Great news for Club La Costa creditors. Extra time granted to retrieve compensation money

Timeshare compensation claimants against Club La Costa  (CLC) jubilant as extra 12 months granted for administration process

Complex CLC finances

CLC owe tens of millions to former customers in legally awarded compensation, due to ignoring consumer laws for well over a decade.  The timeshare giant profited at the expense of its members, as have many other timeshare companies in Spain.  For the last 5 years, the Spanish legal system has been dispensing justice, in the form of financial compensation to timeshare victims.

Like many other 'megabucks' timeshare companies in Spain, CLC has been accused of underhand behaviour in order to avoid paying their creditors, including court mandated financial awards to illegally sold customers

Many claimants were apprehensive that CLC's labyrinthine inter-company structures would prove difficult for the administrators to unravel in the short period of time left in the initial bankruptcy. 

Compensation claims safe

"Some people were concerned that Club La Costa might try to 'run out the clock' so to speak," explains Daniel Keating, Information Officer for the Timeshare Consumer Association (TCA).  "An administration period is traditionally limited and the concern was that the money might be very well hidden, giving the administrators difficulty in locating it.

"However this extra 12 months gives the administrators all the time they'll need.  More than enough time.  FRP are one of the world's most respected and competent administration firms.  

"Club La Costa must know that it's finally over for them in terms of avoiding their financial responsibilities.

"They are going to have to pay up, pure and simple."

Don't wait

With all the uncertainty surrounding Club La Costa, members who are eligible for compensation claims are advised to consider compensation claims sooner rather than later.

"CLC are frantically promising that members won't be affected by their current financial turmoil, whilst simultaneously trying to convince people" says Keating.  "But if you had asked them two years ago if they would be declaring bankruptcy, I am sure they would have been just as determinedly pooh-poohing that idea too.

"The reality is that timeshare is an idea that has had its day.  Compared to the rest of the travel industry it is dated, clunky and expensive.  People want out, and it is possible to escape, with expert help.  For some lucky members the escape route of a compensation claim will even bring them a great deal of money in the process.

Daniel has the following warning for people wanting to get rid of their memberships: "There are a lot of scam companies out there and very few genuine ones.  If you are considering timeshare relinquishment or compensation claims, check with us before handing money to a company you found on the internet.  We keep a black list, a grey list and a white list and it is always up to date."