When i booked a the hotel Marinada in salou it clearly stated their cancellation policy which said "If cancelled up to 7 days before arrival date no fee will be charged. I booked it through Booking.com whom i contacted and they agreeded with me and is trying to contact them to get my money back.
On the 18th of july when i cancelled the booking my credit card was charged 420Euro. (Arrival date was not until 8/8/2011).