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Silverpoint

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

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.

 

http://www.telegraph.co.uk/business/2016/06/28/shawbrook-banks-shares-plunge-on-9m-hit-from-dodgy-lending/

http://www.thisismoney.co.uk/money/markets/article-3663651/Shares-Shawbrook-drop-challenger-bank-reveals-loan-irregularities-cost-9m-finance-chief-quits.html

 

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.

edwincoe

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.

http://www.edwincoe.com/our-expertise/group-action-litigation/resort-properties-barclays-partner-finance/

http://www.edwincoe.com/high-court-decides-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.

barclays

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

http://sirf-online.org/2016/04/27/the-enabler-and-the-lifeline-diamond-resorts-and-quorum-fcu/

 

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.

 

http://sirf-online.org/2016/03/07/27464/

 

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.

TCA Highlight Silverpoint Preying on the Vulnerable.

The TCA yesterday 8 June 2016, published an article regarding how Silverpoint (Resort Properties) may be taking advantage of existing members who they know are in a vulnerable position.

tca logo

The TCA have received a letter from a couple who outlined their dealings with Silverpoint. The couple are retired and care for a daughter who is severely disabled, what follows is in my mind just disgusting.

 

The sales rep on finding this out called in his manager, he offered them a “FAVOUR”. They were offered an Investment, which is illegal in the selling of timeshare. This favour was to spend another sum around £10,000 on a one week unit of timeshare, this unit would then be rented out in 2015 by Silverpoint on their behalf in 2015 for £800.

silverpointlogo

 

 

 

After this Silverpoint promised to refund the £10,000 as they would then sell it on. When they returned in 2014 they were told this was not then possible and were convinced to trade it in for another resort The Club Paradiso They have now “invested” around £30,000 for timeshare units they can not afford.

 

This particular practice has been going on for many years and there have been many cases upheld in the courts. This particular practice was highlighted in a blog called mindtimeshare the truth by a Mrs Wilson, who had also been taken in by the sales pitch.

 

Please be aware that timeshare does not increase in value and any promise that you will either get your “investment” back or even make a profit is false, it is also against the EU Timeshare Directives. The courts in Spain are very aware of this practice and are now ruling very much in the client’s favour.

 

It is also disappointing that as Silverpoint are also TATOC and RDO members that this has not been stopped. Is it because this company is one of the main contributors of funds to these organisations. After all TATOC should be looking after the interests of the owners and the RDO should be ensuring that its members play according to the rules and the law.

 

tatoc logordo-logo

For the full story follow the link to the TCA and also Mrs Wilson’s blog.

 

http://www.timeshareconsumerassociation.org.uk/2016/06/08/is-silverpoint-preying-on-the-vulnerable/

 

http://www.mindtimesharetruth.com/

 

If you have had any dealings such as this Inside Timeshare would like to hear from you, if you require any information as to how you stand legally we will point you in the right direction.

Here We Go Again! Another Supreme Court Ruling for CLA against Anfi.

Canarian Legal Alliance once again announces another Supreme Court victory against Anfi, this was published on their website on 31 May 2016.

 

The Supreme Court again has awarded one of their clients double the deposit back, due to the fact of taking payments within the 14 day cooling off period. The court has also reinforced the fact that floating weeks and contracts in perpetuity are illegal. This client will be receiving over 30,000€ and have their contract canceled.

 

This now brings the number of rulings by the Supreme Court on behalf of CLA clients to nine. This will obviously have a profound effect on all timeshares sold within Spanish jurisdiction, the floodgates have been opened and there is now no turning back.

 

Consumers now have the full protection of the law despite what the timeshare companies and the trade body the RDO may say. In the end it is only themselves to blame for their present predicament.

 

It has also come to the attention of Inside Timeshare that another case brought in Tenerife against Silverpoint has resulted in a victory. The only information so far is the case was conducted on behalf of a British Silverpoint client, the case was heard by Judge José Pablo Carrera Fernadez. At present we do not know which firm started these proceedings. It would seem that the court in Tenerife has also used the Supreme Court rulings in its judgement. More will be published on this when the information becomes available.

 

Once again congratulations to the respective clients and both the legal teams that fought your cases.

slicksaleman

THE SUPREME COURT STRIKES AGAIN

Inside Timeshare is here to bring you the latest news and information about the world of timeshare. If you need any advise or information about your own timeshare or any company that you may be thinking of dealing with, contact Inside Timeshare for free and impartial advice.

Look Who Is Now Giving Timeshare Advice!!!!

Firstly thank you to the TCA for giving me a good laugh over the past couple of days, with their articles on Silverpoint. Well well well, things never cease to amaze me in the industry of timeshare. The company with the biggest track record of destroying an otherwise good product is now in the business of giving “ADVICE”.

 

http://www.timeshareconsumerassociation.org.uk/2016/04/19/silverpoint-bait-and-switch/

 

http://www.timeshareconsumerassociation.org.uk/2016/04/20/silverpoint-consumer-advice/

Silverpoint_Consumer_advice_Logo_308U

Siverpoint Consumer Advice website, the latest tool in their attempt to deceive the poor old public. The track record of this company is a long and painful one. As many people have found out to their financial cost.

 

Let’s start with their wonderful “Investment Scheme”, selling blocks of weeks with the promise of a return within 2 years of around 15%, with the sale of these weeks. This has cost you around £20,000 to £30,000. Then comes the top up, sorry these weeks that you have are not selling well, because people want something better. Tell you what, why don’t you buy 6 weeks in this resort which is much better, it has a higher sale value and is sought after. What we can do is take the 6 weeks you own already and trade them in for the new one.

 

So they give you a price of say £50,000 with a trade in of £15,000, but you can’t afford this. You also do not want to lose your “investment”, so what do they do? Arrange a finance agreement for you on the day. Barclays Partner Finance is well known for working with Silverpoint and has been the subject of several court cases.

 

Now you have a new “investment deal”. Again the promise is they will sell them for you in 2 years, in the meantime they will rent them for you to help pay the maintenance. Guess what happens next? They can’t sell and want you to trade in for another better resort or even the Sunseeker yachts they used to peddle.

buyerbeware

All this is in the public domain, this company has been and still is the subject of legal action. Below are three videos taken from youtube. The first two show a sales rep called Leanne and then the Sales Director Dave Taylor, basically fobbing off a client who has been duped of around £90,000. The third video shows a courtroom where Dave Taylor, who looks remarkably nervous, trying to say that Silverpoint are not Resort Properties , well this didn’t go down well with the judge. After all the CEO of RP is Mark Cushway, the CEO of Silverpoint is Mark Cushway, the owner of both companies is Bob Trotta. Del Boy would not be proud of the scams that this lot have pulled, at least he had some scruples.

 

https://www.youtube.com/watch?v=qkrdK0shvn4

 

https://www.youtube.com/watch?v=_oNdi4NT4O8

https://www.youtube.com/watch?v=Ksff6yofqJs

 

As you can see from these videos, this company cannot be trusted, so how can they give any advice?

 

They also say on their website only trust RDO and TATOC members, these organisations as Inside Timeshare has previously shown are there only for the benefit of the industry. Not to forget that Mark Cushway is also a board member of the RDO, with Silverpoint being a major contributor to these organisations funding.

rdo-logotatoc logo

I have also looked at the website for Canarian Legal Alliance as they have had great success in court against this company, In the news section under the tag of Silverpoint are the archives of cases won. They show cases going back to 2013, so everything is in the public domain and this company along with the RDO and TATOC are trying to make out that none of this is true. Only their advice is worth anything, well I for one do not believe a word of it, the truth is out there, it is up to you to find it and your choice on who to believe.

 

Inside Timeshare is not affiliated to any timeshare company, the information provided is taken from research and written to provide you with independent views on what should be a great product.

“TIMESHARE” A Dirty Word For Many.

Why does the word Timeshare have such a negative meaning among many people? After all the concept is actually a very sound one, especially in the early days. It gave people a guarantee of high standard resorts, the feeling that you were part of an exclusive club and for many it felt that it was the holiday home they always dreamed about.

apartment

So what changed?

 

During the 1980´s and 90´s which was a boom time for the industry, it was not very well regulated. It was full of what can be described as dubious practices and people. Many of the companies involved especially in Tenerife and Southern Spain had what you might say criminal connections.

 

The industry was policed in the same way as the mafia families in the USA, controlled their various activities. Using some very nasty tactics against rivals. This is not speculation or made up, many times over the years have there been articles in the press and on the news of murders and beatings of rivals.

 

The industry controlled the sales people and the OPC´s (Scratch card touts) with the use of security commonly known as “Clumpers”. These “Security” staff would ensure no one would work on their patch, using various means like clumping, hence the name. Anyone breaking the rules would be on the receiving end of a baseball bat at the very least.

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