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Marriott: More Evidence to Circumvent Spanish Law

Recently Inside Timeshare published the article “Marriott Contracts Circumvent Spanish Laws”, today we reveal another example of this practice by one of the world’s major timeshare developers. Many operators have tried to get around the very strict timeshare laws which Spain enacted on 5 January 1999, by using various methods such as UK limited companies and the inclusion in the contracts of the clause that the contract is bound by and under the jurisdiction of UK laws and courts. This practice did work for a time as judges in the Courts of First Instance did not accept the case as they believed that UK jurisdiction did take precedence over Spanish Jurisdiction.

Last  September Inside Timeshare published the ruling of the High Court of Malaga. This court ruled that although the contract did clearly state UK law and jurisdiction with the sales agents being a UK limited company, they ruled that Spanish Courts did indeed have jurisdiction. The fact the purchase was made in Spain brings the sale directly under Spanish timeshare law.

Inside Timeshare has now received information from yet another reader of Marriott using this practice of selling products from their sales office at Marbella Beach Club but showing the sale as being elsewhere.

Back in 2005, this reader was on holiday around Marbella and was invited to attend a presentation at the Marriott Beach Club Resort, which they duly attended. After a fairly lengthy presentation, which we all know is all too common, our reader signed up for membership.

The presentation was conducted by the sales staff of MVCI Holidays SL, a Spanish entity registered at Marbella Beach Club based in Marbella. The purchase was for membership to Marriott Vacation Club International with the home resort being the Phuket Beach Club in Thailand. Well, this is not really a problem, after all, there are the internal exchanges as well as membership to Interval International which did give them, in theory, plenty of choices worldwide.

Marriott Mai Khao Beach Club Phukett

It is now that the problems come to light, this readers circumstance have now changed, the timeshare is no longer needed or being used. They were then contacted by several “claims” companies with the promise of using the Spanish legal system to recoup the purchase price and have the contract declared null and void as it was illegal under Spanish timeshare law.

They were told they had a very good case and were asked for a sizable amount for legal fees, they decided to investigate further as the company they were talking to had not even asked to see their documents. The whole process was done over the phone.

It is a good job they did decide to look into this, after contacting Inside Timeshare they emailed copies of their documents. We checked the documents with a leading law firm who informed us that there was not a case which could be brought in Spain using Spanish timeshare laws.

Although the presentation was made in Marbella the documentation is signed by a representative of Mai Kao Development Limited a Thai registered company and not of MVCI SL (Marbella).

The seller and sponsor being:

Maikhao Vacation Villas Limited.

The seller’s Agent:

MVCI (Thailand) Limited.

Marriott Ownership Resorts Inc Orlando Florida.

The only reference to Spain is the fact the presentation was made by MVCI SL, this according to the lawyers precluded any case from being filed in a Spanish court.

When we consider the last article where the purchaser who thought they had a membership with Marbella Beach Club but in fact with a resort in Virginia, this does now look like Marriott knew exactly what they were doing. We also have to remember that this is only 6 years after the enactment of the new timeshare laws which prohibited the sale of any timeshare in Spain with a contract of more than 50 years or which included points or floating weeks systems.

Was this a very deliberate and premeditated attempt to circumvent the laws of one country by using entities not associated or registered with it?

We leave you the reader to decide, Inside Timeshare believes it was.

Have you purchased your timeshare with Marriott, have you been contacted and told you do have a valid case?

Do you want to know if what you have been told is true?

If so, please use our contact page and get in touch, Inside Timeshare will get back to you and point you in the right direction.

Link to previous Marriott article.

https://insidetimeshare.com/marriott-contracts-circumvent-spanish-laws/

Start the Week: Huge Payouts Announced

Welcome to another week with Inside Timeshare, we start today with a roundup of news from the end of last week in the courts. It certainly proved rather costly for these timeshare resorts but made their ex-members very happy indeed. As usual, all the contracts have been declared null and void due to serious infringements of Spain’s timeshare laws with the return of all the client’s purchase price.

In the first case which was actually heard and the sentence passed some time ago, Puerto Calma Resort in Gran Canaria has now paid out the client over 41,000€. This money has now been paid to the client via bank transfer. They are now timeshare free as the contract was declared null and void.

Friday was a very bad day for the major timeshare resort in Gran Canaria, in just one day seven sentences were passed by the courts against Anfi. As we know many of the Anfi contracts are illegal as they either contain floating weeks or points systems or the contracts are perpetuity which as the law states should have a duration of not more than 50 years. As in most of these sales, deposits were also taken within the statutory cooling-off period which is also forbidden by law.

The total amount awarded by the courts in these seven cases amount to a massive 213,187.29€, this is certainly a huge hit to the Anfi coffers in one day, the client’s contracts were also declared null and void leaving them timeshare free.

These cases were brought on behalf of these clients by Canarian Legal Alliance, this is further proof that this is one law firm that does actually deliver what they say. So it is congratulations to the clients and also to the whole legal team at CLA.

Lawyers of CLA

The criteria for a valid and viable claim against your timeshare resort is as follows:

The purchase or upgrade must have been made in Spain or any of her territories after 5 January 1999;

The contract duration is more than 50 years or has no end date, what is commonly known as a perpetuity;

It contains points or floating week systems, this may also include fractional and investment packs such as those sold by Silverpoint. This also includes the Company Participation Scheme which replaced the old investment weeks;

Any payment is taken within the 14 days cooling-off period even by a third party. This may also be extended to 90 days where other serious infringements of law have taken place.

There are other laws which may also be used in these cases which include Consumer Law and also Mercantile Law, these tend to be included once the lawyers begin to prepare a case for court.

Moving on to the article published on Friday with regards to the application by Silverpoint to the Mercantile Court to begin proceedings to liquidate the company, Inside Timeshare has received several enquiries on this subject.

The main concern so far has been the same, why have Silverpoint not informed members of this fact?

That is one question that we are unable to answer, we suspect their motive is to just keep it quiet giving as little information to members as possible. We also know that this “liquidation” is an attempt to avoid any further litigation in the courts against them which they are losing on an almost daily basis. It must also be mentioned that the State Prosecutors Office is also conducting an investigation into the reasons behind the liquidation.

Have you had enough of your timeshare and the ever-increasing maintenance fees?

Are you fed up with not being able to get the reservations due to no availability?

Have you found that non-members are able to book into your resorts without the huge “investment” you made and in many cases for less than your annual fees?

If you can answer yes to these questions and your contract falls into the criteria above, then please use our contact page and ask for further details. We will get back to each person with a personal reply as to your own circumstances.

Silverpoint Declares Liquidation: Who will be Next?

Welcome to the Friday edition of Inside Timeshare, today we have some breaking news which has just been made public. There has been a huge amount of speculation regarding the Silverpoint, most of these rumours have claimed that Silverpoint has already been placed into liquidation, that is not actually the case. The process is more complicated than simply “going into liquidation” as we will try to explain.

On 15 January 2020, Silverpoint presented to the Mercantile Court a declaration of insolvency & provisional liquidation (Concurso de Acreedores). This does not actually mean they have declared bankruptcy. It is a legal process in Spain which can be invoked by the company voluntary or invoked by its creditors. It is applied when the company is considered to have more creditors than it does assets.

This move is something that Inside Timeshare and others including Canarian Legal Alliance have been expecting for some time. Over the past few years, Silverpoint has been monitored very closely with the movement of funds between various accounts at the forefront.

This transfer of funds and assets was a blatant move to hide them from the authorities to avoid payment, this has already resulted in an investigation initiated by the State Attorney. (See links for the report in El Diario at the end).

The first part of this process is for the Mercantile Court to appoint an external (independent) administrator who is then obliged to inform all creditors of the current situation. The administrator will also have to produce a full and exhaustive report on Silverpoint’s financial operation over the past years.

If the administrator discovers any serious irregularities not only with the liquidation but the actual running of the company, they can, in essence, classify the liquidation and company administrator guilty. This means that the administrator, which in the case of Silverpoint is Mark Cushway, may be personally responsible with his own assets, he may even face a custodial sentence.

Mark Cushway: Could find himself liable.

At this point Inside Timeshare must point out that Mark Cushway was also CEO of Resort Properties before it became Silverpoint so he must have known all about how the company was operated. He was also a director of the RDO (Resorts Development Organisation) the so-called industry trade body. Silverpoint was also one of the largest contributors to RDO funds until they resigned their membership.

The purpose of the Concurso de Acreedores is not to close the company down, it is to attempt to pay all creditors so as to clear the financial situation of the company and if possible overturn a complicated situation preparing the company for future business. Preventing bankruptcy is a priority of this procedure. However, if the declarations being presented are found to be a fraudulent application for insolvency, then this opens up a very nasty can of worms for the company administrators.

As our title suggests, could other timeshare companies be contemplating the same procedure?

Inside Timeshare has already published the fact that the Provincial State Prosecutor in Gran Canaria is already taking a keen interest in the timeshare resort of Anfi. This again stems from the fact that Anfi is transferring assets and funds to other various companies in an attempt to delay or even avoid paying what the courts have ordered. Again this could lead to criminal prosecutions and include jail time for the administrators of the companies involved.

https://insidetimeshare.com/anfi-hits-spanish-television-news/

The question now which will be on the minds of all those with cases waiting for court hearings and those contemplating taking out litigation against Silverpoint is where does this leave them?

From what we have been told our understanding is that it will not have that much of an effect, the cases will instead of being placed with the Civil Court using timeshare laws, will be transferred to the Mercantile Courts. This means that the clients will then be classified as creditors and will then have priority in the eyes of the appointed administrator.

Inside Timeshare advises all those with cases pending to contact their lawyers for more detailed clarification as to their own personal circumstances. For those who are clients of Canarian Legal Alliance, they have also published today this news on their website. This report goes into a lot more depth than we are able to here.

If you have not already filed a claim to have your contract declared null and void with the return of your full purchase price and would like to know how this latest news affects you, then please use our contact page and we will get back to you.

Our final word of warning is now this news has broken, please beware that there will be many “bogus” claims companies and law firms who will use this to their own advantage in order to scare people into paying for “legal services” as a matter of urgency. If you receive any calls to this effect then contact Inside Timeshare and we will help you sort out the genuine from the scams.

Have a great weekend and join us again next week for more news and information on the murky world of timeshare.

El Diario Article

https://www.eldiario.es/canariasahora/tenerifeahora/tribunales/Fiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario English

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=en&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario Danish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=da&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario German

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El Diario Finnish

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El Diario Norwegian

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El Diario Swedish

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Translations of this article

Danish

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Finnish

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German

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Norwegian

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Swedish

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