Have you been mis-sold your Club La Costa Points or Fractional Ownership? If so, you are not alone! Were you told you could resell your Fractional Ownership? Or that it was an investment? Until Club La Costa filed for bankruptcy in 2020, it was the most active Timeshare sales company in Europe.
Victims were offered 'free' holidays to elicit the sale of timeshare at their resorts in Spain, Tenerife, Turkey or the UK. Club La Costa's colossal growth was supported by Barclays Partner Finance, Shawbrook Bank, and Hitachi Personal Finance, which provided the funding for the purchases of thousands of timeshare memberships. Without the funding from these three banks, Club La Costa would not have survived as long as it did.
As with all timeshare presentations, the modus operandi of timeshare companies is to wear you down until you cave in under mental pressure and exhaustion. For many Club La Costa victims, presentations lasted over seven hours. Despite clients saying NO, offers were constantly reduced in price until the sales rep had got the 'deal' over the line.
Due to the timeshare industry not being regulated or monitored by an independent body, companies such as Club La Costa left a trail of destruction, with some victims even losing their houses. Others could not re-mortgage, and others lost even more money just trying to sort out the problems that Club La Costa had caused.
Why did the banks continue to finance mis-sold products?
They would argue that they did their due diligence and Club La Costa had fair sales practices. We would disagree, and so would many thousands of club la costa victims that have filed claims.
Lenders earn money by charging their partners around 10% commission for providing the finance facility. So, for example, if you borrowed £20,000 to purchase a Club La Costa fractional membership, £2000 of the £20,000 you borrowed would have been paid to the finance company. This is called a hidden commission.
The finance company also makes its money from charging interest. The typical interest rates charged by timeshare lenders are between 9-15%, which means that a timeshare loan taken out for £20,000 over 180 months will result in the borrower paying back over £40,000. In our opinion, this is scandalous and makes no financial sense. Timeshare has absolutely no residual value, so along with the maintenance fees, is a complete waste of money.
Club La Costa was selling timeshare as an investment, leading clients to believe they could resell their memberships. Unfortunately, the playbook of timeshare resale scams spans the length and breadth of the timeshare industry. As such, Club La Costa members, like many others, regularly qualify for compensation.
Get in touch if you purchased your Club La Costa membership and want to claim. Our team will exit you from your timeshare contract and submit your claim without you having to pay any upfront fees.
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