Is Shawbrook Bank in Trouble?
posted 31st March 2024
Shawbrook Bank has to find an estimated 100 million pounds in 2024 to pay back British consumers who were illegally mis-sold dodgy timeshare products dating back over ten years. And an investigation by the Financial Conduct Authority could see this figure increase to an eye watering amount.
This huge financial black hole is a massive blow for Shawbrook Bank, and it isn't the first time they have found themselves in this position. Shawbrook Bank provided unsecured loans for timeshares sold by Club La Costa, Diamond Resorts, and less notable resorts such as La Pinta Resort in Tenerife and Anfi Beach Club in Gran Canaria. Shawbrook provided loans to UK consumers even though timeshare companies were illegally selling timeshares as investments, and resorts did not have the correct Financial Conduct Authority (FCA) authorisation to act as credit intermediaries.
Despite warnings from ourselves and other companies, Shawbrook continued lending with impunity. Thousands of consumer complaints have already been made against Shawbrook Bank, and they now find themselves with a huge compensation bill to resolve. Not only have UK timeshare consumers suffered financial detriment, but many have seen their personal lives shattered. Since we began raising complaints and submitting claims, at least 26 of our elderly and vulnerable clients have died while waiting to be paid their compensation.
In 2021, the Financial Ombudsman Service (FOS) ruled in favour of victims, and after a judicial review in 2023, the High Court upheld the decision of the FOS, ruling that victims were mis-sold their timeshares as investments. Barclays Partner Finance and Hitachi Personal Finance (Novuna) are complying with their obligations to pay compensation. However, Shawbrook Bank is doing its best to delay compensation payments to desperate and vulnerable victims by taking advantage of the toothless approach of the Ombudsman Executive Committee.
When taking on an unsecured loan to purchase a product or service, it is essential to assess the history and reputation of the bank/lender that is funding your purchase. Even with consumer credit agreements being protected by the 1974 Consumer Credit Act, it doesn't guarantee that the lender will be sympathetic to your financial loss. Banks make their money with hidden commissions and interest rates; the more loans they sell, the more money they make. As many of our clients have discovered, just because a product is linked to a British Lender does not necessarily mean that the product they are financing is genuine. There is a good reason why high street lenders blacklisted the financing of timeshares!
If you haven't begun your Shawbrook Bank Timeshare Claim, you must check if you are out of time. Please submit your claim with us within the regulatory timeframe to avoid the claim becoming statute-barred and you losing out on what they owe you. You can check if you still qualify with us for free. We can assess your eligibility within minutes; if you qualify, there are no upfront fees to pay. You only pay us if we win.
