Timeshare companies pointlessly delaying compensation payouts

Timeshare companies fight tooth and nail to avoid paying compensation.  Their resistance is doomed to failure, provided claimants stay the course

Mis-selling

In 1999, in response to public outcry over the way timeshare companies were doing business in Spain, new legislation was enacted to protect consumers.

From the 5th of January that year it became illegal for companies to take a deposit on the day (or within the cooling off period.)  Contracts could no longer be for over 50 years, and detailed information had to be given regarding what consumer was buying.

Much of the timeshare industry made the strategic decision to ignore the rule changes, in pursuit of short term profit

Claims firms

Spain is a country mired in bureaucracy and red tape.  For several years after the rule changes, many timeshare companies continued to operate illegally, insulated by the sheer difficulties faced by wronged clients seeking redress.  

In response a new industry of specialist claims firms sprung up to handle the process and for a fee any mis-sold timeshare owner now had access to justice.  MIllions of pounds worth of judgements started being awarded annually against rogue timeshare firms.

Provided consumers qualified for compensation, and managed to avoid the many scam operations  masquerading as legitimate claims firms, they could now outsource the hard work to experts.

Delaying the inevitable

Timeshare companies rarely accept the judgements against them without a fight.  In general they automatically appeal all the way to the Supreme Court.

"It's difficult to understand why they go through all the appeals," says Daniel Keating, Information Officer for the Timeshare Consumer Association (TCA).  "Once a judgement is awarded, it's pretty much inevitable that it will be upheld by the subsequent courts.  Personally I don't recall any successful appeals.

"The effect it does have is to delay payment of the awards by over a year.  One can only assume that the timeshare companies are hoping people will lose patience and give up.  Fortunately this tactic no longer works once the claimant has retained a claims firm.   These firms know to stay the course and that eventually the money will have to be paid.

"Considering the extra expense incurred for very little chance of success with these appeals, it smacks of desperation.  We have noticed the process streamlining and speeding up recently, and perhaps timeshare companies will learn to accept the inevitable."

Beware scam firms

"Sadly most firms offering to help with compensation claims are fraudsters," warns Keating.  "They will take your money but then disappear.  

"We keep a white list of who can be trusted here at the TCA, as well as a black list of firms to avoid.

"Before giving money to any firm offering this service, please do give us a call on the contact details below for free, confidential, expert advice on this, or any other timeshare related issue."