Inside Timeshare has had more emails regarding Claims Assistance Bureau Ltd, the cold calling company contacting Eze Group clients with tales of money being awarded by the courts and court cases within the next few weeks. The original warning was published on 18 February.
Well it would seem that they have changed their name in the calls to Claims Advice Bureau UK, which from our research there is a genuine company called Claims Advice Bureau (UK) Ltd, with the Company Registration Number 05518043 and the registered address:
According to the details provided on the website they are based in Manchester and are a PPI Agency operating throughout the UK.
They even show a Claims Regulation Management Number CRM 1970, claims management is regulated by the Ministry of Justice and their website confirms that this company is duly registered and authorised:
So they have now hijacked a genuine company so when you do your searches on the internet, you will find them and be taken in.
Inside Timeshare has spoken with the director of this company today so they are now aware of the situation, we shall be sending them all the details that we have. So hopefully these “fraudsters” will get caught.
As we know, these people with the name Harry Evans, Claire Bruce , Mel Rhys and have concocted some very believable stories that they are acting as intermediaries for the courts. Which we know would never happen.
As you can see these are standard gmail accounts which do not link to any company website, which should always cause alarm bells to ring.
The latest story from Harry Evans, which is then backed up by Claire Bruce in an email, this time there is a case underway in the Madrid Courts against Eze Group, which we do know is not the truth. But according to Harry and then backed up by Claire in the email, they will have the clients money of over £15,000 back in TEN, YES, TEN days! Wow, that is very fast work, Inside Timeshare has never known any payout to be that quick, they are obviously great miracle workers!
So there we have it, not only are they committing fraud by taking money from Eze Group clients under false pretences, they are also committing a very serious crime of using a genuine companies name, along with the Portuguese Chamber of Commerce, The Bank of Spain and The High Court of Madrid to lend credence to this FRAUD.
If you have been contacted by Harry Evans, Claire Bruce, Mel Rhys under the name of Claims Assistance Bureau or using the name Claims Advice Bureau UK, then contact Inside Timeshare with all the details, we will ensure that it goes to the right authorities.
JUST REMEMBER DO NOT BELIEVE THEM AND DO NOT PAY ANY MONEY!
Need help or advice on any company the has contacted you, that you have found on the internet or in any publication and want to know if they are genuine or a fraud?
Do you have a problem with your timeshare and want to know what options are available to you?
Then use our contact page and Inside Timeshare will give you the best advice possible, all free of charge.
Welcome to The Tuesday Slot, this week Irene Parker looks at the question which is rather unique to the US, it is something we in Europe do not have a problem with. Irene also includes a very good explanation from Attorney Mike Finn.
The Timeshare Tax Trap
By Irene Parker
February 26, 2019
Inside Timeshare has heard from 719 timeshare families. Of the 719, 98 are veterans and active duty service members. All but a handful allege unfair and deceptive timeshare sales practices. The most common complaint is being told you can pay your maintenance fees using points when programs as described do not exist. Others report being assured their timeshare could be sold only by purchasing additional points.
It’s bad enough to be lied to, suffer the frustration of groveling before customer services representatives who dismiss your complaint with “You signed a contract,” then undertake the arduous process of filing regulatory, and in some cases, law enforcement complaints. After you think it is finally over and done with, you get one of these 1099Cs in the mail after your timeshare loan has been cancelled, Blood pressure rises again.
We can’t give tax advice, so we rely on professionals to point you in the right direction. We published information on how to dispute phantom income last year on April 6. Given we have already received many questions about this pesky form this current tax season, we are publishing earlier this year hoping to calm our readers before receiving an IRS form 1099-C.
Here’s the word from the professionals:
1099-C: Cancellation of Debt
At the time the seller/borrower obtained the loan to purchase or refinance the property, the loan proceeds were not included in taxable income because the borrower had an obligation to repay the lender. When that obligation to repay the lender is forgiven or cancelled, the amount that is not required to be repaid is considered income by the IRS. The lender is required to report the amount of the cancelled debt to the borrower and the IRS on Form 1099-C, when the forgiven debt is $600 or greater.
Excerpt from attorney Mike Finn’s Learning Center article on timeshare loan forgiveness:
The 1099 form is referencing a large amount which may very well be taxable income! Unlike the mortgage balance forgiven, which would have been spread out over the life of the loan, this possibly taxable sum has now been reported to the IRS all at once, in one lump sum! Say the amount reported is about $25,000. Say further that your tax bracket is 20%, a rate on the lower end of the scale. Your new added tax bill is $5,000, and it’s all due by April 15th!
Consult with a tax professional before you assume that your receipt of a 1099 form from a timeshare developer automatically means you’re staring down significant tax liability.
Please understand we are not providing tax advice, merely a possible position that we believe is quite tenable and may be worth exploring with your own tax advisor. Although it’s accurate for me to state that I was a Certified Public Accountant, it is much more important to note that my C.P.A. licensure has long ago lapsed (because I didn’t choose to keep up with the annual professional education courses necessary to retain my certification). Please take your tax preparation advice solely from your own qualified tax return preparer.
Every tax filer is unique, with differing facts and circumstances. I am not offering, nor should you interpret my comments, as tax advice.
The receipt of these 1099 forms creates confusion.
I point you to IRS form #982. This is the form that the IRS advises should be filed along with the income tax return itself as a form of supporting schedule, which provides notification to the IRS that the amount presented to them via a 1099 is being acknowledged, but further, that the amount listed should be excluded from the taxpayer’s gross income. The myriad of possible reasons provided on the 982 form are in and of themselves confusing and difficult to understand. I’m therefore providing my readers what I suggest may be appropriate reasoning in concluding that, in many cases, there should be no “income tax penalty” imposed after successfully negotiating a release of contract with your timeshare resort.
Allow me to provide my argument as to why some forms of debt forgiveness may well be construed as taxable income, and then differentiate the negotiated act of cancelling a timeshare contract and why this transaction therefore logically should be treated differently.
Since “income” generally means a measure of accretion of wealth or value added to your worth, then the cancellation of a debt, when that debt was incurred when you received something of value, should be counted as income because the elimination of the debt liability plus the retention of the item acquired when the debt was incurred increases your net worth. Under this definition of added wealth, the taxing of same would be quite logical.
Applying this argument to the cancellation of a timeshare contractual obligation and its related underlying indebtedness, it’s immediately evident that the cancelled owner has retained absolutely nothing of value. They’ve surrendered their interest in exchange for a debt and/or contract cancellation, but after the transaction they have absolutely no accretion of net worth.
In terms of taxpayer reporting requirements, the issue becomes murkier when you apply it to timeshare transactions. Whether or not the industry will ever acknowledge that the resale value of a timeshare interest is minimal at best, what we can establish is that it would be extremely unusual for anyone other than the resort developer to acquire the timeshare interest at foreclosure, and therefore the liquidated basis of the interest will nearly always be zero, or at best a nominal value at foreclosure. Also making the timeshare transaction more complex in terms of following the instructions of either IRS form 982 and/or publication 4681 relating to this issue is determining whether the underlying debt should be viewed as “recourse” or “non-recourse,” given the propensity of the developers to utilize non-recourse based non-judicial foreclosures to recover the interest the greatest majority of the time.
I’ve intentionally attempted to avoid becoming overly technical in terms of specifically advising of taxpayer reporting requirements other than to suggest very generally that the filing of the IRS form 982 will most probably be required. Lastly again, I do most strongly recommend utilizing a professional tax return preparer, as these forms are not at all intuitive.
I earnestly wish that I could offer something less complex to help provide absolute answers to this prominent issue, but I do feel that this is important because the financial ramifications are potentially high.
Once again, thank you to Mike Finn for his experienced advice. Contact Inside Timeshare if you have a timeshare concern or a story to share. If we don’t know the answer we will find someone who does.
Self-help groups we feel are not industry influenced:
We seek to provide timeshare members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.
Thank you Irene for this article and thanks to Mike Finn for his contribution, as usual you explain things in a way that us mere mortals can understand.
If you have a problem with your timeshare, have been contacted by any company offering you what looks like a very simple solution, but are not sure if they are genuine, than use our contact page and we will point you in the right direction.
Welcome to the start of another week with Inside Timeshare, we have had more emails from concerned readers regarding Claims Assistant Bureau, a company we highlighted only last week.
As we know, this company is calling timeshare owners along with those who have had dealings with Eze Group, they claim they have been appointed by the courts to tack down owners who have had money awarded to them and is being held by various courts.
According to Harry Evans and then back up by an email from Mel Rhys, Regency Shores Holdings SL (Eze Group), have recently been in court in Tenerife. The court is now holding a substantial amount which Claims Assistant Bureau will be able to get back for you, for a fee that is.
Well we do know that there has not been any court case in Tenerife against Regency Shores, the only court case is at Birmingham Crown Court against Eze Europe Ltd, Dominic O’Reilly and Stephanie O’Reilly. That case is yet to be concluded, with sentencing due to take place in March.
Another fact is they also claim that they are backed up and guaranteed by The Portuguese Chamber of Commerce, The Bank of Spain and the High Court of Madrid.
Another reader who we spoke with was very suspicious, as the person on the phone was contradicting himself so much it set off alarm bells. Below are the company details along with a link to the article publish on 18 February.
14 Victories in the Courts of First Instance against Anfi
1 High Court judgement against Anfi
2 First Instance victories against Silverpoint
2 High Court victories against Silverpoint
1 First Instance against Holiday Club Finland
1 First Instance against Club La Costa
In all these 21 sentences the contracts were declared null and void, the total claim value has yet to be released, but it is believed to be very substantial.
In further news from the Courts in Maspalomas, another 8 cases have been sent for sentencing at the pre-trial stage. It appears the judges are dispensing with the need for a full trial, which is only good news for the clients. This will result in cases being concluded in a much faster manner, with payouts being much quicker.
Obviously it will not be long before other courts in Spain start doing the same thing, it is obvious now that the laws put into place to protect consumers are solid and are being enforced by the courts.
Have you been contacted by any company mentioned in any of our articles, or one that you have found on the internet or even from an advert in a newspaper or magazine?
Do you want to find out if they are genuine and not sure how to do this?
Have you been told you have a valid claim and want to know if it is true?
Then use our contact page and send us a message, we will point you in the right direction.
