The new Timeshare Directive: What to do if you need help . . . The ...

The new Timeshare Directive:
how it protects you . . .
The new EU Timeshare Directive (2008/122/EC) is set
to give minimum standards for consumer protection
throughout the EU in the field of timeshares and
holiday clubs.
It has been adopted by the EU to address loopholes
and weaknesses of the original Timeshare Directive.
Since then there have been major developments in
the marketplace, with new products and schemes
being developed that fell outside the legislation.
The new Directive applies to contracts where a
consumer pays for a service:
• Concluded in an EU state, or
• Related to any accommodation in an EU
state, or
• Entered into by a trader who conducts
business in an EU state
It aims to prevent “pressure selling” by allowing
a 14-day cooling-off period where withdrawal is
possible and money deposits are not allowed.
The new rules on cancellation rights, cooling-off
periods, deposits and consumer information relate
to four separate products and will apply to all forms
of holiday accommodation. This includes boats and
other moveable property such as cruise ships, canal
boats and caravans.
What and where . . .
Some consumers who bought new products which
fell outside of the original timeshare Directive were
previously excluded from the same rights or levels
of protection as those buying more conventional
timeshare products.
The new Directive extends consumer protection and
now covers four separate areas:
• Specific timeshare products
• Longer-term products such as holiday clubs
• Resale of timeshare or holiday club
memberships
• Exchange services
Some of the first countries within the EU to introduce
laws implementing the Directive were France,
Germany, Finland, Slovakia, Sweden and the UK. It
was implemented in the UK on 23 February 2011.
Other EU countries are expected to comply shortly.
More details of the Directive are available from www.
ukecc.net
The Directive is intended to put the best protection
in place for consumers in the modern holiday
market and give all consumers across Europe equal
protection.
Your rights under the Directive . . .
Under the new Directive, prospective purchasers
must be given accurate and sufficient information
about what they are buying in good time BEFORE
they are bound by any contract.
The minimum to be disclosed defined in the
Directive includes:
• Any invitation to a sales presentation must
disclose the true nature of the invitation and
its commercial purpose
• Timeshare and long-term holiday products
must not be sold as an investment
• Promotional materials and written contracts
must be in an EU language of the consumer’s
choice
• Purchasers must be given a 14-day cooling-off
period, with no cancellation costs incurred.
The consumer is not required to give a reason
for cancelling a contract within the cooling-off
period. The cancellation period can be extended
under certain circumstances
• Any payment by the consumer is prohibited
during the cooling-off period
• Any linked loan or finance agreement is
automatically terminated if a consumer cancels
the purchase agreement
More details relate to specific products
covered under the new EU
Timeshare Directive.