12 February 2025 Barclays has agreed to pay nearly £181 million in compensation to approximately 6,000 customers who were mis-sold timeshares in Malta. The bank will refund loans, plus interest, to customers who financed their purchases through the now-defunct Azure Services. This decision follows allegations of aggressive sales tactics used by Azure, some dating back almost a decade.
The refunds come after a long campaign by Barclays Partner Finance customers who claim they were lured to Malta with free holidays and then pressured into taking out high-interest loans for timeshare properties at Azure Resorts. Barclays acknowledged that a review of complaints revealed “various factors” suggesting Azure “did not consistently adhere to the standards we expect of our credit brokers.”
Customers allege they were persuaded to attend marketing seminars where timeshares were falsely presented as lucrative investments with high resale value. In reality, these properties often had little to no resale value, leaving customers trapped with costly loans, impacting their retirement savings. Accusations also included irresponsible lending practices, with loans provided to individuals who couldn’t afford them.
Affected customers will have their loans cancelled, receive full refunds of all payments made (including fees and interest), plus 8% interest. Any negative marks on their credit records related to Azure will also be removed. Barclays will contact all customers who purchased Azure timeshares, even those who haven’t yet complained, to inquire about any concerns.
Ivor Williams of the Azure and Barclays Action Support Group welcomed the decision, stating the evidence against Barclays was overwhelming. He highlighted the plight of elderly individuals who were inappropriately given large loans for these worthless investments, forcing some to remortgage or take out further loans to cover the costs. Gary Smith of Praetorian Legal, who represented some of the victims, called it a “substantial victory” after an “eight-year fight,” adding that Barclays finally recognized the mis-selling from the start.
This payout follows a previous £37 million settlement with around 1,500 customers in June 2021. Those refunds only covered loans brokered between 2014 and 2016; Barclays had previously resisted reimbursing all customers.
Barclays has cautioned customers against potential scams or fraudulent firms offering assistance with claims for a fee. They emphasized that “no action is required from customers at this time” and that they are finalizing the necessary arrangements. Affected customers will be contacted in the latter part of 2022 with further details and next steps. A Barclays spokesperson apologized for the issue and the time taken to reach these conclusions.
