Claims against resorts are a very delicate issue. Delicate, because there are far too many bogus companies offering a claim “for all” where in reality not everybody can claim.

But even if you can, and the claims company really files a demand on your behalf,  it isn’t always worthwhile.

Let us explain.

It is a fact that in Spain the lawyers’ companies do not work on a no win no fee basis. This means that you will always have to pay something upfront which provides the lawyer with a fund to pay the expenses that arise of filing a claim in the court.

Even if you are dealing with a genuine company, we often see that these fund requests are quite inflated with charges that do not really make a lot of sense.

Not so long ago we received a message from a consumer who “won” his claim against a large timeshare company which is currently going through an INSOLVENCY PROCEEDING.

The story of this consumer led us to write this blog.

The consumer was contacted in 2017 by the “claims company”

He was explained that his case could be resolved in a matter of weeks, or it could take considerably longer.

Well, it took him 4 years to get his case through court. In reality it only took the court 2 years, as his claim was not entered until the year 2019. That is 2 years after he paid the claims company close to 4000 Pounds upfront for their services.

The consumer was led to believe that they would claim £27K from the resort plus the amount he paid to the claims company.

But the reality turned out differently…

The judge ruled against the resort but with a payment to the consumer of £9K

The claims company explained to the consumer that the judge reduced the amount he had claimed because of the years he had owned the membership according to the Spanish Supreme Court Rulings.

Could the claims company not had foreseen this? There is a long way down from 27K to 9K!

Neither were the legal expenses refunded, although the claims company assures the consumer, they will claim this in their appeal.

As per the agreement, the consumer has to pay a 20% over the awarded money to the claims company. So, he already paid 4000 Pounds and he has to pay another 1800 Pounds. Total charge 5800 Pounds and left for the consumer 3200 Pounds. After 4 years waiting.

Of course, that is a nice amount to get back, no problem at all, but when will the consumer get this?

That is the next problem…. the resort is going through Insolvency proceedings, so the lawyers have to inform to the Insolvency Practitioner about the consumers’ victory, in order to claim the payment of the amount awarded at the Commercial Court. Once the credit is accepted, and the resorts assets are sold in purchases or auctions, the consumer “will have the possibility” to receive his compensation.

Will have the possibility?

Are they telling you there is no guarantee?

Exactly! And the claims company kindly explains in their correspondence that they cannot guarantee how much money this will be as it will all depend on the assets sold and of course other creditors in line who could have more preference to be paid out than the consumer.

So, congratulations to the consumer, he won his claim, but so far, he is 4K short in his pocket…

A “win win” for the claims company…