If you are a European timeshare owner, you would have received several calls from companies telling you that you can claim money back from a bank for a timeshare sale. In this post we will highlight the facts and fiction.
Why can I claim money back from the bank for a timeshare sale?
You can only claim money back from a bank for a timeshare sale if the bank had given a loan or finance allowing you to purchase a timeshare. Many banks allowed timeshare resorts to set up finance agreements with no official registered bank employee present. In many cases finance agreements and loans were registered as being for home improvements and furniture purchases. If a bank allowed this to happen with no follow up conversation to check the validity of the loan or finance agreement, you may be eligible to submit a 140 claim.
If you had gone into a bank before you went on holiday and asked them to lend you £15,000 to buy a timeshare, the loan would never have been approved. Bank and building societies have a duty of care toward their customers, ensuring that all finance agreements are viewed and signed off by a bank employee. The decision to authorise a finance agreement cannot be made by an employee of a timeshare resort, whether it be in person or over the telephone.
Are banks responsible if I paid using my debit card?
If a company tells you that you can claim money back from a bank for a timeshare purchase by debit card, they are likely to be a scam company. Banks cannot take any responsibility or be liable to cover the costs of bad decisions made by its customers. If your debit card was stolen and used to make a timeshare purchase, then you could file for a “chargeback”. However, this would need to be proved that you had not given consent over the purchase.
Are banks responsible if I paid using my Credit card?
Banks are not responsible to refund you the money that you have spent on a timeshare if you paid by credit card. However, if you purchased using a UK credit card, you could be protected by section 75 of the Consumer Credits Act. Credit providers have an insurance policy that protects the consumers from mis-sold products. To qualify for a section 75 claim, you must meet a certain criterion.
The product (timeshare) must be proven to have been delivered not as described. The most common claim is based on timeshares being sold as an exclusive product. If the product (timeshare) was sold as being exclusive solely to resort members and can now be booked by members of the public on hotel booking sites, then the product that you had purchased is now not as described. There is a statute of limitation to take into consideration when making a section 75 claim.
Use our compensation calculator to find out if you qualify to submit a claim.
Use our FREE compensation calculator to find if you are entitled to compensation!