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Timeshare Consumers Association

You may have signed an agreement to buy a Timeshare or a Holiday Club membership and now regret signing and want to cancel.  Or you may have recognized that you are paying many times more than you should be. The following  guidance is a brief summary of your rights and gives practical advice on canceling and, possibly, getting your money back.

This information only refers to a purchase made in the European Union.

1.  What have you bought?

Timeshare or Holiday Club ?

It is often difficult to recognise whether you have bought into a timeshare or  into  a holiday/travel  club because salesmen try to avoid using the word "timeshare".

If your purchase agreement includes ALL of the following, then you have bought conventional timeshare:

• an apartment number or size (usually referred to a "T?" - "T0" being a studio, "T2" being a 2 bedroom)
• a week number or colour
• and the use is for three years or more

If your purchase agreement includes the following, then you have bought into a timeshare "points" system:

• number of points or number of weeks
• or an apartment size
• and the use is for three years or mores

If your purchase agreement is not one of the above then you have probably bought into a holiday or vacation club. We suggest that you read about Holiday Clubs and about cash back schemes before continuing  to read this page.

If in doubt about what you have bought, please complete our Help Form

If you have bought timeshare in a narrow boat (canal boat) then please also read about Canal Boats

2. Your rights

2a.  Purchase in UK

If you buy a timeshare in the UK you have the following statutory rights under the Timeshare Act 1992:

• minimum 14 day cooling off period
• no deposit may be taken during the cooling off period
• see full details under Timeshare Act 1992

But the following may not covered by the Timeshare Act 1992:

• timeshare in boats
• timeshare for a period of three years or less
• membership of a holiday or travel club
• sales between private individuals. But a resale bought from someone "in the course of business" is covered by the Act

2b.  Other rights:

Doorstep regulations

• If the sale took place away from business premises (i.e.. in  a hotel, leisure centre, golf club etc. or your own home) then you  have a 7 day cooling off period granted by the “Doorstep” Regulations if the invitation to the presentation was "unsolicited".   If so, you must be given written notice of this right (and a pro-forma cancellation)  - failure to give this notice renders the agreement null and void.   This right also applies  to consumers who are enticed off the street to a sales presentation on business premsies in all Spanish countries.    For more details Click here or Full text here

            Distance Selling regulations

• If the sale took place on the telephone you are entitled to a 7 working day cancellation period under the "Distance Selling" regulations. And, if you paid any money, it should be returned to you if you write (recorded delivery) to cancel.

Trade Body "Code of Ethics"

• The trade body, Organisation for Timeshare in Europe (OTE) require all their members (and agents of their members) to comply with a Code of Ethics which includes requirmentes to;
• Comply with all relevant laws
• Disclose in a prominent manner on the purchase agreement that the purchaser has a minimum of a 15 day cooling off period
• Conduct their busines "with integrity and propriety and in a manner that will uphold the credibility, postivie reputation and goodwill of the timneshare industry and the OTE"


Because many OTE members fail to disclose their membership, or trade under a differenet name than that registered with OTE, it is often impossible to establish whether or not a trader is a member of OTE.    However the three leading trustees are members as are RCI  so any purchase agreement involving a trustee and/or RCI would be covered by the OTE Code of Ethics.

Our advice is to therefore register your complaint with OTE in every case. If OTE admit that the complained of trader is a member then please conatct us for details of how to deal with OTE.
 

• If the sale took place on the internet or by telephone then you are probably covered by the Distance Selling regulations which provide a 7 working day cooling off period (day one being the day after the purcahse is agreed). Full text of these regulations is here.

2c.  Purchase in other EU countries (See full list)

If you are a UK citizen, or buy from a UK registered company, then you have the full protection of the UK Timeshare Act 1992.  This protection  includes "resales".

If you are NOT a UK citizen  you will  have the following statuary rights:

• minimum 10 day cooling off period
• no deposit during the cooling off period although some countries do allow deposits to be paid to a "third party". In Spain, if the seller does take a deposit within the cooling off period, the buyer can demand twice that sum back and the cooling off period is extended to three month
• to receive a range of specific information in your own language

But the some transactions may be excluded from these rights – specifically membership of holiday and travel clubs and timeshare for periods of three years or less. But the purchase of a "resale" for more than 3 years use is covered by the local timeshare law in most European countries. A list of applicable laws is here.

Some fraudsters will claim that you do not have a cooling off period - ignore them, they are wrong and are trying to intimidate you into not canceling.

In most EU states there is an equivalent of the "Doorstep" regulations - see above.

If you would like a copy of the TCA Fact Sheet on the OTE please contact us

2d.  Purchase in non-EU countries

Each non-EU country has different laws, but those seeking to join the  EU  generally comply with the law for  purchases in EU countries.  Ask TCA about any updated information.  Also see here.

2e.  Rights under contract

In addition to whatever rights of cancellation  that you  have under statue law, you may also be given some rights by the seller in the contract..  However  you should be absolutely certain that these rights are in writing and totally unambiguous.   If you have any doubt about the wording check with a solicitor (or with TCA).

2f.  Rights under membership of a trade body.

Where the seller is a member of the trade body - OTE - they are required to give a minimum 10 day cooling off period and to disclose this "in full in the Purchase Agreement in a reasonably prominent manner".  Many OTE members ignore these requirements and you should contact us if you believe that the seller has breached this OTE Code of Ethics.

3.  How to cancel

3a.  Within a cooling off period

Day 1 is the day that you signed.

A letter of cancellation must be posted not later than midnight of the last day of the cooling off period.  All cooling off periods are measured in calendar days (not working days)

It is ESSENTIAL that you send a RECORDED DELIVERY  (INTERNATIONAL RECORDED DELIVERY if the purchase took place outside the UK) letter to the seller:

• Address the letter to the company (or business) that is shown in the Agreement
• Head the letter with the date: date of the Agreement and the Agreement number.
• Say “ We hereby cancel the above numbered contract [and demand the return of ALL the money taken within 14 days]”  You could also add "or else we will get our card company to calw back the payment from you" - which is a strong incentive on he trader to return all the money.
• Do not say anything else. You do not need to give a reason for canceling.
• Or, use the pro-forma cancellation which should have been provided under the Timeshare Act 1992

If two people signed the original Agreement, then the same two must sign the cancellation. Keep a spare copy of the letter – see later.

3b.  Outside a cooling off period (or if none is provided)

In law, you may not have a right to cancel an agreement after the end of a cooling off period  (if a cooling off period existed) .   The seller may be entitled to take you to court to force you to complete the contract.

The main defences to a court action are:

• the contract is invalid in law. You will need to show the Agreement to a solicitor to establish whether the contract is valid or not
• you were given information which was false and which, if you had known the truth, you would not have signed the agreement – “misrepresentation”. But there are often cases when you do not find out until after the end of a cooling off period that you were lied to get you to sign the agreement.

If you do decide to cancel, and believe that you were told lies in order to get you to sign, then say that the reason for cancellation is due to "gross misrepresentation".

It is common for a seller to threaten legal action if you cancel outside a cooling off period.  But TCA have no knowledge of any action being taken by non-UK based companies and of very few actions having been taken by UK based companies against purchasers who canceled outside a cooling off period.

TCA advice is to totally ignore any correspondence from the seller – and certainly do not talk to them on the telephone – and only seek legal advice should you receive correspondence on a lawyers (solicitors) or debt collectors letterhead.

It is a good idea to make comprehensive notes of everything that you were told at the presentation in case you need to justify your claim of misrepresentation.

If you bought from an OTE member who did not provide (or disclose) a 10 day cooling off period, then please contact us.

4.  Getting your money back

4a.  Under the credit card companies voluntary "claw back" code

Irrespective of your statutory rights of cancellation, credit card companies operating VISA or Mastercard  will “claw back” your deposit in the following circumstances:

• if you signed an agreement to buy a timeshare or holiday or travel club membership – in any country
• and you paid by a personal credit card (but not by debit or charge card) issued in the UK
• and you can provide evidence of sending a written cancellation within 10 days of signing the agreement. (You are recommended to make a demand for a full refund from the seller before contacting your credit card company)

Write to your credit card issuer,  briefly explaining the facts, enclosing

• a copy (not original) of the Purchase Agreement
• a copy of the cancellation letter and
• a copy of the proof of posting of the cancellation letter

asking them to “claw back” the money paid.

Some credit card companies/banks are more helpful than others. Some are especially unhelpful. If your credit card company denies responsibility, tell them that they have an obligation to claw back and, if they fail to do so, please tell us.

PERSISTENCE   may be needed!       People who refuse to take "No" for an answer often succeed at the second or third attempt. Your local Citizens Advice Bureau may be able to help you write the claim letter.

BUT please remember that recovering your money does not "get you off the contract" and the seller may have the right to take you to court - see item 3.  "How to Cancel" above.

A more comprehensive explanation of the Consumer Credit Act 1974 is here.

4b.  Under the Consumer Credit Act 1974

If you have paid the full amount on the agreement, and paid all or part (more than £100) by personal  credit card or loan, then you  may have rights under Section 75 the Consumer Credit Act 1974.  Full details are here

To obtain a refund you will need to prove:

• What you bought
• That you did not get it

If you bought into a holiday or travel Club you will have to make a number of attempts to get the holidays (or the promised  low cost travel) – perhaps over a period  of a year or two – before you could make a claim.   Keep as much written evidence as possible of these attempts.

If you were provided with a cash back promise then:

• You must carry out all the procedures required by the cash back scheme exactly as they require – including registering and claiming within the time scales and completing the forms exactly as the purchase agreement.
• please read How to claim and you should complete the TCA cash back questionnaire.

If you do not receive the necessary documentation in order to register for or claim the cash back, then you should claim under the Consumer Credit Act for all the money paid.

If you do not get the promised money back from the cash back operator then you should claim under the Section 75 of the  Consumer Credit Act  - if you have completed the TCA questionnaire then ask TCA to give you information on other people who were also made the same promises..

A major problem is proving what you bought – written contracts are often vague and unreliable. If you try to rely on the verbal promises made before you signed, you might find the credit card company refusing to help.   In these circumstances you may chose to go to the Financial Ombudsman – the card company is obliged to tell you how to do this (there is no cost).

If a credit card company refuses to accept a claim under Section 75 on the grounds that the transaction took place outside the UK,   report this to the Office of Fair Trading, London.

4c.  From the seller

Your chances of getting any money back form the seller are remote. But, if you can show that they broke a statute law, for example by taking a deposit when that is unlawful,  then you might be able to persuade them to pay up.
 

4d. Under the Mastercard Regulations (Reason Code 486).

If you have written, by recorded delivery,   to cancel a purchase under a statute law (ie. Distance Selling regulations; Doorstep regulations etc.)  then Mastercard banks will, after one month, arrange for a full refund of any money paid by a Mastercard credit card if the trader has failed to make a full refund.  You should ensure that you demand a refund from the trader in your letter of cancellation.
 

5. Warnings

Some sellers may claim that the contract is non cancelable when it really is cancelable.

If the salesman tells you that you have a longer period of cancellation than  10 days (or 14 under UK law)  for a timeshare purchase , do not believe him unless this extended period is clearly given to you in writing.     Do not be distracted by the phrase “next payment date” or similar – this has nothing to do with the cancellation period

6. General advice

Never pay any money to anyone – except a solicitor – to help you with any of the above problems..

If you have canceled, do NOT talk or correspond with the operator (marketing company) - you could weaken you position.

If the salesman pesters or harasses you on the telephone when you have canceled, then report the matter to the police as harassment.

If it is too late to cancel, or you have not paid by credit card,  then consider negotiating with the operator for a reduced payment for a reduced  service – perhaps foregoing a cash back scheme.

If you do make further payments, ensure that these are by credit card to provide you with added security under the Consumer Credit Act.

If you need help from a solicitor click here for a list. If you are concerned about the cost of using solicitors, check whether your home insurance policy provides funds – many do.

7.   Reporting to the relevant enforcement authorities

If you consider that you have been misled into a purchase then one of the government enforcement authorities may be able to help you.

In the UK, trading standards officers are responsible for traders complying with a number of consumer laws including the Timeshare Act, the Advertising Regulations (which also cover “oral” advertising), the “Doorstep” Regulations etc..  Trading standards offices can also accept complaints about purchases made in any EU country - for handling by the Office of Fair Trading.

The UK office of the European Consumer Centres may be able to help resolve a problem. Their website is www.ukecc.net and you can send them a message off their website.

The Office of Fair Trading are collecting information about businesse which cheat consumers. Details are here.

You should write to or telephone  your local trading standards office (the address will usually be under your Local Authority) explaining what happened and why you think a law may have been broken.  The local trading standards officer will contact his counterpart in the area of the trader concerned if the trader is based outside his area.

If the Trading Standards officer considers that the police should be involved then he can advise you how  to make a report to the police. You can report what you consider to be a fraud, carried out anywhere in Europe, to your local Fraud Squad.

8.  Finally

If you have read all the way down to here and are still not sure what to do about canceling, please complete our Help Form - we will try to give you  helpful, practical, advice within a matter of hours.