M1 Legal has launched an action group to support consumers after an appeal decision at the Royal Courts of Justice (RCJ), which offers fresh hope to thousands of UK timeshare holders.
The decision follows a ruling by Judge Timothy Herrington, sitting in the Upper Tribunal at the RCJ, who found that consumer detriment must be given weight when deciding a case involving Clydesdale Financial Services and 1,444 regulated credit agreements worth £47 million.
Adriana Stoyanova, a spokesperson for M1 Legal who specialises in timeshare contract law, said: “This is a landmark ruling that could open up the floodgates for European Consumer Claims.”
Clydesdale Financial Services trades as Barclays Partner Finance (BPF), whose parent company is Barclays Bank PLC.
The appeal was referred to the Upper Tribunal after 45 timeshare holders challenged a Financial Conduct Authority (FCA) Validation Order granted in favour of BPF.
Judge Herrington was asked to remit the Validation Order back to the FCA, after it was opposed by the 45 borrowers.
The tribunal heard that the credit agreements financed the acquisition of timeshare accommodation from a group of companies called Azure, totalling £47 million. The agreements were brokered by an unauthorised broker, in breach of the Financial Services and Markets Act 2000.
In February, the FCA issued the Validation Order, allowing BPF to retain money paid under the agreements. The FCA argued BPF did not intentionally contravene the requirements, and that the impact on borrowers would have been no different even if the broker had been authorised.
The 45 borrowers submitted allegations including that they were pressurised into signing, that false representations were made, that they were misled, and raised concerns about the agreements and credit assessments.
At the time the FCA issued the Order, BPF had not submitted evidence relating to consumer detriment. It was only after appeals were received opposing the Order that the FCA became aware of the issue of consumer detriment.
Both the FCA and the borrowers asked the Tribunal to remit the matter back to the FCA for reconsideration, with a direction to take consumer detriment into account.
BPF contested that the Order should not be unwound.
In his ruling, Judge Herrington said: “I have found that there is evidence of potential consumer detriment, albeit unsubstantiated at this stage, most of which was not taken into account by the Authority in making its decision to issue the Validation Order.”
He added that consumer detriment was a relevant factor and directed the FCA to take it into account when reconsidering its decision.
M1 Legal is a team of international lawyers and legal assistants with specialist knowledge of timeshare legislation, supporting consumers who have bought timeshare properties abroad and believe they were misrepresented. Following the Upper Tribunal ruling, Adriana Stoyanova said M1 Legal has formed an action group to support Azure timeshare consumers who feel they have been misrepresented.
To find out more, contact Adriana Stoyanova at azuregroupaction@m1legal.com or call M1 Legal on +44(0)203-519- 2142.
