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Assurance of Discontinuance

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, we decided to run with this particular article following the news from Europe on Monday that Diamond was closing its sales offices in Europe. Obviously this will have a great impact on the many employees, who are now out of work and will need to find jobs in an ever decreasing sales industry.

As usual before we go on with our article, this week has not been a very good one for Silverpoint in Tenerife, with another loss at the High Court and also at the Supreme Court.

The judge at the High Court Number 2, found serious breaches of the timeshare laws, declaring the client’s contract null and void and ordering the return of over £49,000 plus legal interest.

At the Supreme Court in Madrid, the judges upheld previous rulings and declared another Silverpoint contract null and void. This particular client will now receive over 28,000€ plus all legal fees and legal interest. Another happy ex Silverpoint owner.

As usual these were clients of the Arguineguin law firm Canarian Legal Alliance. So this does go to show that in spite of what many timeshare companies are claiming, such as the article published on Wednesday about Anfi attacking CLA, this law firm is doing what it says.

CLA Logo

Now on with Friday’s Letter.

Inside Timeshare leapt at the chance to publish details of CLARITY, Diamond Resort’s program to promote accountability, transparency and respect for the Customer. The program was introduced after Arizona Attorney General Mark Brnovich issued an Assurance of Discontinuance accusing the company of violating Arizona’s Consumer Fraud Act. The Arizona Attorney General received hundreds of Diamond complaints. One source informed us the office received 400 complaints leading up to the investigation and 500 more complaints after the press release.

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

Diamond Resorts also provided a Diamond Resorts Consumer Advocacy Department to assist members from day one if they have concerns about their timeshare.

Inside Timeshare continues to receive complaints from members almost daily, with common complaints:

Purchase more points as that will be the only way to sell points. (Diamond’s secondary market restrictions make Diamond points almost impossible to sell.)

Purchase more points because that will provide you with the ability to pay maintenance fees by tendering excess points at 30 cents per point. (No such program exists as this is an adulteration of a 30/30 program designed for other purposes.)

Agents working for the same company selling against each other from the Hawaii Collection to the US Collections telling the member they made a mistake purchasing the collection they purchased, depending on which side of the Pacific the member is on.

Inside Timeshare has forwarded members complaints to Diamond’s PR firm and to ARDA. Both have ignored the complaints, but it is unlikely ARDA will enforce their Code of Ethics against a corporate member that gives ARDA a million dollars a year from Diamond members who unwittingly are billed $7 as an “opt-out” voluntary donation on their maintenance fee invoice. It is doubtful the average timeshare members understands even what the initials ARDA ROC stand for.

After reading complaint after complaint from our Nightmare on Timeshare series, I am certain our EU Diamond agents did not stoop to such tactics. Did this contribute to sales targets not being met?  Inside Timeshare has received 187 reader complaints, of which 178 are from Diamond Resort members.

Diamond Resorts Consumer Advocacy never returned Marsha’s call. One of Diamond’s Advocacy “hospitality” agents left one message but never returned her calls. CEO Michael Flaskey ignored Marsha Young.

A representative from Barclay’s Bank did contact Marsha Young. Although they cannot help, as Barclays does not physically open credit card applications, Marsha appreciated the respect she was given by at least being acknowledged.

You be the judge of Marsha’s story.

How Buying a Timeshare can be Financially Devastating

Luke

Introduction by Irene Parker

Since our first Inside Timeshare US member story was published October 2016, we have received 186 member complaints, of which 171 allege they were sold by deceit and bait and switch, meeting the FBI definition of White Collar Crime. Of the 186 complaints, 177 are from Diamond Resorts members. We don’t dispute there are many timeshare members who use and enjoy their timeshare points, but many have not yet been made aware of the lack of or limited secondary market. The majority of complaints allege they were told to buy more points because only at the next loyalty level could they sell points or be able to offset maintenance fees. Neither program exists. These members are stuck with a product they paid thousands of dollars for, felt were sold by deceit, incur maintenance fees and can’t sell. Their network of friends and family want nothing to do with timeshare. Sales centers should take note as Social Media no longer keeps members silenced and isolated. Diamond Resorts did not respond to our request for comment.

November 10

By Marsha Young

The vacation memories my husband and I shared together at Embassy Suites and Sunterra in Hawaii on the island of Maui are my most treasured, but our memories so precious have been destroyed. Maybe not the memories, but the timeshare we knew and loved has turned into a financial trap.

My husband passed away in 2011. I still travel some with friends and family and I enjoyed the flexibility of the point program until I succumbed to high pressure sales. In the past, when explaining the struggles of raising a family, or other reasons why we could not upgrade, agents would not push us when my husband and I said no, so I was not prepared for what happened. In an effort to warn others to seek counsel before you sign a perpetual contract after a six hour sales session, with rising maintenance fees, and no secondary market, I share my story.  

My problems began at the Diamond Resorts sales center at Williamsburg Virginia May 2017. I told the hospitality agent about how I had been deceived previously by a Hawaii sales agent. She told me she understood and explained that is why sales were stopped at the Williamsburg center for a while until a new program called CLARITY was put in place. My Williamsburg sales agents were Richard Rodgers and Mark Schilling. I told them I did not want to spend any more money as the maintenance fees were going up so much for the Hawaii Collection. They told me I should transfer my Hawaii points to the US Collection because maintenance fees would be less. The cost was never discussed. I thought there would be no charge. I saved the paper they used showing points transferring over to the US Collection. They also encouraged me to open a Barclay credit card because it accumulated points rather than miles, but neglected to tell me the card would be charged $7,100 for a down payment. I had sent an email to both Richard and Mark telling them I did not want to spend more money. The sales presentation lasted six hours. I was exhausted. When I got home and went to my DRI account. I was shocked at the new $34,000 mortgage. The maintenance fees did not go down.

I did not know where to turn so I called a friend who is an investment advisor. He called Mark Schilling. Mr. Schilling’s response was, “She signed the contract. The QA session was videoed.” Recorded QA Sessions are part of the new CLARITY program. The sales presentation is what needs to be taped because that is when sales agents make promises not kept.

Richard Rodgers told me $400 a month would be the maintenance fee but it is the mortgage payment, so I owe maintenance fees on top of the mortgage payment. I was also told I could still book Hawaii, but in July 2017 I went to a meeting in Hawaii and was told I should not have transferred to the US Collection, because I would not be able to get back into Hawaii. They also said the value of the Hawaii Collection was more valuable and had the highest availability. Jessica Ocegueda was the sales agent. She said I had traded down and if I want to go to Hawaii on US Collection points in all likelihood “it’s not going to happen.” I have learned from other members you still can book in Hawaii with US points. I was convinced to transfer all my US Collection points to Hawaii Collection.

After six hours, there is insufficient time or energy to review an inch high stack of documents. Diamond Resorts Consumer Advocacy never responded to my complaint, but they did send the Consumer Financial Protection Bureau and Barclays Bank my initials for the charge on a document.

  • Of the $138,000 approximate purchase price, $66,915 was taken back as credit for the US points and the balance financed was approximately $70,000
  • The down payment charged to my personal credit card was $8,529
  • A Barclaycard was charged $7,100
  • The monthly payment is $917.58
  • Estimated maintenance fee is $7,418

sad

At age 71, I watched my credit score plummet from the 800s to the 700s. I am a widow living on a teacher’s pension. I learned from reading Inside Timeshare articles and joining an Advocacy Facebook page, many have been told if they purchased more timeshare points, maintenance fees would go down. While the maintenance fee per point may decline a cent or two, the maintenance fee invoice does not decline. It’s easy for the resort defending their position to say, “You were confused,” but the volume of complaints found on the internet speak of sleight of hand, in my opinion.   

Not knowing where to turn I had contacted Irene Parker. Irene told me about the new CLARITY program Diamond Resorts implemented after the Arizona Attorney General issued an Assurance of Discontinuance, accusing DRI of violating the Arizona Consumer Fraud Act. She also said Diamond Resorts now provides an advocacy department for those who have concerns about their purchase. CLARITY is supposed to be about accountability, transparency and respect for the customer. I received none and was ignored by DRI Advocacy. It feels like the customer is always wrong.       

The actions of these agents have taken away my financial security. I feel trapped. It is not as easy or as enjoyable to travel without my husband. I can still travel with friends and would have been able to remain a Diamond customer had I not succumbed to an upgrade for reasons that were not necessary or true.  

I should have learned from the first bad experience I had in Hawaii. In Hawaii, I had been charged $2,995 for a program called the Sampler. I was refunded for that purchase because I did not know a credit card had been charged then until I returned home. Diamond said the agent, Mr. Frank Rippe, had been fired. They also said he had been the top selling agent of that particular product.

It is my hope timeshare members will continue to reach out to other members. It is a sad day when vacation timeshare plan buyers need a support group and a media outreach plan to warn other potential buyers.

act now

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/

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

As we read many stories such as this it no longer comes as any surprise, what does seem to be a recurring theme is the age group of the people that contact us. They also all have the same story, credit scores being destroyed, after years of no defaults.

One thing that did make me chuckle in Marsha’s story is Diamonds comment on the the sacking of the sales agent, “he had been the top selling agent of that product”, well that is not surprising if he was being that devious!

Once again Inside Timeshare thanks all those who provide us with the information and contribute their stories, if you would like to contribute contact Inside Timeshare. If you just require any information about your membership or about any company that contacts you or even thinking of doing business with, but don’t know where to start, contact us and we will point you in the right direction.

Have a good weekend and join us next week.

weekend

letter from america

Friday’s Letter from America

Another week over and another Friday’s Letter from America with Irene Parker, but first a very quick look at two cases announced this week.

Silverpoint have once again been on the receiving end of another Supreme Court verdict. They have declared the client’s contract null and void, ordering the return of over £43,000 plus legal fees and legal interest.

In this verdict the court stated that the contract lacked specific information required by law, such as a specific apartment number, date and location. It is quite clear that the Supreme Court has on more than one occasion clarified the law.

In another case heard at the Court of First Instance in Palma de Mallorca, Altres Vacances have been ordered to repay the client over 58,000€  plus legal fees and interest, with the contract being declared null and void.

This court has followed the Supreme Court rulings on the length of the contract, the law is very clear on this point, the contract must be no longer than 50 years. They must also contain specific information as required by law.

abogados-ag-250

Once again, we have to warn about the “fake” law firms operating out of Tenerife, part of the Litigious Abogados family, another reader has been in contact with the new firm Abogados AG, with Armando González Areca named as the main “lawyer”.

They state that following a “groundbreaking ruling on “Tuesday 19 March 2015” (very precise date), against Diamond Resorts International SL, one of the the directors, once again Andrew Cooper, has pleaded guilty to the indictment of the Spanish Civil Code. They also state that the High Court of Santa Cruz de Tenerife have declared 28 of their clients contracts null and void, seizing all the personal assets of Mr Cooper in Spain and the Canary islands.

Now according to this “law firm” they will be lodging the case against Diamond Resorts International Sl and Mr Andrew Cooper on the 7th November 2017, this will heard on Tuesday 21st November, very quick indeed, they must be very well in with the judges!

In the case of our reader, they no longer own any timeshare with Diamond, they got rid of that years ago, so there is no basis for any claim. Beware the claims that you have a case, if you no longer own you don’t, even if you do own you may not have a valid claim. Before engaging with any company that states you do have a claim, check and check again.

See the full letter below, pdf.

Abogados AG

So now on with this week’s letter.

Another Bluegreen Member Alleges a “Bait and Switch”

Sometimes Called “Pitching Heat”

cross fingers

By Irene Parker

November 3  

Back in July, Inside Timeshare published an article by Lela Renea, a detective who alleged she was deceived by a Bluegreen timeshare sales agent. Camyell Pratt, another Bluegreen purchaser, alleges she and her husband were also deceived.

The FBI definition of White Collar Crime, Financial Institution Fraud, is “deceit, concealment, violation of trust and bait and switch.” Inside Timeshare has received 179 complaints from readers, of which 164 allege they were victims of a timeshare bait and switch. https://www.fbi.gov/investigate/white-collar-crime

Lela Renea is a detective. Camyell understands bad debt. She assists in collecting back taxes for a Virginia County government office and understands the repercussions when someone does not pay what they owe. But what if the contract agreed to was purchased under conditions of fraud?

In timeshare, that doesn’t matter thanks to the clause that appears in every timeshare contract – “I did not rely on any oral representation to make my purchase.” In other words, any complaint that begins with “The salesman says” can be conveniently dismissed.

Bluegreen is certainly not the only timeshare company Inside Timeshare has reported on concerning questionable sales tactics by some agents:

A jury awarded Trish Williams, a former Wyndham sales agent, $20 million. Ms. Williams described TAFT days – tell them any blank thing on slow sales days.

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

Attorney General Mark Brnovich issued an Assurance of Discontinuance against Diamond Resorts accusing the company of violating Arizona’s Consumer Fraud Act.

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

New York Attorney General Eric Schneiderman issued an Assurance of Discontinuance against The Manhattan Club. Of note, The Manhattan Club admitted wrongdoing, unusual in corporate America.

NEW YORK – Attorney General Eric T. Schneiderman today announced a $6.5 million settlement with the owners and operators of the Manhattan Club, a timeshare in Midtown Manhattan, over the sponsor’s repeated false promises to potential and current share owners.

The settlement is the largest in recent history for the Attorney General’s Real Estate Finance Bureau. Under the terms of the settlement, the operators of the Manhattan Club, acknowledge that they repeatedly misled shareowners about the club’s reservation process, their ability to sell back their shares, and the details of the club’s state-approved offering plan.

https://ag.ny.gov/press-release/ag-schneiderman-announces-65-million-settlement-midtown-manhattan-timeshare-scammed

Colorado, Wisconsin, Tennessee, and Missouri Attorneys General took action against other timeshare companies.

As we’ve said before, the abnormal becomes normal, whether it be predatory timeshare sales or sex abuse in the Catholic Church or Hollywood. Victims are messengers to be beheaded or silenced and isolated through non-disclosure clauses. To my knowledge, except for The Manhattan Club, timeshare developers have not even acknowledged deceit on the front of the timeshare sale, despite thousands of internet complaints and lawsuits too numerous to mention.

Current and former timeshare sales agents and managers are also speaking out. As one manager explained:

I watched every day, agents selling for double and close to triple what it was supposed to be sold for but management laughed and congratulated them.  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 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!   It 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!

Some companies are trying to do the right thing. Bluegreen has been listening and taking appropriate action in some cases. Diamond Resorts has opened a Diamond Consumer Advocacy Department that pledges to help members from day one and has launched a program called CLARITY which promotes accountability, transparency and respect for the customer.

Instead of beheading the customer’s, legitimate attorneys, volunteer advocates and journalists, why won’t the timeshare developer not identify and drain the swamp of predatory sales agents? After receiving 179 complaints from our readers, at times we can guess the agent by the con.         

cartoon fraud

Camyel and Jayson Pratt

Camyell and her husband Jayson endured an eight hour Bluegreen timeshare sales presentation at Harbor Light in South Carolina. They were promised:

4000 points plus 6000 points plus two RCI weeks

Availability to a variety of resorts

What was delivered?

For 4000 points, according to one of our Advocates, also a Bluegreen member, the member can book a studio in winter on the wrong side of the weather report.

After filing a complaint with the Better Business Bureau, Bluegreen did offer to credit Camyell the additional 6000 points promised. Camyell declined, deciding she did not want to have anything to do with a company that would resort to such tactics. Nevertheless, Bluegreen credited the family 6000 points anyway.

Camyell said they were given no paperwork after they signed the contract, told the contract needed to be processed. They were given a booklet about Bluegreen and the timeshare exchange company RCI.

Let’s see how Camyell’s complaint compares to Lela Renea:

  • Lela was told if she purchased more points her maintenance fees would stay the same. The maintenance fees have increased from $560 a year in 2015 to about $700 a year for 2017.
  • Lela was told she would receive a free cruise, but after all the fees and charges it cost as much as if she had booked it herself.
  • Lela was told the Barclaycard had a low interest rate of 5% when in actuality it was 25%.
  • Lela was not told she was entitled to 4000 bonus points. The points expired before she was aware of them.
  • Lela was promised availability she says does not exist.
  • Lela was showed a Presidential Suite that was said to be comparable to all Bluegreen accommodations.
  • Lela was not aware she had purchased so few points it was almost impossible to find adequate availability.

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

Timeshare members have had enough. Timeshare has been employing tactics former timeshare sales agents call “Pitching Heat” or “No Heat No Eat” for too long.

Like so many of our readers have complained, Camyell was not allowed onto the booking site until after the contract rescission period. When she did finally gain access, she was informed she was not within the booking window and did not have enough points to book the stay she desired and says she had been promised.

Here is our advice for those not knowing where to turn:   

  • Prepare a written complaint and request for resolution. Submit to the resort.
  • If the resort denies the request, file first with the Attorneys General of the state where you signed a contract, where you live, and where the timeshare is domiciled. Some Attorneys General are influenced by lobby dollars, so don’t be discouraged if your complaint is denied. There is still merit filing “for the record” because the Attorney General’s lack of concern can be quantified and reported. Some states refer you to a different department.
  • File a complaint with the state real estate division against the agent (ID #) if you feel the sales agent is at fault.
  • File a complaint with the Federal Trade Commission because every state has incorporated some part of the FTC Consumer Fraud Act into their respective state consumer protection act.
  • Report your grievance to ARDA http://www.arda.org/ethics/ – this organization is the American Resort Development Association – Resort Owners Coalition. ARDA ROC does not resolve individual member disputes, but they do have a code of ethics that should be enforced. When the needs of the member and the developer diverge, lobby dollars go to the side of the developer, so think twice about the “voluntary” opt in or opt out donation to an organization that may not always be targeting your best interest.    
  • The FBI definition of White Collar Crime – Financial Institution Fraud – is “deceit, concealment, violation of trust and bait and switch”. File a complaint with IC3.gov if this is the case. IC stands for Internet Crime, but your complaint does not have to involve the internet. That’s just the FBI portal for complaints. https://www.fbi.gov/investigate/white-collar-crime
  • File a complaint with the Consumer Financial Protection Bureau, although this agency has been vastly diminished due to the rollback of the Dodd Frank Act. According to a banker I spoke with recently, they are still the regulators. File with this agency only if a credit card played a part or there is a loan outstanding.
  • Reach out to local and national media. This is by far the most important and effective tool. Typically, timeshare buyers don’t buy a timeshare in their state of residence, so state lawmakers have expressed little interest and can also be influenced by lobby dollars. http://www.orlandosentinel.com/news/taking-names-scott-maxwell/os-gov-rick-scott-signs-bad-timeshare-law-20150617-post.html
  • Become an Advocate for change by assisting other members with the process outlined above. Encourage others to act.
  • File a complaint with the Better Business Bureau. The ⦁ BBB does not resolve complaints. They merely report how efficiently a company responds to complaints so ratings can be misleading.

None of the above agencies will act on behalf of a specific individual, but a volume of complaints can prompt an investigation.  

chat

If you or anyone you know has a timeshare story to share, or needs help with a timeshare issue, contact Inside Timeshare or one of the following self-help Facebooks:

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

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

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

 

There we have it, Friday is here, the weekend is about to begin, have fun and don’t forget, do your homework before you deal with any company. If you are in any doubt, contact Inside Timeshare and we will point you in the right direction.

friday cat

midweek

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

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

amador-galeca-300x191

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

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

With the freephone number: 0800 802 1223

Email: galeca_ukclaims@consultant.com

Website: http://amadorgaleca.com/

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

amador-malodan-galeca-243x300
Amador Malodan Galeca

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

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

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

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

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

Timeshare and Asset-Backed Security Products

cash

By Michael Kosor

September 20, 2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

risk1

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

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

end month

End of August Roundup

Considering August is usually a quiet month with all the holidays, Inside Timeshare has had quite a run on articles. We began August with news on the Tauro Beach Project entitled “Tauro Beach: In the UK News”.

This followed the publication of a story in The Guardian, a UK newspaper, on the importation of the sand used to build the beach, from Western Sahara. The article by Anders Lundqvist and Rowan Bauer, two independent journalists who investigated the possible illegal importation of the sand.

They explained that if this sand did originate from the Western Sahara, which it most certainly looks like, it was against UN Resolutions and rulings from the European Court of Justice. In their article they quote the head of SEPRONA in Gran Canaria, Lt Germán Garciá who stated “The sand was brought illegally, it was discharged with no control at all,” we know this has caused concern among environmentalist on the Island, as there is a protected area just 300 meters off the beach.

gc-seprona

For the full story follow the links at the end of this article.

The following day we published the Mid Week Report, this started with the news that TATOC had truly gone as their website is no longer accessible. It was then followed with a link to The Canary News, an English language newspaper based in Gran Canaria. The Canary News article by Ed Timon, the editor, gave a very good insight into the history of Western Sahara, which was the subject of the previous article.. (Again see links below).

We also published the first article of the month from Irene Parker, from our US branch, this was to do with a lawsuit in the US by Welk Resorts against Timeshare Exit Team. This is the first in a series of articles highlighting lawsuits by timeshare developers against resale / exit companies and law firms.

Loyalty: No Such Thing in Timeshare was the title of the next article. This highlighted Timeshare Compensation’s blog on Silverpoint now known as Signallia. In this blog Timeshare Compensation warns its readers of the “dodgy” past of this company, which was very surprising indeed as the owner of Timeshare Compensation, Mark Rowe, is an ex-senior sales manager of Silverpoint and thereby employee of Robert “Bob” Trotta, as well as colleague of the CEO Mark Cushway. Told you there were some strange things in the world of timeshare!

loyalty1

In our first Friday’s Letter from America for the month, we published the article by Eron Grant, this covered the question of why does ARDA have a code of ethics? One question we have also asked of the RDO.

Once again that family of fake law firms in Tenerife came up, yes you know the ones, Litigious Abogados.

Another new contributor from the US made her debut, Bonita Hill. Her article was on the question of Diamond’s Clarity Programme, regarding the Oral Representation Clause. This was launched in response to an Assurance of Discontinuance issued by Arizona Attorney General Mark Brnovich. Diamond has stated they intend to go beyond the requirements of the AOD.

We then published “Truth, What is Truth?” This was in response to readers enquiries about Anfi denying losing any court cases. This has caused confusion among members, after all these cases have been publicised in the press, yet Anfi tell everyone it is not true! So who do you believe?

In the next Friday’s Letter from America, we published Part 4 “Our DRI Misadventures” by David Franks. He Joined our team of writers from the US, some months ago and has given us a great deal of fun. He certainly has a style of his own and is a welcome member to the team.

We then started our “Hug Your Haters! A Customer Service Message” by Irene Parker, this is based on the book Hug Your Haters by Jay Baer. He is to be a keynote speaker at the Interval International Shared Ownership Conference to be held at the Miami Beach Eden Roc Hotel October 23 – 25. Mr. Baer has advised more than 700 companies including The United Nations and 32 Fortune 500 companies.

Next came the news of a story we published last year, it involved The Manhattan Club in New York. The NY AG Eric T Schneiderman had suspended all sales at the club back in July 2014, this followed many complaints of deceitful practises. The case is now finally over, with a settlement of $6.5 million, also the owners are being forced to sell and have been barred from participating in the timeshare industry. Well done Eric, one for the consumer!

Attorny_General_Eric_T_Schneiderman
NY AG Eric T Schneiderman

Once again Karen Garello from our Timeshare Advocacy, contributed another “Secret Shopper Report”. In this article, Karen gives sound advice on the questions you should ask when going on a sales presentation. Following her advice could save a lot of problems in the future.

It was back to Europe for our next piece, this was titled “ Timeshare In the Press”. This was actually very timely as it followed on from the Truth What is Truth article, it was based on the article in the Spanish paper El Diario. It highlighted the Supreme Court rulings, mainly against the Tenerife company Silverpoint, who just like Anfi deny any cases going to court or being lost.

It also included the article published in The Canary News, based on the one from the paper La Provincia, this began with a recap of the groundbreaking first Supreme Court ruling back in March 2015. Again throwing out the claims of the timeshare industry that these are all fictitious cases.

There followed a couple more articles by Irene Parker and a Timeshare Advocate. The first highlighted the  lawsuits between developers and law firms, the second was an open letter to the timeshare industry. Whether they take any notice is another thing.

In The Monday Briefing, we again focused on the Litigious Abogados family, giving a recap on how they operate their rather sophisticated scam, but also some sound advice which if followed will protect you from becoming one of their victims.

In the same article we welcomed and wished all the best to a new forum for timeshare owners, Timeshare Users Forum. This has been set up by disgruntled members of Timeshare Talk, a previously independent forum. We won’t go into detail here, but you can read the full article.

The last article for August was Part II of Hug Your Haters: A Customer Service Message.

So that is it for August, tomorrow we don’t cross the great lake to the US, we go to the land down under, for another Letter from Australia, contributed by Justin Morgan, on the role of private equity and the secondary market in timeshare. Do join us and bring your didgeridoo!

didgeridoo

Links to some of this month’s articles.

http://insidetimeshare.com/tauro-beach-uk-news/

http://insidetimeshare.com/tauro-beach-latest-development/

https://www.theguardian.com/world/2017/jul/28/trouble-in-paradise-the-canary-island-beach-accused-of-illegally-importing-sand?CMP=share_btn_fb

http://insidetimeshare.com/loyalty-no-thing-timeshare/

http://insidetimeshare.com/truth-what-is-truth/

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

http://insidetimeshare.com/manhattan-club-6-5-million-settlement/

http://insidetimeshare.com/fridays-letter-america-16/

http://insidetimeshare.com/timeshare-in-the-press/

http://insidetimeshare.com/legal-news-us-castle-law-group-pc-v-timeshare-developers/

 

victory-1

Manhattan Club: $6.5 Million Settlement

It would look like the long drawn out battle between the New York State Attorney General, Eric T Schneiderman and The Manhattan Club is finally over. It was back in July 2014, that AG Schneiderman announced he had obtained a court order halting the sale of timeshares at The Manhattan Club.

As AG Schneiderman put it in July 2014 “Purchasers Duped Into Paying Tens Of Thousands Of Dollars To Become Owners; Later Denied Benefits Of Ownership In Alleged Bait-And-Switch Scam”.

https://ag.ny.gov/press-release/ag-schneiderman-announces-court-order-barring-sales-manhattan-club-timeshare-hotel

They were also subjected to ever rising maintenance fees and unable to book as there was according to the hotel “no rooms available”. It transpires that rooms were being rented out over the internet to non-owners, even though they were told it was for the exclusive use of timeshare owners. This is not an uncommon problem that timeshare owners face, we see the same practice at resorts in Europe.

As part of the settlement, the Manhattan Club owners are not only being forced to sell, they must also give up management control and will be barred from the timeshare industry. This must go out as a warning to other timeshare developers, times are changing, if the industry itself cannot improve itself, then we can see more AG’s taking up the fight on the behalf of owners.

manhatton club

It must also be said that Eric Schneiderman is only one of a hand full of Attorney General’s who actually sides with the consumer, there are many more who are in bed with the industry. This is a list of those who are on the side of the consumer:

Arizona Attorney General Mark Brnovich issued an Assurance of Discontinuance following a probe of Diamond Resorts. A settlement of $800,000 has been awarded for restitution:

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

Other Attorneys General have come down on the side of timeshare owners, including:

Colorado Attorney General Cynthia H. Coffman, as reported by Business Den reporter Amy DiPierro, concerning Highlands Resorts in Colorado and Sedona Pines in Arizona:

http://insidetimeshare.com/another-us-attorney-general-exposes-deceptive-tactics/

Tennessee Attorney General Herbert Slatery III settled with Festiva timeshare for $3 million:

https://www.tn.gov/attorneygeneral/news/38312

One AG that is conspicuous by her absence is the Florida AG Pam Bondi.

http://insidetimeshare.com/news-across-pond/

Others that need to be congratulated are the following coalition that worked with the Manhattan Club Independent Owners Group and the NYAG,  they are: NTOA, RedWeek, Sharket and Attorney Douglas Wasser. This goes to prove that by working together nothing is impossible.

Images from meetings of the Manhattan Club Independent Owners Group

image1 image3 image4

Follow the original article by Alison Fox published in amNEWYORK

am new york

http://www.amny.com/real-estate/the-manhattan-club-settlement-includes-6-5-million-in-restitution-ag-says-1.14048559

Article by Inside Timeshare’s  Irene Parker originally published in TheStreet back in September 2016

thestreet

https://www.thestreet.com/story/13653117/2/the-timeshare-industry-has-improved-its-reputation-but-still-faces-scrutiny.html

In Europe we are seeing Spain leading the way for timeshare consumers, the Spanish Supreme Court has now made 57 rulings against the industry, this is unprecedented. This has been largely due to the efforts of one law firm, Canarian Legal Alliance who continue to make Spanish legal history and help consumers to gain justice.

If the timeshare industry is to continue and prosper, it must take note and change the way it sells the product. The owner / member should be the priority, not huge profits for the sake of profit, (could they be the Ferengi from Star Trek)?

ferengi_profit_by_aweswanky-d5du6p4
Timeshare Developer

We have said this before, timeshare is a great concept, it does provide quality resorts, it does suit some, but it also becomes a burden to others.

Inside Timeshare welcomes your comments, if you have a story to share or just want information or advice, contact us and we will try to give you the best answers possible.

 

 

 

clarity meaning

Tuesday Review: Clarity

Following on from previous articles on Diamonds Clarity Program, Inside Timeshare welcomes today’s article from Bonita Hill, edited by Irene Parker. Bonita explains her experience of this program which is suppossed to “clean up” the sales process, it does appear to fall rather short.

But first a quick round up from Europe, as we said before August is usually a rather quiet time, especially in Spain, so at present there is little news coming from the courts as they are on vacation.

It would also seem the family of “fake” law firms, Litigious Abogados are continuing to claim they have cases waiting to be heard at court, with thousands in compensation waiting to be claimed. Well we do know there will be no money coming from this little crowd.

Inside Timeshare is also working on another Anfi story, they still seem to be denying that they have lost and are losing in the courts. Is it possible they are that worried of more litigation they are conducting a damage limitation exercise? More on this story when we publish.

Now on with today’s article.

Diamond Resort’s CLARITY™ Program

Battles the Oral Representation Clause

clarity

By Bonita Hill  

August 8,2017  

Diamond members on our member sponsored Advocacy Facebook page are confused about an email all US members received earlier this year describing a new Diamond CLARITY™ program being rolled out nationwide designed to provide members with enhanced transparency, accountability and RESPECT for the customer. Diamond’s CLARITY™ program was launched in response to an Assurance of Discontinuance issued by Arizona Attorney General Mark Brnovich. Diamond has stated they intend to go beyond the requirements of the AOD.

The response my husband and I received fell short of the CLARITY promise. Basically, the company said it doesn’t matter what the sales agent told us because of the oral representation clause, yet the requirement of the AOD clearly states DRI sales agents shall not deviate from approved sales materials. Instead of CLARITY, the company should just provide a person in advance of a sales presentation the answer we received after we filed our complaint:

“We must advise that it is specified clearly in the contract documentation that if you relied upon any verbal information given during the presentation you must ask for this to be put in writing. Likewise, if anything was said that was of particular importance to you, but which is not contained in the terms and conditions of the membership, this should have been requested to be implemented in the body of contract before documentation was signed.”

Here is what the Assurance of Discontinuance says. The complete AOD can be found linked at the bottom of the press release.

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:

  • Sales agents should not deviate from sales material
  • 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

We attended a sales presentation in Las Vegas in 2017 after CLARITY had been introduced in Arizona. Our sales agent was Adam Drell. There my husband and I were told by Mr. Drell that because we had so few points we were paying more in maintenance fees and that if we bought more points we would pay less. Mr. Drell also said he was going to add in a Westgate week so that we would be Silver. We did not own a Westgate week.

Mr. Drell said our new maintenance fee would be $1,124. However, I received a bill for $661 for the new points. I had already paid $880 for the old points so the total of $1,541 did not match. Adam did not respond when I tried to contact him.

family

I am 30 years old and my husband is 32. How can we pay for maintenance fees that will go up every year for life? We bought the additional points because we were told it would make our maintenance fees go down. Our loan is financed at 17.15% on top of the maintenance fees. Mr. Drell opened Barclaycards. I was approved initially with a limit of $2,100. Adam offered the Silver plan with a down payment of about $3,400. We did not want to put more money into timeshare that day. He then asked me to call Barclay’s reconsideration line. We were denied due to our high ratio balance on other cards, Diamond’s response tells us nothing prevents a Diamond sales agents from saying anything they can think of to sell vacation points because they know the company can and will fall back on the oral representation clause. This makes it easy and convenient for sales agents to tell falsehoods. I’m sure Mr. Drell’s response would be, “I didn’t say that.”

On our DRI Advocacy Facebook I learned of several others who posted that they were told things by the Diamond sales agent that weren’t true. Marjorie Menacker previously published an Inside Timeshare article.

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

Marjorie Menacker’s letter to Mr. Michael Flaskey, Diamond CEO (excerpt)

I just listened to your podcast No Vacancy with Glenn Hausmann. We were told in Virginia by Brian Humphries that if we purchased more points on the day we were there, we would not have to pay maintenance fees again.  Why does Diamond allow their sales agents to say anything, no matter how outlandish, to sell points?  Since the Diamond contract is in perpetuity, the repercussions are even more disastrous.

When we explained this (our medical bills) to Mr. Humphries, he told us about a one day opportunity that day that would allow us to trade our points to pay off maintenance fees.  When we attempted to use the program he described to us, we learned no such program existed.

I was a satisfied Timeshare owner for over 15 years until, in our opinion, we were deceitfully up-sold at our last update. Instead of poisoning another Diamond customer, isn’t it best to do what is right by standing up for the customer instead of advocating for the sales agent? Another Diamond member not only posted an identical complaint, it was against Brian Humphries, the same sales agent.

Sincerely,

Marjorie Menacker

Marjorie had been hit by a construction truck while walking. The family was struggling to pay maintenance fees due to this and other medical issues. Diamond refused to cancel their loan and refund because of their allegations of deceit, but offered a voluntary surrender for medical hardship. However, more and more timeshare members like Marjorie and I are standing up to timeshare companies offering to take back their points in exchange for nothing when the member feels they were sold based on promises not delivered. There are so many complaints. It has to stop.

conference

Diamond’s Advocacy Department has helped several members resolve their complaints. Out of 80 complaints filed, 29 have reported a positive outcome. Out of 80 complaints, 71 allege they were sold by deceit and bait and switch. Several of our member Advocates belong to this Facebook page.  

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

Members are concerned CLARITY is nothing more than a window dressing for the media.

Through social media timeshare members are finally able to get together to share experiences. This has produced a pattern of complaints that is compelling and compounding. It is hoped all timeshare companies will recognize the need to sell their product professionally and honestly rather than punish the buyer for life stuck in an unending contract with no secondary market often sold based on false promises.

fair trade

Through Inside Timeshare and our Advocacy facebook pages we have been asked about costs for legal services, we reached out to Mike Finn of Finn Law Group and this is his reply.

Hello all, thanks for your interest in our services.

We do try to charge a fixed fee because that provides a lot of certainty for the client as these cases sometimes take quite some time for resolution.

A couple of factors that we consider in setting the fee, is the date of the purchase, as that has statute of limitation ramifications, and also the amount owed to the resort and perhaps other third-party credit providers. Another factor is whether or not there is more than one active contract.

If I have this information I can provide a fixed fee and even offer terms in some cases.

Mike Finn

Thanks Mike, that has certainly made things clear, a lot more clearer than Clarity!

Remember, Inside Timeshare is here to give sound and accurate information, these are your stories, they are from owners experiences, the industry will eventually take note.

It just remains for Inside Timeshare to thank all those who contribute and help with the proof reading.

 

us-eu-coop

Working Together Across The Ocean.

In today’s article, Irene Parker explains the work of the Advocacy Group and how it can help you the timeshare owner. Since this project has been going it has achieved some fantastic results, some that we are unable to publish, others have been and there are some to come.

This project has brought people together, ensuring that no one feels that they are alone. There is always somebody to help, even if it just to listen to your concerns. So enough from em and on with Irene’s article.

The Timeshare Advocacy Group ™

butterfly

“Knowledge speaks, but wisdom listens” Jimi Hendrix

By Irene Parker

June 5, 2017

What is the Timeshare Advocacy Group ™ and who are they?

More importantly, why are they necessary?

Timeshare Advocates, advocating on behalf of those who have fallen victim to what they consider to be deceitful sales practices, go beyond helpful Facebook posts to walk with the timeshare member until a resolution, relinquishment refund, or foreclosure takes place.

Timeshare members can contact Timeshare Advocacy Group ™ if they:

  • Can’t get out of their timeshare
  • Feel they were deceived or lied to by a timeshare sales agent
  • Don’t know where to start
  • Don’t know who to call
  • Cannot afford an attorney
  • Cannot afford maintenance fees

For too long timeshare developers have relied on the use and abuse of the oral representation clause. Of course there are timeshare companies and timeshare sales agents selling timeshares without deceit, trying to survive in a timeshare world where top producers are all too often encouraged to sell by “deceit, concealment, violation of trust and bait and switch” meeting the FBI definition of White Collar Crime. Financial Institution Fraud is added to the mix when credit card lending crosses over to predatory lending.

cartoon strip

When timeshare buyers begin their complaint with – “The salesman said” – company representatives are quick to ask for proof of the allegation, a word I have come to detest. In most cases there is no proof, but some regulators are listening. After all, it’s not that unusual for someone who has committed a crime to say, “I didn’t do it.”

More and more, surprised timeshare members who feel they are victims of deceit or “bait and switch”, realizing they have signed a perpetual contract with little or no secondary market, are digging in for the long haul, filing complaints with the FBI when deceived and Attorneys General sympathetic to the cause. Not all are.

Inside Timeshare previously published “Chicken Soup for Timeshare’s Soul” simplifying timeshare attorney Mike Finn’s white paper.

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

The Florida Timeshare Division acted on only 110 out of 2,360 timeshare complaints between April 2012 and April 2014.

Contrast this with Arizona Attorney General Mark Brnovich’s office acting on approximately 400 complaints filed against Diamond Resorts resulting in an $800,000 settlement and an issuance of an “Assurance of Discontinuance”.

The Timeshare Advocacy Group ™ works with print and broadcast media to take timeshare issues before the court of public opinion.

When Timeshare Advocate and former Hyatt and Diamond Resorts salesperson Candace Czarny learned of a May 2017 Arizona AG filing deadline for Diamond restitution eligibility, she wrote and distributed a press release to numerous Arizona publications and news networks. An Advocate who has a complaint in process was told by her reviewer that because of the publication of several articles, the AG office has received an additional 500 complaints. They wanted filers to know they need to be patient.

Hence, we answered the question, “What can one person do to make a difference.”

The Arizona Republic, part of the USA Today Network

http://www.azcentral.com/story/news/local/arizona/2017/05/18/timeshare-holders-released-contracts-following-deceptive-sales-practices/329107001/

The Timeshare Advocacy Group ™ is a group led by the following individuals who feel the time has come to take back our vacations.

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

Leading these efforts:

  • Irene Allen, TAG administrator
  • Charles Thomas, Inside Timeshare
  • Irene Parker, Inside Timeshare
  • Patrice Johnson, Advocate coordinator
  • Lisa Ann Schreier, media consultant
  • Candace Czarny, timeshare consultant
  • Diamond Resorts Member Sponsored Facebook administrators
  • Club Intrawest Owners Facebook administrators
  • Gold Key Resorts Owners Forum administrators
  • Monarch website administrators
  • Over 100 timeshare owners and members turned Advocates
  • 15 attorneys involved with various timeshare legal actions

This is where we are going. But how did we get here?

It all started with DRIP

http://drip.enjin.com/home/m/1894207/article/4099328

DRIP was launched by over 1000 British owners seeking release from Diamond Resorts timeshare contracts.

To my knowledge, Diamond Resorts has never admitted wrongdoing, but the company has introduced a program called CLARITY™ in response to the Arizona Attorney General’s actions. Is it enough? Members are wary but hope to work with Diamond to improve customer relations.

Monarch (DRI acquired) timeshare owners launched a website

http://www.monarchowner.com/p/opt-out.html

At a 2016 annual meeting, it was announced 30% of the remaining 40,000 Monarch owners have not paid their 2016 dues.

Wyndham Whistleblowers

A jury awarded former Wyndham sales agent Trish Williams $20 million when she exposed practices she said took place at Wyndham. According to Ms. Williams, Wyndham had TAFT days on slow sales days – Tell them any blank thing to close the deal.

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

Two additional Wyndham Whistleblowers, reported by Scott Brinkmann

http://www.orlandosentinel.com/business/brinkmann-on-business/os-bz-wyndham-whistleblower-lawsuit-20170209-story.html

A former Diamond sales agent introduced me to Charles Thomas, publishing investigative timeshare reports for Inside Timeshare based in Spain. This began a lifelong collaborative effort working together towards timeshare reform.

Diamond Resorts Owners Advocacy Group was launched February 2017

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.

advocate 1

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

Club Intrawest Owners member sponsored Facebook 3,000 members

https://www.facebook.com/pg/Club-Intrawest-Owners-Group-921012087982547/about/

Gold Key Resorts Owners Forum member sponsored Facebook

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

The following companies should be thinking about implementing their own version of DRI’s CLARITY™  based on these Consumer Affairs ratings.

The Bluegreen Corporation 1.5 out of 5 stars

https://www.consumeraffairs.com/travel/bluegreen.html

Westgate Resorts 1 out of 5 stars

https://www.consumeraffairs.com/travel/westgate.html

RCI 1.3 out of 5 stars

https://www.consumeraffairs.com/travel/rci.html

Shell Vacation Club 1.3 out of 5 stars

https://www.consumeraffairs.com/travel/shell_vacation_club.html

Hilton Grand Vacations 1.5 out of 5 stars

https://www.consumeraffairs.com/travel/hilton_grand_vacations.html

customer service

Many of the families our Advocates have worked with have been financially devastated by tricks of the timeshare trade. The word we hear most often is “embarrassed” and “ashamed”.

All victims of crimes are silenced, whether child abuse, rape or timeshare – isolated and silenced by perpetrators. The timeshare developers and lobbyist efforts have made it difficult to be released from contracts and difficult to contact other owners. Lawmakers turn a deaf ear to members with eyes wide shut. There is virtually no member representation in the industry.

We want you to know that our Advocates and Inside Timeshare are here for you. Join our efforts and expand our network.

Line up

Timeshare companies are starting to take notice, Inside Timeshare has had reports that many are wondering when we will start to highlight them, they are right to be concerned, because by coming together your voice gets louder. When it gets louder, it gets stronger, once it gets stronger the more you can all achieve.

Irene and myself thank all who contribute to these articles, either by writing or just reading the drafts and pointing out anything that has been missed.

us-eu-coop

Clarity: The Quality of Being Coherent and Intelligible.

Yesterday Inside Timeshare highlighted the plight of owners at Los Claveles resort in Tenerife, our US readers have a similar problem with developers attempting to take over resorts. Their problem is the transfer of deeded weeks to points, rather than the heavy handed actions of the Ona Group. We have also seen this in Europe, where the likes of MacDonald Resorts with the tacit approval of the owners committees association TATOC, are attempting to change all fixed week owners to their ridiculous points system. A system which only allows a stay under one condition “SUBJECT TO AVAILABILITY”.

Over the past few months Irene Parker Inside Timeshares partner from across The Great Lake, has been highlighting the problems that Diamond owners are having. One of the main themes has been the downright lies sales agents have been using to sell more and more points to people who obviously cannot afford it. The use of the Diamond BarclayCard is one tactic they have used, with promises that it reduces maintenance fees. Irene has in previous articles shown how this has devastated people’s lives.

Diamond sometime ago rolled out “Clarity”, supposedly to make everything transparent, today’s article from Irene poses the following question:

Is the Diamond Resorts Clarity Program Real?

facts

By Irene Parker

May 23, 2017

My husband and I stayed over two weeks at Diamond Resorts Scottsdale Links and Los Abrigados this past month. Anxious to hear more about Diamond’s Clarity Program, I asked if I could speak with a sales agent to learn more. Unfortunately, my requests at the concierge desk and emails went unheeded. Disappointed, I approached several existing members asking them for their feedback. I had hoped to hear positive stories.

Two of the families I spoke with did not want to go on record, but Faye and Mike Hanrahan from New Jersey shared their experience with me. I probably picked the wrong couple because they are former Monarch owners. Diamond has pursued former Monarch owners to give up their deeded timeshare week in exchange for non-deeded “right-to-use” points. In addition to Monarch, ILX, Intrawest and now Gold Key face the same battle in an attempt to hold onto their deeds.

Here’s what happened at Los Abrigados in Sedona according to Faye and Mike:

We had our sit down. We were told we have no way out of Monarch unless we spend approximately $10,000 for the equivalent of 6,000 Diamond vacation points with either a $1,400 maintenance fee or, if we signed a contract that same day, an $871maintenance fee. After we refused the first sales agent, we were introduced to an agent who said he was an original Monarch owner, but now worked for Apollo, although he had on a Diamond name tag. It was because he was with Apollo he could offer a half price on maintenance fee offer if we signed before leaving the room. Already familiar with timeshare, we knew there is no such opportunity for one owner to have half off the company’s maintenance fee. They offered to help by opening a Diamond Barclaycard for $3,995 put up by Barclays. The deal was to pay $39.95 month for 23 months to buy a “Club Combination for Life” program. After 23 months we were told we could use the $4,000 to buy into Diamond or Barclays will “zero out the debt” having paid a total of $918.85 at the end of 23 months. We of course could continue to use the credit card. Do you have any suggestions for getting rid of this timeshare?

Pressure to give up a deed is a frequent complaint. Once you give up your deed, the Diamond owner is no longer allowed to rent using a third party rental agency or website.

But back to Clarity, which is about accountability, transparency and respect for the customer. In the spirit of fair and balanced reporting, here are some excerpts about Clarity provided by Maya Pogoda, PR spokesperson for Diamond resorts.

Before we begin, I should mention that Inside Timeshare has been hearing from Diamond members on almost a daily basis. The majority of complaints received have been about upsells to existing members, even Platinum members, as per the individuals who reported to us, for the following reasons:

The only way to sell Diamond points is to buy more points because only Platinum members can sell their points.

The only way your heirs don’t have to keep up with maintenance fees is to upgrade to the next loyalty level. One family bought more points for this reason only to be told by the next agent at a subsequent presentation this benefit is already available, as she pointed out in a guidebook.

You should not have bought US Collection points because you won’t be able to book Hawaii (if in Hawaii) or you should not have bought Hawaii points because Hawaii maintenance fees are going to increase dramatically (if on the US mainland).

The only way to be eligible for a $.30 maintenance fee reduction is to upgrade to the next loyalty level. Only Platinum members can use points to pay maintenance fees at $.04 per point.

You need to buy more points because you can’t do anything with the small number of points you purchased.

Member stories are listed in our Barclaycard article

Timeshare and Barlcaycard in the US

Here is Diamond’s perspective on Clarity from PR spokesperson, Maya Pogoda. Her comments are from discussions we had in January and were previously reported.

“We have been piloting the various elements of the Diamond Clarity program for some time,” Pogoda explained. “Now that we gained the confidence that each of these pieces were effective, we were able to roll out this cohesive, national program that seeks to enhance the overall customer experience when purchasing and holding a vacation membership. Diamond Clarity will rewrite industry best practices by increasing transparency for the consumer and accountability for our team members.”

Pogoda noted that 70% of its sales are to existing members, however, Diamond Clarity “will improve the overall customer experience by increasing transparency for the consumer and accountability for our team members. At Diamond Resorts, we are always working to provide our members with the best possible vacation experiences. This focus on hospitality and creating lasting experiences has made Diamond Resorts an industry leader. We have always believed that customer satisfaction creates loyalty. So while the definition of customer loyalty has not changed, our commitment to finding new ways to drive customer satisfaction to create loyalty evolves constantly. Diamond Clarity is evidence of that.”

Creating a Consumer Advocacy Channel within the company’s corporate headquarters, to quickly address any issues or concerns members may have. This new platform will allow Diamond Resorts to maintain the highest standards of service in the industry.

https://www.loyalty360.org/content-gallery/daily-news/diamond-resorts-international-raises-the-bar-on-cu

No one doubts there are are Diamond members who are sold honestly and fairly, but over 250 Diamond member families have bonded together through our advocacy Facebook to support one another as we fight off endless up-sell attempts that have driven families further and further into debt.

To date our Advocacy group has received and assisted the following complaints.

Our Advocacy Efforts Statistics Update

75 Inquiries for assistance

55 Formal interventions complaints filed or assisted with

Reasons for 75 complaints as provided by the complainants

34 Sold by deception and bait and switch

09 Barclaycard upsell/predatory lending

02 30 cents to convert to MF relief (non-existent program)

06 Switch back from HI to US Collection or vice versa

06 Maintenance fees increases

02 Survivor benefit program (non-existent as already available)  

08 Bought more points told it was the only way to exit the timeshare

08 Lack of Availability

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to

advocate for a viable secondary market; and to educate prospective buyers.

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

According to Maya,

Diamond Clarity is not limited to just one state, it’s a national program that includes four new operational initiatives. One of these initiatives is recording quality assurance sessions subject to consent from purchasers, to review compliance with all policies and procedures, and to augment and enhance the company’s sales and quality assurance training.  The company has invested in technology to ensure that these recordings can be archived and searchable. Recording sales presentations would not meet these objective and thus are not currently part of the Diamond Clarity Program.”

The recording of the QA session is the biggest sore point Diamond members have with Clarity. Many of our complaints include the sales agent advising the buyer not to say anything about an exciting new program because “The program is not public yet so I could lose my job if you tell anyone.” Arizona allows the recording of the sales session but few buyers will go to the trouble.

Marjorie Menacker’s experience is an example of this. To date, Diamond has denied her release.

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

We end with some member advocate comments as to why these upsold members are wary.

inspired advocates

Irene Allen

Jan 28 (5 days ago)   

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

This new program by DRI is a very predictable step after the Arizona Attorney General’s action. If Clarity is about transparency, why does Maya not once reveal the only reason the company issued the program is because Diamond is essentially under state supervision in Arizona after the issuance of an “Assurance of Discontinuance” after over 400 complaints received claiming Diamond violated Arizona’s Consumer Fraud Act.

 DRI is obligated to demonstrate cooperation and compliance to new disclosure requirements by the AZ AG, but the company will do nothing for existing owners because they purchased contracts during the “Murky Stage”

“Clarity” does not have any provision of fixing the existing and growing problems which are flooding the courtrooms all over the world where DRI operates ….

  1. Regarding recording the QA sessions by DRI, this should be only offered if attendees, who are, according to “Clarity“, 70% existing owners, be allowed to do the same in order to establish a level playing field. Otherwise it is a trap participating owners will end up in, because it will give DRI additional defense tool in the courtroom.
  1. Regarding creating a Consumer Advocacy Channel. This Channel should have consumer rights attorneys and secret observers not employed by DRI in order to eliminate conflict of  interest.
  1. Regarding increase training to frontline personal. The frontline personnel had superb national training during the “Murky Stage”. How else can you explain the fact so many owners all over the world had exactly the same upsell by deceit and “bait and switch” during sales presentations? Many of our 250 Facebook member families claim sales representatives all over the world presented exactly the same falsified and misleading comments in order to entice owners to buy additional points. The name of the national sales training program should be: “101 ways how to deceive owners during sales presentation process and increase the volume of sales.”

Second member comment

I realize we are all skeptical about “promises” made by DRI, but this program has the potential of making a positive impact on our relationship with DRI.

Third member, a Diamond member and an attorney

  • Is the idea that none of these rules were previously in place?  It appears to me these are designed as Diamond CYA’s going forward, “we have a recording” or “there as an observer” or “contact the consumer advocacy channel within __ days”.  For Diamond to say the allegations we all experience did not happen.  

What does this accomplish for the victims of the bad business practices from the past?

  • Recording Quality Assurance sessions, subject to consent from purchasers, to review compliance with all policies and procedures, and to augment and enhance the company’s sales and quality assurance training.
  • Creating a Consumer Advocacy Channel within the company’s corporate headquarters, to quickly address any issues or concerns members may have.  This new platform will allow Diamond Resorts to maintain the highest standards of service in the industry.
  • Increased training of frontline personnel.  All sales and marketing personnel will take part in quarterly training exercises to reinforce their awareness, understanding, and compliance with all sales and marketing rules, principles, and practices.
  • Regularly placing “Consumer Engagement Observers” at sales presentations to continuously provide the sales organization with feedback necessary to achieve constant improvement.  
  • I would suggest these are great improvements to the training and consumer friendly positions Diamond should have had all along.  It does nothing to help people who have already suffered with no recourse from Diamond.
  • If their product was so great, Clarity would be evident within the first 6-12 months of an owner’s experience with the company.  It would be clear that this is “everything they said and represented” or it is “nothing that I was promised” and the consumer would still have options to exit, sell or rescind on some compromised plan. The longer you wait the less you retain.

I am not impressed.

Fourth comment anonymous due to Litigation

Enforcement of DRI “PROMISE” is difficult, unlikely, and merely a smoke screen to generate a false sense of security regarding oversight. It is another set of unenforced regulatory promises which incidentally spawned the crisis currently engulfing Diamond owners. The paltry AG financial agreement and appurtenant agreements simply demonstrate that the AZ AG is taking steps to protect itself from accusations of inaction.

Their behavior is reminiscent of the legal machinations demonstrated by ADRE and California Department of Real Estate. Complainants with ADRE regarding fraudulent practices at Diamond are told that such a complaint is an employee/employer dispute.

When filing complaints with RE regulatory agencies, it must be understood that determinations that deflect the fraud accusations are made to avoid costly investigations. This embraces the policy of waiting for some catastrophic event to prompt unavoidable enforcement action. It does not eliminate the need to continue to create a public record of these complaints, and legitimate demands to be made whole from recovery funds. Misleading determinations by these agencies should be challenged in order to demonstrate the lack of responsible enforcement pertaining to regulatory obligations.

Fifth anonymous member

If we only hear one side of the story or information how are we truly being informed? That is what happened with the hard sales only hearing their side. Our Advocacy members and Diamond need to hear and listen to both sides instead of the constant media spin.

You can share.

Sixth anonymous member

I’m afraid I don’t have much hope that this “Diamond Promise” will change much. I purchased a Sampler package in Sedona in 2012 and annual points the next year in Las Vegas. As best as I can recall, the procedures enumerated in the “new” Diamond Promise existed then, and still I was misled on some important issues.

The Diamond Clarity program has no mechanism which commits the vacation counselors, sales managers, and quality assurance officers to the Promise. In other words, there is no effective enforcement mechanism. Such a mechanism must impose a cost on the seller when the promise is violated.

The economic analysis of warranties has shown that a product sold with a warranty creates an incentive for companies to improve product quality. Reductions in the level of quality – like the misleading sales information in the case of timeshares – leads to higher warranty costs and thereby penalizes such behavior. We have good reasons to believe that in the absence of warranties high quality products get driven out of the market, while low quality products are driven out when warranties are used.

This new program depends on the trust in and good will from Diamond managers. But this is the same group that is incentivized to increase sales and revenue for the organization.

Seventh anonymous member

Promises are only as good as the party providing the assurances. I too see no real means of enforcement, and if anything this could provide an excuse for relaxed oversight by regulators.

I have been pressing the AZ Dept. of RE for 3 years to take enforcement action against DRI’s brokers.  It has been clearly demonstrated that they are negligent in discharging their responsibilities pursuant to RE statute.

I would recommend that owners look at filing a claim with ADRE as complaints are mounting regarding DRI behaviors.

Eighth anonymous member due to litigation

Clarity is definitely a meaningless program – except to bolster Diamond’s position in court.  I can hear it now – our QA monitored sessions prove no widespread fraudulent practices.  

Agents will know when they are being monitored or recorded so they will be on their best behavior.

Shacking hands

Will there ever be a day when we can all get along by communicating and responding to voices of the concerned?

Once again thanks to Irene and all who contribute from the other side of The Great Lake, one thing is for certain, owners on both sides are starting to see that by joining together they can make a difference.

To those owners at Los Claveles, you do have support, we only need to bring it together.

getting together

If you have any comments on any article published or would like to contribute, Inside Timeshare welcomes you.

 

cards

Timeshare and Barlcaycard in the US

The Barclay MasterCard and US Timeshare Lending

By Irene Parker

May 17, 2017

Inside Timeshare published an article about Barclays Bank and the predatory nature of timeshare lending. Author Charles Thomas asked me to provide some input on how timeshare credit card lending works in the US.

Barclays Bank article by Charles Thomas May 11, 2017

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

Linked in the article, Money Marketing reported the following March 2017:

Barclays Bank consumer credit arm Clydesdale Financial Services is being sued for more than £1.5m by 106 consumers over a holiday home timeshare scheme.”

According to Consumer Affairs, the Barclay Card is rated one star out of five based on 63 ratings out of 585 reviews (May 15, 2017).

https://www.consumeraffairs.com/credit_cards/barclays.html

Charles provided the following figures as an illustration of how imprudent it is to finance a vacation at 17%. The cause: Sales agents extremely well trained and consumers suffering from a relaxed vacation brain.

These are the figures from one loan agreement over 15 years Inside Timeshare has been given for a 1 week timeshare, it is from Barclays:

Cost of the timeshare                   £10,900.00

Credit facility fee                           £65.00

Interest                                             £18,465.00

Total amount payable                  £29,430.00

Interest rate                                    17.6%

APR                                                     17.7%

 

Timeshare is certainly not the only industry that has led consumers into credit card debt up to their eyeballs. As a former investment representative working with approximately 1200 families, looking back, I would say about 10% of the families I worked with managed their money properly. Certainly, rule number 1 should be:

DON’T FINANCE A VACATION AT 12% TO 19%

Wyndham and Diamond both use the Barclaycard as a means to finance a timeshare. Just to compare ratings, Consumer Affairs gave Club Wyndham a one star rating based on 74 ratings out of 495 reviews.

https://www.consumeraffairs.com/travel/wyndham_vacation_resorts.html?page=3

As if the interest rate isn’t bad enough, consumers also must worry about falsified information used to open the card.  Lisa Etienne, a Diamond Resorts buyer, found herself in hot water claiming the company added a 1 before her actual annual earnings, as reported by Amanda Porterfield, CBS58 Milwaukee, Wisconsin.

http://www.cbs58.com/story/35376892/milwaukee-woman-says-timeshare-company-scammed-forged-her-documents

Inside Timeshare has received many complaints from timeshare owners claiming the Barclaycard was used in a predatory fashion. Actions speak louder than words, so I took the time to review the complaints we have received. Out of about 70 complaints, almost half involve a claim of deceptive and predatory lending. Most said they purchased because they were offered buyback or maintenance fee redemption programs that do not exist.

Michael Nuwer, on our Diamond member sponsored Advocacy Facebook, posted the following in answer to one member’s query. Over and over we receive complaints about a 30 cent per point maintenance fee redemption program that does not exist. Members are upsold, told they have to be at a higher loyalty level, often through the Barclaycard, in order to gain access to the nonexistent program. Historically Diamond points have sold for $2 to $4 per point.

“Platinum members can pay a portion of their maintenance fees using their points from November 1 through to the annual bill due date at the current redemption rate of $.04. The non-refundable processing fee is $100.00.” (Page 23 Benefits Guide)

This is an excerpt from the very first complaint I read. Stunned, I vowed I would do something to warn consumers. Since this first complaint, Inside Timeshare in the US and the EU has received dozens of complaints concerning the same tactics described below. Dozens may not sound like a lot, but given how difficult it is for members to contact other members, clearly a pattern exists as you will see later on.

“I am at the Cancun resort in Las Vegas and went to a breakfast where they said they would simply update me about the changeover to Diamond. I was told that I should have been invited to a dinner where I would have been given options due to their (Monarchs) bankruptcy. I have been looking to get out of Monarch for over a year. They said that was not an option and as an owner, I was proportionally responsible for their debt. I felt trapped and signed all the papers to transfer, with no idea how I can pay. I am already in severe debt. They claimed when they ran my credit though that it looked better than most and assured me I qualified for financing. I would have to basically transfer to credit cards, which I can barely make my payments on now. I am really scared though. Please help!”

As Diamond is not able to be sold through a member of the Licensed Timeshare Resale Broker Association, and relinquishments are evaluated “case by case”, members find themselves stuck, running in the “hamster wheel” timeshare trap. The member is foreclosed and points are then resold to the next consumer at full value. Even if a relinquishment is granted, when the purchase is recent, but regretted due to abuse of the oral representation clause, families can find themselves financially devastated.

I revisited the cases of members who contacted Inside Timeshare. We have many complaints about the tactics used at Diamond’s Polo Towers Resort in Las Vegas. Diamond has resolved issues for some of the members, but we continue to receive complaints about this sales center. Sales agent Rick Casper even made the RipOff Reports in 2015.

http://www.ripoffreport.com/reports/diamond-resorts-international/las-vegas-nevada-89123/diamond-resorts-international-rick-casper-vacation-counselor-we-were-told-that-we-would-1269511

Other Complaints

Plaintiffs Gisele Fournier and Rejean Fournier of Riverside County, California May 12, 2017. Their credit card was allegedly charged $2,000 for the membership upgrade, and the upgrade caused their monthly membership dues to nearly double, according to the Diamond Resorts class action lawsuit. They claim they were pressured again into purchasing a membership upgrade and were reportedly mocked by Diamond Resorts’ agents because they did not bring a credit card to the meeting.

https://topclassactions.com/lawsuit-settlements/lawsuit-news/670995-class-action-diamond-resorts-pressures-buyers-timeshare-contracts/comment-page-1/#comment-439596

Kathie Olds on December 6, 2016 reported being told she could redeem points for 50 cents a point to pay maintenance fees. The sales agent promised the Olds they could open a Barclaycard to pay maintenance fees without explaining the reimbursement was on only 1.5%.

barclaycard1

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

Fast forward to May 12, 2017 Kathie reported:

Yesterday in St. Martin sales agent Riza Young and her manager said that through travel services we could cash in 20,000 points for $.30 per point to pay for $6,000 in maintenance fees. We were also told at Grand Beach Resort in Orlando that if we bought 10,000 more points for $38,000 we could cash in 20,000 points for $10,000 to totally cover our maintenance fees of $8500 +. Both are total lies! She told us she “hates it when agents lie to us.”

Oddly enough, the Better Business Bureau rates Barclays Bank Delaware an A+, given out of 43 reviews, three were positive, one neutral and 39 were negative. There were a total of 988 complaints.

https://www.bbb.org/delaware/business-reviews/banks/barclays-bank-delaware-in-wilmington-de-22002677/reviews-and-complaints

Our readers warning other readers

Inside Timeshare Chronological Articles

Marjorie Menacker – Marjorie says her Diamond timeshare sales agent said she would not have to pay maintenance fees anymore thanks to a one day secret offer.

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

Eron Grant May 12, 2017 reported she was told about a non-existent 30 cent buy-back program.

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

Nancy Callahan April 24, 2017 reported she was not aware until she returned home $17,000 had been charged to a Barclaycard to buy $143,000 of Diamond vacation points. She said she was told to open the card because it would help pay maintenance fees. Polo Towers Resort

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

A Filipino Family April 13, 2017 reported they are in foreclosure.  At a meeting, the sales pitch was, we need to completely get rid of our Monarch points by buying more Diamond points in order to prevent the increase in maintenance fees due to less and less people owning Monarch. Four Barclaycards were opened. Cancun Resort in Las Vegas

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

A Military Family March 6, 2017 reported “Jose, the Supervisor, recommended we buy more Points as that would lower our Maintenance fees by taking back the Sampler. We were also financing the Sampler, so he said they could keep my monthly payment the same”.

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

Irina Allen January 13, 2017 reported she must pay $2,400 a month in mortgage payments at 18% and $29,000 in maintenance fees while her account is suspended. She was accused of posting an ad on RedWeek to rent her points. She was also accused of opening an AirBNB accounts. Irina has never had an AirBNB account.

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

Sylvia Saldana October 25, 2016 reported being told to open a Barclaycard to pay maintenance fees and to buy more points. The Saldana’s gave back $60,000 worth of points and still have a $33,000 home equity loan which their sales agent advised them to take out to reduce Diamond’s high interest rate.

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

The Hurleys, a retired Canadian military family January 25, 2017 reported their struggle with maintenance fees having been convinced to invest their entire life savings thinking they were buying something better than a second home.

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

Related articles

The Arizona Attorney General issues an “Assurance of Discontinuance”, essentially placing Diamond under state supervision March 1, 2017  

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

Our Diamond Member Sponsored Advocacy Group February 15, 2017

http://insidetimeshare.com/owners-coming-together-help/

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

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

Chicken Soup for Timeshares Soul February 7, 2017 on how to file a complaint

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

Billion Dollar Lawsuit filed against Diamond Resorts February 1, 2017

http://insidetimeshare.com/1billion-law-suit-diamond-resorts-international/

Shawbrook and Barclay Bank Inside Timeshare July 11, 2016

http://insidetimeshare.com/shawbrook-bank-announce-irregularities-timeshare-loans-similar-activities-usa/

Sometimes it is hard to focus on the positives when it feels like the battle is all uphill. All we can do is reach out to those who feel like they are lost and alone to let them know Inside Timeshare and our Advocacy Groups are there for them to reach an outcome, whether positive or negative, through the 3Rs or F of Timeshare – Resolution – Relinquishment – Refund – Foreclosure –

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

Once again thank you Irene, this article is just one in a long line of how the banks are colluding with timeshare developers and sales agents to line their own pockets at the expense of you the consumer. This type of lending does and has caused endless misery and financial difficulty for many.

In some respects, we believe that this is verging on the criminal, with no thought or concern for those who are affected.

If you have been a victim of this type of operation contact Inside Timeshare or our Facebook Advocacy page.

advocate 1

 

nightmare

Another Nightmare on Timeshare Street: Client Experience with Diamond.

Today we publish the story of Marjorie Menacker, another Diamond member who contacted Irene Parker for help. This is her story of how they feel about Diamond, it would seem that “Clarity” is out of the window. We let you decide for yourselves.

Will Diamond Resorts ever listen?

Marj

By Marjorie Menacker

May 15, 2017

We, Elle and I, are two more Diamond members asking the company to own up to misrepresentations and deception in Diamond’s quest to upsell current Diamond members. We know we were victims of a “bait and switch”. We were told buying more points would eliminate maintenance fees that had become burdensome due to my brain injury. Our 14 year old son Sam, diagnosed with FSGS, an autoimmune kidney disease in 2015, has added to our burden. Sam has required hospitalization.

I contacted Diamond Consumer Advocacy before seeking legal assistance or filing complaints with the Arizona, Virginia and Nevada Attorneys General, the FBI, the FTC and ARDA for violating ARDA’s Code of Ethics. Diamond’s Consumer Advocacy Department should be named Diamond’s Advocacy Department because their job is to advocate for Diamond, as evidenced by the company’s response, refusing to acknowledge a Diamond sales agent would not be truthful.

In Arizona, Diamond’s new Clarity program does not allow sales agents to deviate from written sales materials. The oral representation clause still exists in the Arizona contract, but the Arizona Attorney General’sAssurance of Discontinuance” forbids sales agents from deviating from the sales agent’s official script. I was hoping Diamond Resorts would honor Clarity’s principles of fair and honest business practices even though we purchased in Virginia. Clarity is about Accountability, Transparency and RESPECT for the customer!

Diamond often offers to “take back” points, for a fee, ignoring the deceit, concealment, violation of trust and “bait and switch” so many from our Advocacy group have complained about, as defined by the FBI as White Collar Crime. Diamond even charges a fee to surrender points while requiring the member to still make any remaining credit card payments. This keeps the “hamster wheel” running as Diamond will merely take back our points and resell them for full value.

We are telling the truth. Since Diamond will not believe us, these Diamond sales agents must be telling unsuspecting consumers day in and day out, any story they can come up with to sell points.

Here’s what happened

Elle and I purchased a week at the Powhatan Virginia resort in the 1980s. Our deeded Powhatan week was given up in July 2007 while staying at Sedona Arizona when we purchased 10,000 points for $21,585. We purchased an additional 6000 points December 26, 2015 for $23,210 having been told about an exciting one day promotion if we purchased that day. The sales agents said we would not have to pay maintenance fees for 2016. Our contract lists a William Humphries as our sales agent, although we spoke to Brian and his supervisor Jeff at Diamond’s Greensprings Plantation Resort.

We were encouraged to open two Diamond Barclaycards to finance the purchase. A total of $23,170 was charged to two Barclaycards. The finance rate is 25.74%.

I suffered a concussion November 9 2015, about six weeks before our sales presentation, after being hit by a construction truck while I was walking in downtown Richmond.  At the time of our presentation, we had not yet realized the full extent of my injuries. Over the course of first quarter 2016 I realized I needed concussion and rehab specialists and quite a bit of therapy to initiate and sustain a slow recovery. I am still being treated for the brain injury and physical injuries from the accident.

The Powhotan sales presentation was very high pressure. We repeatedly stated that we could not afford anything that would require a loan, and did not like the difficulty we encountered finding availability. Maintenance fees were rising faster than we expected.

Brian repeatedly assured us that if we took advantage of the promotion offered that day, we would not have to worry about any maintenance fees after the 2016 calendar year. He said this promotion would have been offered to us had we participated in dinner meeting offers over the previous year. I’ve learned almost all Diamond presentations begin with, “You should have been invited to a dinner meeting.” Out of our sight, Brian obtained special permission to extend the offer only for the day (12/26/2015). Jeff confirmed what Brian offered.

We were told that we would no longer have to pay for annual maintenance fees, having qualified to participate in the special program that was not publicly available.  Brian illustrated in chart form on paper how this program would save us money by trading in part of total points each year. He said the remaining points would actually get “treated as double points.”

We should have been suspicious when he would not let us keep a copy of the paperwork with the calculations he made or even let us hold it to view in a private conversation.  Brian brought Jeff in, and they recreated the chart and both reassured us it was all above board, though warned us not to mention the specifics to anyone when time to sign the contract.

We trusted that Diamond Resorts was a publicly traded company (at the time) with a good reputation, and our expectation was that we would be properly treated and not misled.  They both explained we would receive a phone call annually in December right after our maintenance fee bill arrived and would be guided to trade in the proper number of points to write off the entire maintenance fee each year.

This past December 2016, when the call never came, we reached out to the Quality Assurance Officer whose card we were given. She was unavailable so referred us to Susan Schnibbe who put us in touch with the salesmen around December 20, 2016.  Both Brian and Jeff denied ever telling us this type of program existed, but we were promised a call back the same day as to “what was possible.”

We were in fine shape with the 10,000 points we already owned in the US Collection, and were able to manage to pay the annual maintenance fees. At this time we must pay down a loan instead of planning our vacation.

We told Brian and Jeff about our son’s condition, the ongoing expense and that I was dealing with post-concussion syndrome.  We also have medical expenses resulting from our older daughter’s Medical College of Virginia Pediatric ER for a serious head and back injury from a fall.  Realizing we were duped, our trust of Diamond Resorts has been shattered.  We feel that we were taken advantage of, misled and lied to. We have struggled to provide for our children as well as maintain our good credit rating. This breech of ethics by Diamond Resorts representatives jeopardizes Diamond too.

We would have been happy with the valued level status we had prior to the December 2016 sales-pitch.

Irene at computer

Our Diamond Resorts member sponsored Advocacy Group has been overwhelmed assisting Diamond members who feel they were victimized by sales agents making promises that fall far afield from reality.

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

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

A Diamond representative said there was no misrepresentation.

Original letter sent to David Palmer January 7, 2017

At the time of our purchase, former Diamond CEO David Palmer had just made over $173 million on the Apollo buyout and over $26 million in executive compensation. That could be why he did not answer the letter we sent him.
7 January 2017

David F. Palmer, CEO

Diamond Resort International

10600 West Charleston Boulevard

Las Vegas, NV 89153-1260

Dear Mr. Palmer,

In December of 2015, we attended a very high pressure sales and “owner update” in Williamsburg at GreenSprings plantation sales office. The salesman, Brian and his manager Jeff were very demanding of our time even though we told them we had 3 middle-school-aged children waiting for us back at our condo. I had suffered from a serious concussion about 6 weeks earlier after being hit by a construction truck while I was walking in downtown Richmond.  We had not yet realized the full extent of my injuries at the time. I am still being treated for the brain injury and physical injuries from the accident well over a year later. We repeatedly stated that we could not afford anything that would require a loan and the growing maintenance fees. Brian assured us that if we took advantage of the promotion offered that day, we would not have to worry about any maintenance fees after the 2016 calendar year. We were told this promotion was something that would have been offered to us had we participated in dinner meeting offers over the previous year.  Brian obtained special permission, out of our sight, to extend the offer to us that day (12/26/2015), and that day only.

The bottom line is we were told that we would no longer have to pay for annual maintenance fees, having qualified to participate in the special program that was not publicly available.  Brian illustrated in chart form on a paper how this program would save us money by trading in part of our total points each year but the remaining points would actually get “treated as double points.”  We should have been suspicious when he would not let us keep a copy of the paperwork with the calculations he made or even let us hold it to view in a private conversation.  Brian brought Jeff in, and they recreated the chart and both assured us it was all above board, though warned us not to mention the specifics to anyone when time to sign the contract. They both explained we would receive a phone call (annually) in December right after our maintenance fee bill arrived, and we would be guided to trade in the proper number of points to write off the entire maintenance fees each year.  This December, when the call never came, we reached out to the Quality Assurance Officer whose card we were given.  She put us in touch with the salesmen around December 20, 2016.  Both denied ever telling us this type of program existed, but we were promised a call back the same day as to “what was possible.”   We have received no return calls.  As baby boomers, raised by parents from the depression era, we do not like to borrow money for anything. Both Brian and Jeff were told of our son’s condition, the ongoing expenses and that I was dealing with post-concussion syndrome.

With the enlightenment that we were duped into a loan and will also experience increasing annual fees, we feel that we are in severe debt and our trust of Diamond Resorts has been shattered.  We feel we were taken advantage of, misled and lied to, frankly. We have repeatedly asked for an avenue to appeal for a reversal and revoke the contract from last year. Actual ownership, it seems, is not an advantage, considering the expense we pay for the maintenance of these resorts.  We would like to return to the status prior to the December 2015 sales-pitch.

I do hope that you take our situation seriously, and, regardless of the internal consequences to the salespersons who so poorly and unethically represented Diamond Resorts, you and I begin an authentic dialogue about making this right.  My partner and I are quite willing to work this out efficiently and honestly, directly with your office or a representative to whom you would direct us.

Thank you for your time.  We look forward to hearing from you by traditional mail or email as how we may begin this dialogue.

Most Sincerely,

Marjorie S. Menacker

Inside Timeshare would like to thank Marjorie for giving us Her story so we could share it with you, this is important as it shows that you are not alone.

Inside Timeshare and the Facebook Advocacy page have been receiving many stories just like this, if you wish to share your experiences of these presentations you can contact Inside Timeshare or the Advocacy page.

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