Browse Tag

Company Participations Scheme

Canarian Legal Alliance: Benalmadena Office Interview

While attending a meeting on the Costa del Sol, Inside Timeshare took the time to drop in on the new office in Benalmadena Costa of Canarian Legal Alliance. The office manager and senior consultant Sean Thacker was very kind in spending some time explaining what they do and answering a few questions.

The office itself is situated in the center of Benalmadena Costa, a stones throw from the wonderful Parque de la Paloma and the Aquarium Selwo Marina.

It is a modern and spacious office with facilities for conference calls, with a relaxed atmosphere, which will certainly put potential clients at ease.

The Benalmadena Office of CLA

Here is what Sean had to say.

Inside Timeshare.

As we know Canarian Legal Alliance has had a presence in Gran Canaria for many years, the Benalmadena office is a fairly new branch, when did you open and why was this location chosen?

Sean: This office opened in April of 2017, the main point was we understood there were many clients who took vacations on the Costa del Sol, especially as this area is full of resorts associated with timeshare. It was felt that many of these owners would be interested to learn more about their rights and how the judicial system can protect those rights.

In the light of the publicity surrounding the timeshare industry, we believed they would be more comfortable in visiting our office and discuss their concerns in person. The other advantage is we are also able to offer the many mainland European clients who opt for driving holidays a genuine service.

IT: Have you had many clients just walk in seeking advice about their timeshares and what has been the main concern of these clients?

Sean: Yes, we were very surprised at the number of clients who passed and came in for some general advice. We offer this advice free of any charge, explaining the law in Spain and what their rights are under the Spanish Timeshare Laws.

One of the main concerns was the mounting rise in maintenance fees, along with no availability, especially for the points and floating week owners, yet they were increasingly seeing that they could book online in the high season considerably cheaper than what they pay in fees. Another concern was where clients purchased on a rental basis yet they received no rental income.

IT: Are most of your enquiries made by telephone or do you receive more via email?

Sean: Our clients, apart from walkins, are mainly via enquires from the internet or social media and we now find we have a major source from our current client referrals to other owners or even friends and family.

IT: What has been the main nationality of the clients or have they been from all over Europe?

Sean: We deal with clients from all of the major countries, UK, Germany, France, Spain, Belgium/Holland, Scandinavia and we have now found over the last 3 months a big increase in Finnish clients who are interested to understand their rights in Spain.

IT: As you said, many of your clients are now from Finland, which timeshare company has figured the most with these clients and what type of products have they purchased?

Sean:I notice that most of our Finnish clients predominantly purchased with Silverpoint / Excel, The Company Participation Schemes seem to play a major role in most of the purchases.

IT: You mentioned the Company Participations Scheme sold by Silverpoint, would you say that these are now becoming more numerous than the old “investment packs” that were being sold originally?

Sean:Yes, there seems to be a switch from the old investment packs to Company Participation which suggests that companies are trying to look for alternative sales tools to offer to clients while always trying to circumnavigate the Spanish legal system.

IT: How do the “Company Participations” differ from the original “investment packs” and would you say that the average amount spent by purchasers is much higher than before?

Sean:The biggest difference is that customers thought they were buying an apartment as freehold. But they bought between 8 to 52 timeshare weeks, these “apartments” are “registered” as SL or limited companies, this is another ploy to remove them from the strict timeshare laws. On this point, in a recent case held in Tenerife, Silverpoint admitted in court that The Company Participations are timeshare. We are finding that our clients are spending anything between 37,000 and 250,000 euros per purchase. That is a huge amount for a product which is essentially timeshare.

IT: Would you say that most clients are nervous about taking legal action and how do you overcome this?

Sean: Everyone is always nervous in the first place to take any legal action, especially in a foreign country, the most important aspect of our work is to make sure we offer full support and transparency in how the process works, then guide the clients step by step through the whole process. It is important at all times we never apply any pressure techniques. This process is totally in the client’s hands, we are a support vehicle for them.

IT: We know there is always going to be bad press on the internet, much of it made by the industry, which will make prospective clients sceptical, so how do you overcome this problem?

Sean:Bad press is something we deal with daily, it proves to me that we do our job correctly for our clients. If you take the record of CLA and the number of case victories including over 129 Supreme Court wins, this shows to our clients that bad press is the only option certain industry members have. I personally will always go through with clients all good and bad press so they feel comfortable, as I mentioned earlier, transparency is the key .

IT: Roughly, how many cases do you think you have taken on since opening this office and would you say that those which have been to court have lived up to the expectations of your clients?

Sean: Since opening, we have delivered over 500 cases from the mainland office alone, all our client’s expectations have been surpassed using the correct Spanish Laws. Our clients who have had their cases heard have received back the full purchase price, including double the deposit paid within the 14 days cooling off period, in some cases, this has been extended to 90 days, which then doubles any amount paid within that period.

Thank you Sean, you have explained what you do and how you work with your clients, I’m sure that anyone coming into this office is going to be put at ease and be given the facts.

The Benalmadena office is certainly following the success of their parents in Gran Canaria, no doubt we shall hear more of them in the future.


Sean Thacker indicating a Supreme Court ruling against Silverpoint

Sean also pointed out that Diamond has several resorts in the area one is their flagship Sahara Sunset. Diamond has also had rulings against them from the Supreme Court, Inside Timeshare published this in December 2018. Below is a PDF of that ruling.

In another court case, this time held at the Court of First Instance in Barcelona, Restotel SA, MedHotel Group SL and ONA Group (Club Dorada SL), were found to be in breach of the timeshare laws. The contract was declared null and void with the client being awarded 112,724€ including double the deposit paid within the cooling off period. Below is a PDF of that ruling.

Inside Timeshare has highlighted the great results achieved by Canarian Legal Alliance in Gran Canaria for several years now, including all the Supreme Court rulings. Even though the facts speak for themselves, the industry is still in denial, they will not admit they are losing. There are still false statements about Canarian Legal Alliance being posted on the internet, much of it we know is from the industry itself, but the facts are these cases are in the public domain and cannot be denied.

Below are two links to previous articles published by Inside Timeshare on Silverpoint, to find more use the search box on the website.

If you would like further information on this article or any other published, use our contact page and Inside Timeshare will get back to you.

Thursday Update

Since publishing the news that Meredith Pritchard Claims Consultants Ltd and First Law Solutions Ltd had been wound-up by the High Court, further information has been coming to light.

The perpetrator behind this claims fraud, Stephen Paul Fairclough has seemed to have disappeared, his offices at Regus House are now empty. We do know that he does have links in Portugal and is believed to own a property and lives there. So he may just have fled the UK and is living his life of luxury on the money he has swindled from countless victims.

Apparently from information received by one source, who wishes not to be identified, it looks now like the Police in the UK will not be pursuing the matter against Stephen Fairclough. From the information received the reason is that they do not have sufficient evidence. As we know to secure a prosecution and ensure a conviction in any criminal trial, the evidence must be strong and be of “beyond reasonable doubt”.

Inside Timeshare would love to see Fairclough prosecuted and convicted, so it is now up to you the readers and victims of his fraud to come forward. Inside Timeshare is in contact with one victim who would like to gather together all those affected and form an Action Group.

If you have lost money for services not provided by Fairclough, then use our contact page, send in your details and Inside Timeshare will pass them to the coordinator of the Action Group. It is only with your help that this person will ever be brought to justice.

As an update to the articles regarding Ali and Alex Farhoud and their involvement in the selling of the “Company Participations Scheme” on behalf of Silverpoint , Inside Timeshare has also been informed of “Criminal Denuncias” being filed against them (the Farhouds) with the Guardia Civil.

Our information is that two clients have begun legal proceedings against Silverpoint but they have also lodged the criminal complaints against the two Farhoud brothers who sold them the scheme in the first place. It is believed from our sources that more clients are also coming forward and more “Criminal Denuncias” are going to be made.

It must also be remembered that they are now contacting previous victims via their company Nordic Consulting Canary Islands SL, with the offer of taking legal action against Silverpoint (their former employer) and claiming back what their clients originally paid. They explain that what was sold to them was not legal, yet they are the ones who sold it in the first place, yet they claim they had no idea that it was “fraudulent”.

Now, we also know that they will be charging huge amounts for legal fees to carry out this “service”, so in reality they made large amounts in commission for selling it and are now set to make even more by offering a “legal service”!

If you have purchased these “Company Participations” or any other product peddled by Silverpoint, or have been contacted by Nordic Consulting, then use our contact page to get in touch. Inside Timeshare will then answer your questions and point you to the best solution for your situation.

We also have an update of court cases held in the Courts on Gran Canaria, all these involved Anfi and were brought on behalf of clients by Canarian Legal Alliance.

In total there were seven sentences issued, 3 by the High Court in Las Palmas and 4 by the Courts Of First Instance in Maspalomas. Again all contracts were declared null and void as the contained infringements of the Timeshare Laws as laid down by the Supreme Court. These ranged from floating weeks to perpetuity contracts, the courts awarded over 241,545€ to the clients along with legal fees and legal interest.

Then on Tuesday 5 March, another sentence was issued by the Court of First Instance of San Barlelomé De Tirajana, again this was against Anfi. This quite a significant case as the amount involved is huge.

The client in this instance is set to receive over 212,476€ plus legal interest, along with the contract being declared null and void. This will be one happy client.

The case was conducted on behalf of the clients by the Canarian Legal Alliance lawyer Adrián Diaz-Saavedra Morales, who is another of the young and dynamic team at CLA. So congratulations to them all, and keep up the good work.

Adrián Diaz-Saavedra Morales

If you need any advice with a timeshare problem or paid a company for services which you have not received, contact Inside Timeshare via our contact page. We will point you in the right direction.