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Site updated:

8 February 2012

Timeshare and holiday clubs

This information applies to England, Wales, Scotland and Northern Ireland

What are timeshares and holiday clubs

Timeshares

When you buy a timeshare, you buy the right to use holiday accommodation for a set amount of time each year. The accommodation will usually be part of a resort with other timeshare accommodation and communal facilities, but you can also get timeshares in, for example, caravans and canal boats. How you pay for the timeshare will vary, but usually you pay a one-off lump sum, and annual maintenance charges.

There are special laws to protect your rights when you buy a timeshare. A timeshare agreement will be protected if the agreement:

lasts for at least one year, or can be renewed or extended to last for at least a year and
gives you the right to use overnight accommodation (which could be in a caravan or on a boat) for more than one night, and
was made in a European Economic Area (EEA) country, and
was made either with a company or with an individual during the course of their business. Agreements made with individuals on a private basis are not covered.

Timeshare agreements which do not fall within all of these categories, are not protected by timeshare laws.

Holiday clubs

When you buy membership of a holiday club, the holiday club usually promises to give you the opportunity to buy cheaper holidays over a long period of time. These could either be in a particular resort or in different locations. The way you pay for the holiday club membership will vary, but usually you pay a fee to become a member and then an annual subscription.

Holiday clubs are different to timeshares because you are not buying the right to stay in a specific property for a set period of time each year. However, holiday club agreements lasting for at least a year and made on or after 23 February 2011 are protected by the same laws that cover timeshares.

Sales pressure to buy timeshares and holiday clubs

Some timeshare and holiday club sellers use high pressure selling techniques to get you to sign an agreement. Examples of these are:

inviting you to long sales presentations where you are put under pressure to sign an agreement before leaving. Sometimes partners are separated so that they do not have the opportunity to discuss anything
taking you to a distant location with no means of getting back unless you sign the contract
offering you a special discount, but only if you sign up straight away
offering you free travel or accommodation, or some other kind of prize in return for going to a presentation. These prizes often turn out to be bogus. You may be told that the prize is 'out of stock', or find that it is worth less than you were promised, or that you have to pay for extras, such as flights, in order to claim your prize.

If you find yourself in one of these situations, the following advice could help you avoid making a decision that you later regret:

don't sign anything, no matter how much you're pressurized, unless you're sure it's what you really want
don't sign anything you don't understand
don't be embarrassed to walk out of the presentation
always think through your decision, and say you'll come back in a few days time if you're not really sure
check that you have the right to cancel the agreement, and that this is written down
check that everything is in writing that was promised at the presentation
get independent advice.

It is a criminal offence for a trader to use these high pressure selling techniques and in England and Wales, you could report them to Consumer Direct on 0845 4040 0506.

In Scotland you could complain about the trader to your local Trading Standards department. To find your nearest office, go to: www.tradingstandards.gov.uk.

In Northern Ireland, you could report them to the Consumerline on: 0300 123 6262.

For more information about cancelling a timeshare or holiday club agreement, see under heading Cancelling a timeshare or holiday club agreement.

If you want to complain about how you were sold a timeshare, you should talk to an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by e-Mail, click on nearest CAB.

Buying a timeshare or holiday club membership

If your timeshare or holiday club agreement is protected by timeshare laws you must be provided with certain information in writing. To check whether your agreement is protected by timeshare laws, see under heading What are timeshares and holiday clubs. This includes information about:

the seller's identity and legal status
how long the agreement will last
information about your legal rights
information about all costs that you will have to pay, such as annual fees
if it is a timeshare agreement, a description of the property and its location and details of all services and facilities available, together with information about extra costs
whether you can join an exchange or resale scheme and any costs involved
if it is a timeshare agreement, the price of the timeshare and an estimate of the charges for maintenance and repairs, and the management of the development
information about your cancellation rights.

For more information about what written information you are entitled to when you sign an agreement protected by timeshare laws, you should talk to an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

If you sign an agreement protected by timeshare laws, you will be able to cancel the agreement for any reason during a cooling-off period - see under heading Cancelling a timeshare or holiday club agreement.

If you buy a timeshare which is not protected by the timeshare laws, or if you buy membership of a holiday club, you will not have these rights.

Cancelling a timeshare or holiday club agreement

Whether or not you can cancel a timeshare or holiday club agreement after signing, will depend on whether the agreement is protected by the timeshare laws. To check whether your agreement is protected by the timeshare laws, see under heading What are timeshares and holiday clubs.

The agreement is protected by timeshare law

If you have signed a timeshare or holiday club agreement which is protected by the timeshare laws, you will have the right to a cooling-off period during which you can cancel the agreement for any reason without having to pay a cancellation fee. The cooling-off period will be 14 calendar days. You must cancel in writing, using either the cancellation form provided, or a letter or email.

If you were not given certain written information when you signed the agreement (see under heading Buying a timeshare or holiday club membership), or were not given a cancellation form, you may have a much longer period of time to cancel the agreement.

Timeshare or holiday club sellers in the UK and EEA must tell you about the cooling-off period when you sign the agreement. If they do not, they are breaking the law and the agreement is unenforceable against you. The law also says you must not be asked to pay any money during this cooling-off period.

After the cooling-off period, you can cancel the agreement if the terms of the agreement allow for this. If it is a holiday club agreement, all payments due under the agreement must be divided into equal annual instalments and you can cancel the agreement after the first year provided that you do so within 14 days of receiving a request for your annual membership payment. You will not be liable for any cancellation charge.

If you agreed to pay by credit, the credit agreement will automatically be cancelled if you cancel the timeshare or holiday club agreement within the 14 day cancellation period.

If you are not entitled to a cooling-off period under the timeshare laws and you used your credit card to buy the timeshare, your credit card company might agree to get the money back for you, but only if they have signed up to a voluntary code of practice. In these circumstances, it is essential that you write to both the timeshare seller and the credit company notifying them that you wish to cancel the agreement, within 10 days of signing the timeshare agreement. You should check whether your credit card company offers this type of protection.

For more information about getting your money back from a credit card company, see under heading Faulty goods or services on credit in Credit.

The rules about cancelling a timeshare agreement can be complicated. If you want to cancel a timeshare agreement, you should talk to an experienced adviser, for example at a Citizens Advice Bureau. To find details of your nearest CAB, including those that can give advice by e-mail, click on nearest CAB.

Selling a timeshare or holiday club

It can be difficult to sell a timeshare and the resale price is often much lower than the price you paid for it. Timeshare resale organisations may be able to help. You should think about asking several timeshare resale organisations to value your timeshare to get an idea about how much it is worth.

Before signing an agreement, check thoroughly that the terms and conditions offered by the organisation are suitable for your needs. For example, some timeshare resale organisations do not deal with timeshares which work on a points scheme and some may ask you to pay a fee up front. If an organisation is a member of a trade association, this may give you extra protection as it will be required to follow a code of practice.

If you already own a timeshare, a seller may try to persuade you to buy a better one, on the understanding that they will sell your existing timeshare. You should be very careful about accepting this type of offer as you may find that your existing timeshare is never sold, but you are still committed to buying the second timeshare. This is known as the 'buy-sell con'.

If you sign a timeshare or holiday club resale agreement on or after 23 February 2011, you are protected by timeshare laws, which means that you are entitled to be given certain information in writing and you have a 14 day cooling-off period in which to cancel the agreement for any reason without charge. From this date it is also against the law for anyone to ask you for money before the sale takes place or the agreement otherwise ends.

If you are thinking of selling your timeshare or holiday club, you should talk to an experienced adviser, for example at a Citizens Advice Bureau. To search for details of your nearest CAB, including details of those that can give e-mail advice, click on nearest CAB.

Exchanging a timeshare

If you want to exchange your timeshare, a timeshare exchange organisation may be able to help. Often, the timeshare exchange organisation will charge you an annual membership fee and a fee whenever an exchange is made.

You can get details of timeshare exchange organisations from the Resort Development Organisation (RDO) – see under heading Organisations that can help with timeshares or holiday clubs.

If you sign a timeshare exchange agreement on or after 23 February 2011, you are protected by timeshare laws which means that you are entitled to be given certain information in writing and you have a 14 day cooling-off period in which to cancel the agreement. You cannot be asked to make any payment during the cooling-off period.

Organisations that can help with timeshares or holiday clubs

TATOC

The Timeshare Association (TATOC) gives help and specialist advice to timeshare owners living in the United Kingdom about timeshare and how to resolve a problem with a timeshare. TATOC helps timeshare owners exchange information and supports timeshare owners clubs. Their contact details are:

TATOC
Manchester House
84 – 86 Princess Street
Manchester
M1 6NG

Tel: 0845 230 2430
E-mail: info@timeshareassociation.org
Website: www.tatoc.co.uk

UK European Consumer Centre

You can find useful information about timeshares, holiday clubs and timeshare re-sales on the website of the UK European Consumer Centre at: www.ukecc.net.

Resort Development Organisation (RDO)

The Resort Development Organisation (RDO) is the trade association for timeshare in Europe. The RDO website gives general advice about timeshare to potential buyers and to those who already own a timeshare. The website also explains current laws in the United Kingdom and Europe.

Resort Development Organisation (RDO),
Oak House
Cours St Michel 100/3
B-1040 Brussels
Belgium

Tel (Consumers): 0032 (0) 2533 3069
Fax: 0032 (0) 2533 3061
E-mail: info@rdo-org
Website: www.rdo.org

The Office of Fair Trading

The Office of Fair Trading (OFT) is keen to receive information about problems you may have experienced with timeshare and holiday clubs based in Europe. The OFT gathers evidence, which it may be able to use to take legal action against a trader based in Europe, to stop them breaking the law in the future. The OFT cannot get involved in individual cases or help you to resolve your problem.

Enquries team
Office of Fair Trading
Ground Floor
Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX
Tel: 0845 722 4499
Email: enquiries@oft.gov.uk
Website: www.oft.gov.uk