Tens of millions of pounds in timeshare compensation awards are currently being processed through the Spanish courts, with the average claim reportedly in the region of £20,000–£25,000.
With such a large volume of claims moving forward, many timeshare companies are now under pressure and are increasingly willing to accept a surrender of ownership (so long as you meet their criteria). However, it’s crucial to understand what may sit behind a “hand it back” offer: when you sign a timeshare relinquishment form, you could also waive your right to bring a claim against the resort.
These are often the same organisations that originally sold in a high-pressure environment. The offer may look straightforward, but the small print can include a timeshare surrender waiver clause like the following (or words to the same effect):
“If you agree and sign this document, you will waive your right to claim now or in the future.”
In recent months, we’ve been informed that major European timeshare brands, including Club La Costa World, Diamond Resorts, Anfi and others, are attempting to sidestep legal obligations and misinform members as a tactic to encourage them to sign a timeshare exit agreement and waive any claim.
We asked M1 Legal to reconfirm the factors that could contribute to a successful timeshare claim:
- Fractional Ownership
- Points
- Floating time
- No specific unit information together with the date and time of check-in and check-out
- No land registry information
- No end date, or an end date that exceeds 50 years (in perpetuity)
- Payment of any monies during the initial cooling-off period (which, in some cases, can be extended by 3 months)
- Failure to issue full contractual information as required by timeshare law
The combination of these factors is explained in the victory reports published by M1 Legal – you can view them here: https://m1legal.com/our-victories
Before you make any decision, ask yourself: are you prepared to throw away all the money you’ve invested so far?
In recent months, some resorts have found themselves in serious financial difficulty due to the volume of judgments against them and have been forced to close for good. The latest victim was Silverpoint.
IS YOUR RESORT NEXT?
In a recent victory, a Spanish judge stated that “Club la Costa World are a conglomerate of companies where the intention is to avoid the legitimate rights of the clients through the instrumental mechanism of diluting their contractual obligations and the ownership of the affected properties, with the purpose of hiding and protecting the solvent company that could comply with the obligations acquired... Therefore, the fraudulent use of all these companies with the purpose of causing damages to third-parties (clients) lead to the doctrine of lifting the veil”. This was also published as a press release and is viewable HERE:
TOTAL VALUE OF CLAIMS IN COURT BY RESORT
TOTAL VALUE OF COURT AWARDS BY RESORT
This is only one company – imagine how many more timeshare claims are currently working their way through the Spanish legal system.
One last point:
With no clear end to COVID-19 restrictions at the time and some resorts still remaining closed, these are difficult times. But is it acceptable for resorts to misinform the very people who have supported them, while still expecting maintenance fees when owners are unable to use their timeshare?
WHAT ARE YOU GOING TO DO WHEN YOU RECEIVE YOUR NEXT MAINTENANCE FEE BILL?
For friendly timeshare advice, call today on 01491 529029
OR
Find out what your claim could be worth with our simple claims calculator. Click the button below to get started.
