One of the phrases which you might often hear in timeshare negotiations is ‘in perpetuity’, but what does this term actually mean, and why is it so
controversial?

What Are They?

Essentially, an ‘in perpetuity’ agreements lasts for the entirety of the customer’s life, and in some cases, even after death, the costs may pass on to
next of kin.

As such, these types of contracts are one of the most controversial aspects of timeshares and are extremely hard to get out of.

This means that many customers are now stuck with timeshares they may have purchased some time ago and no longer use but are still paying expensive
maintenance fees which could then pass on to their spouse or children.

While it would seem simple enough to sell the timeshare on, unfortunately, there is a very low demand for second-hand timeshares and this can be easier said
than done.

There have been reports of some timeshare firms aggressively pursuing elderly timeshare customers for these fees, even those who are in care homes or
suffering from illnesses such as Alzheimer’s and clearly cannot use the timeshare property.

Being hounded by debt collectors can be very unpleasant, especially for more elderly customers, and if you have a legitimate dispute, you are within your
rights to contest the debts.

Recent Developments

However, a recent ruling has provided hope as a Norwegian woman was awarded €40,000 in a timeshare dispute in Spanish Supreme Court.

The court ruled against the Anfi resort group and decided that the ‘in perpetuity’ clause of the contract was against Spanish law, which states that any
timeshare agreement signed after 1998 can’t stand for longer than 50 years.

While the resort group claimed this didn’t apply to the properties themselves were built before 1998, the court disagreed and forced them to repay all
payments and legal fees to the customer.

Here in the UK, some groups such as the MacDonald’s resort group have offered routes out of these ‘in perpetuity’ contracts, but at a cost.

MacDonald’s are allowing owners to hand back their timeshares as long as they pay four years of fees.

What Next

While the Anfi case study obviously only covers one case, it could set a very important precedent going forward, and this piece from the Telegraph estimates that it could render around 12% of the 850,000 timeshares in Europe null and void.

Hopefully, it will encourage more customers who are in unfair contracts to come forward and claim the compensation they deserve.

And while it is a positive step, it must be stressed that all timeshare contracts are different, and the laws will also vary in different jurisdictions.

It was reported that the timeshare legislation was being reviewed in the wake of the Anfi case and if you purchased tour timeshare after January 2011, you
may be protected by a law known as the Timeshare Directive.

To see if you may have a similar claim against an unfair ‘in perpetuity’ timeshare contract, feel free to get in touch with one of our experts here at Timeshare Exit & Support Services.

“No Win No Fee” Compensation Claims Please contact Mrs Glynn on 01253 208482

Monster Credits/ ABC Lawyers Claims Please contact Miss Ali on 01253 208488

Club La Costa compensation Claims Please Contact Miss Jenkinson 01253 208 483

Terminations of your Timeshare Please Contact Mrs Trippier 01253 729683.

Accounts jacqueline@tesslimited.co.uk>

Exits and Terminations: dianne@tesslimited.co.uk

Compensation: rachel@tesslimited.co.uk

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Posted on: 5th June 2016