I have to give the consumer a right to withdraw from the contract?

A:  Yes, the consumer is entitled to a period of 14 days after the date on which the parties agree the contract during which they may withdraw from the contract at no cost.

29.
Q: Does the consumer have to use the standard withdrawal form?

A:  No - the consumer must give written notice and that can be in the form of the standard withdrawal form but this is not obligatory.

30.
Q: When does the 14 day withdrawal period start?

A: The start of the withdrawal period is decided either by the point at which the contract is concluded (entered into) or when a copy of the concluded contract is received by the consumer, whichever is later.

31.
Q:  What does "conclusion of the contract" mean?

A: A contract is concluded when both parties have entered into it, or agreed to it and it becomes binding.  In most cases in this context it will be when both the consumer and the trader sign the contract.  Irrespective of being bound by a concluded contract, the Regulations provide separately that the consumer may withdraw from the contract during the withdrawal period.

32.
Q:  When does the withdrawal period end?

A:  This depends.  In usual circumstances it will end 14 days after the start date (where day 1 is the day after the start date).  References to "days" are to calendar days, not working days.

However, if the trader has failed to provide the standard withdrawal form with the contract then the period can be extended for up to 1 year and 14 days from the start date depending on the date on which the consumer receives the withdrawal form.  If the consumer receives the withdrawal form within a year from the start date the withdrawal period ends 14 days after that date.

If it transpires that the trader has failed to provide all of the relevant key information then the period can be extended for up to 3 months and 14 days from the start date.  If the consumer receives the missing information within 3 months from the start date the withdrawal period ends 14 days after that date.

33.
Q: What are the obligations on the trader with regard to the cancellation of a related credit agreement?

A: Where a consumer withdraws from a contract, any ancillary contracts, including related credit agreement are automatically cancelled.  If the trader is not also the creditor under the related credit agreement, the trader must, on receipt of the notice of withdrawal from the consumer, inform the creditor that the notice has been received without delay.

34.
Q: Where timeshare and exchange contracts are linked during the same sales process, does a subsequent withdrawal period apply after the withdrawal period applicable to the timeshare contract has expired?

A: No. The Regulations allow a single withdrawal period (that which applies to the timeshare contract) where an exchange contract is offered at the same time as a timeshare contract.

35.
Q: Will the consumer still have the opportunity to contact the trader before the withdrawal period has expired and ask for the contract to be varied in some way (for example to renegotiate the price, or to seek an alteration to the weeks of occupation)?

A: Once a contract is concluded, whether or not the consumer has the right in legislation to then withdraw from the contract for a period, it remains open to either party to seek to renegotiate the terms.  Nothing in these Regulations changes that.  The intention of the Directive and our Regulations is that the pre-contractual "key information" which must have been provided in good time before the conclusion of the contract forms a part of the contract at the point of its conclusion (the point at which both parties enter into the contract).  This information cannot be changed without the express permission of the consumer, or because changes are the result of unusual and unforeseeable circumstances beyond the trader's control the consequences of which could not have been avoided even if all due care had been exercised.

36.
Q:  If the consumer has used the services available under the contract before they decide to withdraw within the withdrawal period, or the extended withdrawal period can I charge them for services rendered?

A: No, the consumer is not liable for any costs in the event that they withdraw.  They should not have been asked to pay any costs related to the contract during the withdrawal period as this would amount to an offence (see question 32).  Services provided by the trader before the end of the withdrawal period are, in other words, provided at the trader's own risk.

Payment

37.
Q: When can I collect payment?

A:  Timeshare, Long-term Holiday Product and Exchange contracts:

You must wait until the end of the period during which the consumer is entitled to withdraw from the contract.  Normally, this will be 14 calendar days after the day the contract was agreed.   However the withdrawal period may be extended for reasons set out in the Regulations, i.e. for up to one year and 14 days where you have failed to provide the standard withdrawal form, or for up to 3 months and 14 days if you fail to provide the key information.  If in either case you provide the required form or key information within the relevant extended period the withdrawal period ends 14 days after the day on which you provide the relevant form or information.

A:  Resale contracts:

You must wait until the consumer has sold the timeshare or long-term holiday product in respect of which you have been providing resale services, or the contract is otherwise terminated.

38.
Q: Is failure to comply with Regulation 25 (Accepting payment in advance of the end of the withdrawal period) a criminal offence?

A: Yes. Failure to comply with Regulation 25 would be an offence under the Regulations.

In respect of timeshare, long-term holiday product and exchange contracts the trader is not permitted to accept any consideration in advance of the end of the withdrawal period.

In the case of resale contracts the trader may not accept any consideration in advance the sale of the consumer's timeshare or long-term holiday product, or until the resale contract is otherwise terminated.

"Consideration" is a wide term and is defined as including, but not exclusively, payments, guarantees, reservations of money on account and acknowledgment of debt.

"any consideration" would include consideration provided to a third party to be held for the trader.

39. The regulations allow for payment when a resale contract is "otherwise terminated".  What does this mean?

The conditions under which the contract may be terminated must be included in the contract (this is key information).  It is not unreasonable that the parties might agree, for example, that in the event that genuine attempts have been made to find a buyer for a timeshare but that no buyer has been found within a reasonable or specified period that they agree to terminate the contract.  Termination of the contract relieves all the parties of any obligation under the contract, including obligations for payment in the event that the contract had been fully performed (by the sale of the timeshare).  Of course it is possible that a resale contract may only have a defined time to run, irrespective of whether a sale results.  In that case the consumer should be in possession of pre-contractual information and a contract which explains what the charge for that contract is and will be able to judge for themselves whether it represents good value for money, given that a sale might not result by the time it runs out.  It would be for the trader to satisfy the consumer that they had made every effort to meet their obligations under the contract to show that it had been performed correctly.  If not, they will have breached the contract. In any case the trader is not permitted to take any consideration in respect of the contract before it is either completed by a sale or it is otherwise terminated.

40.
Q: Is failure to comply with Regulation 26 (Payment Schedule - Long Term Holiday Products) a criminal offence?

A: Yes. Failure to comply with Regulation 26 would be an offence under the Regulations

Enforcement

41.
Q:  Who can enforce these regulations?

A:  The regulations are enforced by Local Authority trading Standards officers.  The OFT also have some enforcement powers under the Enterprise Act 2002.

42.
Q: Is the obstruction of authorised officers a criminal offence?

A: Yes. Regulation 33 provides that the obstruction of authorised officers would be an offence under the Regulations.

43.
Q: What are the penalties in the event of a successful prosecution for non compliance with the Regulations?

A: The penalties for cases taken under the Regulations are a fine on summary conviction, currently up to £5,000, or an unlimited fine on conviction on indictment. This is in line with other sector-specific consumer protection legislation.

The penalties for cases taken under the Consumer Protection from Unfair Trading Regulations 2008, a fine on summary conviction, currently up to £5,000, or on conviction on indictment an unlimited fine or up to 2 years imprisonment.

44.
Q:  Regulation 34 makes provisions for Civil proceedings, what does it mean?

A:  Regulation 34 lists specific provisions in the regulations which places the duties on traders towards consumers or to a creditor in respect of a related credit agreement.  Contravention of these regulations may not only result in criminal prosecution where offences apply, but can give rise to proceedings for breach of statutory duty in the civil courts for damages.  Regulation 34(4) provides that a contravention of the obligations will be actionable accordingly as the person who may bring the action will differ depending on who the duty is owed to,


For further information or feedback about the guidance please contact:

Kevin Davis
Consumer and Competition Policy Directorate
Department for Business, Innovation and Skills
3rd Floor Vic 1
1 Victoria Street
London SW1H 0ET

Tel: 020 7215 0329
E-mail: kevin.davis@bis.gis.gov.uk

Boss Man


steve

Only 3 days to doomsday for the Scam Resale Companies and bogus holiday Clubs, Upfront Fees will be illegal. Now this will be interesting to see. :'(

Boss Man

Steve,

Do you honestly think the scam companies will take any notice ? They break the law anyway, they are not going to worry about another one. This is the problem with it. If they spent the time and effort they placed into deciding on this law, into educating the public as this site does, I'm sure it would be much more effective.


steve

Boss Man,

Educating the public is the key issue, the new directive is one step in the right direction, time and effort spent on this forum and promotion of this new directive may help the public to be more aware.
Your right Boss Man, scam companies will not take a blind bit of notice as you quite rightly pointed out.
The word SCAM is always being shouted out across this forum with the words "Never Pay Any Money Upfront", new directive new phrase "Never Pay Any Money Upfront its illegal" may well be more effective.

Katie

You cannot resell, don't pay any longer, they cannot take you to cort, they just wan't you to be affraid!! gr from The Netherlands

Re: Design Story vacation AN EX-EMPLOYEE OF VACATION DESIGN

Yes, my mouth fell open in astonishment when I was really all those (familiar) story read. In 1998 I went to Gran Canaria in order to work there as a hostess for Holland International.
After several years, Holland International, Arke and Fit flights taken over by the TUI group and so am I talking to the Time Share business came in contact.

TUI Group was 51% co-owner of Anfi, the most famous (Mafia) Time-Share Resort in Gran Canaria and we were supposed to work this well.
As is well known by now you'll really end up in a narrow sect, you are really brainwashed, every morning a meeting, training etc.etc. for as much money as possible from other people's pocket.
At Anfi I first came into contact with Joost, a time just verkopertje with a lot of fuss! Between us all the same things did not
Joost can not stand because comments and criticism, and certainly not women! Joost was mentioned known to sell well, partly due to his way of intimidating and belittle people were just afraid of him and dared not refuse to sign the contract, that was his strong point.
After many complaints Joost fired and then went to work at Palm Oasis (Maspalomas) and his German wife who was heavily pregnant was the third! She worked as a Time-Share receptionist, you know, those girls who welcome you before you a smooth talker linked. Since he's not very long endured and then left for DWVC, Designer Way Vacation Club (Time Linx), located at Green Beach Hotel Patalavaca, the Time Share business is one big clique, everybody knows everybody and everybody changes regularly of location.

When he was again uitgeboerd He then left to Arguineguin where he got some higher position, I think he Line Manager.
In any case he had a thing to tell, and he did too much. Meanwhile, I and many others with me, very dissatisfied with my job for the TUI Group and got out of necessity to work briefly for Design Vacations, cozy with Joost as my manager.

I have seen things that really could not bear the light of day, those who vanished, serious coke use, intimidation and even threats and blackmail.
I have 2 months but eventually persevered and got the one on the other days no longer went to work. I had the necessary wage credits but I have, in consultation with Fenja Damsma of the Dutch consulate, in addition, it is too dangerous, before you know you lie burned in the mountains! Chuck I do like Chris, he is wanted in Belgium due to defraud the infamous pyramid game, Gran Canaria has unfortunately no extradition treaty, so everyone can undisturbed.
Later I as an interpreter in court work and have tried the practices of this gang, using a court to address this is me not (yet) succeeded! Now I'm almost one year back in the Netherlands and'm still in touch with friends and acquaintances on Gran Canaria.

I had (fortunately) the right mentality, constantly felt guilty, but the big bosses of Time - Share let you constantly believe that what you do, no scam is.
During my work in court, I have collected very many things, my file is opened, but it is almost impossible here to do something. There are a number of people arrested for DV but suppose you do not have much of before, these people have so much money and power, while half of justice in Gran Canaria is corrupt, then there is very little to start.
Next week starts the same club again under a different name, so you can not compete against, so it goes that many years. They buy people, money is everything for sale on Gran Canaria. There are even reputable lawyers involved, can you imagine what a mess it is. If you see what people among such companies operate, then your fear, most of them are on the run and may never return to their homeland, so heavy criminal!
income, as long as there remains that image is never an end to these practices and these people can continue to do their thing, unfortunately it is no different I'm afraid.

The mastermind behind this whole organization is doing his job still happily in Playa del Ingles, so you do not do too much in front. As I said before, they just go merrily on, if necessary under a different name, that goes for years and nobody stops them.
If you were my reactions to the web log to put then did I also no problem, maybe read Chuck so bad, you never know what else comes out. Leave my name just to get away, seems sensible in this case, the rest you can just publish anything for me, it's true! Regards,

stuart500

Can anyone help me as to how this legislation might impact my situation?

In 1996 I  bought a timeshare at a resort in Scotland. It bought me a holiday certificate in a specific unit in the same week each year. As part of the sale I of course had to agree to being bound by the membership of the holiday club.

The resort has now advised me that there will be an AGM held later this year as the want to downsize the resort.

If agreed at the AGM the unit I am in will in effect be given back to the Founder Member and the holiday certificates cancelled. However, the proposal will also give the Founder Member the right to transfer my holiday certificate to a "Like for Like" option. I dont want another holiday certificate and feel I should not be able to be legally forced to enter a new contract for a replacement unit.

Even if I disagree the unit offered is "Like for Like" the Founder member would have the final say in this under the proposals offered.

This is blatantly unfair and gives them all the power as I would have no right to say no.

Can I legally refuse a new holiday certificate if the AGM votes in favour of these proposals? Or if forced into taking the new certificate, be able to cancel it under this legislation?

Any help much appreciated.

Norm de Plume

The Regulations are not retrospective.  Your position is governed by the old law.  The rest of it depends upon the terms of your contract of purchase and the Constitution of the Club.
If you have found the advice I have given useful and I have saved you some money, perhaps you would like to make a donation to the Prostate Cancer Charity, mentioning my name. (www.prostatecanceruk.org)

stuart500

Thanks Norm.

I appreciate that I became a member of the holiday club many years ago, but as my holiday certificate specifically mentions the week and unit bought, my thoughts were that any new holiday certificate in respect of the unit "offered" would in effect be a new contract between the Founder member and myself...and hence would be subject to the new legislation.

If the original unit no longer exists, the Founder member cannot fulfil their obligation to provide the unit and week bought. They are thus forcing me into a new contract which I dont want. This surely cannot be legal regardless of what is voted for at the AGM.

Does anyone have any previous experience of this situation?

Norm de Plume

What are you wanting to do?  If you merely want to get out of your timeshare, then you probably can use this as a reason.  If you are looking for compensation, the situation might be more difficult.
If you have found the advice I have given useful and I have saved you some money, perhaps you would like to make a donation to the Prostate Cancer Charity, mentioning my name. (www.prostatecanceruk.org)

stuart500

I am only looking to leave as I genuinely do not want any other unit.

On a point of principle though I find it scandalous that they can propose that other members can simply vote away my ownership rights to the property I purchased for a substantial sum. Rules of membership should not be allowed to go as far as that.

On a second point of principle it's also against the spirit of entering contracts in good faith that they are attempting to force me to enter a contract for basically any unit in the resort and at any time of year (they after all are reserving the right to the final say as to what is "like for like". So I'm basically going to have no say in what I'm given.

I wonder if these types of clauses in club constitutions can be deemed illegal by a court of law as being unfair trading? What other trader has the right to force a sale on someone and tell them what they are buying!!! Surely there is some consumer protection available.


Norm de Plume

If you have found the advice I have given useful and I have saved you some money, perhaps you would like to make a donation to the Prostate Cancer Charity, mentioning my name. (www.prostatecanceruk.org)

TimeShareRipOffWatch

Hi Norm

And it is a disgrace that access to justice, is so expensive and the Crooks and Fraudsters know that, so unless one can persuade the Prosecuting Authority in the Country where the scam is taking place, to actually take Criminal Action against the perpetrators of the frauds, then it is unlikely that ordinary working people will ever be able to afford to access the Civil Courts - as it now is in the UK, with the withdrawal, during the present Con-Dem Govt disgrace (2010-2014/15) and that of the previous Govt of the withdrawal of any Legal Aid Rights, to civil actions, virtually at all.

And to BossMan

I would love to join this TimeShareTalk Group and become a Member, but do not like to pay via Paypal, it's bad enough having to use our dodgy Banks, but still prefer to use either direct Bank payments or Credit Card - even though Credit Card protection is only applicable for purchases of £100 plus (Consumer Credit Act).

Thanks for the site anyway - enjoyed my readings of the Beverly Hills etc. Timeshare scams, same now at Palm Beach, so gloves on. I have emailed the Spanish Lawyer, with my questions. I have also posted my views on the manipulations of Voting Rights, which I believe Silverpoint do not have, except by their cosy little agreement with the various 4 Committees, all virtually composed of the same people!!!

Any chance of a link for the recent case which Silverpoint lost?

Thanks




Norm de Plume

These cases would normally be in the Small Claims Court (limit now £10,000) where court fees are low and lawyers' costs rarely awarded.
Email me your email address and I'll try and send you what I have on the Silverpoints case.
If you have found the advice I have given useful and I have saved you some money, perhaps you would like to make a donation to the Prostate Cancer Charity, mentioning my name. (www.prostatecanceruk.org)

Norm de Plume

If you have found the advice I have given useful and I have saved you some money, perhaps you would like to make a donation to the Prostate Cancer Charity, mentioning my name. (www.prostatecanceruk.org)

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