Directory

Access tools

Set Text size

A

|

A

|

A

Set Contrast

A

|

A

|

A

Text only
Translation
Listen

News

Timeshare Director Prosecuted

Consumer Protection Officers are warning people to think carefully before committing to timeshare holidays. The warning follows the prosecution of local timeshare property dealer, Frank Madden.

Mr Madden, former Managing Director of Bournemouth based company, Discovery Management Services Ltd, was found guilty in court on 12 April of offences under the Timeshare Act and the Consumer Credit Act. He was fined a total of £2000 and ordered to pay the Council’s costs of £1620.

Officers were first alerted to Mr Madden by resident Robin Daish. Mr Daish had been sold a timeshare apartment in Spain and was promised a free family holiday to explore the resort. When the free holiday did not materialise, Mr Daish complained to the Borough of Poole’s Consumer Protection unit.

Upon investigation, Officers discovered that the company had also failed to include legally required clauses in the timeshare contract and to inform Mr Daish of his rights to a 14 day ‘cooling off’ period after signing the contract. Nor was the company licensed to grant the credit facilities offered to Mr Daish.

Bob Williams, Executive Spokesperson for Environment and Prosperity, said: "This case shows that consumers should still think long and hard about the deal being offered and whether all the information they need to make a proper decision is available."

Peter Pawlowski, Head of Consumer Protection Services, said: "At this time of the year many of us are planning holidays abroad where timeshare sales staff operate. Remember - if you sign up after attending a presentation abroad you might not have the same protection offered by the law in the UK."

Given that the company has now ceased trading, Mr Daish is unlikely to get his £730 investment back.

Mr Daish said, "Mr Madden promised the magistrates that he would repay me straight away. His solicitor even arranged that the payment of his fine should be deferred so that he could pay me but I still haven’t received anything. Whilst I doubt I’ll ever get my money back, I just hope that the thousands of pounds he now owes to the court, will put him off trying this again with other people’s money."

Three offences were pursued under sections 1 and 2 of the Timeshare Act 1992 and another under section 39 of the Consumer Credit Act 1974.

The Timeshare Act was made to address the miselling of timeshare properties that had gone on throughout the 1980’s and early 90’s. It requires that certain information is supplied, in writing, to prospective purchasers before they are committed to buying a timeshare and some of this information must also be included in the contract itself to safeguard consumers. It also provided for the first time a 14 day ‘cooling off’ period after the signing of the contract where customers could reconsider the purchase and cancel if they wished.

The Office of Fair Trading (OFT), through the Consumer Credit Act 1974, regulates who can provide credit to customers. Strict conditions have to be met before a licence to offer credit facilities is granted and applicants have to prove themselves to be fit and proper persons to hold a licence. Mr Madden had not applied for a licence at the time his company was offering credit and his application was subsequently refused.

Jeff Morley, Consumer Protection Team Manager, Te; (01202) 261710