The Mis-Selling of Timeshare Finance: What You Need to Know

Published 5th February 2025

Estimates vary but, over time, as many as 750,000 – 1,000,000 Brits may have been sold Timeshares which promised the dream of exclusive, luxury holidays for life, especially in Spain and the Canary Islands.

But, in recent years, the scandal of large scale, high-pressure mis-selling of Timeshares by organisations like Club La Costa, Anfi, RCI, Silverpoint, Marriott Resorts and others has been brutally exposed and thousands of victims have sought and won compensation through the Spanish courts, setting a series of well-established legal precedents.  Club La Costa is now in liquidation and Anfi SL is in bankruptcy administration and is under criminal investigation.

More recently, a number of banks have also become embroiled in this scandal, as many of the original timeshare purchases (or subsequent ‘upgrades’) were financed through loans with 'partner' banks, often under misleading or pressurised tactics, by unregulated salespeople. As a result, consumers were locked into long-term, high-interest financial commitments that they either could not afford or did not fully understand.

Which Banks and Financial Institutions Are Involved?
 

Several major financial institutions are involved and have had to set aside substantial sums to cover compensation claims.
 

• Barclays Partner Finance has allocated £181 million to compensate customers affected by mis-sold loans.
   

• Shawbrook Bank originally set aside £9 million, but has increased this to £25.4 million in response to legal rulings against their timeshare-linked loan agreements.
   

• Other institutions, including Hitachi Personal Finance, Honeycomb Finance, GMAC, and First Holiday Finance among others have also been linked to mis-sold timeshare loans, though their exact compensation provisions have not yet been publicly exposed.
   

What Can Affected Consumers Do?
 

If you believe you were mis-sold a timeshare contract and/or an associated loan, you may be entitled to compensation. Here are the key steps to take:
 

Gather Evidence – Collect all relevant paperwork, including loan agreements, contracts, and correspondence with the timeshare company.
 

Seek Expert, Independent Advice – Whilst many, well-established legal precedents have been set, this remains a highly specialised legal area, which contracts often being under Spanish laws, which have changed over time.

With 100s of millions potentially at stake in compensation claims, affected consumers are strongly encouraged to act swiftly to seek redress for mis-sold timeshare finance.

​To find out whether you also qualify to claim compensation for mis-sold Timeshare contract and/or a mis-sold/unregulated loan for a Timeshare purchase, please call one of our friendly advisers on 01628 290499 or complete our short enquiry form here:​