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:
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.