Timeshare Consumers Association

Timeshare in Boats
(Canal/Narrow Boats and Houseboats)

Many companies selling timeshare in   boats (canal/narrow boats or houseboats) promote the sale on the benefits of the exchange system – not to use the boat itself. This is very misleading.
The three independent canal boat operators in the UK are:-
    *     Canaltime Ltd
    *     Stratford Court Cruisers (now known as Ethos Narrowboats Ltd)
    *     Shakespeare Classic Line Ltd ("Narrow Boats at Barton Turns Marina" & "Houseboats at Barton Turns Marina") and Classic Cruisers, Bray.    See Here
Each company uses a range of "agents" to sell on their behalf.
Because timeshare in boats, especially in low season (blue) is not very popular for exchange – nobody likes ice breaking or walking alongside a dry canal – many salesmen tell lies to get consumers to purchase.
The purchase of timeshare in a boat is probably (see here) covered by the UK Timeshare Act 1992, (see here) and the 10 day voluntary code operated by credit card companies does apply - see : how to cancel
Purchasers who have been told lies may have to take legal action to get out of the contract   Telling substantive lies in order to obtain a signature on a purchase agreement is "misrepresentation".

Typical of the lies told:

PROMISES

What you were led to believe

REALITY

This is NOT timeshare. Timeshare in a boat is "timeshare" by dictionary definition - although it may not be covered by the timeshare law. But see here This is confirmed by RCI, the major timeshare exchange company. But see "cooling-off" period below.

Ownership will get exchanges anywhere in the world at any time of the year This is almost always not true, especially of smaller boats (4 berth) and lower season periods – white and blue. See Note 1 below. And certainly not true if the boat resort is not "Gold Crown" - see later.

RCI bonus weeks (often called "extra weeks" by the salesman) are available to use on an unlimited basis - to both owners and their friends Bonus weeks are not easy to get, and are certainly not available on an unlimited basis. Generally you would be lucky to get one or two a year.

The resort is "Gold Crown" - the highest quality rating in the RCI exchange system. Being "Gold Crown" is essential if you want a good choicve of good quality accomodation. Check with RCI - www.rci.com - as most canal boat resorts are not Gold Crown

A four berth boat could easily be exchanged for a six berth when you need it No! Not guaranteed.

If you don't use or exchange, you can make a profit by renting out the week. Perhaps if it is a peak season week, certainly not if it is a winter week - see Note 1 below

A "White" or "Blue" can easily be exchanged for a "Red" week. No! Not guaranteed

The purchase is a “good investment” or "won't lose value" creating the impression that you will, at the very least, get all your money back when you come to sell ALL timeshares collapses in price the instant it is bought and most owners are lucky to get 10% of what they originally paid – low season narrow boats have even worse devaluation. Many existing owners are finding it impossible to make a sale at any price.

Only two needed to drive the boat Some insurance companies require three able-bodied people on board a narrow boat.

The annual management fee is limited by the owners Seldom true as most canal boat operators fully control the fees. Some annual fees have recently rocketed to nearly double. See below under "Unfair Contract Terms"

The offer is only available if you sign on the day They say this to everyone, every day, to avoid you finding out that you can get exactly the same "benefits" for 1/5th the price.

The management fee is only payable when if use the accomodation. Managment fees are payable EVERY year (or every second yera if the ownership is bi-ennial) irrespective of whether the accomodation is used or not.

They claim to be part of a much larger organisation - perhaps even RCI (the major timeshare exchange organisation). Or they claim to have been in business for a great many years. Very unlikely to be true - check with Companies House

The annual management fee is £xxx Later you find out that this figure is exclusive of VAT, which has to be added and there may also be a "utilities" charge when you use the boat.

"You do have a cooling off period" or words to that effect Which you find out is not true (but see below) when you are get to read the terms and conditions after you have signed.

You are getting a "Special" price Yes, "special" as in "high". Anything over £2,000 is expensive - see the adverts in the national press or talk to our recommended resellers.

You will get most of your money back when you sell Utter rubbish - you would be lucky to get 1/5th of what you originally paid.

You can take your dog on-board Many operators do not allow dogs on-board

You are not given a "cooling-off" period of at least 14 days. They may be obliged to give you a cooling-off period if they, or their Trustees, are members of the trade body, OTE . (see How to cancel). And lawyers believe that the Timeshare Act 1992 should apply. See here and here

"We are approved by the DTI, Trading Standards etc." Neither the DTI nor Trading Standards have any form of relevant approval scheme.

"We are ABTA" or "ATOL" bonded. None of the canal boat operators are registered with ABTA or ATOL

. You may be denied the opportunity to read the full conditions attached to the Purchase Agreement, such as the "Rules of Occupation". There may be clauses in the Rules which are contrary to what you have been told.

Almost all of the above false statements are - as from 26 May 2008 - in breach of the Consumer Protcetions Regulations. See here

Note 1:
Points to bear in mind when buying into a winter week (RCI "blue" season)
Canalling in winter can be dismal:

Cold, wet (although boats have central heating) and short days limit cruising.
Perhaps ice breaking!
Canals are often closed for periods in winter (October - March) for maintenance. These weeks are called "non cruising weeks". See the British Waterways annual list of closures
But you might be planning on swapping your week with an exchange company.
Remember that exchange companies need to find someone to use your week if they are to keep their system functioning smoothly.
What do you think their prospects of finding someone to exchange if it's cold, wet and closed ? And the RCI Points valuation of winter weeks is one tenth the valuation of a peak summer week.
You may be limited to using only one exchange company - see exchange companies - which limits your choice and may cost you more than is necessary

Note 2:
Unfair Terms in Consumer Contract regulations.
Most canal boat operators have absolute control over the running of the "Club" where the rules are contained within "Rules of Occupation" or similar.
Many of these rules are unfairly balanced against consumers and would almost certainly be found to be in breach of the Unfair Terms in Consumer Contracts regulations administered by the Trading Standards.
If you consider that you have been told lies – to the extent that you would not have bought had you known the truth – then you have good grounds for having the contract canceled and all your money back. But you might have to go to court to achieve this.
TCA advice:

1.    Write to the marketing company saying that you are canceling the agreement on the grounds of misrepresentation. If you paid by credit card, then do this before the 10 day period expires. See how to cancel
2.    Totally ignore all demands from the marketing company - and do not speak to them on the 'phone
3.    Only if/when you get a letter on a solicitors letterhead or from a debt collector should you reply saying:

        you now know that you were told a number of lies in order to get your signature on the purchase agreement
        had you known the truth before you signed, you would not have signed
        their clients are welcome to take you court where you will tell the court all the lies that you were told

4.    When/if the solicitor etc. writes back asking for details of the misrepresentation, reply with a list of every item that you consider   relevant in your case
If you only find out about the lies some weeks or months after purchasing you may have to take action yourself against the marketing company to cancel the agreement and to recover everything that you have paid. You may also have a claim against your credit card company under the Consumer Credit Act if you paid more than £100 by credit card.
And you may be able to utilise your rights to cancel under the trade body Code of Ethics as the purchase agreement may include the trustee and/or RCI, who are members of the trade body. See here
Both the Department of Industry and the Office of Fair Trading can take action if a company systematically misrepresents their product - if you feel that you have been told lies then report the matter to your local Trading Standards officer.
TCA would like to hear from you if you have any examples of misrepresentation in respect of a boat purchase.
April 2006

PROMISES What you were led to believe	REALITY
This is NOT timeshare.	Timeshare in a boat is "timeshare" by dictionary definition - although it may not be covered by the timeshare law. But see here This is confirmed by RCI, the major timeshare exchange company. But see "cooling-off" period below.
Ownership will get exchanges anywhere in the world at any time of the year	This is almost always not true, especially of smaller boats (4 berth) and lower season periods – white and blue. See Note 1 below. And certainly not true if the boat resort is not "Gold Crown" - see later.
RCI bonus weeks (often called "extra weeks" by the salesman) are available to use on an unlimited basis - to both owners and their friends	Bonus weeks are not easy to get, and are certainly not available on an unlimited basis. Generally you would be lucky to get one or two a year.
The resort is "Gold Crown" - the highest quality rating in the RCI exchange system. Being "Gold Crown" is essential if you want a good choicve of good quality accomodation.	Check with RCI - www.rci.com - as most canal boat resorts are not Gold Crown
A four berth boat could easily be exchanged for a six berth when you need it	No! Not guaranteed.
If you don't use or exchange, you can make a profit by renting out the week.	Perhaps if it is a peak season week, certainly not if it is a winter week - see Note 1 below
A "White" or "Blue" can easily be exchanged for a "Red" week.	No! Not guaranteed
The purchase is a “good investment” or "won't lose value" creating the impression that you will, at the very least, get all your money back when you come to sell	ALL timeshares collapses in price the instant it is bought and most owners are lucky to get 10% of what they originally paid – low season narrow boats have even worse devaluation. Many existing owners are finding it impossible to make a sale at any price.
Only two needed to drive the boat	Some insurance companies require three able-bodied people on board a narrow boat.
The annual management fee is limited by the owners	Seldom true as most canal boat operators fully control the fees. Some annual fees have recently rocketed to nearly double. See below under "Unfair Contract Terms"
The offer is only available if you sign on the day	They say this to everyone, every day, to avoid you finding out that you can get exactly the same "benefits" for 1/5th the price.
The management fee is only payable when if use the accomodation.	Managment fees are payable EVERY year (or every second yera if the ownership is bi-ennial) irrespective of whether the accomodation is used or not.
They claim to be part of a much larger organisation - perhaps even RCI (the major timeshare exchange organisation). Or they claim to have been in business for a great many years.	Very unlikely to be true - check with Companies House
The annual management fee is £xxx	Later you find out that this figure is exclusive of VAT, which has to be added and there may also be a "utilities" charge when you use the boat.
"You do have a cooling off period" or words to that effect	Which you find out is not true (but see below) when you are get to read the terms and conditions after you have signed.
You are getting a "Special" price	Yes, "special" as in "high". Anything over £2,000 is expensive - see the adverts in the national press or talk to our recommended resellers.
You will get most of your money back when you sell	Utter rubbish - you would be lucky to get 1/5th of what you originally paid.
You can take your dog on-board	Many operators do not allow dogs on-board
You are not given a "cooling-off" period of at least 14 days.	They may be obliged to give you a cooling-off period if they, or their Trustees, are members of the trade body, OTE . (see How to cancel). And lawyers believe that the Timeshare Act 1992 should apply. See here and here
"We are approved by the DTI, Trading Standards etc."	Neither the DTI nor Trading Standards have any form of relevant approval scheme.
"We are ABTA" or "ATOL" bonded.	None of the canal boat operators are registered with ABTA or ATOL
.	You may be denied the opportunity to read the full conditions attached to the Purchase Agreement, such as the "Rules of Occupation". There may be clauses in the Rules which are contrary to what you have been told.