Timeshare compensation Group Sue Barclays Credit over timeshare deals

Clydesdale Financial Services, the consumer credit arm of Barclays Bank, are being sued for more than £1.6 million by a timeshare compensation group consisting of 106 customers, over holiday home timeshare schemes.

The claimants all purchased timeshares in England, Australia, Tenerife and Spain – between 2006 and 2014, through the Resort Properties timeshare club.

In 2011 Resort Properties were taken over by Silverpoint Vacations, according to High Court documents which were uncovered.

The group of claimants have all said they were invited to a presentation by Silverpoint & Resort Properties, receiving a week’s free holiday at a resort as part of an incentive. From here both Silverpoint Vacations and Resort Properties, recommended that customers take out loans with Clydesdale Financial Services to fund their timeshare purchases.

The 106 claimants have said that they were rushed into signing contracts for the timeshares and the full details of the deal were not made clear to them.

It’s then claimed that the group were told the timeshares were an investment that would be easily resold for a profit with the help of the clubs. Further allegations claim that both Resort Properties & Silverpoint Vacations told the consumers they could rent out timeshares to help meet the repayments to Clydesdale and the loan could be paid off by selling their timeshares.

However, the 106 claimants say the clubs misled them over the costs of the timeshares and the contracts they entered, which also had a negative affect on their credit ratings.

Many of the claimants say they were not made aware of the fact they were entering into a credit agreement, or that there was a variable interest rate. The group of consumers also claims the clubs blamed problems selling the timeshares on factors including the global financial recession.

Timehare Claimants Sold Further Timeshare Properties at ‘Club Paradiso’

The clubs then encouraged the group to buy stakes in other timeshares, in order to recoup their initial losses. Many of the claimants then invested more money in an expensive set of timeshare resorts called Club Paradiso.

The 106 claimants are represented by Edwin Coe partner David Greene and say the group are targeting Clydesdale Financial Services under section 75 of the Consumer Credit Act.

This act states says that creditors can be liable for the actions of suppliers. However, Clydesdale denies these claims, saying the lack of detail available is “embarrassing.”

Clydesdale’s legal responses also say that the group’s claims rest heavily on spoken deals, with no exact details being quoted.

They have also said that many timeshare claims are too old to bring forward and that the laws of the countries where the properties are based (Spain, Tenerife and Australia) not the laws of England & Wales should apply to the situation.

Clydesdale has also denied that the Consumer Credit Act now applies, as the licensing system founded by the law finished when the Office of Fair Trading handed over control of consumer credit regulation to the FCA in 2014.

The lender has also stated that the contracts the claimants’ signed fully explained the details of the deal and they do not owe any duty of care to the group.

 

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