It’s official, Club La Costa goes into liquidation
You will have read recently that various CLC companies have now gone into Liquidation. We understand that the Administrators, who are called FRP Advisory, have been appointed Liquidators. This was anticipated by us. For many years we have advised our clients to bring a claim in the UK against those who financed the purchases, as we knew that CLC would simply liquidate when people started to claim against them. This is what has now happened.
The Liquidator will now have to carry out further investigations, which could take several years and a considerable expense.
There is currently more than €30,000,000.00 (30 Million Euros) in unpaid Judgments in Spain, against Club La Costa. While many consumers have secured judgments against CLC – and are continuing to do so – recovering actual compensation is another matter. At this stage, the number of unpaid claims is substantially more than any money within CLC. The liquidators and the preferential creditors will be paid before any consumer, in any event.
As a result, we believe that these recent developments are a further vindication of the advice we gave to our clients. This was not to issue a claim in Spain against CLC directly. Given that the resorts are not owned by CLC and the companies had little or no money it made little sense, especially now that CLC has 30 million Euros of unpaid claims against it. Our advice remains firmly the same and has been proven to be correct.
Why throw good money after bad?
The best course of action was to pursue the banks who funded the purchases. The banks cannot just go into liquidation to avoid any judgment and was the safest route. We have hundreds of clients who followed our advice and, following the judicial review next year, will benefit from our hard work over the last decade and the precedent decision from the Financial Ombudsman Service (the “FOS”).
Unfortunately, many CLC owners are being made promises about the liquidation of the company that are simply untrue. The properties used by CLC are owned by a complex series of trusts. They are outside of the ownership of CLC and do not form part of the liquidation.
Why did Timeshare owners make a claim in Spain?
Please be aware that the reason some unregulated companies are pursuing the issuing of claims in Spain is because they are unregulated. They cannot pursue the same claims that we can in the UK, exactly because they are unregulated. Also, they want to take money from consumers at the start of the claim. We do not do this. We are regulated by the Solicitors Regulation Authority (the “SRA”) and we can pursue claims in the UK. Unregulated companies are unregulated for a reason. DO NOT make the same mistake that others have.
All is not lost, though. If you have pursued a claim in Spain, but not in the UK, or are simply a Club La Costa owner, contact us immediately. We are having great success in getting money back from these unregulated companies and are happy to conduct this work on a no win no fee basis. We have now recovered over £3.2 Million for our clients and this figure is increasing each week.
I have a Timeshare, what should I do now?
Taking legal action against the timeshare company can help to get you the financial compensation you deserve and, in some cases, terminate the contract for breaching the law. Timeshare law is extremely complex and is not something that can be taken on by anybody but requires the professional expertise of a specialist timeshare solicitor.
Finally, remember any genuine timeshare solicitor will be extremely careful to manage a client’s expectations. They will be honest and realistic with what could possibly be achieved in regard to your individual case. If someone claiming to be a lawyer or solicitor has been in contact contacted, be sure to do your research and check if they are regulated by the SRA and if the individual is registered as a solicitor.