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Friday’s Letter from America

This weeks Letter from America by Irene Parker reviews the results for the First Quarter of this year, judging by these figures the rest of the year is definitely going to be busy. But first we have a look at what has been happening in Europe.

Canarian Legal Alliance announced this week their 100th Supreme Court ruling, this achievement has made Spanish legal history, especially in the field of timeshare litigation. Within days of this announcement, CLA also received numbers 101 and 102 judgements.

The three rulings declared the Silverpoint contracts null and void with over 63,000 Euros being returned to the clients plus legal interest.

There was also a High Court ruling from Tenerife, again against Silverpoint, resulting in the contract being declared null and void with the return of over 14,000€ plus legal fees and legal interest.

No doubt the clients, lawyers and staff at CLA are celebrating.

All this week Inside Timeshare has been running article on the “Fake Law Firms” operating out of Tenerife, identifying many of the photographs of “their lawyers” posted on their websites.

We have shown 2 US lawyers, 2 Australian, several Spanish lawyers, 3 of which are from the same firm, An eminent Peruvian lawyer, Chilean, Columbian and the most surprising of all was the Azerbaijani Ambassador to Argentina.

Now for this weeks Letter from America.

Timeshare Advocacy Group™

First Quarter 2018 Results

April 13, 2018

By Irene Parker

Helping

First quarter results are in. Inside Timeshare received 116 US timeshare complaints since January 1. Remarkably, there have been nine positive outcomes (loan cancellation and/or refund) and eight resolutions – relinquishment or an answered question resolved the dispute. Timeshare resolution within three months is unusual. This fast-track resolution saves the timeshare member legal fees and the timeshare developer legal or arbitration fees.  We have kept many members out of the nets of “guarantee you a timeshare exit” scams created by the industry when licensed timeshare resale brokers won’t accept a timeshare listing, if they consider the timeshare worthless on the secondary market. Scammer listing agents will take your money and run, not caring if your timeshare sells.

Inside Timeshare has received 381 timeshare complaints since we began tracking complaints late 2016, so 116 complaints received since January 1 is an extraordinary jump in complaints (or readership). Timeshare members contacting Inside Timeshare have witnessed little interest from Florida, Virginia, California or Nevada Attorneys General timeshare divisions, assigned to enforce or not enforce timeshare regulations. Regulations may be in place, but seem to be little enforced. The Florida Timeshare Division dismisses timeshare members with, “Verbal representations are hard to prove,” and Nevada dismisses criminal allegations with, “You have no proof.” Based on one such response received by one Florida resident, we now know why the Florida Department of Business Practice and Regulation DBPR only acted on 110 out of 2,360 timeshare complaints filed from 2012 to 2014. One of our advocates is researching more recent numbers through FOIA.

Our members disagree with ARDA’s assertion:

From ARDA’s Code of Ethics: http://www.arda.org/ethics/

According to ARDA’s website – “Vacation Ownership is one of the most highly regulated vacation products in today’s consumer marketplace.”

Regulations are one thing. Enforcement is another. However, Attorneys General who have initiated and closed investigations against timeshare developers in 2016 and 2017, achieving settlements, did not buy into “You have no proof” or “You signed a contract.” These Attorneys General include: NY, CO, AZ, TN, MO, WI, NC, and the Florida DBPR, sources say, is investigating The Berkley Group (Vacation Village).

Timeshare members have been reaching out to the FBI, because most allegations meet the FBI definition of white collar crime “deceit, concealment violation of trust, bait and switch.” One FBI agent contacted and met with one of our Diamond Advocacy Facebook members.

Updates from a few of our advocates:

Josh Parker, US Army, Ret, OIF

Josh says they were told DRI points are an investment and easy to sell. Now expecting twins, they have learned there is virtually no secondary market for DRI points. Josh was told by a DRI Vice President, “We’re not responsible for what our sales agents say.”  

http://insidetimeshare.com/fridays-letter-america-41/ https://www.youtube.com/watch?v=ezkJ7GlJN4U&feature=youtu.be

Teresa Laird, on behalf of her parents, Raymond and Teresa Mori, Mr. Mori age 83, 23 years a Marine, disabled. Raymond Mori earned two Purple Hearts, now facing timeshare foreclosure. Teresa says she asked DRI to cancel a Sampler trial product sold to her parents, but says instead the company by phone sold Mr. and Mrs. Mori another 17,000 points, saying they took care of it by attaching it to another program.

http://insidetimeshare.com/fridays-letter-america-42/

Angela Sandstede on behalf of her parents Roy and Lillian Simmons, Mr. Simmons a Navy veteran, retired letter carrier, upsold into foreclosure, now in danger of losing their home. Their monthly DRI payment is $2,750 a month. They live on Mr. Simmons letter carrier pension.

https://www.youtube.com/watch?v=j_nca6lMA4U&feature=youtu.be

http://insidetimeshare.com/tuesday-slot-irene-16/

Sheilah Brust: Worked for the New York Governor’s Office of Employee Relations – Upsold by the same Daytona sales agent as Gad and Noreen Leibmann pictured below.  http://insidetimeshare.com/tuesday-slot-irene-14/

Richard Sokolowski: Arizona Real Estate

http://insidetimeshare.com/fridays-letter-america-43/

Greg Jennings: “My Name is Recycled Inventory”

http://insidetimeshare.com/tuesday-slot-irene-15/

Eron Grant: Catholic School Guidance Counselor http://insidetimeshare.com/fridays-letter-america-40/ https://www.youtube.com/watch?v=-FMk_45zRzk&feature=youtu.be

Gad and Noreen Leibmann: Navy Veterans

Gad Noreen

This is our “How to File a Complaint” form (Contact Inside Timeshare for assistance – we may be in Spain but are only a click away)

http://insidetimeshare.com/tuesday-slot-irene-16/

Section 5 of the FTC Code: The basic consumer protection statute enforced by the Commission is Section 5(a) of the FTC Act, which provides that “unfair or deceptive acts or practices in or affecting commerce…are…declared unlawful.”

  1. Consumer Protection

“Unfair” practices are defined as those that “cause” or [are] likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition” https://www.ftc.gov/about-ftc/what-we-do/enforcement-authority

We know the members above have suffered substantial injury. The gray area is “not reasonably avoidable” so the answer is a determined and pervasive media outreach to educate the general public on the fact that when they buy a timeshare product, they are signing a perpetual contract, with rising maintenance fees, and virtually no secondary market. Not one of the 381 families that have reached out to us since late 2016 knew this. Contact Inside Timeshare or a non-industry influenced self-help group if you need help with a timeshare concern.

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

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

https://tug2.com/Home.aspx

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

https://www.facebook.com/groups/465692163568779/

https://www.facebook.com/groups/1639958046252175/

Thank you Irene and all those volunteers who give up their time to help others, the world of timeshare needs people like you.

If you have any comments or questions about any article published or just need some help in  deciding which company is genuine, then contact Inside Timeshare through our contact page. We will help point you in the right direction, Remember doing your homework will save you money in the end.

Have a great weekend and join us again next week for more news and information on the murky world of timeshare.

weekend cat

Thursday News and Updates

Today another company has come to our attention which is cold calling timeshare owners, this one is called Timesure Solutions Limited. According to Company House records they are based at:

Suite 7, The Business Centre, Edward Street, Redditch, Worcestershire, England, B97 6HA

Which is a familiar address from the past.

They have the company number 10022303, they were registered on 23 February 2016. The director is one Brian Carr, a name which is very familiar from previous posts, but it is just coincidence as this one is 60 years old not 31 like the Brian Andrew Carr who has just been jailed for fraud.

The interesting fact is that he also has 2 other companies:

Convert a Garage Ltd (10470650) registered in November 2016, with the address:

The Business Centre, Edward Street, Redditch, England, B97 6HA it also has an active proposal to strike off.

Then there is:

Ownership Release Services Ltd (10033676) registered 1 March 2016 with the address:

Suite 8, The Business Centre, Edward Street, Redditch, Worcestershire, England, B97 6HA

According to Company House records their confirmation statement is overdue.

They do have a website www.timesure.co.uk but this cannot be accessed as it is suspended, they also have a Facebook page https://www.facebook.com/TimeSureSolutions/ which also shows post with a link to a contact page.

It must also be said that David Cox of TESS published an article headed “Timesure Solutions Jailed For Fraud” on 26 February 2018, the unfortunate thing is he actually got it wrong, it was actually “Simple Property Marketing Solutions”, The wrong company and the wrong Brian Carr!

So once again we have a company contacting owners regarding cancellation and claims, remember do your homework first.

Now for some news from the courts in Gran canaria.

There have been 4 sentences issued at the Court of First Instance in Maspalomas, all involve Anfi del Mar. All contracts have been declared null and void with the courts awarding in total 137,988€

There has also been news of another client receiving a massive 37,979€ into their bank account, this payout is from Anfi, who still insist that these claims do not exist.

News just arrived from the Court of First Instance number 1, again in Maspalomas, the judge has declared another Anfi contract null and void, awarding the the sum of 32,980€ plus legal interest back to the client.

Contrary to what David Cox and his company TESS want you to believe, these cases are real, yesterday we showed you where they can be found. These cases are a matter of public record, so what would be the point in making them up. Mr Cox, you are deluded if you think you can convince people you are telling the truth, all you are doing is destroying yourself and that can’t come soon enough!

Join us tomorrow for Fridays Letter from America, have a good evening.

 

The Tuesday Slot with Irene

Although this is the Tuesday Slot with Irene, we welcome a new contributor, Greg Jennings with his “Nightmare on Timeshare Street”, once again Irene Parker was the editor. As usual we will have a quick roundup of some of the news in Europe.

Yesterday we published the article on Silverpoint and their announcement that they had stopped the resale programme of Club Paradiso, today we received another Newsletter. This one is from Club Paradiso and is slightly different from the last in that they now claim they are looking at alternative “Marketing Agencies” to begin the “Resale Programme” for Club Paradiso members.

The question is now, will this be a company set up by Silverpoint, or will it be an already existing company?

The other question is regarding the resale market itself, where is it?

That question we leave you the reader to answer.

Last week Canarian Legal Alliance announced their 96th and 97th Supreme Court victories, this is an amazing achievement, making yet again Spanish legal history. These cases were against Puerto Rico SA (Puerto Calma) and Silverpoint respectively. Both contracts being declared null and void and the total awarded in both cases 56,600€ plus legal fees and legal interest.

CLA also published in their news section a letter from one of their clients, Mr Rolf Ingvar Høyer, (Professor Emeritus (BI Norwegian Business School, Oslo). In this letter he explains his dealings with CLA in the long running case against Anfi.

This began in 2009 and ended up with the case being heard at the Supreme Court, with 131,000€ being transferred to his bank account at the end of last year. For his full story follow the link to the CLA website.

https://www.canarianlegalalliance.com/celebrating-victory-mr-hoeyer/

With all the negative spin being put out by Anfi against CLA, this should leave you the reader in no doubt that timeshare companies cannot be trusted with the truth.

So on we go with another readers experience at the hands of Diamond sales agents.

My Name is Recycled Inventory

Geek

By Greg Jennings

Diamond complaint #58 out of 94 Inside Timeshare received since January 1

March 20, 2018

How I became a victim of Diamond Resorts

The first year: They said that there was a meeting I should have been invited to, but if I wrote a note to the sales manager stating that I was not aware of this meeting, I could buy additional points at the reduced sale price.

2017:  I attended yet another Owner Update, unhappy with my Diamond ownership.  I was in way too deep and my employment situation was not secure. During this meeting, Las Vegas DRI sales agent Jeff Regier asked why I was unhappy, and then proceeded to tailor his sales pitch accordingly. I told Jeff that the outstanding loan was unaffordable, and that without full time work, my savings had been depleted in order to keep my Diamond loan current.

That’s when he offered what appeared to be the perfectly tailored pitch:

If I purchased 4000 additional points, I would be at a level where I could use the points to pay maintenance fees, would qualify for a lower interest rate on the mortgage, and most importantly, if I was unable to continue, I could pursue the “Exit Strategy”, where Diamond would buy back my ownership at a reduced rate. Jeff said these benefits wouldn’t be accessible until after January 1, 2018. This is how they dodge the rescission period.

The following link and comments are from a Ripoff Report against Jeff Regier written by Jonathan Brown, July 8, 2016:

https://www.ripoffreport.com/reports/diamond-resorts/nationwide/diamond-resorts-diamond-resorts-international-timeshare-scam-hostage-liar-las-vegas-n-1315868

If you want to actually take a vacation and enjoy it without being forced to sit in an office for 7 hours then AVOID DIAMOND INTERNATIONAL. I had 2 specifically bad Sales reps here Andrew Fernando, wouldn’t let us leave even when my Son needed food. Went and got food so that we could STAY. My son needed a Nap, he said, go give him a nap and then COME BACK!

Right, because that’s what I want to do on vacation, spend time with Andrew Fernando all day. Then Jeff Regier got involved. He actually corrected Andrew 4 times in front of me for not clearly explaining what was going on. Once I figured out that they wanted me to spend 30K More, I was out.

Back to my nightmare

lightening cash

My story begins 2006 or 2007. I was in a bad place in life. Most of my records had been lost. Talking about this is uncomfortable, because I feel stupid for falling for the scam I now understand this timeshare sale was. I’m embarrassed and ashamed. I only hope my story helps others understand the predatory nature of this industry and just how worthless the product is in relation to what it cost me.

I had originally purchased a timeshare from Monarch Grand Vacations believing I had purchased a retirement travel lifestyle for just under $10, 000. The sales pitch was impressive. Monarch owned eight premier resorts in the western United States and was affiliated with Interval International. In addition, Monarch owners could enjoy “unlimited Day Use” at any Monarch property, without using points.

My grandmother had recently died, leaving me with a small inheritance. I was drinking and gambling. In my depression I think I just wanted to secure some part of normalcy. I attend a convention in Las Vegas every year so assumed this ownership would make that more affordable. I had been suffering with a disability due to a chronic back injury. With no support base, dependent on narcotic pain medication, I was an easy mark for the timeshare sales team.

The first year was pleasant enough. I was able to travel to Las Vegas using the points, but was disappointed to learn Monarch would be going through bankruptcy.

The second year I exchanged my points through Interval International.

The third year in Las Vegas, I attended a Diamond “Owner Update” where I encountered the hard sale. They said due to bankruptcy, Monarch inventory was being transferred to creditors. With inventory dwindling to zero, there would eventually be no availability so my only option to preserve the value of my investment was to purchase into the Diamond Resorts family, as DRI was the largest creditor. This was accomplished with a separate loan, monthly payments, and an increase in maintenance fees.

Over the next few years, the owner updates were roughly the same. Apollo Global Management acquired Diamond and point values had been adjusted. I was told that in order to continue to attend my annual conference I would need to purchase additional points in order to find available inventory. These updates often exceeded three or four hours. My need for pain medication made me susceptible to doing whatever I could to end the updates. I panicked thinking everything I had been paying for would be valueless as Diamond reduced inventory in order to escalate demand for DRI points.

In 2016, I made what I thought would be my final purchase. I had just made Silver Level, but DRI sales agent Paul said that I was not financially viable unless I became Gold. I left with a new $374 monthly payment on a 15 year loan. I had been struggling to make the prior loan since my second accident that happened in 2011. I had lost my home to foreclosure while on temporary disability.

In 2017, I attended yet another Owner Update now seriously unhappy with Diamond. I was in way too deep and my employment situation wasn’t secure. I told Jeff  the loan was unaffordable and that my savings had been depleted. I had been trying to sell my timeshare on the secondary market but there was no demand for Diamond points. The $3000 maintenance fee cost more than 10 days in many hotels. The only way I had been able to secure DRI availability was in response to marketing emails which required another sales meeting.

During this update, DRI sales Jeff Regier asked why I was unhappy, and then proceeded to tailor his sales pitch accordingly: If I purchased 4000 additional points, I would be at a level where I could use the points to pay maintenance fees, would qualify for a lower interest rate on the mortgage, and most importantly, if I was simply unable to continue, I could pursue the “Exit Strategy” – Diamond would buy back my ownership at a reduced rate. These new benefits wouldn’t be accessible until after January 1, 2018. This is how they dodge the rescission period.

This “exit Strategy” was what I believed would be my way out. I of course didn’t need or want more points. Jeff Reiger knew I couldn’t afford more points. I only bought points because I was desperate to end my relationship with DRI. He used that to hook me. He also said he would act as my point of contact for all future DRI dealings, getting me discounted bookings and that I wouldn’t have to deal with any more sales people. After almost 4 hours, I needed to be done.

As it turned out, the interest rate was essentially the same, the loan was now 10 years, and part of the balance needed to be on a Diamond branded Barclays credit card offered at 0% interest. Jeff said if I called him in January he would get the 0% extended, and that I could use the card to pay down principal on the note. The loan required direct access to my checking account for approximately $560 per month. I went online in January with the tablet I had been given as instructed by Jeff, but could find no promised, “Exit strategy”, the ability to pay maintenance fees with points, or any form of buyback program. I had been duped.

I called Jeff in January and asked him to extend the zero percent interest on the credit card, and transfer some of the loan balance to the Barclaycard. He said I needed to call the credit card issuer myself, because he couldn’t do it without my personal information. He said if they would not extend it I could apply for a new card with a promotional interest rate. He then said he would be unavailable because he was going on vacation. This was the final straw. This was when I realized what a fool I had been to believe anything these people told me.

With my remaining 2017 points, I booked a trip to Hawaii by responding to a promotional email for Kona Village Resort. During the mandatory update, I refused to buy more points. I was then accused of illegally recording the meeting. The sales manager demanded I sign a blank form. When I refused, he said he’d “take care of it” adding that I’d never get a discount booking again. They also refused the promised resort vouchers for attending the presentation. This was a breach of the timeshare practice offering compensation for attending promotional meetings without obligation to purchase.

Sales agents claim points have value. They told me to preserve value I had to buy more points. They told me they would make ownership more affordable. They told me I could use points to pay maintenance fees. They told me if I couldn’t continue, they would buy back my ownership – LIES – every one of them. When I sent a letter to Diamond requesting information on the promised “Exit Strategy” I received an email stating no such strategy exists.

I have run out of money. The automatic payments have drained my account. I have come to terms with the fact that I have wasted over $60,000 over the last ten years trying to preserve what I was told was an investment in retirement travel.

As I sit here today, I am unemployed, struggling with a disability, and financially devastated. Diamond collection agents call every day. When they call, I ask if they are offering me employment. At first, they told me I needed to confirm my contact information for security purposes. When I refused, they told me they couldn’t discuss my account, so I ended the phone calls. They still call but no longer ask for verification. When I ask about the exit strategy, or if they are aware of promises made by their sales staff, they tell me they are only going to discuss my account. So I end the call.

I have no idea how to proceed, but I cannot pay with money I don’t have. I am sure they will find many ways to ruin what was left of my credit having bled me of my finances. They don’t care. I see them as predators. They will move on to new victims, and the cycle will continue. But I will no longer participate.

I am recycled inventory.

Comments from Irene: Greg is not stupid. We have heard from doctors, lawyers, a contract specialist for Consolidated Edison, professors, 34 active duty and retired military including Raymond Mori, recipient of two Purple Hearts. His daughter Teresa Laird submitted an article for this coming Friday’s Letter from America. I have an MBA and a CFP. We all signed DRI contracts. We all say we were told things that were not true. With 338 Diamond Inside Timeshare reader complaints received since late 2016, Greg is not alone. Unresolved complaints:

Josh Parker

https://www.youtube.com/watch?v=ezkJ7GlJN4U&feature=youtu.be

Eron Grant

https://youtu.be/-FMk_45zRzk

Roy Simmons

https://www.youtube.com/watch?v=j_nca6lMA4U&feature=youtu.be

Kevin Hopkins

https://www.youtube.com/watch?v=zAkBlfyhVYQ&feature=youtu.be

 

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

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

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

We’re here for Greg

coloured hands

Thank you Greg, your story is truly up there with the worst of “Nightmare on Timeshare Street”. Also thanks to Irene and all the volunteers who are helping people like Greg. These stories are becoming all too familiar at Inside Timeshare, with readers contacting us on an almost daily basis.

If you have any questions or comments about anything in this article or previous one published, contact Inside Timeshare, using our contact form for a private message or post a comment on the relevant article.

Have you been contacted by a company offering you a service such as resale, claims or relinquishment, or are searching the net for one, then remember to do your homework before engaging with them. If you require any help in checking their validity, then use the contact form with your questions, we will then get back to you and point you in the right direction.

It pays to be diligent so do your homework and save your money!

give us money

Friday’s Letter from America

Welcome to the first Friday’s Letter from America of 2018, we may be only 5 days into the New Year, but the Supreme Court has just made another ruling against Silverpoint.

Another client of Canarian Legal Alliance has had their contract with Silverpoint declared null and void, with the return of over £11,000 plus legal fees and interest. This now makes the number of rulings from the Supreme Court made by CLA to an astonishing 83!

Once again it is that time when maintenance bills start to drop onto the door mat, for many this is a difficult time, especially for the elderly who can no longer afford to pay the ever increasing bills.

For one elderly lady which Inside Timeshare has been highlighting for some time it has happened again. This is the case of Mrs B, as you will remember, MacDonald Resorts refuse to acknowledge that she no longer owns her timeshare at Dona Lola in Spain.

Mrs B and her sister, who are now in their late 80’s, employed the services of a company to be rid of their timeshares around 3 years ago. This company “sold” the timeshares and transferred them to another person, this was duly notarised by a notary in Spain. The Lanzarote timeshare has caused no problem, but MacDonald’s refuse to accept the transfer.

Mrs B has now received another demand for over £3000 for maintenance, obviously this will end up being sent to a debt collection agency which will incur even more fees.

It must also be remembered that they had not used the timeshare for over 10 years, yet still paid the maintenance until the transfer. Both are virtually housebound and cannot afford to pay these extortionate amounts.

Tony Hetherington has published several articles about MacDonald Resorts and their chasing of maintenance fees, even after the death of the owners or severe illness.

http://www.thisismoney.co.uk/money/experts/article-2698355/TONY-HETHERGINGTON-Even-death-not-rid-timeshare.html

MacDonald Resorts is one of the worst offenders in the timeshare industry for this type of behaviour, it is companies like this that have given timeshare the reputation it has. Greed it seems is the order of the day.

Now for this weeks Letter from America.

Hope for Beleaguered Timeshare Members!

Start with the Better Business Bureau

By Irene Parker

January 5, 2018

The Nightmare on Timeshare Street article scheduled for today has been cancelled because the resort listened and responded to the member. We don’t yet know the outcome, but at least the member has not been dismissed or ignored. The customer is not the enemy. The enemy is the timeshare sales agent that “pitches heat” making outrageous claims to sell points, knowing they are protected by the oral representation clause and that there is no federal enforcement.

If you have a complaint about your timeshare, first and foremost, contact your resort. It’s surprising how many who contact us have not tried to resolve their issue with the timeshare company before contacting an attorney or an exit company. It is the opinion of Inside Timeshare, in most cases, a member can accomplish what an attorney or an exit company can accomplish by following our complaint form. We are here to answer any questions for free.

How to File a Timeshare Complaint: Revised

In the U.S. it’s best to begin with the Better Business Bureau, although the BBB is not a regulatory agency. It is a nongovernmental nonprofit that serves to promote a community of business that consumers can trust. The BBB does not solve consumer disputes. Success is not based on the outcome, but whether the business responded or not.

A BBB complaint is the easiest to file and can serve as your blueprint as you work your way down the list of appropriate agencies. File a complaint only if you feel you were a victim of deceit and bait and switch. “I can’t afford this” or “there is never any availability” or “you can always book cheaper online” are not specific enough complaints.

We compare the Better Business Bureau ratings among five major vacation point sellers. First, an explanation of the rating process from the BBB website:

The BBB rating rates only how cooperative and responsive a business will be to consumer issues. BBB ratings are based on information in BBB files with respect to the following factors:

Business’s complaint history with BBB.

The BBB rating takes into account the following information with respect to closed complaints that relate to a business’s marketplace activities:

  • Number of complaints filed with BBB against the business.
  • The size of the business.
  • If complaints have been filed, whether in BBB‘s opinion the business appropriately responded to them.
  • If complaints have been filed, whether in BBB’s opinion the business resolved the complaints in a timely manner to the customer’s satisfaction.
  • If complaints have been filed, whether in BBB‘s opinion the business made a good faith effort to resolve complaints, even if the customer was not satisfied with the resolution.
  • If complaints have been filed, whether in BBB‘s opinion the business failed to resolve the underlying cause(s) of a pattern of complaints.
  • The age of resolved complaints. Older resolved complaints have less of an impact on the rating than newer complaints.

⦁ Type of business.

⦁ Time in business.

⦁ Transparent Business Practices

⦁ Failure to honor commitments to BBB.

⦁ Licensing and government actions known to BBB.

⦁ Advertising issues known to BBB.

From Best to Worst based on Stars

BBB Accreditation: If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB accredited businesses pay a fee for accreditation review and monitoring for continued compliance.

https://www.bbb.org/council/for-businesses/about-bbb-accreditation/

Disney Vacation Club, Marriott Vacation Worldwide, Diamond Resorts International, Bluegreen Vacations Unlimited, Wyndham Vacation Ownership

                                                                     # of stars      # of Complaints       # of reviews +      –   neutral

A+ Disney Vacation Club                            5/5                             9                          1        1                   0      0

No Government Action No Pattern of Complaints

Accredited since 1991, in business since 1990

 

A+ Marriot Vacation Worldwide          3.68/5               123                                  11        0                   11     0

No Government Action No Pattern of Complaints

Not accredited, in business since 1994

 

A- Diamond Resorts International       3.27/5          1,115                                   89       2                  86      1

Government Action noted

Not accredited, in business since 1996

 

C+ Bluegreen Vacations Unlimited       2.47/5           781                                108         9                 95      4

Pattern of Complaints

Not accredited, in business since 1966

 

C+ Wyndham Vacation Ownership      2.39/5         2,085                             96             4                 92      0

Government Action noted and a Pattern of Complaints

Not accredited, in business since 1994    

Next week: The Consumer Protection Agency – What’s left?

A survey of all timeshare appropriate regulatory agencies:

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

Always Remember:

U.S. Self-Help member sponsored groups we believe not to be industry influenced:

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

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

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

https://tug2.com/Home.aspx

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

https://www.facebook.com/groups/465692163568779/

https://www.facebook.com/groups/1639958046252175/

Contact Inside Timeshare if you have questions about this or any other article published, we are here to give you the best advice possible.

 

Los Claveles: The Opposition View

Continuing with the story of Los Claveles, Inside Timeshare has been asked by Roger Barrow to publish the following letter.

It is published as there are always two sides to every debate, without this balance nothing will be solved. All owners must have access to both arguments, you may not agree with this letter, but there are many owners who do not know what is going on. From the many comments and emails we have received there does appear to be some personal grudges being vented.

Inside Timeshare asks that you put these aside and try to work together, you all believe that you have a lovely resort, many of you have owned for years. Going through the internet we have found many negative comments about other timeshares, but not about Los Claveles or in fact any of the other resorts such as Las Casitas, where Roger is President of the Committee of Owners.

We leave it to you the readers to decide.

los claveles opposition logo

PRESS RELEASE

Los Claveles Committee – Owners Fight Back

In 2015, Ivan Pengelly of WimPen, who were the appointed administrators for Los Claveles along with several other resorts in the Canary Islands, sold his shares to OnaGrup, who he judged were the best company to help improve the rental income for blocked and unsold villas in the resorts. All the resorts were suffering from an aging population of owners and an increasing number of debtors. This sale to OnaGrup was subject to a confidentiality agreement.

Once the sale was complete, Ivan Pengelly announced the sale to the resort owners. While there were a few ‘bumps in the road’ and much anxiety by owners in most of the resorts, calm and measured negotiation with OnaGrup resulted in amicable and mutually agreeable arrangements for the continued management of the resorts. With the exception of Los Claveles that is.

A Los Claveles committee meeting, on the casting vote of the Chairman, decided to terminate WimPen’s contract. A subsequent General Meeting voted 329 to 236 to retain Wimpen, however this result was overturned by proxy votes, including the chairman’s discretionary proxies. The final voting was 863 for termination with 823 against.

“We believe this decision was premature and we want to challenge the Claveles committee and way they have handled this dispute”, said Roger Barrow, chair of the newly formed opposition working group. “It has led to the most acrimonious of disputes, with owner set against owner. The dispute has now launched into an expensive arbitration and legal battle, when the committee could have followed the simple and straightforward process to appoint a new administrator, a process set out in the constitution.”

“It was a knee-jerk reaction which we believe owners will regret,” said Mr Barrow.

So, what is the situation now? While everyone awaits the full outcome of the arbitration and legal appeals, Wimpen, now without a contract, have continued as Acting Administrators, successfully managing the resort. They look after the finances, maintenance, cleaning, resort improvements and employ the staff. Owners still must pay their maintenance to WimPen to gain access to their villas.

“The club committee are also demanding payment with threats that owners are acting illegally and risk losing their membership if they don’t”, said Marilyn Fry, the group’s secretary. “This leaves owners bewildered, confused and very anxious. Some have paid twice to Wimpen and the Club, a few have successfully obtained a refund from the club. But for owners, this is a very unsettling situation”.

“There is also an unsatisfactory level of secrecy in the club”, continued Mrs Fry, “With owners who criticise or oppose the committee’s actions banned from the owner’s website and social media, which is heavily censored”.

So, what is the solution? The opposition working group are setting out to challenge the owners’ committee and believe that by giving WimPen a new contract, owners can regain control and should then allow Wimpen time to show what they can do before following the correct process to either continue with WimPen or appoint a new administrator.

“We all want the same thing in the end,” said Mr Barrow. “A happy and efficient resort that operates as successfully as all the other resorts in WimPen’s portfolio.”

www.losclaveles-alt.eu | [email protected] | 0796 222 4554

The opening paragraph clearly explains the problem that all timeshare resorts have, owners who are now elderly, many unable to travel, owners who can no longer afford the maintenance fees and a new generation that do not believe in the concept of timeshare.

With this diminishing population of owners the only way these resorts can survive is by increasing the maintenance fees of the remaining owners, or by renting out the unsold and returned weeks.

Inside Timeshare has given you a platform to begin a discussion and resolve this issue, it is your resort, you are among the lucky owners of timeshare, you do have a say in how your resort is run. For those who own in the points system, which the Spanish Supreme Court has deemed illegal, they do not have these rights. They are members of a vacation club, with only a right to use and this is subject to availability.

Inside Timeshare will continue to publish news as it comes in, we also hope to publish the news that you have all come together and resolved the issue. We wish you all the best.

Eze Group in Trouble

It has just been announced that Dominic O’Reilly and his daughter Stephanie O’Reilly have pleaded guilty at Birmingham Magistrates Court on 17 November 2017. The guilty pleas are in respect of aggressive sales practices and coercion, contrary to the The Consumer Protection from Unfair Trading Regulations 2008.

The magistrates court have deferred sentence to the Crown Court in January 2018, this is an indication of the severity of the case as the magistrates court is limited in what sentence they can impose. Magistrates can only sentence to a maximum of 12 months imprisonment and a maximum fine of £5,000.

birmingham court

Eze Group and their Tenerife based company Regency Shores SL are well known for their Eze credits scheme, which they claim gives huge discounts on holidays, theater tickets and many other goods.

They are also known for their sponsorship of Birmingham City FC and the EZE wishes scheme, there is even a stand called the Eze Group Stand. Their “Foundation” also has an impressive list of sponsorships which include Celtic FC, Aston Villa Former Players Association along with other sponsorships of individuals.

So by and large the image they portray is one of respectability, but for many of their clients this is not the case and this latest news would appear to back that up.

But it does not end there, only yesterday 22 November, Canarian Legal Alliance published the result of a case in Tenerife against Eze Group Europe and Regency Shores SL.

The Court of First Instance in Tenerife ordered the return of over £52,000 plus legal interest, with the contract being declared null and void. In this case the Spanish Timeshare Law 42/98 was used. It looks like their “Eze Credits” may have been seen by the Spanish courts as “Points” which have been deemed illegal by the Supreme Court.

tribunal supremo

Could this be the first of many more cases in the Spanish courts and could this open up many legal proceedings in the UK?

Only time will tell.

Once the Crown Court issues its sentence in the New year, we will bring you the news, all that can be said is when they appear, they should take their toothbrushes with them!

If you have any questions about this or any other article published, contact Inside Timeshare and we will point you in the right direction.

The Tuesday Slot

Since we published last week’s Friday’s Letter from America, Inside Timeshare has received some very good news from one of our readers. It was concerning the “FAKE” law firm Amador Galeca Abogados, this reader had paid them by bank transfer to start “legal” proceedings against Royal Sunset Beach and Andrew Cooper. When she became suspicious, she found our articles on this group, which are part of the Litigious Abogados family of “FAKE” law firms.

We advised her to contact her bank and see if they could stop the transfer, this she did. Thankfully her bank has managed to do this and the money is now safely back in her account.

amador-galeca-300x191

She then received another call from this “law firm” asking why she had stopped the transfer and why she was not going to continue with the “case”. She told them in no uncertain terms that they were a “scam”, to which they replied, have you been reading the Inside Timeshare Blog? They are the ones perpetrating the scam!

Well, it is certainly a great scam, considering Inside Timeshare never receives or asks for any payment for any help or advice we give. To be a scam there must surely be some financial motive.

The only ones perpetrating a scam here are Amador Galeca Abogados along with all the other fake law firms this lot have produced. If Inside Timeshare is wrong in what we publish we ask this very simple question, YOU ARE SAYING YOU ARE A LAW FIRM, SO WHY HAS INSIDE TIMESHARE OR OUR LAWYERS NOT HAD ANY NOTIFICATION OF YOU TAKING ANY LEGAL ACTION FOR PUBLISHING FALSEHOODS?

The simple answer is, YOU ARE THE FAKES, YOU ARE THE ONES WHO ARE DEFRAUDING VULNERABLE ELDERLY TIMESHARE OWNERS. THE AUTHORITIES ARE ONTO YOU AND WE WILL KEEP ON PUBLISHING ABOUT YOU AND EVERY NEW WEBSITE, FAKE LAWYERS NAMES THAT YOU COME UP WITH. THAT IS OUR PROMISE TO ALL OUR READERS!

Now on with this Tuesday’ article from Irene Parker.

Timeshare Lending Decisions

As Compared to Prenuptial Agreements

AB

By Irene Parker

October 10, 2017

Mesmerized by the thought of endless vacations, while on vacation brain, staring at a finger pointed to a low monthly payment, the last thing on the mind of a timeshare buyer is “What type of lending, if any, should I select in the event my decision to spend thousands of dollars for a vacation plan does not work out?”  

The decision made about how to finance a timeshare purchase has a dramatic impact on what happens if a buyer learns later they made a mistake.

Hopefully, you didn’t make a mistake. There are timeshare companies that work hard to keep up industry standards and provide a viable, if limited, secondary market.

Last week we published an article about timeshare Foreclosure. Out of 160 US timeshare complaints Inside Timeshare has received, the majority are about high interest rate loans and even higher interest rate credit cards. The toxic and compounding effect of this combination can spell financial disaster. It can mean the down payment is financed at around 25% and the loan 12% to 19%. Many tell us they were told any bank would refinance a timeshare at a lower interest rate only to learn banks do not finance timeshares. Comments include, “Banks would be crazy not to finance your timeshare. It is worth $500,000!” when it was worth nothing on the secondary market”. One complaint even stated specifics – the name of the bank, the term and an interest rate of 6%.  

At the last timeshare presentation I attended, the sales agent told us, “When you get home, take out a home equity loan. No one would finance at our interest rates.” However, transferring to a lower interest loan like a home equity loan may not be the right decision either.

Inside Timeshare published its first Nightmare on Timeshare Street article one year ago. The family was struggling to pay maintenance fees. As so many of our readers have reported, a common solution, as suggested by unscrupulous sales agents,  is to sell the existing member more points as this will afford them maintenance fee relief or the ability to sell points. Unfortunately, the programs were non-existent. Fortunately this family walked away from this deal. Unfortunately, they had taken the financing advice and took out a home equity loan transferring the loan to a third party lender. When the kids said they wanted nothing to do with timeshare, and the maintenance fees escalated, they were forced to deed back $60,000 worth of vacation points and were left with a $33,000 home equity loan and a high school graduate starting college.

Should timeshare buyers ever consider third party lending?

Savage

Timeshare Attorney Mike Finn of the Finn Law Group says NO!

Mike posted this comment after reading “Foreclosure, Is it Survivable?”

http://insidetimeshare.com/timeshare-foreclosure/#comment-10000

Another tremendous and informative article! I think the one major, major admonition I have for anyone, client or not, who has purchased a timeshare with developer financing and may want to reconsider the merits of the purchase (and, of course, assuming the rescission period has passed), do not, I repeat, do not under any circumstances, attempt to re-finance the purchase via a home equity line or a transfer to a lower interest credit card, or, for that matter any other methodology that has as its objective, re-paying the developer with other third party money.

For that matter don’t even think about using your own funds either! Assuming you soon may conclude that you do not want to continue with your timeshare obligation for whatever reason, legally based or economically driven or a combination of both, you will come out much better in the long run (no matter the developer’s interest rate) if you are left dealing with the developer as your creditor, as opposed to any other third party you opt to transfer that debt to! If you have any sort of legal argument that the resort debt was accompanied by any sort of misrepresentation or fraud in its inducement at time of contract of purchase, you will lose the benefit of that position with any other third party creditor save the resort!

Respectfully,

Mike Finn

This leads me to the comparison I made in today’s title, comparing a timeshare lending decision to a prenuptial agreement. Being in love is a little like being on vacation. A marriage often starts with a vacation. With love all around, the idea of signing an agreement that casts doubt on the “till death do us part” seems distasteful.

From what Mike Finn says, if you must buy a timeshare, begin with a negative end in mind. Buy it on the developer’s high interest rate nickel because in-house loans are easier to cancel. For my part, if this is the appropriate strategy, then a timeshare should never be purchased. Would I buy our timeshares again knowing what I know today? Yes, I would buy Port Elsewhere in the Ozarks and Maui Hill fixed-week timeshares again. Ambiguous right-to-use programs I think not.

Can we stop unethical timeshare business practices?

I doubt it. In Florida alone, $70 billion a year flows into the state in tourist dollars. Lawmakers, some influenced by lobbyists, have turned a deaf ear. Regulation is by design at the state level, disguising and diminishing the scope of the problem.  For some industry players, the culture of deceit on the front end of the timeshare sale is so ingrained it is the established norm. Until the problems associated with perpetual contracts with no secondary market and deceitful and overly aggressive sales tactics are acknowledged and addressed, buyers should consider carefully the choice between buying a timeshare and booking online. To my knowledge not one timeshare company has ever admitted wrongdoing.

The following self-help Facebook pages offer members a safe place to express concerns and share experiences. Petitioning a timeshare company can be frustrating and intimidating. Contact Inside Timeshare or one of these self-help groups if you have a positive or negative timeshare experience to share.

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

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

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

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

we can help

Thanks Irene for that article, also our thanks to Mike Finn of the Finn Law Group for your contribution.

Inside Timeshare welcomes contributions to our pages from you the readers, we are also looking for more contributors from Australia, Asia, Mexico Central and South America, India and anywhere that timeshare consumers exist. Let us all get together and share our experiences, the industry will only change when we all speak with one voice.

globe flags 2

        

 

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

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

         

 

Friday’s Letter from Australia

We start September with another Friday’s Letter from Australia, just to give our American cousins a rest. Today Justin Morgan, looks at the the role private equity plays in timeshare, with the introduction and comments by our very own Irene Parker. But first a little from Europe.

europe

Earlier in August we said that it tends to be a quiet month, well this was not the case this year, as our roundup of the month article yesterday showed. We also mentioned that September usually sees the start of new companies, changes of name or even resurrected ones. Well they have started to surface already.

Doing our usual daily rounds of the internet, one site, mindtimeshare, since the beginning of August has published the names of 6 that have come to their attention. 3 of these were published yesterday. We begin with:

Appointing Consultants, with the following website, which was only registered on the 14 August, as usual, the registrant is hiding under a privacy service.

http://appointingconsultants.co.uk/

According to the website, they are a company that offers the following services:

  • Appointment Setting; We can provide your business with qualified appointments for your sales team.
  • Lead Generation; We can offer bespoke leads from both websites and telemarketing operations.
  • Customer Service; Create the best customer services team for your business.
  • Online Marketing; Run an online marketing campaign. We can help you with SEO or e-mail campaigns.
  • Data Sourcing; Source the best possible data to make your business thrive.
  • Sales Training; Teach your team with one of our professionals to be the best. (Their spelling mistake)

The thing is they are informing timeshare owners that they have grounds to make a claim, which for a telemarketing company making appointments for another company is a little worrying.

They also do not appear on any company house records.

The next one is Barlow & Scott, with the telephone number 01904 501 389 which is a York number. When checking on who is calling, one name comes up First 4 Legal, there was a company of this name registered in London, but it was dissolved in February 2012.

There is no mention of a website and they seem to be contacting Club Class members, stating that they are a solicitors office and that there is money being held for the client by the courts in Spain!

They claim that the purchase of membership was never completed as the client never had an NIE Number, no problem for £500 we can get this for you then you can get your money back.

This is however untrue, you do not need an NIE number unless you are going to live in Spain or for any of the following:

  • Open a bank account
  • Buying, selling or insuring a property
  • Arranging a mortgage or credit
  • Pay taxes
  • Being employed
  • Registering with employment agencies
  • Registering to study
  • Applying to start a business
  • Registering with social services, receiving social security benefits
  • Applying for a driving licence
  • Inheriting assets

The NIE is a Spanish Tax Number for foreigners. So beware these types of claims.

The next is called Stapleton Consultancy. Once again they claim that the Spanish courts are holding money owed to the consumer from a previous fraud. Now to get this money paid out Stapleton Consultancy will need to be paid in order to do the work. There are no contact details available, so very little is known.

There is a company called Stapleton Consulting Limited, but they are chartered building surveyors, so absolutely nothing to do with timeshare. As and when new information comes to light, we will publish it here.

This really does show that you must do your homework before dealing with any company that calls you out of the blue, especially when they inform you that you have a payment waiting to be released by a court!

homework1

Just to finish off the month of August, Canarian Legal Alliance announced yet another sentence from the Court of First Instance in Maspalomas, once again it is against Anfi, who still deny that they have any cases against them.

In this particular instance the court declared the contract null & void, the infraction was again a contract over the stipulated period of 50 years. The court awarded this consumer over 23,000€, they also awarded over 4,000€ as double the amount that was taken as a deposit within the mandatory 14 day cooling off period.

If August was a quiet month, what will the next few months bring? Keep an eye on these pages and you will see.

So here we go to the land down under and this weeks article from Justin.

What Role Does Private Equity Play in Timeshare?

we the corporations

By Justin Morgan

Introduction and comments by Irene Parker

September 1, 2017

Private equity firms, traditionally providing capital to fund high growth start-ups, may be shortchanging timeshare consumers in their quest for returns typically targeted to reach higher returns than those of the public market.

Timeshare in general has been facing increased pressure due to overly aggressive sales tactics. This warning about escalating default rates was published February of this year by American BankerDiamond Resorts and Wyndham under pressure due to aggressive sales tactics. Wyndham is a publicly traded company. Diamond is owned by private equity firm Apollo Global Management.

Diamond Resorts ABS under Pressure from Company’s Sales Tactics

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

The question is – how are higher returns for private equity investors won?

Is timeshare even an appropriate venue for private equity investment? Can higher returns be earned without strangling the timeshare consumer with excessive maintenance fee increases, reduced availability and other unsavory tactics driven by such demands?

Former Diamond CEO David Palmer explained this concept to investors at a September 2014 conference, according to a transcript, “Anything that is put in the budget that gets expended on an annual basis, we get our 15 percent fee, That is basically a 100 percent profit business.”

Meanwhile, timeshare members received this notification:

“Timeshare owners of the Grand Beach Resort, a 192-unit property in Orlando, Fla. … learned in a letter in September that their annual maintenance fee would rise 14.9 percent this year.”

I asked Advocate Justin Morgan, our Australian Contributor, his thoughts:

This is the ‘Super Profits’ issue that I questioned years ago… I pointed out that retail prices for vacation points were sometimes four to six times retail value across Asia and Australia. But the real focus involves turning vacation ‘currency’ into more fiat currencies at super profit level. In my opinion, they are not interested in member value at all. It’s an early version of cryptocurrency! My sentiments are no different today…even worse.

In my case, I found my Diamond Resorts account terminated for renting, although my contracts clearly gave me in writing the right to rent. If they changed the rules, that’s unfair, but virtually all timeshare contracts state the rules can be changed at any time for any reason.  It is now apparent we were ‘all-in’ against the Vegas House that takes all it can get.

Irina Allen agrees. Irina is a professional who ended up with 139,000 Diamond points alleging she was up-sold to that level by deceit. Inside Timeshare previously reported on how Irina’s account was suspended for posting one ad on RedWeek. Rental ads for Diamond points on RedWeek abound.

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

The timeshare point’s product is a cryptocurrency that offers no backing other than your promise to keep paying ‘whatever it is this year’ maintenance fee increases. Some timeshare companies force maintenance fee increases for any reason…They can then pick up default points.

Timeshare developers pocket millions and millions this way. Most members are not allowed to leave. It’s like ‘Hotel California’s’…you can check in anytime you want, but you can never check out.

“Last thing I remember, I was

running for the door

I had to find the passage back

to the place I was before

“Relax, “said the nightman,

“We are programmed to receive.

You can check-out any time you like,

But you can never leave!” The Eagles

It doesn’t matter much whether they are public or private, though I feel private equity firms have far less scrutiny. The problems lie in the legal structuring of these entities, and how they can basically bill members for whatever tab that they find is allowable. If they control the HOA, and therefore budget approvals, the rest of the structure is usually just a financing and ‘dividend’ pay out model. Wages can be like a hidden dividend, if they are simply looking to pull money from members over to those they seek to pay out:  i.e. usually management, vs the actually financiers, who are often at the back of house in the financing structure.

In my opinion these private equity firms are targeting the timeshare industry now because they understand that they can raid them by simply jacking up maintenance fees by 20%, or even their required rate of 30% return, by simply hiding cost allocations within their structure, or simply paying their executives directly from the Club. There’s no stopping what they can do under some structures. It is a license for them to take what they want.

dollar man

As reported by Business Wire, “A class action lawsuit has been filed against timeshare developer Diamond Resorts International, timeshare owners associations Bali Condominium Association and Parkway International Owners Association, and auditor RSM U.S. L.P. alleging breaches of fiduciary duty, breach of contract, and professional negligence over billing practices for maintenance.”

The plaintiffs allege that the language addressing maintenance and management fees in the condominium association’s governing documents were outdated and ambiguous. The outdated language allowed the defendants to include subsequent amendments to:

  • Charge inappropriate maintenance fees.
  • Inflate management fees.
  • Hide inappropriate fees.
  • Charge costs unrelated to the maintenance and management of the timeshare development including an “indirect corporate fee.”

http://www.businesswire.com/news/home/20170629005705/en/Finn-Law-Group-Files-Suit-Timeshare-Maintenance

Bluegreen is exploring a possible Initial Public Offering. I asked Bluegreen member and Economics Professor Michael Nuwer if Bluegreen BBX Capitol falls into this private equity category.

http://www.otcmarkets.com/stock/BBX/news?id=167811

BBX Capitol is not a private equity firm. Alan Levan has had a significant ownership interest in Bluegreen since at least 2008. Something like 85% of BBX revenue and 75% of their income comes from Bluegreen.”  

squiggle

What falls from the mouths of timeshare company public relations departments in their message to the investment community often sounds like a foreign language to beleaguered timeshare members. New York, Tennessee, Colorado and Arizona Attorneys General settlements against timeshare companies are but the tip of the iceberg.

Thank you Justin, we look forward to more from our Australian cousins and your insights into this worldwide product called timeshare. No matter where you are, the story seems to be the same, you are the UP’s, you have the money and we will take it from you, but give you nothing but hassle in return!

It now just leaves us to say thank you to all who contribute to Inside Timeshare, a very big thank you to all the volunteer advocates of our advocacy group, who do a splendid job of helping others with their problems. Have a great weekend and we’ll be back again next week with more from the murky world of timeshare.

BBQ chef