Lakeview, Dyserth Falls, Aroma, TATOC, FNTC and Harry Taylor getting taken apart
Dear Timeshare Owner
Further to previous correspondence in this matter, we wanted to contact you with regards to Aroma, the company which we understand is currently onsite at Lakeview attempting to arrange the purchase of timeshare weeks from existing timeshare week owners.
Firstly, please find attached a letter from Harry Taylor, the chairman of the Lakeview timeshare committee, promoting the services of Aroma and suggesting that the timeshare scheme has “partnered” with Aroma to facilitate the sale of timeshare weeks from existing members to Aroma. We understand that a copy of this letter was placed in each and every timeshare lodge (for each and every week) aimed at encouraging the timeshare owners to liaise, and enter into discussions, with Aroma in connection with the potential sale of their timeshare week.
Secondly, please also find attached the contractual documentation recently entered into by a “former” Lakeview timeshare member and Aroma in connection with the purchase of a Lakeview timeshare week by Aroma (or one of Aroma’s connected companies). As you will appreciate, we have been in ongoing discussions with a number of timeshare owners since our involvement in this matter and we have been contacted by a number of people who have felt pressured into selling their timeshare week to Aroma as they deemed it to be the only (albeit very expensive) potential exit route from the Lakeview timeshare scheme. We have recently been passed a copy of the attached Aroma contracts by a regretful former timeshare owner who has asked us to circulate copies of this documentation to make other timeshare owners aware of the potential dangers and inadequacies of the Aroma contracts which people are being asked to sign. Please note, the attached documentation has been redacted so that any personal information has been deleted.
Whilst you will appreciate that we continue to act for our client and we do not act for you, our client and the other timeshare member referred to in paragraph 2 above have requested that we bring the following to your attention:
- Whilst a person can assign the “benefit” of a contract, it is not possible to assign the “burden” of a contract. Accordingly, whilst the attached Aroma documentation purports to “assign” the liability under the Lakeview timeshare week from the owner to Aroma, this liability will not have been assigned as a matter of law and the original timeshare owner will remain liable. As the timeshare trustees/scheme itself was not a party to the contract, the burden of the contract will not have been transferred and, unless the timeshare trustees/scheme itself has explicitly confirmed in writing to the outgoing timeshare owner that they are no longer liable for any fees or maintenance charges in connected with Lakeview Country Club, we are not satisfied that they are no longer liable. However, the benefit of the contract (i.e. the ability to use the week at Lakeview) will have been successfully assigned to Aroma.
- Notwithstanding point 1 above, Schedule 1 (Annual Fees Explanation) of the Application for Membership of Aroma Thyme Limited provides that a provisional management charge (as well as an annual membership fee) will be payable to Aroma by the outgoing timeshare member. This schedule provides that “the annual provisional management charge is determined by the total maintenance fees of the Accommodation transferred to Aroma by You” (i.e. the Lakeview timeshare week accommodation). Accordingly, even if the liability of the timeshare week owed to Lakeview has been taken on by Aroma (about which point 1 above raises questions in any case), it would appear that any costs Aroma pays to Lakeview in respect of the transferred week will simply be passed onto the outgoing timeshare owner in any case by way of the yearly “provisional management charge” payable by that person to Aroma under the attached contracts. Accordingly, Aroma will pay Lakeview timeshare scheme for the applicable maintenance fee, but Aroma will then charge the same amount to the former owner as part of the “Aroma provisional management charge”.
- As you will note from the attached contractual documentation, the outgoing member is asked to sign a power of attorney which provides a company connected with Aroma (First National Trustee Company (UK) Limited (FNTC)) with the entirely unrestricted power and ability, on behalf of the outgoing timeshare member, to “sign all documentation and to take all other steps necessary or expedient to effect the transfer of the timeshare interest(s)…”. The outgoing timeshare member may have no visibility or knowledge of what documents FNTC are signing on their behalf or, indeed, the terms of those documents. This appears to allow unacceptable exposure to the outgoing timeshare member as they will have no knowledge of what they are being signed up to in respect of their “exit” from Lakeview.
- We understand from FNTC’s website that, not only is FNTC the trustee for the Aroma group of companies, it also owns Continental Trustees, the trustees of Lakeview Country Club timeshare scheme. Continental Trustees and Aroma are therefore owned and/or controlled by the same company and are not independent of one another.
- Timeshare members are being asked to pay for their transfer/purchase of Aroma points up front to transfer their week at Lakeview to Aroma. Whilst the contract clearly states – in accordance with Timeshare legislation – that any advance payment by the outgoing timeshare owner is prohibited during the first 14 days after the contracts are signed (this represents the 14 day cooling off/withdrawal period which all timeshare members are afforded under existing legislation), we are aware that on a number of occasions Aroma have pushed for, and accepted, advance payment during this withdrawal period of approximately £6,000 per timeshare owner. This is in clear breach of existing timeshare legislation governing contracts of this kind.
Ultimately, Aroma are asking existing Lakeview timeshare owners to pay the best part of £6,000 up front to transfer their week at Lakeview to Aroma in return for a certain number of “Aroma” points but it appears that they remain ultimately liable (either directly or indirectly) for the ongoing maintenance costs at Lakeview which, as you know from previous correspondence in this matter, have the potential to increase exponentially over the coming years. We would seriously question why a committee who is tasked with representing and protecting the rights of its members would (a) actively promote the Aroma product without making its timeshare members aware of the implications, and (b) allow Aroma to set up a permanent marketing office onsite at Lakeview (in one of the timeshare lodges) to promote this product to timeshare members whilst they are enjoying their week’s holiday at Lakeview.
We would, therefore, strongly advise you that, before entering into any agreements with Aroma in connection with the transfer of your Lakeview timeshare week, you seek legal advice from your solicitors on the terms of the contracts and, in particular, your ongoing liabilities and exposure to Aroma and, indeed, Lakeview timeshare scheme. If you have already entered into similar agreements with Aroma, we would again suggest that you seek independent legal advice to ensure that (a) it complies with the regulations governing timeshares in the UK and (b) you have not been left unduly and unknowingly exposed.
Best regards
Gavin McNaughton
Associate
Corporate
For and on behalf of SGH Martineau LLP
E: gavin.mcnaughton@sghmartineau.com
The Aroma contract SEE HERE Aroma Contract
Harry Taylor’s position
See Here Message from your chairman – SGH Martineau – Lakeview Country Club
The TCA advice, join your action groups and be prepared
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk