Now is the time to decide on your Spanish timeshare compensation claim before liquidation deadlines

If you’re not on the timeshare claims train, you may want to get aboard before it’s too late…

Protecting consumers in Spain

In Spain, consumer protection laws were introduced in March 2015 to stop timeshare companies taking advantage of owners and buyers.

The reason was simple: the timeshare industry had become a free-for-all.

Unfortunately, many resorts paid little attention to the rules. They were making significant sums and, for a long time, they were able to carry on. Because illegal contracts are dealt with as a civil matter, overseas owners often didn’t have the time, confidence or energy to navigate the Spanish court system.

As a result, many people affected by problematic Spanish timeshare contracts turned to specialist claims companies for support.

These firms challenged resorts and pursued cases through the courts to seek justice, despite the hurdles and delay tactics put up by resorts’ lawyers.

At first, progress was slow and claims could take years. Andrew Cooper, CEO of European Consumer Claims (ECC), explains: "One by one, we overcame their arguments and delaying tactics. Precedents were set. Gradually, the process got easier and quicker, and now the resorts have nowhere to hide."

Time for resorts to pay compensation

Cooper says the "timeshare 'Wild West' years have caught up with the industry. We should keep in mind that these were not victimless crimes. The piles of money the resorts made came from ordinary, hardworking people, many of whom could ill afford it. It is only fitting that timeshare companies are made to pay back and compensate those same consumers they took from in the first place."

Now, many resorts are facing serious financial problems.

"They are upset," Cooper continues, "and many of them are blaming claims firms for their hardships. In fact, they have brought their situations entirely on themselves.

"Past powerhouses like Anfi, Club La Costa, Diamond Resorts Europe, Azure and Silverpoint have all been reported as suffering in one way or another, with some of these even facing liquidation."

On the fence about a timeshare compensation claim?

The issue now, according to Cooper, is that "there are many people who are on the fence about whether to make a claim." Some don’t want the hassle, or may have "bought into the resorts' narrative that a few silly rules being broken wasn't that big a deal."

But setting the moral questions aside, "making a compensation claim now could be the only way many timeshare owners come away with anything at all."

We’ve heard from several owners who wish they had taken action sooner. They lost their ownership usage entitlement and now have no right to legal recourse that they could have had if they’d acted earlier with the right guidance.

Cooper adds: "if a resort goes into liquidation, which many are doing because of the avalanche of compensation awards against them, then registered creditors have to be prioritised by the administrators."

That’s why people who may be entitled to compensation should make a decision quickly. Many could secure tens of thousands of pounds or more.

Some owners worry that a claim means they won’t be able to holiday at the resort again. In reality, many resorts can now be booked through standard travel websites — often for less.

But if the club collapses, members could lose both their money and their membership, with nothing to show for years of loyalty.

Choose carefully

It’s also worth remembering that there are many timeshare claims firms. Cooper cautions against choosing one "because they called you out of the blue, or because you found them on Google."

The unfortunate reality is that fraudsters do exist — and some will take your money without pursuing your claim.

Cooper suggests "the best advice is from another owner who you trust and who has already claimed successfully".

He also notes that consumer associations can provide guidance, and timesharetrust.co.uk is a useful starting point with resources and information.

Alternatively, you can contact Timeshare Advice Centre for a free and confidential chat.