Barclays Partner Finance (BPF) has agreed to refund 1,482 Azure timeshare loans worth £48 million, following a four-year case led by specialist lawyer Adriana Stoyanova in collaboration with M1 Legal.
Barclays Partner Finance timeshare loans
Barclays Partner Finance has faced sustained criticism over loans issued to timeshare buyers in Malta, arranged through the now-defunct company Azure. Consumers say they were pressured into buying a timeshare and that commission-only sales staff were also involved in handling the loan application process.
It is alleged that standard affordability checks were overlooked and that some customers were advised to split borrowing between them to secure approval. It has also been claimed that while one Azure company (Azure Resorts Ltd) was FCA-authorised to handle loans, the Azure staff processing applications worked for a different Azure entity (Azure Services Ltd), which was not FCA-authorised at the time.
In short, the individuals processing the loans were allegedly neither authorised nor properly qualified to do so.
A determined legal challenge
Adriana Stoyanova, a specialist timeshare lawyer working with the team at M1 Legal, spent four years challenging financial giant Barclays Partner Finance and seeking reimbursement for people she believed had been unfairly treated. The case resulted in an FCA ruling that provided partial reimbursement to those given BPF loans through the Maltese timeshare firm.
The initial FCA ruling
“This ruling gave people a refund of their interest,” says Stoyanova, who worked alongside leading timeshare claims group European Consumer Claims (ECC) on the case. “I and Andrew Cooper (CEO of ECC) felt this ruling didn’t go nearly far enough. The people sold those loans have had their lives turned upside down. There are reasons for regulations governing loan applications. Those reasons are to protect consumers.
“We felt that these loans should be nullified completely, all payments paid so far should be refunded, and we wanted to push for interest to be paid to the loan recipients on any payments they had made so far.”
The appeal
An appeal was launched, funded by ECC. “Adriana was the driving force,” says Andrew Cooper. “She showed true grit and determination, basically taking on the mighty Barclays Partner Finance by herself. It was a daunting task, and one which privately, many people may have considered impossible given the resources available to BPF.”
The appeal hearing was due to take place in the Upper Tribunal towards the end of 2021. Adriana was working weekends and late into the night researching and investigating the case. Cooper and ECC helped her as much as they could.
Barclays Partner Finance ‘throws in the towel’
As reported by the Financial Times on 18 June 2021, BPF decided to end the dispute. They agreed to refund all loan payments made to date, pay 8% simple interest on the refunds, cancel the loan agreements, and remove any negative notations on consumers’ credit files relating to the loans. The total was £48 million plus interest.
BPF also confirmed that it would consider any further claims where customers felt they suffered additional loss or inconvenience because of this issue.
“This is a huge win,” says Stoyanova. “It is everything we have fought for, and I have to thank Andrew Cooper for his huge goodwill in providing resources for me to take on BPF, and for showing faith in this impossible-seeming ‘David vs Goliath’ challenge.”
Could you be due an Azure timeshare Barclays loan refund?
If you are an Azure owner who had a BPF loan between 01/04/2014 and 24/04/2016, then BPF’s latest decision should mean you are entitled to a refund of all payments made, plus 8% simple interest. If you do not hear from BPF about your refund within the next 60 days, please contact us.
Hope for other timeshare loan customers
This outcome may have wider implications, and other timeshare loan customers could also be affected. If you had a BPF loan before 01/04/2014 or after 24/04/2016, please contact us immediately.
Please contact us for further information.
