Club La Costa

Club La Costa Claims – Do you claim in the UK or Spain?

Why you are unlikely to reign in Spain

We constantly take enquiries from consumers interested in pursuing a claim for compensation concerning a timeshare sold by Club La Costa.

Some may have enquired after hearing a radio advert, whilst others may have done so after being "cold-called".

The main question is whether you have a claim and where it is best to pursue a claim – either in the United Kingdom or in Spain. The answer is quite simple and not what the "cold caller" wanted to hear – the United Kingdom.

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Club La Costa has successfully challenged legal actions brought against them by UK citizens where the contract refers to UK law. Thus, any UK citizen that looks to bring an action against CLC via the Spanish courts could potentially end up having an order for costs made against them, which may end up being for more than the claim they were pursuing.

Background case

Club La Costa (UK) plc (CLCUK) and its Spanish branch offices ("surcursal" on Spanish CLC paperwork) was the leading sales division of the Club La Costa group of companies. As a result of their success, CLCUK sold a large number of timeshares to UK citizens. CLCUK were doing very well in 2019, but just a year later, they were in administration.

Legal claims made in the Spanish courts are against CLCUK and the succursal, as these companies sold the timeshares. The administrator's report of 13th January 2021 states that in Spain, there had been four final judgments totalling £120K and a further nine ongoing enforcement proceedings worth £216K against the insolvent companies. At the same time, the administrators suggested that there were unsecured creditors with claims against the company totalling £9.2M. However, by 17th June 2022, this had increased to £67M. The key issue here is that the value of the company's assets appears to be minimal and there is little chance that claimants against CLCUK will receive any money.

The various reports from the administrator make the following statements:-

"it is uncertain as to whether there will be sufficient funds available to make a distribution to unsecured creditors.

"we are unable to determine at this juncture whether the Company will have sufficient property to facilitate a distribution to any class of creditor."

"based on information received to date it seems unlikely that there will be any realisations from the "surcursal" that will fall into the administration estate".

Despite the warnings that there is no money we have been told that CLC members are receiving unsolicited calls offering to recover money for them. The callers insist on an upfront payment of £5,000 and for this payment they will take action in Spain.

Our advice would be not to be tempted. We don’t believe there are available funds in Spain and paying upfront fees to cold callers is likely to result in CLC members suffering further loss.

Why then pursue a timeshare claim against Club La Costa in the UK?

Many Club La Costa members in the UK purchased their memberships via a loan or finance. The lenders GE Money, Barclays Partner Finance, Shawbrook Bank, Hitachi, and in some instances, First Holiday Finance, are vicariously responsible for any mis-selling by CLCUK to UK consumers. These financial institutions are regulated by the FCA (Financial Conduct Authority), and most loans offer consumer protection under The Consumer Credit Act 1974 (CCA1974), as the initial sum borrowed is £30,000 or less.

We are pursuing claims against finance providers by using the CCA1974. We are happy to pursue claims in the UK under a "no win no fee" agreement. We will not ask you for an upfront fee.