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ANFI

Start the Week: Anfi Make the News Again; A New Contributor Joins Inside Timeshare

Welcome to Start the Week, on 11 August El Diario published another article surrounding the controversy of the man made beach at Tauro, which is part of the Anfi Tauro Beach Project.

El Diario has had access to a report on the ecological impact of the importation of sand from the Western Sahara, which under UN and EU sanctions is illegal. El Diario gained access to this report under the freedom and transparency regulations.

The report is from a study by the Biodiversity and Conservation Group, which is part to the EcoAqua University Institute of the University of Las Palmas de Gran Canaria. It looks at the impact of the Special Zone of Conservation (ZEP), Known as the Marina Strip of Mogan, an area about 300 meters offshore and covering an area of 30,000 hectares which extends along the southwest coast of Gran Canaria.

Due to the sedimentation caused by this sand, visibility is affected which will have an effect on the ecosystem as light is drastically reduced. This reduction is causing problems for the plant life as it affects their photosynthesis capabilities. There is also concern as to the introduction of minerals and other inorganic material which is also having consequences on the marine life of the Zone.

It was originally believed that the 70,000 tonnes of sand was actually coming from Las Canteras Beach in Las Palmas, but as we know it was actually imported illegally from the Western Sahara, with work starting in May 2016. This work was also started without the necessary documentation, licences and permissions in place, these were then falsified by the then head of the Coastal Authority months after the work began.

José María Hernández de León, was then sacked and is now facing trial, which the State Prosecutor is demanding a minimum of 3 years jail. The investigation is also involving Anfi as it is that company who has the concessions to the beach and also is undertaking the work to build it.

No doubt we will be seeing more prosecutions and possibly some very heavy fines, once the investigation is complete. For the full story click on the link below, open in google and use the translate facility.

https://www.eldiario.es/canariasahora/sociedad/aportacion-Tauro-Franja-Marina-Mogan-playa_de_Tauro-arena_saharaui-Franja_Marina_de_Mogan_0_801419852.html

PDF file of the University of Las Palmas Report.

ANFITauro_EDIFIL20180809_0001

We have also had the following story from one of our Anfi readers, it transpires that the Anfi Charge Card which members can use at the various concessions at Anfi, is no longer being accepted by certain bars and restaurants.

This charge card allows Anfi members to pay for food and drink without the need to use cash or their own credit cards, they are then charged at the end of their stay and clear the card with Anfi.

This is not a bad idea, but it does seem as though the businesses concerned are not having their bills paid by Anfi immediately, according to our information, they are having to wait several months before they are paid. This is obviously not good for the businesses, especially if the majority of members are using the card, the businesses still have their own bills to pay such as stock and the high rents for the locals. As we get more information on this subject we will inform you.

Inside Timeshare would also like to welcome a new collaborator, Wayne C. Robinson, an Inspirational Speaker, Author and Film Producer, you can see more about him on his website:

https://waynerobinsonproductions.com

Wayne is a former timeshare sales executive with many years of experience in the industry, he is also publishing a book called The Red Week Timeshare Book, covering everything you need to know about timeshare before, during and after the sale. It will also cover how to be rid of your timeshare for free. We will certainly be looking forward to reading this.

He has also sent us a copy of his publication entitled 13 Shocking Secrets; The timeshare industry does not want you to know. We have added a PDF copy below for you to read.

13 Shocking Timeshare Secrets

Or to subscribe click on the link below

https://l.facebook.com/l.php?u=https%3A%2F%2Fwaynerobinsonproductions.us16.list-manage.com%2Fsubscribe%3Fu%3D44c27217e62190e8ab52dc418%26id%3Da30a1ab1e0&h=AT2iQOYhL4_-aX_VBWKlWNXUlQIPvzjm2gEf_WCUm7ybAqiH-bVPp6dJfyfJna2tGxYgIY9RWIfrsDAgPPqfz4zQdQYzwHbakLP8CvHDZXLHkGBoGs20SHZxCXoP2ol4xyKsL0wsY1jkcgFFVoJY5mCeu6o5ea7ic8c

We hope to be able to publish some of his insights on these pages in the near future, so once again welcome to Inside Timeshare and the Diamond Resorts Owners Advocacy facebook page.

Tomorrow we publish another new contributor Della Morris, an Americano Beach Resort owner in foreclosure, with the introduction by our very own Irene Parker, so join us tomorrow for more on the “Nightmare on Timeshare Street” series.

Start the Week

Summary of the Royal Courts of Justice Tribunal Ruling by Judge Timothy Herrington.

This case was heard on 19 June 2018 and  revolves around a validation order made by the Financial Conduct Authority (FCA) which validates (makes legal) loan agreements taken out by clients of Azure Resorts Malta, using Barclays Partner Finance (BPF).

The loan agreements were made by Azure Service Ltd between 1 April 2014 and 24 April 2016, with this company not being authorised as a licenced broker to arrange or introduce clients to BPF. On finding out that these loan agreements were made by an unauthorised entity, BPF applied to the FCA to have the loans validated or made legal.

This validation order was issued, affecting some 1,444 clients and could cost Barclays around £47 million.

An appeal by the clients and their legal representatives forced the FCA to apply to the Upper Tribunal Tax and Chancery Division of the Royal Courts of Justice for a hearing on the legal implications and guidance to overturn the validation Order.

On 1 August 2018 Judge Timothy Herrington issued his judgement.

He ruled that the FCA did not take into account “Client Detriment” when they issued the validation order, his ruling was that the FCA re-evaluate that decision and take into account the client detriment.

He stated that the client detriment revolves around the following:

  1. Clients were not given sufficient information as to the terms and conditions of the loan agreement required by law;
  2. There were no major credit checks made as to the affordability of the repayments such as income versus outgoings reports;
  3. The length of the loan agreements were not explained, with client under the impression that they were for two years;
  4. Clients were pressured into signing these agreements;
  5. False representations were made to clients relating to the financial impact of regulated agreements;
  6. Clients were subject to long high pressure sales tactics to purchase the timeshares;
  7. Clients were sold timeshares which were not appropriate for them;
  8. Vulnerable consumers were treated inappropriately;
  9. Concerns about commission arrangements and disclosure thereof.

The FCA must now re-examine the original validation order and take into account the client detriment statements of the borrowers.

With this ruling it makes it almost impossible for the FCA to uphold the original validation order, therefore it must overturn the previous decision and rule that these loan agreements cannot be validated and are thereby unenforceable in law.

This means that all 1,444 clients will be entitled to be repaid all the money plus all interest paid.

Once the FCA issued a cancellation of the original validation order, this will no doubt have an effect on any loan issued by a timeshare company through BPF. Although the company brokering the agreement may be authorised, the points listed above may make it possible for any loan to be contested.

This will be of significant interest to all Silverpoint clients who entered into contracts under the investment weeks scheme.

At present it is not known how long the FCA will take to issue their findings.

Latest news surrounding Tauro Beach.

The scenes witnessed a few weeks ago of the destruction of homes situated on Tauro Beach have been the subject of many news articles, the local people are understandably very angry.

The destruction was carried out by a private demolition company with a not too savoury reputation, Desokupas, who were hired by the Cazorla‘s and Anfi to clear the area which they claim they own.

This was done without any apparent court orders, which leaves us to believe that the destruction may just be illegal, even if the land is owned by the Cazorla’s.

It does leave us to wonder how the members of the Anfi resort must feel about this, that the company they pay high annual maintenance fees can behave in such a manner?

Do they actually understand what is going on?

It also begs the question how the Ambassador for Anfi David Silva, the renowned footballer and local boy must feel about how the company he represents in advertising is treating his own people and neighbours?

Click on the links below.

https://m.eldiario.es/canariasahora/sociedad/situacion-vecinos-Desokupas-chabolas-Tauro_2_799340062.html

http://canarias-semanal.org/not/23270/un-comando-de-boxeadores-peninsulares-viaja-a-gran-canaria-para-derribar-chabolas-video-/

https://www.eldiario.es/canariasahora/politica/Nueva-Canarias-Ayuntamiento-Mogan-Tauro_0_800020281.html

For the full story of the whole project search Tauro Beach in the search box.

If you have any comments or questions regarding this or any other article, or if you need to find out about any company that has contacted you, then use our contact page and we will point you in the right direction.

Marriott Change Contracts to Bypass Spanish Timeshare Laws

Since January 1999, when Law 42/98 came into force, many timeshare companies continued to sell their product as they had before, this all change when these laws were challenged and the Supreme Court ruled on the definitive interpretation. This interpretation made many contracts illegal, especially on two main points, the duration of the contract was limited, allowing only for a minimum of 3 years and a maximum of 50 years, the Supreme Court also ruled that floating weeks and points systems were also illegal as they lacked any substance or a tangible product.

The unfortunate thing is that many timeshare companies still sell floating weeks and points, one company Anfi, has added a week number and apartment number in an effort to get around this, but the courts still rule that it is floating as the contract actually states that. Others are using another ploy to get around Spain’s strict timeshare laws.

Inside Timeshare has received from one of our German readers a new contract that Marriott tried to get him to sign in May, to replace his existing contract for Marriott Vacation Club Destinations Exchange Program.

This would not be a problem if it were to comply with the law as it applies to Spain, but as we explain it is not designed to do this, it is purely a way to circumvent the strict laws on duration, points and floating weeks.

What Marriott have done has already been tried with contracts sold by Diamond Resorts and Club la Costa, in the past these two companies have used UK, Isle of Man, British Virgin Islands or other offshore havens and registered as  Limited Companies. The contracts also have a clause which states that the laws of the United Kingdom and the Jurisdiction of UK courts applies. Even if the contract was sold, signed and paid for in Spain.

With the case of Marriott, they now use a United States Florida address on the contract, 6649 Westwood Boulevard, Orlando, Florida, 32821-6090. They have also included in the terms and conditions a very unfair clause, this relates to the possibility of taking any legal action against them. This clause is placed in section 8 on page 5 of the contract we have seen, below is a translation from the German contract.

“By joining this program, you waive your right, under applicable law, to go to court for any legal action or lawsuits that may be brought by or against MVCEC or its affiliates in any way as to its interpretation, design, validity, enforceability, or instruments, related to the program (including replacement procedures)”.

The original in German.

So what does this mean?

You as a purchaser will no longer have any recourse to take legal action against Marriott, when you find out that your contract is illegal in Spain and would be declared null and void in a Spanish Court.

This is obviously a blatant attempt to surpass the laws of Spain, which have been put into place to protect consumers from unfair contracts and purchases.

Points which are the basis of many timeshare contracts are illegal in Spain, but they are still legal elsewhere, the duration of the contract is limited to a maximum 50 years in Spain but perpetuity is still allowed elsewhere. By using this method to bypass the laws of the country where the purchase is made, does not protect the consumer. It goes back to lock them into never ending contracts and a points system that most find are unusable due to no availability.

This can be born out by many comments on various forums, below are just a couple found on Tripadvisor; (spelling mistakes are from the originals).

“Unless you live in the US, forget about investing in a Marriott timeshare. I have bought one weeks ownership in in the resort in Phuket. The resort as such is beautiful and it seems well managed. However if you dont want to go to your home-resort every year exchanging it through Interval becomes extremely difficult especially if you are looking at resorts outside the US. Interval has very few properties of similar standing in Europe or Asia, even the Marriott property in Marbella Spain is almost impossible to obtain in exchange.

I am so frustrated with the investment that iI am considering selling the ownership. Marriott offered my app. 15% of what I originally paid inspite of the fact that property prices in Thailand have gone up considerably. I can only say that buying ownershi at Marriott Vacation in Phuket was the worst investment I have ever made in my life.”

“It is difficult to give feedback on the use of it when the places you want to go are never available unless you book 13 months in advance. That is ridiculous. I don’t know anyone who books their vacations that far in advance. So, I’ve only used it once in Florida (Panama City Beach) which is on the bay side. It was nice, but not convenient being I wanted to be on the beach. I agree with the others, it’s not worth the money. I can stay in places just as nice for the $ and book closer to the date which is convenient for me.”

So for those who have in the past purchased in Spain, if your old contract shows that it was signed in Spain and indeed comes under Spanish law, you have a right to claim the purchase price back and have your contract declared null and void in a Spanish Court. If you sign the new contract you will lose this right, if you are a new purchaser, then the advice is don’t bother as you will have no consumer rights at all.

If you have any questions or comments on this subject or wish to know if your contract is illegal under Spanish law, then use our contact page and get in touch, we will get back to you as soon as possible.

In tomorrow’s Tuesday Slot we publish yet another Veterans “Nightmare on Timeshare Street”, this highlights their Tahiti Village Timeshare Experience. Inside Timeshare has been receiving many such stories from Veterans, serving members of the military and law enforcement officers, some of these have been published others have just related their stories and asked for help. The author of tomorrow’s story has requested anonymity we have complied with their request. So join us again tomorrow.

The Great Anfi Battle of the Partners Round 2

Back in March 2016, Inside Timeshare published the article The Great Anfi Battle of the Partners, this highlighted the long running arguments between the Lyng family and Santana Cazorla, the 50% partner in Anfi, who also controls the Board.

http://insidetimeshare.com/great-anfi-battle-partners/

It centered mainly around the disappearance 8 million Euros between 2012 and 2013, the diversion of these funds was apparently noticed  by the Lyng’s while a lawsuit was pending between Cazorla and Lopesan. This lawsuit revolved around a 14 million Euro debt, which Lopesan claimed was owed to them by Cazorla as they had bought the debt from the Cardenas family. This debt it is claimed was for the land which Cazorla purchased from Cardenas for the golf course and complex at Anfi Tauro.

Well the story has not ended there, round 2 is up and running.

Just recently the Spanish press has been running several stories on the continuing battle between Cazorla and Lopesan, it also involves the new head of the Costas, Rafael López Orive, who is facing charges of “Prevarication”. (For the full story on this click the link below).

https://www.elconfidencial.com/empresas/2018-07-22/anfi-canarias-direccion-general-costas-juez-investiga_1595609/

http://espiral21.com/santana-cazorla-demanda-a-ifa-por-fraude-en-la-compra-de-anfi/

In another twist in this long running dispute between the two major players in the tourist sector in Gran Canaria, Santana Cazorla has issued a lawsuit filed in June 2018 at the Mercantile Court in Las Palmas, involves Bankia, the public bank of the Spanish State and 6 million euros.

http://espiral21.com/bankia-rebajo-6-millones-a-lopesan-la-compra-de-creditos-de-anfi/

Apparently it looks like Bankia lowered the price for the purchase of credits from Anfi del Mar by Lopesan by 6 million euros and according to the lawsuit Cazorla states:

“Lopesan ha estado comprando créditos existentes contra las sociedades de Anfi y contra las empresas del grupo Santana Cazorla a diversas entidades bancarias”.

“Lopesan has been buying existing credits against the companies of Anfi and against the companies of the Santana Cazorla group to various banking entities.”

The situation between the factions is complicated and we will no doubt be seeing many more lawsuits and counter lawsuits being filed, this now begs the question, what does this actually mean for those members of Anfi?

When IFA Lopesan purchased their 50% share, it left many wondering where Anfi would be heading, would Lopesan if they do take full control turn Anfi into a hotel and do away with the timeshare model?

Looking at the history of Anfi and comments from members, since the Cazorla’s purchased their 50% share and took control of the board, Anfi has been seeing a slow decline in standards, a series of scandals and lawsuits, with the latest being the Tauro Beach Project. It must also be remembered that Anfi are also losing heavily in the courts for the past mis-selling of their timeshares.

What the future has in store for this once great resort, no one really knows, what we can say however is that it is going to be at a cost of millions of euros in legal bills, something the Anfi members should be very much aware of, yet we believe that they will as usual be kept in the dark and fed whatever “spin” Anfi can put on it.

https://www.abc.es/espana/canarias/abci-sandwich-holandes-lopesan-incordia-santana-cazorla-anfi-mar-201806210739_noticia.html

If you have any questions or comments on this article or even want to know if you have a valid claim to retrieve your purchase price and have your contract declared null and void, then use our contact page. Inside Timeshare will get back to you and endeavour to answer your questions and concerns with facts.

Tomorrow Friday’s Letter from America asks what the future holds for Americano Beach Resort after the hurricanes Matthew and Irma, this is from another new contributor Meryl Stefan, with the introduction by Irene Parker.

So join us for our last article of the week for more news and information on the world that is timeshare.

 

Marriott Admit Losing in Spanish Courts

On 7 July, Market Exclusive published an article reporting on the financial statements issued by Marriott. (See link at the end). After the preamble they began by announcing they had identified Fraudulently Induced Electronic Payment Disbursements”, which resulted in $9.9 million resulting from unauthorized third-party access to their email system. They duly notified law enforcement and relevant financial institutions, commencing an investigation.

They have managed to recover $3,2 million, but are hopeful they will recover the rest. Now this is just a start in their report.

They have also acknowledged they are recording pre-tax litigation expenses of $16.3 million, these are to settle in principle, two actions in their North American business with the Petrick action and an owners action brought by those with fractional interests at the The Ritz-Carlton Club, Lake Tahoe. It will also include actions by owners of Marriott timeshare interests in Spain.

The litigation on their Spanish business is a result of the laws Spain has brought in to protect consumers, this law known as Ley 42/98, was enacted in January 1999 and invalidated many timeshare contracts sold after that date.

Marriott, as many other timeshare operators believed, that by filing a deed of adaptation they would be able to continue as before, but they were sadly wrong. It took many years and court battles to get to the stage Spain is at now, the strongest timeshare laws in Europe.

Marriott Marbella

So what makes these contracts illegal?

Many timeshare operators continued to sell perpetuity contracts, when the law stipulates they should be of a minimum of 3 years and a maximum of 50 years. They also continued to sell the floating weeks and points systems, which gives the purchaser no actual rights apart from the right to use subject to availability. With the fractional ownership, the Supreme Court clearly regarded this as timeshare, as usage was dependent on a points system being allocated. Fractional was designed to “replace” timeshare with the promise of “purchasing shares and investing” in a real estate property, but again in Europe timeshare should never be sold as an investment.

We have seen over the past few years many other companies falling foul of this legislation, Anfi, Palm Oasis, Holiday Club / Puerto Calma and the Diamond run resort Cala Blanca in Gran Canaria, Silverpoint in Tenerife and a host of others all over Spain. Marriott is just the latest to be hit by timeshare owners becoming aware of the laws and finding they now have a way out of the never ending cycle of upgrades and maintenance payments.

Marriott, have also conceded that this litigation is going to cause them to incur considerable and “material and litigation” costs, along with the settlements and judgement costs. They have also admitted that it will have a severe effect on their results in the European sector and will have repercussions on their business and financial condition.

The one thing Marriott along with others in the industry are still saying, is they all disagree with these rulings, that the law as interpreted by the 126 rulings of the Supreme Court are wrong, they are seeking to introduce legislation “that will implement a more balanced approach”. More balance, or do they mean going back to when they believed they could not be touched and did exactly as they wanted.

Although they do go on to say the following “The timeshare laws, regulations and policies in Spain may continue to change or be subject to different interpretations in the future, including in ways that could negatively impact our business”. Negatively impact their business, well they only have themselves to blame, had they sold within the regulations, they wouldn’t have to worry about negative impact!

On this point of Marriott and others in the industry lobbying for a change in the law, this has now been set by the Supreme Court, the only way that the law can be changed now is for the Spanish parliament to pass new ones. This is very unlikely to happen, even if it were to happen, then we would end up with many years of court cases and appeals to the Supreme Court to clarify any new laws.

At present the law firm which is responsible for the clarification of the law with now 127 rulings from the Supreme Court, Canarian Legal Alliance, has many cases upcoming against Marriott. These cases are only now just starting to take place, CLA have at least 2 cases already presented at court with around 30 in the final stages of presenting to court. They are also looking into new clients cases, all these contracts are in perpetuity and use the point system, so this figure is surely set to rise.

On the point of the Supreme Court rulings, Canarian Legal Alliance began seeking clarification from the Supreme Court well over 7 years ago, they eventually received their first victory against Anfi in March 2015. This case involved the Norwegian client Mrs Tove Grimsbo, it was a long drawn out case, but the precedent had been set. Within weeks of this first ruling, many more followed, setting in stone the laws that for many years had been interpreted differently depending on the court and the judge presiding.

It will be interesting to see whether Marriott go the same way as Anfi, Silverpoint and others in constantly appealing against any rulings made against them, or will they just payout and cut their losses?

Only time will tell, we will certainly be keeping an eye on these cases.

Link to the original article:

https://marketexclusive.com/marriott-vacations-worldwide-corporation-nysevac-files-an-8-k-other-events-4/2018/07/amp/

Links to previous Inside Timeshare articles on Marriott:

http://insidetimeshare.com/tuesday-slot-irene-parker-marriott-racketeering-lawsuit/

http://insidetimeshare.com/starting-the-week/

If you need any further information on this subject, whether it be a Marriott, Anfi, Silverpoint or any other timeshare, then use our contact page and we will get back to you and point you in the right direction.

Have you been contacted by a company that tells you that you have a claim, and want to know if it is genuine and they are a legitimate company? Then contact Inside Timeshare for the facts.

Friday’s Letter from America

Welcome to this week’s Letter from America, today Sheila Brust gives us an update to her previous article “Pencil Pitch”, again edited by Irene Parker.

It would seem that Darth Vader has sent in his Imperial Stormtroopers and Inside Timeshare is under attack from the dark side, no problem, the force of the good is with us. Keep your stories coming, the truth will always prevail!

Now on with this week’s Letter from America

An Update to Sheilah Brust’s Pencil Pitch

The Florida Timeshare Division told us,

“You have no Proof” and we were not allowed a rebuttal

Why is this not proof?

July 6, 2018

Introduction by Irene Parker

Many potential timeshare buyers have watched timeshare sales agents scribble timeshare promises on a piece of paper. Buyers are not allowed to keep a copy of the “Pencil Pitch” but Sheilah Brust managed to walk out with hers.

Sheilah listened to her pencil pitch in Daytona presented by Diamond sales agent Brad Leslie. She filed a complaint with Florida’s Department of Business Practice and Regulation (DBPR) and was told the following,

As you are aware, alleged verbal misrepresentations are very difficult to prove in light of the written documents and disclosures.  In terms of evidence we rely on these documents to prove or disprove the allegations. The actions taken by other state agencies are not evidence of the alleged misrepresentations related to the sales transactions conducted in Florida.  Based on our review, it did not appear that the information provided to you by the sales agents were false and misleading. Lack of clarity could be an issue but that in itself cannot be considered a violation. We are not surely, if the sales agent had voluntarily provided the hand-written notes or you had kept them on your own.  If there are discrepancies between the notes and what was actually received in terms of points, we will address that issue.

By Sheilah Brust

My husband Thomas and I have been Diamond timeshare members since Diamond acquired our resort. Our original timeshare was purchased in 1994. Things were fine until we fell for the Pencil Pitch.   

On February, 4, 2017, we attended an update meeting at Diamond’s Daytona resort The Cove. We wanted to attend the update because Diamond had been sold to Apollo Global Management. We are Platinum Diamond members so already had more points than we needed, but wanted to hear about the changes.

Diamond sales agent Brad Leslie said that he had just returned from training in Orlando and had learned about a new program that would allow us double point usage. We patiently followed Brad’s presentation. He wrote the numbers upside down. I remarked at how he could he do that. He said practice.

We feel Diamond must not understand the Pencil Pitch or they would cancel this purchase. I have learned Diamond retained the law firm Duane Morris to write a letter implying our article was defamatory. I have submitted this article as our rebuttal. We understand the figures we were presented. We were not confused. I have an accounting background. I wrote down everything Brad Leslie said.

Here’s the pitch. We hope you post a comment expressing your interpretation.  

The actual Pencil Pitch is three pages long. Page 2 of the Pencil Pitch is based on 15,000 additional points instead of 25,000 points pictured above because we said no to 25,000 points. The numbers below reflect 65,000 points instead of 75,000.  For those not familiar with the point system, a Diamond timeshare points sells for around $4 a point.

Timeshare members incur annual maintenance fees. For Platinum members the annual maintenance fee is $.15 per point, or $8,631 for the 50,000 points we owned before the purchase of 15,000 additional points.

From the original illustration above, to offset maintenance fees, on the right side of sheet, Brad said and wrote:

  • Own 75,000 points
  • Ability to get (Double Usage) 150,000 points – 50,000 points is what would be left for travel
  • 100,000 points would be available for point redemption @ 10 per point through a Travel Reimbursement program. Brad told us to book hotels, etc., and then cancel the reservations. We would receive a reimbursement check back for $10,000. The 50,000 points tendered would not be credited back. Brad said we would be reimbursed via check in about 30 days or 72 hours if via a reloadable debit Visa card. Without the double points, this program is of no value. If we used all our 50,000 points for redemption at $.10 a point, we would receive a reimbursement check for $5,000 that would only pay $5,000 towards a $8,631 maintenance fee bill with no points left for travel.

Brad said we could use the reimbursement check to pay maintenance fees but he said he could not tell us that. He said, “It’s your money!”

Brad said we paid $8,631 in maintenance fees for 50,000 points in 2017.  Following Brad’s logic, we could eliminate $8,000 of the increased $11,252 maintenance fee (due to the purchase of 15,000 additional points), by taking advantage of this new program.

65,000 own                 $8,631 current maintenance fees before 15,000

65,000 given              2,621 maintenance fees on the new 15,000

130,000 points            $11,252 Total maintenance fees with new 15,000

50,000 if used            8,000 Less reimbursement check

80,000 left                 $3,252 Maintenance fees still owed       

x $.10 reimbursed     EXCEPT THERE WAS NO 65,000 POINTS GIVEN!

$8,000

Brad said Diamond was working on a new member page for the new program that would have a split screen and that we would be able to see our newly acquired 15,000 points in the background. He said the 65,000 points “given” (Brad’s word) would also appear on a “split screen” on our member account page.

When I asked about the maintenance fees on the new 15,000 points, Brad said, “If you don’t use them you don’t pay maintenance fees on them. They will be kept in the background. If you want to use them then you will pay maintenance fees.”

I specifically asked Brad, “So if I had all 130,000 points reimbursed, they could all be redeemed for a check? Brad said, “Yes.”

I asked Brad why this program was developed. He said Diamond wanted to make sure we STAYED VACATIONED.     

We met with Brad again in May 2017. Brad said the program had changed. Brad said Diamond was getting rid of the debit cards because there were problems. He said DRI was working on the split screen. He said now we would need to generate the reimbursement checks by participating in the Travel Reimbursement program. I was familiar with this program and had used it before. This was a benefit we already had as Platinum members, but only beneficial if we were to lose points. We feel Brad adulterated the Travel Reimbursement program, incorporating it into his February Pencil Pitch.  

Brad’s reply to our complaint submitted to the Florida DBPR was that 15,000 points in the background was for a Dream Vacation. He said I was confused! Dream vacation points were not in any background account. They were added to our account February 17, 2017 so these could not have been the points in question. Brad sent us a $2,621 check to reimburse us the maintenance fees on the newly purchased 15,000 points. If it wasn’t for the NEW 15,000 points, we never would have gotten a $2,621 reimbursement check for the maintenance fees. Diamond representative Brandi said sales agents are allowed to reimburse members for their first year’s maintenance fees. Dream Vacation points don’t have maintenance fees.

Of course Brad was selling a double point program. He wrote down 130,000 and called the 65,000 points “given” points. I had told him that this program better be right because we are retired and living on fixed incomes and that we had NO extra money if he was not telling us the truth.  His answer was that he hoped to rebuild our trust in Diamond. We had told him we had been duped previously, told we had to buy 4000 points to prevent our heirs from being stuck with Diamond points.

Diamond’s response to us was that the information as presented was confusing, but not illegal. This is the CLARITY promise Diamond launched in response to Arizona Attorney General Mark Brnovich’s issuance of an Assurance of Discontinuance.  

The CLARITY Promise: With this clear, concise and consistent information, consumers can easily determine whether the Diamond Resorts hospitality experience is the right decision for them and their families.

https://www.businesswire.com/news/home/20170123005839/en/Diamond-Resorts-Launches-New-National-Customer-Service

Diamond’s Response:

On April 5, 2018, we received a call from a DRI Hospitality agent. She said our complaint had been escalated to the legal team and they found no wrongdoing. This is part of what she said to us.

I definitely agree that your confusion of that process is warranted. I have spoken to our legal team and sales team and we agree the double point explanation is definitely something that could have been misconstrued or seen as confusing by members or purchasers.

We have made changes to the way that information is given at the time of sale but we have to say the stance we take on this is: because there may have been some confusion on how you may use those points to create a savings for yourself doesn’t make the explanation illegal.

Summary

As a result of this upsell and lack of clarity, we have less time to travel because we have to work to pay for the additional points that increased maintenance fees to $11,252. We have a loan with Diamond for $31,000 and $26,000 Barclay Card balance.

Brad charged on two Barclay Cards $14,000 in my name and $12,000 in Thomas’ name. He had us fill out a credit card application to see if we qualified for the new program. He returned and said, “Barclays loves you! You got $26,000 credit!” I was livid after I learned we had been charged these amounts. We could have used a different credit card that would have gotten us rewards points.  

This whole deal was based on having 130,000 points using points at $.10 a point for a Travel Advantage reimbursement service taking advantage of 65,000 bonus points. You can book a lot of vacations with 50,000 points that would vastly exceed a measly reimbursement check for $5,000. You can stay a week for roughly 2500 to 5000 points. At an estimated 4000 points per week, about 12 weeks.       

What CLARITY?

According to the Federal Trade Commission Section 5

An act or practice is deceptive where

  • a representation, omission, or practice misleads or is likely to mislead the consumer;
  • a consumer’s interpretation of the representation, omission, or practice is considered reasonable under the circumstances; and
  • the misleading representation, omission, or practice is material.

https://www.federalreserve.gov/boarddocs/supmanual/cch/ftca.pdf

From the Arizona Attorney General’s Assurance of Discontinuance:

IV Assurances

“Diamond shall enhance its programs, policies and training and continue to instruct and train its Vacation Counselors and Sales Managers to comply with the ACFA (Arizona Consumer Fraud Act). Diamond shall advise all Vacation Counselors and Sales Managers that they may not:

 

  1. Sales agents should not deviate from sales material
  2. Sales agents should not make oral representations at the point of sale inconsistent with the Purchase document.

 

 

https://www.azag.gov/press-release/attorney-general-brnovich-announces-800000-settlement-diamond-resorts

http://www.timesfreepress.com/news/business/aroundregion/story/2018/jun/17/whconsider-when-buying-time-share-vacatispot/472994/

Contact Inside Timeshare or one of these self-help groups if you need help with a timeshare concern or would like to share your experience.   

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 Sheila for your candid story, it just amazes us that this type of sales practice still goes on, yet the companies involved deny all responsibility for their sales agents actions. In Europe timeshare is very much on the decline, partly due to the antics in the past of unscrupulous sales reps, not all I hasten to add, I do know many who abhor the deceitful practices and are genuine in their approach to selling the product. They believe that telling the truth sells the product.

We have said this on many occasions, timeshare was and could be a good product, it may not suit everyone but sold properly and truthfully will only strengthen it and give it a future.

So we say to all timeshare companies, get your house in order, reign in your sales agents / reps, stop these types of sleazy sales presentations, take control or you will lose a product that could work.

News has just come in from Canarian Legal Alliance of this weeks court cases, on the receiving end are Anfi in Gran Canaria once known as the flagship of timeshare resorts in Europe and Silverpoint in Tenerife.

The Court of First Instance in Maspalomas, Gran Canaria, has had NINE sentences passed against them this week. The clients will receive back all their money and have had their contracts declared null and void.

In Tenerife, Silverpoint, who are well known on these pages has lost another case in the Court of First Instance in Arona. Again the court ordered the return of all money and the contract declared null and void.

In total these 10 cases will cost these timeshare resorts over 325,112€ plus legal interest and in most cases the return of the client’s initial legal fees.

So the week ends with another “Black Cloud” hanging over the timeshare industry. Will they ever learn?

Inside Timeshare welcomes your comments and stories, if you would like to share these with the rest of the timeshare world, then use our contact page and get in touch.

So that is all for this week, join us on Monday for more news and views of the timeshare world, have a great, enjoyable and safe weekend.

Thursday News

Now we are in July the legal world will start to slow up in Spain, the courts are beginning to wind down for the August break, but there will still be some news as sentences are issued for cases previously heard.

In the Court of First Instance Number 4, in Maspalomas San Bartelomé de Tirajana, Anfi have been on the receiving end of a very severe sentence, this particular one shows the courts are not taking it lightly when timeshare companies break the law.

The Court House Maspalomas

In this case Anfi have been ordered to payback double the amount paid within the cooling off period, this can range from 10 days to 90 days. The law states that no payment shall be taken within this cooling off period even by a third party such as a trustee, which many timeshare companies have tried to use to get around this law.

This follows the Supreme Court rulings which created jurisprudence in 2015 in favour of the clients. This has been confirmed many times in Spain’s highest court and has been followed judiciously by the lower courts.

The clients in this case have also had their contract declared null and void but will now receive over 63,000€ plus legal interest.

The Spanish Timeshare Law 42/98 has been in existence since 5 January 1999, yet until recently the timeshare companies thought they were immune, since March 2015 and the very first ruling by the Supreme Court, they have found they are not as powerful or immune from sanction as they thought. Now with around 124 rulings the odds are firmly stacked against all contracts which have infringed the law, leaving the timeshare companies to pay back millions of Euros to clients. (See PDF below for the full court sentence).

1st N4 Anfi data protected (ves)

In further news from the Supreme Court, they finally issued their ruling in a case against Puerto Calma, in Gran Canaria. They have upheld previous judgement that the contracts which were issued were illegal under Spain’s Timeshare Law 42/98. This follows all other rulings from the highest court in Spain, declaring the contract null and void with the client being awarded over £11,000.

It looks like David Cox may have resurfaced, a new post has just gone up on his website, this lists “cases” won in court for his many clients since July 2017 upto April 2018. At first glance it does all look very impressive with the figure being shown, but it is when you actually start looking at the list the questions then begin.

Every single entry is worded the same, “Mr & Mrs X won damages, interest and costs in the amount of £xxxxx”.

There is no mention of which timeshare company, which court the case was held in and no mention of what the infringements of the timeshare laws had been. There is also no mention of which lawyers or law firm had conducted the cases.

Surely if you were looking for credibility you would show these details and the court sentence papers on at least some of the entries. So could it be as he has claimed of others that these are all Bogus?

Another fact which is rather disturbing is his companies adverts on the forum Timeshare Talk, which is owned by Mark Rowe. The reason this is disturbing is we all know that David Cox had a falling out with his former partner, posting many scathing comment about Mark Rowe companies, then they all disappeared!

Have they now kissed and made up, it certainly looks like it.

As usual we leave you the reader to make up your own mind.

If you want to know about any company that has contacted you or have found on the internet, then contact Inside Timeshare, we will help you get to the truth.

Join us tomorrow for our Friday’s Letter from America where we give you an update on “Sheilah’s Pencil Pitch” article, with an introduction by our very own Irene Parker.

Starting the Week

Welcome to our first article for July, we start this week with some news from the Courts in the UK.

On Tuesday 19 June at the Royal Courts of Justice, The Upper Tribunal, Tax and Chancery Division, sat on hearing brought by the Financial Conduct Authority and Barclays Partner Finance. Presiding over the case was Judge Timothy Herrington.

The case centers around a petition to the FCA by Barclays Partner Finance to issue a validation order for finance agreements made between April 2012 and April 2014 for loan agreements involving timeshare sales in Malta.

It transpired that the company which brokered the finance agreements, Azure Resort Services Limited, were not authorised or licenced by Barclay Partner Finance. They approached the FCA to have these validated and claimed that no consumer detriment had been caused by this.

The FCA did issue a validation order on the evidence it had from Barclay Partner Finance, they then received many complaints from many of those affected, this numbered around 1,444 clients.

On investigation it was found that consumer detriment may well have been caused with the new evidence coming to light. But the FCA felt it did not have the authority to reverse the validation orders and the case went before the Tribunal to have the validation orders reversed.

Canarian Legal Alliance along with other law firms representing clients had representatives in court. In the case of the CLA client, the loan agreements was for the purchase of multiple timeshare weeks. These were upgrades to original purchases in the “investment” packs being sold by Azure Resorts, which is the Malta arm of Silverpoint in Tenerife.

These multiple weeks were sold with a promise that a resale program would be put into place, then after two years they would be sold and the “investors” would be able pay off the loans with the money they would make on the sales.

As we know this ploy has been going on for years in Tenerife by Resort Properties / Silverpoint, which are subject to many cases going before the Tenerife Courts and the Supreme Court in Madrid. These sales have never taken place.

The CLA client was given a loan of over £20,000 to finance the purchase, they were misled into believing that the weeks would be sold and the loan agreement would be only for a two year duration. In fact the agreement was for a 15 year repayment term.

It is also known that the clients who were 75 at the time of signing had the loan approved within days of signing. At no time were they asked for any proof of income versus outgoings reports. These clients also signed the purchase agreements and the loan application forms after more than 5 hours of intense high pressure sales. They also felt they had no choice but to make these purchases so as not to lose out on money previously “invested” for weeks which had not been sold. The excuse they were given was what they had previously purchased were not selling as they were not the type of weeks and apartments which people wanted to buy.

The Judge presiding over the case then adjourned the hearing for deliberation, a verdict is yet to be announced.

If the validation order is reversed by the court, then this leave Barclays Partner Finance in a very difficult position, the upshot is if these agreements are not validated then Barclays Partner Finance cannot pursue the borrowers if they decide not to continue the payments. The lawyer for BPF assured the Court that until the judgement, BPF would not enforce the agreements for those who have defaulted.

This also leaves many other questions regarding finance agreements for timeshares, how many more have been made by unauthorised licenced brokers?

It also poses the question of ability to afford the repayments, especially when these agreements have been approved within days of signing, how many have been granted the loans without showing any proof of income versus outgoings reports?

Shawbrook Bank acknowledged this back in 2016, which we reported in an article in July that year, the CEO also resigned over this matter. (see links below)

http://www.telegraph.co.uk/business/2016/06/28/shawbrook-banks-shares-plunge-on-9m-hit-from-dodgy-lending/

http://www.thisismoney.co.uk/money/markets/article-3663651/Shares-Shawbrook-drop-challenger-bank-reveals-loan-irregularities-cost-9m-finance-chief-quits.html

Now for some news from the Spanish Courts last week.

The Supreme Court in Madrid issued two more rulings against the timeshare industry, number 123 and 124. These once again involved Silverpoint SL in Tenerife, they also lost in two cases in the Courts of First Instance held in Tenerife.  

In cases held at the Courts of First Instance in Maspalomas, Anfi were on the receiving end, with contracts being declared null and void and being ordered to repay the clients their purchase price back.

Diamond were also on the receiving end of a Court of First Instance ruling, again the contract was declared illegal and therefore null and void.

With these 7 cases the timeshare industry has been ordered to repay over 160,000€ and in most case legal fees and legal interest.

The lawyers involved in all these cases are the lawyers from Canarian Legal Alliance.

If you have any comments or questions regarding this or any other article use our contact page and get in touch.

Been contacted by a company or found one on the internet and you are not sure about them, then contact Inside Timeshare and we will point you in the right direction.

Friday’s Letter from America

Welcome to this week’s Letter from America, today we highlight two families who have been up-sold by Diamond, Gad and Noreen Liebmann who are staging a protest outside Diamond’s Daytona Beach Resort and Sheilah and Thomas Brust. These stories are another in the series of  “A Nightmare on Timeshare Street”, but first a quick roundup from Europe.

It has been reported that yet another “Relinquishment and Claims” company is in liquidation, Standon Mortimer Associates. This company is one in a long line that informed clients that they could lodge a “no win no fee” claim against their timeshare, the only thing was to do this they had to “relinquish” their membership first. Obviously this was a great cost.

Once the membership was canceled then they would put in a claim, usually under section 75, which as we have said before is not likely to pay out. The whole scam was to get your money for the cancellation, which in many cases was never actually done.

If you have paid this company to carry out any work regarding your timeshare and it has not been done, contact the liquidators below:

Name of Company: STANDON MORTIMER ASSOCIATES LTD

Company Number: 10437622

Nature of Business: Timeshare Relinquishment

Type of Liquidation: Creditors’ Voluntary Liquidation

Registered office: C/o Kingsland Business Recovery, 14 Derby Road, Stapleford, Nottingham, NG9 7AA

Liquidator’s name and address: Tauseef Ahmed Rashid, Kingsland Business Recovery 14 Derby Road, Stapleford, Nottingham NG9 7AA

Office Holder Number: 9718.

Date of Appointment: 18 April 2018

By whom Appointed: Creditors

Further information on Silverpoint or is it Signallia Marketing has just come in, apparently a representative from Signallia is knocking on the doors of guests at Hollywood Mirage and arranging appointments with none other that Aspirantco SL. We will be publishing the story of this meeting next week.

There are this week a couple more happy ex-timeshare owners, the first is an ex-Anfi member, who this week had over 53,000€ paid into his bank account after his recent court case where his contract was declared null and void.

This does fly in the face of the Anfi management denying that anyone is getting paid, according to Canarian Legal Alliance, Anfi have actually paid out 2 million euros.

In another case a German client who purchased his Anfi del Mar timeshare for 14,000€ had his contract declared null and void, with thcourt awarding him over 23,000€ plus legal interest. This is a result of Anfi taking a deposit within the cooling off period which is forbidden, so the court awarded double the amount taken.

Now on with our Friday letter.

A Report from Two Diamond Resort Platinum Members Up-Sold by the Same Daytona Sales Agent

Sheilah Brust warns: Keep The Pencil Pitch

Gad and Noreen Liebmann: Up-sold into financial disaster

There is no such thing as the “Ability to get (Double Usage)”

Page 2 of the Pencil Pitch is based on 15,000 points actually purchased instead of 25,000, so 65,000 points illustrated instead of the 75,000 first proposed

65,000 own                $8,631 current maintenance fees before 15,000

65,000 given                2,621 maintenance fees on the new 15,000

130,000 points            $11,252 Total maintenance fees with new 15,000

 50,000 if used            8,000 Less reimbursement check

 80,000 left                  $3,252 Maintenance fees still owed       

x $.10 reimbursed     EXCEPT THERE WAS NO 65,000 POINTS GIVEN!

$8,000

The CLARITY™ Promise handed out before sales presentations:

With this clear, concise and consistent information, consumers can easily determine whether the Diamond Resorts hospitality experience is the right decision for them and their families.

https://www.businesswire.com/news/home/20170123005839/en/Diamond-Resorts-Launches-New-National-Customer-Service

Diamond’s Response to Sheilah Brust:

On April 5, 2018, we received a call from a “hospitality” agent. She said our complaint had been escalated to the legal team and they found no wrongdoing. This is part of what she said to us.

I definitely agree that your confusion of that process is warranted. I have spoken to our legal team and sales team and we agree the double point explanation is definitely something that could have been misconstrued or seen as confusing by members or purchasers.

We have made changes to the way that information is given at the time of sale but we have to say the stance we take on this is: because there may have been some confusion on how you may use those points to create a savings for yourself doesn’t make the explanation illegal.

By Irene Parker

June 8, 2018

Gad and Noreen Liebmann were up-sold by the same Daytona Regency sales agent as Sheilah Brust. Gad and Noreen have been protesting outside the Daytona Regency by holding up signs an hour or two every day except Sunday for over three months. They will take a few months off to go up north, but plan to resume their protest in September.

In preparation for this article, I felt it was important to get a feel for what it was like to hold up a sign. As we walked to Daytona Regency from our cars, Gad and Noreen dropped off food for a homeless man. Gad told us, “One of the homeless was offered $20 to ‘get rid of them’ and on another day one of the salesmen brought some water and wanted to “thank us” for picketing. He claimed that our presence increased their sales. He also told us that we could have more effect by working as greeters at Walmart to help pay our dues.”  

My husband and I weren’t sure what to expect. We arrived about 11:00 AM, Friday June 1. We were greeted by the security guard. He could not have been nicer. He seems to serve as a sort of diplomatic liaison between Gad and Noreen and the staff at Daytona Regency. He patiently listened to me relate some of the more serious allegations timeshare members have reported to Inside Timeshare, 208 since January 1. He said he has not purchased Diamond points.          

Inside Timeshare has heard from a total of 32 Diamond Platinum members, alleging they were up-sold by deceitful sale tactics or are disappointed in their Platinum membership. Of the 32 Platinum members, 29 members reported they were told they would be able to sell points, or pay for maintenance fees, if they purchased more timeshare points; utilizing programs members say did not exist. Thirteen of the 32 Platinum members say they have resolved their dispute. Eleven were up-sold by the same Diamond sales agent.

Pictured from left: Noreen, Irene, Tyler and Don

The sign my husband Don is holding reads,

Diamond is not responsible for what our sales agents say.”

This was told to Diamond member Joshua Parker (no relation) by a Diamond VP on a call Diamond recorded. Josh says he was told points are an investment and would be easy to sell. When Josh and Nichole learned they were expecting twins and could no longer afford the timeshare, they learned there is virtually no secondary market for Diamond points. Josh is a 90% disabled Army veteran. He served in Iraqi. They are in the foreclosure process.

John Collick, a decorated 100% disabled Marine veteran, was told he needed to buy Diamond points because Diamond was acquiring his timeshare, The Colonies. This turned out not be true.

Josh and John were both told, Diamond is not responsible for what our sales agents say.” That would be okay, except Diamond hands out to consumers before a presentation their CLARITY™ promise, launched after Arizona Attorney General Mark Brnovich issued the company an Assurance of Discontinuance.

Amanda and George Jones are both active duty Navy. They recently received their foreclosure letter. Both fear losing their Security Clearance. They say they were told by Diamond sales agents in Virginia and Florida their 18% loan would be easy to refinance, “Just Google it.” http://insidetimeshare.com/tuesday-slot-irene-3/

Today, June 6, 2018, another Navy couple contacted Inside Timeshare. They too could lose their security clearance as they are Navy logistics.   

Sheilah and Thomas Brust’s “Double Point Promise” complaint

Sheilah says she and her husband Thomas were promised double point usage if they upgraded by buying 15,000 additional points. Already Platinum members with 50,000 points, they had enough points to meet their travel needs.

Sheilah and Thomas met with Brad Leslie on February 4, 2017.  Mr. Leslie said there were big updates due to Apollo changes. Brad said he had just learned about the double points program in Orlando while in training. Another Florida DRI sales agent pitched a double points program to a Navy veteran. Her complaint has been resolved:

We were hosted by the Diamond Resorts East Coast Sales Team from Mystic Dunes. They said we had been invited to the workshop as a way to thank us for having been Platinum members for over five years. Mystic Dunes sales agent A M explained details of a program only available to five plus year Platinum members. A M said if I purchased an additional 25,000 DRI points, I could take advantage of a special offer and never have to pay maintenance fees. He illustrated on paper how the program worked.   

57,500 points I owned prior to the workshop

25,000

82,500 x 2 (double points) = 165,000

Back to Sheilah’s “Pencil Pitch”

Brad Leslie said that over ten years our maintenance fees would be $86,310. According to Brad, we would have 65,000 points after buying 15,000 more points but DRI would give us 65,000 more – so we would have effectively 130,000 annual points. Of the 65,000 original points, we would use 50,000 and the purchase of an additional 15,000 points would allow us the extra bonus 65,000 points. Brad said we would receive via check or reloadable debit card $8,000 from the redemption of 80,000 points at $.10 through a travel reimbursement program that could be used to pay maintenance fees. If we redeemed 80,000 from the 130,000, we would be left with 50,000 points to travel.     

I asked Brad why this program was developed. He said Diamond wanted to make sure we STAYED VACATIONED. Now it seems more likely he wanted to drive us into foreclosure to be able to start over with his next victim.  

As a result of this up-sell, we have less time to travel because we have to work to pay for the additional points that increased maintenance fees to $11,252. We also have a loan with Diamond for $31,000 and the $26,000 Barclay card charges.

Brad charged on two Barclay cards $14,000 in my name and $12,000 in Thomas’ name. After he opened the cards, Brad said,Barclays loves you! You got $26,000 credit!” I was livid after I learned what happened as we were unaware the amounts had been charged. We could have used a different credit card that would have gotten us rewards points.

We saw Brad again in May 2017. Brad said the program had changed. Brad told us in February we would be sent a debit card that would be reloadable for the maintenance fee reimbursement program. Brad informed us in May that DRI was getting rid of the debit cards because there were problems. Brad had said the double points (65,000) would appear on a split screen on our dashboard. He said DRI was still working on the split screen. This program only made sense if we received the additional 65,000 points. I wrote down everything Brad said. I have an accounting background.   

This whole deal was based on having 130,000 points using points at $.10 a point for a Travel Advantage reimbursement service, but this was of very poor value and only made sense because of the extra bonus 65000 points. You can book a lot of vacations with 54,259 points that would vastly exceed a measly reimbursement check for $5,425.90.

Brad assured us he would be here for us and hoped he could restore our trust in Diamond. We had explained how we had been duped into buying 4000 more points in California so our heirs would not be saddled with Diamond points.

Diamond has refused to help Sheilah, but she is encouraged by a call from her Florida Timeshare Division reviewer supporting her claim.

Gad and Noreen’s debacle

Gad and Noreen own 96,000 Diamond points, only because they bought an additional 25,000 points to take advantage of benefits they now know they already had. Gad and Noreen are both Army veterans. Noreen served as an Army officer in the nursing corps. Gad, also an Army veteran, worked for IBM and VISA, at times stationed overseas. The Liebmanns have nine children, not counting children they fostered. According to Gad,  

For over 20 years we enjoyed using our Diamond points. We had purchased eight Diamond contracts over the years and had been happy until Daytona sales agent Brad Leslie sold us 25,000 points November 22, 2017, we allege by fraud.  Brad told us that if we purchased 25,000 additional points for $70,000 we would get additional benefits. He showed us how using these benefits, we might not have to pay more maintenance fees if we used the same amount of vacation time. What Brad Leslie neglected to tell us was that we were already eligible for these benefits. He knew this. He also claimed that we could recover the cost of the additional points after 10 years. This was also false. Brad said that we would be even on the $70,000 within ten years if we only booked through Value Getaways.

A call to Diamond CEO Michael Flaskey got a response from a lady who offered to allow us to give back some of our points, lowering the dues but not eliminating the latest purchase.  In other words, give back points we already paid for, requiring us to pay the company $70,000 after being sold points to take advantage of a program we already had. We may be older, but we’re not stupid.

We have used all of our 2018 points for redemption reimbursement and with the over $700 monthly mortgage payments, we can no longer use Diamond points for vacations. Since we can’t afford to travel because of this debacle, we thought we should warn others by holding up our signs. I feel America is in a moral crisis when CEOs feel no concern when people complain directly to them of questionable business practices. My heart is heavy since the DRI salesman Brad Leslie professed to be a Christian, as I am.

Gad and Noreen protesting outside Daytona Regency

Thank you to Gad and Noreen and Sheilah and Thomas for joining our advocacy efforts. I reached out to Diamond for comment, but they did not respond. We were hoping they could explain Sheilah’s pencil pitch.  

Many timeshare members feel there is little to no timeshare enforcement in Florida. According to several members, Florida dismisses complaints, backing up the developer by also falling back on the oral representation clause. Florida receives about $70 billion a year in tourist revenue.

From the Florida Attorney General’s Timeshare Division DBPR

Timeshare developers are required to provide full and meaningful disclosures to purchasers in the documents they are required to deliver to them including the public offering statement, sales contract, and all supplemental documents at the point of sale.  A document called “Acknowledgment of Representations” or “Purchaser’s Understanding” or a similar document provides the disclosures which each purchaser initials and signs at the time of purchase and it contains all the relevant information about the timeshare product.  A developer heavily relies on these documents to refute any claims by a purchaser regarding the alleged misrepresentations. Therefore, in light of these written documents, it is very difficult to prove the allegations raised in the complaint.  

From the Arizona Attorney General’s Assurance of Discontinuance:

IV Assurances

“Diamond shall enhance its programs, policies and training and continue to instruct and train its Vacation Counselors and Sales Managers to comply with the ACFA (Arizona Consumer Fraud Act). Diamond shall advise all Vacation Counselors and Sales Managers that they may not:

  1. Sales agents should not deviate from sales material
  2. Sales agents should not make oral representations at the point of sale inconsistent with the Purchase document.

https://www.azag.gov/press-release/attorney-general-brnovich-announces-800000-settlement-diamond-resorts

Contact Inside Timeshare or one of these self-help groups if you need help.

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/

That’s it for this week, Friday is here and the weekend is about to start, join us next week for more readers stories and their experiences in the world that we call “A Nightmare on Timeshare Street”.

We will also be publishing more information on those companies that keep springing up promising the earth and delivering nothing, so remember if you are called and are not sure if the company is genuine, do not do anything until you have done your homework, double check and check again.

If in doubt contact Inside Timeshare and we will show you where to look.

Have a great weekend.

Mid Week News

Inside Timeshare has received information from one of our readers involving Silverpoint in Tenerife, it is to do with the so-called “Company Participation” scheme they have been selling.

In this scheme, the clients for considerable amounts of money, in many cases in excess of more than 150,000€, clients purchase not shares but “participations” in companies set up to hold “freehold” apartments, which will then be rented out by Excel Resorts. (Allegedly).

Having seen the documents for this scheme, it doesn’t leave much to the imagination that they are not in the best interest of the clients.

This reader has been contacted by Ali Farhoud one of Silverpoints sales people by email, in this he tells the client what we already know, that Excel Resort Management have cancelled the rental contract with Silverpoint.

This does look like Silverpoint are no longer in a position to generate a sufficient rental income to satisfy their contractual promise to their clients who have purchased the participation scheme.

Apparently Mr Farhoud told our reader that he had helped clients sell their apartments with genuine sales companies. But he also added that many companies had said that the apartments with leases concluded with Excel were not saleable.

He has taken on the services of a lawyer, (we wonder if it is the same one Silverpoint use), on behalf of the clients and that the necessary Power of Attorney was being sought from the clients.

Having studied this scheme and reading the documentation, it is Inside Timeshares opinion that extreme caution should be exercised before signing any power of attorney. Do not rely on any lawyer appointed on your behalf, as with any business or property transaction you should always engage your own independent legal advice.

Continuing with our David Cox / TESS theme, we have just been told that it looks like Mr Cox is about to retire and that he is trying to find a buyer for his pathetic excuse of a company TESS Para Legal Ltd! To be perfectly honest who would purchase any company that has been associated with this individual?

It also begs the question where is this going to leave all his clients?

You have seen the list of his history with different companies, not the most impressive CV with many leaving debts in their wake!

He also seems to be a bit of a delusional character, a Walter Mitty if you like, according to Company House records he is Director of the following company:

D & B Cox Ltd, Company number 10658737

Tudor Croft 39-41 Headroomgate Road, Lytham St Annes, England, FY8 3BD

D & B COX LTD – Overview

According to the records the company is listed with its activities as:

80300 – Investigation activities

82990 – Other business support service activities not elsewhere classified

So does this mean he is also a “Private Detective”?

The address given is also very interesting, according to Google Maps and Street View, it is comprised of two rather large detached houses, number 39 and then number 41, two separate properties.

According to Zoopla, number 39 has a value of £411,000 and was last sold in August 2007. Number 41 has nothing listed for price or when last sold.

So either the registered address for his company is the two homes, or he has not been economical with the truth when registering his company!

On that point we leave it for you the reader to decide!

The Court of First Instance No 2, in Maspalomas, Gran Canaria, has just issued the following sentence. Anfi have been ordered to repay one of their clients a total of 70,000€ plus legal interest, with the contract being declared null and void. The infringement of the law in this particular case is the length of the contract, it was one in perpetuity, when the law only allows for a maximum period of 50 years.

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