Timeshare business wound up
A Cheshire company that offered to help dispose of valueless timeshare products has been wound up in the High Court.
An investigation by the Companies Investigation Branch (CIB) of the Insolvency Service found that Full Circle Management promised to rid timeshare owners “of the problem once and for all”, but the arrangement left customers potentially liable for outstanding management fees.
The business, based at Tattenhall near Chester, also offered to reimburse the lost timeshare investment through a cash back scheme described as “potentially worthless” by the Insolvency Service.
The District Judge handling the case said Full Circle’s business model “significantly disadvantaged the public”.
The cost of the combined options ranged from £1,800 to £8,000. The company signed up nearly 450 clients between September 2006 and March 2008, generating a turnover of more than £2m.
The enquiry found that almost £1m was diverted to a Gibraltan company and could not be accounted for.
In a statement the Insolvency Service said: “The timeshare disposal contract was not legally binding on the timeshare management company who, in the event of default by Full Circle, would continue to look to the client for outstanding management fees; a fact that was not made known to the client by Full Circle.
“In February 2008 the company had potential future annual management fees of more than £150,000 but less than £12,000 in its bank account.”
Full Circle received more than £280,000 as agents of the cash back providers, in addition to £95,000 in sales commission, but had passed on only £107,000 by March 2008.
Full Circle was abandoned in July by its management team who are living in Spain and failed to co-operate with the investigation. Its dormant sister company FC Management was also wound up.
