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 OLE
SIGURDSSON INTERVIEWED
extracts from the Reporter Magazine , October 2001
R: Timeshare
is a rip-off. Isn't it far better to have a nice hotel room?
O: Timeshare ownership
is quite simply an alternative holiday system. This alternative
provides a unique form of quality holidays in a fully equipped apartment
instead of a hotel room. Furthermore, the majority of the timeshare
resorts include far greater landscaped spaces and areas with installation
for services and leisure than a standard hotel.
R: But who wants to holiday in the same
place every year?
O: The beauty of
timeshare is the flexibility of the system. Not only can you make
internal exchanges-which allows you to visit your own resort at
different times of the year within the season you have purchased-but
even more exciting is that through your membership in an international
exchange company, you can exchange your week or weeks ownership
to more than 1,200 destinations around the world. Both the number
of destinations and the number of countries where timeshare is found
are constantly growing.
R: The timeshare industry is full of rogues,
isn't it?
O: Obviously, like many other industries
or trades, timeshare suffers from time to time from a negative image
due to some few dubious operators who make 'good' press material.
Having said that, the absolute majority of the companies on the
timeshare industry are carrying out their business activity in a
professional and ethical manner, following the laws and regulations
being implemented throughout the European Community and also via
the codes of ethics created by OTE.
R: What laws are there to protect people
purchasing timeshare?
O: Following the European Community approval
of a Timeshare Law, all the member states have passed laws andregulations
for the timeshare industry. In Spain the law is known as law number
42/1998 and became effective as of January 1999. This law is extremely
consumer friendly and gives full and absolute protection to the
consumer. One of the most important aspects is that it allows the
purchaser a period of 10 days to unilaterally cancel the timeshare
purchaser contract, at absolutely no penalty cost. This cooling-off
period is very unique consumer protection and I, as of date, only
applied in Spain to the timeshare industry. Consumers purchasing
from an OTE member also get additional protection through its codes
of ethics.
R: What is your organisation doing to stop
the rip-offs and scams?
O: OTE last year dedicated more than £100,000
of its limited budget to pursue those operators who are 'circumventing'
the law and carrying out commercial fraud in the name of timeshare,
Neither their product nor their sales contracts fall under the requirement
of the timeshare law. OTE is collaborating with the authorities
and politicians in identifying the problem and instigating litigation.
R: Timeshare people talk about fixed weeks,
floating weeks, packs, points…..doesn't this add to the confusion?
O: I repeat, timeshare offers a vast variety
of ownership and benefits. Since the first introduction of timeshare,
which was limited to a fixed week purchase in a fixed resort, the
product has over the years developed with many user-friendly alternatives.
These include 'three-year trial memberships' for the purchaser who
does not wish to make a full commitment before 'test driving' the
system, and 'flexible weeks' whereby ownership falls within a season
period and not a fixed week. The 'points system' offers the ultimate.
Points enables the owner each year to take as many worldwide holidays
their number of points allows, including cruises, with the option
of saving unused points from the previous year, or 'borrowing' points
from the following year.
R: How does timeshare benefit me?
O: Purchasing timeshare is a long-term
investment in future quality holidays. The benefit of owning timeshare
is that you have ensured for many years to come-which in Spain is
normally 50 years-that you and your family have direct access to
an organised and very flexible worldwide holiday system, including
fully serviced apartments in resorts which include far more leisure
installations than a traditional holiday package can offer. The
services furthermore include a one-stop shop- a single phone call
can sort your accommodation and transportation needs for that specific
year as well as travel insurance and other special requirements
at very competitive prices. Your ownership can at any time be passed
to your children, family or friends without limitation and at your
free will. Purchasing timeshare will 'upgrade' one of the most important
times of the year for you and your family, providing enjoyable memories
for years to come.
R: Tell me about OTE, what is it, how can
I be certain it is a bona fide organisation? Your interests are
surely those of the industry players not the consumers?
O: OTE-Organisation for Timeshare in Europe-is
the official trade association for the timeshare industry and represents
approximately 300 members with legitimate interest including marketers,
developers, exchange companies and lawyers. To be accepted as a
member of OTE, there are special requirements of standards which
must be strictly adhered to, and an applicant is refused if he cannot-either
by past or present track record-fully comply with the set standards.
The members have to comply with all the requirements of the laws,
ordinances, rules and regulations as well as the code of ethics
of the organisation. OTE through its constant collaboration with
the various consumers' organisations, as well as
through direct contact with the consumer,
has its finger on the pulse to directly
monitor members' activities. When a complaint is received in relation
to a member, OTE very rapidly interferes and the vast majority of
the cases are solved to the satisfaction of all parties. Most complaints
OTE receives relate to non-members, and in these cases OTE provides
advice to the client. If a non-member commits constant fraud then
OTE brings the matter to the attention of the relevant authority.
R: Can you give me any advice to avoid any
potential pitfalls when buying timeshare?
O: First, and utmost, make sure that the
marketer or developer you are considering buying from is a member
of OTE. Second, spend sufficient time to carefully read the contract
and hear specifically the disclosure documentation, which by law
you are entitled to receive. Finally make sure the contract provides
you with the requirement of a 10 day unilateral cancellation period
without any penalty. If during this cancellation period you wish
to be further ensured, seek legal advice. Only then should you proceed
with your purchase. I can assure you, if you follow the above simple
recommendations, you and your family can look forward to many years
of quality holidays.
R: If down the line I no longer wanted it
could I resell at a profit?
O: The quick answer is no. Remember timeshare
is not an investment as such in property, shares or other traditional
financial investment, but an investment in future holidays for you
and your family. Yours 50 years ownership is a right of use, whereby
you have guaranteed yourself of no further increase in the cost
of the accommodation expense due to inflation, other than the limited
yearly service charges. having said that, I have experienced since
my involvement in 1984, that some owners have, following many years
of use of their timeshare week, been able to recover all or part
of their money, while others have received a small profit. OTE can
recommend names of members who solely dedicate their business activity
to resale.
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