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Timeshare Directive for the Protection of Consumers in Respect of Certain Aspects of Timeshare, Long-Term Holiday Product Resale and Exchange Contracts (the Directive)

Our clients are consumers and this article is concerned with the purchase of a timeshare and/or long-term holiday product (LTHP).  The purchase agreement and the agreement pursuant to which our clients became members of the club is a regulated contract for the purposes of the Directive.

Contrary to the requirements of Section 12 and part 1 and part 2 of the Directive resorts may have failed to provide consumers with some of the key information and in the prescribed form.

Furthermore, in contravention of Schedule 14(2) of the Directive, resorts may have invited our clients to attend a sales presentation without providing them with an invitation which clearly sets out and explains the commercial purpose and nature of the event that our clients were to attend.

This avoidance along with missing key information and in relation to a proposed regulated contract is unacceptable as it should have been made available throughout the duration of the event.  Supplying our clients with a contract at the end of a sales presentation is simply unacceptable, as the Directive clearly provides that the contract and/or documentation need to be made available “for the duration of the event”.  For the avoidance of any doubt, “event” includes a sales presentation.  In breach of clause 15 of the Directive, many resorts fail to provide many of our clients with a contract in the required form and the key information that was provided was woefully inadequate. One such major breach particularly relates to the term of the contract which was to continue in perpetuity or long term.

Further, pursuant to Section 25 of the Regulation, resorts should know that they were prohibited from taking advance payments from our clients which includes any payment arising as a result of any related finance agreement entered into by our clients.

Resort failure with respect to complying with the Directive is not only a criminal offence but is actionable as a civil wrong.

Last modified: 23rd April 2020