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Mis-sold Spanish Timeshare Claims

Timeshares in Spain

If you were persuaded to invest in a timeshare, there’s a fair chance that the annual fees have increased dramatically since purchase. Like many others you’ve probably struggled to book your chosen week in your chosen resort. You’ve also probably been persuaded to take continuing finance to fund your initial purchase and the subsequent promised benefits that were to be obtained by buying yet more points.

Many understandably feel anger and frustration knowing they have been lied to, ripped off and sold a product that’s simply not fit for purpose. Paying fees for something they no longer want or can use and fearing that if they do stop paying they will be aggressively pursued by debt collection agents or even taken to court.

But help is at hand with Beat the Banks. We can tell you whether you have the option of a claim under Spanish law, or indeed a claim in the U.K. if you chose to fund your timeshare via a loan. Maybe you simply prefer to relinquish your timeshare – we can help you with that too. All it takes is one simple call to Beat the Banks on 01382 200474, or simply complete our enquiry form and we will be in touch as soon as possible.

Background to Timeshare in Spain

Call it what you like, timeshares, holiday clubs or fractional ownership have been sold in Spain for years. The majority of contracts were taken between 2000-2009, but sales started as far back as the 1980’s. Typically they were sold based on a period of 50 years or perpetuity.

Timeshare touts lured unsuspecting victims to slick sales presentations with the promise of a genuine second-hand re-sale market and the ability to pass the “investment” to their children upon death. As much as one in six would buy on the day. Weeks could be sold a number of times and unavailability led to more mis-selling with existing clients persuaded to move to a points based system to theoretically allow them access to resorts all over the world.

Annual management fees, tied into the length of the contract, have often rocketed from as little as a few hundred pounds a year to, in some cases, thousands. Frankly in many cases you would now be much cheaper simply booking a traditional family holiday.

Can I really claim for being mis-sold

Absolutely is the answer. All we need is for your timeshare to be sold from 1999 onwards and for you to have your paperwork. Unfortunately, this is essential as it’s normally unrecoverable from timeshare companies.

There are two routes to compensation:

Firstly in Spain

In 1998, Spain brought in law 42/98. Effective from 5 January 1999, it was designed to protect those buying timeshares. Right on the back of that on 15 January 1999 came a landmark decision in Spain’s Supreme Court. They ruled that all contracts signed after 5 January 1999 were invalid if over 50 years or more. Effectively outlawing the old style perpetuity contracts that have been used since the 1980’s.

Consumer challenges to the Supreme Court have also now established the need for a cooling off period. Subsequent laws in 1998 and 2012, have made it illegal to accept payments from purchasers within the first 3 months. This also covers the signing of loan agreements within these time periods.

Further Supreme Court judgements have also established that on any timeshare since the start of 1999 the contract can be deemed voidable if it didn’t specifically detail precise information such as the apartment, the unit, the week and set arrival and departure times. This is particularly relevant if purchases were points based for example.

In the U.K.

Most U.K. investors funded their purchase by signing a loan agreement during a sales presentation or a very short time afterwards. The lack of a cooling-off period, plus the illegal or significantly flawed asset being funded can deem the credit agreement in breach of section 140A of the Consumer Credit Act. Claims against U.K. based timeshare purchases may also be possible. Claims may also be possible if the purchase was made via credit card.

Section 140A is all about the existence of an unfair relationship under the Consumer Credit Act. Agreements taken before April 2007 but still in place after April 2008 meet the criteria as do any agreements taken after April 2008

If successful the loan agreement is set aside and compensation is based on 90% of the losses incurred (payments) until that point, plus simple interest of 8%.

Am I eligible to claim?

As long as your loan was repaid in the last five years and it was a U.K. based credit provider, then you would normally have a qualify claim.

If you have not surrendered your timeshare or legally terminated your contract then yes. We can help you get compensation for the money you paid. If you did surrender your timeshare to the resort or you legally terminated it then unfortunately there is nothing we can do.

Generally speaking for U.K. based claims we operate two routes towards compensation. If the loan was for more than £15,000 or if consumers have paid more than £10,000 made up of a combination of maintenance fees, loan instalments, plus any traded purchases.

We can normally recover U.K. based loan agreements if they are current or have been repaid within the last 5 years. Your Spanish timeshare paperwork is however essential.

For small claims below £15,000, we issue these directly to the loan provider. In the event they are rejected we appeal to the Financial Ombudsman (FOS). Successful claims are charged at 25% plus vat at the current rate of 20% making our fee 30% in total. We do not charge a fee for unsuccessful claims, but for claims cancelled after our 14 day cooling-off period a charge will be made for preparing and investigating your claim to that point. Please see our one page summary.

For claims above £15,000 our route is through legal action against the lender on a no win, no fee basis. This means you pay nothing until your claim is successful. Our legal partners charge 35% plus vat at the current rate. A total of 42%. Claims are subject to litigation funding and After the Event insurance (ATE). The latter affords protection in the event your claim is unsuccessful.

Unfortunately, the very nature of timeshare sales means that often contracts were issued in the name of one company, before being swiftly transferred to another and leaving the initial company with little in the way of assets. Therefore, litigating in these situations would be pointless.

There are however some larger timeshare companies where we will consider litigating in Spain. These are:

  • Club la costa – Fractional Ownership
  • Club La Costa Points
  • ANFI
  • Marriott
  • Palm Oasis
  • Firstly, there is some initial cost. For example a fee for arranging a Power of Attorney on you your behalf. This is essential for our Spanish based lawyers to represent you. We also charge an upfront fee of £1,995 plus vat at the current rate of 20%. A total of – £2,394. This also covers for the relinquishment of your contract. If your claim is successful and compensation is paid, then a fee of 35% is charged plus Spanish vat (IVA) which is currently 21% on cases of this nature. Your initial fee of £2,394 would be refunded in full.

    Yes for a one off up front fee of £1,995 plus vat at 20% – a total of £2,394, we can arrange this on your behalf.

    At Beat the Banks our expert team are here to answer all your questions on reclaiming for mis-sold timeshares. Simply give our team a call on –01382 20474 or complete our enquiry form on this page and we’ll be in touch. You are also more than welcome to pop into our office with your paperwork.

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      Mis-sold Spanish Timeshare Claims.
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      Mis-sold Spanish Timeshare Claims.
      If you were persuaded to invest in a timeshare, there’s a fair chance that annual the fees have increased dramatically since purchase. Like many others you’ve probably struggled to book your chosen week in your chosen resort. You’ve also probably been persuaded to take continuing finance to fund your initial purchase and the subsequent promised benefits that were to be obtained by buying yet more points.
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