TATOC The Timeshare Association

Information for consumers who have already paid upfront fees.

Unfortunately there are a number of companies operating in a dishonest or illegal manner who prey on timeshare owners offering them false hope of selling their timeshare property for unrealistically high prices.  Many imply or even state they have a buyer already waiting and ready to purchase the timeshare, often saying the purchaser has already paid a deposit, and take a considerable deposit from the timeshare owner as a 'security payment to enable the sale to go through'.

The information given is confusing; misleading and does not honestly represent the service available from the company and, in some cases, is dishonest and fraudulent.  This practice is well known within the industry, consumer bodies, UK Government departments such as the Office of Fair Trading (OFT) and the department for Business Innovation and Skills (BIS), and the wider European Parliament. The above consumer scam is now prohibited under EU Directive 2008/122/EC which was implemented in all EU member states from 23rd February 2011.  Unfortunately this legislation is not retrospective and contracts made prior to this date are not affected. Please see the 'legislation' tab on the TATOC website for more information.

TATOC has produced a consumer-focused Resale Code of Practice which reflects the needs of timeshare owners and new legislation, with which reputable companies recognised by TATOC must comply.  One of the principle elements of the code is a ban on taking deposits of any kind in advance of sale, however disguised this request for up-front payment.

The code also forbids quoting unrealistically high resale values and advising owners that a purchaser is already waiting to purchase.  

TATOC Consumer Helpline will only recommend companies who have agreed to be bound by the TATOC Code of Practice. 

A common complaint timeshare owners make when they have paid up-front charges is difficulty getting through to the resale company and a feeling of being fobbed-off when they do. In addition, there is often a failure of the promises made by the resale company and no resulting sale or return of the deposit paid.  To get money back from the resale company will not be easy. It is usually the first time owners experience this unfortunate situation but the company will be very familiar with dealing with dissatisfied customers. As a consumer body we are not able to take action on your behalf but there are a number of things you can try if you feel they apply to your situation:

If the company has your credit/debit card details you should contact your credit card company or bank for their advice on whether it is necessary to cancel your card. 

You should read very carefully any documentation they have sent to you to see what it actually states rather than what they may have said when they initially contacted you by telephone.

You can write to the resale company expressing your concern and dissatisfaction. Especially if you feel you have been misled and the agreed service has not been delivered. Keep copies of everything they send to you and anything you send to them, and use registered/recorded delivery (keeping the receipts). 

There is a limit to the usefulness of repeated telephone calls because it is difficult to prove what has been said and even if you record calls there are very strict rules about using any recording as evidence. 

You should clarify with them the reason they took the deposit from you and what you have received, or will receive, in return for this payment. You should ask them what happened to the promised sale - now long overdue, and what has been the delay in sending the proceeds to you. You should ask them to confirm they have a purchaser for your timeshare and press them for delivery of the promised service.

If you paid by credit card you can contact your credit card company and advise them of the situation and that the resale company misrepresented the product to you, assured you a purchaser was waiting, and therefore took your payment under false pretences. It is also likely that any written contract paperwork you received will bear little resemblance to the discussion you had with them when they telephoned you and took your payment.  This is fraudulent and you should report this to your credit card company.  For further information please refer to the TATOC Consumer Helpline No 82.

If you paid on a visa debit card there is protection available under the Visa operating rules, but you have only 120 days to make a claim starting from the time you became concerned about your contract.  You should contact your bank as soon as possible for assistance under the 'charge-back' facility.  For further information please refer to the TATOC Consumer Helpline Guide No 83.

You can contact a legal professional to seek advice on the situation and the possibilities available to you to take action against the resale company. Please be aware that many of them are not registered in the UK which can make this difficult and/or expensive, and the outcome can be far from certain.

You can contact Trading Standards, the Office of Fair Trading, The department of Business Innovation and Skills (BIS) and the UK European Consumer Centre to inform them of the activities of this company. 

You can complain to the highest authority in the location where the company is based.  This can be to the appropriate foreign Embassy in the UK and to the appropriate Tourist Board to complain about the activities of the company and the damage such practices do to tourism and the holiday industry.

You can complain to the police in the UK and in the country where the company is based.

If you can support your complaint with verifiable facts you can contact reputable media bodies to detail your situation and to bring attention to the resale company.

You can tell the resale company you will be doing the above if they cannot provide you with the service they promised when they contacted you, or refund the money you have paid.

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