Customers of bankrupt timeshare resorts left confused about membership fees
It is now common knowledge that there are now many bankrupt timeshare resorts in Europe. This is mostly due to a combination of reduced income during the travel ban and legal issues. Resorts have been forced to compensate members after years of mis-selling, leaving many with an unmanageable amount of debt. We are sure the irony here won’t be lost on our readers…
However, our team at Legal Exits have been contacted by several customers recently, who have received notice that their timeshare company has entered liquidation this year and have been left confused as to whether they still need to pay their maintenance fees. We hope to be able to provide some clarity here:
Fixed week owners
Whether or not you have to pay maintenance fees depends on the wording in your contract and the entity that your fees are payable to.
If your maintenance fees are paid directly to the company that has been placed into liquidation, then your maintenance fees are a contribution to that company’s debts. These will need to be paid, as technically you and the remaining members share ownership of the resort, including its running costs and its debts. Of course, you are not going to be asked to cough up the millions of Euros the company now owes, but you do remain legally responsible for your share of the debt.
If your maintenance fees are paid to a management company, or a company different to the one that has been declared bankrupt, then it depends on the wording used within the signed agreement. If your contract lists your maintenance fees as accommodation costs, and the resort was unavailable to you during your allocated time, then it can be argued that the fees should not be paid.
If the wording states that the accommodation is “subject to availability”, then you will need to pay your maintenance fees, as you are still under contract. The only way to avoid these fees is by relinquishing your timeshare contract. You can use the live chat, or contact form to speak to a specialist for advice, all advice is free of charge.
Points / floating weeks owners
If your points or floating weeks are assigned to a specific apartment and week number, then they technically fall under Fixed weeks and the rules above apply.
However, if like the majority of customers, your points or floating weeks are not assigned to a particular apartment and week, then these contracts may be rendered void if they were signed after the 4th January 1999, as determined by rulings passed by the Spanish Supreme Court.
Do you own at one of Europe’s bankrupt timeshare resorts?
For no-cost, no obligation advice regarding your membership, please use our live chat or contact form on the link below and our team of expert Claims Advisors will be happy to answer any questions that you may have.