EU to clamp down on timeshare rogue traders
Currently if a person signs up to a long-term holiday club or buys a timeshare on a canal boat or a cruise ship, they have no protection for their investment.
EU laws are 13 years old and described by Fianna Fáil MEP Brian Crowley as thoroughly out of date.
Timeshare holidays are very popular in most European countries, but also give rise to a significant number of complaints from dissatisfied customers, or from members of the public who have been ripped off.
Last year, more than 2,000 people complained to the European Consumers’ Network about timeshare dealings they were involved in, bringing the number of complaints in the past five years to more than 16,000.
Mr Crowley said: “This represents a lot of money and a lot of hopes and dreams of ordinary people. More needs to be done to protect people.”
Early next month, European Commissioner for Consumer Protection Maglena Kuneva will bring forward proposals to govern the timeshare industry in Europe.
The key changes she will suggest to the current legislation will be that it should cover more than just a share in a house or apartment. It will include boats, caravans and discount holiday clubs where a purchaser buys discounts on accommodation with or without travel services.
The definition of a timeshare will be tightened up to cover any contract due to last more than one year that gives a person use of accommodation for more than one period of occupation.
Up to now it covered only contracts of more than three years.
The cooling-off period to protect people from pressure selling will also be extended from 10 days to 14 days and sellers cannot accept a deposit in that time. The 14 days begins once the potential purchaser has received all the information required under law.
The information includes details of the trader’s legal status; the exact nature of the timeshare right; conditions for the use of electricity, water and maintenance; how maintenance costs will apply; purchase price and an estimate for the cost of using common areas together with the level of local taxes to be paid and whether one can re-sell the timeshare interest.
The new protections will also apply to anybody involved in the re-sale of a timeshare.
An EU system of consumer centres for cross-border redress will continue to operate to help purchasers seek redress under the new directive.
Mr Crowley said: “This legislation gives consumers more protection and I will certainly be supporting the main provisions of this EU new directive when it comes to the European Parliament for our consideration.
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