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Silverpoint

Timeshare Loan Agreements

One of the main enquiries from many readers regarding their purchase of timeshare has been the loan agreements to conclude the purchase. These are invariably brokered by the sales staff themselves and are a very important tool in their arsenal to ensure a timeshare sale. After all, most timeshare sales reps only get paid commission on successful sales, so the loan agreements will boost sales from those who could not actually afford the purchase price. Plus they will also receive a commission for brokering the agreement, so for the timeshare sales reps, this is a very lucrative tool.

You have all been there, attended a sales presentation either for the first time or for an “upgrade” meeting with the in-house reps. The product is laid out before you, the sales patter begins and you are now in the grip of a rep who has only one goal, to sell you a timeshare or an upgrade.

You can claim until you are blue in the face that you cannot afford the timeshare or upgrade, but that will not cut any ice with your rep.

The product will be shown in its best light, they will pressure you into wanting the timeshare or the upgrade, that it is something that will only give you great holidays and enormous amounts of pleasure. You really can’t do without it.

Enter the final part of the sales pitch, “what if I can make this affordable”?

I am sure you have all heard that one.

Enter the loan agreement, this will be with either the sales companies own in-house finance or more than likely with one of the major lenders such as Barclay Partner Finance or Hitachi.

The sales rep or his manager will explain very briefly the loan agreement, that it is “guaranteed” to be accepted, once you sign the agreement, by the time you arrive back home from your holiday you will receive a letter welcoming you to whichever company and for taking out a loan with them.

Not bad, a quick loan and you now own the timeshare or have upgraded. There is only really one big problem, can you actually afford the repayments, did you complete an “expenditure v’s income” report to show that the prepayments are affordable and do not leave you short?

In all the loan agreements which Inside Timeshare has come across, these reports which are a basic part of taking out any loan have never been done. The question we have to ask is what sort of credit checks have been made after all these loans are very substantial, the average is around the £20,000 mark?

It should also be noted that it is not just the cost of the timeshare that needs to be taken into consideration, but it is also the very high-interest payments. In most cases that we have seen the amount to repay back is almost or more than double the original purchase price, so why have there not been stringent credit checks and affordability checks?

The answer is pure and simple, greed.

One question that Inside Timeshare has asked on many occasions, especially the older purchasers, had you gone to your bank for a loan of this size to purchase timeshare, do you think your bank would have given it to you without all the stringent affordability checks, or even due to their age. Every answer was the same, no they would not have approved the loan.

It is also a fact that Shawbrook Bank back in July 2016 announced they had found “irregularities” in their “due diligence” on approving loans for timeshare. They had not done the usually required credit checks or affordability of repayments. They set aside £9 million to offset any defaults on these loan agreements. The CEO of Shawbrook at the time had to also resign.

This is not a subject that is new to Inside Timeshare, below are links to other articles on this subject, one of the biggest finance companies which have found themselves the subject of many court cases is Barclay Partner Finance. They infamously provided all the finance agreements for one of the biggest frauds in timeshare history, the loan agreements for the Silverpoint “investment packs”. On average the purchase of these packs have reached over £60,000 and that is without the interest!

There are ways that these loan agreements can be challenged, but that does need the case to be taken to a UK court by a competent and experienced lawyer in this field. The one-piece of legislation which is being used is Sections 140a & 140b of the Credit Consumer Act 1974.

Basically, this covers the “unfair relationship” between the broker (sales staff) and the loan provider. The fact the sales staff require the loan agreement to make the sale creates a very unfair relationship against the consumer. After all, he needs to earn his commission.

Inside Timeshare has also come across readers who have made an arrangement with BPF to reduce the amount being repaid, this does sound like a good idea if you are struggling, the unfortunate thing is that BPF will place you on a defaulters register and that will affect your credit rating. One reader is going through this at the moment, it is stopping them from getting a mortgage, so the wonderful image of a timeshare purchase for this reader has turned into an even bigger nightmare.

Inside Timeshare just wonders how many thousands of people have been caught up with purchases made by loans brokered by the sales staff, we also wonder how many of these have now lost all credit ratings due to being unable to afford the loans. This is a problem which has been going on for years and yet we see nothing from any of the regulatory authorities such as the Financial Conduct Authority siding with the consumer, they just seem to be siding with the finance industry. (See yesterday’s article)

The sooner the finance companies do what Shawbrook Bank has done and admit they have made very serious errors in their “due diligence”, the better it will be for all those caught up in these high-interest loan agreements.

Past articles on the subject of loan agreements 

https://insidetimeshare.com/shawbrook-bank-announce-irregularities-timeshare-loans-similar-activities-usa/

https://insidetimeshare.com/timeshare-finance-barclays-hot-water-high-court/

https://insidetimeshare.com/timeshare-claims-using-the-credit-consumer-act-1974/

Updates: Fake Liquidation of Club la Costa & The Club Paradiso Liquidation

Yesterday Inside Timeshare published the story being put around by some “cold calling claims & exit” companies that Club la Costa is going into liquidation tomorrow Friday 16 October 2020. Today we have some new information on that piece of fake news which also included the fake news that Marriott was also going into liquidation. We also bring you the latest news on the liquidation of Club Paradiso Ltd, this is the club based at the Paramount in Tenerife and is part of the Limora Group. The club memberships were sold by non-other than our old friend’s Silverpoint who are themselves in the process of liquidation.

First, we take a look at the “fake” news that Club la Costa is going into liquidation this Friday, as we published yesterday this is a total fabrication of the truth, it is a ploy by some unscrupulous companies to scare and take advantage of desperate owners/members. 

According to an email sent by CLC World Chairman, Roy Peires, to members yesterday 14 October, the full story is given.

Basically, due to the Covid19 pandemic, sales of memberships at Club la Costa have been seriously affected, they scaled down the number of staff and many were placed on the furlough scheme.

Well, it is not surprising that sales have been affected as there has really been nobody travelling and that means no one visiting CLC or being taken to presentations. Also, it is not really conducive to conduct sales presentations with the regulations on social distancing and the wearing of masks.

What the Chairman Roy Peires has informed members in his email is that as of Friday 16 October 2020, all sales have been suspended for the foreseeable future. This also means that many staff members will now be out of work.

So as we explained yesterday, this claim by these “cold callers” is a tactic to scare you into paying them to take up your case.

Club la Costa is not going into liquidation.

PDF of the full email from Chairman Roy Peires.

We now move to the letter being received by members of Club Paradiso, which is, in fact, going into liquidation, so that is not a rumour.

Club Pardiso

The letter is from R & H Restructuring based in the British Virgin Islands, they are along with Alvarez and Marsal, also based in the BVI, are Joint Liquidators.

They have appointed Owen Walker of R&H and Barry Lynch of Alvarez and Marsal as the Joint Administrators (JL’s). According to the letter Alex Lawson (Alvarez and Marsal) who was appointed sole administrator of Club Paradiso Ltd has “ceased to have any powers (other than those required or permitted as a matter of British Virgin Islands (BVI) law)”.

Contained in the letter are several options open to members, one is to relinquish their membership, which appears to be free of any charge.

The second option is to take up an offer which the JL’s “consider sufficiently attractive” to members. This offer is from Regency Hotels, who operate The Regency Club Tenerife and The Regency Country Club, Tenerife.

Obviously, this offer has come as Club Paradiso Ltd have not had any luck in finding a third party to continue running the club for the members.

It should also be pointed out at this stage the problem with accepting this offer. If members have filed cases against Silverpoint for the sale of the Club Paradiso membership, with those cases pending a hearing, cancelling the contract will have serious consequences on their cases.

Once the contract has been cancelled, the courts will have no other option than to reject any case where the contract is no longer in existence. So, if you do sign up for the offer and cancel or just purely cancel you will have wasted all your money on the legal fees as there is no longer a valid case.

The last option is making a claim via the JL’s, they invite members to make a claim directly with them as liquidators and even provide a claim form.

At this point Inside Timeshare now has the alarm bells ringing, we envisage within the next couple of weeks a resurgence of “claims & exit” companies getting in on the act and cold calling members with offers of doing the exit or claim for them. In the light of the other articles published on fake news we just wonder what scare tactics they will use to get your money.

The advice from all the lawyers Inside Timeshare has spoken to with cases either in court or pending is simple, do no exit, do not take up the Regency offer and if you decide to attempt a claim directly to the JL’s, find your own solicitor with experience in this field and also having jurisdiction in the BVI to do the work for you or at least give you sound legal advice.

PDF of the Full Letter from R&H Restructuring.

If you have any questions or views on these subjects or any other article, please use our contact page and Inside Timeshare will get back to you.

Latest Court News & Update on J Foster Associates

Yesterday we published part 2 of our Timeshare Contracts: Held to Ransom articles, we began last week with Belton Woods Lodges and yesterday we looked at Diamonds “exit” policy, our next article will be looking at Club la Costa. Today however we look at another two cases to come out of the courts in Gran Canaria, these cases involve Holiday Club and Airtours. We also have an update on the new “claims & exit” company J Foster Associates and their rather wild and exaggerated claims. It certainly looks like desperation.

Earlier in the year a German client of Canarian Legal Alliance won his case at the Court of First Instance Number 4 of San Bartelomé de Tirajana against Holiday Club. In July the Court received the payment from Holiday Club for the amount the court awarded to the client.

The client has now received into his own bank account the 25,407€, so not only has the contract been declared null and void, but the client also has received his original purchase price plus double the deposit paid. As far as this particular client is concerned his journey is over and he is totally timeshare free.

So it is congratulations to the client and especially to the Lawyer Oscar Salvador Santana Gonzalez who prepared and conducted the case and also to Jasmin Erhard the Claims Consultant who helped this client through the case.

The next case is against Airtours and this is a very surprising case, again brought on behalf of a Norwegian client by Canarian Legal alliance.

What makes this case different from all the others is the time it has taken, CLA filed the case on 9 July 2020, within 2 months the case was heard with the sentence just being issued. It transpires that the Judge sitting at the Court of First Instance number 13 of Las Palmas decided that there was no need for a full trial and proceeded to deal with the case at the pre-trial stage.

This does appear to becoming a very common occurrence, with more and more judges deciding that full trials are no longer necessary. This can only be good news for clients with cases pending, let us just hope that more and more judges do the same.

In this case, the client has been awarded over 63,000€ plus legal interest and their contract has been declared null and void.

The lawyer representing the clients was Aroa Farray Martin with Claims Consultant Lotta Nielsen assisting the client.

We now move to an update on the new “claims & exit” company J Foster Associates, we highlighted this company back in September (see link below).

https://insidetimeshare.com/end-the-week-new-cold-caller/

As we stated in our previous article the company website was only registered in August, so it is only just 2 months old. We have also failed to find any company registration either in the UK or in Spain. We do know they are claiming to be operating out of Mallorca, one of the numbers is certainly +34 971 228 089 is for La Palma de Mallorca, but they also have this number +34 922 099 170 which is for Santa Cruz de Tenerife.

We have also been informed that they appear to be working with yet another company that we have highlighted in the past Claims Solutions Group of Aberfeldy along with a couple of others who we believe are Fullbrook Associates of Stirling and Meridian Associates of Tenerife.

We also know that these three companies are also working with another company we have highlighted, Carl James Associates, the articles below explain about them and it does not look good.

https://insidetimeshare.com/end-the-week-6/

https://insidetimeshare.com/end-the-week-7/

https://insidetimeshare.com/one-sided-press-reports/

Now, J Foster Associates who have been actively cold calling mainly Silverpoint clients appear to have come up with a new story which they are using to create urgency for the clients to sign up with them. As one reader put it, “it was just like a timeshare presentation, expect you to sign after a 3-hour Zoom meeting”. Talk about pressure tactics.

Apparently, the caller from J Foster Associates tells the “potential” client (I prefer victim), that 5 of the Silverpoint properties are being sold to the Ona Group and here is the most laughable part, “all proceeds will be going to the Bob Trotta Foundation/Excel Hotels to discharge any debts and claims in Tenerife”.

Apparently, this is all agreed with Alvarez and Marsal who have taken over as administrators of Silverpoint, (this is not the same as the court-appointed administrator dealing with the liquidation). It has also been stated by JFA that all this has the blessings of the Spanish authorities and they are offering “a safety net underwriting any deficit”.

What a joke, the Spanish authorities are going to cover any deficit for debts and claims, they haven’t even got enough money to keep up the furlough payments let alone “bailout” a fraudulent timeshare company.

What we do know is that Ona Group is not purchasing the properties, they are a resort management company and it is they who may, just may be taking over the day to day management role from Excel.

In another attempt to coerce potential clients (victims) with the need for urgency, they are also using Brexit as a tool. According to J Foster Associates, there is a deadline of 31 December 2020 to register the claim with the Spanish courts as once the UK leaves the EU no UK clients will be able to take a case to the Spanish courts.

This is a good pitch for urgency but it is a total fabrication of the truth, it makes no difference if the UK is in the EU or not, they still have the protection of Spanish Timeshare law. Well, Inside Timeshare knows for a fact that there are Russian clients with cases in the Spanish courts and they are not part of the EU.

Once again, this is a stark reminder that not all you are told by these “cold calling claims & exit” companies is the truth, that you should always do your due diligence first.

REMEMBER, DO YOUR HOMEWORK!

If you have received any calls from this company or any other with these types of claims, please use our contact page and Inside Timeshare will get back to you.