Timeshare owners sue Barclays Bank Credit Arm

Timeshare Owners Sue Barclays Bank

In 2017, timeshare owners sue Barclays Credit Arm, Clydesdale Financial Services for more than £1.5 million. A total of 106 claimants purchased shares in a holiday home between 2006 – 2014. These purchases took place with Resort Properties which was then taken over by Silverpoint Vacations S.L in 2011

Consumers attended sales presentations at the resorts after being offered a complimentary 7-night stay. After telling sales reps that they could not afford to buy the timeshares, some claimants say they were recommended to take out loans with Clydesdale. Many were also told that they would be able to easily sell the timeshare properties for a profit after 2 years and renting out the properties would cover the management fees.
 
Credit providers should have a duty of care when accepting loan applications. Especially when consumers say that they could not afford the products. Timeshare can also not be sold as an investment.
 
The claimants state that full details of the deal were not clear, nor were they given enough time to take in the information.

Consumers claim that they were not informed about entering a credit check nor was they explained that the interest rate was changeable.

When it came time for the claimants to sell the timeshares, Silverpoint blamed the recession. They were then encouraged to take further loads to upgrade the properties for an easier sale.

Section 75 of the Consumer Credits Act states that the creditors can be liable for the actions of the suppliers.

Clydesdale denied that these were valid claims as little proof could be provided. Clydesdale legal response said the claims rest on verbal agreements and none of which were quoted directly by the claimants. Furthermore, they said the claims were for products sold too far in the past and that they should not be bound by laws of England and Wales if timeshares were sold in Spain.

Clydesdale also insisted that the owners knew what they were getting themselves into and that they do not owe a duty of care to these customers.

Use our free timeshare compensation calculator to find out if you are entitled to compensation.

Use our FREE compensation calculator to find if you are entitled to compensation!

Citation

Some of the information in this post has been cited from Sam Barker, published in Mortgage Strategy. Full article can be found below

  • 20 MAR 2017

https://www.mortgagestrategy.co.uk/news/barclays-credit-arm-sued-106-holidaymakers-timeshare-deals/

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