posted 1st June 2023
Important Update: Favourable Decision for Fractional Timeshare Owners - Act Now to Claim Your Compensation!
We have exciting news for Club La Costa and Diamond Resorts Fractional Ownership members who have been facing issues with their timeshare products. The Financial Ombudsman Service (FOS) has made significant progress in investigating these complaints and has recently reached final decisions that are in your favor.
The Financial Ombudsman Service meticulously reviewed the matter and selected two lead cases, commonly known as the "Test Cases," to thoroughly examine the situation. After an extensive process involving industry submissions spanning several years, the Financial Ombudsman Service issued comprehensive final decisions in late 2021.
In both Test Cases, the Ombudsman concluded that the fractional ownership products were mis-sold. This means that the contractual arrangements and associated loans can be invalidated, providing a potential resolution for the problems you have been facing.
The Ombudsman's decisions were based on several grounds, including violations of regulations that prohibit timeshare contracts from being sold as investments, the failure to provide clear and accurate information to consumers, unfair contractual terms, and the existence of an unfair relationship under consumer credit laws.
As a remedy, the Ombudsman recommended setting aside the loan agreement, refunding all payments made, and awarding 8% per annum interest from the date of loss to the resolution of the complaint.
These decisions have significant implications for the banks involved, potentially exposing them to substantial compensation claims running into millions of pounds. In an attempt to challenge the FOS decisions, the banks sought permission to initiate judicial review proceedings in the High Court.
The judicial review hearing, overseen by Mrs. Justice Collins Rice, took place from March 16 to March 18, 2023. Both the banks and the FOS presented their arguments thoroughly, backed by substantial evidence and legal expertise.
We are thrilled to inform you that on May 5, 2023, Mrs. Justice Collins Rice delivered her judgment, dismissing the claims for judicial review. This means that the FOS's findings in the Test Cases have been upheld and are legally sound.
The High Court judge concluded that the Ombudsman did not make any legal errors in interpreting the relevant regulations, including the prohibition of selling timeshares as investments. The judge also affirmed that the Ombudsman's application of the Consumer Credit Act and their assessment of an unfair relationship were legally justified.
Key Points to Consider
1.The banks have lost their attempt to overturn the FOS's decision to compensate Club La Costa and Diamond Resorts Fractional Ownership members.
2. It's crucial to be aware that time limits apply. You have a six-year window from the time you took out your finance or from when the finance was paid off to make a claim. Delaying your submission could impact your chances of receiving compensation.
3. Only regulated companies, like ours, are authorised to submit your claim. Unregulated companies, often involved in cold-calling and charging upfront fees, are unable to submit your claim legally, potentially leaving you without recourse.
Take Action Now! Contact us immediately to submit your compensation claim. We are here to support you every step of the way, and you won't have to worry about any upfront fees. We are committed to providing you with 100% No Upfront Fees for our services.
Don't miss out on this opportunity to reclaim what is rightfully yours. Get in touch with us today and let us help you navigate the process of claiming your compensation.
