Timesharing: Contracts
The question
To ask the Secretary of State for Business and Trade, what assessment his Department has made of the potential implications for its policies of paragraph 4.39 of the Competition and Markets Authority’s report entitled CMA project on Timeshare Disposal, released under FOI on 21 April 2015.
Answered by Justin Madders
The Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010 govern the sales of timeshares. They provide significant protections, including stipulating the information consumers must be aware of prior to purchase and a14 day right to exit, should the customer change their mind.
Purchasers of timeshares are also protected by general consumer law, requiring contract terms be fair and bans mis-selling. The CMA expressed the view that some in-perpetuity clauses may be unfair, depending on circumstances.
Enabling consumers to exit timeshares is a balance between protecting consumers wanting to leave and the interests of the business and those customers who remain and share admin costs.
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