Monitoring of Legal Services – Consumer Problems – Time Shares

The Scottish Legal Aid Board (SLAB) was given a role in monitoring the availability and accessibility of legal services in the Legal Services (Scotland) Act 2010. Our role is to ascertain whether people or organisations are experiencing systemic problems getting the help they need from solicitors, whether paid for by legal aid or on a private basis.

This paper sets out data collected in relation to timeshares, and SLAB’s initial assessment for the purposes of its monitoring duty.

Feedback will help us to develop our overall understanding of possible problems with access to solicitors for contentious consumer matters in the area of timeshares.

Overall context for legal services and consumer issues

Figures from the Civil Module of the 2012/13 Scottish Crime and Justice Survey state that of those respondents who experienced a civil problem within the previous 3 years, 10% experienced problems with faulty goods or services: this makes problems with faulty goods and services the second most prevalent civil problem reported in the survey.[1] We assume this category will include ‘goods and services’ generally, in addition to various specific consumer sub-areas. We anticipate that problems regarding timeshares will be included within this figure, forming a very small minority of the overall figure.

There appear to be around 600,000 timeshare owners in the UK,[2] though it is unclear how many of these are in Scotland. The peak of timeshare use in was in the 1980s: the use of this kind of holiday arrangement has now declined, with reports that as many as one fifth of owners are now trying to exit unwanted or unaffordable contracts[3]. There have been reports of problems in the timeshare sector with owners being unable to arrange exit from timeshare arrangements (including rogue traders targeting people attempting to sell); misrepresentation and aggressive selling practices; and the resulting disputes in these areas.[4],[5],[6]

Role of solicitor services

For consumer problems overall, we would expect solicitors to be involved mainly in complex disputes which have reached court. Data from the Scottish Court Service suggests that very few small claims cases that do not relate to debt are raised in the Sheriff Court.

Table 1: Non-debt small claims cases initiated in the Sheriff Court

We assume that the role of solicitors in this area is likely to be small, with solicitors involved in only the most protracted disputes. Desk-based research did not find any Scottish firms which claimed specific expertise in timeshare cases.

The extent of legal aid in timeshare cases is minimal, with only a very small handful of cases mentioned in SLAB’s data covering the past 3 years. Only a handful of cases mentioning timeshare issues were made in the last 3 years under SLAB’s ‘Breach of Contract’ and debt codes: the total number of relevant advice and assistance intimations appears to be fewer than 10 since 2010.[7]

The majority of legal advice on timeshare issues is likely to be provided by other types of advice providers; notably specialists in consumer issues such as Citizens Advice Bureaux (CABx), or local authority Trading Standards teams where available. Citizens Advice Scotland data shows that there were 106 timeshare enquiries made to CABx in 2013-14.[8]

Industry-specific bodies, such as the Resort Development Organisation and TATOC (the UK Timeshare Association) also provide assistance in this area, with their own specific dispute or mediation services and consumer guidance. In 2014, the TATOC Consumer Helpline website (UK-wide) received 600 visits per month in relation to cold-callers alone,[9] of which only 2% were complaints against timeshare products or services. It seems reasonable to conclude that similar industry-specific resources form a much larger part of legal advice on timeshares than solicitors and traditional legal services.

Geographic Coverage

The data we currently hold is not sufficient to enable us to make any comment on the geographic availability of legal services in the area of timeshares or the availability of advice more widely. We have received no information about specific instance of problems in this area which suggest systemic access problems in relation to location.

Overall summary of the availability and accessibility of legal services

As with the other sub-topics within the area of consumer problems, we assume that for individuals seeking advice on timeshare issues, solicitors will play a relatively small role, with consumers more likely to turn to publicly-funded agencies such as CABx, the Citizens Advice consumer helpline, their local trading standards team for advice, or a relevant trade association for assistance with resolution. Individuals’ use of privately-funded solicitors in this area is likely to be minimal. We have received no reports of specific instances of problems with access in this area. From the evidence available, our initial conclusion for this area is that there is not a systemic problem with access to solicitor services, caused by issues with availability.

Probability that a systemic access problem is occurring / Reports of actual instances of problems with access / Exposure
[Probability x Reports]
1 (low) –
5 (high) / 1 (no reports) –
5 (consistently reported systemic access problems) / 1–4 Green
5-14 Amber
15-25 Red
Timeshares / 1 / 1 / 1

Questions

  • Do you have any additional data you would be willing to share with us regarding this area, or are there any other sources of data we should look at?
  • Are you aware of any specific instances where someone has not been able to find a solicitor to deal with a timeshare problem when needed?
  • Do you agree with our assessment that the role of solicitors (both legally-aided and privately-funded) is likely to be minimal in this area?
  • In particular, do you have any comments on the statement that the private market is likely to be small, and advice sought primarily from publicly-funded advice agencies?
  • Do you have any suggestions for additional organisations which we may wish to consult?

Consultees

  • TATOC (UK Timeshares Association)
  • Resort Development Organisation
  • Citizens Advice Scotland
  • Which?
  • Financial Ombudsman
  • Law Society Consumer Law sub-committee
  • SCOTSS (Society of Chief Officers of Trading Standards in Scotland)

The Scottish Legal Aid Board 1

[1] Scottish Crime and Justice Survey 2012/13: Civil Module, p107

[2]

[3]

[4] ibid

[5]

[6]

[7] Advice and assistance (A&A) helps pay for advice from a solicitor on any matter of Scots law, civil or criminal – for example, to try to settle a dispute without going to court, or to advise on whether there is a legal case to take forward. Civil legal aid helps pay for a solicitor to act in court. It covers the preparation work, as well as the hearing itself, and can provide funding for advocates and experts if needed. Only a solicitor can grant advice and assistance (make an ‘intimation’) or submit an application for civil legal aid. Some people need only advice and assistance, others need only legal aid, and some need both. Many people start the legal process with advice and assistance, and then move on to legal aid. See

[8] CAS data provided to SLAB on new issues presented to CABx 2013-14. This figure does not include subsequent contacts.

[9]