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When timeshares turn to nightmares

01 February 2018 / David Partington
Issue: 7779 / Categories: Features , Commercial
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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

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