Timeshares and Holiday Clubs
What is a 'Timeshare'?
Timeshare is the annual right to use accommodation during one or more weeks in a holiday property or several properties. In Europe, there are approximately 1,500 timeshare resorts.
What is a 'Holiday Club'?
A holiday club is where you pay a membership fee which allows you to book and pay for holidays through the club at a discount.
EU Legislation on Timeshare
The EU regulates aspects of timeshare, long-term holiday products, resale and exchange contracts. In 2011 the new Directive 2008/122/EC replaced the old Timeshare Directive 94/47/EC with clearer and simpler rules. The new Directive covers the market changes and new products e.g. holiday clubs, resale and exchange.
The new regulations extend the scope of previous rules to cover:
•Long-term holiday products (e.g. holiday clubs)
•Shorter term contracts - all purchases for a year or more, including tacit renewal of shorter periods
•Timeshare-like products e.g. timeshare in canal boats, cruise-ships and caravans or timeshare contracts for less than three years (previous legislation only covered periods of three years or more)
•Resale and exchange of timeshare schemes
Key points of the new Directive are:
•Full harmonisation across the EU
•Detailed rules on pre-contractual information
•Cooling-off period is 14 calendar days, with no cancellation costs incurred. No reason has to be given
•Prohibits traders or any third party from asking consumers for deposits, advance payment, guarantees or reservation of money during the cooling-off period
•Specific payment rules for long-term holiday product contracts
•Compulsory penalties (national) if the trader does not comply with the national rules implementing the Directive
•Any linked loan or finance agreement is automatically terminated if the consumer cancels
•Timeshare and long-term holiday products must not be sold as an investment
•Contracts must be in an EU language of the consumer's choice
When did the new rules come into force?
Implementation of the Directive started across the EU February 2011. The UK implemented it on 23 February 2011.