What is a Section 140A Finance Claim?
Section 140A of the Consumer Credit Act 1974
Section 140A of the Consumer Credit Act 1974 (CCA) is also known as the 'unfair relationship claim '. This method of claiming compensation is a lifeline to Timeshare owners that purchased with companies such as Club La Costa, Diamond Resorts, Azure Resorts, Silverpoint and Club Paradiso.
Prior to the 2014 PPI precedent (Plevin v Paragon Personal Finance Ltd), it was deemed that the creditor only had to abide by their statutory duties to the borrower. However, decisions are now based on the relationship as a whole. For example, the finance provided for the purchase of Timeshares at Azure Resorts, Silverpoint, Club Paradiso, Club La Costa and Diamond Resorts is known as 'linked finance'. This is because the financer, such as Barclays Partner Finance, has had a direct relationship with the Timeshare seller to supply the credit for the specific products they were selling, or in most cases, mis-selling! As such, the financer is held responsible to the debtor when looking at the relationship as a whole. It means that the lender can no longer use the excuse that 'abided by their duties to the borrower ', as it becomes the lender's place to take responsibility for what they are actually lending the money for.
Unfairness may arise because of the following reasons
- The terms of the loan agreement.
- How the lender enforces its rights under the loan agreement.
- Because of any other thing done or not done by or on behalf of the lender.
- When considering unfairness, the burden is on the lender to prove that the relationship is not unfair.
- The overwhelming evidence against companies such as Azure Resorts, Silverpoint, Club Paradiso, Club La Costa and Diamond Resorts has led to huge wins for our clients. This has meant that finance companies such as Barclays Partner Finance, Hitachi Personal Finance, Shawbrook Bank, and others have been forced to refund and compensate our clients.
Many of our clients have received back more money than what they paid out
This is due to the statutory compensation rate of 8% per year , on the total capital , from the original point of sale .
Get in touch if you took out a finance agreement to purchase a Timeshare with Azure Resorts, Silverpoint, Club Paradiso, Club La Costa or Diamond Resorts. We can exit you from your timeshare contract and claim compensation without the payment of any upfront fees.