Why are timeshare owners locked into unfair contracts?
BY Eugene Costello
19th Sep 2023 Money
4 min read
More
than half a million reluctant timeshare owners are locked into harsh and unfair
contracts—and it might be their children who carry on paying the price
In 2003, my parents visited friends at their
timeshare resort in Madeira. These friends took my parents to a presentation
where they ill-advisedly bought a 25-year timeshare for their very hard-earned
£20k. Dad had been a teacher and Mum a nurse, so not by any means rich. They
dreamed of taking grandchildren there and all the other idylls that these
companies ruthlessly trade on.
They had to pay up to £650 per year for
"maintenance” but had to give 13 months' notice of any intention to use
their timeshare.
In the event, my mother became ill, first with rheumatoid
arthritis, then with Alzheimer's, and they only ever got three holidays out of
this expensive investment.
Trying to get out from the timeshare contract
It's easy to see why places like Madeira attract people to buy into expensive timeshare contracts. Credit: Travel Faery
Five years ago, my younger brother took over
their file to try to negotiate a cancellation from this onerous contract but
sadly he passed away after a sudden cardiac arrest.
In April, my mother passed away and my dad, now
90, asked if I could help since he was so stressed. He was being chased for
four years' worth of maintenance fees, plus he was tied in for another five
years.
"My dad, now 90, was chased for four years of maintenance fees, plus he was tied in for five more"
I contacted a timeshare claims and relinquishment
company named European Consumer Claims, a British business based
near Malaga, Spain, and their well-connected adviser, Steven, got him off the
hook with little protest from the timeshare resort group.
European Consumer Claims
ECC is Europe’s largest timeshare claims and relinquishment
company. They work with specialist Spanish firm of timeshare lawyers M1 Legal
and have more than £100 million worth of timeshare compensation cases under
management.
Some 94 per cent of TrustPilot users give ECC five-star reviews,
giving confidence in their service.
Aggressively sold timeshare contracts
This is not a one-off case. Far from it.
Last
year, a parliamentary research group published a paper, finding that “During
the 1980s and 1990s, many timeshares were sold aggressively to British tourists
who were on holiday and without access to independent legal advice. Some
contracts were not written in English and included an obligation to pay expensive
annual management and maintenance fees."
Inheritance of timeshare contracts
"Often timeshare agreements are made 'in perpetuity' (ie, as everlasting contracts). In effect, the contracts 'lock' the timeshare owner and—it now transpires—their children in for life. Some
owners would ideally like to sell their timeshare, but there may be little
demand."
"Often timeshare agreements are made 'in perpetuity'—‘locking’ the timeshare owner and their children in for life"
"Offloading unwanted timeshares and the problems surrounding the
inheritance of them are concerns usually compounded
by the need to pay yearly maintenance costs on the property. In some cases,
this makes a big dent in the dwindling savings of elderly owners and is a worry
looming for relatives who stand to inherit the timeshare.”
Widespread problem
There are between 500,000 and 600,000 UK
timeshare owners, the report states. Almost half of them have timeshares in
Spain, 20 per cent in the UK and 25 per cent outside of Europe. It clearly
continues to be a widespread problem, and those who took them out 20 years ago
or more are being held to ransom with so-called “in perpetuity” contracts that
are passed on to next-of-kin or beneficiaries in the event of death, now ruled
illegal. But it has not stopped some unscrupulous operators from continuing
with the practice.
Says ECC’s Steven John, “In perpetuity
contracts (contracts that last forever) have been illegal since 1999 and are
just the tip of the iceberg. Timeshare firms in Europe have been running
roughshod over consumer rights for decades."
What can I do about it?
In January 1999, the Spanish supreme court
decreed that these “in perpetuity” contracts would henceforth be illegal, along
with the widespread practice of taking a deposit on the day from gullible
holidaymakers, both of which continued even after this court ruling.
"Fight for a relinquishment of the ongoing maintenance fees and for compensation for mis-selling"
So the first group who can claim for
relinquishment and compensation for mis-selling are those who entered into a
timeshare agreement in Spain after January 1999. You can fight for a
relinquishment of the ongoing maintenance fees—often as high as booking a
holiday apartment with no further obligation—and you have a good chance of
receiving compensation for mis-selling.
Clearing payments
It's possible to have some of the money owed cleared from scam timeshare contracts. Credit: PeopleImages
In the case of my father, because his timeshare
property was in Portugal, he could only claim for the relinquishment. However,
with the outstanding maintenance payments plus another five years on his
contract, he was delighted to be clear of almost £6,000, so it is worth
speaking to a timeshare claims and relinquishment firm, such as European
Consumer Claims for a no-cost chat about what they can do and how much it might
cost.
This also applies to those with timeshares in
other jurisdictions.
The game is up
Says ECC’s Steven John: “The reality is that,
especially in Spain, but elsewhere too, these rogue operators know that the game is
up and it is only a matter of time before their businesses are out of action.
"Rogue operators fear that consumers are becoming better informed and are excercising their rights"
“What they fear is consumers becoming better
informed and exercising their rights, and they dread publicity now that their
business model is rightly viewed as shady and duplicitous.
“So a call from a company such as ourselves or
a lawyer working with us, sets off the alarm bells, and brings them to the
negotiating table.”
Banner credit: Rafa Jodar
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