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Barclay Partner Finance

Press Release from CLA, Plus a Quick Look at the Biggest Timeshare Fraud in History

As August is very much the summer holiday month, there is not a lot of news from the courts in Spain, but it is a month when some of the new names and old ones will be making a comeback on the scam front. We will be keeping a watch on these and will start reporting them as and when they do become active.

Following on from Start the Week on Monday, we reported the news from the Royal Courts of Justice regarding the case of the Financial Conduct Authority and the validation order issued to Barclay Partner Finance:

http://insidetimeshare.com/start-the-week-13/

We have been given the following press release from Canarian Legal Alliance.

On 19 June 2018, a representative from Canarian Legal Alliance attended the hearing at the Royal Courts of Justice, Upper Tribunal, Tax and Chancery Division, to represent the interests of one of our clients.

These clients had been sold timeshare in Malta by Azure Resorts and were financed by loan agreements with Barclay Partner Finance. It transpires that these loan agreements were brokered by an unauthorised agent Azure Services Ltd. As such these agreements breached the Financial Services and Markets Act 2000.

This affected 1,444 credit agreements with a total value of £47 million, in the period between 1 April 2014 and 24 April 2016.

This made the agreements unenforceable, which entitled the borrowers to recover their money and have the agreements cancelled. Therefore BPF applied to the Financial Conduct Authority in May 2017 to have a validation order issued to rectify this. The FCA on the evidence and information at the time issued the order to validate the loan agreements in February 2018.

This validation would then entitle BPF to retain money paid to them under the agreements, also allowing BPF to enforce payments by any consumer who defaulted.

On 1 August 2018 Judge Timothy Herrington issued his judgement, in his ruling he stated the FCA should re-examine the original order and take into account “client detriment”, a factor which the FCA had not considered in the original order.

In the case of our client, this “client detriment” is very clear, they were mislead into purchasing the timeshare as an investment with the promise of income rental and then resale, which never materialised. They were pressured into signing the loan agreement after hours of high pressure timeshare sales tactics, even though our client explained they could ill afford the timeshare.

They were not explained the terms and conditions of the agreement or the full extent of the cost, the product they were purchasing was not suitable for their needs and would not fulfill the promises given. They were also mislead as to the length of the loan agreement, being 2 years and not 15 years which it turned out to be.

There were no proper credit checks made with regards to affordability or the ability to afford the repayments, they were not asked to provide any proof of income (bearing in mind they were both in their 70’s and on pensions), or any proof of outgoings.

Once the validation order is overturned by the FCA, this will leave our client able to recover all money paid to BPF and have the loan agreement declared null and void.

This ruling may also have an effect on loan agreement for timeshares purchased via loans even by an authorised broker. As a law firm we have many clients who have gone through the same process, lengthy presentations, high pressure sales and no proper checks regarding the ability to afford the repayments. We believe this may give clients an avenue to have these agreements cancelled and be reimbursed the money paid.

Canarian Legal Alliance

Our thanks to CLA for that information, now a quick look at an old story which was prompted by an item on ITV News, this was an interview by the wife of John “Goldfinger” Palmer who was shot and killed at his Essex home in June 2015.

In the interview she expressed her disbelief at the inability of Essex Police to find her husband’s killer, which the police believe was a professional hit. She also claimed she felt “sorry” for those who lost thousands in the timeshare scam. This is after she started the interview with “It was a wonderful Lifestyle” and “We had everything we possibly could want”. On whose money is the question?

The timeshare scam involved 17,000 victims and was worth over £100 million, it revolved around the multiple selling of timeshare units, resorts that had not been built or ever going to be built and ones without any planning permission.

It has been regarded as the biggest timeshare fraud in history.

Palmer was eventually jailed for 8 years in 2001 in the UK after being convicted for timeshare fraud. He was also ordered to repay around £33 million to his victims, but as the Crown Prosecution Service bungled the paperwork this order was overturned to the consternation of the police. He was released in 2005 and returned to Tenerife.

He was eventually arrested on the runway and bundled into a military transport and taken to Madrid to await trial by the Spanish authorities, he spent 2 years in jail and was then released on bail returning to the UK. The rest as they say is history.

Click on the link below to see the interview and the second link which is a report by Roger Cook made around 2 years ago on the full story of John “Goldfinger” Palmer, from his involvement in the Brinks Mat bullion robbery through to his timeshare frauds.

https://www.facebook.com/ITVWestcountry/videos/2076879189011352/

Join us tomorrow for our Letter from America, this week Irene Parker reports on the Whistleblowers Summit which she attended in Washington DC in July, you will certainly find it a revelation.

 

News on Wednesday: More Warnings

We start today with another warning about the “Fake Law Firm”, Abogados Lopez, more readers have contacted Inside Timeshare with information on the calls they have received from Hope Brugge, claiming to be working for Canarian Legal Alliance.

According to our readers, many of whom are existing clients of CLA, the call is to inform them that their case is about to go to court and she needs to confirm some information before submitting the case. This is obviously a fishing call, as if you have a case with a legitimate law firm they would already have those detail and they would have been confirmed at the start.

Within a few day Hope Brugge calls again and informs the client that the case has been won and a substantial amount of money has been awarded. In order to have this money released, (yes you guessed it), Hope Brugge and Abogados Lopez need a fee to release it. The client is given bank details for a named individual to transfer the money.

The telephone numbers being used are:

0034 951 242 867 which is a Malaga code

0034 602 654 670 which is a Spanish mobile

Another number that has been used is

0044 1291 440 500 which is a Chepstow code.

If you receive any call of this nature do not be fooled by them, if you are an existing client of any law firm, contact them directly and inform them.

This is a blatant fraud, which the authorities are aware of.

Another reader has also informed us that another company has been contacting owners who purchased with Azure Resorts in Malta, using a Barclay Partner Finance loan agreements. Unfortunately the reader was not able to get the name properly so we will not speculate and guess.

According to the caller they are working with the FCA (Financial Conduct Authority) to bring a “class action” against Barclay Partner Finance on the 19 June, all rather urgent wouldn’t you say?

There is a case on that date being brought by the FCA, but this has nothing to do with what this company are on about. The case is being heard at the Upper Tribunal (Tax and Chancery) of the Royal Courts of Justice.

The case revolves around a validation order sought by BPF for loan agreements made by Azure Resorts for timeshares in Malta, it turns out that the company brokering and arranging the loans was not authorised or licenced by BPF to do so. BPF turned to the FCA to have these agreements validated. These are only for certain clients who signed these agreements between April 214 and April 2016. If you did not receive any information about this in February 2018, then you are not involved.

The FCA on the evidence made out a validation order to have the loans legally recognised, as no client had suffered the “possibility of any consumer detriment arising from the manner in which the unauthorised broker carried out its activities”.

Unfortunately, the FCA was not aware of the full facts and many clients made complaints, the FCA has now sought to have this validation order overturned in the light of these complaints and new evidence put forward by the clients.

Inside Timeshare will keep you updated as to the outcome of this hearing.

It seems that according to information from our readers, Claims Solutions Group are contacting Silverpoint clients, (which we already knew), but this time using Brexit as the reason only they can help.

According to the caller, once the UK leaves the EU, it is going to be very difficult for any owner of a Silverpoint timeshare to get out. Now why would this be the case?

Obviously it is another scare tactic, to get Silverpoint owners to take up their services, for a fee off course, to get them out of a Silverpoint timeshare. Remember Silverpoint are working with this company and FullBrook Associates.

http://insidetimeshare.com/start-the-week-new-information-on-centaurus-mediations/

Sticking with Silverpoint, another company Centaurus Mediations is also using another tactic, this time it is at their offices in Tenerife. According to our reader, they were told that Centaurus had been appointed by the court to mediate following several court cases against Silverpoint, many of these cases have been reported on these pages.

Now considering that Centaurus Mediations is part of the Silverpoint setup, using data supplied by Silverpoint, plus the fact that the courts do not appoint any company to mediate or carry out any work such as this, points to one blatant lie. Only one of the many made over the years that Silverpoint have been operating.

The one thing in common is they all state that it is only them that can get you out, well Inside Timeshare begs to differ, the court results that we have reported on show that Silverpoint is on the run. At least 45 rulings against them from the Supreme Court, rulings against them on an almost daily basis in the lower courts, with many more waiting to be heard, that is the truth of the matter.

If you have any questions or comments on any this or any other article, then use our contact page and get in touch.

Have you been contacted by any company offering you a claim or stating that a case has been won and there is a substantial amount of money waiting for you at court then contact Inside Timeshare, your information can help others avoid losing thousands.

Irene Parker: Barclay Card and Timeshare in the USA.

Back in July Inside Timeshare published the article about Shawbrook Bank setting aside around £9 million, to cover defaults in loans issued by timeshare sales staff. It announced that the bank had not carried out its due diligence in accepting these finance agreements.

The article also highlighted the ongoing high court action brought against Barclay Partner Finance for loans issued for timeshare. These were for the so called “investment” packs being sold by Resort Properties / Silverpoint. Many of the agreements were given without the normal checks being carried out in respect of the clients income or the ability to repay the loans, with many of the applications being falsified in order to get it passed.

Another aspect of the article showed the same thing happening in the USA, with people who did not qualify for normal finance, being passed to a Credit Union. In this case the company was Quorum Federal Credit Union, which would then sign them up as members. These loans accounted for around $40 million for Diamond sales.

It has now been highlighted that sales staff in the US are issuing credit cards, again it is Barclays who are in the picture. Irene Parker, sent the following article.

Barclay card by Irene Parker 10/24/16

barclay-card

There is nothing wrong with travel reward credit cards, but when consumers on vacation get locked into timeshare presentations that can last for hours; credit card lending can turn predatory.

Several banks have come under fire for overzealous sales practices. Wells Fargo and Barclays Bank through Barclays Partner Finance, along with other U.K. banks, have come under regulatory scrutiny and been the subject of lawsuits for a host of reasons, including predatory lending through the use of timeshare developer-sponsored credit cards.

Shawbrook Bank in the U.K. has admitted that it didn’t do its due diligence when approving the finance for vacation ownership products. One of its biggest partners is Diamond Resorts International, a timeshare company that has come under fire for its aggressive sales practices.

Diamond offers a Diamond Resorts Barclaycard Master Card with a 0% promotional six month APR if used for a Diamond Vacation Ownership Interest down payment, along with Diamond Resorts International reward points for other purchases. After that, it is a variable APR of 15.24%, 19.24% or 22.24% depending on creditworthiness.

Diamond Resorts International’s primary business segments are hospitality and management services and vacation ownership interest, or vacation points sales, and financing.

It is the financing component that often makes people with vacation brain sign a contract on impulse for perpetuity, not even having used the vacation service at the time of purchase. The decision is often based on how well the buyer likes the resort if they aren’t an existing owner. In other words, they may not use the booking program until the next vacation.

As an example, Arthur Saldana, 55, and his wife Sylvia, 49, have been Diamond Resort International owners for several years. They owned a deeded week at the Sunterra London Bridge Resort in Havasu, Ariz., for about 10 years prior to Diamond Resorts International acquiring Sunterra in 2007.

The couple was persuaded to give up a deeded week, one that came with a deed that has a limited secondary market, in exchange for timeshare points that are non-deeded with no secondary market. During a series of five sales presentations over a five-year period, the Saldanas accumulated 30,000 Diamond Resorts International points that elevated them to gold status in 2013.

Sylvia Saldana said that she and her husband signed many contracts, and they thought they were actually helping their children. “We thought that after we paid off the Diamond mortgage our four children would only have to pay maintenance fees,” she said.

But maintenance fees increased to the point where they could no longer afford to own their points. The family soon found that they had to charge maintenance fees to their credit card in order to pay them.

The Saldanas had already taken out a $33,000 home equity loan from their credit union to reduce the high Diamond Resorts International loan interest rate, typically 14% to 18%.

Worse, the children, now almost grown, say that they have no interest in timeshares.

At their last stay at a Diamond Resorts International resort in August 2015, Sylvia Saldana said that a sales agent tried to convince them to purchase another 10,000 points in order to achieve platinum level, which is 50,000 points (Remember they owned 30,000 points).

The sales agent explained that by being platinum, it would allow the couple to pay their maintenance fees with their points, as only platinum members are allowed to use their points to pay maintenance fees, Sylvia Saldana said.

At the time of the 2015 presentation, Diamond Resorts International’s FAQ indicated that as of that year, only platinum members could exchange points for a monetary credit toward the cost of their annual maintenance fees for their collection membership and points and/or dues for the club.

A Diamond Resorts International representative who gave her name as Pamela — these reps aren’t allowed by the company to provide their last names — confirmed that “only platinum members can use their points to pay maintenance fees. Any member can open a Barclaycard to pay fees.”

When we purchased our Diamond Resorts International contract, we were told that the practice of using points to pay maintenance fees isn’t encouraged due to the point value being reduced to pennies on the dollar if used to pay maintenance fees.

The sales agent aggressively tried to persuade the family to open a Diamond Resorts International credit card to pay for the additional points, despite the fact that they couldn’t afford the fees, Sylvia Saldana said.

Arthur Saldana became so angry, he left the presentation.

Fortunately, the couple realized that the credit card wasn’t a prudent solution to their problem.

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