29 Jul CLUB LA COSTA AND GETTING TIMESHARE COMPENSATION
On 20th November 2020, Club La Costa announced via email that after thirty years of service, they were going to discontinue any new sales of timeshares. Observers saw this as a sign that the timeshare corporate giant might be heading towards bankruptcy.
In January 2021, Club La Costa was forced to confirm the inevitable when it announced that the timeshare powerhouse had been placed into liquidation due to the economic impacts of the Covid pandemic and Brexit.
But what does this mean for people who own a timeshare in the company? If you own a timeshare at Club La Costa, it might be time to cancel the timeshare contract and receive timeshare compensation before it’s too late.
Over 600,000 people in the UK own timeshares, half of which are in Spain. Recent cases in the Spanish Supreme Court have set important legal precedents that have deemed all timeshare contracts purchased after January 1999 to be inherently unfair. This makes it much easier for people who have been sold timeshares under false pretences or are unable to afford them anymore to come forward and get their fair compensation.
Find out whether you qualify for timeshare compensation today. Learn how our team of timeshare solicitors at Right to Claim can help free you from your unenforceable timeshare contract in this article.
Here’s a small rundown into the reasons why those who are claiming timeshare compensation against timeshare resorts, after this new legal precedent, are winning their cases and receiving compensation.
Mis-selling of Timeshare Contracts
The promise of a shared home abroad to spend your weekend getaways and annual holidays club la costa claims at seems like an undeniable prospect. However, we have found that many people who invest in a timeshare are often left disappointed due to several reasons. This can be either because they were promised significant returns on their timeshare investments that ended up not materialising or because they simply cannot afford to pay the annual increase in the timeshare mortgage.
For owners who cannot afford to pay the rising maintenance fees, here is what Jason Gamel, CEO of the American Resort Development Association had to say:
“If owners are having financial troubles paying their timeshare mortgage, they should reach out to their developer for help 1.”
However, even when financially stable, most people struggle to keep up with their annual timeshare mortgage. A study by the University of Central Florida suggests that 85% of timeshare owners regret their purchase of the timeshare 2.
What was promised to pay dividends for the timeshare owner in the future eventually causes the owner to regret ever investing because of lengthy financial agreements and costly maintenance fees that slowly become unaffordable. Either way, a timeshare contract can be an expensive contract, so it’s best to rid yourself of it.
Oftentimes, a timeshare company spins the truth to get more people to invest in a timeshare. Promises such as the all-year availability of rooms in the resorts you want, or the promise that the value of your timeshare will increase over time with a steady maintenance fee are very common. Some companies will even tell you that the resorts are exclusive to timeshare owners.
We at Right to Claim have helped a large number of Club La Costa members wanting to get out of their timeshare contract because they were frustrated about paying rocketing annual maintenance fees, while not being able to book the vacations that the company promised them. After Club La Costa announced its liquidation, the need to escape the timeshare contract only became more urgent.
Here is what Greg Wilson, a claims expert from the Timeshare Advice Centre had to say:
“CLC ceasing sales operations is one more indication that the industry´s days are numbered. The timeshare system of holidaying was a great innovation a couple of decades ago, but they haven’t adapted and innovated to keep pace with the rest of the travel industry 3.”club la costa claims
The Spanish High Court declared that the lies told by timeshare companies contribute to the misinformed selling of timeshare contracts, which was deemed illegal in 2015. As a result of the Court’s ruling, Club La Costa compensated the original timeshare purchase price plus the maintenance fees paid over the years in addition to added interest to the customer. The Court’s ground-breaking decision against Club La Costa set a historical precedent that legally entitles everyone who was sold these timeshare contracts deceptively to claim their money from the timeshare company.
But before you can claim to receive your timeshare compensation, you need to know whether you are entitled to one. You may have been a sold misleading timeshare if:
- You wanted to get out of the timeshare agreement but were told that you must sign a new timeshare contract to get out of it;
- You paid for the timeshare using a common method of finance such as a credit card or paid an initial deposit for the timeshare;
- You were pressured or tricked into signing the timeshare agreement;
- You were given the guarantee that your timeshare property would rise in value with time;
- You were given the false promise that you can cancel the contract at any time;
- You were not notified of the fourteen-day cooling-off period4 and payment was made during the initial fourteen days of the contract;
- You were given the impression that the maintenance charges would be significantly lower than what they were, while kept unaware of their annual increase.
If you think you have been sold a timeshare fraudulently, you might have legal grounds to make a claim and receive compensation for your spending. If any of the aforementioned situations apply to you, contact us now and we will help you review your situation and help you determine if you are legally entitled to make a claim.
Timeshare Perpetuity Contracts
You might also be legally entitled to make a timeshare compensation claim if there is no end date specified in your contract with the timeshare company. This also applies if the end date exceeds fifty years of the contract signing. This is called a Perpetuity Contract where the life of the contract exceeds the legal limit of fifty years.
In cases of an ‘in perpetuity’ contract, the timeshare owner is likely to have a stronger case for timeshare compensation.
In case the lifespan of the contract goes over the timeshare owner’s lifetime without exceeding fifty years, the responsibility of regular maintenance fees falls onto the shoulders of the contract holder’s successors until the end of the contract. This can be a financially stressful situation for the contract holder’s family especially if the contract holder’s children are not financially stable enough to pay the hefty maintenance fees.
Additionally, as the contract holder ages, their use of the vacation spot lessens but the timeshare fees do not. This does not make the timeshare a financially viable option and the stress of paying these substantial fees can negatively impact one’s mental health. In such cases, timeshare owners might be looking for ways on how to exit a timeshare contract.
Fortunately, it is possible to exit a timeshare contract and receive the appropriate compensation in this scenario as well. However, you will need the help of an expert legal team made of timeshare solicitors who can go through your case and help you extricate yourself from this predicament.
Timeshare Floating Weeks
A floating week system of timeshare ownership allows the timeshare owner to schedule certain weeks each year where they wish to vacation in and use the timeshare property. Though in theory, the floating week system seems like a flexible and easy arrangement when compared to a fixed number of weeks a year, the real issues arise when you try to book your desired weeks of choice. The weekend you would like to book may not be available during the busy seasons, for example. In this case, you might have to reserve your weeks well in advance to confirm your stay or simply reschedule.
However, the issue with this system is that many timeshare owners are unable to book their desired weeks for their holidays or different owners have conflicting interests, when one or more wish to book the same weeks. This conflict and mismanagement cause many owners to go into loss as they are denied the chance to stay in the timeshare resort, despite paying a large sum of money each year.
Floating week contracts that do not allow the holder cannot access the property they are paying for or to enjoy a timeshare holiday will further strengthen your timeshare claim compensation.
Many timeshare resorts have been forced to pay significant compensation to their timeshare owners in the past due to their floating week timeshare contracts.
Like a floating weeks’ timeshare contract, if you have a timeshare point contract, you could also possibly be legally entitled to compensation.
A timeshare point contract is often sold and marketed very cleverly as a ‘Membership Club’ to attract more customers with the promise of attractive exclusive benefits. However, these are nothing but timeshares disguised as membership clubs that ask for an upfront fee and continuing annual fees. The money you pay is converted into points in your account that you can spend to book your holidays.
Unfortunately, similar to floating week’s contracts, owners cannot book their vacation due to unavailability in the busy seasons, leading to owners not having access to their timeshare resort at all.
With the help of experienced timeshare solicitors such as those who work for Right to Claim, several owners have made successful claims against their timeshare point’s contract in the past. There have been multiple successful rulings because their unjust situation disallows the owner to book their vacation, but continues charging the annual maintenance fees.
Timeshare Termination Service Explained
As timeshare solicitors, our job is simple, we are here to free you from the stressful ordeal of dealing with a timeshare agreement. Timeshare companies like Club La Costa are incredibly resourceful and are backed by a team of legal professionals who will go through multiple avenues to keep your arrangement with them intact. This makes winning a claim against these high-end companies incredibly difficult, but not impossible.
At Right To Claim, we will be there every step of the way during the timeshare contract termination process to ensure a successful end to your contractual relationship with your timeshare company. So, once you hire our services, you can be at peace knowing that you are in good hands.
Our process starts by reviewing your case. This includes all your contractual documents, your purchase history, and every detail regarding your agreement with the timeshare company. Based on these facts, we make an initial no-obligation assessment to get a better understanding of your case and determine whether or not you have the legal grounds to make a claim.
If we believe that your case has the legal grounds for termination after our initial assessment, we will use our intricate knowledge of the timeshare industry and contract law to examine the details of your case and start processing a claim. When it comes to timeshare compensation, we work on a no-win-no-fee basis so that you pay our fees once you have received your compensation. This policy lets you relax and be assured that we will do everything in our power to deliver a win on your behalf.
Our process includes writing to the timeshare resort to make the initial claim and managing all further communication with them to negotiate an exit arrangement with them. Most timeshare companies would want to reach a settlement agreement before heading to court to avoid the risk of an adverse court decision and legal fees. Using our wealth of experience and knowledge in handling timeshare claims, we will ensure that you receive the best deal possible.
In the unlikely event that a settlement agreement is not reached, our team of experienced timeshare solicitors will work tirelessly to win your case in court quickly and ensure that you receive the compensation that you are entitled to.
Why Choose Right To Claim?
If you feel that you were mis-sold your timeshare or cannot afford your current timeshare anymore, claiming timeshare compensation at Club La Costa is the only way to go.
However, that is easier said than done. Going up against timeshare giants like Club La Costa and other companies can be an incredibly difficult and risky task to try and accomplish yourself. Additionally, going in without legal backing will cause you to end up empty-handed. This makes it imperative that you trust an experienced team of timeshare advisors such as those employed by Right to Claim to support you throughout the process and strengthen your case to get you that win.
Our experienced timeshare claims experts have helped numerous people get out of their unwanted timeshare contracts and receive their deserved compensation.
Here are only some of the reasons why you should employ a timeshare termination service like ours:
You Can’t Just Walk Away
The worst and most unfortunate part about a timeshare agreement is that you cannot choose to walk away or exit the agreement even if you think you were sold the timeshare unscrupulously. This could lead to serious legal consequences and financial liabilities.
If you stop paying the annual maintenance fees, you will end up losing the money that you originally paid, you will also end up losing access to your timeshare resort and the option to rent it out or gain some sort of income from it.
The timeshare company might even pass on your details to collection agencies and manipulate your credit score in their endeavour to recover their fees. This is why it is of paramount significance that you employ a team of timeshare experts who can build your case and liberate you from your timeshare contract.
Dedicated Team of Experts
Our dedicated team of solicitors consists of professionals in the field who have a wide range of experience and an in-depth understanding of how to process claims against timeshare companies such as Club La Costa. With work and other responsibilities, juggling a timeshare claim as well can be incredibly difficult and time-consuming on your own.
Fighting a timeshare case is a complicated process that requires significant attention to detail and much of your time. We at Right to Claim understand that it is not easy to take on this cumbersome task while also handling all your daily life responsibilities. This is why our team is available round the clock with only one goal in mind – to help you terminate your timeshare contract.
Making a timeshare claim requires a comprehensive understanding of the law and know-how of the timeshare industry. Only an experienced and knowledgeable timeshare lawyer like ours can see the intricate and subtle details mentioned in your timeshare contract that could very well be the key to winning your case. Without a knowledgeable timeshare expert, you will likely miss out on the potential strategies that could solidify your win, thus significantly limiting your chances of succeeding.
- How can I get my money back from a timeshare?
There are two ways to get your money back from a timeshare:
Sell it: It is very much possible for you to sell your timeshare to a third buyer who is interested through a professional real estate broker or a timeshare reseller. You can also list your timeshare on online marketplaces like sellmytimesharenow.com. Unfortunately, this option won’t bring back all the money that you have spent since the resale market value of timeshares is typically much lower than the original price.
Contact a Timeshare Exit Company: Another option for getting your money back from a timeshare is to connect with a timeshare exit company that will look for legal ways to terminate your contract and make sure you receive compensation for your timeshare.
- How do I complain about my timeshare?
To complain about your timeshare, start by gathering all the relevant information and documents related to your timeshare agreement and then write out your complaint in an email with as much detail as possible to support your dispute. Then email your complaint to all interested parties including customer service, ARDA, ROC, AVO, and your credit card company; if a credit card was used to pay for the timeshare.
- Are timeshare contracts legal?
Yes, timeshare contracts are legally binding.
The Bottom Line
The liquidation of one of the biggest timeshare giants in the industry, Club La Costa, has only emphasised the need to terminate your timeshare contract and get compensation. As timeshare maintenance fees skyrocket dramatically from one year to the next, it becomes increasingly difficult to justify making payments on a timeshare where you’re constantly spending money and receiving small percentages in return.
Some legal professionals will advise that you use the option to resell your timeshare but it is not a viable option since only a limited number of buyers purchase timeshares from previous owners. Ultimately, the best way to get out of a timeshare contract is to terminate it.
When it comes to terminating your timeshare contract, the best option is to hire a professional timeshare termination service that specialises in getting your timeshare contract terminated and demanding compensation as efficiently as possible. At Right to Claim, we do just that. Contact us today to discuss your potential case and our team will be more than happy to help you.
- How Do I Get Rid Of My Timeshare In A Pandemic? (forbes.com)
- How Do I Get Rid Of My Timeshare In A Pandemic? (forbes.com)
- Another timeshare giant calls it a day. Club La Costa announces “discontinuation of new timeshare sales”
- The Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010 (legislation.gov.uk)