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Monday, June 14, 2010

Transfer Smart News: Court Ruling in Spain Seek Compensation for Timeshare Owners

Nowadays, it’s a well-known fact that scams are prevalent in the timeshare industry. Along with the crisis-stricken economy, many owners are trying to get out of their timeshare contracts and avoid such vacation property. To protect the consumers, there are some laws being implemented addressing problems within the timeshare industry. Just like in Spain recently which pass a new court ruling against one of the largest timeshare developers in the country for timeshare miss-selling. Meanwhile, this has now started an avalanche of new claims for timeshare compensation and industry experts believe that a meltdown will commence.

The ruling can now be used by European timeshare owners to seek compensation from illegal contracts signed after 1996 in Spain and its territories. It is estimated that up to 400,000 contracts were made illegally after 1996 and industry experts believe that timeshare compensation claims could reach 2,000,000,000 (Billion) Euro.

On the other hand, Magistrate D. Juan Carlos Socorro Marrero has ruled that a timeshare developer in Gran Canaria must pay back double the amount of the timeshare deposit taken within the cooling off period. In a case brought against Anfi Sales SL, the Magistrate commented that the case of paying an advance installment is in opposition to what is dictated in the law 42/1998, article 11, the second section of this mentioned rule permits the acquirer at any time to get back double the stated amount. Anfi Del Mar which is one of the most largest and luxurious timeshare developments in Europe is now set for up to 10,000 new claims for timeshare miss-selling under the 1994 European timeshare directive.
At present, there are more than 200 live claims for timeshare miss-selling against Anfi Del Mar in the Spanish court system and with fresh claims coming in at a rate of 10 a week before this ruling.

Under Spanish law, even if a property is sold, all debts and encumberments are passed to the new owners. So, even if a vacation property like timeshares has changed its ownership, the new owners will still be liable for new compensation claims.

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