GRAN CANARIA, SPAIN (June 14, 2010)
A new court ruling coming out of the Spanish court system is likely to set in motion a snow storm of pre-action letters seeking compensation for the mis-selling of timeshare in Spain.
Magistrate D. Juan Carlos Socorro Marrero has ruled against a timeshare developer namely Anfi Sales SL, (part of the Anfi Del Mar Group in Gran Canaria). The ruling states (amongst other things) that the deposits taken by the developer (before the cooling off period expired) is in contravention of the dictated in the Law 42/1998, Article 11
Magistrate D. Juan Carlos Socorro Marreronow becomes the new maverick in the assistance of consumers by defusing the wrongful claims of the developers.
This dictate will have far reaching consequences for the developers as the consequences and remedies for a breach of law 42/1998 article 11 are (in part) set, in that the developer has been ordered to pay to the consumer double the amount which was obtained wrongfully.
Yes!! “Yes double”.
In the UK legal system there are few statutes which offer consumers a benefit for a wrong which has been perpetrated against a consumer. SO WELL DONE SPAIN!!
It is anticipated that the ruling will now open the floodgates for claims of consumers with an estimated “hoard” of 400,000 claimants seeking compensation across Europe.
As the ruling is a settlement of a tribal issue, the ruling applies to other developers and consequently other consumers.
This being the case, if a consumer pleads (in a prayer) that the events recorded in the aforementioned action are the same set of circumstances which apply to their claim. The ruling will be applied and the liability aspect of the case is quickly resolved.
When matters turn to your award/compensation, again the issue is resolved in that you (the consumer) will receive all the sums you paid, plus 100% uplift on your claim. Of course costs will follow the event and will be recoverable in part or whole and subject to the courts discretion.
This being a very real event, the developers will have to brace themselves (collectively) for the inevitable rout on their bank accounts. Equally the banks and credit card companies may be subject to the return of monies lent.
In saying this however, the refunding of transactions on cards (and the like) may not be subject to Spanish rulings and protocols, therefore in that event and dependant on the domicile of the contract/agreement this aspect of the claim will have to be made in the UK.
This said, a benefit is to be had in the Spanish legal system. Consumers might consider it profitable to seek recovery in Spain by a reputable Spanish firm of legal experts (check the recommendations by The Timeshare Consumer Association).
Again, and with all actionable disputes there are consequences. Can the developer sustain the loss of large cash reserves? Will they permit subsidiaries to fold (to resist the depletion of the holding companies cash reserves)? The question is unanswered at present, however I suspect this will happen. This being a real possibility though, before a wave of company protections are claimed from the developers, consumers might be well served by looking into it getting their claims in early to try to exit as soon as possible, so as to derive some compensation. It’s a practical saying “a bird in the hand is better than two in the bush” on this occasion.
Anfi Del Mar has reportedly set for up to receive 10,000 new claims for timeshare miss-selling under the 1994 European timeshare directive.
Anfi Del Mar was constructed by the Ling Group in Gran Canaria in 1989 and once owned by the largest travel agent in the world, “TUI”, who is said to be in a state of panic at this ruling. “TUI” are know in the UK by their brand name “Thompsons”. They own and operate several of the best known UK high street tour operators and this is reportedly not the first time their names have come up as they were also responsible for taking illegal timeshare deposits at Anfi before.
In the event that a timeshare contract was acquired and then sold on to another, the acquiree can claim the compensation. Under Spanish law, if a property is sold on, all debts and incumbents are passed to the new owners. This permits the present owner of the timeshare contract, to step into the shoes of “the processor in title” and seek the compensation which is due as a result of the breach of contract.
So before exiting your timeshare contract, before permitting the resort and/or developer to take it off your hands, check and be advised as you may be flushing away a substantial sum of money down the proverbial drain.
Don’t be confused between property and Real Estate, as in Spain they do mean different things and are subject to different ruling and laws. Consumers are advised not to allow the contract to be converted no matter what enticements are offered.
Sound advice may serve you very well from any one of the Timeshare Consumer Association’s select list of approved Legal Experts.
Therefore if you have paid in part or whole a timeshare deposit on or during the cooling off period (first 14 days of signing), after 1996 in Spain or it’s islands, you are now entitled to reclaim double your deposit, even if the company you purchased it from is no longer trading, as long as the timeshare development still exists.
In the event that you require information please do not hesitate to contact ourselves and we will forward your details on to one of our recommended legal solicitors or European legal brokers who may be able to assist you in your quest.
Please be aware that dealing with actions abroad can be difficult as Spanish principles, rules and procedures are not the same as UK principles, rules and procedures.
In Las Palmas de Gran Canaria on 28th September 2012.
This trial is refers to an agreement known as a Holiday
Membership dated May 24th, 2008 between the plaintiffs in this matter and the
defendants –ANFI SALES S.L. as the promoter and ANFI RESORTS S.L.
by virtue of the plaintiffs becoming a members of Club Anfi Beach and being allowed to use Suite Nº 103 described as a (one bedroom apartment) during weeks 31 and 32, first use on 1st August, 2009. The
purchase price was 21,476 sterling pounds, 1,000 pounds as a
deposit on the signing day, a second payment of 2,639 pounds dated
June 8th, 2008, and then monthly instalments of 298,48 pounds until
having paid the rest sum of 17,828 pounds, for what they entered a
deferred payment contract.
The court ruled
The Defendants must refund all the payments made by the plaintiffs under
these agreements.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk