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Shawbrook Bank Loans Mis-sold For Timeshare Purchases
Shawbrook Bank is one of several financial service organisations to have formed partnerships with Timeshare companies, such as Club La Costa, whereby loans were offered at the point of sale to fund the initial timeshare purchase or a subsequent 'upgrade' - e.g. to Fractional ownership (which is simply another form of timeshare, of course!).
However, since the initial timeshare mis-selling cases we're very publicly won in the Spanish courts in 2015, ever more legal precedents have been set and it has come to light that these loans were often resold as part of the Timeshare selling process. Below is an overview of how these loans were mis-sold:
​Key Elements of Mis-Selling
Misrepresentation of Timeshare Benefits: Sales agents often exaggerated the benefits of timeshares, promising substantial returns on investment, ease of resale, or luxurious holiday accommodations that did not align with reality.
High-Pressure Sales Tactics: Potential buyers were subjected to high-pressure sales presentations, sometimes lasting several hours. These tactics were designed to wear down resistance and push buyers into making quick decisions without adequate time to consider the financial implications.
Inadequate Disclosure of Loan Terms: Critical loan details, such as interest rates, repayment schedules, and the total cost of the loan over time, were not fully disclosed. Buyers often did not realize the high-interest rates and long-term financial commitment involved.
Unregulated Sales Practices: Some sales practices were conducted outside the regulatory framework, meaning buyers did not receive the same level of consumer protection as they would in regulated financial transactions.
Non-Disclosure of Cooling-Off Period: Buyers were often not informed about their right to a cooling-off period, during which they could cancel the contract without penalty. This omission led many to believe they were immediately and irrevocably committed.
Link Between Timeshare and Loan Approval: Sales agents sometimes falsely assured buyers that loan approval was contingent upon purchasing the timeshare. This created a sense of urgency and inevitability about taking out the loan.
Specific Issues with Shawbrook Bank and Others
Lack of Proper Checks: There were instances where proper affordability checks were not conducted. Buyers were granted loans without adequate assessment of their ability to repay.
Collusion with Timeshare Sellers: There were suggestions that some banks, including Shawbrook, may have colluded with timeshare companies to push these loans. The loans were often presented as the only feasible financing option.
Misleading Information on Loan Purpose: Buyers were sometimes misled about the purpose and nature of the loan. Instead of being clear that the loan was for a timeshare purchase, it was presented in more favourable terms - for example, for 'Home Improvements'
Consequences for Consumers
Financial Hardship: Many buyers found themselves in significant debt, unable to keep up with high-interest payments on loans they could not afford.
Difficulty in Reselling Timeshares: Contrary to the sales pitch, many found it difficult or impossible to sell their timeshares, leading to further financial strain.
Legal and Regulatory Actions: Due to widespread complaints, financial regulators and courts have taken action against some of these practices. This includes compensation claims and rulings that some loans were improperly issued, leading to potential refunds or loan cancellations.
Remedies and Consumer Protection
Claiming Mis-Sold Loan Compensation: Affected buyers can seek compensation for mis-sold loans. This often involves legal action or complaints to financial ombudsmen.
Regulatory Oversight: Increased regulatory oversight has been put in place to prevent similar mis-selling practices in the future.
In summary, the mis-selling of loans for timeshare purchases involved deceptive sales practices, inadequate disclosure, and improper financial assessments, leaving many buyers in precarious financial situations. Regulatory actions and consumer protection measures have since been implemented to address these issues and provide remedies for affected consumers.
TIMESHARE EXIT
For the vast majority of people who come to us for help, the primary concern is to simply get out of the long-term fee liabilities to which they find themselves & their families committed.
It is often when changes in personal circumstances (e.g. health, mobility, bereavement, financial, relationships etc...) mean that the Timeshare scheme will no longer be of use - at which point it can suddenly clear that the Timeshare has no resale value and, worse still, carries significant, long-term fee commitments.
Please be very wary of what your Timeshare scheme operator may have told you if you have approached them directly as, believe it or not, they will often see this as an opportunity to try and sell you a Fractional ownership scheme on the promise of recouping your investment.
For honest, independent advice, please contact us today.
MIS-SELLING CLAIMS
Whilst it has only been in the last couple of years that news of an ever-increasing number of successful claims are being made against a growing number of Resorts & Timeshare scheme operators - mis-selling has been rife since the laws changed in 1999 but were largely flaunted by arrogant Timeshare sales operations, and it is estimated that 1000s of claims were settled out of Court, with confidentiality claims attached to prevent news spreading to the wider Timeshare member community.
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However, since the high profile "Grimsbo vs Anfi SL" case in 2015, the floodgates have opened and the Spanish Courts in particular have been extremely busy, with an ever-increasing number of legal precedents being set and the the legal tide turning firmly in favour of the consumer at last.
To find out whether you have grounds for a mis-selling claim and/or whether your Timeshare contract is simply illegal and can be declared Null & Void, please contact one of our expert advisers today.
TIMESHARE ADVICE
The chances are that, having reached the point that you've decided that you wish to exit your Timeshare scheme, you will quickly find out that the promises made when you were originally sold the Timeshare will turn out to be false.
People were commonly sold Timeshares as "an investment" with promises of rising values, buy-back schemes and ease of re-selling whenever you decided to do so...
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However, you only need to look on eBay to see hundreds of people desperately trying to sell their Timeshares for 99p... with no takers of course.
The sad fact is that there are very few 'Good' and a great deal of 'Bad & Ugly' Timeshare scheme operators out there - and they will do whatever they can to keep their members locked into unfair contracts, paying increasingly extortionate annual fees.
If you need some initial guidance from the independent experts, we're here to help...
Here to Help
For FREE expert advice on how to solve your Timeshare problems and to see whether you may have been mis-sold, please call one of our friendly advisors now on:
or use the short form above to see your options.
We'll listen to your concerns, then advise you on your best options for exiting your Timeshare contract and whether you have potential grounds for a mis-selling claim.