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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We own a fractions holiday which we exchanged existing

Customer Question

We own a fractions holiday which we exchanged existing timeshare membership we had with the same Company. When we bought into this, we did so on the premise that out maintenance fees would be £200 per year less than we were paying. Since our purchase in July 2013 our annual fees rose by 12% in 2014 and a further 6% . Is there a set amount these companies can raise these fees and are these based on interest rates. We feel that with current average interest rates in Spain at less than 1% such huge hikes are unrealistic. The Company involved have said they need to increase fees to cover all maintenance costs but it is our belief existing members are subsidising the cost of rebuilding existing resorts or building new resorts. Any help would be appreciated.
Neal Dunn
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts : Neal my name is ***** ***** I will help you with this.
Alex Watts : please let me know what is it You would like to achieve?
JACUSTOMER-jq684g5z- :

I want to know the legality of increasing fees at the rates advised. We feel these are excessive and despite my written/emailed protest I am told that they can increase the fees by an amount chosen by the management committee.

Alex Watts : What does the agreement say about increases etc?
JACUSTOMER-jq684g5z- :

I am unable to check as I am away on business few days but recall them saying they can set the increase to meet refurbishment and general running costs. I have twice requested copies of accounts to try and determine how the increases have been calculated but nothing has been forthcoming. They merely advised me that two "members" who serve on the management committee had seen them and were advised on the methods used to arrive at the level of increase. Am I within my rights to request and insist on a set of annual accounts?

Alex Watts :

Ok - can you let me know if there is a formula or clause?

JACUSTOMER-jq684g5z- :

I have requested this information but it might take a few days to receive a reply!

Alex Watts : Sure. It is important to your answer
JACUSTOMER-jq684g5z- :

Following further request , CLUB LA COSTA are still refusing to send set of accounts and system they use any increases. Just referred me to their statement in Club Rules which says "any decisions on increases in maintenance fees will be decided by Management Committee annually". They say they have too many members to warrant sending out and associated procedures to them all. Told them I wasn't asking but want a copy myself!!! I and my wife have invested over £30000 into this vacation club and feel our request is justified. Are they legally allowed to refuse my request under both English and Spanish Law? Cant help think they are hiding something! Hope you can now advise me on this matter.

Alex Watts : Which country is your agreement governed by, it should say?

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