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01 February 2018 / David Partington
Issue: 7779 / Categories: Features , Commercial
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When timeshares turn to nightmares

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Timeshare contracts can trap the unawares into lengthy commitments. David Partington presents some innovative means of escape

  • Raises potential ways to tackle timeshare contracts under the Unfair Terms in Consumer Contracts Regulations 1999.
  • Introduces the idea of proceeding against lenders who finance such contracts under s 140A of the Consumer Credit Act 1974.

This is a brief introduction to what is a hugely complex topic, defending liability or seeking redress in respect of timeshare contracts. Before I do that, I need to explain two matters. One is the central ‘mischief’ of timeshare contracts. The second is the structure of such contracts.

The central mischief is that clients find themselves bound to very long contractual obligations with no express ‘exit’ provisions, although there are various policies which some companies say they operate in cases of extreme hardship, old age (say 75 years) or death. At the same time the client is bound to pay an annual management fee in the nature of a service charge, whether or not they are able to access the scheme,

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MOVERS & SHAKERS

Winckworth Sherwood—Charlotte Coleman & Qaisar Sheikh

Winckworth Sherwood—Charlotte Coleman & Qaisar Sheikh

Two promoted to partner in property litigation and education teams

Dorsey & Whitney LLP—Peter Knust

Dorsey & Whitney LLP—Peter Knust

Cross-border finance and restructuring specialist joins as of counsel in London

Powell Gilbert—Callum Beamish-Lacey

Powell Gilbert—Callum Beamish-Lacey

IP firm promotes litigator to partnership

NEWS

From blockbuster judgments to procedural shake-ups, the courts are busy reshaping litigation practice. Writing in NLJ this week, Professor Dominic Regan of City Law School hails the Court of Appeal's 'exquisite judgment’ in Mazur restoring the role of supervised non-qualified staff, and highlights a ‘mammoth’ damages ruling likened to War and Peace, alongside guidance on medical reporting fees, where a pragmatic 25% uplift was imposed

Momentum is building behind proposals to restrict children’s access to social media—but the legal and practical challenges are formidable. In NLJ this week, Nick Smallwood of Mills & Reeve examines global moves, including Australia’s under-16 ban and the UK's consultation
Reforms designed to rebalance landlord-tenant relations may instead penalise leaseholders themselves. In this week's NLJ, Mike Somekh of The Freehold Collective warns that the Leasehold and Freehold Reform Act 2024 risks creating an ‘underclass’ of resident-controlled freehold companies
Timing is everything—and the Court of Appeal has delivered clarity on when proceedings are ‘brought’. In his latest 'Civil way' column for NLJ, Stephen Gold explains that a claim is issued for limitation purposes when the claim form is delivered to the court, even if fees are underpaid
The traditional ‘single, intensive day’ of financial dispute resolution (FDR) may be due for a rethink. Writing in NLJ this week, Rachel Frost-Smith and Lauren Guiler of Birketts propose a ‘split FDR’ model, separating judicial evaluation from negotiation
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