RSB Legal Timeshare Scammers

At Athena Law we have been receiving more and more complaints regarding unregulated claim and timeshare exit companies. One such company is RSB Legal.

In our experience the majority of these companies operate initially by way of a cold call and are invariably run and operated by an ex timeshare salesman.

Athena undertakes a significant amount of work dealing with timeshare termination and bank related claims, but a growing percentage of our practice is now spent pursuing complaints against these unregulated companies.

The pattern in every case is the same:

  1. They incorporate a company either abroad or in England.
  2. In respect of companies formed in England, they run the same aggressively looking to attract business by way of cold calls and false promises of guaranteed outcomes.
  3. They undertake no work whatsoever, or if they do undertake any work it is of a very poor quality.
  4. On occasion they refer the work to a sub-contracted unregulated timeshare paralegal company who, again, does little or, in some cases, produces a worthless indemnity certificate.
  5. Clients are charged significant sums. Ironically the sums involved are more than a regulated and experienced solicitor would charge.
  6. Having run companies in this manner for approximately 12-18 months they then disappear without filing any accounts.

One such company which is typical of companies that operate in this way is RSB Legal.

RSB Legal would cold call, either themselves or through a stooge marketing company, making promises of a timeshare exit and compensation.

RSB Legal is a company incorporated in England and Wales. A simple Google search reveals numerous complaints. Regarding RSB Legal the following can be ascertained from public records:

  1. The company was registered with company number 09751995.
  2. It was incorporated on 27th August 2015.
  3. It was wound up following a Creditors Voluntary Liquidation on 23rd May 2018. What this means is that creditors were owed money and they put the company into liquidation.
  4. Despite taking significant sums from consumers, they only ever filed small company accounts. The last small company accounts were filed on 5th May 2017 and revealed current assets of £250,307 against creditors amounts falling due within 1 year of £259,903. In other words, in 2017 the company was, on paper, trading insolvent.
  5. On 14th November 2017 there was an application to strike the company off the register at Companies House, presumably due to failure to file accounts. There then followed a suspension followed by compulsory strike out which was subsequently suspended following the appointment of a Liquidator.

On 22nd May 2018 the Liquidator filed his Statement of Affairs which revealed the following:

  1. At the time of liquidation, the company had cash in the bank of £67 which was the totality of its assets. The assets from the 2017 accounts appeared to have simply disappeared.
  2. Unsecured and non-preferential creditors are noted with a combined sum of £76,346.18 including consumer creditors of £50,941.10. In other words, a significant number of timeshare consumers have been let down by the company and have submitted claims which have been accepted by the Liquidator. We expect this is the tip of the iceberg.

On 11th July 2019 the Liquidator filed a further Progress Report. This Report reveals that as at the date of that update the Liquidator had received 90 claims from creditors with a total value of £987,451. This means, on average, they were charging consumes just shy of £11,000 for each case. The Liquidator confirms in his Report “the majority of these claims relate to consumer creditors. It is clear that the director had not maintained records sufficient to accurately disclose creditors.” It is also clear from the Report that the Liquidator is considering taking legal action against the former Directors.

We have of course been consulted by a number of consumers who have been let down by RSB Legal and have successfully pursued claims on their behalf to recover monies due and owing via Section 75 of the Consumer Credit Act, all such work being undertaken on a no win – no fee basis.

It is also our understanding that Trading Standards are now taking a keen interest in the affairs of this company and have started contacting creditors to gather information, presumably with a view to taking further action.