In June this year, we received confirmation that the MRP was closing its door at the end of the month (Original article can be found HERE
Since the closure, we have written several articles on what to do next. However, the TCA is still receiving calls from Consumers who have unfortunately, not heard of the closure.
The unsuspecting consumers have arrived at the hotel only to find that its doors are closed.
There is only one that can be to blame for this and that is the management at the hotel.
Some consumers received an email in June telling them that they MIGHT be closing. And that they are hoping that it wont happen.
The website is still open and there is no communication in sight to ensure that consumers can make the necessary arrangements.
To re-cap;
In August 2014 the reported debt to the Social Security Institute of Madeira (ISSM) was €16.3 million, but in March the total was reported to have been reduced to €15.4 million. At this point reports claimed that there had been some progress made in securing the outstanding social security contributions accumulated over the last fourteen years by the companies controlling the Regency Club and the Regency Palace hotels.
It is thought that at least part of the debts had been secured by the provision of collateral in the form of mortgages and other guarantees to “safeguard the reimbursement of debt by the ISSM” specifically that the ISSM would assume ownership of 27 properties should the outstanding amount not be settled. “Cunha Santos & Camachos” (Regency Palace) are the believed to be the ISSM’s largest single debtor.
Although the debt was reduced , it wasn’t enough to secure Regency Palace and an application was made in the Judicial Court of Funchal to close the hotel.
The service (or lack of) that you have received is unacceptable. For anyone holding onto the idea of the hotel re-opening and re-instating the agreements, we advise to consider all of your options.
People are leaving their agreements and claiming compensation for the investment they have lost. See HERE
Don’t be left in the dark, unsure of what the future holds.
They have closed the hotel without any formal communication or advice for consumers. If you paid your deposit on a credit card then contact your credit card company. Make a claim for compensation and get back what you deserve.
To find out more about claiming compensation due to the breach of your contract, see HERE
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