posted 8th April 2024
Timeshare compensation payments owed by Shawbrook Bank are increasing by the week. Shawbrook Bank is 1 of 3 banks that owe at least 500 million pounds to British victims of the Club La Costa and Diamond Resorts Timeshare Fractional ownership scam.
Due to Consumer Credit rules that fall under the 1974 Consumer Credit Act, victims have six years from when their loan is paid off to make a claim. Shawbrook Bank provided loans for up to fifteen years to victims who can submit a claim at any time within the regulated period.
Statutory interest of 8% per year, full refunds and loan cancellations represent a massive loss for the bank that could continue for years.
This isn't the first compensation black hole that has affected their potential flotation prices. In 2016, Shawbrook Bank shocked investors by revealing that one of its units accidentally gave out low-quality loans that broke internal risk rules.
As a result, it has had to set aside £9m to secure against the likelihood of future defaults and losses on those loans.
Shares in Shawbrook tumbled by as much as 27pc on the news, falling from 290p per share to 151p.
Based on the millions already owed to timeshare victims by Shawbrook Bank, any potential stock market flotation attempt by Shawbrook could see a big reduction in their listing price.
The uncertainty of how many millions Shawbrook will be liable for over the coming years will not come as welcome news for those investigating potential investment opportunities in the bank.
Final decisions by the Financial Ombudsman Service and a failed judicial review by Shawbrook Bank in 2023 led to ratification in the High Court that CLC World and Diamond Fractional members were illegally mis-sold their timeshares as investments.
If you have yet to take advantage of claiming back your money from Shawbrook Bank, Hitachi, or Barclays, now is the time. We can claim back your money and compensation and have any outstanding loans written off without charging you a penny in upfront fees.
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