Here we are again, another Friday and another letter from America, courtesy of Irene, following on from last week’s article.
Firstly the similarities between ARDA ROC and the RDO TATOC, both are industry trade bodies and owners organisations funded by the industry. Both require their members to abide by a code of ethics, but neither will arbitrate or investigate their own members. One difference is that ARDA ROC will not recommend any resale company, but RDO and TATOC will recommend any company that is one of its members.
Both bodies also actively focus on chasing scam and bogus companies, the RDO has employed kwikchex to head their Timeshare Taskforce. This company runs Timeshare Business Check, who contact businesses and question them for transparency, they list those who are not RDO or TATOC members, basically saying if they are not members or submit to their questions don’t touch them. They have no legal mandate and the owner has what can only be described as a very poor track record as a director. (see following link).
Only last week we announced and published the news that ARDA have donated $30,000 to TATOC and their Consumer Helpline, which received charitable status after initially being rejected. This donation was given because it is said they help and advise European Owners of US timeshares.
This is obviously a saving grace for TATOC as many of their members are withdrawing their membership or reducing their membership status, as was seen by Silverpoint dropping from Platinum to Silver.
Harry Taylor himself has been somewhat discredited over the Lakeview debacle, which has been going on for sometime. He has also been a very vociferous supporter of MacDonald Resorts and their forcing owners from fixed weeks into points. There is a class action ongoing by members who do not want the change as it then gives MacDonald’s “ownership” of the resorts and reduces members to “right of use only”.
This is happening in Spanish resorts, where we know that the points system is illegal, yet is still going ahead. MacDonald Resorts have a very bad reputation for the way they deal with members including the elderly. Yet they are main contributors to Harry Taylor and TATOC. Even the RDO have had nothing to do with them since 2005.
So we now move on to Irene’s article.
Part II: What is our Timeshare Advocacy Group Doing Today?
Part I: What is ARDA ROC Doing Today?
By Irene Parker
March 31, 2017
“What is ARDA ROC Doing Today?”
ARDA, the American Resort Development Association, is the national organization representing the timeshare industry. The ROC in ARDA ROC is the Resort Owners’ Coalition looking out for timeshare owners’ or members’ interest. Critics argue ARDA ROC works against timeshare owners when the interest of the owner and the developer diverge. It should be noted that non-deeded point members don’t “own” anything as they are right-to-use programs.
FAQ Timeshare Resale Questions found on ARDA ROC website
Can ARDA-ROC or ARDA help me?
ARDA provides professional and educational development for its members provides industry research and data and advocates for policies that promote the vitality and continued growth of the industry. Based in Washington, DC, ARDA is comprised of nearly 1,000 corporate members and one million timeshare owner members.
Question: How many readers knew they were a member? Donations range from $3 to $10 as an opt-in or opt-out donation. That adds up to approximately $5 million a year in voluntary donations. How many timeshare members even know what the letters stand for? I didn’t. I was told it was an organization that helps timeshare owners. Foreign buyers who buy a US timeshare are also charged. How much do you think they know about ARDA ROC?
More from ARDA ROC FAQ
Neither ARDA-ROC nor ARDA provide information about complaints they receive. ARDA-ROC and ARDA do not mediate, arbitrate or otherwise resolve individual disputes between a consumer and an ARDA member or non-member business. They don’t buy or sell timeshares OR recommend companies with whom you should do business. Neither can tell you if a company is “legitimate.”
ARDA does not have any regulatory authority, although they do require member companies to agree to abide by their Code of Ethics. Failure to do so may result in expulsion of the company from membership.
Timeshare owners, often unaware they have signed a perpetual contract without a secondary market, consider the lack of a secondary their primary concern. ARDA has focused their efforts on chasing timeshare transfer agent scams, but little is mentioned about the cause of the scams, which is the lack of or limited secondary market.
Thank you to Disney because Disney does allow a secondary market. “Disney is known for exercising their first right of refusal. When a timeshare company exercises their first right of refusal, the effect supports the resale price,” explained Tom Tubbs of Island Consulting Realty. Check out those Disney resale prices. Is your timeshare on the resale list below?
Deeded weeks can almost always be listed. If a resort has converted from weeks to points, non-deeded points with no secondary market will not be listed as the members of the Licensed Timeshare Resale Broker Association feel such points are worthless on the secondary market. If denied a voluntary surrender, a seller in this situation has nowhere to turn but foreclosure or the well reported transfer agencies that may or may not get you out of your timeshare.
Tom is a LTRBA member. I’ve gotten to know quite a few of the members and respect what they do to work with what little secondary market they’ve got.
Tom cautioned against making a blanket statement accusing ARDA ROC of not doing anything for members. A good example is the Virgin Islands. They are trying to slap an extra $300 onto an exchange. “If that happens, Aruba and other locations may try to follow suit,” warned Tom. In Hawaii, our two bedroom timeshare at Maui Hill slipped in a $6.90 a night Hawaii some kind of tax.
However, when the interests of the timeshare developer are at odds with the timeshare owner, the result is controversy. Issues like:
Owner access to membership lists. Timeshare owners receive endless calls offering vacation giveaways due to a mysterious $1800 credit on our maintenance fees, yet the developers work to pass laws or put up obstacles preventing owners from contacting other owners. No one on our Advocacy Facebook group will question why developers don’t want that!
The lack of a secondary market.
Back to my $7 ARDA ROC “Voluntary” Donation
This “voluntary donation” can be difficult to remove from your account.
What is this voluntary ARDA-ROC fee doing in my maintenance fee bill? – RedWeek.com
“Indeed you are quite correct that several other resorts include a line item in their maintenance fee statement for an ARDA-ROC contribution. I guess they get away with it because it’s allegedly voluntary. However subsequent maintenance billing beyond the first one incorporates that so called voluntary contribution and lumps it in with the subsequent maintenance fee total billing. If you don’t pay your bill after you receive the initial bill and you pay it after you receive a subsequent bill, you’ll probably be inadvertently including that voluntary contribution into your maintenance fee,” Mike explained.
Our Advocacy Group will begin having monthly conference calls to:
- Target legislators that might be willing to consider owner concerns;
- Educate the general public about what questions to ask before buying a timeshare. We wish someone gave us that advice!
- Get updates on current legislation;
- Get updates on legal and regulatory matters;
- An update on the measurable success of our Advocacy Group.
So there we have it the end of another week in the murky world of timeshare, Irene and myself thank those who have contributed to all the articles we publish, hoping it gives you the owners and readers an insight into what is going on. We have had many people contact us for advice and help, and through the contributions from readers, we have highlighted many dubious companies.
It remains for Irene and myself to wish you a very happy weekend, have fun.