A practical guide to avoiding timeshare claims and relinquishment scams – and steering clear of firms that simply cannot deliver the outcome you need.
A dirty business
It is no secret that the timeshare industry has attracted nefarious characters for decades. It offered easy money in an environment designed for selling: holiday resorts and luxury apartments are hard to resist when you are relaxed and enjoying a family break. It is well-established psychology that people in a good mood are more likely to say yes (which is why you ask your boss for a pay rise when they seem upbeat).
Bad actors flocked to timeshare and pushed the boundaries further and further. They sold apartments that would never be built. They lied about amenities that would never exist. They promised buy-back schemes that would never materialise, and claimed there would be reasonable limits on maintenance fee increases.
The industry was also used to launder the proceeds of crime on an unprecedented scale and, by 1999, authorities had focused significant resources on reining in illegal activity, arresting many key criminals.
Laws were also enacted to protect consumers from high-pressure sales.
Bad actors react
These new rules forbade companies from taking deposits during the cancellation period, which is currently 14 days in Europe. In practice, those two weeks give a buyer time to get home and reassess a major timeshare purchase – their finances, and whether the commitment still feels sensible – without the pressure of the sales environment.
Timeshare companies knew that if they could not lock people in by taking deposit payments during that ‘holiday euphoria’, sales would fall sharply.
So what did they do?
They ignored the law completely, continuing to take as much money as possible on the day of the presentation. They also knew the infamous Spanish bureaucracy would work in their favour. Anyone attempting to sue could be worn down by red tape, delays and repeated rescheduled hearings. With lawyers prolonging matters even further, even the most determined British timeshare victim could run out of time, money and patience after endless hearings and appeals.
Claims firms: the good and the bad
Then came claims firms.
Where individuals might be forced to give up in the face of delay tactics, claims firms could persist: contesting time-wasting appeals, attending every delayed hearing and staying the course until victory. A watershed moment was Tove Grimsbo’s precedent-setting victory over Anfi in 2016. It opened the floodgates to potentially billions in timeshare claims linked to decades of lawless behaviour at the expense of customers.
The success of claims firms on behalf of their clients has been so extensive that some of the biggest names in European timeshare are closing down, with many entering various stages of bankruptcy, administration or liquidation.
With all this legitimate work available, you might wonder why any firm would bother scamming people.
- First, selling a service and then not providing it makes every pound of the fee pure profit, because there are no delivery costs.
- Second, many of the people behind scam firms are the very same crooks who can no longer earn their living in the timeshare industry.
This group is used to lying and cheating for a living. They also have in-depth knowledge of timeshare, so they can set up a scam claims or relinquishment operation and sound just as convincing as a genuine firm.
So how do you tell a trustworthy firm from a scam?
Legal fees are not cheap, and no genuine firm can afford to tie up that much working capital on clients’ behalf while waiting for an award. With thousands of clients, that would mean millions of pounds.
In other words, upfront fees can be normal – but they also provide cover for scam firms who want to take the money and disappear.
With so much at stake, it is crucial to choose carefully when instructing a timeshare claims or exit firm to act for you.
As with most modern scams, the warning signs are there if you know what to look for:
- How long have they been trading? Choose a company that has been registered for a long time. Scam firms rarely last more than weeks or months before their online reputation collapses. They then change names, form new companies and start again. Any company incorporated recently should be treated with extra caution.
- Do the reviews stand up to scrutiny? Check what customers say about the firm on Google Reviews and Trustpilot. A strong profile will include plenty of 4- and 5-star reviews, but always read the negatives too. Every business makes mistakes; what matters is how they respond. Are they defensive and in denial, or respectful and willing to put things right?
- Do they publish video testimonials? Videos of real clients sharing their experience can tell you more than written quotes. It is easier to judge credibility when you can see and hear someone speak. Ideally, these videos should be audited by a trustworthy external authority.
- What does their wider online footprint look like? Look for a company with an overwhelmingly positive internet profile across multiple sources. Ideally, independent platforms should broadly agree that the business is legitimate and capable. If there is the odd negative article that seems out of place, consider who published it and why (for example, a competitor).
- Do they have real offices you can visit? Many scam firms hide behind “virtual addresses” in buildings used by thousands of companies. Credible businesses have genuine physical offices where their team works. Those offices should be accessible to clients – in person or via Zoom.
- Can they point to a clear, verifiable track record? Look for firms that publish their victories in a way prospective clients can check.
- What do reputable media outlets say? Are there positive reports from high-quality media that are likely to fact-check thoroughly?
- Does their website and marketing look professional? Scam operations that do not plan to be around for long often cut corners on website quality and promotional output. Watch for poor design, spelling and grammar errors, or a general lack of care and detail.
- Will they let you pay by credit card? Fraudsters often push for bank transfer. Credit card payments can offer protection; bank transfers generally do not. If a firm insists on bank transfer, ask yourself why: can they not absorb card fees, can they not obtain card payment facilities, or do they not want you to have a route to recover funds if you feel misled?
- Do they work with reputable legal partners? To achieve the outcomes they promise, a claims firm needs a close working relationship with legal partners in the UK and in Spain. Many claims are against Spanish resorts, so Spanish lawyers are essential to navigate the legal system. For various reasons, SRA-registered UK solicitors are important too.
More advice?
There is an excellent website called Timeshare Trust UK, which provides advice and resources to help you research claims firms. There are also independent consumer associations that will advise you for free.
To discuss timeshare problems with an expert at the Timeshare Advice Centre, get in touch with our team and request a free consultation.
