Regulators have been in the neck of Barclays ordering them to repay a lumpsum in form interests because it was involved in the improper selling of the timeshare loans in Malta. The investigation is still underway and the bank might be forced to reimburse even the debt payments in full. The bank doesn’t refute the claims that it has been directed by the Financial Conduct Authority to hand over money in form of the interest paid between April 2014 and April 2016. The timeshare culprit operator that formed the ties with the bank was Azure Services.
Barclays is also directed to cancel due interest rates that are attached to more than 1400 loans. Barclays made ties with Azure Resorts and committed themselves to become their banking partner. The underwritten financing agreement was sold to a very receptive audience. The huge controversy arose when the employees from Azure Resorts which was fully licensed by FCA to sell loans, began working with another company by alias Azure services. The company was not authorized and licensed by FCA.
The waived and repaid interest amounts were estimated to a tune of £26m which was slashed from the initial value of £48m. Although there were claims from the management that the figures were overstated and they declined to reveal the actual estimates. Barclays is forced to go for an independent assessor to review each timeshare loan and check whether they were affordable. If a report reveals that they were not affordable then Barclays will be forced to reimburse and cancel any loan repayment and interest. The reimbursement also includes an extra 8% interest according to the FCA.
Barclays defended itself by revealing that they terminated their contract with Azure in 2018. The admitted to providing poor services between April 2014 and April 2016. They also revealed that they used an ideal approach and include rather reasonable rates which passed the affordability checks. Azure didn’t respond to the comments of Barclays. However, in April 2020, Azure Services Ltd and Azure Resorts Ltd started their liquidation process.
A clear way forward
Articles and studies regarding Barclays Partner Finance and FCA, show that affected customers are entitled to reimbursement of past interest and other costs incurred. The principle of outstanding credit has not been eliminated, but no additional interest is paid. This in itself is a huge reduction and should be viewed as a gain for interested customers and their legal representatives.
As part of the overall assessment, the information provided by Barclays team at the time of the loan was correct and an independent auditor should be appointed to influence the decision on whether to grant a loan. This includes appropriate exams, age, personal financial situation, etc. Given this move, inspections and settlements by a large number of lenders are likely to fail. This can lead to the complete cancellation of the loan and repayment of the debt.
What should I do?
It might be safe to say that the decision arrived at by FCA could favor you. You must begin proceeding to challenge the loan because there’s a huge possibility you might benefit from the ruling.