House of Lords - European Union

Select Committee on European Union Written Evidence

Memorandum by Timeshare Computer Link Ltd

My name is Lee Sheard. I am submitting this evidence on behalf of Timeshare Computer Link Ltd, of which I am a Director.

The company deals exclusively in resale timeshare and has done so for the last 11 years.

I would like to give my evidence on the specific issues as follows:

OVERVIEW

1. As the resale of timeshare does not have the same binding legislation as some other timeshare products. We feel satisfied with the voluntary agreements in place. We follow the OTE Code of Ethics as far as resales are concerned. I believe that any further legislation would make the selling of the product more difficult and, therefore, of no benefit to the consumer. We believe that there is already enough legislation in place in the Companies Act and the Sales of Goods Act to cover for any misdemeanours.

2. We find the difference in EC law and national law to be confusing. We would be happy to be governed by an EC law, providing that the controls and punishments were dealt with equally by all member states, thus making a level playing field. Otherwise, we would prefer to be controlled by the OTE with them being made the primary legislators for the industry, having more responsibility for reporting to governments any unethical practice they come across.

3. The existing Directive has been beneficial to our business because customers cancel their contracts under the legislation and then come to us and buy similar products at lower prices. However, we consider that this is not of any great benefit to the industry or the consumer because most consumers cancel simply because they can and then do not repurchase from anywhere because they are put off by people who do not understand timeshare. The legislation has also created off-shoot businesses which will continue in one guise or another irrelevant of any further legislation.

SCOPE AND DEFINITIONS

4. The scope and definitions are likely to create even more confusion for the consumer and the industry. We believe that the current definition of an immovable property of more than three years duration is more than adequate.

NATIONAL PROVISIONS

5. Where we agree a resort should offer full disclosure, we find this to be not practicable in the resale business. The clients contact us and they are at liberty to ask whatever questions they want prior to deciding whether or not to buy. Whilst we try and verify everything the best we can, it is difficult if the resort will not pass on the information to us.

6. We think that the OTE should be the information place for timeshare. They should give information on websites, in the national press and in flight magazines. They should have leaflets available from Citizens Advice Bureaux and Trading Standards offices.

RIGHT OF WITHDRAWAL

7. From a consumer perspective, I am sure the provisions on right of withdrawal are satisfactory. However, as this encourages cancellations of what is a superb product, I see no advantage to the consumer.

8. There appears to be to me too much emphasis on the right of withdrawal. Providing the product does as described, we do not agree that there should be any right of withdrawal This again could be addressed by the OTE.

ADVANCE PAYMENTS

9. Advance payments are a standard way of making a deposit for any purchase that people will make. We do not see why timeshare should be treated any differently.

10. We do not have a problem with purchasers on the resale market. People come and buy because they want the product and the payment of a deposit secures the week in their name whether the payment is paid to a third party or not does not make any difference. We have more difficulties with the vendors changing their minds about selling, rather than purchasers.

REDRESS

11. The simplest way to deal with this from a consumer's point or view would be to have one arbitrary body. This surely should be the OTE combined with the only other European association with any credibility, which is TATOC.

SANCTIONS, MONITORING AND ENFORCEMENT

12. The penalties applied by member states are of little threat because of the cumbersome way that courts work. It would be much better to have the OTE applying the sanctions and fines to those companies who break the rules. Through an insurance policy they would be able to recompense the consumer and punish unethical practices.

13. I believe that the Unfair Commercial Practices Directive means that there would be no need for any further timeshare legislation.

OUTSTANDING ISSUES

14, The Directive has completely failed to address the timeshare industry in general. The current legislation has had a crippling effect on the small timeshare operator and the new proposals may well make it not worthwhile for companies to continue. In the resale sector we sell a proportion of timeshare to people who are in a cooling off period, but mainly we sell to existing owners who are looking to extend their ownership, therefore, they see how good the product is.

CONCLUSION

15. Over 11 years we have a fairly good idea about what is happening in the industry. People telephone us for advice and, of course, we hear why people want to sell, as well as why people want to buy. Most people selling have owned for a number of years and, due to a change in circumstances, decide that they no longer require the timeshare. The vast majority have been very happy with their ownership and the complaints we receive are almost exclusively due to companies in Spain cold calling people saying they have a buyer for their timeshare. There are always going to be some "bad apples in the barrel", but we do not believe that legislation is the way to deal with these "bad apples".

We believe that much of the perception that timeshare is a troublesome product is brought about by Sandy Grey. Nearly all negative newspaper articles and TV and radio interviews can be attributed to Sandy Grey. He gives mis-information to the consumers and having read the interview he had with you, I also know that he gives misleading information to Government bodies.

Last night I was looking at the cost of an apartment in Vale Colorado for ski-ing. For one week I could end up paying well over £1,000, whereas through timeshare I can have the same standard of accommodation for a fraction of the price. Timeshare is an excellent product and I thoroughly recommend that each member of this committee looking at the legislation should contact me with a view to purchasing a week or more.

In support of our view that there is already enough legislation, we will point to the following Acts that are already in place for the consumer:

Consumer Credit Act 1974

Consumer Protection Act 1987

European Communities Act 1972

Fair Trading Act 1973

Trade Descriptions Act 1968

Unsolicited Goods and Services Act 1971

Unsolicited Goods and Services Amendment Act 1975

Misrepresentation Act 1967

Supply of Goods and Services Act 1982

Sale of Goods Act 1979

Sale and Supply of Goods 1994