M1 Legal sets up Azure timeshare action group after Royal Courts of Justice appeal ruling

M1 Legal has set up an action group to support consumers following a decision at the Royal Courts of Justice (RCJ), a ruling that offers fresh hope to thousands of UK timeshare holders.

The development follows a ruling by Judge Timothy Herrington, sitting in the Upper Tribunal of the RCJ, which said decision-makers must give weight to consumer detriment when considering an order relating to Clydesdale Financial Services and 1,444 regulated credit agreements worth £47 million.

Adriana Stoyanova, a spokesperson for M1 Legal who specialises in timeshare contract law, said: “This is a landmark ruling that could open up the floodgates for European Consumer Claims.”

Clydesdale Financial Services (CFS) trades as Barclays Partner Finance (BPF). Its parent company is Barclays Bank PLC.

The appeal reached the Upper Tribunal after the Financial Conduct Authority (FCA) issued a Validation Order in favour of BPF. That decision was then appealed by 45 timeshare holders.

Judge Herrington was asked to remit (send back) the Validation Order granted in favour of BPF to the FCA for reconsideration, after it was opposed by the 45 borrowers.

The tribunal heard that the credit agreements financed the acquisition of timeshare accommodation from a group of companies called Azure, totalling £47 million. The agreements were brokered by an unauthorised broker, in breach of the Financial Services and Markets Act 2000.

In February, the FCA issued the order, allowing BPF to retain any money paid to it under the agreements. The FCA argued BPF did not intentionally contravene the requirements and said the effect on borrowers would have been no different even if the broker had been authorised.

The 45 borrowers made a number of allegations, including that they were pressurised into signing, that false representations were made, and that they had been misled. They also raised concerns about the agreements and credit assessments.

At the time the FCA issued the order, BPF had not submitted evidence regarding consumer detriment. The FCA only became aware of the issue of consumer detriment after it received appeals opposing the order.

Both the FCA and the borrowers asked the tribunal to remit the matter back to the FCA, with a direction to take consumer detriment into consideration when reconsidering the decision.

BPF contested that the order should not be unwound.

In his ruling, Judge Herrington said: “I have found that there is evidence of potential consumer detriment, albeit unsubstantiated at this stage, most of which was not taken into account by the Authority in making its decision to issue the Validation Order.”

He added that consumer detriment was a relevant factor and directed the FCA to take it into account when reconsidering its decision.

M1 Legal is an expert team of international lawyers and legal assistants with knowledge of timeshare legislation, supporting consumers who have bought timeshare properties abroad and feel they have been misrepresented. Following the tribunal ruling, Adriana Stoyanova said M1 Legal had formed an action group to support Azure timeshare consumers who believe they have been misrepresented, including those affected by the credit agreements referenced in the Upper Tribunal appeal.

To find out more, contact Adriana Stoyanova at azuregroupaction@m1legal.com or call M1 Legal on +44(0)203-519- 2142.