Former Silverpoint investors still throwing good money after bad

Former Silverpoint investors still throwing good money after bad

Investors in products sold by the former timeshare giant Silverpoint Vacations are still receiving a constant barrage of phone calls from questionable legal claims firms.

Many of these individuals already have claims submitted by reputable lawyers, such as these working in conjunction with The Nordic Consulting. We regret to report however that some are still parting with large sums of money based on unrealistic promises from “new” companies that contact them.

These “new” companies are often opened by groups of individuals that have recently closed another company that has charged customers and failed to provide the services they have charged for. Typically, these companies will charge between €5.000 and €25.000 for services and/or holiday products. We are aware of one family that has now spent €52.000 on claims and legal services provided by 4 different companies that have all been run by the same individual. Unfortunately, none of the companies have provided the services the family were promised.

Our advice is simple if you are tempted by a good sounding offer from a legal claims company:

  1. Check the company´s track record. How long has it been operating? The Nordic Consulting for example has been delivering results for its customers for four years already and customer reviews are online for all to read on Google reviews.
  2. Ask to speak to the company´s lawyer directly. And check their qualifications. We know of some firms that let you speak to their “lawyer” when in fact this person has no legal qualifications.

 

If you already have an ongoing court case, it is probably best to wait for the results of the case before spending more money. Remember – there are no shortcuts – and you cannot have multiple claims in the civil courts for the same case.

Also, check that you need a legal claim in the first place! Especially if you own a property. One of the saddest things we have seen is clients who have lost their properties because of receiving bad legal advice. Some have traded their property for a credit in the Silverpoint liquidation. If you own an apartment, you are probably best to keep or sell the property rather than starting a legal claim.

Also, as we have reported previously, if you own an apartment in Beverly Hills Club, we recommend that you keep it free of contract with Excel Hotels and Resorts. Several owners are warning us that Excel and related third-party companies are calling apartment owners in Beverly Hills Club with increasingly desperate attempts to get rental contracts resigned with the company. One offer that was reported to us sounded like this:

“If you pay for a package of holidays, costing €25.000, we will be able to negotiate the back-payment of amounts owed on your rental contract.”

 

But we know exactly where the payment could come from – straight from the €25.000 that you are paying over at that moment. In fact, this was a trick that Silverpoint salespeople used to sell packs of timeshare. At that time a similar sales pitch was “Buy four weeks of timeshare, one for you and three to rent out as an investment. We will even pay you the upfront rental for the first year of the weeks that you will rent out”. Of course, the “rental” payment was simply part of the purchase price immediately refunded to the purchaser.

What should apartment owners in Beverly Hills Club do?

  • Do NOT sign any new rental contract with Excel. The typical expiration date on the original rental contracts was 31/12/2022 and you may well receive all kinds of offers (or even threats) in the meantime.
  • Recognise that the real way to improve the hotel exploitation is to vote in unison with the other owners to control the community. You can register on the following website: https://bhcowners.com/

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