Explaining the latest tactics used by timeshare companies to sidestep or delay paying compensation
In the wrong
For more than 25 years, timeshare companies knowingly and deliberately operated in breach of clearly defined consumer protections.
Spain (along with other countries) prohibited the sale of points and floating weeks, and restricted contracts to a maximum term of 50 years.
It also became unlawful for a timeshare company to take any payment on the day of sale or during the timeshare cooling off period law Spain provides for. The purpose was clear: hundreds of thousands of holidaymakers had been pressured into a major financial commitment that they later regretted.
Timeshare is sold on emotion. Prospective buyers are presented with luxury and persuaded they “deserve” it. While on holiday, with sun, sea and a relaxed mindset, people are more likely to agree. The law was designed to prevent consumers being exploited in exactly this way.
Timeshare companies understood that if buyers were allowed to return home and reflect, most would not proceed.
So many resort operators ignored the rules and continued selling, hoping to keep illegal practices going for as long as possible.
The dam bursts
For a long time, that gamble worked.
Over the next 17 years, resort lawyers delayed and obstructed proceedings, successfully fending off challenges. Individual claimants were often defeated by the need to travel to Spain, navigate a slow system and do so in another language.
Over time, specialist claims firms stepped in and were equipped to handle these tactics. In 2016, the first case was won by ANFI claimant Tove Grimsbo, who was awarded €40,000 in compensation.
That initial win opened the door for many more. Major European operators were ultimately held accountable, and they now owe hundreds of millions of euros in court-awarded payments. The financial impact has been so severe that many European timeshare sales operations have collapsed or withdrawn.
Gruelling delays
Timeshare company lawyers continue to search for new and “creative” ways to avoid paying victims. In reality, these manoeuvres tend to buy time rather than change outcomes. The underlying position remains the same: companies ignored consumer law to profit at customers’ expense, and the consequences cannot be avoided indefinitely.
Claims lawyers have repeatedly overcome these tactics. In cases involving timeshare mis-selling, justice can be delayed, but not avoided forever.
In 2024, many timeshare groups appear close to exhausting their remaining options.
Their current efforts to hold back timeshare compensation claims Spain largely centre on two strategies.
European Court of Justice ruling
Resorts have spent heavily pursuing arguments across multiple courts to avoid payment based on where the company that issued the original membership contract is registered.
In the past 12 months, a further delay has emerged following a European Court of Justice timeshare ruling that could, in theory, be used to challenge jurisdiction and attempt to avoid Spanish timeshare law compensation in Spain. This may impact certain Club La Costa and Diamond Resorts Europe timeshare claims.
Since the ruling, some Spanish courts have dismissed cases on jurisdictional grounds.
However, it is important to note:
- Claims lawyers broadly agree the decision is flawed and that Spanish jurisdiction should apply. Leading Spanish legal academics have also stated that these matters fall within the jurisdiction of the Spanish courts. Appeals have been filed for current claimants, and the expectation among experts is that those appeals will succeed.
- Even in the unlikely event that appeals fail, the most probable outcome would be a change of jurisdiction rather than a denial of justice. Some cases may take longer to conclude, and there may be additional legal costs. Reputable firms such as European Consumer Claims (ECC) would cover those costs, so clients should not face extra expense.
Sunset clause
Some highly exposed companies, including Marriott Vacations, have been lobbying politicians and courts in Spain to introduce a so-called “Sunset Clause”.
If introduced, such a clause could potentially impose a deadline for starting timeshare mis-selling claims Spain. It would not affect anyone who has already started a claim.
Prospective claimants should also note:
- Spain is known for slow bureaucracy. No Sunset Clause has been passed, and legislative change can take time.
- If it were to be passed, the limit is unknown. It could be months or years, shorter or longer.
The consistent advice is straightforward: anyone who believes they were mis-sold should contact a reputable claims company as soon as possible, particularly where European timeshare companies avoiding compensation are still pursuing delaying tactics.
Expert comment
"The wheels of justice might turn slowly in Spain," notes Greg Wilson, CEO of ECC. "But once they gain momentum, they are not easily obstructed.
"The legal system at all levels in this country has demonstrated a clear commitment to punishing those who ignored consumer laws in order to profit at the expense of not only the victims themselves, but also the national tourism industry as a whole.
"For many reasons, anyone who was mistreated in any way by a timeshare company would be well advised to act swiftly in terms of seeking redress."
