With the recent legislation and rulings in the Spanish Supreme Court, there is a substantial amount of timeshare compensation currently being claimed. With many people affected by illegal timeshare contracts, hundreds of thousands of pounds have been refunded and paid out in compensation claims. The amount paid out to a client is based on each individual case but can range from a few hundred pounds up to a six-figure sum. With more and more cases opening all the time, it begs the question – Where does all the money come from?
The answer is quite simple; timeshare resorts are having to set money aside in a fund designated for the repayment of compensation claims. This a very similar situation to the PPI scandals a few years ago, with banks being ordered to pay back miss sold payment protection insurance to millions of customers. Not only is this worrying for the resorts, the looming threat of compensation claims can also be quite costly. The bad press that timeshare resorts have received over the last few years combined with the current financial climate has meant that some resorts are already selling fewer units. Even with this designated fund, there is only a certain amount of money that resorts can put away for compensation claims. An influx of compensation claims may result in a resort paying out much more then they can afford and possibly fall into insolvency.
To avoid having to make these payments, timeshare resorts are fighting hard to maintain their existing contracts, even when it is at an emotional or financial detriment to their customers or when they may contain illegal clauses. Smaller timeshare companies are at a lesser advantage as they may not have the finances needed to get themselves through this situation, but it is still necessary for justice to be done and for customers to receive what may be due to them.
Silverpoint, Anfi and other larger companies are possibly in the financial situation to have enough money to cover compensations claims and to continue their business unscarred, but to avoid paying out any compensation, these larger companies sometimes decide to move their assets and declare themselves bankrupt. It has been known that once a larger company has been declared bankrupt, the company may decide to reinvent themselves by starting a new company. They continue to sell the same products and even use the same staff. Hopefully the connection between an old company and the new one will be made, and they are then held accountable for any compensation awarded to the clients, but this cannot be guaranteed until precedents by the court are set.
Timeshare.lawyer has helped clients win many timeshare compensation claims and in all of the cases won so far, the compensation has been paid to the client directly from the resort. The client receives 100% of the compensation awarded into their nominated bank account. Timeshare.lawyer then invoices the client for the agreed percentage commission which was contracted at the beginning of the process.
In a situation like this, time is definitely of the essence. If you feel that you may have been mis sold your timeshare and to ensure that you receive the compensation that you may be entitled to, we urge you to get your case started as soon as possible.