Simple interest awarded on a timeshare claim? Congratulations, it can be a lot of money

People sold illegal timeshare contracts are being awarded compensation in record numbers as legal obstacles are being systematically removed. Often, as well as the award itself, simple interest is also granted. But what does that mean?

Compensation claims

Timeshare companies in Spain (and sometimes elsewhere) are being comprehensively punished by the courts for over a decade of issuing illegal contracts.

It's common knowledge that timeshare owners from all over the UK are receiving compensation awards individually worth tens of thousands of pounds, provided they fit the qualifications that enable them to claim (whether in Spain, or victims of the Azure company in Malta who were sold Barclays loans)

Extra awards

On top of the claims however the judge often awards costs and/or "simple interest" to the client.

"Costs" is easy to understand. You are awarded an amount of money to mitigate the legal fees you spent to bring the case to conclusion.

Simple interest is an innocuous sounding phrase that many people pay scant attention to. But in reality it can be a very welcome surprise

What is simple interest?

Unlike compound interest, simple interest always applies to the principal amount, and therefore does not increase at the same rate as compound interest (which applies to the latest total of principal plus all added interest).

However, simple interest still can make a lot of difference especially if you have been paying your loan for several years.

Recent example

Sounds complicated? Ok here is a true life example: Mr/Mrs X were recently had their Barclays loan cancelled, thanks to legal hotshot Adriana Stoyanova. The "Erin Brockovich of timeshare" achieved a watershed victory for 1400 consumers, against all the odds, due to the banking giant's involvement with disgraced Maltese timeshare company Azure.

Mr Mrs X were awarded the £35,000 they had already paid. They were also awarded simple interest at 8%.

The simple interest was another £14,250.

"I nearly fell off my chair," says Mr X. "We knew we were getting simple interest, and we thought a few hundred pounds, maybe a thousand. But this changed £35,000 into nearly £50,000.

"What a fantastic surprise."

Claims and advice

Unhappy timeshare owners can often escape their contracts with expert help, provided they fit certain conditions.

The success of Adriana Stoyanova (who collaborates with M1 Legal) against banking giant Barclays has sent shockwaves around the world of timeshare, potentially opening the door for claimants who were sold loans with other credit providers who collaborated with high pressure timeshare resorts.

"Watch this space," says Andrew Cooper, CEO of European Consumer Claims. "A lot of claims industry professionals are working very hard behind the scenes to bring more credit providers to justice for supporting rogue timeshare sales operations.

"For updates on whether you may be able to claim, or for a free, confidential chat about your options, get in touch with our team at ECC. Business hours, Monday to Friday."