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Edwin Coe LLP


Silverpoint: A Costly Experience for Some

For a long time Silverpoint which was formerly known as Resort Properties has been misleading clients into purchasing multiple weeks of timeshare, with the promise of a return on their so-called “investment”.

The pitch was very simple, the clients were offered to buy 8 weeks of timeshare which the sales staff termed as “distressed”, these weeks were supposedly those that had been taken back from clients unable to meet their maintenance fees.

During the presentation the rep would explain that the package will cost £20,000, it will then be sold for £25,000 with  Silverpoint taking £2,000 in commission and pay the client £3,000, this represented a 15% return on their purchase. Sounds good, the problem is this was only the beginning of a very costly cycle of purchases which has seen many people losing a great deal of money.

Around a year later the client would return only to find they now faced huge maintenance bills, they also end up at another presentation with a new rep, this one would tell them that the previous rep had sold them the wrong apartments. These studios are not selling and the client needs to purchase one or two bedroom apartments as it is these that people want.

They are talked into changing their “portfolio” to the better one, for a further cost of £10,000 plus, with the maintenance fee being waived for another year.

Again as time goes by, they are told that nothing is selling and that they need to upgrade their “portfolio” yet again. This rep would now say they can trade in their previous purchases and for a further cost of between £17,000 and £25,000, they can buy into the Paradiso Membership. The maintenance fees will only be £500 p.a. They are also promised that when the resales start in 2 to 3 years time they will double their initial outlay.

There is also another twist to this tale, in order to get around the timeshare laws, Mark Cushaway and his team came up with another scheme, The Company Participation package. This is where the clients are transferred from the Paradiso membership and sold “shares” in the company Club Paradiso. These sales are also now subject to legal action, so it is only a matter of time before we see these cases coming before the courts.

This not only happened in Tenerife, Silverpoints Malta based operation, Azure Resorts did exactly the same thing.

Many of these sales were also financed by loan agreements with Barclay Partner Finance, all conveniently arranged by the sales staff. These are also subject to legal action in the UK, most notably by Edwin Coe LLP a leading law firm based in London.

In the following video one client taken in first by Resort Properties and then Silverpoint, recorded his meeting with the then sales manager David Taylor and posted it on youtube, in this recording you can clearly hear the promises being made, with what can only be described as a plea to stop the court action this client was taking. Just listen to the garbage that Taylor spouts about the Data Protection act and that Silverpoint are a different company, yet the CEO is still Mark Cushway and David Taylor is still the Sales Manager.

Many of these clients are now involved in court cases to get their money back, these are now proving to be very successful. In the past year alone, there have been around 42 rulings made by the Supreme Court against Silverpoint.

The Lower courts in Tenerife are also finding for the clients on an almost daily basis, yet the industry still insists that these cases are not happening. Only last week there were two more sentences from the Supreme Court. (PDF files of the cases below).

Silverpoint Supreme CourtSentence 106-2018

Silverpoint Supreme Court Sentence 108-2018 Silverpoint Supreme CourtSentence 106-2018

Once again these cases were brought by the Lawyers Miguel Rodriguez Ceballos [Nº 2814 ICALPA] and Eva Gutiérrez [Nº 4350 ICALPA] of Canarian Legal Alliance, both very experienced lawyers in the field of timeshare law.

miguel1      evag (1)

Both clients had their contracts declared null and void with the return of all their purchase prices with double the amount of the deposit taken within the cooling off period.

The timeshare law was put into place to protect you the consumer, the timeshare companies have for years been flouting them and it is now that the tide is turning in favour of the consumer. You have the full protection of the law and the courts are proving this by finding in favour of the clients and this is costing the industry dearly.

If you have had dealings with this or any other timeshare company and want to know if your contract is illegal, or if you have a valid claim then contact Inside Timeshare and get it confirmed one way or the other. There are many companies springing up that will say that you do have a case, even if you don’t.



Shawbrook Bank Announce Irregularities in Timeshare Loans, Similar Activities in the USA.

For many people their Timeshare or Holiday Ownership was paid for on Finance, these loans were usually arranged on the day of signing the contract by the sales staff. One of these lenders is a bank called Shawbrook Bank, with their head office located in Brentwood Essex. The bank was founded in 2011 and according to their web site works closely with the holiday ownership industry to provide finance for their customers.


Unfortunately it was announced recently that the bank had set aside around £9 million to cover any defaults in these loans. This has come about due to the discovery of irregularities in the issuing of these loans.


Shawbrook Bank has admitted that it did not do its due diligence when approving the finance for holiday ownership products. One of its biggest partners is Diamond Resorts, whose aggressive style of selling has resulted in many people being over stretched financially, then being lumbered with a product that they find is unworkable. They are also stuck with management fees that are continually rising, also being unable to get out of their contracts.


What did Shawbrook miss on its due diligence?


Quite simple, finance agreements made out by sales staff on the day of the sale have not had the usual credit checks made. Normally when a loan is applied for there are several checks that are made, we all know this as at some point we have had them. Firstly, does the applicant earn enough to qualify for the loan. Secondly, can the applicant actually afford the repayments, after other payments are taken into consideration, i.e. mortgage, living expenses etc. Lastly does the applicant have a good credit history, in other words have they defaulted on any other finance, be it loans or credit cards, or have they had county court judgements made against them


All these are the usual checks, being unable to fulfil any of these criteria would normally prevent the loan from going through.


Another aspect is how the applications are filled out, Many people spoken to over the years have said that the application had been filled out by the staff. It later transpired that the purpose of the loan had been made out as “home improvements” nothing to do with the purchase of holiday ownership. In some cases, even the income has been falsified. Unfortunately, for the applicant this could lead them to the possibility of criminal charges, after all they have signed the form.


This is not the first time a bank has hit the news in relation to holiday ownership, Barclays Partner Finance has been the subject to action in the High Court on this matter. Edwin Coe LLP, represented many clients of Resort Properties, who had been sold “investment packs” which were then financed by Barclays Partner Finance. On 16 August 2015, Edwin Coe LLP announced that the High Court had decided in favour of the consumer.


Many of these loans did not have the usual credit checks made, in fact Inside Timeshare is aware of an elderly couple who had been given one of these loans. They had been talked into one of the Resort Properties / Silverpointinvestment packs”, at the time he was 8o years old his wife 76, the loan was for £30,000, yet both are on pensions. When Inside Timeshare spoke with them, the question asked was, had you gone to your bank, do you think they would have provided the loan? Well we all know what the answer to that is. They are now taking legal action.


Unfortunately this is not just the case for Europe, in the United States the same controversy exists.


Roddy Boyd of the Southern Investigative Reporting Foundation has been highlighting this, on 27 April 2016, he published an article on a Credit Union which has been supplying loans for Diamond Resorts clients. Quorum Federal Credit Union has been in operation for 82 years, as with all credit unions they are member based.



Quorum, has been supplying loans for the holiday ownership industry for years, Diamond Resorts are their largest portfolio. Diamond tend to send the riskier applicants to the credit union, these are those in the lower credit ratings, what the Americans call “subprime”. In other words the banks would not touch them with the proverbial barge pole.


According to Roddy Boyd the deal provided around $40 million in loans for Diamond and in return these borrowers became members of Quorum. Sounds like a win win for both, (not the consumer).


At least Shawbrook Bank have admitted that it has seen a problem in this area, setting aside a substantial amount to cover any future problems. In the end a loan for a holiday product which will on average be around £10,000 or more, is a huge commitment, not one that should be signed and approved on the day. Especially by the sales staff who have a vested interest in getting the “deal”.


Inside Timeshare would like to thank Irene Parker of the The Street for supplying the link to Roddy Boyd´s article. Do read it in full yourself as we have only just touched the surface, also read the following link, again it makes interesting reading.


If you have any questions relating to this article or any others published contact Inside Timeshare and we will try to find the answer for you.


My Thoughts Today (End of May)

We are now at the end of May, it has proven to be quite an interesting month. It began with the start of the RCI class action brought by Edwin Coe LLP, as yet no news from the case is available. It went into a second week, and as we all know the legal system takes time, so we do not expect any judgement from the High Court anytime soon. But we will keep you informed as and when the news comes in.


It has also been a very expensive month for some of the resorts with huge awards being issued by the courts in Spain. One firm has secured a massive payout in the past week for one of its clients, with many other cases in the pipeline. This has shown that the authorities in Spain are taking the matter of companies selling against the rules very seriously indeed.

legal clipart

The case of Mrs B now seems to be at an end, as stated in a previous article, the paperwork she has, does state her timeshare has been sold. This was on a document signed and sealed by a Public Notary. It now only leaves the matter of the resort to accept this fact, but due to her age and health somehow I don’t think they will bother to cause any more problems. After all it isn’t really in their best interest to pursue this and end up with a very bad public image.


Earlier in the month we ran an article on happy owners, once again thanks to Kim and Andy for taking the time to talk about and write down some of their experiences. This piece did show that for some timeshare does work well. It also showed that like anything else you have to learn how to use it. Timeshare is a good concept, it is just a shame that in the past it has been sold with flaws. The current situation with the law being clarified in Spain bears this out.

bogus clipart

We have also issued warnings about bogus law firms, these have been claiming that courts have awarded payments to owners who have lost money to resale companies. These have been followed by calls from bodies claiming to be either inland revenue or other officials. Then comes the crunch, you have to send them by bank transfer a tax payment. It was also highlighted that many of these entities are using names or very similar names to genuine companies.


It was also announce this month that The Privileged Club had filed for liquidation, apparently this is because the owner is seriously ill and cannot continue to run the club. Unfortunately we don’t yet know what will happen to the members, hopefully another club will take them on. We hope that Gary Woodward does indeed get well.


Articles on the history of timeshare were also published, showing how it has developed over the years. We ended with an article about one of the most infamous resale crooks on the Costa del Sol, whose business was the model for all subsequent scam companies. The question on this last piece is will he be making a return when released from prison? Lets hope not.

It now only leaves Inside Timeshare to say have great bank holiday weekend, we hope that the weather is fine for you to begin the BBQ´s. Remember do your research before entering into and contract, check and check again. If in doubt or don’t know where to look contact us and we will give you the advise.




High Court Action and RCI: Update.

The RCI High Court Action is underway, the Financial Times published a story by Jane Croft outlining the history over the case. (see link below).


As we previously stated this action is being conducted on behalf of Four RCI members by Edwin Coe LLP, another 483 members are also part of this case. They alledge that RCI has skimmed off weeks from the exchange inventory, thus depriving members the exchanges they had been promised when signing up to the RCI exchange system.


RCI which is part of the American Wyndham Worldwide hospitality company, has since it was founded in 1974 been the major timeshare exchange system. It allows timeshare owners to bank and exchange their resorts for others worldwide, thus increasing the number of locations owners can choose from.


We stated in a previous article this case follows one taken in the U.S. The members stated that they were unable to get the exchanges they requested or were promised when they joined the exchange group, they alledge that RCI had been renting out the weeks in the inventory to non members for profit. Members pay a fee to join and a yearly membership fee, they also pay for the exchanges, there is also a system of bonus weeks.


Bonus weeks are offered to members in order fill unused weeks in the inventory, these weeks are those that have not been booked, so are available to be used. Typically they will be offered as last minute deals, not unlike those offered by high street travel agents in order to clear remaining inventory. This in itself is good as it does allow the resorts to have a flow of guests as well as giving owners extra holidays.


The QC representing RCI Charles Graham, stated in his opening that the allegations of skimming were unfounded, because of the advantages of the “open exchange system”. RCI in a written statement stated that they were entitled to use members timeshares as they saw fit. Apparently this is due to a clause in the contract referred to as “ Permitted use”. Well I am not sure what this all means, so we will have to wait for the legal eagles to conclude their arguments.


If the members succeed in this case it may just open up the flood gate to more litigation, again this is another example of an industry being brought into disrepute. We have said it before, they only have themselves to blame, rather than look after the owners/members they seek only profit. We are not saying that making a profit is wrong, but at the expense of their own clients it does seem to be a tad unethical.

flood gate

Inside Timeshare will keep you up to date as the news comes in, so watch this space.


If you have any news or information about any company, or have had a problem and would like to share this with others, Inside Timeshare would like to hear from you. Contact us through the comments section and we will get back to you for further information. Inside Timeshare exists to keep you the owner’s informed and up to date. You will not get this information from your own timeshare companies, they want you to stay in the dark.


My Thoughts Today.

Every morning I switch on my computer and start looking at the various timeshare related websites, I am amazed at some of the verbal diatribe that many present. The use of language to say the least is appalling, most of the time the content does not even reflect the topic that they headline.


One site that I looked at today, which shall remain nameless, could not even get the details of their association correct. Rather than saying National Association it stated they were members of a Nation Association. If they can not even get these small facts correct, how can you even trust what they offer?


Most at the end of the day are just after your money, they do not really care if you have been wronged. The information given is confusing to say the least. Facts are not given, sources are none existent, and most of the time they are either timeshare industry related or on the periphery.


One piece I was reading today was from the Chief Executive of the RDO, in his blog of January 4th 2016, He ranted on about the legal system in Spain, that it had got the laws wrong on timeshare, from how I read it only English law was correct. Mind you, it was in defence of his own industry, TIMESHARE. The industry that his organisation should be regulating and ensuring that its members do the right thing.


This organisation only exists to make sure they have a business, the consumer is just fodder for their coffers. Is it any wonder that there are so many claims going through the courts, when the governing body will not even investigate its own members? If they did what they should and what is right, maybe there would not be so much controversy around the industry.


Timeshare is a sound concept, it is the way in which it is sold that is the problem. All the lies that “UPS” are told on the sales decks, nothing in writing apart from the contracts, which as we have seen from the Spanish courts in accordance with EU Directives on timeshare, are unfair and illegal. How many times have we heard “it’s an investment, you are buying bricks and mortar”. “Your children can inherit it, what a legacy to give them, something they will remember you by”.

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