Browse Month

September 2017

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, somehow we think that when you have read this story you will be shocked, we certainly were.

shocked cat

Inside Timeshare heard from its first US timeshare member seeking advice one year ago. Like today, it was a Hispanic family. We in Spain feel like first cousins to American Hispanics, so are particularly affected when we hear one of our own might be faced with the possibility of foreclosure.

http://insidetimeshare.com/irene-parker-write-barclay-card-usa/

When the resort says no, a family may have no choice but to consider foreclosure. There is no one company to blame. Deceit on the front end of the timeshare sale has been talked about since timeshare began. The industry has had its ups and downs, but the emergence of the “right to use” point programs seem to have escalated timeshare complaints and lawsuits from both sides of the fence. There has been a flurry of developer lawsuits against exit, transfer or claims companies targeting members desperate for help, as well as lawsuits against lawyers practicing questionable business practices. Legitimate law firms are not immune.  Several Attorneys General in America have been investigating various timeshare companies.

Caught in the middle is the timeshare member, like the Vargas family. Hoping to warn the general public as well as existing timeshare members, to the danger of buying something that cannot be sold, Deneise Vargas shares her story.

How easily a Vacation Plan can result in Foreclosure

Hispanic

By Deneice Vargas

September 29, 2017

woman 1

I had hoped Diamond Resorts would help us. A hospitality agent had told me to supply medical documentation about my husband’s medical condition, so I thought they had listened and responded in a positive way. I then learned the person I had spoken with had quit. The person who replaced her said they would not help us because Louis got Bell’s palsy a week before we signed the timeshare contract. Bell’s palsy is not the flu! Symptoms include muscle weakness, drooling and an inability to make facial expressions. Just because a person has not been diagnosed, does not mean they are not suffering from a disease.

In dollar terms, this is what we are facing:

  • Current Loan Balance: $93,671 financed at 13.5%
  • Paid already: $76,627
  • Current Maintenance Fee: $6,948
  • We have accumulated 67,500 vacation points

Why buy so many timeshare points?

We purchased a timeshare at Polo Towers in Las Vegas and at Palm Canyon. We were never told maintenance fees would go up each year. With the loans and the maintenance fees, we have used all our savings.

At the Las Vegas sales presentation, the sales manager threatened to have our first sales agent from Palm Canyon in Palm Springs, Tim, fired because it was not legal, per them, for Tim to hold a price for us. The manager got on my phone, speaking to Tim, chewing him out. I was so upset I started to cry. I was confused and did not know what to do. We signed that contract so Tim would not be fired. They opened and charged a Diamond Barclaycard because I did not have enough money. Another $3135 was charged to two different Visa cards. Last July we had to refinance our house to pay off the credit cards.

We went to Las Vegas twice in 2015.  They told us we had to attend an informational meeting about Apollo Global Management because Apollo had purchased Diamond. They said it was not a sales presentation. They lied because they again tried to sell us more points. We were told we should buy more points because we could use points to pay maintenance fees and buy plane tickets and other things. We were not told Platinum members can only use points to pay maintenance fees at four cents a point or that a vacation point is only worth pennies per point if used to buy plane tickets.

In 2016 we went again to Palm Canyon Palm Springs. Tim introduced us to Dan Vendl. Dan explained the benefits of being trial Platinum. I hesitated because the money was going. Dan said there was a company we could refinance with that had a better rate than Diamond, so our payment would be less. That was not true.

We were told “We are real estate agents. You can write off the interest paid and closing costs on these contracts because it is like real estate.” They said the proof was because they have real estate licenses. They are licensed real estate agents, but what they told us was not true. Our accountant said we were not allowed to take any deductions. We were told we had to buy that day so we could not talk to our accountant.

Anytime we check in, they harass us to do another update.  In Las Vegas while checking in, the woman wanted to follow me to the parking garage to get Louie to change his mind even though I had told her NO. She said she needed for us to participate so she would get credit.

We have cancelled other Diamond contracts after signing. One reason was our 16 year old granddaughter was dying of brain cancer.  My son had already lost his wife to cancer and we were helping him.

Now Las Vegas Polo Towers has been calling again. Binni Thomas and his Supervisor Melvin say we need to upgrade to 50,000 points to become permanent Platinum members.  Again, we are told we should never have been given a $3.30 price per point. He said the points are now selling for $8.70 each and that is what we should pay.

I told him No!

operators

Social Media helps. At least we know we are not alone. If you or someone you know does not know where to turn for timeshare help, contact Inside Timeshare or one of the self-help Advocacy Group as members work to help other members find the next step.

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

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

https://www.facebook.com/groups/180578055325962/

Now that you have read this story, do you not agree that things must change?

This type of selling must not be allowed to continue, whether it is in the US, Europe or anywhere else in the world. At least In Spain the law is on the side of the consumer, Spain now has some of the strongest laws relating to timeshare in the world. It is through the efforts of law firms such as Canarian Legal Alliance that have brought this about.

The rest of the world take note, have a good weekend.

friday cat

gavel 1

Update: Litigious Abogados the Fake Family of Lawyers

Well it seems that Inside Timeshare has lost the wager on the name of the director who pleads guilty at court, article published Thursday 21 Sept. In this we said that it would most likely be a Keith Baker or Keith Balker, as that name had been used on many other occasions.

lost bet

Amador Galeca Abogados have come up with a new name,  Andrew Cooper, has this time pleaded guilty in a Spanish Court, for a timeshare bought and located in the United Kingdom!

Firstly, why would a Spanish court be adjudicating on a case that is clearly outside of its jurisdiction?

Secondly, in all the years we have been looking at this industry, we have not known any timeshare company or directors plead guilty to anything. On the contrary, they have always denied any wrongdoing, finding excuses and legal loopholes to wriggle out of it. Well, not quite, back in July 2009, at Reading Magistrates Court, UK, Gary Leigh (ILG) did unexpectedly plead guilty to 11 counts of the most serious charges.

http://www.theolivepress.es/spain-news/2009/07/15/timeshare-conman-convicted/

In our article of 31 July, Keith Balker pleaded pleaded guilty on behalf of Club Class Holidays, could it be as we have been publishing this name for so long they needed a change?

Also the names Keith Baker and Keith Balker are very similar to one of the names of an ILG director Keith Barker. Could this have been a take on that?

deutsche bank

Another question that is puzzling us, is in regards to the bank accounts that are being used, the latest being Deutsche Bank, with the name of the so called Procurator Graham Ingum Gorrin. The question is how on earth are these accounts being opened?

Surely in this day and age they must be doing some kind of security checks, after all when I went to open a new bank account, the documentation and proof of residence was extensive. Is this group that well prepared with all the fake documents to open these accounts or is it the banks are failing in their procedures?

To follow the story from the start, search Litigious Abogados in the search box.

Basic rules on keeping your hard earned money safe

As we have warned before, unless you have instructed a law firm to act on your behalf, then there is no case. The courts do not use outside agencies or companies to contact consumers who may have been victims of fraud. If they do need to contact you they will do so through official channels, not by telephone or email.

The courts do not issue cheques, especially from banks that are no longer in existence such as Banesto.

Spanish Courts will not be dealing with cases which have not been purchased within Spanish jurisdiction, so if your timeshare was purchased outside of Spain, then you do not have a case pending.

The Courts will also not appoint any company to investigate a missing cheque and recoup the money from the bank on your behalf.

Her Majesty’s Revenue & Customs would not be getting involved, they will not contact you by telephone or email.

Do not be fooled by the promises of the huge sums being held and waiting for you to collect, or the very genuine looking paperwork.

Until you are 100% sure that it is genuine do not pay any money, whether it is for procurator fees to lodge the case, taxes, notary fees, or any other reason to release the money.

If you are in doubt and need help in verifying any company that has contacted you with any of these promises, get in touch with Inside Timeshare.

be careful

foreclosure

Timeshare Foreclosure

In yesterday’s article “Start the Week”, we had a look at the resale market in Europe, or the lack of it. We highlighted one resale company Fab Timeshare Resales, who specialise in Marriott resale. The prices advertised on their website started at a paltry 1000€ or $1,180 for a timeshare which starts at 17,000€ or $21,000 according to the Marriott website.

Today Irene Parker looks at the growing problem in the US of foreclosure and defaults, which may just be partly due to the lack of the resale or secondary market, but first a little more news from Europe.

here we go again

Last week in Friday’s Letter from America, we published the news released by Canarian Legal Alliance on their 60th Supreme Court ruling. Yesterday they announced another, which is now 61!

In this ruling it is yet again the Tenerife company Silverpoint, which bring rulings from Spain’s Highest Court against them to 22. The judges in this instance ruled the contract null and void with the return of over £43,000 plus legal fees and legal interest. We are still waiting for the actual infractions of the law to be released, but going by past judgements it will more than likely be the duration of the contract being more than 50 years.

alert

On the “scam” front, mindtimeshare have again highlighted another rather clever little ploy coming out of the Costa del Sol. This company is called Joint Returns Legal Consultants, who have apparently been appointed by the High Court to inform consumers that a case has gone through and the court is now holding money to be returned.

Obviously as with all these “scams”, there is a “TAX” to be paid and the “gentleman” on the phone going by the name Peter Sanchez, send emails confirming the story with letter headings from “Agencia Tributaria”. All this along with confirmation from the BBVA (Bank) and a Notary it all seems very plausible.

Telephone numbers:

Tel.: +34 632844887. Fax: 0872 113 1069

Email jointreturns@gmail.com

This really does go to show some of the lengths these people will go just to get your money, we have said this before and we will continue to issue the same warning.

THE COURTS DO NOT APPOINT PRIVATE COMPANIES TO INFORM CONSUMERS THAT MONEY IS BEING HELD. THERE ARE NO CASES AT COURT UNLESS YOU HAVE INSTIGATED THEM YOURSELF. DO NOT PAY ANY MONEY ESPECIALLY BY BANK TRANSFER TO AN INDIVIDUAL.

Now for today’s main article from Irene.

Timeshare Foreclosure

Is it survivable?

graph

By Irene Parker

September 26 2017

Inside Timeshare received five more complaints over the weekend. This makes over 150 timeshare complaints received. The rise in timeshare default rates reported by bond rating agencies and the lawsuits that have ensued as timeshare developers try to stop the flow of “Cease and desist” letters prove we are not imagining a crisis.

  1. Would you buy a house you could not sell?
  2. Would you buy a boat or car you could not sell?
  3. Would you pay $25,000 to over $500,000 to join a country club you can’t quit?

According to Bankrate

Avoid developer financing

Lenders won’t mortgage a time share because they haven’t been successful in resales or in their valuation, says Patricia Hayhurst, mortgage consultant for Capital Bank in Coral Gables, Florida. “They are considered high-risk lending.”

http://www.bankrate.com/finance/loans/timeshare-loans-primer.aspx

Our own Lisa Ann Schreier was quoted in the article.

“Most (consumers) I hear from are using the developer’s financing as they are unaware of any other alternatives,” says Lisa Ann Schreier, founder of the consumer consulting company Timeshare Insights in Clermont, Florida. “If a consumer can obtain a personal loan (elsewhere) for the time share, the interest rate can be significantly lower as typical developer financing runs 15% to 19%.”

The problem is this is how sales are made. “When you get home, get a home equity loan,” is a common suggestion as it gets the developer off the hook once the buyer realizes they cannot afford the timeshare. Rather than sign off on a high interest rate loan on the spot, demand that you have time to check with your bank or credit union to find out if such statements are true and if you qualify.

Financial journalist Robert Shaw in his 2016 Seeking Alpha article, “Does timeshare need a millennial act to attract new buyers?” questions the industry’s over reliance on upgrading or up-selling existing buyers.

Since an existing owner is familiar and already pleased with the product, sales to existing owners are typically much easier to close. It is hard to visualize an existing owner who is totally dissatisfied with their current ownership sitting through a 90-minute sales tour.

sales pitch

Based on the accounts heard by those reaching out to Inside Timeshare, the reason the upgrade is easy to close, is because of deception on the front end of the timeshare sales, offering buy-back and resale programs that do not exist, or ways to offset maintenance fees to those already financially burdened that do not exist.

Mr. Shaw also feels timeshare is no longer sold as an investment. Yes it is. Buy now because the price is going to double refers to the retail price, not the resale price, yet over and over we hear this repeated as the reason the member purchased additional points. Not one member who has contacted Inside Timeshare realized their contract was perpetual and there was no secondary market.

Timeshare is definitely not a real estate investment and apart from the occasional overzealous sales associate, timeshare companies long ago stopped pitching it as such an investment. Yet, its lack of being a real estate investment may make it less attractive to newer, younger buyers who are wanting value and the ability to sell it when they no longer want or need it.

https://seekingalpha.com/article/3991819-timeshare-need-new-act-attract-millennial-buyers

At least Mr. Shaw questions the concerns expressed by timeshare insiders. Most financial news services merely want to justify the buy on the stock price.

The Foreclosure process is gruesome. There will be threatening calls and the hit on your credit score. We are not attorneys and cannot give legal advice, but the Nolo article about timeshare foreclosure is one of the best articles I’ve read on the subject. Many have tried to resolve issues with their resort, but the oral representation clause reigns.

http://www.nolo.com/legal-encyclopedia/options-avoid-timeshare-foreclosure.html

A good number of those reporting back to us that their resort will not cancel their loan, despite alleged deception on the front end of the sale, has led to many indicating they will not be paying their 2018 maintenance fees. They have no choice because they cannot afford the timeshare. Do not respond to the ads appearing when we publish our articles asking for upfront money to get you out of your timeshare.

I question how the industry can survive. Almost all of the members contacting us have children and grandchildren. Although there is a bit of a role reversal with several parents telling us, “We haven’t told our kids about this”, many have, and those children and grandchildren want nothing to do with the timeshare product once they learn their parents were deceived into buying it.

Please continue to report your grievances. In the book The Burglary by former Washington Post reporter Betty Medsger, describing the break-in at the FBI office in late 1970 that led to the exposure of J Edgar Hoover’s illegal surveillance tactics, led by a Haverford College physics professor at the Media, PA FBI office.  Gloria Steinem wrote as a testimonial:

“Ordinary people have the courage and community to defeat the most powerful and punitive of institutions.”

Timeshare today is broken. When sales agents can lie and laugh about it, at the expense of the young and the old, financially devastated by their vacation plan, something is very wrong. Lawmakers, heavily influenced by the industry, don’t seem to care because timeshare buyers don’t typically buy a timeshare in the state they live in. Attorneys General try to protect the public, but the settlements achieved are mere speed bumps in extraordinary revenue streams.

Add your voice to the growing number of timeshare members who have had enough. Contact Inside Timeshare or one of these self-help groups if you have had enough of the hamster wheel called timeshare sales if deceit has been used to sell the product, foreclosure to retrieve it, and resale at full price to continue the never ending process.

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

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

https://www.facebook.com/groups/180578055325962/

green advocacy

 

So there we have it, no resale or secondary market equals foreclosure, what a state of affairs.

In Europe we are seeing the proliferation of the bogus claims companies, these are playing on the desperation of those who want out but are unable to do so. It may be the resorts or developers will not allow them out, it may be they are unable to sell due to no market, it used to be bogus resale companies that took owners for thousands, how times have changed or have they?

 

Hello monday

Start the Week

Over the weekend Inside Timeshare received an email from Javier Correa Guimerá, a Spanish lawyer who at one time worked with Miguel Ceballos the senior lawyer from CLA. Javier posts on various forums answering many question on timeshare matters.

His email referred to the articles published last week on the new fake law firm Amador Galeca Abogados, part of the Litigious Abogados family. He was commenting on the very strange names these so-called law firms use for their lawyers, he states they are not even Spanish, just by seeing the names he is sure it is a scam.

Another point he made was about the directors pleading guilty, asking where in this world would a timeshare company accept responsibility, willingly and pay up? He called it Absurd and nonsense!

In this we must agree with him, we have never heard of any timeshare company accepting any responsibility or pleading guilty, quite the contrary, they always seem to deny any wrongdoing. All we can say is Inside Timeshare has made extensive enquiries about all these firms, searched for the lawyers, checked the cases with the courts and not one has proved positive.

FAB Timeshare Resales

fab

Over the past months we have been running articles which have highlighted the lack of a resale or secondary market on many timeshares, today we look at Marriott.

In Spain there is a company called Fab Timeshare Resales, it is a subsidiary of Fab Property based in Marbella on the Costa del Sol, the Managing Director is Julie Bett, who is an ex-regional director of sales for Marriott. According the website she has over 17 years experience in the timeshare industry.

The company was formed in 2012, the purpose was to help private individuals who wanted to sell their Marriott Vacation Club memberships, because MVC did not have a resales section for their European Resort members.

FAB Timeshare Resales also state they are fully registered and approved, operating under strict European Timeshare Guidelines. They also boast being members of the Licensed Timeshare Resale Brokers Association (LTRBA which is a US body) and ARDA (American Resorts Development Association).

This is quite commendable, a resale company that is working by the rules, especially with the reputation resale has in Europe. The only problem, is one of price!

price

Looking at their website memberships are being offered for as little a 1000€, way below what was originally paid. According to Marriott’s own website, prices start at around $21,000, or about 17,000€, not a cheap purchase.

It is not just Marriott which has this problem, look at any resale prices, those which are priced higher are what the owner believes they can get (or want) for their timeshare. The reality is very different, ebay shows many timeshares listed with the owners unable to give them away, even when they are willing to pay the transfer fees.

Many sales agents during their pitch will talk about the timeshare being property, which as we know, property goes up in value, but all they are actually getting is a right to use. The purchaser owns nothing!

For years timeshare was sold as an investment, even though the timeshare directives set by the EU stated it should not be sold a such. This has actually in one respect given rise to the resale problem, purchasers have in their minds the price they paid and then the “promise” of it going up in value. Many of the bogus timeshare resale companies played on this, offering ridiculous prices just to draw the prospective seller in.

The fact there is a resale company out there which is working to the rules is commendable, but the prices reflect only only one thing, that what you purchased in the first place is nothing but promises, there is no actual value. All you own is a right to use some very lovely properties.

If you have any questions or comments about any article published, then contact Inside Timeshare and remember to do your homework before engaging with any company.

stop think act

letter from america

Friday’s Letter from America

Welcome to another edition of Friday’s Letter from America, today Irene Parker asks the Florida Attorney General Pam Bondi, What about us? Ms Bondi seems to have a reputation for backing big business rather than the consumer, but more of that in Irene’s article. As usual we begin with what is happening in Europe.

CLA Logo

Some news which was breaking yesterday has now been confirmed, Canarian Legal Alliance issued a press release informing us of the latest Supreme Court victories.

Legal history has now been made with CLA achieving their 60th victory in Spain’s highest court, we say legal history as this is unprecedented. No other law firm has ever managed to get this number of cases through the Supreme Court. This is a fantastic achievement since their first victory in March 2015, in the past two and a half years they have not only made history but have also made law.

Their latest victories have been against Silverpoint, in sentence number 59, the court ordered the return of over 65,000€ plus the payment of First Instance legal fees and legal interest. The client’s contract was also declared null & void, which now makes them timeshare free with no more ongoing maintenance fees.

With sentence number 60, the same court ruled that the contract be declared null & void, ordering Silverpoint to return over 92,000€ plus Appeal Instance legal fees and legal interest. This now makes a total of 21 judgments from the Supreme Court against Silverpoint alone.

Then the following day, the Judge at the High Court Number 3 in Tenerife, followed the Supreme Court rulings declaring another client’s contract with Silverpoint null & void. The judge also ordered the return of over 11,000€ plus legal interest.

Not only must the clients be celebrating, but I will wager there was some celebrating going on in the Lawyer’s office!

amador-galeca-300x191

Following the publication of yesterday’s article on the new fake law firm Amador Galeca Abogados, we received an email from a reader who has already been taken in by them. Unfortunately they have already paid the Procurator a fee, but at least it was not a large sum, yet something prompted them to start checking the internet for information before they paid them next amounts.

As we said yesterday it would only be a matter of time before we found out the new name of the Procurator and the bank account they are using, here it is:

Procurator: Graham Ingum Gorrin

Address: C/ Layanva, Edif Colmenas, Oficina 2223, 38003, Santa Cruz de Tenerife.

Bank: Deutsche Bank Sociedad Anonima Espa, C.P.A. BCN, Ronda General Mitre 72-74 Barcelona.

IBAN: ES3900190172854010033761

As for the address of the procurator, searching on google and google maps it does not exist, so any post sent there will obviously never be delivered.

This reader has also supplied some new and interesting information, Amador Galeca informed them that the directors of their timeshare had pleaded guilty in court and that all their assets had been seized, not bad, it seems that all the directors according to this group of fake law firms plead guilty!

The amount paid was for a relinquishment through the Spanish courts, which needed to be done first before they could go to court for compensation. The strange thing is, once again it seems that the jurisdiction of the Spanish Courts now extends beyond the borders of Spain and encompasses timeshare in the UK!

These readers have been lucky, they have not lost a huge amount, they have also informed their bank who is going to issue an alert to all other banks.

This does prove the point, never believe what you are told, especially when it comes to timeshare,

IF IT SOUNDS TOO GOOD, STOP THINK AND DO YOUR HOMEWORK!

homework

Now on with Irene’s article.

Florida Attorney General Pam Bondi – What about Us?

Irma Iniki and Timeshare

most people

By Irene Parker

Friday September 22 2017

Florida Attorney General Pam Bondi expressed her outrage over price gouging during hurricane Irma. While her dismay is understandable and commendable, why has there been so little effort expended to come to the aid of Florida timeshare buyers alleging they were deceived into buying a timeshare? Nationwide there have been lawsuits and Attorneys General investigations too numerous to mention.

Ms. Bondi has been quick to investigate timeshare resale scams.

Florida Attorney General Pam Bondi has filed a lawsuit against a company she accuses of violating Florida’s Timeshare Resale Accountability Act.

Florida has a specific law covering timeshare resales because it has so many of the properties, whose owners are often desperate to unload them.

In this latest case, Bondi sued Prime Resorts International, based in central Florida. She accuses the company of making telephone calls to timeshare owners all over the country, telling them they have a buyer for their timeshare. She says the company also claimed to be able to guarantee the deal would close.

https://www.consumeraffairs.com/news/florida-sues-another-timeshare-reseller-031116.html

The Berkley Group

Sources tell us Ms. Bondi is investigating The Berkley Group. The Berkley Group owns Vacation Village Resorts. With a BBB rating of F, looking into this company is a start, but acting on only 110 out of 2,360 timeshare complaints filed from April 2012 to April 2014 seems underperforming at best.

https://www.bbb.org/south-east-florida/business-reviews/timeshare-companies/vacation-village-resorts-in-fort-lauderdale-fl-4003645/reviews-and-complaints

Ms. Bondi opened this resale investigation after receiving 85 complaints.

The attorney general opened her investigation after she said her office got more than 85 complaints, claiming to have lost more than $110,000. The suit seeks a permanent injunction against the company, consumer restitution, and a civil penalty of $10,000 per violation.

Inside Timeshare has received 144 timeshare complaints of which 130 allege they were deceived on the front end of the sale. The dollar amount in question concerns well over one million dollars. The 14 not alleging deceit say they seek relinquishment because they say they cannot afford the annually increasing maintenance fees. ARDA and the industry continue to ignore deception exists, and with lawmakers turning a deaf ear, the court of public opinion seems the only avenue open for families reporting how they have been financially devastated by their timeshare plan.

follow money

Timeshare revenue in Florida is a lot of dollars to tamper with.

As the state’s No. 1 industry, tourism is crucial to Florida’s economy – generating 23 percent of the state’s sales tax revenue and employing more than one million Floridians. In 2011, tourism was responsible for welcoming 86.5 million visitors to Florida and generated $67.2 billion in direct economic impact.

http://www.flgov.com/governor-scott-applauds-floridas-tourism-marketing-2/

The industry will be quick to respond that there are nine million who own timeshares. What difference does a couple hundred families make? It makes a world of difference to the families affected who have contacted Inside Timeshare.

Recently, the Finn Law Group took issue with the lack of disclosure provided to timeshare buyers. If feeling deceived, after spending $5,000 to over $500,000 on a vacation plan, families are shocked to learn their timeshare has no secondary market and the contract is perpetual. Contracts are deceptive in that they often state points can be sold. Buyers are not informed about the lack of buyers should they need to sell.

LARGO, Fla.–(BUSINESS WIRE)–An administrative petition has been filed against Florida’s Department of Business and Professional Regulation alleging that the agency’s approval of a request by timeshare developers to make statutorily mandated public offering statements available by providing an online address at the closing rather the furnishing hard copies violates Florida law.

http://www.businesswire.com/news/home/20170905006015/en/Finn-Law-Group-Files-Petition-Florida-Agency

Ms. Bondi appeared on Las Vegas Attorney Bob Massi’s Property Man Show in 2016 explaining how the Florida Attorney General’s office worked with ARDA and the Department of Justice to shut down timeshare resale or release scams. Mr. Massi encouraged timeshare members to contact a member of the Licensed Timeshare Resale Broker Association if they need to sell their timeshare. When I contacted LTRBA about selling our Diamond timeshare points, I was informed by several LTRBA members they know of no licensed LTRBA broker who will even accept a listing for our points due to secondary market restrictions.

https://www.youtube.com/watch?v=VHCdcS2Ds-U

Inside Timeshare has also started hearing from Bluegreen members. One member is Lela Renea, a Bluegreen member and a detective. Lela Renea says she was deceived into buying a timeshare. If a Florida detective, allegedly reports being a victim of deceptive sales, what chance does the average timeshare buyer on the street have?

http://insidetimeshare.com/fridays-letter-america-11/

When I wrote an article for TheStreet, Jim Cramer of Mad Money’s investment news service, challenging what is in my opinion gestapo like tactics demanding Diamond members stay vacationed, Diamond demanded a rebuttal, stating they understood life’s changes could render their product a liability so they were introducing a program called Transitions that would allow qualified members in good standing a way out. That was June of 2016, yet the company has yet to introduce the program. “Qualified” is the key word. Most members contacting Inside Timeshare have loans, and many allege they succumbed to high interest rate loans and credit cards after hours long aggressive sales presentations. A timeshare must be unencumbered to be eligible for any voluntary surrender program.

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

“Is Apollo Returning to its Junk Roots?” is the article Diamond found objectionable. Most remember the subprime mortgage crisis, but a decade earlier was the Drexel Burnham Lambert junk bond scandal that sent Michael Milken to jail for securities fraud. DBL founder and banker Leon Black filed bankruptcy on DBL only to reform and rebrand as Apollo Global Management, purchasing Diamond Resorts in 2016. If DBL liked junk bonds, which had some value, timeshare points that have no value the moment the contract is signed, should a buyer need to sell, must seem attractive.

Hurricanes and Timeshare

hurricane

One of the top complaints Inside Timeshare has received concerns upsells by timeshare sales agents on the US mainland selling against timeshare agents in Hawaii. This would be normal competition were it not for the fact the dueling agents work for the same company. Buyers tell us sales agents on the mainland side tell existing members they should not have purchased a Hawaii timeshare because of damages from hurricane Iniki that struck Hawaii on Kauai in 1992. They are encouraged to buy more points and transfer to US mainland points, despite Florida resorts included in their purchase. Obviously, Florida is at risk for hurricanes.

pam bondi 1      Ms. Bondi, please listen to us. The Arizona Attorney General has received over 900 timeshare complaints about Diamond Resorts:

http://insidetimeshare.com/arizona-attorney-generals-assurance-discontinuance/

Wyndham former timeshare sales agent Trish Williams was awarded $20 million by a jury concerning overly aggressive and predatory timeshare techniques:

https://www.nytimes.com/2016/11/25/business/my-soul-feels-taller-a-whistle-blowers-20-million-vindication.html?mcubz=0

Eric Schneiderman’s $6.5 million settlement with The Manhattan Club:

http://nypost.com/2017/08/17/new-york-ag-reaches-6-5m-settlement-with-manhattan-club/

In addition to member families,Charles Thomas at Inside Timeshare has heard from eight current and former timeshare sales agents alarmed at the escalation in predatory sales. The following comment made by a former experienced sales agent mirrors the others.

“I watched every day, agents selling DRI for double and close to triple what it was supposed to be sold for but management laughed and congratulated them for doing it.  The maintenance fees statement about buying more and using that to pay your maintenance fees was a practice that was encouraged, but be careful.  Some of the agents, who still work at DRI, would sell the program for $98k when it was only in the 50k range.  One of the guests came back to cancel but the agent said no worries, “I have it packed 40k but I’ll give then 15 off and still make a killing!”   This made me sick because these particular guests were in their late 70′ early 80’s.  I asked the agent if he had a conscience and he just laughed…if you can get them to pay more you’re a hero!!  They have the money!!

Deception actually goes back further than that.  We were told to pack the price for a trade in and imply that it was what they got back for their TS… we sold it for the regular price….they got nothing for their TS!”

(Charles Thomas, editors note: we have published on many occasions on the “stack and drop” tactic. This has been used for many years and we have seen it throughout Europe. It is used as a tool for upgrading or poaching other companies members. The consumer then believes they have had value for their other purchase).

It is our hope Diamond Resorts will listen and respond, along with Wyndham, Bluegreen and others, to improve timeshare sales today after the rise of “right to use” programs. In my opinion, such programs leave wide berth for misrepresentation and deceit.

The following are self-help Facebook pages representing over 1000 timeshare member families:

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

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

https://www.facebook.com/groups/180578055325962/

A few of the 144 families who have contacted Inside Timeshare:

Marsha, Ann and Marjorie

http://insidetimeshare.com/fridays-letter-america-18/

Bonita Hill

http://insidetimeshare.com/tuesday-review-clarity/

Eron Grant ARDA’s Code of Ethics

http://insidetimeshare.com/fridays-letter-america-14/

Irina Allen

http://insidetimeshare.com/monday-start-another-week/

Justin Morgan and Michael Nuwer June 30, 2017

http://insidetimeshare.com/fridays-letter-australia-no-read-correctly/

Alan Callner

http://insidetimeshare.com/wednesday-article-america/

Detective Lela Renea

http://insidetimeshare.com/fridays-letter-america-11/

David Franks Chapter 4

http://insidetimeshare.com/fridays-letter-america-15/

Karen Garello Secret Shopper June 22, 2017

http://insidetimeshare.com/works-industries-not-timeshare/

Romeo and Lily

http://insidetimeshare.com/fridays-letter-america-9/

Dr. Jeffries

http://insidetimeshare.com/fridays-letter-america-7/

Angela Johnson

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

Neina Orrillo

http://insidetimeshare.com/diamond-in-the-news-again/

Barclaycard and Member stories May 17 2917

http://insidetimeshare.com/timeshare-barlcaycard-us/

Marjorie Menacker

http://insidetimeshare.com/another-nightmare-timeshare-street-client-experience-diamond/

Eron Grant May 12, 2017

http://insidetimeshare.com/fridays-letter-america-4/

Barclays Bank Charles May 11, 2017

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

Nancy Callahan April 24, 2017

http://insidetimeshare.com/another-nightmare-timeshare-street/

A Filipino Family April 13, 2017

http://insidetimeshare.com/anatomy-timeshare-foreclosure/

Laurie Sabbagh March 17, 2017 Clarity Review

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

A Military Family March 6, 2017

http://insidetimeshare.com/consumer-protection-week-usa/

The Hurleys January 25, 2017

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

Irina Allen January 13, 2017

http://insidetimeshare.com/timeshare-news-across-atlantic/

Kathie Old December 6, 2016

http://insidetimeshare.com/call-change-us-timeshare-industry/

Wyndham Trish Williams $20 Million Whistleblower Jury Award December 5, 2017

http://insidetimeshare.com/wyndham-whistleblower-update/

The Peasant of Venice and the Queen of Versailles November 7, 2017

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

Sylvia Saldana and the Barclaycard October 25, 2016

http://insidetimeshare.com/irene-parker-write-barclay-card-usa/

Hug Your Haters! By author Jay Baer on the importance of Social Media

http://insidetimeshare.com/customer-service-message/

need you

Will anyone listen? Author Jay Baer is to be keynote speaker at the upcoming October Interval International Shared Ownership Investment Conference, attended by developers and private equity firms. In Hug Your Haters, Mr. Baer strongly urges companies to listen. Members are hopeful, but doubtful, developers will listen to him.

Thank you Irene and those that proof read your article and gave advice, timeshare is a crazy world, which is such a shame as it is a great idea, with many who have enjoyed it for many years. There are some very good developers and resorts, but the reputation of the industry is being spoilt by a few.

Have a great weekend.

weekend-picard

         

 

consumer alert

Litigious Abogados: Another New Name to Add to the Family

amador-galeca-300x191

Yesterday a new name to the ever growing Litigious Abogados family was named, Amador Galeca Abogados, the website was born on 18 July 2017, so is only two months old. Yet according to their website they have over 15 years presence on the net, and they claim to have been a law firm for over 25 years.

amador-malodan-galeca-243x300
Amador Malodan Galeca

http://amadorgaleca.com/

The owner registration details are privacy protected but the site is registered by GoDaddy.

https://www.whois.com/whois/amadorgaleca.com

The website is exactly the same as all the others that have come before, the only difference is in the photographs and names of the lawyers. This new website now shows some new faces with names that are either variations of previous ones or newly made up.

simono-maenga-arlovas
Simono Maenga Arlovas
manuel-pralge-namblib-300x300
Manuel Pralge Namblib
balthathar-hirmod-nisbelam-300x300
Balthathar Hirmod Nisbelam

The address they give on the website is very familiar as it has been used before, Calle de V. Sanz, N14, 16, 38002 Santa Cruz de Tenerife, (it is actually Calle de Valentin Sanz). Number 14 does have a plaque on the wall by the door for an Abogado, but it is not this one here. (We just wonder if this lawyer knows his address is being used).

They use a freephone number: 0800 802 1223 and the email address: galeca_ukclaims@consultant.com

We will hazard a guess here, but we suspect that the story is going to be along the lines of all the other members of this fake family, your timeshare company or resort is about to be taken to court, for a fee you can also be included in this case. We wonder if the Procurador, who will need to be paid, is one of those we have seen before, or whether a new name will be used, no doubt that will be answered within the next few weeks, as other readers contact us with new information.

If the past antics are anything to go by, within weeks of paying the money, the “client” will receive a fake copy of the court sentence, along with a photocopy of a Banesto cheque with the awarded amount printed with their name on it. (Remember Banesto has not existed since 2012).

Compensation_Cheque-page-001

There will also be an accompanying letter stating in English that the director of the company pleaded guilty to all charges, (anyone fancy a wager that it will be Keith Baker or Keith Balker). You will then be asked to pay 21% of the awarded amount as tax to have the cheque released, which will arrive by post. Only problem is that it will never arrive, the envelope will be open, a letter from the court will be there but no cheque.

Now we go to stage three of this very clever operation, you will receive from another company a letter stating they have been appointed by the court, they are to investigate a Romanian gang who stole and cashed a cheque with your name on it. They will also pursue the bank to recover the money for you, you only have to pay them 10% of the cheque value. As we say this is a very clever ongoing sting. So far we don’t yet know what happens next, we have not come across anyone who has made it to stage four. But we do suspect that in order to get the money that has been recovered, another “TAX” will need to be paid.

These claims always sound fantastic, the amounts of money they promise you and in such a short space of time are designed to play on your emotions, then slowly drain away all your money before you realise what has happened.

Our only advice is if you are contacted by any company that tells you a case is about to go to court against your timeshare company or resort, then with a fee you can be included,

STOP, THINK AND DO YOUR HOMEWORK.

homework

If you are unsure how to check any company that makes these promises, or just need confirmation, contact Inside Timeshare and we will point you in the right direction.

Join us tomorrow for another Friday’s Letter from America with Irene Parker, along with some news from Europe that is just breaking.

Follow the links for the whole Litigious Abogados story.

http://insidetimeshare.com/a-narrow-escape/

http://insidetimeshare.com/go-abel-garcia-law-firm-always-wins/

http://insidetimeshare.com/litigipus-abogados-family-gets-bigger/

http://insidetimeshare.com/litigious-abogados-showing-charity/

http://insidetimeshare.com/abogados-abel-garcia-new-member-litigious-abogados-family/

http://insidetimeshare.com/litigious-abogados-plot-gets-thicker/

http://insidetimeshare.com/news-litigious-abogados/

http://insidetimeshare.com/litigious-abogados-new-update/

http://insidetimeshare.com/litigious-abogados-plot-thickens/

http://insidetimeshare.com/litigious-abogados-latest-information/

http://insidetimeshare.com/litigious-abogados-update/

http://insidetimeshare.com/1059-2/

 

midweek

The Mid Week Slot: Another New Name along with an Article by Michael Kosor

During our usual morning search of various websites and forums, we came across this from Mindtimeshare, it is our old friends Litigious Abogados with a new name to add to their ever increasing family.

amador-galeca-300x191

Amador Galeca is the new name to look out for, the address is one that has been used before with one of their other incarnations:

Calle de V. Sanz, N14, 16, 38002, Santa Cruz De Tenerife

With the freephone number: 0800 802 1223

Email: galeca_ukclaims@consultant.com

Website: http://amadorgaleca.com/

They also have some new names, which are variations of those that have been used before, and what looks like a few new faces in the photographs of the “lawyers”.

amador-malodan-galeca-243x300
Amador Malodan Galeca

Once again it is going to be the same old story, we are taking your timeshare company to court, it is scheduled for trial within the next few weeks, pay ex-amount and be part of it. Then suddenly you are told you won, as the director, (we’ll bet it is Keith Baker or Keith Balker again) has pleaded guilty.

We will be publishing a fuller post on this when we have done a little more research.

On the subject of legal action against timeshare companies, those lawyers at Canarian Legal Alliance have once again got another result from the Supreme Court. That now makes 58!!

This one from reports is against Silverpoint, with the court declaring the contract null and void with the return of over £63,000 plus legal interest and legal fees. They also had another win against Silverpoint at the Court of First Instance in Tenerife. Again the contract was declared null and void and the return of over £59,000.

So now on with the article which was supposed to have been published in last Friday’s Letter from America.

Timeshare and Asset-Backed Security Products

cash

By Michael Kosor

September 20, 2017

There has been an increase in defaults for some timeshare companies concerning timeshare loans packaged in their Asset-Backed Securities (ABS) products. The average consumer will recall the devastation its sister security, the Mortgage-Backed Securities (MBS), created that triggered financial collapse. Consumers and regulators should pay attention to the timeshare product today so similar to the products of 2007 that led to financial devastation.

I believe this is clearly and directly related to the increase in litigation by these particular developers, targeting consumer advocates and the legal community. While there definitely are attorneys practicing questionable business practices, “Kill all the lawyers” is not the answer. Every citizen has a right to legal representation if they feel they have purchased a product sold by deceit.

Developers are rightly hypersensitive to any bad press that points to increases in loan defaults as they are sure to negatively impact ABS rating/pricing. The ABS product and the associated market are by nature complicated, not part of our public market system, so limited to sophisticated players. As such, it is not a part of mainstream news. To that end, watch a very short video published by Allison Bisbey, Editorial Director, Capital Markets Newsletter.  

https://asreport.americanbanker.com/video/diamond-resorts-abs-under-pressure-from-companys-sales-tactics

Some developers are experiencing an elevated level of defaults. In the case of Diamond Resorts, it has reached a point the rating agency for DRI, KBRA (Kroll Bond Rating Agency) recently saw fit to issue a note on the issue, albeit not surprisingly, a reaffirmation of KBRA’s original rating.

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

A timeshare ABS is a security whose income payments, and hence value, is derived from and collateralized or “backed” by a pool of underlying assets. Contrary to popular opinion, “hard” assets do not serve as the primary collateral – only the contractual obligation to pay. However, hard assets do provide secondary security and impact overall price/return.  

Today, the vast majority of timeshare loans are not backed by any real property interest. Timeshare ABSs sold today are little more than securitized consumer loans. Yet when I talked to the Moody analysts just a couple weeks ago about their most recent Wyndham ABS rating, they stated they use criteria established in 2003 – when a timeshare loan was typically still attached to a real estate interest.

In rating an ABS, comparisons with historical loan default rates are critical. Timeshare ABSs, notably a different underlying product than the one packaged today, report very limited/zero defaults.  This is not because the consumer default rate is or was low – to the contrary. Rather, DRI (not unlike Wyndham) uses ABS structure options allowing them to repurchase or substitute all of its defaulted loans. As a result, the ABS reports defaults as 0% while actual consumer defaults are much higher. (Note a 6% – 8% default rate for “aged” loans is informally used, if any pre-option rate is reported or available at all). Aged loans have a proven repayment history of 6 months or more. The “aged” number does not include what is certainly a much higher total consumer default percentage of timeshare loans when early defaults are included.  

The repurchase and substitution option in an ABS is typically capped at around 15% of the total. More importantly, the rating agency should not (but appear to nonetheless) give credit to the option to repurchase or substitute defaulted loans. Gross loss expectations are increasing also. It is reported in the investor literature as 11 – 12% in prior years to 13-14% today; dangerously close to underwriting limits.  

Wyndham and DRI would like its debt investors to believe the increase in defaults is due to an uncharacteristically high number of borrowers being solicited by lawyers and “scammers” offering to get consumers out of their timeshare. Thus, we see the rise in Cease and Desist letters and litigation targeting consumer “friendly” legal providers.

What is more, ABS investors, thus the developers selling timeshare ABSs, are hypersensitive to cash flow. Admittedly a bit desensitized since 2007, they will nonetheless respond when issues or news challenge a specific ABS or a class of ABS, such as timeshares.

Timeshare regulators (assuming any exist and/or pay attention) also need to be reminded that in 2007 investors experienced losses because they made decisions on bogus ratings, guarantees from mono-line insurers, and a blind faith in historically real-estate prices.  Simplistically, people ignored the quality of the contractual cash flow, relying instead on history (home price appreciation in the case of the MBS). This sounds analogous to timeshares today.  

With the rise in Social Media, timeshare members are more and more expressing increased owner unrest, disturbed by a rise in consumer complaints, as evidenced by Mark Brnovich’s issuance of Diamond’s Assurance of Discontinuance AOD fueled by over 900 consumer complaints. Is anyone paying attention?

I spoke to a Wyndham executive last month at my VOAs annual meeting. He saw this issue as a problem caused by lawyers seeking timeshare members and a major problem. With an aging population of original buyers who no longer want or need their timeshare, many don’t know where to turn when there is no secondary market and the contract is perpetual.

On a similar line, most all ABS, to include timeshares, are supported by significant “credit enhancements” to protect the investors from higher than anticipated (historical) default rates. Overcollateralization (issuing less debt than total assets held) is a particularly valued credit enhancement technique used. However, overcollateralization becomes tricky, even suspect, when the assets held by the seller have no explicit face amount/market established price as with the non-viable timeshares resale market. My impression is most agency raters, while sophisticated financial types, are not educated on the underlying change of the timeshare product pool being securitized, as most are reliant on the developers for their information and understanding.

Finally, as I noted earlier, reported default rates are zero. As a result, most rating agencies, I argue to retain clients, and many investors, dependent on industry reporting, do not dig any deeper. Both sides see no news as good news – once again analogous to the 2007 mortgage back securities fiasco. This needs to change.

risk1

Thank you Michael, not being of a financial mind, the article has been a bit of an education, I just didn’t know these things went on.

There we have it, look out for the article on Amador Galeca, more important beware of any calls or emails promising that you have money waiting for you. The truth is you haven’t, all they want is your money, so stay safe, keep your money in the bank and do your homework before parting with it.
homework kid

consumer alert

More Calls Regarding Fake Claims

Further to our articles of 11 and 15 September, regarding Bias Claims Services and  along with calls from HMRC holding money from the Spanish courts in respect of compensation for past frauds, there has been another new twist.  This time it is Barratt Consulting Services SL and a call from the Bank of Spain.

In this call to one of our readers, a lady called Caroline Reid claims to be an Adjudicator from the Bank of Spain, with a strong Scottish accent she explains that our reader is due over £25,000 from previous sales of holiday club memberships. This actually amused our reader as he only ever paid around £3000 in the first place.

bank of spain
Bank of Spain Madrid

He was given several options on how to retrieve the money, they all involved a Spanish lawyer and translator, he could however go to Spain himself or allow their legal contacts to do the work on his behalf. This would obviously incur costs, there would be a charge for the notary and also for the bank. Costs would average around £8000 for the lawyer and translator then around £2,500 for the bank.

This would need to be paid with an initial £2,500 with the balance to be paid 10 days later. Once this is done he would receive his money within 1 month. Now that is very speedy! Caroline also stated that their legal contacts worked in the same building (very convenient), but she would have to find out when they were available as they were very busy at the moment. I’ll bet they are!

Once our reader agreed to this, she would ask her legal people to give him a call, when asking about how payments were to be made her response was, there would be a few more calls before they reached that stage. Very vague indeed.

When our reader declined and would not be taking up the offer, apparently her manner changed abruptly, becoming more insistent, that he was missing a great opportunity. She also gave him various examples of other people, one of which had received over £70,000.

When our reader still declined the offer, Caroline told him had would have to sign a disclaimer and return it to the bank. She told him she would ask the bank to send it to his home address, it arrived that day via email. The disclaimer was not from the Bank of Spain, but from Barratt Consulting Services SL.

The address on the letter for Barrat is: Bulevar Louis Pasteur, 5, 29010 Málaga, which when checking google maps is a large apartment / office block in Malaga, just out of interest right around the corner from the main CourtHouse.

They also give the following telephone number and email address:

0034 951 203 041

info4barrat@consultant.com

So far we have not traced any company registered with that name in Spain, we have not even found a website for them.

inconsistent

There are several inconsistencies in the story that Caroline gives, firstly that she is an Adjudicator from the Bank of Spain, well we have never heard of the Bank of Spain calling timeshare or holiday club clients in the UK, also we cannot believe that the Bank of Spain would be employing a lady from Scotland in such an important position.

The speed of which the payments need to be made and the very speedy way in which the bank would payout, within 1 month!

Also would not the Bank of Spain be talking in Euros and not Pounds Sterling!

money

Inside Timeshare is in contact with several lawyers dealing with timeshare claims and none of these have ever heard of anything like this before. They have also reiterated that the Bank of Spain do not make calls or would be dealing with any matter such as this.

 

If you have not yourself instigated legal proceedings against any company you have dealt with, then the call to tell you that HMRC, Bank of Spain or any court is holding money for you, is not true. None of these bodies would contact you in such a manner, so once again if it sounds too good to be true then it is not true, so do not be blinded by the huge sums they say is waiting for you.

This once again shows how important it is for you to do your due diligence and check any claim that any company makes which contacts you. If you need any help or advice on how to do this contact Inside Timeshare and we will help you through it.

homework

letter from america

Friday’s Letter from America

This week’s Friday’s Letter from America is not the one we originally planned from Michael Kosor, this will be published in due course.

First a little news from Europe, only last week we told of the calls from HMRC informing people that they have money from the Spanish courts, one reader has sent us this information.

They were called by a Kipp Stuart from HMRC Accounting, this was with reference to a ruling at the Malaga courts, Kipp informed them that they were holding over £22,000 on their behalf, unfortunately as there was no paperwork then the funds could not be released. They were given reference numbers along with the following telephone numbers:

08713 581033 to confirm with HMRC

0034 602489947 for the Malaga Court

Wonderful, only problem, the 08713 number is not used by HMRC and also carries rather hefty charges.

The 0034 number is a Spanish mobile number and no court will issue mobile numbers for confirmation.

As we published before

HMRC DO NOT CALL PEOPLE WITH NEWS THEY ARE HOLDING MONEY ISSUED BY THE SPANISH COURTS!

On the subject of courts, it has been a rather busy, that lot at CLA have announced six more wins. There have been five in Tenerife, four of these against Silverpoint, with one of the largest awards we have seen for sometime. In this case the client was awarded over 67,000€ including legal interest and second instance legal fees with the contract being declared null & void.

The other case involved European Coast & sun Holidays SL, the judge of the Court of First Instance declared the client’s contract null & void, along with the return of over 15,000€, then as a double whammy he also ordered back payment of over 16,000€  double the deposit paid.

Then in Fuengirola at the High Court the judges reaffirmed a sentence from the Court of First Instance against Petchey Leisure, by awarding over 14,000€ plus interest and legal fees.

Back to Gran Canaria and the Court of First Instance in Maspalomas once again declared an Anfi contract null & void with the return of 21,000€ plus legal interest.

These are just some of the cases announced this week, it is certainly an expensive one for those companies.

Now on with this week’s letter.

The Deep, Dark, Dank, Obscured From View, But Very Lucrative Timeshare Developer Revenue Stream: Are Its Days Numbered?

money tree

By Mike Finn, Finn Law Group

Originally published by Inside the Gate

https://www.finnlawgroup.com/learning-center/timeshare-developer-revenue-stream-days-numbered

Clarifications in blue added by Irene Parker for non-legal minds (like mine)

September 14, 2017

We as consumers, with a certain level of understanding of business, probably attribute the lion’s share of timeshare resort revenue to two central factors: timeshare sales and timeshare rentals. As it turns out, there is a third major revenue stream that’s related to sales, but is an entirely separate source of revenue, and it’s a significant one. Depending on the nature of the initial purchase, whether it was a deeded interest, or more commonly over the past fifteen years or so, a “right to use” amalgamation of points, this shrouded revenue source may indeed also be in violation of certain state consumer rights statutes, including the Uniform Commercial Code.

I’m speaking to the universally accepted resort practice of the resort retaining every dollar received from a defaulting purchaser, even if the entire purchase price or an amount close to the total was paid over to the resort prior to the owner’s default. This would include a cessation of paying the purchase price, maintenance fees or capital assessments.

It’s not considered relevant, at least if one believes the purchase contract, to factor in the sometimes quite significant amount paid in up to the moment of default, in terms of any form of accounting back to the sum of money paid by the defaulting purchaser. It’s all retained by the resort pursuant to the purchase contract, as “liquidated damages”.

In other words, an unwitting purchaser could have paid in say $18,000 of his/her $20,000 purchase price (not to mention the additional payments of interest and annual maintenance fees), defaulted for any number of reasons and still be pursued by the resort as a debtor for the unpaid balance! Well, isn’t that appropriate, you may retort! After all, the purchaser has defaulted on a perfectly legal (on its face) promissory note obligation of $20,000 when only $18,000 has been paid? Well maybe, but let’s examine what happens next.

Foreclosure of real property and disposition of personal property are governed by different bodies of law. Real property foreclosure sale varies dramatically among the states. Personal property disposition is governed by each state’s versions of Article Nine commercially reasonable disposition.

I found this explanation of the difference in real property foreclosure compared to personal property distribution in Texas helpful:

Texas Real Property Foreclosure

Section 51.002, et seq. of the Texas Property Code defines the minimum statutory procedure that must be satisfied to properly foreclose upon real property. In addition to the minimum statutory requirements, the deed of trust executed by the debtor-mortgagor details the agreed contractual terms and conditions for foreclosure of real property.

Personal Property Disposition in Texas

Article Nine of the Texas Business and Commerce Code defines the minimum statutory procedures that must be satisfied to foreclose upon personal property. In addition to the Article Nine requirements, the security agreement executed by the debtor-mortgagor defines the contractual terms and conditions for foreclosure of personal property. Generally, personal property disposition must be commercially reasonable.

Commercially reasonable is the key concept here. We can all relate to selling a car. According to NOLO, there is no hard and fast rule on what “commercially reasonable” means. What is commercially reasonable depends on a number of factors.

The procedure, not the price, ultimately determines whether the sale is commercially reasonable. Whether a sale is commercially reasonable depends on four factors, the:

  • manner
  • time
  • place
  • terms of the sale.

Perhaps Mike’s concern as it pertains to timeshare foreclosure being commercially reasonable, as it applies to car sales, also applies to timeshare.

“There are times, however, when a private or “dealer only” sale may not be commercially reasonable”, such as in the following instances provided by NOLO. Two of the six points they mention seem to apply to timeshare:

  • the creditor has the ability to sell the car on the retail market
  • the creditor buys back the vehicle then resells it a significantly higher price.

What If I Believe the Sale Was Not Commercially Reasonable?

If you can demonstrate that the creditor did not sell your car in a commercially reasonable manner, you can raise that as a defense against any lawsuit brought by a creditor looking to collect on the deficiency balance. In some instances, if you can prove the sale was not commercially reasonable, the court may reduce or even eliminate your obligation on the deficiency balance.

http://www.nolo.com/legal-encyclopedia/car-repo-sale-was-commercially-reasonable.html

Back to Texas

Comparison of Texas Foreclosure Procedures for Real property and Personal Property

Real property and personal property foreclosures are dramatically different. Real property foreclosures are conducted on the first Tuesday of each month between the hours of 10:00 a.m. and 4:00 p.m. at the courthouse door in the county in which the real property is located, with a notice posted at the courthouse door, personal notice to the debtor, and filing of the notice with the county clerk, all 21 days before the foreclosure sale. These requirements are defined by § 52.001 of the Property Code and are unique to Texas law. Personal property foreclosures are conducted under § 9.504 of the Texas Business and Commerce Code, which generally requires a commercially reasonable sale. The requirements of Article Nine of the Texas Business and Commerce Code are followed, with some minor variations, by all states except Louisiana.

Thus, real property foreclosures in Texas are very defined and structured procedures unique to Texas law which do not require the sale to be commercially reasonable. On the other hand, personal property foreclosure sales are not structured by statute, but they must be commercially reasonable as to every aspect of the disposition, including method, manner, time, place, and terms. The apparent conclusion is that although the legislature has specifically defined the procedures that must be followed to dispose of real property, personal property may be disposed of in any manner the secured party elects, as long as the sale is in all respects commercially reasonable.

The differences between real and personal property foreclosure procedures and requirements have had interesting effects upon lenders and borrowers. The notice provisions for real property foreclosures mandate procedures known to both the lender and the borrower. The procedures provide certainty as to the mechanics of the sale. Both lender and borrower are offered an opportunity to dispose of property, with each fully understanding when, where, and how the sale or purchase will occur.

In contrast, the nebulous standard of a commercially reasonable sale leaves both the lender and the borrower uncertain as to the ultimate and satisfactory sale or purchase procedure for personal property. Article Nine attempts to place the burden on the secured lender seeking a deficiency to sell in a commercially reasonable manner, whatever that may be in the particular circumstances found by the lender. Likewise, the debtor has no knowledge of how the lender will proceed with foreclosure and has the burden of proof, if attacking the sale, to show that the sale was not commercially reasonable. The more certain real property foreclosure procedures seem to work more effectively for both the lender and the borrower.

http://www.lenders360blog.com/2008/10/real-estate-foreclosure-vs-ucc-personal-property-commercially-reasonable-disposition/

Commercially reasonable according to Cornell Law School: A disposition of collateral is made in a commercially reasonable manner if the disposition is made:

(1) In the usual manner on any recognized market;

(2) At the price current in any recognized market at the time of the disposition; or

Wait a minute here!

face

“At the price current in any recognized market at the time of disposition” means my Diamond Resorts points should be sold for nothing. Not one of the 64 members of the Licensed Timeshare Resale Broker Association will even accept a DRI listing and even Howard Nusbaum, CEO of the timeshare lobby ARDA, has been quoted as saying modern timeshare is a right to use product so the member should not expect any value back. I think Mike really is onto something!  

Other timeshare companies may argue that they do have a secondary market, but even those fortunate to be able to sell their timeshare, frequently sell them for pennies on the dollar of their original investment.

(3) Otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.

https://www.law.cornell.edu/ucc/9/9-627

Now on the edge of my seat, we continue with Mike’s narration:

In our original example, is the developer out the missing $2,000?  Ask what happened to the object of the $20,000 purchase? Well look at that, the actual property never, even for a moment, left the possession of the developer! My goodness, the developer just re-sold the interest to another brand-new buyer for a fresh new $20,000! So now are you still comfortable with the original purchaser being pursued for the missing $2,000? Perhaps sued, almost definitely having derogatory credit reporting, not to mention harassment from bill collectors? So what exactly happened to the first purchaser’s $18,000 paid to the resort? Is any of it accounted for with maybe a portion returned to the guy who ended up with nothing except perhaps a lawsuit?

Not a chance in Hades! The so-called ‘extra revenue stream’ is now actually an extension of the existing stream to the developer from sales, and sales, and maybe still more sales. How many times can the same unit interest (or bloc of points) be resold over the life of the project?

The distinction (and thus a portion of the reason for my overly dramatic title) is that typically sales revenue in say a condominium project is recorded once, and the revenue is, of course, offset by the cost of acquisition of land, construction costs, marketing costs, etc. and the net amount remaining after those costs is the developer’s profit. However, in the case of the timeshare developer, the original buyer covered those costs in their initial transaction, therefore the new additional piggy-back to back transactions didn’t come with any more land acquisition or construction costs, and therefore essentially came only with very little new or fresh costs of sale beyond the re-marketing costs.

light bulb

Well wait, you might say, this can’t be right! You sure this practice is universal? Yes? Well then, are you sure this unconscionable practice is even legal? Good question, and one wherein the answer to that question may be evolving and it’s not necessarily the laws in place that are changing, it’s the timeshare product changeover, the newer form of the property that is being marketed by the developer that is creating a change in which already existing laws are now perhaps becoming relevant to the timeshare purchase, and by doing so may be enforced by the previously out of luck defaulting purchaser. In fact, it may well be that the same old existing law pendulum may be swinging back in favor of the consumer!

I reference the fact that over the past decade plus a few years, there has been a change in the product that the timeshare industry is selling. Just after the turn of the century, the industry has backed off of selling of the deeded weekly timeshare product, which was indisputably a real estate product, in favor of a product they tout as being more user flexible: a product called a “right to use” product. Setting aside the differences in the actual ability to use the two very different types of timeshare “ownership,” the focus of this article is on the migration of the timeshare product from a real estate based product, morphing into what we attorneys refer to as “personalty”.

In our lawyer’s world, everything not legally defined as real estate is personalty (the only other option in the law). Presumably a ‘right to use’ timeshare product (points based) is not considered by the law as real estate, (if it no longer possesses any attributes of real estate and therefore as ‘personalty’, is subject to differing state laws particularly including the universally adopted, in some form in every state, Uniform Commercial Code).

Additionally, state laws regulating the real estate within its boundaries, do vary from state to state. Personalty, however, is a commodity of a different color. The Uniform Commercial Code (UCC), as its title suggests, is nearly uniform in its textual content, and from an applicability standpoint, every state in the Union has adopted, with minimum exceptions not applicable to this article, a version of the UCC almost identical with its neighboring states. In other words, as we discuss the law of personality (again, all that is not deemed real estate) we can speak to it across the board. These laws apply everywhere within the USA.

As a Florida lawyer, you may have seen other articles where I either cite specific Florida statutes or have issued a cautionary statement that the principles I was espousing may not apply in other jurisdictions. Contrast this article where I do not constrain my statements. Also, rather than cite state specific portions of the UCC, I, in places, simply refer to Articles within the UCC and in others the ‘pure code provision’.

Further, this article is not intended for an audience of lawyers or jurists. It’s intended for consumers to get a grasp of a relatively new set of laws, including the Uniform Commercial Code, that now may begin to play a much greater role in the laws governing timeshare projects and correspondingly, the developers who operate these projects.

I would like to ask Mike at this point about another universally accepted practice – advising borrowers to go home after purchasing their dream vacation plan and arrange financing with their bank or credit union. Perhaps it’s the subject of another article, but the majority of complaints received by Inside Timeshare say their sales agent advised them to seek a home equity loan to lower timeshares usury type timeshare lending rates. Many have done just that. My husband and I were told we could get lower rate financing, “No one should finance at our rates,” warned Donna. (Grand Beach, FL July 2015) I guess buyers that follow that advice are just out of luck, like Sylvia Saldana, now stuck with a $30,000 home equity loan after Diamond Resorts “took back” $60,000 worth of timeshare points. To make matters worse, Sylvia said she was aggressively encouraged to open Barclaycards, told buying more points would lower their maintenance fees. Had she succumbed to that suggestion, Sylvia and her husband would have lost even more money.

http://insidetimeshare.com/irene-parker-write-barclay-card-usa/

Back to Mike

Consumer rights may also get a major boost by the applicability of the UCC as well, since, to the extent that a contract provision contradicts an applicable statute, that contractual provision will be rendered null and void.

So, for example take the typical contractual provision that, “all monies paid will be retained by the developer as ‘liquidated damages.’’’ Essentially, the amount of damages fixed must be reasonable ‘in light of actual or anticipated harm’ and a term fixing an ‘unreasonably large amount’ is void as a penalty.

Therefore taking a contract, say with a 10% down payment and then adding subsequent monthly payments, the sum total could easily become ‘unreasonably large’, particularly in light of the quick turnaround on the “use rights” for which there has been a default, assuming which I think is fair with on-site sales team (ARDA’s Mr. Nusbaum calls them forever sales centers), that the interest will be promptly re-sold.

Another example of a UCC provision that may well change the way defaulted buyers are treated is as follows. The included reference to the specific UCC provision is the actual textbook unadulterated Code provision number, and may well differ from numbered state specific statutes. The developer or secured party is under a duty to notify debtors of the disposition of collateral under UCC Section 9-611. Further, the disposition must be done in a commercially reasonable manner.

Of particular importance, the secured party/lender is required to apply proceeds of any disposition to the underlying debt once expenses have been taken.

Is this where we end up with money back to the debtor? Can we go back to our original example?

I paid $20,000 and default at $18,000. For sake of discussion I am current on maintenance fees (which is probably not the case). The developer sells to the next hamster my forfeited points for $20,000. I am relieved of the $2,000 still owed, but if the developer sells for $23,000, I will be relieved of the $2,000 owed plus get $3,000 from the surplus amount? This next sentence sounds like the answer?

Also of notable significance is the duty of the secured party to pay the debtor any surplus which results from the disposition of collateral.

Additionally, the secured party/developer is liable for any damages caused by its failure to comply with Article 9.

In summary, a new day in the life of an unhappy timeshare owner is dawning. Existing laws never before applied to timeshare purchases may well now apply and particularly those timeshare interests that are non-real estate based like the ‘right to use’ interests that are now the mainstream of the timeshare community! Stay tuned for future developments on our website as we begin to apply the theories and applicable state statutes referenced hereinabove.

Respectfully submitted,

Michael D. Finn, Esq.

www.finnlawgroup.com

michaeldfinn@finnlawgroup.com

work desk

Whew! That was exhausting. It’s a good thing we have legal eagles to figure these things out because Charles Thomas and I get pretty depressed at times listening to “Nightmare on Timeshare Street” stories. We have heard enough to fund a series. The question I am most frequently asked is, “How can they sleep at night?”

Thank you to Mike Finn for the chance to publish this and also to Irene to add her clarifications for those without legal minds.

It now only remains to say be careful who you do business with, check and check again, if you need help, then contact Inside Timeshare. Have a good weekend.

weekend02

hand up

The Tuesday Slot: Giving You a Helping Hand

For many people it can be a daunting task to prepare a complaint against a large company, how is it written, who do you file it with? These are all questions that need to be answered.

In Europe the matter of making a complaint against a timeshare company has actually become easier, especially in Spain, where the laws are on the side of the consumer. But trying to deal with a company that has for the most part tied you up in contracts and legal jargon, has resulted in many complaints by consumers just being put aside with the feeling what is the point?

In today’s article Irene shows how to write the complaint and who to file it with, the most important point is don’t let it get you down there is always help out there. So on with the advice.

How to File a Timeshare Complaint

complaints

By Irene Parker

September 12, 2017

After Inside Timeshare received 135 US timeshare complaints (as of September 8, 2017), this guide evolved to use as a blueprint to file a complaint. Previously, we published an article called “The 3Rs or F of Timeshare” because no one should have to own anything in perpetuity if they can no longer use or afford the product.

http://insidetimeshare.com/part-ii-three-rs-timeshare/

How to File a Timeshare Complaint

  1. Name (s) and age of member
  2. Phone Number
  3. State of Residence
  4. Number of points owned per contract
  5. Member Number
  6. Loan Number  
  7. Current Maintenance Fees
  8. Total purchase price per contract
  9. Location purchased
  10. Sales agent and sales agent ID Number if available
  11. Original Loan Amount, Loan Number and stated interest rate
  12. Current Loan Balance
  13. What do you want? Do you seek Refund or Relinquishment?
  14. Why? Is it due to Deception, Health, Age or Financial Burden?

If your investment is $40,000 or less and you owned and used your timeshare for ten years or more consider relinquishment.

Availability:  Dissatisfied in general with availability complaints will go unheeded.

MOST IMPORTANT – Purchase Timeline

It is better to state your narrative as a narrative referring back to the contracts and figures at the top of your complaint. Begin with when you first became involved with the company and proceed chronologically. Keep your history brief up to the point when things began to go wrong.

The most common complaint is bait and switch. If you feel you were deceived list the reasons why.

who what

How Advocacy Works

Email Inside Timeshare your complaint if you would like to talk to someone about your concerns. Before you begin, raise your right hand. Do you promise to tell the truth, the whole truth, and nothing but the truth, so help you God? It is important to present your information factually and without opinion.

Consider becoming a volunteer report writer if you have reporting experience.

If you have questions, email Irene Parker – ireneparker377@gmail.com

Cell – 270-303-7572 EST – Feel free to call any day of the week between 1 to 5:00 PM EST or if you are unable to prepare your own report.

We are not attorneys and we do not provide legal advice. We have researched regulatory agencies and are here to direct consumers to the appropriate regulatory agencies. Agencies are listed below. We have also developed media relationships and will continue to work with broadcast and print media to alert the general public as to what questions to ask before buying a timeshare. Life events, like a hurricane, can change your life in an instant or a day. If your timeshare provides no secondary market, it can make a member feel a hostage to their vacation plan. Contact a member of the Licensed Timeshare Resale Broker Association to find out whether your timeshare has a secondary market.

http://www.licensedtimeshareresalebrokers.org/

After you complete your complaint email it to the appropriate resort department. Expect to be denied. Typically your resort reviewer will restate your concerns, conduct an investigation and report back that the sales agent (s) denied your claims. It’s a negotiation so if denied, file a rebuttal.

deneid

If you feel you are a victim of deceit and bait and switch, send us a copy of your complaint. An Advocate will file your complaint on your behalf with the firm’s public relations office and ARDA, the timeshare lobby, for violating ARDA’s Code of Ethics which can be found on ARDA’s website. We do not recommend owners make the voluntary opt in or opt out contribution on your maintenance fee invoice for ARDA ROC (Resort Owners Coalition). ARDA is basically a PAC that lobbies for the industry when the issue is one that is at odds with members. We will also include NTOA National Timeshare Owners Association and the bank that financed your loan or issued a credit card. By having the Advocate file on your behalf, we can track complaints, documenting a pattern of criminal behavior.

Mark your email urgent if you are in financial distress. It is best to file a complaint before the debt collectors are hounding. It may take up to 30 days to hear back from the resort. Resend in three weeks if you have not heard back. If you feel you were a victim of deceit and bait and switch, give the resort a week to respond before filing regulatory complaints.

The member will report back to us with a positive or negative outcome. Due to the required non-disclosure or mutual release form, terms and conditions will not be discussed. Just report a positive outcome or resolution.

If your resort denies your claim begin filing complaints with regulatory and law enforcement agencies beginning with the Attorneys General of the state where you signed your contract, where you live and where your resort is domiciled. It can take a month or more to hear back from an AG but once your complaint has been accepted, debt collectors are not allowed to call. You can find any Attorney General by searching the state and Attorney General.

office of ag

If there was an unauthorized credit card charge or you feel you were deceived into signing off on a loan, you should file with the Consumer Financial Protection Bureau under the mortgage option (even if no mortgage) and select the bank that financed your loan or issued a credit card. One common complaint is that the buyer was told they could get a lower interest rate from a bank or credit union. File with the CFPB only if there is a loan outstanding or a credit card was used.

You should file a complaint with the state Real Estate Division in the state where the agent is licensed if your complaint is against a sales agent. The Advocate can help you if you don’t know the agent ID number. Timeshare sales agents are real estate licensed in most states.

File with the Better Business Bureau, although the company’s BBB rating can be misleading in that the BBB only rates how efficiently a company responds to complaints.

The definition of Financial Institution Fraud under the FBI’s definition of White Collar Crime is “deceit, concealment, violation of trust and bait and switch”. The FBI assigns Financial Institution Fraud the highest priority. You can read about White Collar Crime on the FBI website, but complaints are filed at IC3.gov. This is somewhat confusing because IC stands for Internet Crime and people think it has to be internet related. IC3.gov is just the name of the portal.

fbi

 

Most important, consider reaching out to local or national media. Reporters look for content and are surprisingly easy to reach. Write an article about your experience. The more people who come forward, the more the public is made aware of pitfalls before engaging in a timeshare sales presentation.

Our “Chicken Soup for Timeshare’s Soul” Inside Timeshare article is linked at the end of this article explaining what to expect or not expect when you file with a regulatory or law enforcement agency.

Summary of Regulatory and Law Enforcement Agencies

  • Attorneys General where you signed, where you live and where the resort is domiciled. Search (state name) Attorney General for contact information. Most AG complaints can be filed online.
  • The Real Estate Division of the state where the agent is licensed if your complaint is against the agent. “Right-to- use” membership programs are not defined as real estate, but the agent is typically a licensed real estate agent.
  • The FBI under the IC3.gov portal if deceit or bait and switch.
  • ARDA if you feel ARDA’s code of ethics has been violated.
  • The media – the court of public opinion is often the only court available. Inside Timeshare, published in Spain, publishes timeshare articles online focusing primarily on the need for reform and oversight.
  • The Consumer Financial Protection Bureau under the mortgage option selecting the bank that issued the travel credit card or financed your loan.
  • The Federal Trade Commission – due to lack of secondary market
  • The Better Business Bureau
  • Lawmakers – The problem is the timeshare buyer typically does not buy in their state of residence which is why lawmakers don’t seem to take timeshare seriously. Still, any effort to contact lawmakers is encouraged.

If this sounds like a work, it is, but you can file with some, all, or none of the agencies. We feel “Action and Advocacy” is the way to change questionable timeshare business practices. Change requires volumes of complaints.

What to expect from regulatory agencies

http://insidetimeshare.com/chicken-soup-timeshares-soul/

Life without timeshare through “The 3Rs or F of Timeshare”

http://insidetimeshare.com/3-rs-timeshare-part-1/

If you are granted a positive outcome, you may not say or write anything disparaging about the resort, but there is no harm in staying involved. Reach out to others when you stay at resorts. Create a business card type flyer.

Who We Are and Why We Do This

working others

The timeshare industry is wealthy and powerful, able to influence politicians and Attorneys General. Timeshare owners typically are struggling with maintenance fees, unorganized and alone. Venting on complaint sites has no effect whatsoever.

There are a number of timeshare members and non-timeshare member advocates working behind the scenes to assist in the complaint process. If all else fails, we will refer to an attorney if the member can afford one. If you are forced into foreclosure, but have an otherwise unblemished credit report, you can write to the credit reporting agencies in an effort to explain why you were deceived and why you were not able to resolve your dispute.

After retiring from Edward Jones working as an Investment Representative, I worked three years as a CASA supervisor, writing and editing court reports for Family Court on behalf of foster children. I find two commonalities between children of abuse, neglect or dependency and deceptive timeshare sales.

  • The abnormal becomes the normal. After hearing 136 complaints (as of September 5), I fear deception is endorsed and encouraged by some timeshare companies. I have interviewed nine current and former timeshare sales agents and managers. They call it “pitching heat” or “No Heat, No Eat”. Of course not all sales agents are dishonest. We hear primarily from buyers seeking assistance when victimized by unscrupulous agents.
  • Victims are silenced and isolated via non-disclosure agreements. Non-disclosure is appropriate in the case of a settlement, but when a family receives nothing after an alleged bait and switch, after spending $5,000 to $500,000 or more on a vacation plan, not allowing the victim to say anything disparaging about the company seems harsh. Many of the families we have worked with are financially devastated.

There are many who use and enjoy their timeshare. My husband and I owned three timeshares for 25 years with no problems or complaints. After we attended a pathetically aggressive sales presentation in 2015, I began researching the industry, writing articles and assisting timeshare victims. I am not compensated by anyone. Our Advocacy Group is composed of volunteers. We hope there will come a day our Advocacy Group is not needed.

Self Help Groups

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

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

https://www.facebook.com/groups/180578055325962/

September 12, 2017 Irene Parker Timeshare Advocacy Group™  

Although this article is aimed at our American cousins, the principle of how it is written will be the same for Europe. If you believe your complaint is valid, don’t give up, that’s what they want you to do, be persistent, be strong and seek help, it is out there.

In Europe the EU has set up many consumer agencies, most EU countries have consumer rights groups and Consumer Affairs offices. In the UK there are several that you could use, one which has been very good in the past is the Trading Standards Office, these are set up by local councils and have a lot of clout. They have also been instrumental in having some rather shady companies closed down.

Then there is legal action, employing a law firm to take your case to court, in Spain over the past few years this has been very successful. Law 42/98 and the updated version Law 4/12, is based on the EU Timeshare Directives, which were put into place to protect consumers and regulate the industry. Spain now has the strongest timeshare regulations in Europe, these along with other civil consumer laws protect consumers from unfair practices and contracts. These have been strengthened over the past couple of years with around 57 rulings from the Supreme Court, Spain’s highest court, which has removed any doubt about their interpretation.

It now remains for other EU countries to do the same, so no matter where you purchase, the same protection is available. We may even just see a change in the industry for the better.

If you require any further information about this or any other article, contact Inside Timeshare and we will point you in the right direction.

Inside Timeshare also wants your stories,

good, bad or downright ugly,

so if you have something you would like to share or think will help others,

then

hear from you

 

  • 1
  • 2