Welcome to the start of another week at Inside Timeshare, over the past few weeks we have been publishing many articles on Silverpoint, especially the move by the parent company Limora Investments Ltd (BVI) filing for liquidation. We have also published the news that The Paramount – Club Paradiso has closed their doors with many members unable to book, the website is down and no one seems to be answering the phones. We also reported on Keys Concierge having also gone into liquidation with all the staff losing their jobs, as we know the administrator dealing with the liquidation is Alex Lawson of Alvarez and Marsal working on behalf of the Trotta family.
So as you can imagine, Inside Timeshare has been inundated with emails enquiring about the legality of all the products sold by Silverpoint. The most prolific of these products and having by far the highest costs are the “Company Participation Scheme”, with purchases from 40,000€ all the way to 150,000€ plus. Just on the enquiries Inside Timeshare has received we are looking at purchases of well over one million euros, this certainly is a very big money making scheme, the question is where has it all Gone?
Now for some news from the courts around Spain.
Last Friday the leading law firm in timeshare litigation Canarian Legal Alliance, announced their results for the week, with 26 victories in various courts around Spain.
At the Court of First Instance in Maspalomas Gran Canaria, there were 11 cases found against Anfi, with 2 cases at the High Court of Las Palmas being found in favour of the clients after Anfi appealed.
At the same Court of First Instance, a sentence was issued against Palm Oasis.
In the Court of First Instance of Arona, Tenerife, Silverpoint was on the receiving end of the judges, with 11 rulings against them in favour of the CLA clients.
The last was against Club la Costa in Fuengirola, where the judge again found in favour of the client.
As usual, all contracts were declared null and void with the courts ordering a total of 1,226,260.15€ A very expensive week for the timeshare industry indeed. But at the end of the day, had they sold their products in accordance with the law, then they would not be finding themselves in this position.
If you have purchased any timeshare product in Spain and would like to know if you have a valid and viable claim or would just like to know your legal position and your options, then use our contact page. We will get back to you and point you in the right direction.
Welcome to the start of another week in the world of timeshare, we begin with some news being passed around various forums regarding Anfi. As we know Anfi is contacting members to change their contracts, but the latest is rather disturbing.
The change in contracts is to try and bring them within the law, the new contracts will be for a maximum of 50 years, with apartment numbers and week numbers being allocated to the floating week contracts, although they will remain “floating”.
According to information received, the new contracts will also penalise the members for “early termination” of their membership. Any early termination of the contract will be seen as a serious breach of contract on part of the member, Anfi will then apply a retrospective charge on the member for “hotel Costs” of around 350€ per night for all weeks used.
They have already used this threat to members who may be contemplating legal action in regard to illegal and missold contracts. This is also the subject of an ongoing legal argument, which has yet to be finally resolved.
Another point that has come to our attention is the number of members who have just ceased to pay their maintenance, especially with the new contracts. It is reported that around 100 members in 10 countries are about to have legal proceedings made against them for recovery of the maintenance fee arrears. Plus to have the mentioned “hotel costs” charged against them.
Another point which is irritating some of the members posting on the forums is the problem of resale. According to many posters, Anfi has the right to refuse the buyer of any timeshare sold privately. Again this is to ensure that all resales go through the resale programme, which we know is not very effective and will only command a very small resale price.
As with any timeshare advertised for sale, the price you see is what the owner believes they will get, remember, when purchased, many were under the impression they were investing in property. The sales staff openly told them it would go up in value, as we know this is definitely not the case.
So what do we make of this change in contracts and the other tactics being used?
Simple, by changing to the new contract, you lose all rights to take them to court, this is what Anfi want, after all it is costing them a fortune in payouts. (Which they will deny).
The threat of the “hotel costs” with legal action against maintenance arrears and making it more difficult to sell privately, is again to stem the tide of a significant loss of membership. This loss hits them in the pocket with reduced income of maintenance fees. After all, they are not selling like they used too, people are very wary of purchasing timeshare today.
There were also 2 High Court wins in Las Palmas, again against Anfi del Mar.
Again at the Court of First Instance in Maspalomas, Palm Oasis lost 3 cases.
Over in Tenerife, The Court of First Instance again found against Silverpoint in 2 cases.
In another First Instance hearing, Club la Costa were the ones on the receiving end of a judgement.
In all a massive 27 victories against the biggest names in European timeshare, the total amount claimed on behalf of clients is over 648,000€ with all contracts being declared null and void.
CLA have also issued this video, which shows their impressive record so far, it was made at the end of 2018.
That’s it for today, join us tomorrow for a very special article, this was received by another timeshare insider after we published the article on the Florida Bill 435, tomorrow we publish Part 1.
If you need any help or advice regarding your timeshare, about any company that has contacted you or you have found either on the internet or advert in any publication, then use our contact page. We will be pleased to help.
Also if you have any comments, views or information you would like to share with other timeshare owners, then again use our contact page, we would love to hear from you.
On 7 July, Market Exclusive published an article reporting on the financial statements issued by Marriott. (See link at the end). After the preamble they began by announcing they had identified “Fraudulently Induced Electronic Payment Disbursements”, which resulted in$9.9 million resulting from unauthorized third-party access to their email system. They duly notified law enforcement and relevant financial institutions, commencing an investigation.
They have managed to recover $3,2 million, but are hopeful they will recover the rest. Now this is just a start in their report.
They have also acknowledged they are recording pre-tax litigation expenses of $16.3 million, these are to settle in principle, two actions in their North American business with the Petrick action and an owners action brought by those with fractional interests at the The Ritz-Carlton Club, Lake Tahoe. It will also include actions by owners of Marriott timeshare interests in Spain.
The litigation on their Spanish business is a result of the laws Spain has brought in to protect consumers, this law known as Ley 42/98, was enacted in January 1999 and invalidated many timeshare contracts sold after that date.
Marriott, as many other timeshare operators believed, that by filing a deed of adaptation they would be able to continue as before, but they were sadly wrong. It took many years and court battles to get to the stage Spain is at now, the strongest timeshare laws in Europe.
So what makes these contracts illegal?
Many timeshare operators continued to sell perpetuity contracts, when the law stipulates they should be of a minimum of 3 years and a maximum of 50 years. They also continued to sell the floating weeks and points systems, which gives the purchaser no actual rights apart from the right to use subject to availability. With the fractional ownership, the Supreme Court clearly regarded this as timeshare, as usage was dependent on a points system being allocated. Fractional was designed to “replace” timeshare with the promise of “purchasing shares and investing” in a real estate property, but again in Europe timeshare should never be sold as an investment.
We have seen over the past few years many other companies falling foul of this legislation, Anfi, Palm Oasis, Holiday Club / Puerto Calma and the Diamond run resort Cala Blanca in Gran Canaria, Silverpoint in Tenerife and a host of others all over Spain. Marriott is just the latest to be hit by timeshare owners becoming aware of the laws and finding they now have a way out of the never ending cycle of upgrades and maintenance payments.
Marriott, have also conceded that this litigation is going to cause them to incur considerable and “material and litigation” costs, along with the settlements and judgement costs. They have also admitted that it will have a severe effect on their results in the European sector and will have repercussions on their business and financial condition.
The one thing Marriott along with others in the industry are still saying, is they all disagree with these rulings, that the law as interpreted by the 126 rulings of the Supreme Court are wrong, they are seeking to introduce legislation “that will implement a more balanced approach”. More balance, or do they mean going back to when they believed they could not be touched and did exactly as they wanted.
Although they do go on to say the following “The timeshare laws, regulations and policies in Spain may continue to change or be subject to different interpretations in the future, including in ways that could negatively impact our business”. Negatively impact their business, well they only have themselves to blame, had they sold within the regulations, they wouldn’t have to worry about negative impact!
On this point of Marriott and others in the industry lobbying for a change in the law, this has now been set by the Supreme Court, the only way that the law can be changed now is for the Spanish parliament to pass new ones. This is very unlikely to happen, even if it were to happen, then we would end up with many years of court cases and appeals to the Supreme Court to clarify any new laws.
At present the law firm which is responsible for the clarification of the law with now 127 rulings from the Supreme Court, Canarian Legal Alliance, has many cases upcoming against Marriott. These cases are only now just starting to take place, CLA have at least 2 cases already presented at court with around 30 in the final stages of presenting to court. They are also looking into new clients cases, all these contracts are in perpetuity and use the point system, so this figure is surely set to rise.
On the point of the Supreme Court rulings, Canarian Legal Alliance began seeking clarification from the Supreme Court well over 7 years ago, they eventually received their first victory against Anfi in March 2015. This case involved the Norwegian client Mrs Tove Grimsbo, it was a long drawn out case, but the precedent had been set. Within weeks of this first ruling, many more followed, setting in stone the laws that for many years had been interpreted differently depending on the court and the judge presiding.
It will be interesting to see whether Marriott go the same way as Anfi, Silverpoint and others in constantly appealing against any rulings made against them, or will they just payout and cut their losses?
Only time will tell, we will certainly be keeping an eye on these cases.
If you need any further information on this subject, whether it be a Marriott, Anfi, Silverpoint or any other timeshare, then use our contact page and we will get back to you and point you in the right direction.
Have you been contacted by a company that tells you that you have a claim, and want to know if it is genuine and they are a legitimate company? Then contact Inside Timeshare for the facts.