It has recently been discovered that a popular timeshare chain, who’s headquarters are based in India, have tricked thousands of Brits into paying for timeshare exits packs when their previous contracts were illegal!

The timeshare chain, who we cannot name for legal reasons at this time, used perpetual contracts which has been illegal since 1999. When the company changed owners, many members were converted onto a point system. This caused availability issues. Point based products that are not assigned to a fixed unit number and week number are also illegal.

The timeshare company was then faced with 2 issues. One was that their contracts were still in perpetuity, the other was that their owners no longer owned an actual product.

Problems with point-based products

Long term holiday products such as points or floating weeks were created so that companies could sell fresh air, once the fixed timeshare weeks had sold out. This causes huge problems as there are now more owners that they can accommodate. It is impossible for every timeshare owner to use the holidays that they are paying for.

The exit packs!

The resorts knew there was no way of keeping their members locked into illegal timeshare contracts so they found another way to get customers to pay more money. All owners at this particular timeshare chain were informed that they could pay 5 years maintenance fees upfront, and this would allow them to walk away from the ownership after the 5-year period.

The offer was made to sound attractive to the timeshare owners as it appeared they would no longer need to pay the termination fee stated in the contract. In some cases, additional points were thrown in to sweeten the deal. The problem for the consumer is that these contracts could have become null and void due to the contracts used, and they could have walked away at any time without paying the resort a withdrawal fee. In order to buy into the exit pack, some owners then signed documents to say that they did this voluntarily and they would not pursue the resort for compensation in years to come.

The additional points

Check your paperwork! If you have accepted additional points, these could be on a separate deed. If they are on a separate deed, your original ownership will terminate after the 5-year period, however the additional points could be ongoing for a duration of up to 50 years with annual maintenance fees.

Who can claim compensation?

Compensation could be obtained for the sale of the exit pack, also the original purchase, had the owners not signed away their rights when they signed the new agreement. It appears that not every customer was presented with, and signed the same contracts. You can speak to a specialist dealing with the mass enquiries for further details. A free consultation is available for owners to get vital information. It is better to have the information and not need it, than it is to need it and not have it. Some owners could be entitled to claim thousands of Euros and not know it.

Use the claims calculator on the link below and a specialist will contact you will all of the information.