Timeshare - Macdonald Resorts

harmudge · 9 July 2014 at 8:56PM

We own 2 timeshare weeks in a Spainish resort. Purchased in 1998 for about £5500.

We have now recieved notification of a Special General Meeting next month to discuss proposals to change the exisiting constitution.

The proposals are:

That the club will move from a fixed week/apartment to a flexible week/apartment. This means that the apartment that we originally chose and purchased will no longer available to us for use.

Secondly, if we decide that we do not want to continue and would like to give back our 2 weeks, we will need to pay £4000.

I am having difficulty understanding if legally or even morally this is correct. Basically something we have paid for is being taken away and if we want to give it up we will have to pay more?

I appreciate that the timeshare business is full of problems and would be grateful for any info or advice as I am attending an information/question and answer session next week with the commitee.

Many Thanks

Lewis31 · 11 July 2014 at 8:24AM

I too, am a Macdonalds timeshare owner with concerns about these proposals.

It seems the timeshare (that I do want) will be replaced by 'points' (which I don't want). I don't understand why I should then pay to lose these. Our club committees are constantly reminding us about 'dodgy' resales sites, and this seems to be a similar deal.

I heard about the proposals yesterday, (July 10th), the Special General Meeting is in 20 days time - short notice.

It seems that Macdonalds resorts will be able to choose the apartments available through their 'points' system. We may be left with less desirable or inappropriate apartments to use.

I hope that other members of the resort clubs understand what is being offered to us.

Dun4609 · 11 July 2014 at 4:25PM

I also received my notice of SGM today. I feel owners wishing to leave the club are getting a raw deal. Why should they have to pay to give up something that they originally bought? Seems owners who have paid their management fees are having to pay for the bad debts incurred by other owners! I currently exchange my timeshare week. If I wish to continue to do this I will have to reserve a week before I can deposit it for exchange! I would prefer to keep things the way they are unless a better deal is offered to those wishing to exit.

TeeC · 16 July 2014 at 10:07PM

We too were sold 3 weeks as an investment for the future a few years ago before Macdonald Resorts Ltd (MRL) bought out Barratts International Resorts and were given short notice of the vote to change the resolution. We attended a roadshow run by MRL to discuss these issues and how it will affect owners. When the exit fee of 4 times the management fees was questioned, we were told in no uncertain terms that this has to be paid and is non-negotiable. It is to compensate MRL for loss of contractual rights! We were told that our weeks have no value as no one wants to buy them, so MRL need to be compensated. However, any vacant weeks will be rented out so MRL will be compensated anyway. Why do we have to pay for past debts and defaults when MRL took on the business from Barratts and will benefit from future profits while owners who want to leave are expected to financially support and get nothing in return. Is it legal to charge these exit fees?

Lewis31 · 17 July 2014 at 1:58AM

I found this article very useful:

timeshareconsumerassociation.org.uk/2014/07/14/dona-lola-resort-update

I can't imagine that it would be legal for our contracts to be changed by a club vote!

TeeC · 17 July 2014 at 12:39PM

Thank you for the link. It is very informative. How many other feel the same way? I wonder what is the best way to proceed?

Alan_Bowen · 17 July 2014 at 4:09PM

I am not a specialist in timeshare law but from what I can read between the lines, they are trying to get agreement to change the Articles of Association of the business and this requires the agreement of 75% of the members who vote. You may be certain the management have tried to make sure that they can achieve this and probably without the agreement of people such as those posting here. Talk to the Timeshare Consumers Council as between you, you might need to take legal advice as to the way forward. I find it strange that they would consider a decision by you to leave when they are proposing a complete change in the nature of your 'investment' as a breach of contract but the change proposed to take away your rights to a specific week's occupation of the property as not being a breach of contract. I suspect there are a number of resolutions, one of which may well be along the lines of you agreeing that any change will not be considered a breach. If you can talk to others who you know from meeting them at the resorts, there is strength in numbers.

Armadale1 · 18 July 2014 at 8:57PM

As an owner at LeilaPlaya this also affects me. We have a facebook page for concerned owners and would welcome any feedback or advice its called MRL owners group. Not sure we will have enough votes to stop the change so may need to take the legal route however macdonalds have tatoc on side

Dun4609 · 19 July 2014 at 9:32PM

I am going to vote against the resolution and if we lose the vote hopefully there will be enough support to fight the decision!

TeeC · 20 July 2014 at 9:20PM

I agree. I feel we are being bullied into this with such short notice given and a complete non negotiable exit option as stated by the CEO at the roadshow. I hope enough owners feel the same way and we can all come together to fight the big corporation.

GCN · 20 July 2014 at 10:33PM

Lelia Playa owner in the school summer holiday and only want what I paid for, not options. Vote No. If you had points can you sell them like the highly sort after school holiday weeks?

Timeshare - Macdonald Resorts

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