In response to hundreds of complaints about Seasons Holidays Keys products, KwikChex has conducted an investigation and determined the following.
- Seasons started persuading their existing timeshare owners to swap into the Keys product in 2008 and has continued to sell many versions of it up to the present time.
- Seasons described Keys as an alternative to timeshare. This is misleading – it’s a timeshare, but the descriptions and sales agreements provided by Seasons do not comply with timeshare regulations.
- Seasons promised that Keys buyers would enjoy years of luxury stays at all their resorts. They have since informed Keys buyers that they have been demoted to a previously unheard-of ‘Core Member’ status and are excluded from ‘Luxury’ level accommodations.
- Seasons induced sales by representing Keys as an attractive financial investment with a good prospect of substantial financial returns, in addition to the benefits of holidays. This is evidenced by several documents provided by Seasons at the time of sale. From 2010, it was specifically prohibited by law to sell and market timeshares as an investment in the UK. Many Seasons owners invested huge sums in the scheme, with some taking out substantial loans, using life savings, or cashing in pensions and solid investments, and now have grave concerns about their financial futures.
- Seasons used phrases such as ‘co-ownership’ and ‘based on freehold’, leading people to believe they were purchasing a property asset. No one who has invested owns any shares in any property.
- In explaining why Keys was a good investment, Seasons made comparisons between the accommodation within the scheme and residential property, implying that it would increase in value at the same rate. The properties within the Keys scheme are holiday lodgings, often prefabricated structures, or what are known as ‘static caravans’ – they cannot be used as permanent residences. They are also subject to many rules and ongoing charges imposed by Seasons.
- Seasons presented the end-of-term process (after 16 years) as straightforward, with all investors receiving their choice of either a substantial cash sum or an additional 16 years of cost-free holidays. Although some contracts have already reached the end of the term specified, no investor has received any money from the scheme, and Seasons has altered and diminished the ‘rollover’ option to such an extent that it has rendered it pointless.
- Based on what Seasons told them, Keys investors assumed they would not have to make any contributions to the upkeep of the properties or pay supplements to use the accommodation. Seasons has now stated that the ‘investors’ are obliged to pay substantial upkeep charges for an undetermined period (with some Seasons representatives indicating it could be for several years) after the contracts have ended, without the benefit of being able to take holidays at the resorts. The already substantially diminished rollover option includes as yet undisclosed additional charges.
- The Seasons contracts state that in the 15th year of the contract, investors will need to make a decision on whether to ‘cash-in’ their Keys products or take the ‘rollover’ for 16 further years. Seasons are pestering Keys investors to make this decision long before the 15th year, stating it is essential that they attend face-to-face meetings to discuss their options immediately. At the meetings, Seasons representatives tell the attendees that they are currently exposed to previously undisclosed, ongoing, substantial charges and that the rollover option is not viable – before attempting to persuade the attendees that the only sensible way to proceed now is to buy a new product from Seasons for (usually) around another £10,000.
- Seasons stated that the Keys scheme is protected by the placement of designated property assets into a trust scheme controlled by Hutchinson Trustees. The documents issued by the trustees are described as “fractional certificates.” It has been confirmed by the trustees that no purchaser has been assigned any property rights and that they are members of a scheme referred to as a Floating Fractional Timeshare. The trustees also confirm that in the vast majority of cases, no specific property has been allocated to the Keys purchase, meaning that no rights are held by the purchasers over how the properties are managed, rented or sold. Hutchinson Trustees have stated that they were unaware of the manner in which Keys was sold by Seasons. When the sales documents were provided to them, a director of the business expressed concerns.
- Keys ‘investors’ were informed that at the end of the 16-year contract term, it would be Hutchinsons Trustees that would seek valuations of the individual properties and that the trustees are responsible for the marketing and sales of the properties. Hutchinson’s Trustees are obliged to keep Keys purchasers informed of any sales process. However, some properties have already been sold, and no information was provided to Keys investors whose contracts had matured. In addition, a reply from the trustees indicated that they were not aware that one of the resorts, Brunston Castle in Scotland, had already been placed on the market, or that Seasons had claimed to have received an offer for this property.
- Many Keys scheme purchasers were persuaded to invest very large sums on the basis that, in addition to enjoying holidays, and the prospect of a cash return at the end of the 16 years, they would receive a substantial income from renting out additional weeks. This has led to some investing hundreds of thousands of pounds. Keys investors are now complaining that the money paid to them by Seasons for rentals has been far below what they were led to expect, that the rental income is decreasing each year, and that there are no, or insufficient, details on how the sums paid are calculated. Additionally, there are complaints that deductions, including significantly higher-than-expected utility charges, have been levied, which substantially reduce the amounts investors receive.
- Several hundred Keys investors have joined a Facebook group to discuss the current situation, and many have expressed their discontent and concerns. Some individuals have also utilised online review resources to express their complaints. Seasons has responded aggressively by prohibiting several people who have commented from taking any holidays at all, even though they have paid huge sums to stay at Seasons resorts. Seasons has also issued threats of defamation through their lawyers, in an attempt to prevent the complaints from going public.
- Many Keys purchasers are now making legal claims for compensation due to the sale of Keys products. These include claims being submitted in the civil courts, and where loans were taken out to pay for the Keys purchases, claims are being made under the Consumer Credit Act – one of which has already been settled by the lender, Barclays.
The situation continues to evolve. KwikChex will continue to seek remedies, provide updates, and answer questions from any Seasons Holidays Keys scheme purchasers.
Contact KwikChex
Please contact us by web form or email for the quickest response.
Contact – Timeshare Assistance
Email: info@kwikchex.com
UK Phoneline: 0044 (0)1823 510621
This is an answerphone service, please request a call back if necessary.
