Consumers are advised to read the TESS web site as well as this article as it will assist greatly their understanding of point systems:-
TESS http://tesslimited.co.uk/2015/06/17/timeshare-point-systems-under-attack-are-they-legal/
Aroma (TATOC Partners) and FNTC linkage
Aroma 45 Monmouth Street, London. They are currently rated “Not Trading” and are considered to represent a below average risk score.
Flexi Holiday Club Limited Elm Gables, Westerham Road, Keston, Kent, BR2 6HH (the Club). On joining the Scheme you will become a Member of the Club a company limited by guarantee and registered in England.
In this backdrop, the companies listed above do not take money off Consumers.
Clearly those companies employ people and pays rent. Yet the Company accounts do not reflect or infer any such trading activity.
The cash it takes is sent to an offshore trust company in the name of FNTC Aroma (example).
Therefore, Aroma bank with FNTC and use that trust mechanism to deposit its money.
The paying in account (for all monies) is FNTC AROMA Lakeview
Account Number 40424812
Sort Code 56-00-64.
The TCA asks the question – why are products being sold out of a satellite office in Lakeview in partnership with TATOC whilst the funds are being sent into a trust account in the Isle of Man?
All things being equal the simplest explanation is generally the right answer which is, Protection.
Who Provides that Protection:-FNTC?
Aroma is in partnership with TATOC and TATOC attended a conference in South Africa. Harry Taylor was promoted as Executive Chairman of TATOC (UK Timeshare regulatory organisation) other Industry titans attending the annual awards ceremony included: Dimitris Manikis, Managing Director of RCI South Africa, and Robin Mills, MD Aroma UK.
This promotion is an utter fabrication. Neither, Harry Taylor or TATOC have a mandate and do not have any (advertised) authority. It does however show the levels of persuasion which Consumers are subjected to. The question is “why say these things”? What is the purpose? A self reinforced delusion designed to give credence to an unjust selling practice could be applicable?
A few facts as exposed by South Africa
- The Founder Member and Intellectual Property Owner of the Flexi club scheme is Flexi Club Holdings Limited, a BVI company, company number 93416, whose registered office is at Craigmuir Chambers, P O Box 71, Road Town, Tortola, British Virgin Islands.
- Clear this enterprise (even though heavily linked to Flexi Club who sell the product) is domiciled else ware. Why? Protection of Assets
- Purchases of the product are through First National Trust Company Limited, International House, Castle Hill, Victoria Road, Douglas, Isle of Man, IM24 RB. (The Escrow Agent).
So here we have 2 companies who are owned or directed by Mr. Stuart Lamont the South African who peddles points systems, has been investigated and his selling has declared a scam and that scamming behaviour is linked to FNTC assistance.
The intellectual property is registered in the Virgin Islands and the cash is deposited in the Isle of Man.
SGH Martineau provided information to the TCA which in short took a conservative approach which says the Aroma contract was unenforceable in the UK. That being said and the contract being administered by the FNTC and sold via an offshoot of Flexi club.
Flexi Property Holdings Limited is a wholly owned subsidiary of the Trustee, Riverdale Limited, Company No. 14991, whose registered office is Mignot Plateau, Cornet Street, St Peter Port, Guernsey, GY1 4EG, Channel Islands and the Members are protected under the terms of a Deed of Trust dated 19thAugust 1993.
Therefore the property is in the Virgin Islands the cash is in the Isle of Man and the Consumers club members are located in Guernsey.
Leisure Management Overseas Limited (the Management Company) has been appointed to manage and administer the scheme and to provide a reservations service to Members of the Club. Leisure Management Overseas Limited is incorporated in the Isle of Guernsey, Company No 205125, whose registered office is at Mignot Plateau, Cornet Street, St Peter Port, Guernsey, Channel Islands GY14EG.
To add further intrigue to the smokescreen, the management company is located and described as follows:-
Therefore when following the assets and cocophany of enterprises you can only determine a complex web exists and that web can only be to facilitate protection. Who designed it?
- Why would someone want all this paid protection?
- Why would someone pay such vast sums for protection?
The answer can only be that they need that protection. So why do they need it? Because there exists significant risk!
Why is there a significant risk?
Because the selling of timeshare as points systems are dodgy. If not why do it?
FNTC will as part of their responsibilities, maintain physical possession of all the ownership certificates of accommodation vested in the Property Company and will also be responsible for the issuing of all Membership certificates. They have a lot of answers to give. They in turn, are founder members of the RDO. In truth their current CEO was the last incumbent at FNTC and is now engaged at the RDO.
The RDO and TATOC and its satellite organisations exist for a purpose. Why so many? Why is it necessary to have so many web sites saying the same thing? The conclusion is simple the more sign post you have the easier it is to find you and the large amount of signposts divert traffic from others who may have a more rightful and righteous purpose.
The National Consumer Commission in South Africa says the selling of points as timeshare is a scam, and wants certain of the practices of companies and clubs declared unconscionable conduct in terms of the Consumer Protection Act in South Africa.
This being a real allegation you would expect Aroma and its products to be tufted out but they are not. In truth TATOC have used Aroma’s CEO to add credibility to his own campaign to retain control of Lakeview timeshare resort.
Late last week, the commission served papers on Flexi Holiday Club. When those papers were served, a few days later, Stuart Lamont, FNTC and partner TATOC attended the Lakeview Annual General Meeting. The cast (to avoid doubt) including Harry Taylor. The high flyers in attendance were successful in getting harry Taylor elected.
Whilst the Brits were listening to the charade, the news out of South Africa broke.
The commission has applied to the National Consumer Tribunal to hand down various orders against the respondents for prohibited conduct- June 13 2015 at 11:01am
The clubs in Club Leisure Group have more than 200,000 members, 77,000 of which are members of Flexi Holiday Club.
77,000 members paying say £5,000 each (as per UK prices) equates to 385 million.
The commission contends that Consumers have been misled into believing that points are timeshare, and instead of taking ownership of timeshare they are issued with “certificates of purchase” which the commission describes as a “worthless piece of paper”.
This worthless piece of paper is linked to FNTC. Would you not think that such a great and powerful company FNTC would have read the documents, have viewed the Aroma company structure and their domiciliary and come to a conclusion simmer to the nation consumer tribunal. Or have they FNTC designed the structure and author the contracts which were the subject to the criticism?
This is not where the story ends. The declaration we have and the investigation which was conducted is predominantly about point systems.
Why?
Contained within the terms & conditions and promotional literature of Flexi Club it says:
“Agreement should be made to First National Trust Company Limited, International House, Castle Hill, Victoria Road, Douglas, Isle of Man, IM24 RB. (The Escrow Agent).
Now stay with me as Diamond Resorts in Lancaster have a dam near same model (on the face of it).
Diamond Resorts have been authorised by the owners club to admit applicants to become members of an owners club and are further authorised to issue membership certificates. The owners clubs are a mixture of incorporated and unincorporated clubs. One in particular is titled Diamond Resorts Fractional Owners Club and is administered again by First National Trust Company based in the Isle of Man Registered Number: 37018.
The trust exists in that Diamond resorts (Europe) Limited Company number: 02353649 are identified as the developer and that FNTC is the trustee.
The trust consists of a variety of limited companies with individual company registration numbers, all of which have registered offices at FNTC and are under FNTC control. The limited companies own a variety of properties/assets and by some mechanism those assets are exploited by the Fractional Owners Club. As the club is referred to as an owners club it is inferred that any member actually owns something. What the Buyer owns appears in the terms and conditions clause one where it states:
“The purchase price paid by you (the Consumer) relates primarily to the provision of memorable holidays for the duration of your ownership”.
You buy memorable Holidays! That’s what you primarily are paying for
It is an express representation in clause 1 that you are at liberty to dispose of your diamond fractional points at any time which indicates that you can sell your memory which has to be a bizarre concept.
Just before the release of this information Club La Costa released a message saying in short if you want to get out you can and at no cost. They again, operate points system based Holiday clubs. That said and that offer made you can get out but for goodness sake don’t through away your right to pursue the seller of the membership.
The selling of the Aroma/Flexi Club contract is deemed as a scam, Immoral, unconscionable, and unethical in South Africa.
If a trader does any of the following they are in breach of The Consumer Protection (Amendment) Regulations 2014
- Leaves out material information that the average Consumer needs, according to the context, to make an informed transactional decision;
- Hides or provide material information in an unclear, unintelligible, ambiguous or untimely manner;
- Fails in part or whole to identify the commercial intent of the commercial practice if not already apparent from the context.
Therefore these point systems are unenforceable in the UK.
The interesting thing is that if you don’t want to pay the maintenance fees simply just stop paying them.
If you want your money back give the matter just consideration and either do it yourself in the small claims or get assistance from TESS.
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