Question
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.
Answer
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.20% vibes
Verdict: RED (8/100)
This reply does not answer the question that was asked. The question concerned Treasury engagement with the Financial Conduct Authority on fraud involving fractional timeshare finance products, and the reply describes no such engagement. Instead, it offers general statements about tackling fraud and points consumers to redress routes such as the Financial Ombudsman Service and enforcement bodies. The person who asked would most likely need to submit a follow-up question.
How we got there
| Question item | Coverage | Specificity | Rationale |
|---|---|---|---|
| What is the nature of the Treasury's engagement with the Financial Conduct Authority on potential mis-selling of fractional timeshare finance products | Partially Addressed | Generic MISREADS QUESTION | The reply never describes any Treasury engagement with the FCA; it instead sets out consumer redress routes (timeshare regulations, and FOS recourse for a mis-sold regulated financial product in statement 10), which touch on mis-selling but not on the nature of Treasury-FCA engagement that was asked about. |
| What is the nature of the Treasury's engagement with the Financial Conduct Authority on potential fraud involving fractional timeshare finance products | Not Addressed | Generic MISREADS QUESTION | The reply offers general statements about government's commitment to tackling fraud, a coordinated response, and consumers referring concerns to enforcement authorities, but says nothing about Treasury engagement with the FCA on fraud involving fractional timeshare finance products. |