Investment Opportunity or Misrepresentation?
Victims of timeshare schemes are starting to receive payouts after a judge ruled that the schemes were wrongly sold as investment opportunities, violating consumer law. The ruling has not only held timeshare companies accountable but also the banks that lent money to investors.
Compensation Offers Totaling £2.8 Million
Gary Smith, CEO of Praetorian Legal, has already received compensation offers for 80 clients, amounting to around £2.8 million. Smith believes that up to 25,000 investors could potentially be eligible for compensation.
Timeshare Firm Goes Into Liquidation
Many affected investors were customers of timeshare firm Club La Costa, which went into liquidation back in November last year. However, a judicial review in May determined that banks which lent money to investors also had a responsibility for mis-selling, due to their close commercial ties to the timeshare companies.
Paving the Way for Compensation Claims
This breakthrough ruling has opened the door for victims to seek compensation from their banks. Law firm Praetorian Legal is currently engaging in settlement offers on behalf of hundreds of clients who have filed complaints with the Financial Ombudsman Service, the body that resolves disputes between firms and customers.
Refunds and Loan Write-Offs
Among those set to receive compensation is Renee Xavier, an admin assistant from Southampton, who will receive £8,293 from lender Novuna Consumer Finance. Renee felt pressured to sign up for a scheme at Club La Costa in Malaga, Spain, during a holiday with a friend in 2019. Novuna has agreed to refund the money already paid and write off the remaining loan balance.
Retirees Edward Costin, 75, and Susan Costin, 71, from Hemel Hempstead, Herts, borrowed £9,934 for a timeshare with Club La Costa at the same resort. Novuna has since agreed to refund them approximately £7,100 and write off over £10,000 of their remaining loan balance, which had accumulated interest.
A Step Towards Financial Relief
Edward Costin expressed relief, stating that the loan repayments had made life difficult, especially considering the rising cost of living as pensioners. The agreement with Novuna will significantly ease their financial burden.
Fair Outcomes for Customers
A spokesperson for Novuna assured that the company is working closely with the Financial Ombudsman Service to ensure fair resolutions for customers. Each case will be evaluated individually, taking into account the unique circumstances of each customer.
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