Spain’s Timeshare Industry Is Set To Collapse

With a new court ruling in Spain on May 27th of 2010 there is expected to be up to 400,000 illegal timeshare contract compensation claims that could reach up to 2 billion €(euro). It has been ruled that a timeshare developer in Gran Canaria must pay back double the amount of the timeshare deposit by Magistrate D. Juan Carlos Socorro Marrero.  There are currently over 200 live claims for timeshare miss-selling in the Spanish court system against Anfi Del Mar. More claims were coming in at a rate of 10 per week before this ruling.

Spanish law also states that even if a property is sold and all encumberments and debts are passed on to the new owners those new owners will still be liable for new compensation claims. Within the industry it is said up to 200 developers that operate out of Spain, Balearics and canaries are trying to sell of timeshare resorts that have or soon will have actions brought against them.

Some brand name European timeshare developers have been taking illegal deposits up until as late as 2009. The European regulatory body representing timeshare owners in Europe has had some of its paid members break these same laws in the past. With this new ruling timeshare owners will finally get the chance to take on large corporate brand developers. As long as the timeshare development still exists you will be able to reclaim a double deposit if you paid after the cooling off period in 1996.

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