Timeshare rogue traders to be tackled

NEW legislation to make it more difficult for rogue traders to con people into timeshare purchases was unveiled in Brussels yesterday.

It aims to protect people from the high-pressure tactics of unscrupulous salespeople that part people from their money with promises of a few free weeks a year in villas, yachts and luxury caravans.

At the same time the new rules are designed to protect the genuine timeshare industry that is worth over €10.5 billion across the EU and employs more than 40,000 people.

For the first time discount holiday clubs and timeshare-type deals on non-fixed property like boats and caravans will be covered by legislation under the proposals.

The cooling-off period will be extended from 10 to 14 days and during this time sellers cannot ask for or accept a deposit, and the time limit only begins after the potential purchaser has received all the information required by law.

European Consumer Commissioner Maglena Kuneva said the existing laws have worked well, but are too limited for the increasing range of deals on offer. “These holiday products remain a high-pressure sales environment and many new products have come onto the market that are not covered by existing laws.

“Consumers are being denied their rights, and the practices of rogue traders bring legitimate business operators into disrepute.”

The new proposals cover:

Shorter term contracts of less than three years.

Moveable property, such as canal boats, caravans or cruise ships.

Long-term holiday products: these include holiday discount clubs, where consumers pay, for instance, €3,000 to get a password to a website, where they are misleadingly promised “huge discounts” on holiday accommodation, flights and rental cars.

Resale of timeshares: many timeshare owners are approached by commercial agents who ask for a fee for selling their timeshare.

Exchange of timeshares: some timeshare owners pay an additional fee to join an exchange club, where they can swap their week in, for instance, the Canaries for a week in the Alps. Under the new rules they should get a more truthful description of the offer.

The proposals for the revised legislation must be agreed by the European Parliament and the member states before becoming law.