Pending litigation in the UK regarding misleading and deceptive sales tactics leave as many as 2500 people deep in debt with their lending institutions. The situation is further complicated by the liquidation of the shell companies identified as doing business as companies providing free or low-cost holidays which were simply timeshare scams set up to appear legitimate business transactions.
The scam took the form of the classic bait-and-switch confidence game. The mark is offered one thing and something completely different is offered as a value-added incentive, or upgradeable for a minimal investment.
The bait took the form as a routine telephone call solicitation – whether it was from a pre-qualified list or whether it was simple cold-calling is unclear – when the person answering the phone was informed they had won a free – or low-cost – holiday. The hook was that the winner had to appear in person at a special presentation in order to claim their prize.
The switch took place at the presentation – a thinly-veiled marketing event – where the lures were cast by a number of relentless high-pressure salesman trolling for the biggest fish in the pond. The lures took the form of promises – all verbal, nothing written – that the holiday could be upgraded to a full-blown holiday, with 5-star accommodations in a choice of world-wide destinations for a low initial capital outlay, whose cost was to be defrayed – no payments – for a period up to one year, with loan package with a very attractive APR below 5%. Additional inducement in the form of cash-back monthly, which appeared to lower the cost even more. The hook was now well and firmly set, it was now just a matter of reeling in the catch.
Only when the fine print of the contract was read – and significantly, after the marketing event – did people discover they had actually signed loan documents for up to $30,000.00 with an APR of 24.50%. Most of the people who signed the documents had no idea the loan existed, never mind the exorbitant rate, simply because they had been effectively stalled by the shell companies into not expecting having to make any payments for a period of time. Blissfully unaware, the people who had in actuality signed a combination timeshare and loan package, did not discover the actual nature of the document until it was far too late to get out of the contract.
The shady financial companies were Easy Save Finance Ltd doing business as (DBA) Leisure Time Promotions; and, St. Frances Marketing Ltd DBA as Buena Viva, Classic Cruisers and Petchey Leisure. Both shells have gone into voluntary liquidation – a method of bankruptcy in the UK – with Easy Share filing in November, 2007 and St Frances in June, 2009.
The plaintiffs are taking action against the two financial institutions which financed the loans to pay for the holiday packages. They are identified as Barclays Partner Finance, a division of Barclays Bank, and GE Money. Both major institutions have acknowledged they are aware of the complaints and state they no longer accept business from either company. Hardly surprising, since the companies have been out of business for a while. Both have also stated they are addressing concerns on a case-by-case basis.
In the meanwhile, the plaintiffs only recourse seems to be the High Court. Argumentation for the plaintiffs is based on the premise that the people were actually signing loan documents which carry special protections under the UK Consumer Credit Act.
While this particular group was working out of the UK, the lessons learned and teachable moments are worth reiterating.
If it’s too good to be true, it probably isn’t true. If you receive a phone solicitation out of the blue, or as the result of entering some innocuous-sounding contest with phrasing similar to “Win a two-day three night holiday on the exciting and glamorous beaches of….”
If you have to go to a “special presentation” to collect your prize, or if attending an “opportunity seminar” on your arrival, that’s a red-flag waving.
If you hear the words “Bring your checkbook or credit card, we will need to verify your qualifications….” Another flag.
If you are offered an upgrade from a 3-star room to 5-star luxury suite by simply signing a document, don’t do it.
If you find yourself in a high-pressure situation and you are at all uncomfortable, just open your cellphone and either call your lawyer or a “wing man” friend who knows enough to help bail you out of a bad situation. Smile at the salesman and tell him, “I’m just having my lawyer check some details. Can I have your card, please?” If they turn pale and move to another person, then you bail out, too.
Above all, don’t sign anything. Not even a credit card receipt in the same building where the event is being held. Just get out.
Apex professionals strongly encourage vacationers to do their due diligence before agreeing to sign on the dotted line.
About the Author: The timeshare experts at Apex Professionals, LLC, concentrate on helping disillusioned timeshare holders to rid themselves of unwanted maintenance fees, unnecessary assessment costs, and to do away with those annoying high-interest mortgages by offering to take over unwanted timeshare agreements instantly. Related posts:
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