A guide to the timeshare claims process

Timeshare compensation claims.  Can they really be made, and if so what should you look out for?

Timeshare claims are probably the biggest single subject we deal with here at the Timeshare Consumer Association (TCA).  Are they real?  Do I qualify?  How do I avoid scams?  Should I pay money up front?  How long does it take?  Is it worth the hassle?  

Below is a guide drawn from our team's experience, and the feedback of TCA callers.  

Are timeshare claims real?

Yes they are, but only if you fit certain qualifications.  Spain is the busiest European country for timeshare activity, and it was there that laws were enacted to protect consumers.  Spanish resorts almost universally ignored those laws, and continued to issue illegal contracts for over 2 full decades.  In Spain the legal wheels turn slowly, but with crushing momentum.  

Years later finally the creaking bureaucracy of justice is catching up with rogue operators, and they are being forced to pay sizable amounts of compensation to consumers.  So much money is being awarded to mis-sold consumers that major European timeshare operators are toppling like dominoes 

Ok, but do I qualify?

This is very important.  If you don't qualify, do not let scammers sell you a service they can not provide.  There are many situations in which timeshare owners do qualify for compensation (too many to list them all here) but, provided you bought your membership in Spain, during or after 1999 you do qualify if you fit any one of the following three criteria

1. You paid any money before the end of the Cooling Off Period
2. Your membership contract was for over 50 years
3. You were sold floating time or points

If you fit any one of the above, it is definite that you qualify.  

If you don't fit any of the 'big 3' there are many other situations which could qualify you for compensation, but that is where it gets tricky.  There are too many ways to list here, so you need to seek advice on your precise situation.  

There are reliable claims firms that will give you a free, truthful appraisal.  But if you (understandably) feel that would be too much like a turkey asking the butcher for advice on Christmas plans, then there are several independent consumer associations (like us here at the TCA) who you can contact for honest, free, expert advice.

How do I avoid scams?

There are very sophisticated scammers out there, but here at the TCA (together with our sister site timesharetrust.co.uk) we have identified several giveaways that will help you see through most of them.  While these guidelines won't confirm a genuine firm 100%, it will highlight most scammers

• Is the company registered with Companies House? If so for how long?  The amount of time should match up with any claims of how long they have been in business for on their site.  Clearly the longer a company has been in business for, the more likely it is to be genuine
• Does the company have real physical offices (not just a trading address)?  Can you visit them there, or at least have a Zoom tour and look around?  If so it means they have nothing to hide.  Scam companies will never let you see or visit where they operate from.
• Does it feel professional?  Do they have a professional looking website and marketing material?  Is the phone number a mobile or landline? (better still a freephone number).  Is their email a domain name consistent with their website and business name? Not a free account like hotmail or gmail)  Do they have active social media profiles?  These indicators will give you a good idea of whether the organisation is genuine, healthy and trustworthy
• Does the company have proof?  Can they show the lawyers they work with, together with bar association numbers?  Can they provide verifiable evidence of past success?  Do they allow you to meet team members, either by Zoom or in person?  The answers should be yes to all of these questions
• What are their reviews like?  Are they well reviewed on TrustPilot? Do they have actual video reviews from real clients (not just written ones) on their website?  In modern business, user experience from previous clients is getting easier to find.  Honest companies embrace this and are happy for you to see how their customers feel about them

Asking yourself the above questions will help you weed out obvious scammers.  Keep in mind that here at the TCA we keep an updated black list, grey list and white list of current operators.  You can contact us any time for free, in depth advice on your unique situation.

Should I pay money up front?

There isn't a way around this yet.  Unfortunately both scammers and genuine firms want you to pay them upfront, but for different reasons.  

Scammers know that after they receive your money they are home free, ready to move to their next victim.  They know that whatever you pay them initially is all they will get, so they are keen to get as much as possible before they disappear.

Genuine firms also need to be paid upfront but in their case it is because they have actual outlay to cover in taking on your case.  So either way you have to pay 'on trust' so to speak.  The important thing is that you give the payment only to to a genuine company.

Trustworthy companies are more open to both instalment plans, and also purchasing more of the final payout.  EG they can charge you less upfront, in exchange for a higher percentage of the compensation award when it comes.  This attitude makes clear that they are confident in their ability to achieve the result they promise.

How long does it take?

The claims process is far from immediate, but the good news is the timescale is shrinking all the time.  

The reason?  Every time the claims firms and/or timeshare law firms overcome another legal trick used by the timeshare resorts to delay or attempt to avoid their legal obligations, it speeds the process up because that trick no longer works.  All experts are in agreement that timeshare companies are about out of manoeuvres.  

Generally people are now waiting between 12 and 18 months for their compensation.  Although in some cases where insolvency is involved, the awards can be quicker.  Marriott Vacation Club (for example) have recently even been paying compensation awarded against them within a few weeks, without any fight at all.  They have accepted that there is no way to avoid their legal obligations and are doing the right thing

The other timeshare companies are expected to follow market leaders Marriott.  Speedier payouts are looking increasingly likely

Is it worth the effort?

This is down to the individual.  If you have a genuine claim, are dealing with a capable and trustworthy firm, then you also need patience as it could take over a year (sometimes 18 months) to get your compensation awarded.  

The good news is that provided you are dealing with a reputable claims firm, and they confirm you have a genuine claim, they have close to a 100% success rate.  Eg if they say you qualify for a claim, you will succeed in that claim.

The initial cost compared to the amount of time it takes to get the award, when compared to other investments is a smart choice by anyone's standards.  You need to be able to afford the fees in the short term, and be able to wait during the medium term for the lawyers to work their magic, but if you can do that then the risk/reward ratio is a no brainer.  

You also need to consider that a successful claim gets you of the timeshare commitment as well as securing you a respectable chunk of money into the bargain (average compensation awards are around £20,000 according to the leading claims firms).

Summary

• Check you qualify
• Choose a trustworthy claims firm
• Make sure you can afford the fee (bearing in mind the amount of money you likely to be awarded)
• Be prepared for the wait

For guidance on this, or any other timeshare related issue, contact us at the Timeshare Consumer Association for free, expert, confidential advice.