All Compensation Helpline

Background:

A landmark ruling by the Spanish Supreme Court on March 16, 2015, enacted the European Directive, significantly impacting the timeshare industry in Spain.

This directive, transposed by member states, replaced the 1994 directive and aimed to protect consumers from financial risks associated with timeshare contracts and similar holiday products.

Key Provisions:

The directive extends consumer protection to various holiday products, introducing a uniform 14-day cooling-off period for contract withdrawal.

Approximately 1.5 million European households, with a significant portion from the UK and Ireland, are timeshare owners, emphasizing the sector's importance.

Traders must provide detailed information, including price, timeshare details, and contract terms, in the buyer's language before binding the contract.

Buyers have a 14-day cooling-off period during which no payments can be requested, ensuring consumer rights.

Spanish Supreme Court Ruling (January 15, 2015):

A ruling against Anfi Resorts highlighted the illegality of "in perpetuity" clauses, with the court ordering a full refund, interest, legal fees, and double the deposit amount.

The court decision established a 50-year limit on timeshare agreements signed after January 5, 1999.

Impact: Timeshare owners can cancel contracts and receive full refunds if resorts fail to comply with disclosure and cooling-off period regulations.

Key Focus Points of the Ruling:

A mandatory 14-day cooling-off period.

Clear client communication about the cooling-off period before contract signing.

Prohibition of accepting money during the cooling-off period.

All contracts must be in writing.

Clear presentation of crucial contract details in the buyer's language.

Contracts offered in the language of the buyer.

Cancellation of related finance agreements if the main contract is cancelled.

Maximum duration of a contract set at 50 years.