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June 2017

letter from australia

Friday’s Letter from Australia (No, you have read that correctly)

Welcome to Friday’s Letter from (America) now Australia, this is just to confuse our American cousins, the reason is that we welcome our first Antipodean cousin to our pages. Justin Morgan, makes his debut with his first contribution to Inside Timeshare. It is ironic that it happens to be on the first anniversary of Irene Parker’s very first article, which was about the acquisition by Apollo of Diamond.

Since her first article, Irene has been a major contributor and very much a driving force in bringing the problems of owners in the US to the fore. She has also become a very valued friend not just to myself but to all those she met while visiting Gran Canaria.

But enough of that, how about some news of timeshare in Europe?

Diamond Resorts has had a battering in the courts in Tenerife, Canarian Legal Alliance has secured a victory for one of their clients with the High Court declaring their contract null & void, with the return of over 29,000€ plus legal interest. In this case the court stated that the contract did not contain specified information required by law, with the product being the points system which the Supreme Court has deemed illegal due to their lack of tangibility.

This is the fourth verdict delivered against Diamond by the Tenerife courts this year, which our sources indicate is just the tip of the iceberg!

justice2

Anfi, based in Gran Canaria is on the defensive, it would seem they are already sending out new contracts after the vote last Friday 23 June, which coincided with another defeat at the High Court in Las Palmas. In that case the court declared the contract null & void as it was for more than 50 years.

As this is being written, the news has just arrived from our contact at the Court of First Instance in Maspalomas, that another contract has been declared null & void, with the client being awarded over 35,000€ plus legal interest.

At the same court yesterday Palm Oasis / Tasolan, were ordered to repay over 31,000€ and declaring the contract null & void. In this case the court ruled against the points system, which it deemed as selling nothing but promises.

On the Tauro Beach project, which has been the subject of many articles, it seems that the beach is still closed to the public, although many people are ignoring the fences and entering the area. There still seems to be no indication when this area will be fully open to the public, it may not be for sometime yet as there are several court cases pending.

So now on to this weeks article.

Who is Apollo? What is Apollo?

Two Diamond Member Consumer Advocates offer their opinion

Up Down

By Michael Nuwer and Justin Morgan

Introduction by Irene Parker

June 30, 2017

In honor of my one year anniversary writing for Inside Timeshare, it is only fitting to revisit Apollo Global Management’s acquisition of Diamond Resorts as Apollo’s Diamond acquisition was the subject of my inaugural article June 30, 2016.

http://insidetimeshare.com/700-2/

I had been shouting my timeshare concerns from the rooftops since my husband I attended a pathetically aggressive sales presentation July 2015 at Diamond’s Grand Beach Resort, which ultimately led to our appearance on the FOX News show Property Man, interviewed by Las Vegas attorney Bob Massi.

http://insidetimeshare.com/peasant-venice-queen-versailles/

The first I heard from Diamond was a year later in reaction to my Apollo article written for Jim Cramer of CNBC’s Mad Money’s investment news service, TheStreet. Diamond contacted TheStreet demanding a rebuttal. Diamond members are still waiting for Transitions, a relinquishment program that must still be in development.

http://www.thestreet.com/story/13624491/1/is-apollo-returning-to-its-junk-roots-with-its-acquisition-of-diamond-resorts.html

Diamond boasted 11 quarters of robust earnings growth until shortly after the Apollo acquisition announcement. A delayed 2016 second quarter earnings report was attributed to accounting irregularities.

http://www.thestreet.com/story/13702895/1/diamond-resorts-international-s-second-quarter-earnings-reversal-is-worrisome.html

According to a May 2017 KROLL Bond Report, Diamond’s default rates remain elevated.

The collateral pool of DROT 2014 – 1 has experienced elevated levels of defaults, which similar to certain other vacation ownership companies in the industry, Diamond Resorts attributes to an increase in the number of borrowers who have been solicited by lawyers to get out of their timeshare and/or have sent Diamond Resorts “cease and desist” letters.  

https://www.krollbondratings.com/announcements/3705

A National Mortgage News article appeared indicating the interest rate on the Apollo acquisition was raised due in part to the earnings restatement. Earnings had to be restated back to 2014 resulting in an earnings decline from the prior earnings report. Since the merger was announced as an all cash $2.2 billion deal, I did not understand the comment about the raised interest rate.

advocate 1

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

Timeshare Advocate Michael Nuwer explains. I now understand what it meant when Diamond owners were informed Diamond is owned “by an affiliate of an affiliate of funds.” It’s pretty high finance.

Apollo Global’s acquisition of Diamond Resorts was organized as a “leveraged buyout”.  Here’s how the deal worked:

Apollo created a shell company called Dakota Parent. Four of Apollo’s investment funds own this company. Dakota Parent created a wholly owned subsidiary called Dakota Sub. Dakota Sub borrowed $2.2 billion dollars (a big chunk of it, $1.1 billion, from the four Apollo funds) and bought 100% of the DRI shares — 72.7 million shares at $30.25 each. Then DRI merged into Dakota Sub, changed the company name to Diamond Resorts International, and thereby took on all Dakota Sub’s debt. This is the way leveraged buyouts typically work. Former Diamond CEO Cloobeck used the same structure when he bought Sunterra in 2007.

Now that all is said and done, DRI is a wholly owned subsidiary of Dakota Parent. The equity in Dakota Parent is owned by the four Apollo funds. Diamond has $2.2 billion debt on which it must make interest payments. The primary lenders are the four Apollo funds. They are in for $1.1 billion, $500,000,000 at 7.75% and $600,000,000 at 10.75%. The secondary lenders are in for $800 million, and another $200 million is secured by some DRI assets (I think they are consumer loans).

There are two ways Apollo makes money on this deal assuming all goes well. First, the four Apollo investment funds receive interest income out of DRI’s cash flow. They are guaranteed $103,250,000 per year. High profits or low profits, it doesn’t matter, Apollo gets paid. Further, the Apollo investment funds own a claim to all the equity growth of the company (that is all value over $2.2 billion). Thus, if they can sell the 72.7 million shares for $45 each, not an unreasonable number if all goes well, Apollo’s capital gain will be about $1 billion.

Aussie Flag

From Justin Morgan Australia

As a tax accountant, finance planner, part time private equity guy, I completely agree that the Apollo deal will only end in debt being laid upon Diamond members, for the benefit of those who arranged the details of a LBO merger that, when combined with the liabilities of the timeshare structure that utilized Association Board powers and targets them, it becomes a lethal mix that allows financial dealers to write their own checks bigger each year. It seems there is no end to how high they could simply raise their own salaries, pay-outs and ‘returns’ towards simply legally expecting members to pay their share of these increased contributions.

In the economy, we have certain protections such as Trade Practices Acts, Fair Trading Laws, financial regulation, monopoly laws…All this is designed to prevent abuse of market power. In my opinion, I would characterize this Diamond set-up as worse, because there is NO market that is anything other than what DRI, and the timeshare industry in general, allows. It is engaging in practices specifically designed to restrict the market to only it and its approved associates.

I feel this exploits consumers at near will, and I wonder where Apollo will set their ceiling …Looking at how the deal was structured, they see huge opportunity to lend to a membership base locked up in dubious legalities and unfair contracts. All this would not be legal in Australia. I’m amazed at how it turns out to be in the US. And I write this from Mexico, where it is well known what happens when dangerous cartels form and throw their money around here.

Circumstantial evidence is that the proof is in the pudding, but proving it in the US, where the banks and private equity already got away with much…well, I can only hope that the powers that be realize that it won’t get better if they keep allowing the average consumer and householder to be abused by what is, in my opinion, predatory sales and lending.

If the new DRI were to strip assets, it’d be left holding the large liabilities, but that is usually the reason why they then go back to legacy members warning of bankruptcy if they do not buy more points. It looks like the new DRI is just financially ‘creating’ this balance sheet to look exactly how it should look to siphon off more money from members. They already have their interest windfall. Next would be the stripping, and finally, the call for more contributions to boost management revenue…all this whilst the members are forced into more debt.

This is a strategic type play from the banking world, but DRI and private equity were some of the quickest learners out of the Great Financial Crisis. Many learnt how the banks do it. Private equity rushing into timeshare is the new rush to create financial instruments that creates only ‘liability’ for the timeshare owner. The financial guys profit from the creation of liability, which is their ‘debt-holding’. In a near zero interest rate environment, Apollo is looking to create the debt, then shift it across to the membership…effectively, they’ve already done it. Now they must get their $1.1bn back, and the result is just pure profit for the financial players. This could turn out to be a textbook case of why this must be stopped immediately. It will possibly play out over years.  Bravo Irene for taking a stand. I will support your efforts however I can. You’ve struck here what I believe is the actual core of the New Timeshare. The Old Timeshare was less sophisticated, but for those of us who know that private equity in this industry is licking its lips over several recent acquisitions, the old caveat of “buyers beware” may even be too late.

Teacher

Thank you to Michael and Justin for their reader responses which are possibly the most sophisticated reader responses in the history of Inside Timeshare. More and more timeshare Advocates are coming forward bringing their expertise and experience to the timeshare table.

Contact Inside Timeshare or one of our Timeshare Advocacy Group™ Facebooks or websites if you need timeshare assistance or can become an Advocate.   

So there we have it, another week over in the murky world of timeshare, Inside Timeshare thanks Irene for her efforts in bringing so many people together to share their views and experiences.

To our latest addition to the Inside Timeshare family, a very hearty welcome and we hope to hear more from those in the “Land Down Under”, who we do tend to forget share the same experiences as us in Europe and the US.

It’s Friday, the weekend is here, so break out the BBQ’s and let’s PARTY!!!!!!!!

barbie

us-eu-coop

The Wednesday Article from America

Following on from last week’s piece on the RDO’s use of an article in The Spectator, Irene Parker gives us the American take on it and how they are viewing timeshare in Europe.

One thing is for certain, they are looking to us for change in the way timeshare is sold in the USA, we have had many contact Inside Timeshare giving their stories, some are definitely “Nightmares on Timeshare Street”. This title has been used in three articles in the past, with stories that have hit home for many readers.

In this article Irene, interviews Timeshare Insider and author of Timeshare for Dummies, Lisa Ann Schreier, who we welcome as a new voice to our pages.

RDO – Are Unscrupulous Sales Agents a Thing of the Past?

A Timeshare Insider and one of 13 Platinum members respond

notes in hand

By Irene Parker

June 28, 2017

Inside Timeshare published a reality check response to Resort Development Organization’s article “Why Now is the Right Time to Reconsider Timeshare” offering an EU perspective.

http://insidetimeshare.com/rdo-selective-use-spectator-article-timeshare/

It is interesting to note an admission of guilt in this article as to the nature of the unscrupulous timeshare sales agent.

The Chairman of RDO is Susan Crooks, Director of Legal Services and European General Counsel, Diamond Resorts Europe, so the article is even more meaningful, considering her role. I have interviewed two EU Diamond sales agents. The agents said they refused to submit to the aggressive tactics imposed on American Diamond sales agents. One was the sales agent assigned to us when we stayed at Cala Blanca on Gran Canaria.

Here are excerpts from what RDO has to say about timeshare, followed by a report from one of the 13 Diamond Platinum members.

When you think of the word timeshare, what springs to mind? While for some it might be stylish and carefree getaways in your favourite holiday destination, for others it could just as easily be pushy salespeople trying to bamboozle you into signing an unwanted, lengthy contract.  Unfortunately, for a number of years the word timeshare has had negative connotations in the minds of many people, due to the often unethical and unjust way it was sold in the past. This is all changing though as the holiday market goes through a massive shakeup. Timeshare is evolving into something that everyone can enjoy!

In the past a proportion of timeshare was mis-sold to people through unscrupulous sales tactics from pushy sales people only interested in making a quick sale. People were persuaded to sign up for timeshare after lengthy and intense sales presentations which could last for hours. This included parting with large deposits on the same day. Now though, following strict restrictions imposed on developers by the European Timeshare Directive which must be followed by all shared holiday ownership companies operating within the EU, there is a ban on taking deposits on the day of the sales presentation from clients. In addition there is a mandatory 14-day cooling off period between a presentation and signing up for timeshare in which the individual is able to change their mind. The contract offered must also be in the client’s own language.

http://rdo.org/news/now-right-time-reconsider-timeshare/

In the EU and the US, the following groups have formed to protest and support other Diamond members.

  • DRIP website England, over 1,000 British members
  • Diamond Resorts Owners Advocacy 350 members

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

  • Club Intrawest: The Owners Group 3300 members
  • Gold Key Owner’s Forum 65 members
  • COPP website: Concerned Owners at Poipu Point
  • Monarch Grand Vacations Owners Group website

All of the above websites and Facebook pages include concerned Diamond members who don’t know where to turn. Most of those contacting Inside Timeshare are existing Diamond members, but complaints from several timeshare companies abound, alleging deceptive sales practices:

  1. Sell Diamond Points,
  2. Cover Maintenance Fees,
  3. Transfer from US to HI points because only Hawaii can rent points or transfer to US because there will be HI assessments (one Diamond member said they were shown pictures in Virginia of decaying Hawaii air conditioners),
  4. Prevent heirs from being stuck with Diamond points (this benefit is already available).  

In an interview with Timeshare Insider Lisa Ann Schreier and Diamond Platinum members Alan and Debbie Callner that took place at Diamond’s Mystic Dunes Resort June 19, we discussed timeshares flawed business model and the consumer’s deplorable lack of timeshare knowledge. Since the timeshare buyer in many cases cannot rely on the honesty and integrity of the timeshare sales agent, we agreed an organized media campaign is the only answer. “The sales agent is always right. The customer is always wrong” seems to be the developer’s motto.

End of Story

jigsaw 4

No it is not

Lisa Ann Schreier, author of Timeshare for Dummies, has worked in the timeshare industry for approximately 20 years.

It was a quiet morning after “Event of a Lifetime” – a Diamond promotion celebration with country music artist Cole Swindell performing to a packed house. The restaurant was open but in transition from Integrity Golf to Diamond management, so the golf course was closed and the restaurant temporarily without a liquor license.

I asked Lisa if she has seen an upswing in predatory timeshare lending over the years. One of the roles of the Consumer Financial Protection Bureau was the enforcement of the Dodd Frank Act which has recently been rolled back by the Trump administration. I asked Lisa if she thought the rollback would lead to even more free-wheeling timeshare lending practices, especially in terms of non-verified income and generous lending limits.

“Timeshare lending has always been freewheeling,” Lisa explained. She provided a true story example told in parable fashion:

This happened many years ago when I was a timeshare sales agent. I was getting to know a gentleman who agreed to a presentation. One of the first things he said to me was, “I need to know if you have accepted Jesus Christ as your savior.” Somewhat taken aback, I informed the man that it might be best if I found him another sales agent as I am Jewish. Intrigued however, I asked the man what led to his conversion. He responded he had been converted in jail and had been released just a month earlier have fulfilled a lengthy jail sentence.

Thinking this was the end of my tour, I sought my manager to inform him that my potential customer was a NQ (not qualified). My manager advised me to proceed. “Proceed? Should I conduct a vacation survey? Will his income history be relevant?” Lisa questioned.

Alan and Debbie Callner and my husband and I sat mesmerized as Lisa shared other incredible and interesting timeshare stories with us as several sales agents filed past us with their potential customers following their Event of a Lifetime.

Alan and Debbie are one of thirteen Diamond Platinum members concerned with Diamond’s sales practices. Seven of the thirteen allege almost identical complaints all having taken place at Diamond’s Polo Towers or Cancun Las Vegas Resorts.

Inside Timeshare encourages our readers to report positive as well as negative timeshare experiences. Alan shared his check-in experience.

Alan was somewhat concerned about the check-in at Mystic Dunes after reading a post from a DRI Facebook Member who said she had been held captive for three hours at Mystic Dunes in a hard sell presentation to buy points after check-in.

In the Callner’s case, Alan and Debbie were whisked through VIP check-in. They were invited but not pressured to attend an update. In place of an update, Marcos came to their room with a gift bag chatting amicably about Orlando and local sites to visit other than the theme parks.

A non-invasive program for Diamond members who really have no desire or need to buy additional vacation points would be a real plus. We hope Alan and Debbie’s  comfortable check-in experience did not happen only because their account had been flagged as a member who filed a complaint with the Arizona Attorney General.

Alan and Debbie filed an AZ AG complaint alleging they had been sold 20,000 additional points by Rick Casper at Cancun Resorts in Las Vegas July 2016, convinced to buy an eighth timeshare contract because of a resale program that months later they found out was non-existent.

Allegedly, “Rick Casper told us we should contact him when we needed to sell points because he had people that would buy them. This was the only reason we upgraded from 30,000 points to 50,000 points. When we contacted Rick earlier this year, we learned from Dan Percy (Rick Casper’s immediate boss) that we could not have been told that and we might be able to sell them through a resale third party. We never heard a response from Rick Casper.”

“In addition, we asked Rick about combining our seven previous contracts into one contract covering all 50,000 points. Rick Casper (allegedly) advised us not to do so as it would be easier to sell smaller quantities of points and inferred he could do so easier having contracts in increments, as when someone wants to upgrade from Gold to Platinum requiring only 20,000 additional points.”

“The thought of being able to sell was a relief.”

Inside Timeshare has received 82 reader complaints. Some expressed only the desire to relinquish, but 53 Diamond members have alleged deceit and bait and switch. Of the 13 Platinum members, six filed almost identical complaints against Rick Casper. A report compiling complaints from all loyalty levels is being prepared. If the timeshare industry continues to deny problems on the front end of the sale, efforts will be directed towards regulators, politicians, law enforcement and the media. At some point the testimonies will be overwhelmingly compelling.

know your rights

The two timeshare owning families at our Mystic Dunes table owned timeshares for a collective 70 plus years. We all agreed, verified by Lisa, timeshare predatory sales and lending has escalated to a level never seen before, perpetrated by more than a few timeshare companies.

“No heat, no eat” is a mantra shared by the eight timeshare agents I interviewed who, at some point, decided their conscious would not allow them to stoop to the level necessary to exist in a timeshare world that has led to thousands of internet complaints and lawsuits.

We hope the new timeshare world order as described by RDO will migrate to America as the timeshare members Inside Timeshare has heard from, clearly feel America is nowhere near the hospitable and transparent timeshare world RDO describes.

In a way, we in Europe seem to be the lucky ones in the timeshare world, we have a system of regulation which is being enforced. It all started with the European Union bring out the first Timeshare Directives to protect consumers, although the industry did lobby for their own versions, the EU has continually strengthened them. Some countries have gone even further and added even stronger regulations, Spain in particular is leading the way.

Some of the regulations brought in and enforced by Spain include: Contracts no longer than 50 years; Floating Weeks and Points Clubs being outlawed; enforcing the 14 day cooling off period and the taking of any deposits even by a third party, within this period.

Another aspect Spain has included and is being used by the courts is the doubling of any payment made within 90 days, where the consumer did not receive all information required by law.

Timeshare could be a good product, but regulation is the key, for too long we have seen in Europe, resorts and developers running roughshod over consumers. Unfortunately we still do have some who only think of themselves, we have highlighted many of them within our articles in the past. The story of Mrs B and MacDonald Resorts, the recent story of the Ona Group at Los Claveles are just two. There must be change and the time for change is now.

anfi ariel view

Anfi Special General Meeting, The Vote is In.

As we reported in Friday’s Letter From America, Anfi held a Special General Meeting at the H10 Hotel in Meloneras, Gran Canaria, the subject was the change in contracts to bring them into line with the law.

There were three resolutions on offer,

Voting on Resolution 1

To establish occupancy periods for a maximum of 50 years duration, with an option to extend for further recurring occupancy periods of 50 years.

This will bring the contracts in line with the 50 year rule established in Spanish timeshare law, but it allows you to extend voluntarily to another 50 years.

Voting on Resolution 2

To limit the duration of the Timeshare Scheme to a maximum of 50 years.

The same as resolution 1 without the option to extend to another 50 years.

Voting on Resolution 3

Total change of Timeshare Scheme to adapt to Spanish Act 4/2012.

This adapts the contract to  “Rotational Enjoyment Rights” Anfi explains it thus:

“Every current holder of a membership certificate shall be allocated a number of rotational enjoyment rights, equal to the number of membership certificates they currently hold and which will entitle them to enjoy the same week of use as they currently hold”.

The preliminary results are as follows, (these are not confirmed):

Anfi Beach Club

Resolution 1

  • In the favour: 4342 votes
  • Against: 140 votes
  • Abstention: 34 votes

Result: Approved

Resolution 2

  • In the favour: 2750 votes
  • Against: 1696 votes
  • Abstention: 119 votes

Result: NOT Approved

Resolution 3

  • In the favour: 2750 votes
  • Against: 1657 votes
  • Abstention: 115 votes

Result: NOT Approved

Club Monte Anfi

Resolution 1

  • In the favour: 2604 votes
  • Against: 245 votes
  • Abstention: 38 votes

Result: Approved

Resolution 2

  • In the favour: 1106 votes
  • Against: 1629 votes
  • Abstention: 161 votes

Result: NOT Approved

Resolution 3

  • In the favour: 1105 votes
  • Against: 1635 votes
  • Abstention: 156 votes

Result: NOT Approved

Club Puerto Anfi

Resolution 1

  • In the favour: 2358 votes
  • Against: 131 votes
  • Abstention: 29 votes

Result: Approved

Resolution 2

  • In the favour: 1287 votes
  • Against: 1142 votes
  • Abstention: 88 votes

Result: NOT Approved

Resolution 3

  • In the favour: 1304 votes
  • Against: 1126 votes
  • Abstention: 86 votes

Result: NOT Approved

Resolution 1 has been accepted for all three resorts, which is:

“To establish occupancy periods for a maximum of 50 years duration, with an option to extend for further recurring occupancy periods of 50 years”.

So how does this affect you?

Quite simply it doesn’t, it will only affect new contracts, the owners club does not have the right to change a bilateral agreement that was signed between you and Anfi. It will only affect you if you agree to and sign the new contract. If you do not accept the new contract your existing one remains in force, which means your contract is still a perpetuity one, which is still illegal under Spanish timeshare law.

This obviously means that you may claim back the purchase price and have the contract declared null & void. For those who do have claims underway in court, this is crucial they do not sign, as it would then make the claim invalid.

It is obvious that Anfi want you to change, it will save them a lot of problems in the courts, but it is your decision, not theirs!

As more information comes in we will publish so you have the facts.

update bricks

Since publishing we have received the following facts from Canarian Legal Alliance, they have contacted us with these figures and the latest judgment:

On Friday 23 June the HIGH COURT in Las Palmas announced the latest sentence against ANFI, with the contract being declared null & void with over 10,000€ being awarded back to the client. This was for a contract in perpetuity.

These are real figures direct from the Canarian courts along with real payouts. They are real sentences which are all ready to be executed (naturally all these amounts and sentences can easily be verified as they are public record), with many of these sentences published as news on this website as they happened. (search Supreme Court, High Court and First Instance).

So far overall court achievements from CLA against ANFI

• pay-outs to our clients from ANFI cases so far 1.133.560,06 €
• won cases ( all closed and ready for executions ) in the Supreme Court , High Court , and First Instance Courts with orders against ANFI for payments are 3.269.547,02 €
• On top of this CLA has 323 live cases in court and 279 soon to be presented.

So contrary to the spin Anfi try to put on all this, the courts are finding for clients, with Anfi having to lodge the money with the courts. The truth is out there for all to see, not just against Anfi but other resorts as well.

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, today we publish part two from David Franks, Our Diamond Misadventures. But as usual we start with some news from Europe.

Today there is a Special General Meeting of owners from Anfi, they are being asked to vote for one of three resolutions. These are in order to bring Anfi contracts in line with the laws in Spain, which as we all know are being enforced rigorously by the courts, with almost daily announcements of contracts being declared null & void with all monies returned. As we mentioned in a previous article it is a case of closing the stable door after the horse has bolted.

After last weeks article was published there were yet more announcements from the courts, the first was against Palm Oasis (Tasolan SL), with the court declaring the contract null & void with the repayment of 31,577€, a very happy ex-owner indeed.

Then on Friday evening we were informed of another decision from the Court of First Instance against none other than Anfi! The amount awarded is a staggering 59,053€.

So far this week there have been another two against Anfi, another against Palm Oasis (Tasolan SL) and two more from the Tenerife courts against Resort Properties / Silverpoint. So it looks like those lawyers from Canarian Legal Alliance are flying.

The “fake” law firms from the Litigious Abogados family in Tenerife have another name added, a new Procurador going by the name of Daniel Marco Yariz. This Procurador is working on behalf of Abogados Amable & Garcia who we highlighted in Friday’s Letter from America on 12 May. Their documents to those who are not familiar with them do look genuine, especially those from the “courts”. They certainly are growing, the question is how much money have they managed to swindle from unsuspecting owners? (Search Litigious Abogados for all articles).

One of our regular readers has informed us that he has been banned from the forum timeshare talk, because he posted one of our articles about Mr Mark Rowe. Not surprising really, as it is owned by him. So the question is can you trust this forum?

So, now on with this weeks article from David Franks.

Our Diamond Misadventures

Chapter Two: Missouri Loves Company

By David Franks

travel

June 23, 2017

Once back from our two Vegas experiences – the vacation proper and the DRI ordeal as chronicled here:

http://insidetimeshare.com/fridays-letter-america-5/ –

my lovely wife and I resumed our mundane lives and occasionally perused the Diamond Resorts material in anticipation of our membership’s becoming active in 2016. After ignoring several email and phone offers for a “free” weekend resort stay, and realizing that a resort stay was inevitable, we decided to give a resort a chance and – God help us – we booked a weekend and the obligatory “New Member orientation presentation lasting approximately 90-120 minutes” at the Suites at Fall Creek in Branson, Missouri. This would not be too long a drive from our hermitage.

We arrived at the Suites at Fall Creek on Saturday, October 17, 2016. After a check-in that included an introduction to the concierge desk, we deciphered the map they provided and found the two bedroom suite they had hidden at the back of the Suites at Fall Creek property. Though it would pass for nice, with a kitchen I might have been able to get used to during a week’s stay, it wasn’t luxurious, and it didn’t alter our conviction that resort staying is not for us. We went out and drove around for a look at Branson, found a satisfactory restaurant, had an adequate evening meal and found our way back to our pied-a-terre.

We arose early for the 8 a.m. breakfast that was part of the presentation. The dismal breakfast buffet should have served ample warning of what was to come. After that unfortunate incident and being chatted up by friendly salespeople, the group dispersed and my lovely wife and I were ushered into the office of M. W. for our individual “orientation”. He was shocked – shocked! – that M. R. in Las Vegas had sold us such a small membership. He proceeded to tell us what we should have been told in Las Vegas: the membership was too small to accomplish what we wanted. But boy, did he have a way to fix that. (Just think! A tag team that works halfway across the country!) In the face of our complete – and reinforced – lack of interest in resorts, M.K. gave us the same assurances as we had received in Las Vegas: that between Diamond and Interval International we would have access to comprehensive travel services, discounted travel and a 20- or 30-cent point redemption value for all DRI and II services. We mentioned our liking for train travel, and he told us that Diamond was working on an agreement with Amtrak.

In addition to a reprise of the Vegas promises, we were offered the incentive of double bonus points with a purchase, which would put us at Gold membership level for two years so we could really put our membership through its paces. If we still didn’t like what they had to offer at the end of the two years, then we could sell our membership. There was no mention of the particular difficulty of reselling DRI memberships in the secondary market. Having looked at the figures for another assortment of membership packages, membership did not appear to be too good to be true; rather, as presented, it seemed a reasonable value: the redemption value of points at 20 cents was approximately equal to the maintenance fees. We selected a membership that brought us to the Silver level. We were told we would have a 30-cent point redemption value for all services for calendar 2016 and 2017, and 20 cents per point after that. The first two years seemed a good value, but the ability to resell was the clincher.

Among the blandishments proffered was a variety of “Dream Vacations” from which we could select one to try out Diamond’s expert travel service. We selected a Miami-and-cruise vacation for 7,500 points.

About fifteen minutes after filling out credit card applications, my lovely wife and I were each miraculously handed a Diamond Resorts-branded MasterCard issued by Barclaycard US. I say “miraculously” because issuance was based on our assertion as to the value of half of our liquid assets – a figure they could not have verified in the time they took (this was on a Sunday), and a formula I’ve never seen used anywhere else. I guess our credit scores helped. And “miraculous” because the two cards covered the entire remaining cost of the new slab of membership.

Desk

M.K. gave us his personal cell phone number, and told us to think of him as our “concierge” if we ever needed anything – the third concierge we acquired that weekend. He also asked us to give him a good rating with Diamond, as he had never received a complaint from a client. With breakfast, “orientation”, selling, credit card applications, additional enticements, contract paperwork, and being left alone in M.K.’s office for awkward periods, the ordeal took over seven hours.

The next morning we were able to flee the premises with little disruption or delay and enjoy a fine drive home.

Important points so far:

meeting

  • Again, the 20- or 30- cent exchange value of points, for all types of travel, was the only value mentioned in the presentation.
  • Again, convenient, discounted travel was emphasized.
  • Again, the availability and advantage of comprehensive travel service through Interval International was emphasized.
  • The last time I talked to Amtrak, they knew of no arrangement with Diamond Resorts.

∙ ∙ ∙

If you are a Diamond member, here is the link to our Advocacy page on Facebook:

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

advocate 1

Thanks to David for your contribution and also to Irene Parker for the editing, we are certainly getting a great team of contributors together. OK, mainly from across the great lake, if you have a story you would like to share, contribution are welcome.

When we have some news from the Special General Meeting being held by Anfi, we will share that with you. In the meantime have a great weekend.

fridaycat

csat_mystery-shopping

It Works in Other Industries So Why Not In Timeshare?

In todays article Karen Garello shares her experience as a Secret Shopper at a timeshare presentation. Most restaurants, bars and supermarkets are familiar with this concept, it is a useful tool for improving service. The first the staff know about it is when the report is filed by the Mystery Shopper.

The idea is that the staff, sales people, waiters even managers, have no idea, so it gives a very true reflection of service, it also keeps everyone on their toes, especially when you know that your firm employs these mystery people. Inside imeshare hopes you enjoy the article from our new contributor.

Timeshare Advocacy Group ™

Secret Timeshare Shopper

secret shopper

By Karen Garello

June 22, 2017

If you are reading this article, there’s a good chance you bought a timeshare based on something a timeshare sales agent said that was not true. You probably already know about the oral representation clause that states, “I did not rely on any oral representation to make my purchase” which allows the sales agents to say anything to sell vacation points. Even with proof, the timeshare developer can still fall back on that clause.

After what happened to me, I have decided to become a Secret Shopper to report sales agents that are untruthful, as well as sales agents that do tell the truth, and to collect stories from other Secret Shoppers. Our Timeshare Advocacy Group’s new Secret Shopper program has been in existence since March when Laurie Sabbagh published our first Secret Shopper report.

http://insidetimeshare.com/friday-review-news-across-ocean/

But here’s what happened to me

head

I bought a Diamond Sampler product. This is a program that allows you to use a set number of points to try out a vacation plan. Since it is a trial program, the buyer is not locked into a perpetual contract. You do have to attend a sales presentation when you stay at one of the company’s resorts.

I attended a sales presentation at Polo Towers in Las Vegas. My first sales agent was Greg. Greg was respectful when I said I did not want to buy any more timeshares since I was already a Starwood member. He turned me over to Aries. I am a Filipino occupational therapist. Aries is Filipino. Aries offered me 20,000 Diamond points to try out the Diamond program because I was a Starwood member. He said they wanted to give me the points so that I would have an opportunity to compare Diamond’s program to Starwood. I have never had any problems with Starwood, so I had no need to buy additional vacation points. Still, it couldn’t hurt to compare.

Aries said I should open a Diamond Barclay MasterCard. The company was going to give me 20,000 vacation points. I saw no harm in filling out the credit card application. While I was putting my initials on a small piece of paper, I did notice the figure of $3,995 and asked what this amount referred to. Aries said it was the limit on the Master Card. I left with no paperwork.

Leaving the sales presentation, I was elated. Aries told me he was also going to give me a cruise and a $200 restaurant coupon. I called my cousin and told her this Filipino guy gave me 20,000 vacation points, a $200 restaurant coupon, and a cruise! I was embarrassed to later tell my cousin what really happened.

When I arrived home, I was shocked to see a charge for $3,995 on the BarclayCard. The statement said I had purchased a Sampler. Not only had I not heard the word Sampler before, I never heard the word purchase or buy mentioned throughout the entire sales presentation. I called Diamond thinking there must have been some kind of mix-up. I spoke with “Hospitality” agent Kayla. Kayla basically said, “Too bad, you signed a contract.”

Diamond Resorts has a new program called CLARITY™ which is supposed to be about accountability, transparency and respect for the customer. How can the company claim to have this program when I have been treated this way?

Kayla kept repeating that I bought a Sampler. She said she would send me a copy of the contract. What contract? I walked out of Polo Towers with nothing.

What can I do to stop others from being harmed?

speak up

What happened to me wasn’t right. In my opinion, what happened to me was criminal. I began to research corporate fraud and found this on Wikipedia.

First, customers are “baited” by merchants advertising products or services at a low price, but when customers visit the store, they discover that the advertised goods either are not available or are not as good as expected, or the customers are pressured by salespeople to consider similar, but higher-priced, items (“switching”).

In my case, my switch wasn’t higher. I didn’t even know I bought anything!

According to a publication called the balance, unauthorized credit card charges include any type of charge to your credit card account that you didn’t give permission for. I should have called Barclays Bank right away instead of assuming Diamond Resorts would correct it.

https://www.thebalance.com/what-to-do-about-unauthorized-credit-card-charges-960260

Many of our Diamond member sponsored Advocacy Group members say they were sold by deceit and bait and switch. It is one thing to use a timeshare for a long time and just give it back, but many of our Facebook members have invested sometimes $50,000 or more saying they were deceived and found out only two weeks, two months or a year later. I hope others join our Advocacy Group to get the support and encouragement I received in the hope of educating the public as to what to watch out for when on vacation.

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

https://www.facebook.com/timeshareadvocategroup/

eye

By Irene Parker

Thank you to Karen for joining our network of Secret Shoppers. The more people who uncover deceptive sales practices and report to regulatory and enforcement agencies, the more likely the industry will be forced to change. Public awareness and education through print and broadcast media can make a difference, as in the almost overnight appearance of a generic $200 Epipen.

It is legal to record a conversation in Arizona as long as one person is aware, according to Attorney Carrie Wilcox. “In the case of a telephone or in-person conversation, recording simply means making a copy of the conversation between two or more people. Recording is illegal in Arizona if NO party to the conversation knows that the conversation is being recorded. However, in Arizona, and this varies by state, if one party to the conversation knows that the conversation is being recorded, it is not illegal. However, bugging/wiretapping is always illegal. Don’t make assumptions about the law in other states -consult an attorney to determine what is allowed.”

The Law Office of Carrie M. Wilcox

http://wilcoxlegal.com/bugging-and-tape-recording-conversations-in-arizona-is-it-legal/

There was a time we would never have thought people would not leave home without a phone in their pocket, briefcase or purse. Who knows? Maybe someday timeshare buyers will come equipped to timeshare sales presentations able to record with a blink of a contact lens eye!

https://www.facebook.com/ScienceNaturePage/videos/vb.693504594115135/1087812741350983/?type=2&theater

Deceit and bait and switch tactics will probably always be part and parcel of timeshare, but once victimized, you feel you have to do something about it.

shopper cartoon

Inside Timeshare thanks Karen for her contribution and once again thanks to Irene for her editing. If you would like to share your experiences with others contact Inside Timeshare or Irene on the advocacy facebook page. We look forward to and welcome your views, by sharing it helps other to learn and see they are not alone.

 

 

HowTrueIsIt_Header_760x250

The RDO and a Selective use of a Spectator Article on Timeshare

Laura Whitcombe published in The Spectator the article: Timeshare? Think stylish getaways, not dodgy sales reps, on the 27 May. The RDO used it in their article of 23 June titled: Why Now is the Right Time to Reconsider Timeshare.

She actually paints a very nice picture of timeshare today as compared with the past, but how true is this?

In some cases it may be true, but for many the reality is somewhat different, there are still so many resorts that are clinging to the old ways, never allowing owners to surrender. Rising maintenance fees and generally treating owners with contempt.

the spectator

Yes, we have said before the concept of timeshare is a good one, but there are still many complaints about timeshare, this is borne out by the number of court cases that are currently underway. In the article she says that CAB has had only 11 complaints in March, but she also points out that they are to do with resale companies. It has to be remembered that CAB will refer anyone with a complaint about their own resort to contact them direct. So relying on figures such as this does not paint the right picture.

She also highlights a couple of timeshares, one is the Gleneagles Golf Complex, which to be honest is not what you could call traditional timeshare. One would expect that this prestigious club would be totally above board!

The other is 47 Park Street in Mayfair London (by Marriott), again not what you would consider traditional timeshare, especially as membership is between £118,000 and £270,000 with annual maintenance fees of between £7,000 & £8,000 per year, not exactly for us mere mortals!

http://www.47parkstreet.com/

47 park st

Another company she highlighted was the Club la Costa Yachts,with membership starting at £9,900 for this you receive eight sailing weeks over an eight year period. The cost is also huge, with £700 per person per week which covers meals, crew etc, but again there is an annual maintenance fee of £600 per sailing week. Not a cheap option for the ordinary folk.

The RDO are certainly using this article to their advantage, is it a case of, look even The Spectator says that timeshare is a good thing. They have been very selective in what they have used, the references to the timeshare directives and laws, which have been around for years. Yet in the past it has been the very members of this organisation that have failed to follow them.

If there has been no breach of legislation why is it that those very resorts are now having to payout large amounts in compensation?

As for the claim that timeshare is being sold with shorter contracts, well that is only because of recent court cases, where the Spanish courts have banned the perpetuity contract, these are still legal in many other countries. Yet what is being done about them?

Hilton, Gleneagles, 47 Park Street may be selling the 10 to 15 year contracts, but then these are responsible companies, not the old style timeshare resorts or developers, these are also being aimed at a different type of purchaser to standard timeshare.

So all in all, the article does not actually reflect reality, it is a journalist’s take on a different product to the one we all know and possibly loathe. Timeshare is on the defensive, the RDO is charged with putting a different “spin” on the product, with articles such as this trying to make it look appealing. Only time will tell!

For the full article follow the link, (you may have to register to read it).

https://www.spectator.co.uk/2017/05/timeshare-think-stylish-getaways-not-dodgy-sales-reps/

 

 

letter from america

Friday’s Letter From America

Welcome to this week’s Friday’s Letter From America, Irene Parker’s article this week focuses on eleven Platinum Diamond Members who have had problems. But first a round up of the news from Europe.

Once again, those lawyers from Canarian Legal Alliance have made legal history in Spain. Back in March 2015 they secured the first Supreme Court ruling against the timeshare industry, on Tuesday 13 June, they did it again with their 50th ruling from Spain’s highest court. From our sources, no other law firm in any field has managed to get this many rulings through this court. It certainly has shaped the way the timeshare laws are now being applied.

This latest ruling was against Silverpoint in Tenerife, a company with a long history of litigation against them. Since January the Supreme Court has ruled on no less than 10 cases brought by CLA on behalf of their clients.

Yesterday, Thursday 15 June, it was also announced that the Court of First Instance of Granadilla de Abona Tenerife, has ruled against Diamond Resorts Tenerife Sales SL. The client’s contract was declared null & void and the court ordered the return of over 29,000€ this was because the contract was the Diamond points system.

On Wednesday 14 June we published the Anfi CEO’s letter to members, in his letter he still indicates that the Supreme Court has got the perpetuity contracts decision wrong, he also says that it is not true that Anfi are losing. Well here we go, Wednesday 14 June, the High Court No 3 of Las Palmas once again declared an Anfi contract null & void in respect of the contract being over 50 years in duration (perpetuity) and that it also contained “Floating Weeks”. In this case they have been ordered to pay back over 10,950€

The truth is there and plain to see, it can also be easily verified through the courts themselves. Sounds like the “Fake News” syndrome is catching!

At least in Spain, consumers are getting the protection of the law, maybe our cousins across The Great Lake will take heart, that there is some light at the end of the tunnel. Now to Irene’s article.

 

Eleven Platinum Diamond Members Cry Foul

Romeo and Lily Dalisay Share their Story

be strong

By Irene Parker

June 16, 2017

It’s not easy to stand up against wealth and power, whether you are a woman accusing a famous comedian, or a former FBI Director accusing the President of the United States. Any timeshare member who has come forward to share their story can relate to the discomfort felt when the decision has been made to stand up publicly for truth and justice.

Inside Timeshare previously published the story of Romeo Dalisay, age 70, and his wife Lily, age 71, a California Filipino family. Romeo is a retired physical therapist and Lily a hand therapist. The family has maintained a good credit score until now, facing foreclosure for the first time in their life.  Mary was working just to pay for their Diamond Resorts loan and annual maintenance fees, but can no longer work due to complications from diabetes.

Romeo and Lilly decided to release their identity after reading Angela Johnson’s Inside Timeshare article. It was also of great comfort to read about the Fournier family and the lawsuit filed against Diamond Resorts by attorney Amir Goldstein, as the Fournier family is struggling with the foreclosure process as well.

http://insidetimeshare.com/timeshare-advocacy-group-update/

The Dalisay family is one of eleven Platinum Diamond member families that have reached out to Inside Timeshare alleging they were up-sold to a higher loyalty level by deceit, concealment, violation of trust and bait and switch.

Out of the eleven Platinum member complaints, Diamond’s Advocacy Department has resolved three. Three of the eleven complaints involve Diamond’s rental policy change, which states Diamond members can only rent to friends or families. All hold contracts allowing rentals and were sold on the benefits of renting.

philipines flag

The Dalisays are one of four Filipino families who have reached out to Inside Timeshare. Diamond has helped two of the four Filipino families resolve their complaints. The Dalisays first article was translated into Tagalog.

Diamond Resort’s non-deeded vacation points cannot be listed with any of the 64 members of the Licensed Timeshare Resale Broker Association, so families find themselves forced to foreclose if they are not eligible for a voluntary surrender due to a loan outstanding. Diamond Resorts is the only major timeshare that cannot be listed with an LTRBA member due to restrictions the company has placed on the use of secondary points the LTRBA members feel are more onerous than other major timeshare companies.

http://www.licensedtimeshareresalebrokers.org/

Inside Timeshare has received numerous complaints from Diamond members concerning Diamond’s Polo Towers and Cancun Resorts sales tactics. Of the eleven Platinum members filing complaints, six are from these two resorts. One of the six was up-sold by a Polo Towers sales agent while she was training Diamond’s sales agents in Virginia.

In brief, here is a description provided by nine of the eleven Platinum member complaint allegations that do not concern the rental issue except for Irina. Irina Allen has been accused of renting, although she says she only posted one ad on RedWeek on the advice of her sales agent. There are many Diamond rental ads posted on RedWeek. Irina also alleges she was upsold by deceit. The families are listed only by number.

  • Ka’anapali Hawaii sales center, up-sold from US to Hawaii Collection or there would be no Hawaii availability. Virginia sales center, up-sold to take advantage of a 30 cent maintenance fee reduction program that did not exist, Polo Towers Las Vegas sales center, “should have been invited to a meeting” up-sell from Hawaii to US Collection, or they would regret being Hawaii Collection members.
  • Branson MO up-sold to obtain a survivor release benefit, already available, a Ka’anapali up-sell US to Hawaii claiming only Hawaii points can be rented and only Hawaii members have survivor release options.
  • Polo Towers, a Legacy up-sell because points will appreciate and buying Legacy points is the only way to sell points. Complaint resolved in member’s favor.
  • Polo Towers, a Legacy upsell so they could sell their points. Complaint resolved in member’s favor.
  • Polo Towers, a Legacy up-sell as the only way to sell points. Unresolved Irina Allen up-sold in order to use secondary points, the subject of an upcoming article.
  • Polo Towers, a Legacy up-sell as the only way to sell points. Complaint resolved.
  • A Polo Towers sales agent, working in Virginia to train Virginia sales agents (as she said she helped developed many of Diamond’s policies), a Hawaii to US upsell or there would be no US availability. US to Hawaii upsell or there would be no Hawaii availability and renting Hawaii points is allowed only in Hawaii to cover maintenance fees.
  • Romeo and Lily Dalisay described herein.

Back to Romeo and Lily’s story in their own words

The Dalisays are former Monarch owners. Convinced to give up their Monarch deed, they currently own 60,000 Diamond points. The mortgage balance is $85,968 financed by Diamond at 13.1% and the monthly payments are $1,375. Maintenance Fees for 2017 are $9,034. Historically, according to information culled from lawsuits, Diamond points have sold for $3 to $4 a point, so the Dalisays have spent at least $200,000 on vacation points.

Many Monarch owners at all loyalty levels have contacted Inside Timeshare alleging deception, claiming they were told they had to buy additional points due to Monarch’s bankruptcy as they were responsible for their share of Monarch’s debt, when in fact many Monarch owners were able to deed back their Monarch week for a $250 fee.

In Romeo’s and Lily’s words

In Las Vegas at Diamond’s Cancun Resort in 2013, we were told we should have received an invitation to attend a dinner to discuss the transition from Monarch Grand Vacations to Diamond.

“You should have been invited to a dinner” is being used today on Gold Key and Intrawest owners. It seems designed to confuse.

The sales agent asked us to write a letter stating we did not receive the dinner invitation and therefore should be given the same price per point as those who attended the dinner. He faxed our letter to a Las Vegas Diamond office. We were told that due to Monarch’s bankruptcy we would lose our equity if we did not purchase additional Diamond points. The promised one hour meeting lasted five hours. We eventually broke and signed a contract to buy more points.

We constantly received telephone calls asking us to attend more updates. We generally turn them down, but accepted an offer from Diamond’s Cancun Resort. A previous telephone sales encounter from Cancun lasted over three hours.

In Pomona, California July 2015 at another meeting, we again were told we had to get rid of our Monarch points by buying more Diamond points in order to prevent the increase in maintenance fees due to less and less people owning Monarch.

This is a difficult topic and one of great interest to Intrawest and Gold Key owners as well because it is unclear how diminishing numbers of deeded members will be treated. At a 2016 Monarch Annual Meeting it was announced 30% of the remaining 40,000 Monarch owners had not paid their 2016 Maintenance Fees.

The Pomona sales representative said that if we keep our Monarch deed, we will be assessed increased maintenance fees to pay for the repair of the Cabo property caused by a hurricane. Another example he gave was the water damage at The Point at Poipu, a Diamond acquired property in Hawaii.

This meeting lasted over five hours until midnight. Focus, decision making ability, and judgement falter if kept that long. The increase in maintenance fees after this purchase started our financial struggles.

A total of four credit card accounts were opened to pay the down payment.

http://insidetimeshare.com/timeshare-finance-barclays-hot-water-high-court/

In 2016, we took out loans to pay our maintenance fees. We also used points to pay maintenance fees, but a point purchased for around $4 is only worth $.04 if used to pay maintenance fees.

stick men

Many of the tricks of the timeshare trade, like promising a buy-back program when none exists, are not unique to Diamond. What is unique is an organized effort among 5,000 Diamond member supported Websites and Facebook members determined to report deception when it occurs by obtaining the sales agent’s name and ID number, the resort location, and date and nature of alleged deceit. In other words, we act to hold Diamond accountable when members feel “the script” is nowhere to be found.

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

https://www.facebook.com/timeshareadvocategroup/

We hope the goals of accountability and transparency promoted by Diamond’s new CLARITY™ program are acted on and enforced as we work in partnership to make sure they are.

Our Timeshare Advocacy Group™ motto, courtesy of Jimi Hendrix, is Knowledge speaks, wisdom listens. It is our hope that one day timeshare developers will not look upon customers such as those described in this article as “the enemy”. Those mentioned in this article with issues resolved issues were initially denied and had to fight for a positive outcome. We teach our children to admit when they make a mistake, but grown-ups working in the corporate liability world must abandon this important principle in order to survive in a sometimes customer unfriendly world.

truth set you free

So there we have it another week over in the murky world of timeshare, thanks to all those who contribute, either by writing their stories or just giving us the heads up on the latest news. The truth is out there as Mulder and Scully from the X-Files would say, it is just a matter of who you wish to believe, those who sold it to you or independent sources?

friday dog

Have a good weekend.

stop press

Just as we were about to publish this news came in from the High Court Number 3 of Santa Cruz de Tenerife, Diamond Resorts Tenerife Sales SL, (Diamond Resorts Management Ltd), Club Sunterra Europe Ltd,(Sunterra Europe Ltd) Diamond Resorts International have just been ordered to return over 33,451€, with the client’s contract being declared null & void.

truth next exit

Anfi CEO’s Letter to Members: Desperation or What!

In a letter to members of Anfi, the CEO Jose Luis Trujillo, looks like he is getting desperate. In this letter he states several “facts” which if you have been following the story of the legal battles involving this company, will find rather hard to believe.

He rambles on about the sales activities of some law firms, none have been named, that they are being aggressive, as if the Anfi sales techniques are not aggressive. That members want Anfi to help them get out of court cases instigated by these law firms.

Well, hang on here, if those people didn’t want to sign up for legal action, why did they, surely they were not subject to the same techniques used on timeshare presentations?

Also, unlike a timeshare, clients are employing the services of the lawyers, and as such can withdraw at any time.

 

He states in one paragraph, “We are sorry that these law firms have been harassing you”, as if in timeshare, clients are never harassed to continually upgrade.

He goes on to state that in addition to “aggressive” sales methods, prospective clients are not being told the truth. Wow, that is the pot calling the kettle black! Anfi not losing cases, so where has all this news come from that they have lost?

As for not trying to fool anyone, what about all the promises made when on the sales presentation, promises which never materialised, promises which clients subsequently found out where false? A typical one heard so often from many readers is the “promise that Anfi would buy back your week at the price you paid, when you no longer need it”! No what they then do is place it on the resale market for a pittance.

tribunal supremo

As for the Supreme Court stating “Anfi acted in good faith when selling perpetuity contracts”, somehow this does not seem possible as this court has continually enforced Article 3. On Duration which clearly states that the contract should be no longer than 50 years. So why would the court declare “acting in good faith” when law 42/98, which they are upholding says different?

This once again reiterates Anfi’s belief that those learned Judges at the Supreme Court misinterpreted that very law! It is quite clear 50 years is the maximum duration, so how could that be misinterpreted?

If this was the case, why is Anfi holding a Special General Meeting on 23 June with a ballot to change contracts to comply? Does this statement by the CEO mean the opposite?

As for the legal fees going up, according to our sources this is a fabrication. From what we have been told by lawyers and clients, the fees paid at the start have never gone up, no matter how long the case lasts. In fact, one only need to ask Mrs Tove Grimsbo, whose case took many years and was the first Supreme Court ruling.

Another point is that clients only have to attend court if Anfi demand it, that said it is their right to do so. But what is the reason behind that? Simple, to prolong the case, to cause disruption and stress to the claimant, all in the hope they will withdraw.

Another “scare tactic” is Anfi state once again that the Supreme Court has accepted the principle that any client whose contract is declared null & void should compensate Anfi for the holidays they have taken over the years of membership. We at Inside Timeshare have never heard of this from the Supreme Court, so show us the written proof from the Supreme Court.

The whole letter is a deception from a CEO whose company is losing millions of Euros for past transgressions of the law. An attempt to divert attention from the known facts that they are losing, the fact that since the very first Supreme Court Ruling in March 2015, they have had a massive 34 made against them! As far as we are aware not one Supreme Court ruling has gone in their favour.

At the end of the day it is your choice, take legal action or not, keep your timeshare or not, it is more of a choice than when you were first coerced into purchasing!

Just read the many article about Anfi published here, they give you the full story from over the years, right up to the debacle that is Tauro Beach!

Inside Timeshare leaves it to you the reader to decide who is actually telling the truth.

Gandhi truth

Right click the following images and open in new tab for enlarged copy.

a  anfi2

get-involved

Timeshare Advocacy Group: Update

Today Inside Timeshare welcomes a new writer and contributor from across the Great Lake, Angela Johnson. Firstly Irene Parker gives an update on our Timeshare Advocacy Group, with a new Secret Shopper Programme being launched. We certainly look forward to reading some of the reports from this project.

At the end of the article, we give a summary of the latest Class Action against Diamond, which we published in Friday’s Letter From America. The summary has been published as a PDF attachment, due to the length, just click to read.

On now with today’s article, firstly Irene followed by Angela.

The Results of our Timeshare Advocacy Group™ Pilot

“If you build it they will come” Field of Dreams

pointer

Introduction by Irene Parker

Don’t Give Up Your Gold Key Deed

By Angela Johnson

The Timeshare Advocacy Group™ Pilot now has a team of leaders that will assist timeshare owners and members in distress over timeshare problems they have not been able to resolve through their own efforts. Any timeshare problem can and will be resolved through the “3Rs or F of timeshare” – Resolution, Relinquishment, Refund or Foreclosure. The class action complaint at the end of today’s article (attached as a PDF) details what members facing this last unfortunate option must endure.

Many highly educated, professional people who have contacted our Advocacy Group, almost all with 800 credit scores, are facing foreclosure for the first time in their life. I found line 77 of the class action complaint particularly appalling:

That Defendant continued to place several dunning telephone calls to Plaintiff’s cellular phones using an automated telephone dialing system and/or a pre- recorded or artificial voice.

77. That Plaintiffs were charged for the phone calls made by Defendant to their cellular phones.

Clearly people who have lived their entire life financially untroubled, need support and direction during this most discomforting foreclosure process.

 

Timeshare Advocacy Group™ has also launched a Secret Shopper program – a real one.

Laurie Sabbagh was our first secret shopper. Many timeshare buyers fall victim to the oral representation clause. Many contracts, not just timeshare, contain a clause that states “I did not rely on any oral representation to make my purchase.” Timeshare has for years been notorious for using and abusing this clause to get a prospect to sign a contract to buy vacation points by fabricating reasons for purchase that venture far afield from reality. Laurie reports her experience, offering prospective timeshare buyers valuable advice in regard to the value of travel awards.

http://insidetimeshare.com/friday-review-news-across-ocean/

Our two newest additions to our Leadership Team are Angela Johnson, Advocate Coordinator, and Karen Garello, Secret Shopper Coordinator. Angela shares her Advocacy experience this week and next week Karen Garello will tell us what happened to her and why she has volunteered to become more involved.

Angela went through Diamond Resort’s Advocacy Department to air her grievance against Diamond’s Williamsburg Virginia sales center. In all fairness, although never admitting wrongdoing, Diamond has helped several families. Angela was not in that fortunate group so she reached out to our member sponsored Diamond Resort’s Advocacy Facebook.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

I should add that my husband and I purchased points in Williamsburg. Both sales agents were courteous and professional. We hope our advocacy efforts will support timeshare sales agents trying to sell timeshare points in a non-deceptive way without resorting to a “bait and switch” as Angela alleges in her article.

A Warning: Don’t give up your Gold Key Deed!

By Angela Johnson

June 12, 2017

woman

My complaint was long and complicated, but I felt it was important not to leave out any details. After submitting a 2,000 word complaint to Diamond’s Advocacy department, my mom and I were told we were stuck with the timeshare points we didn’t need and didn’t know we had bought until we got home and opened the first bill.

After being declined a refund, I reached out to the member sponsored Diamond Advocacy Group. After reviewing my complaint, we reduced my accusation from 2000 to 37 words, thinking this would make it easier to understand. While I did get an immediate call back, I was told I was going to be assigned to another Diamond Advocate team member. I gave up at that point because my complaint had already been investigated. My 37 words were so simple there was no need to start over.

My mom and I met with Diamond sales agent Eursla Giles-Jones at a Diamond Resort in Williamsburg, Virginia. What happened, simply put, was this:

Angela: “I cannot afford two loans.”

Eursla: “We are going to combine the two loans.”

Angela: “But I did a credit card balance transfer to reduce the high interest rate.”

Eursla: “We can still combine them. I can make it happen.”

Then the dodge began. My mother was with me when we bought the points. We both heard what Eursla said. I have since learned about the oral representation clause allowing timeshare sales agents to say anything since often there is no proof. We did not have proof. I ended up with two loans instead of one. There is no way I can afford both loans. I did not know about this until I started receiving the bills long after the period when I could have cancelled the contract.

I feel there is a need for timeshare members to be able to have an organization to turn to before taking the drastic step of calling a lawyer. Given I have double loan payments, I can’t afford a lawyer. I had not even thought of contacting the following organizations that I now know exist thanks to the Timeshare Advocacy Group ™. Contacting the following organizations is my next step.

  • The FBI, due to alleged deceit and “bait and switch”,
  • ARDA for violating ARDA’s Code of Ethics,
  • Attorneys General where we signed our contract, where we live and the state where the resort is domiciled,
  • Consumer Financial Protection Bureau under the mortgage option and the bank that financed our loan or issued the credit card,
  • Federal Trade Commission for violating “The Federal Trade Commission Act of 1914 which outlaws unfair methods of competition and outlaws unfair acts or practices that affect commerce.”
  • State Real Estate divisions against the agents. as most states require sales agents to be real estate licensed (the agent’s ID number is helpful)

My mom and I were Gold Key owners holding a deed, but we gave up our deed so we are now Diamond point members. As members, we don’t own anything. We deeply regret this decision. I have since read several posts on our Advocacy Facebook warning Gold Key owners not to give up their deed. I have joined this cause hoping to warn others to check the facts before you sign.

signing contract

Thank you to Angela for sharing her story. Let us know if you need assistance or would like to share your story.  

Timeshare Advocacy Group™ will be scaling up the Pilot to three satellite programs at the request of many. Thus, our most recent US Inside Timeshare article was about a Wyndham owner.

http://insidetimeshare.com/fridays-letter-america-8/

The article lists what I find to be the salient parts of Diamond’s new CLARITY™ program issued in response to the Arizona Attorney General’s Assurance of Discontinuance. If just those points are abided by and enforced, there would be no need for timeshare Advocacy Facebooks.

Next week: Secret Shopper Coordinator Karen Garello rolls out Secret Shopper

***

ExcerptfromClassActionDiamond (1)

Things are certainly moving, owners / members are mobilising in a way not seen before, they are starting to realise that together they can achieve more. Through groups such as our Timeshare Advocacy Group you now have a voice along with others to share with and also offer sound advice.

Inside Timeshare welcomes your comments and stories, contact us through our comments section. If you have been in contact with any company, be it resale, claims or any other offer and you are not sure about them, contact us and we will put you in the right direction.

letter from america

Friday’s Letter From America

Welcome to this week’s Letter From America, from Irene Parker, as usual in her own style she explains what is happening across the Great Lake, but first a look at the week’s news in Europe.

Inside Timeshare is receiving many questions about the Anfi SGM and the vote to change the constitution, it seems to be causing a lot of confusion. No one seems clear as to what it is all about, so in a nutshell here it is.

Voting on Resolution 1

To establish occupancy periods for a maximum of 50 years duration, with an option to extend for further recurring occupancy periods of 50 years.

This will bring the contracts in line with the 50 year rule established in Spanish timeshare law, but it allows you to extend voluntarily to another 50 years.

Voting on Resolution 2

To limit the duration of the Timeshare Scheme to a maximum of 50 years.

The same as resolution 1 without the option to extend to another 50 years.

Voting on Resolution 3

Total change of Timeshare Scheme to adapt to Spanish Act 4/2012.

This adapts the contract to  “Rotational Enjoyment Rights” Anfi explains it thus:

“Every current holder of a membership certificate shall be allocated a number of rotational enjoyment rights, equal to the number of membership certificates they currently hold and which will entitle them to enjoy the same week of use as they currently hold”.

It will not make any difference unless you accept the new contract and sign them, it will however affect any new sales and those contracts.

As usual it is framed to confuse, why is it that anything to do with timeshare is made complicated, confusing and difficult for mere mortals to understand. Well, quite simply that is how they sold it to you in the first place!

The courts in the Canary Islands have been busy again this week, with many cases against timeshare companies being heard. Some of these sentences have yet to be announced, but as usual, we think we all know the outcome!

It has also just been announced that another ex-Anfi owner who won their case some time ago, has now received into their bank account the awarded amount. Their contract was declared null & void and now they can enjoy the 15,531€ as well as being timeshare free.

We have also been inundated with enquiries into several “claims” companies, all offering claims on a no win no fee basis. Then comes the crunch, they want several thousand pounds upfront! Obviously this is to relinquish the timeshare then the claim will be pursued, this claim is more than likely to be under the Credit Consumer Act 1974, Section 75. Which as we have stated before will not get paid out as the purchase was more than likely over the 6 year limit, (limitations act) or the fact that they will say you have received the goods and services as you have used the timeshare.

Again it pays to be cautious, so on with our Letter from America.

A Tina Timeshare Pinocchio Tale

Told by a Wyndham owner, possibly foreclosed by now, Mr. Patrick

pinocchio

By Irene Parker

June 9, 2017

Wyndham member Gene Patrick was one of several Wyndham owners to go to the trouble of making a YouTube about his timeshare trouble, continuing on with our “Nightmare on Timeshare Street” series.

Comments ranged from “this is the most boring video I’ve ever watched” to “this is the most informative video I’ve ever watched.”

Mr. Patrick is a videographer. I side with the latter, although the video is long at 45 minutes. Mr. Patrick is also an effective storyteller, but for those who would rather read a short article than watch the video, here are the seven lies (allegations) he described. He seemed to lose count after three, but I believe I found seven. Mr. Patrick did provide a disclaimer stating these were his opinions or allegations, a word I have come to detest in that, even if only half the highly educated and professional people asking Inside Timeshare for assistance with their timeshare troubles are telling the truth, Timeshare has a problem.

https://www.youtube.com/watch?v=Q218fyTmYpc

The back and forth comments among the 244 respondents sound familiar. Timeshare Facebooks that maintain a quota of happy vs angry members, admonish the angry members as irresponsible suckers that should have known better. Lawmakers and timeshare developers seem to agree with those hurling insults.

A Timeshare Tale

bloke

Gene and Melissa Patrick used his mom’s RCI points to stay at a Wyndham Resort. He was told he had to attend a member update or he would be charged $77 for a gift. He should have stopped right there, but like so many of our readers, he continued on.

We will call the sales agent Tina Timeshare as the sales agent in the video is like so many others we have reported on. As we always say, we know there are those trying to work fairly and honestly in timeshare, but the proportion of bad apples seems to be higher than even the proverbial used car salesman. Watch the video, but give it a chance. It seems boring in the beginning but the plot becomes more interesting as it thickens. For now, we will just itemize the allegations mentioned.

#1 A timeshare is tax deductible

This is a gray area, so we will defer to RedWeek and TimeSharing Today. Tax laws change, so a date would have been helpful. Apparently, in Mr. Patrick’s case, his timeshare was not tax deductible.

https://www.redweek.com/resources/articles/timeshare-tax-deductions

#2 Jim Cramer of Mad Money said Wyndham is a good investment.

Yes, Jim Cramer has been known to tout timeshare stocks, but that is not the same as saying buying a timeshare is a good idea. Mr. Patrick learned that the television clip he was shown was about Wyndham stock. Fifteen insiders made over $600,000 million on the Apollo buyout of Diamond, but that doesn’t mean buying the timeshare is a good idea. Mr. Patrick feels timeshare stock investors make money at the expense of so many who are duped into buying a timeshare.

One of our readers reported that he was shown a clip of the Ellen DeGeneres show at his Mystic Dunes presentation and told Ellen bought “hundreds of thousands” of Diamond points. Inside Timeshare is following up with Ellen on that one.

This is a good time to slip in the article I wrote for Jim Cramer’s investment news service, TheStreet, about timeshare contracts. At least Cramer allows opposing views.

https://www.thestreet.com/story/13653117/1/the-timeshare-industry-has-improved-its-reputation-but-still-faces-scrutiny.html

Tina advised Mr. Patrick that he had to promise not to sell the membership to someone for a higher price than what he had to pay. It was at this point Mr. Patrick began to lose track of the lies. “The pace of the deceit was so fast I could not keep up,” he lamented.

#3 Wyndham has a buy-back program

Mr. Patrick said his job had just been cut to 32 hours from 40 and he was unsure about his employment stability. “Not to worry Mr. Patrick! Wyndham has a buy-back program,” Tina assured him.

#4 The 90 minutes presentation was heading into its eighth hour

My favorite is #5

#5 God wants you to buy a Wyndham timeshare! He wants you to enjoy life.

Mr. Patrick might have been confused at this point because Tina probably meant “God wants me to enjoy life.”

#6 Your credit is Golden!!!

Melissa raises an eyebrow. “Our credit is golden?  Our credit score is less than 650. Our credit is not golden.” Mr. Patrick might have been confused here as well, because 650 is no problem whatsoever for a timeshare purchase so in that sense, his credit was golden, at least for the sales agent.

#7 is a sin of omission. Maintenance fees go up.

It wasn’t until the eighth or ninth hours, with pens in hand, were the Patricks told about maintenance fees and at that point they were about to collapse from exhaustion it seemed. The kids were getting a little tired too.

the end

That’s the end of our article, but we don’t know the end of the story. We do know that after Mr. Patrick lost his job he learned the hard way Wyndham did not have a buy-back program.

Which side are you on?

Like timeshare sales agent Chuck used to tell us on our timeshare Facebook, we’re all irresponsible suckers and should have known better. Lawmakers, timeshare developers and some Attorneys General seem to be on Chuck’s side.

ARDA says nine million own timeshares and 83% are happy with them. That leaves 1,530,000 not happy with most complaining about being sold by deceit, concealment, violation of trust and bait and switch. I’m on the side that thinks timeshare needs greater disclosure.

Diamond Resorts agrees too as they have launched a CLARITY™ program that, if followed, and that’s a big if, does provide accurate statements about their program. Inside Timeshare has heard stories reporting when CLARITY™ has worked and when it hasn’t.

The consumer is not off the hook here. I don’t blame the buyer for not reading word for word an 81 page contract, but the CLARITY™ forms ARE easy to read and are written in English rather than legalese. Items in bold are in bold on the form. I would have bolded what I have underlined. There are 20 items to be initialed on the legal size single sheet including:

I have reviewed the chart of Maintenance Fees for past years. I understand annual increases are normal.

The purchase of additional points will not decrease my maintenance fees.

Diamond does not offer a buy-back program and makes no representation regarding tax deductions, refinancing opportunities, or that there will be a secondary market for the sale of Points. Points do not typically appreciate in value.

I many not engage in any commercial rental activity to rent out Points for cash through online or print advertising to the general public and understand that my membership may be suspended or terminated if I do.

My membership is perpetual and may transfer by gift, or intestate succession upon my death. However, the transferee is not obligated to accept the transfer.

Redeeming points for reimbursement of travel services does not provide the best monetary value for my Points and is typically not lower in cost than spending cash for the same arrangements.

Non-Platinum Loyalty members cannot redeem Points for Maintenance Fees. Only Platinum Loyalty members may use Points to pay part of their annual Maintenance Fees, but that is not the highest and best use of Points. There is a $100 transaction fee and the redemption value per Point is currently $0.04 per Point and a maximum of 50,000 points can be redeemed.  

That about covers what Inside Timeshare has heard from readers asking Inside Timeshare for assistance with their Diamond complaints. I fell for two of the above.

So the moral of this story is not “Don’t buy a Timeshare” but “Timeshare Buyer Beware” and talk to a member of the Licensed Timeshare Resale Broker Association before buying any timeshare to compare the cost of buying resale or from the developer and the benefits or lack of benefits for doing so. Some may specialize in one resort or another like David Cortese of Magical Realty who specializes in Marriott Vacation Club, or Judi Kozlowski of RE/MAX who likes Hilton Grand Vacations, feeling Hilton has the most consumer friendly secondary market.

Contact Inside Timeshare or our member sponsored Diamond Advocacy Facebook to join the discussion.

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

There we have it, another week over and time to enjoy the weekend, breakout the BBQ’s, open a few tinnies or some vino and as our Aussie cousins say “Stick another shrimp on the barbie”!

Have a great weekend and as we always say before engaging with any company that either contacts you or you contact with anything to do with timeshare, it pays to do your homework!

stop press 1

Just as we were getting ready to hit the publish button this latest news has just come across The Great Lake from Irene Allen.

Lawsuit: Diamond Resorts ‘Harasses’ Timeshare Owners

 

https://www.classaction.org/news/lawsuit-diamond-resorts-harasses-timeshare-owners

It tells of a huge class action filed on 10 May 2017, so it looks like Diamond are being hit on both side of the lake!

 

weekend02

 

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