15th June 2006: Euro-MP warns "Beware Timeshare Cons" and demands change in the law

After being approached by constituents who had handed over large amounts of money and not received the service they expected, Ms McAvan raised the issue during questions to the European Commission in Strasbourg this week and was told that revision of the Timeshare Directive - which provides minimum legal standards for people buying timeshares across Europe - is a priority.

The Commission began a consultation earlier this month on changes to the current law, which excludes holiday and vacation clubs.

Ms McAvan, said;
"Some of the experiences that people have with timeshares, and particularly with holiday clubs, are very frightening. Some of these businesses prey on people whilst they are relaxed, on holiday, and perhaps do not speak the local language. They employ high pressure marketing techniques to ensure they get your cash. But I have heard about cases where people have been really unhappy with their purchase, and have been unable to cancel the contract, or even speak to the company again. Some companies will try to intimidate you to make sure you pay. They really do not meet the kinds of business standards you would expect. People need to be sure about what they are signing up for."

She added;
"The Timeshare Directive gives some basic protection, for example a cooling off period of 10 days, to people buying timeshares. But it defines 'timeshare' quite narrowly and people will often buy what seems to be a timeshare but is actually a 'holiday club'. There is no cooling off period and little legal protection. We need to change the law to stop people being ripped off. I am urging the European Commission to draft legislation that will close this loophole."

She concluded;
"I would advise anyone against buying a timeshare whilst on holiday. If you are tempted, come home first, check the company out online or with the Timeshare Consumers Association, see if it signs up to the Organisation for Timeshare in Europe's code of ethics. Only then, once you are confident that the company is legitimate, go ahead. Any deal that seems too good to be true probably is."

Further information for anyone considering buying a timeshare, or who has a problem with theirs is available from Linda's website (www.lindamcavanmep.org.uk). People are also invited to submit their views on new laws to the European Commission. Again, details are available on the website.

Linda's question to the Commission and their response are reproduced below.

ORAL QUESTION H-0449/06
for Question Time at the part-session in June 2006
pursuant to Rule 109 of the Rules of Procedure
by Linda McAvan
to the Commission

Subject: Timeshares

Is the Commission aware that, despite the provisions laid down in the Timeshare Directive, many people are still experiencing frightening difficulties when dealing with what they understand to be timeshares?

Holiday clubs seem to be a major cause of problems. In the past, the Commission has said that it would come forward with new legislation to close the loopholes in timeshare legislation, so that it covers holiday clubs. Can the Commission now indicate when this draft legislation may be published?

Reply to oral question
H-0449/06
by Mrs McAvan
June 2006

The Commission is well aware of the situation. It receives numerous complaints and is informed of the difficulties experienced by timeshare purchasers from different sources, including the European Consumer Centres Network.

The Commission has included the Timeshare Directive in the review of the consumer acquis. Given the urgency of the problem, priority will be given to the revision of this Directive.

To this end a consultation paper was published on 1 June, and a workshop on timeshare will be held in Brussels on 19 July. The consultation paper covers various issues which may be addressed in the course of a possible revision of the Directive. These issues include the scope of application of the Directive, the resale and exchange of timeshare, and the pre-contractual information requirements. Depending on the results of the consultation, the Commission will determine the next steps in the revision of this Directive.