Cancelling a timeshare or long term holiday agreement

You signed a long term holiday agreement and have changed your mind.

For example, whilst on holiday in Spain or Greece, you were approached by someone who sold you a long term holiday, usually referred to as a ‘timeshare’. You were caught unawares and signed an agreement that compels you to pay a large amount of money, some of which was taken as a deposit at the time. What can you do to cancel such an agreement and recoup your deposit?

Fraudulent and aggressive trading practices

Reports received by ECC highlight that sales people are using fraudulent and aggressive sales techniques in order to coerce consumers. Without these practices sales representatives would never manage to achieve their goal, i.e. the signing of an agreement. Many consumers subsequently feel tricked, but often too late, when the agreement has already been signed and the deposit paid.

Cancelling the agreement by registered letter

If you signed an agreement under duress, you can report these aggressive sales practices. Always emphasise this element in order to obtain a cancellation of the agreement. If the sales representative had not employed these practices you would never have signed the agreement. You must send your objection by registered post.

If you have already paid a deposit, request a refund. State this clearly in your registered letter. In view of the fact that, all too often, the timeshare sector is operated by fraudsters, it will not be easy to recoup your deposit by this method.

In some cases you have a right of withdrawal for a period of 10 days

In certain cases you can resort to your right of withdrawal to cancel the agreement. European regulations allow the consumer a right of withdrawal of at least 10 calendar days. However, this right only relates to a very specific and limited category of long-term holiday products, i.e. only agreements concluded for a minimum period of 3 years, which provide the right to use one or more holiday homes for at least 1 week per year.

This right is to be extended in due course to include other timeshare types in the wider sense of the word: the purchase and sale of rights pertaining to part-time property use, long-term holiday products and exchange agreements. In such cases the cooling-off period will be increased to 14 calendar days. This cooling-off period is imposed by European regulations, which European member states must incorporate in their national legislation by 23 February 2011. You cannot resort to this right if it has not yet been incorporated.

Request a repayment of your deposit from your credit card provider

If you paid your deposit by credit card, you can dispute the transaction with your credit card provider. This is the fastest and most efficient way of recouping your money, even if you do not have a right of withdrawal. In any case, it is important that you submit your objection as soon as possible. For further information on this procedure refer to our article "Paying with a credit card protects you against fraud, bankruptcy and non-delivery".

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