Considering a timeshare compensation claim? Now may be the time

On the fence about whether to make a timeshare compensation claim?  It might be time to make your mind up

Why compensation?

In 1999  legislation was enacted to protect consumers from the high pressure sales rampant in the Spanish timeshare industry.  Fearful of losing revenue many major timeshare companies opted to ignore the new laws, and carry on business the way they always had.  There was a risk that consumers could sue them in court over the illegal contracts, but resorts considered themselves insulated by the creaking, bureaucracy of the Spanish legal system

Claims firms

To every problem a solution:  Companies began springing up to manage the claims process on behalf of the mis-sold consumers.  Timeshare companies fought a losing battle to avoid their obligations, but the law was against them.  The appeals ran out, and out of legal options they had to start paying up.  The major companies are now facing millions of pounds in compensation awards.

Death blow

To many of the biggest names in the industry, these extra liabilities could not have come at a worse time.  Timeshare is increasingly seen as an outdated, inflexible and expensive way to holiday.  New member sales  revenue has dropped to minimal levels and for many companies these huge compensation awards are extremely difficult to pay.

Recently, many of Club La Costa's companies have gone into liquidation as have Silverpoint and Azure.  Diamond Resorts Europe have ceased practically all sales and marketing activity.   ANFI are also reduced to a tiny fraction of their powerhouse former operation. 

Relinquishment and compensation

Daniel Keating, Information Officer for the Timeshare Consumer Association (TCA) believes that the time for procrastination is over:  "Owners know that timeshare is clunky and expensive compared to modern bookings sites.  A lot of people just keep plodding along because it takes effort to change.

"However, disproportionately rising maintenance fees mean that non members can often stay in their timeshare resorts for less than the member pays in annual fees.  And non-members don't have to pay if they don't holiday.  Members are committed to paying fees even when they can't holiday, such as during the pandemic.  It's getting difficult to ignore that kind of unfair expense.

"A lot of owners would like to escape their memberships but don't know how.  

Daniel points out that many members can not only get out of their contracts, but also claim compensation.  "The trouble is that some owners feel guilty.  They know the timeshare companies broke some rules, but don't believe it was a big deal, and don't want to make a fuss.

"What people should remember is that the timeshare resorts didn't ignore the rules because they forgot.  It was a calculated move to disregard the protective laws, and make more money at the expense of vulnerable consumers.  It's absolutely right that they should pay."

Time running out

Keating warns that for those who don't make a choice, it could be made for them if their resort runs out of money.  "The huge amount of compensation awards may prove too much for even the biggest resorts.  If you are thinking of making a claim, do it now.  If the resort goes into liquidation, you will find yourself at the back of a queue of creditors.  Better to be at the front if possible.

"This is a moment in life where you have to make a choice.  'Do I want to stay in this system and hope the resort survives long term, or should I get out and claim the financial award I am entitled to?'  

"Luckily it is not too late for most resorts, but time is ticking.

Advice

"Don't pick a timeshare claims firm at random, or just because they called you out of the blue," says Daniel.  "This space is unfortunately targeted by fraudsters who will take your money, but then disappear.  There are trustworthy firms out there, but get advice before handing over money to a stranger.

"If you know other members who used a claims firm successfully, their advice is invaluable.  There is also a website called timesharetrust.co.uk  which gives pointers on how to do due diligence on claims firms.

"You can also get in touch with us at TCA during business hours for free, independent, expert advice."