Almost every timeshare contract includes a clause relating to maintenance fees. The contract will state that the fees have to be paid during the full term of the contract. However, it will not state that it is a non-fixed rate nor does it state that these fees can be varied and entirely at the discretion of the timeshare resort.
The most common problem is that most resorts become avaricious and simply cannot resist taking advantage of the consumers by increasing their maintenance fees simply because they can, and by doing so they keep finding excuses to increase the fees of owners, who are typically locked into long-term contracts and have no option but to just ‘accept’ these charges.
Unfortunately, the only way to end these fees is to get out of their timeshare contract.
Typically, the paragraph with regards to the maintenance fees is usually hidden away in the small print, allowing the timeshare resort to increase the fees at their discretion.
Having signed your contract you are, therefore, unfortunately, legally obliged to pay these fees throughout the full term of your agreement, whether you were informed correctly or not.
Due to there being no limitations on these increases it is estimated that the fees double every 10 years, therefore if you are paying £400 per year in 2017, come 2027 this will have risen to £800 and unfortunately, there are no signs of this changing. Imagine the full amount paid over the term of the contract, this could be phenomenal. For that reason alone, we at TCA advise consumers to always, always read the small print.
The repercussions from each resort differ should you choose to just stop paying your maintenance fees. Usually, resorts will start with reminder letters and phone calls, sometimes adding additional charges and interest for late payment. It’s also probable that you may also suffer limitations in terms of using your timeshare whilst remaining in arrears. The fees usually continue to accumulate and recovery procedures usually escalate, threats of legal action, damage to your credit rating and sometimes the use of debt collectors.
TCA would not recommend this action, one because this can be very stressful and unpleasant, and two, the timeshare resort has a signed contract which they can enforce as they wish.
Just remember that there is only one certainty guaranteed, maintenance fees will always increase over time as the timeshare resorts know all too well that they have consumers locked into contracts allowing them to increase the fees at their sole discretion and unfortunately most of them do.
Generally, depending on the terms and conditions of your contract, this could well mean that you are committed to major financial obligations over a long period of time.
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