Contracts both written and verbal are, by definition, legally binding on the parties which freely entered into them, therefore it’s difficult to achieve cancellation legally and does require minds that have a good knowledge of the particular contract which a consumer wishes to cancel.
Consumers can cancel timeshare contracts and membership to resorts clubs without financial penalty if they can prove a significant breach of contract.
In many situations however, such as buying goods from shops, you are able to cancel the contract and get your money back. But unless the goods are faulty, this is not an automatic right, and you must refer to the individual shop or supplier’s returns policy.
Under certain circumstances, you are given the right to cancel over a specific period of time which is called the “cooling off” period which is imposed on certain industries which have a chequered past. The “cooling off” period in timeshare has a 14 day period and is applicable to all products add on re sales contracts and swops.
Buying online from re sellers or timeshare service suppliers
The purchase of goods and services over the internet, by phone or by mail order generally is subject to the Distance Selling Regulations. One of the most important implications of these regulations is again the “cooling off” period which timeshare consumers have the right to cancel.
Timeshare consumers must however provide notice of cancellation in writing and it must be posted to, left at, faxed or emailed to the business address of the supplier, and you must ensure this is done with-in the statutory time period.
The best method is by e mail as the dating is very transparent and provable.
Something else worth mentioning is that the supplier must have sent you written confirmation of your order no later than the time of delivery of the product or performance of the service. If they did not, then your “cooling off” period will not begin until they do. If they are in breach of this act the contract may be extended by a further 3 months.
Buying from a doorstep seller
If you have acquired a timeshare product costing more than £35.00 from a trader as a result of a visit to your home or place of work (whether or not the visit was requested by you), you will be protected by the Doorstep selling Regulations – or to give it its proper title: The Cancellation of Contracts made in a Consumer’s Home or Place of Work etc Regulations 2008. These regulations give you a “cooling off” period of 7 calendar days during which time you have the right to cancel and get a full refund. Just as with the Distance Selling Regulations, you must have been provided with a notice of your cancellation rights, otherwise the agreement may be legally unenforceable.
Buying away from the timeshare trader’s normal place of business.
You may also invoke your 14 day cancellation rights for items over £35.00 where business is taking place away from the trader’s HQ or office. This may include any of the following:
- Your place of work, site office or establishment which is used in conjunction with your employment.
- A trade fair/ presentation
- A one-day presentations (such as a timeshare presentations) or a marketing presentation (such as overseas timeshare acquisitions).
It is also the case even when timeshare contracts are concluded at a later date, back at the trader’s shop or office – the fact that you have made your offer away from here is the important thing.
Timeshare agreements
There have been numerous problems to do with consumers who have signed contracts while under high pressure sale techniques from salesmen in the UK or as a result of a so called ‘free’ holiday provided by the timeshare company.
“you don’t get owt for free”
For this reason, the Timeshare Act 1992 gives you the benefit of a “cooling off” period of 14 days if contracts are signed in the UK. If you sign abroad you will be subject to local laws, although most European member states have a “cooling off” period of 10 days. Consumers must check before you signing anything, although the company must provide you with the same notification of your rights as doorstep sellers.
Credit Agreements
You will only benefit from a cooling “off” period if the credit agreement was made in one of the following ways:
- For agreements signed away from the creditor’s normal business premises – i.e. at your home, place of work or at an exhibition stand
- For agreements made at a distance (online, by phone or by post)
For agreements which fall under (1), you will have a “cooling off” period of 5 days, which begins from the time you receive the second copy of the agreement (containing the cancellation form). For contracts which fall under (2) and (3), you benefit from a “14 day” cooling off period. Unlike the cooling off period for goods bought under the Distance Selling Regulations (DSRs), the creditor may make a reasonable charge for any service (such as insurance cover) which was operating during this time.
There are specific guidelines on how you should cancel the contract, which must be notified to you by the creditor before or immediately after the contract is made. If the creditor does not make this information available to you, then your cooling “off period” will not begin until this happens.
Financial products and services
Financial products including banking, credit, insurance, personal pensions and investments, sold by distance means are subject to a 14 day “cooling off” period (this is 30 days in the case of life insurance and personal pensions). This includes renewals for insurance where the agreement has been sent by post.
This 14 day cooling off period also covers situations where you bought a financial product from an intermediary or a broker, even if it was discussed and signed face to face. You must be sure to follow correct procedure for cancellation (see below). The insurer or broker must refund any monies paid by you within 30 days, although they have the right to deduct a reasonable admin charge, and a sum proportionate to the number of days cover you have had. If you have any related credit agreements, these will also be cancelled.
The correct procedure
With any timeshare contract or sale which is concluded away from the trader’s normal business premise, you must be sure you have been presented with clear written notice of your right to cancel, at or before the time the contract is made. This is an area of contention and it is for the trader to prove at all material times. If you have not, the contract is legally unenforceable. This notice, cannot be in the form of small print, or otherwise disguised. It must also provide a cancellation form and advise you on how and to whom a notice of cancellation is to be made.
You can use the cancellation form provided or a simple written notice, as long as it is clear of your intentions. And as long as you have posted your notice of cancellation before the end of the cancellation period, it doesn’t matter when it is actually received. For this reason, it is always advisable to send it recorded delivery or e mail.
Refunds
The supplier must reimburse you within 30 days of cancellation, without charge, unless you have been informed that you will be liable for the cost of returning the goods. If you have any related credit agreements, these will also be cancelled.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk