UK Timeshare Loan Problems: Your Rights Under the Digital Markets, Competition and Consumers Act 2024 Explained

What Consumers Need to Know

The Digital Markets, Competition and Consumers Act 2024 (the DMCC Act) strengthens consumer protection in the United Kingdom and gives regulators far greater powers to act against unfair business practices.

Although the Act does not regulate the sale of Spanish timeshares themselves, it is highly relevant to United Kingdom consumers who took out loans from United Kingdom lenders to fund those purchases.

Why the DMCC Act Matters for Timeshare Loans

A Spanish timeshare purchase is governed by Spanish law. However, if your timeshare was financed by a loan from a United Kingdom lender, that loan agreement is regulated under United Kingdom law, regardless of where the timeshare is located.

This means that United Kingdom consumer protection rules apply to how the loan was:

• advertised and explained;
• assessed for affordability;
• documented and structured; and
• managed after it was taken out.

Since April 2025, the Competition and Markets Authority has been able to investigate lenders directly and impose penalties where consumer law has been breached. This includes cases involving misleading information, hidden fees, aggressive sales practices, or unclear explanations of consumer rights — all issues commonly reported by consumers with timeshare loans.

Stronger Protections for Consumers

The DMCC Act works alongside existing consumer credit protections rather than replacing them. Consumers may still rely on important rights under the Consumer Credit Act 1974, while regulators now have stronger powers to intervene.

The Competition and Markets Authority can now:

• investigate lenders without going to court first;
• require firms to compensate affected consumers;
• carry out inspections; and
• impose substantial financial penalties.

Financial services firms, including timeshare lenders, have been identified as a sector likely to face increased regulatory scrutiny.

Looking Ahead: Collective Consumer Claims

When Parliament was considering the DMCC Act, it also explored whether the United Kingdom collective proceedings order regime should be expanded beyond competition law claims to include unfair commercial practices more generally.

Although this change was not introduced at this stage, its serious consideration signals the direction of travel. It remains a real possibility that, in the future, consumers may be able to bring group claims for widespread unfair lending or mis‑selling, including in the financial services and timeshare sectors. If introduced, this would significantly strengthen consumers’ ability to challenge systemic misconduct.

What Can I Do If I Think My Loan Was Unfair?

If you believe your timeshare loan was mis‑sold or unfair, you may have several options, depending on your circumstances:

• Claim against the lender if you were misled about the cost, risks, or nature of the timeshare or the loan.
• Rely on section 75 of the Consumer Credit Act 1974, which can make the lender responsible for misrepresentation or breach of contract by the overseas timeshare seller.
• Challenge an unfair lending relationship under sections 140A–140B of the Consumer Credit Act, where the loan terms or the lender’s conduct were unfair.
• Complain to the Financial Ombudsman Service, which can award compensation in appropriate cases.
• Seek legal advice on whether regulatory breaches, including under the DMCC Act, strengthen your position.

In Summary

The DMCC Act does not change Spanish timeshare law, but it significantly strengthens protections for United Kingdom consumers who financed those purchases through United Kingdom lenders. Regulators now have greater powers to act, and the law is clearly moving towards stronger consumer enforcement and accountability.

For consumers with timeshare loans, this represents a meaningful shift in their favour — both now and looking ahead.