If you are considering a legal case regarding any aspect of your timeshare, it’s important to understand what the regulations are in relation to timeshare contracts. Though some of the information contained in some of these Regulations may seem somewhat complicated, thought it was necessary for you to have access to the original text yourself.
The Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010 sets out the legal requirements and restrictions that timeshare companies are obliged to adhere to in order to be compliant. It is designed to ensure that timeshare contracts and the behaviour of the companies involved are fair and legal. Part 6 looks at the issue of payments, outlining what is and isn’t permitted and legal regarding the payments demanded from you in respect of your timeshare.
The Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010 is comprised of several parts, all of which we have covered on the blog. For links, please see below:
- Part 3: PRE-CONTRACTUAL MATTERS
- Part 4: FORMALITIES
- Part 5: TERMINATION OF REGULATED CONTRACTS
- Part 7: OFFENCES & PENALTIES
- Part 8: ENFORCEMENT
Parts 1 and 2, as well as the additional supplementary information of Part 9, can be viewed in full on the UK Government Legislation website.
PART 6 PAYMENTS
(1) This regulation makes provision about when consideration may be accepted in relation to regulated contracts.
(2) Paragraph (3) applies in relation to a timeshare contract, long-term holiday product contract or exchange contract.
(3) No person may accept any consideration from the consumer before the end of the withdrawal period in relation to the contract (see regulation 21).
(4) Paragraph (5) applies in relation to a resale contract, the subject of which is rights under a timeshare contract or long-term holiday product contract.
(5) No person may accept any consideration from the consumer before—
(a) the sale of those rights takes place, or
(b) the contract is otherwise terminated.
(6) For the purposes of this regulation “consideration” includes any of the following—
(c) reservations of money on account,
(d) acknowledgements of debt.
(7) A person who contravenes paragraph (3) or (5) commits an offence.
Payment schedule: long-term holiday product contracts
(1) A trader must not accept any payment in respect of a regulated contract that is a longterm holiday product contract unless the payment is made in accordance with a schedule which complies with the requirements of this regulation.
(2) The schedule must provide for all payments under the contract (including any membership fee) to be divided into yearly instalments of equal value, taking into account the duration of the contract.
(3) The schedule must be prepared by the trader and provided to the consumer.
(4) The trader must send a request for payment in writing to the consumer at least 14 days before a payment of an instalment becomes due under the schedule.
(5) A trader who contravenes paragraph (1) or (4) commits an offence.
Of course, if you have any queries about what you have read here, or simply want to talk more about your timeshare agreement, then please do not hesitate to get in touch. We’re always happy to chat you through anything that’s on your mind, and help wherever we can.