The continuing liquidation of Club La Costa (UK)plc

The liquidators of Club La Costa (UK) plc, FRP Advisory Trading Ltd, issued a progress report on 23rd January 2025, which is now available on the Companies House website. The company, CLC (UK)plc who were once operating out of London and had various branches in Spain, was placed into liquidation in November 2022, and the liquidators are still continuing their investigations .

According to the latest update, "preferential creditors" in the UK have submitted claims amounting to £129,000, while their counterparts in Spain have put forward claims totalling €1,180,000. However, the report highlights that it is currently unclear whether there will be enough funds to pay these preferential creditors.

In addition, unsecured creditors have submitted a staggering £140,000,000 in claims. It's important to note that some of these claims may be duplicates, as they might also be part of the Spanish liquidation. At this point, no unsecured creditor claims have been accepted by the liquidator.

Given that there appears to currently be no prospect of secured creditors receiving a dividend, it is even more unlikely that unsecured creditors (timeshare members) will receive any compensation at all.

Sadly, some unregulated "cold callers" are still misleading individuals, encouraging them to pursue claims through the Spanish liquidation process. These callers even suggest that members should cancel a claim they have already filed with the Financial Ombudsman Service. What's worse, they often demand large upfront fees. However, many of the companies involved in the Spanish liquidation may simply be subsidiaries of the UK-based company, and the only reliable route to redress so far is to pursue a claim against the lender you were originally introduced to at the point of sale.

If you've paid money to an unregulated company for assistance with a claim—even if they later introduced you to a solicitor—you might be entitled to a refund. This is because upfront fees for such claims are prohibited by the Solicitors Regulation Authority (SRA) and the Financial Conduct Authority (FCA) in the UK.

To learn more about how Lincoln Green Solicitors can assist you in claiming compensation for money paid to these "cold callers," give us a call at 0300 303 3819. We’re here to help!