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RCI Timeshare Compensation: UK timeshare owners lose multi-million pound claim, but it’s not all bad news

RCI Timeshare Compensation – RCI Case study

News on the RCI Timeshare Compensation Case : Hundreds of holiday timeshare owners from the UK have lost a multimillion-pound legal claim for damages against RCI Europe (RCIE).


However, crucially, the claimant’s lawyers have said that the judge’s ruling on blocking their claim has identified a breach of contract by RCIE, as a result this could open up more claimant cases.


Since there were over four hundred timeshare claim cases involved, four test cases were used.

The cases were held at the High Court in London and the Court learnt on the day that the plaintiffs signed up to the RCI Europe “Weeks” programme, which is the largest of the club’s exchange schemes.

The claimants argued they were entitled to compensation because RCI Europe had rented out timeshares for profit without their knowledge or permission, which reduced their opportunities to make exchanges.

Mrs Justice Proudman mentioned in Court that there was little doubt that RCI Europe did breach its contract, as mentioned previously they were unaware that the timeshare company had rented out numerous timeshares between 2000 and 2009.

RCI Timeshare Compensation Case Findings

The judge went on to say that the company’s contract stated that a timeshare members’ deposited timeshare would go into the “Weeks” pool. However, the Court learnt a maximum of 20% never went into the pool and was instead used for rental purposes.

The ramifications of the Court case led to the judge to rule against the four claimants because there was a lack of clarity on what the causation or damage was, and it hadn’t been proven that the timeshares were used to the detriment of the timeshare owners.

In addition, the judge also mentioned that the four claimants had failed to give concrete evidence that RCI Europe had given them a low quality exchange or caused a shortfall in suitable exchange opportunities.

David Greene, senior partner of law firm Edwin Coe, who represented the four claimants, shared his views on the case saying that although the judge found that the test claimants had not clearly proved loss. However, after a long litigation process that was conducted by the judge, it was decided that RCI Europe had misled its members as to what it did with their deposited timeshares.

Greene also mentioned that they could be putting together an appeal on certain elements of the judgement.

The Court’s findings on RCI Europe open up the possibility of the hundreds of thousands of timeshare members who are seeking compensation.


Timeshare Compensation Advice

So what have we learnt?

Despite the claimants losing their case, and a possibility of reopening more compensation cases, the 400 plus claimants did have insurance. As a result, RCI Europe had to make an interim payment of £2.4 million within 28 days pending a decision by a costs judge on the total amount they must pay. This demonstrates that been covered by insurance can help put a feasible case together financially.

If you feel that you have been in a similar situation and are looking for legal support on timeshare compensation please get in touch. Alternatively, if you would like to request a brochure on our services, fill in your details via this link. You can also follow our blog for the latest timeshare compensation news.

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