Club La Costa (UK) PLC falls into Administration
Timeshare company Club La Costa’s parent company in the UK, Club La Costa (UK) PLC went into Administration in November 2020. An Administrator was appointed, by Club La Costa, but who has since been replaced by one nominated by the creditors.
What if I want to make a Timeshare claim?
Because the Timeshare company Club La Costa (UK) PLC is in Administration, under UK Insolvency Rules, new cases cannot also be filed in the UK Courts, without permission of the Court. However, we have already registered our Timeshare client’s claims with the new Administrators, and we will add any new Timeshare claims with Administrators, as part of the clients’ retainer with us. In the circumstances, existing clients should not consider paying any company that contact them, seeking payment of additional money.
In any event, over €30m Spanish Judgments are outstanding, against CLC, going back several years. At present, no clear picture is emerging as to how much – if anything – the CLC creditors will eventually recover.
Can I Make a Timeshare Claim in Spain?
Having originally considered issuing cases in Spain, after looking into the situation, and speaking to various Abogados in Malaga, we advised our clients that we would not recommend such action, as despite the assertions being made by non-regulated companies, we don’t have any evidence of anyone receiving any actual compensation from Club La Costa.
Instead, we recommended that people should instead make claims for compensation against the banks, such as Barclays Partner Finance, Shawbrook Bank Ltd., and Hitachi Capital (UK) Plc, who provided funding for the timeshare purchases. In view of the above developments, with Club La Costa, more and more it is becoming clear that such advice was the right one.
We understand that there is currently an active investigation into whether by continuing to trade, and take money from members, while not settling their debts, Club La Costa have acted illegally. Whether such investigation leads to criminal charges remains to be seen.
What about making a Timeshare claim with The Financial Ombudsman?
Several hundred of our clients have timeshare complaints lodged with the Financial Ombudsman Service (FOS), but at least a third of these have been ongoing for more than two years, and others even longer. In fairness to FOS, they appear to have “pulled up their socks” recently, and we have seen a definite improvement in the time they take to acknowledge receipt of new cases and also to respond to correspondence from us.
In any event, much of the blame for the continuing delays can be firmly placed at the door of the lenders, especially Barclays Partner Finance, Hitachi Capital and Shawbrook Bank.
The banks in question have made pious expressions of regret about the continuing delays, but recent developments show them to be no more than “crocodile tears”. In two recent cases, where the Ombudsman’s final decision had come down in favour of the consumers, and required the banks to pay compensation to them, the banks in each case have applied to the Administrative Court (part of the High Court,) for Judicial Review of the Ombudsman’s decision. The banks in question? Barclays and Shawbrook!!!
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.