Is this the start of the next PPI scandal?
On the 14th June 2021, Timeshare Advice Centre reported on the huge win for timeshare owners ‘mis-sold’ Barclays Partner Finance Loans.
Barclays Partner Finance (BPF),was a preferred finance company for a Maltese timeshare resort who improperly sold finance to new owners. Barclays agreed to repay the interest element plus another 8% thereon in respect of loans granted between April 2014 and April 2016. Mis-selling of these loans is also evident before and after these dates which has been lodged with the FCA.
A solicitor collaborating with our associated firm of lawyers M1 Legal challenged the decision claiming that the capital element should also be refunded together with the 8% interest.
An appeal was submitted to the Upper Tribunal but before the hearing date, BPF agreed to refund the capital element on a voluntary basis along with the removal of any adverse entries on credit files relating to these loans. The remediation process started on 15 September 2021 (as a pilot scheme sending the refund letters to 200 consumers) and if all goes smooth they will continue from 14 October to 26 November 2021 with the remaining consumers. It is anticipated that by 25 April 2022 the process should be completed.
We understand that the total refund will be around £48 million pounds which will also include writing off any remaining debts. The timeshare owners were represented by Adriana Stoyanova, a solicitor collaborating with M1 Legal who initiated the argument with the FCA several years ago. She also states that when you look back at the initial rulings regarding PPI claims, this case has taken very similar steps. In the early cases of PPI, the rulings were made on claimable statutes, it was only thereafter that evidence supplied showing the mis-selling was very widespread and claim opportunities have opened up.
An internal check carried out on clients that have finance loans attached to their timeshare purchase, revealed that 46% thereof were arranged by unregulated brokers i.e. the timeshare sales companies or representatives.
This means that other finance providers may also be liable which could lead to a substantial payout for owners in other resorts.Our estimated opinion is that there is around £2 billion pounds worth of mis-sold loans in this sector.
European Consumer Claims CEO Andrew Cooper said; “We urge all timeshare owners to find out about their rights as they could be entitled to huge sums in compensation. We have already assisted hundreds of owners with timeshare contracts which were found to be non-legally compliant and there are thousands more who could also be entitled to their money back ”.
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