RSB Legal Timeshare Scammers an Update
Earlier this year we published an article regarding the liquidation of RSB Legal, an unregulated timeshare termination and claims company. Our earlier article can be read via the link below:
RSB Legal is typical of the companies operating in this area. Run by ex-timeshare salesmen, who set up a website, then proceed to procure business by cold calling vulnerable consumers and then “disappear”.
RSB went into liquidation on 23rd May 2018. In our previous article we observed that RSB has little by way of assets and there were significant consumer creditors, claiming in excess of £900,000, presumably for services not provided.
In his report to creditors dated 11th July 2019 the Liquidator commented:
“the majority of these claims relate to consumer creditors. It is clear that the director had not maintained records sufficient to accurately disclose creditors.”
The Liquidator has now filed an updated report to Creditors dated 25th June 2021. The report makes interesting reading. The following is noteworthy:
- The Liquidator has, with the assistance of solicitors, taken action against former directors for misappropriation of funds. In other words, money paid to RSB for services was taken by the Directors.
- £240,000 has been recovered to date, and action has been ongoing.
- The Liquidator has been liaising with government agencies to ensure funds are not dissipated.
- A settlement was reached out of court to avoid further delay and costs
- Investigations are on-going to potentially recover further funds for the benefit of creditors, including transactions involving a “shadow director” and RSB’s “advisors” who have yet to be identified.
- The Company’s original statement of affairs disclosed only 8 creditors owed £25,406. As of June 2021, he confirms that he has received claims totaling £1,007,389 from 95 creditors.
- It is anticipated that following completion of investigations some payment will be made to creditors.
The numbers involved here are staggering. Clearly substantial sums were taken from consumers, and services not provided. It is presumed that the 95 creditors referenced are all consumers. On average each will have paid on average £10,000 for legal services that were not provided.
The Liquidation of RSB is a sad example of how these companies operate. There are many more, which illustrates the dangers of dealing with unregulated businesses and relying on promises made by cold callers.
Fortunately, in this case it looks like funds will be recovered, and the Liquidator is to be commended on his efforts. For scammers, it may also act as a warning that they could face consequences should they operate their businesses in a deceptive manner. They cannot assume they can simply close their company and hold on to the proceeds.
It will also be interesting to know who the “advisors” are that operated in the background.
How Can Athena Law Help
This firm has acted for clients who have lost significant money dealing with companies such as RSB Legal.
Other examples include Eze Group and Monster Travel.
We have successfully recovered millions of pounds for clients having successfully pursued claims on their behalf to recover monies due and owing via Section 75 of the Consumer Credit Act.
If a client has a viable claim, we undertake the work on a no win no fee basis.
We will also provide free initial advice if you are seeking to terminate any timeshare.
In the case of RSB Legal, if you did not use a credit card you should contact the Liquidator urgently and submit your claim.