Did you take out a loan to buy your timeshare? I have a timeshare loan what can I do? Seems a reasonable question to ask.
Timeshare and the loans which support them have been under attack for many years. Many consumers have been presenting claims in their thousands to ombudsmen and winning. With the new court of appeal authority’s, banks will be shedding more money, to ensure that the mis-selling is compensated.
The result will impact the resorts as the supporting bank run for cover and abandon the worst resorts. It now becomes an irrelevance whether or not the claim is below £30,000, as these types of claims are subject to other consumer finance act clauses.
This could have a material effect on the future of Timeshare.
The public spending watchdog has estimated that claims management companies have recovered over £22,500,000,000 £22.2bn from payment protection insurance (PPI).
The National Audit Office (NAO) has issued these finding in a report when examining regulation and redress in the financial services sector.
It is claimed that cheating banks have paid £22.2bn in damages.
Customers who feel they were wrongly sold PPI can put in a submission for compensation directly, for free, and banks are forced to re-examine thousands of claims they had initially dismissed.
Amid worries, some believe that Timeshare and Pension reforms could trigger the next wave of mis-selling claims.
The Financial Conduct Authority’s (FCA’s) efforts to tackle mis-selling were now bearing much fruit, however at the partial expense of the consumer.
Andrew Bailey currently the head of another financial regulator has since signalled, a softer approach to regulation will be taken under his tenure, to ensure that compensation flows back to the many consumers.
“The FCA cannot be confident that its actions are reducing the overall level of mis-selling”
Posted on: 25th February 2016