Timeshare has long been an attractive option for those seeking recurring vacations in high-quality accommodations. However, this model has also been subject to abuse and legal disputes due to deceptive practices by some companies in the industry. In recent years, courts have ruled in favor of consumers, establishing new regulations and forcing companies to compensate affected individuals.
Timeshare Companies Under Scrutiny
For over 25 years, many timeshare companies have operated in violation of consumer protection laws, using tactics to evade their legal obligations. In 1999, Spain implemented Directive 94/47/EC through Law 42/1998, setting clear rules for these contracts. However, many companies continued with illegal practices, believing they could prolong legal proceedings to avoid paying compensation.
Since 2015, the Spanish Supreme Court has issued key rulings invalidating numerous abusive clauses in timeshare contracts, highlighting the following irregularities:
- Perpetual contracts: Since January 5, 1999, any timeshare contract lasting more than 50 years is illegal.
- Floating weeks and points systems: If the contract does not specify an exact week and unit, it is considered invalid.
- Payments during the cooling-off period: It is illegal to accept any payment or sign a financial agreement during the reflection period, which was initially 10 days and later extended to 14 days under Law 4/2012.
If a contract violates any of these rules, it can be declared null and void, and the buyer is entitled to recover 100% of the money paid. However, many companies have employed delaying tactics, such as moving funds between subsidiaries or appealing court rulings to postpone compensation payments.
How to File a Legal Claim for Timeshare
If you suspect that your timeshare contract is illegal, it is essential to begin a claim process to recover your money. This legal process usually unfolds in five stages:
- Free Case Assessment
- A lawyer reviews your contract to check for abusive clauses.
- You are informed about the potential compensation you may be entitled to.
- Out-of-Court Mediation
- A formal claim is sent to the timeshare resort.
- An attempt is made to reach an agreement before taking legal action.
- Case Administration
- The claim is monitored, and the client is kept informed at every stage.
- Litigation in Spanish Courts
- If no out-of-court agreement is reached, a lawsuit is filed in a Spanish court.
- The judge evaluates the evidence and issues a ruling.
- Enforcement of the Judgment
- Once a favorable ruling is obtained, legal steps are taken to ensure compensation is paid.
- Since many companies do not voluntarily pay, lawyers may request forced execution of payment.
Legal Obstacles and Delay Tactics Used by Timeshare Companies
Despite the law favoring consumers, timeshare companies have attempted to stall claims using legal strategies, such as:
- Appeals and delays: Resorts challenge rulings to extend legal proceedings.
- Capital transfers: Some companies move funds between subsidiaries to avoid paying compensation.
- Jurisdictional challenges: Cases have been brought before the Court of Justice of the European Union (CJEU) to prevent Spanish courts from ruling against them.
However, courts have mostly rejected these attempts, and timeshare companies have lost numerous legal battles. In some cases, they have been forced to compensate affected individuals with millions in settlements.
Conclusion: What Should You Do If You Have a Timeshare Contract?
If you own a timeshare and suspect that your contract contains abusive or illegal clauses, it is advisable to act as soon as possible. The legal process may take time, but more and more rulings are favoring consumers, allowing them to recover their money.
Consulting with a lawyer specialized in timeshare claims is the first step to evaluating your case and determining the best legal strategies. With the law on their side, consumers now have more opportunities than ever to obtain justice and free themselves from unfair contracts.
