Door slams on devious time-share salesmen

Date: 08/05/1997

By Rory Watson

NEW EU legislation to protect citizens tempted into buying time-share property abroad from unscrupulous selling techniques could pave the way for more extensive laws providing similar safeguards for anyone buying a house or flat abroad.

Dutch Liberal MEP Jessica Larive, a leading campaigner for EU-wide rules on time-share sales, says the new law should be seen as a first step. “I would like to see broader legislation which would cover all transfrontier property sales, especially when people buy a whole building or apartment, not just a time-share arrangement for a few weeks a year,” she said.

Larive added that she hoped the new EU legislation would have a deterrent effect against bad practice. “Until this month, since the legislation did not exist, it was not possible to remedy the problems people faced. The industry should be regulated and that is what we have done. If a Dutch person has problems, he can go directly to his national court which can give a judgement,” she said.

The time-share directive provides for a ten-day cooling-off period during which prospective buyers can change their minds, and makes it illegal for sellers to demand a deposit when purchasers make an initial commitment.

It will also ensure that full information is made available to those considering buying a time-share property, especially on ancillary costs and conditions.

Despite the 1 May deadline for implementing the directive in all 15 EU member states, only Germany has introduced the necessary national legislation, although three other countries - Greece, Spain and the UK - have drafted bills now being examined by the European Commission and implementation measures are well advanced in the Netherlands.

But British Conservative MEP Edward McMillan-Scott, who has played a leading role since the mid-Eighties in campaigning for enforceable pan-European standards to prevent gullible holiday-makers from falling victim to time-share touts, is not alarmed by the national delays.

Drawing on the European Court of Justice's ruling in the celebrated Francovich case, McMillan-Scott insisted: “These new protections are available to citizens even if a member state has not formally implemented the measures in national law.”

As the summer holiday season approaches, McMillan-Scott insisted it would now be essential to monitor how the new rules were being applied on the ground.

He also warned that there were signs some operators were trying to relax the uncompromising ban on deposits.

“I understand the time-share industry is now lobbying national legislators to modify the EU rules to allow a third party, such as trustees or escrow agents, to hold deposits. This is strictly illegal,” he said.

Consumer Affairs Commissioner Emma Bonino has confirmed that such practices are not allowed under the EU directive.