TIMESHARE victims are winning back tens of thousands of pounds after a ruling against banks that lent them money.
Borrowers who took out loans to buy a share in holiday resorts are starting to receive payouts after a judge found the schemes were wrongly sold as an investment opportunity – which is against consumer law.
SuppliedRenee Xavier and Rachel Goodchild felt under pressure to sign up[/caption]
Gary Smith, chief executive of Praetorian Legal, told The Sun on Sunday he has already received compensation offers for 80 clients, totalling around £2.8million.
He believes up to 25,000 investors could be due compensation.
Many were customers of timeshare firm Club La Costa, which went into liquidation in November last year.
But a judicial review in May found that banks which lent money to investors were equally responsible for mis-selling, along with the timeshare companies, because of close commercial links between the firms.
This paved the way for victims to claim compensation from their banks.
Praetorian said it is currently in the process of agreeing settlement offers on behalf of hundreds of clients who have submitted complaints to the Financial Ombudsman Service, which deals with disputes between firms and customers.
The law firm takes commission of 30 per cent on payouts.
Renee Xavier, 43, an admin assistant, from Southampton, is due to receive £8,293 from lender Novuna Consumer Finance, previously Hitachi Finance.
While on holiday with friend Rachel Goodchild in 2019 she felt pressured into signing up for a scheme at Club La Costa in Malaga, Spain.
She said: “The meeting was hell and took all day. I felt pushed into signing the contracts.”
She invested a total of £14,120 through loans that were arranged during the meeting.
Novuna has agreed to refund the money that Renee has already paid and write off the remaining loan.
Retirees Edward Costin, 75, and his wife Susan, 71, from Hemel Hempstead, Herts, borrowed £9,934 for a timeshare with Club La Costa at the same resort.
Novuna has since agreed to refund them around £7,100 and write off more than £10,000 of their remaining loan balance, which had increased due to interest.
Edward said: “The loan repayments have made life so difficult, with the rising cost of living, as we are pensioners. This will make our life substantially easier.”
A spokesperson for Novuna said: “We are working closely with the FOS to agree a way forward following the judicial review to ensure we resolve complaints as soon as possible and ensure fair outcomes for our customers.
“We will evaluate each case on an individual basis and ensure any redress reflects the unique circumstances of each case.”