European timeshare industry struggles to stay afloat following Barclay’s loan scandal

Timeshare owners panic over uncertain future, following a desperate couple of years for the industry

Barclays win

June 2021 brought a historic win for people mis-sold loans by disgraced Maltese timeshare company Azure.

Barclays Partner Finance are currently repaying £48 million in loans arranged onsite by high pressure timeshare salespeople after being challenged by leading lawyer Adriana Stoyanova (AKA the 'Erin Brockovich of timeshare'). Stoyanova defeated the banking giant after a 4 year legal battle, and with the help of the Azure Support Group.

The relieved recipients have also been awarded 8% interest on all payments made, which in one case transformed a £35,000 payment into nearly £50,000.

Andrew Cooper, CEO of European Consumer Claims commented: "Other finance companies that formed questionable alliances with timeshare companies are readying for similar legal action. We urge anyone sold finance to buy timeshare during an onsite sales presentation to seek advice on their options from appropriately qualified organisations."

Bankruptcies

Following this landmark consumer victory, major timeshare bankruptcies have been reported in Europe at huge companies Club La Costa (CLC), Silverpoint and Anfi. Since the very first rumours of these companies going into administration, members have been promised that their ownerships would continue to function as normal, but wary owners are unconvinced.

Timeshare lawyers and claims firms have reported an upswing in enquiries about compensation claims as a way of escaping the uncertain memberships and recouping their money

Diamond takeover

Diamond Resorts, once the world’s largest independent timeshare company has been acquired by Hilton Grand Vacations (HGV).

Former Diamond owners are preparing for a sales onslaught after learning that they will become ‘second tier citizens’ in the Hilton system.

In a recent interview Hilton’s CEO enthused about their ‘20 new markets’ and 48 sales centres, which observers believe will be focussed on upgrading former Diamond owners to HGV standards at a cost expected to be an average of $20,000. Hilton have stated that they expect ‘significant value creation’ from acquiring Diamond.

"Diamond owners have traditionally been targeted quite intensely for 'upgrades' in the past by their own inhouse sales divisions," says Andrew Cooper. "That looks like it will increase significantly when Hilton take over. Diamond owners should brace themselves for heightened sales approaches."

Dated holiday system

Most experts agree that the idea of private holiday ownership systems like timeshare are outmoded and belong in the past. "It made sense once," agrees Cooper. "Back in the 80s and 90s, in the days of 'holidays from hell' timeshare provided a guarantee of quality in exclusive clubs. However in 2021 those clubs are no longer exclusive and you can stay in just about all of them through Expedia and the like. Quality guarantee is not an issue either thanks to user generated review sites like TripAdvisor.

"All timeshare does now is force people to pay for holidays whether they take them or not. During the pandemic this hit home hard and people are fed up. They want out of these restrictive contracts."

Path to freedom

Timeshare owners can seek to relinquish their ownership with the help of firms like European Consumer Claims (ECC). For owners who fit certain qualifications, they may also be eligible for significant sums of compensation due to many resorts (mainly in Spain) issuing illegal contracts for over two decades from 1999 onwards.

For those who don't fit the compensation criteria, a consultation is generally needed with a reputable claims firm to determine the best path forward

For a free, no obligation discussion about your options, get in touch with our team at European Consumer Claims

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