2020 is not a good year for the timeshare industry! Timeshare Claims have seen more enquires regarding cancelling of contracts and claiming compensation in one month than they did in the entire year of 2019. As owners are left paying maintenance for holidays that they are unable to use, the questions they are now asking is about the timeshare claims process.
Timeshare claims are completed in 2 steps. 1) Terminating the timeshare contract. 2) Submitting the claim
Terminate the timeshare contract in the correct way
In order to submit a claim for compensation you must first relinquish the timeshare in the correct way. You need to legally terminate the timeshare agreement in a way in which the timeshare resort admits wrong doing. If you contact your timeshare resort and ask them to take it back from you and pay their withdrawal fee to exit, you will sign a waiver stating that you were happy with your timeshare and no mis-selling took place. Once this has been done there is no way to claim compensation in the future.
You must file for the termination stating that you feel that the timeshare had been mis-sold. This can be difficult to prove in some cases as it could be your word against theirs. Solicitors and paralegals who specialise in specific ownerships can often achieve this based on the high number of clients being represented who have all had a similar story surrounding their own timeshare. The most popular form of undocumented mis-selling is when a timeshare is sold as being an investment. Most of the time this would have been done by word of mouth. However, some timeshare chains invented products such as Fractional Ownerships which were based solely on investments. Long term holiday products cannot be sold as an investment. Another example of undocumented mis-selling is when a timeshare is sold as being exclusive solely to its members when accommodation can be found on hotel booking sites.
In many cases mis-selling can be proven easily due to incorrect contracts being used or contracts not being updated. Timeshare resorts will try their hardest to contest mis-selling when such details are brought to their attention by the timeshare owner. However, it is almost impossible for them to deny clear facts when brought to them by a company that have already had successful claims against them. It is advised to use a company that specialises in claims against your specific resort to achieve a quick and hassle free relinquishment. Documented mis-selling includes the use of unofficial contracts, contracts lasting a duration that exceeds 50 years or has no end date (contracts being in perpetuity), deposits/payments being made to the resorts during the cooling off period (dependent on country and date of purchase), points based products that are not assigned to a physical property.
Submitting the claim
Now that the contract has been terminated in the correct way, you can register the claim. The claim section should be done on a NO WIN, NO FEE basis. The relinquishment and claims are usually handled by 2 separate companies. The paralegal company that handles the termination of the timeshare will then, pass the now non-timeshare owners details on to the claims management company who must be registered with the FSA (Financial Service Authority)
Please note; Anyone that owns a timeshare in Europe has the legal right to cancel or withdraw from a timeshare agreement and charges may apply depending on your circumstances. Not every timeshare owner is entitled to a claim.
Use our compensation calculator to find out if you are entitled to claim compensation due to a mis-sold timeshare.