Silverpoint Timeshare Compensation Claims
For several years this firm has represented clients seeking to terminate timeshares sold to them by the prolific timeshare developer, Silverpoint.
In December 2019, Silverpoint went into liquidation as a result of having to face a significant amount of complaints and claims by unhappy consumers.
For a number of years, Silverpoint promoted itself as a seller of exclusive holiday investments and promoted the sale of properties, mainly in Spain and Tenerife.
Silverpoint was responsible for promoting and selling memberships in the following timeshare clubs:
- Hollywood Mirage
- Beverley Hills Club
- Beverley Hills Heights
- Palm Beach Club
- The Paramount
Typically, consumers were approached to attend meetings, which resulted in them purchasing a timeshare at the above resorts as an investment. These sales meetings were lengthy and high pressured. A typical complaint was that representations were made that buying a timeshare through Silverpoint would facilitate luxurious holidays and enable the average consumer to acquire an interest in underlying properties that would see an investment return in due course. In many cases, these products were financed by a UK bank, Clydesdale Financial Services Limited, trading as Barclays Partner Finance.
Many of the Silverpoint victims were elderly and could ill afford to lose money in what subsequently transpired to be high-risk investments.
Throughout the Silverpoint sales process, promises were made that the timeshares purchased would be sold in the future for a profit. Cashback incentives were offered to offset maintenance fees and loan interest repayments. Unfortunately, the timeshares sold by Silverpoint were not capable of being re-sold. Indeed in over a decade of assisting clients with these products, the writer has yet to come across any Silverpoint owner who could sell their timeshare on the open market. The result was that clients were left having to pay maintenance fees for a timeshare in perpetuity whilst being left to repay the bank loan or loans.
In 2015 the Spanish Supreme Court held that specific timeshare contracts were null and void if they involve the sale of what is known as “floating timeshares” or where the term of the contract was for a period in excess of 50 years,
A significant number of claims were presented following the ruling of the Spanish Supreme Court. In December 2019, Silverpoint entered liquidation with the result that it is unlikely that consumers will be compensated unless the Court-appointed Liquidator can locate assets for distribution amongst secured creditors.
Spanish lawyers have advised this firm as follows:
- All claims against Silverpoint in Spain must be filed with the Commercial Court and dealt with by the Bankruptcy Administrator.
- More than 400 cases have been opened in the Courts.
- The situation with the Courts in Spain is chaotic given the sheer number of cases, and there has been a delay in preparing a bankruptcy proposal.
- It is increasingly evident that clients are unlikely to recover the money invested as Silverpoint has little or sufficient assets to satisfy claims by unsecured creditors.
We are aware that a number of unregulated cold calling companies are still attempting to promote claims in Spain against Silverpoint. Our view is that these companies are merely charging clients for them to be added as an unsecured creditor in the Silverpoint liquidation, and it may be the case that these clients are throwing good money after bad.
As UK solicitors, this firm has been focused and pursuing claims against UK banks that financed claims in respect of Silverpoint timeshare investments and having undertaken a significant amount of work preparing similar fact evidence and legal submissions. We are pleased to say, a number of our clients have now been compensated in full by the banks involved, with compensation including:
- Write off of loans.
- A full refund of all money paid in respect of loans.
- Interest at 8% per annum.
- Banks to assume liability for the timeshares.
In respect of the claims, they have been based on allegations of misrepresentation and unfair relationship pursuant to Section 75 and 140A of the Consumer Credit Act 1974. If a claim is made out, the UK banks are jointly and severally liable. With respect to the Silverpoint bank claims, we are pleased to say we are undertaking such claims on a no win – no fee basis, subject to qualifying criteria.
We have learnt some important lessons from pursuing these claims:
- Banks will either ignore complaints or deny liability as a matter of course.
- To succeed, claims need to be supported by detailed witness evidence and appropriate legal submissions. In cases of misrepresentation, a complainant has to identify the representations and why they were false. In cases of unfair relationship, it is necessary to identify why the relationship is unfair – this involves a careful analysis of how the timeshares were sold and the unfairness of key contractual terms within the purchase contract’s “small print”.
- It is important that any clients with a UK loan taken to purchase a Silverpoint timeshare act as soon as possible to protect their position. There are strict time limits. In order to pursue a claim based upon misrepresentation, Claimants will generally have six years from the date of the contract to present a claim to the lending bank or, in the case of claims based on an unfair relationship, six years from the date of the end of the relationship with the relevant bank (i.e. repayment of the loan).
Unfortunately, we have seen cases where clients have been “parked” by unregulated claims companies who have done nothing, with the result that clients’ claims have been prejudiced.
If a claim qualifies, then in our view, it has very good prospects of success.
Why use Athena Law?
Athena Law is a full-service legal firm with a long-established timeshare dispute resolution department, headed by one of the founding partners of the firm, Mr Stephen Boyd. Mr Boyd has been a solicitor for over 20 years and over the last decade has cemented his reputation as one of the leading solicitors in this field, ably supported by his team.
We aim to provide high-quality, client-focused legal advice and support across Manchester, the North West, Fylde Coast and London. As part of our service, we will undertake an initial review of your documents and claim at no cost. We will only take on a claim if we believe it has good prospects of success, unlike unregulated timeshare paralegal companies. It is crucial to be honest with clients. Clients are engaging solicitors not only to pursue claims but to give them independent advice. If a claim has no prospects, clients should be told. If claims do have prospects, clients should expect the same to be pursued and appropriate legal submission on their behalf.
Due to the complexities of these cases, we can give no guarantees. All we guarantee is that we will use our expertise to provide our clients with the best prospect of success, and we will pursue their claims vigorously.
If you have had the misfortune to entrust your claim with an unregulated “timeshare professional,” please contact us. At the very least, we can provide you with an independent review and pursue any viable claim properly. In addition, you may have a claim against unregulated/unqualified legal representatives. For a free consultation, ring us on 0161 839 8847 or send us an enquiry form on our website.