TIMESHARE:PEOPLE WHO buy timeshare apartments are to be protected against fraud and dodgy dealers under a new Timeshare Directive, approved by MEPs in Strasbourg yesterday.
Timeshare deals, in which buyers purchase specified periods in holiday accommodation, have won millions of takers worldwide since they came to prominence in the 1970s. They are often sold as a cost-effective alternative to renting, hotels or a second residence.
According to the Organisation for Timeshare in Europe, almost 1.5 million families have bought into legitimate timeshares with 200,000 Europeans employed in the sector. Sales are worth €2.3 billion per year.
There were 1,452 holiday centres in 25 European countries in 2001, the latest year for which figures are available.
However the industry has been beset by unscrupulous sales agents who often lure potential purchasers with offers of free food and drinks, accommodation and inspection trips.
Many people have complained about pressurised sales techniques and legal small print which hides issues such as colossal annual maintenance fees and restrictive sales clauses involving clawbacks for the agent.
Most European timeshare holidaymakers are from Germany or the UK, where most of the agencies are located, while most of the holiday centres are located in Spain, Italy, France and Portugal.
Since 1994, an EU directive has helped to harmonise timeshare rules across the EU, but litigation between operators and holidaymakers is still frequent, notably over conditions and quality of service.
In addition, new holiday products and services have evolved, similar to timeshare but not covered by the directive.
These include new types of holiday clubs giving holidaymakers reductions in the cost of their stays if they take out a subscription.
Some of these new contracts were seen to be clearly circumventing consumer protection rules.
The directive aims to enhance consumer confidence and bring legal clarity to the sector through new rules on the right of withdrawal, choice of contract language, pre-contractual information and a ban on taking deposits during the cooling-off period.
Member states will have three years in which to transpose the directive into national legislation.
