Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions his Department has had with the Financial Conduct Authority about potential (a) mis-selling and (b) fraud involving fractional timeshare finance products.

The Government takes the issue of fraud very seriously and is dedicated to protecting the public from this devastating crime. Tackling fraud requires a unified and coordinated response from government, regulators, law enforcement and the private sector to better protect the public and businesses from fraud.

The legislation surrounding the sale of timeshares and credit agreements relating to timeshares provides routes of redress where consumers have been misled.

Firstly, it is an offence under the Digital Markets, Competition and Consumers Act 2024 for traders to engage in unfair commercial practices which mislead consumers, and it is punishable by a fine or imprisonment for up to two years. The Act also affords rights of redress for consumers.

Regarding the timeshare market specifically, the Timeshare, Holiday Products, Resale and Exchange Regulations 2010 provide protections for consumers buying and selling timeshares and other long-term “holiday club” memberships, including provision for consumers to withdraw from their contract.

Consumers are protected from fraud in consumer law. Consumers that believe they have been fraudulently sold timeshare products should raise their concerns with the relevant enforcement authorities.

In cases where a consumer took out a regulated financial product to purchase a timeshare, they may have recourse to the Financial Ombudsman Service (FOS) if that product was mis-sold.