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Brenda Santos

Friday’s Letter from America

Welcome to another edition of Letter from America, this week we publish another “Nightmare on Timeshare Street” which was originally published on 21 December 2018 but was withdrawn due to having to be changed. It is another story about the ongoing problem of Elder Abuse, Brenda Santos explains her parents “Nightmare”, edited by our very own Irene Parker.

The main character in today’s article is a name that has come up many times on Inside Timeshare, Rick Casper, a name that is well known around timeshare circles. Yet Diamond allowed him to continue his deceptive practices even though they should have known what he was doing, in this I believe Diamond is as culpable as Rick Casper.

We think that you will be shocked once you have read this article, so without any further ado, on with the last Letter from America before Christmas.

Why I Feel My Parents Experienced Elder Abuse

Their Encounter with Diamond Resorts and Rick Casper

By Brenda Santos, a daughter and Irene Parker

December 21, 2018

January 4, 2019 Retraction by Irene Parker

Diamond Resorts, via the Duane Morris law firm, has demanded that Inside Timeshare publish a retraction due to a misinterpretation of a sentence in the italicized paragraph below.

We mistakenly stated that Dan Percy allegedly sexually assaulted Rick Casper’s fiancée at Diamond CEO Michael Flaskey’s penthouse, when the alleged sexual assault, according to Rick Casper, took place in their guest accommodations. It was my understanding Michael Flaskey’s penthouse was the same property as the Villa, in other words, the Villa and Michael Flaskey’s penthouse were one and the same.

After receiving the letter objecting to the statement, Charles Thomas immediately deleted the offending sentences. However, Duane Morris/Diamond has demanded a retraction we thus provide.

We apologize for the misunderstanding. Our intent was to shed light on the actions twenty Diamond members contend were perpetrated by Rick Casper. The alleged sexual assault was mentioned because Rick Casper alleges he was fired for reporting the alleged sexual assault to Diamond’s Human Resource department, not because he created reasons why existing member had to buy additional points.      

The actual wording in the complaint filed in US District Court District of Nevada reads as follows:

  1. Plaintiff (Rick Casper) and Ms. McGrath left before the concert ended to retire early to their guest accommodations.  
  2. Upon information and belief, after the concert, Defendant Percy and other Diamond Resorts employees and contest winners were invited by Michael Flaskey to his Penthouse Suite at Cabo Azul for more cocktails and then later to the hotel bar, whereupon Defendant Percy and another Diamond Resorts employee were nearly engaged in an altercation.
  3. Upon information and belief, Percy was drinking heavily at the dinner, the concert, and at Flaskey’s Suite and hotel bar.
  4. Plaintiff’s guest accommodations at the Diamond Resorts event were at guest bedroom at Villa Palmila, a Diamond Resorts property (“Villa”). The Villa was a well-appointed house with several bedrooms. Plaintiff and Ms. McGrath had their own bedroom and shared the Villa with other Diamond Resorts employees and contest winners who occupied the other bedrooms.
  5. To get to Plaintiff’s bedroom in the Villa, it was necessary to walk through two sets of double doors.

Original paragraphs:   

According to the lawsuit, Mr. Casper earned over $1 million in 2015, $2.4 million in 2016 and $2.4 million in 2017 selling Diamond timeshare points. Why did this go on so long when members reported his actions as far back as early 2016? Members report being told Casper said the member would be able to sell points or eliminate maintenance fees if they bought more points – programs that did not exist. Casper filed the lawsuit alleging his Diamond VP Dan Percy sexually assaulted his fiancée at Diamond CEO Michael Flaskey’s penthouse in Cabo San Lucas. Casper alleges he was fired for reporting the incident to Diamond’s Human Resource department.

As Rick Casper alleges, “At instruction of DIAMOND RESORTS, Plaintiff CASPER was asked to identify or facilitate issues that were wrong with the owners’ current ownership points.” Case 2:18-cv-01455-GMN-NJK

Original December 21 article with the offending paragraph omitted:

Having connected with six other grown children whose parents have been harmed by timeshare, it is our intention to organize a media, legislative and regulatory outreach for the purpose of alerting the public as to unfair and deceptive timeshare sales practices which we feel also constitutes elder abuse. We are professionals. Three of us have parents who are veterans, one a double Purple Heart recipient.

My father Dale, age 73, is an Army veteran and was a Captain in the Vietnam War. He earned a Bronze Star for Victorious Service. My mom will be 73 in January. Our family has been financially and physically devastated by their decision to buy Diamond timeshare points. My parents always lived debt free, saved to buy things like cars, so having to do a reverse mortgage because of what these sales agents told my parents is unbearable. We have learned we are not alone.

Roy and Lillian Simmons, a Navy veteran and a retired letter carrier

http://insidetimeshare.com/tuesday-slot-irene-13/

Raymond and Teresa Mori, Mr. Mori a Marine Veteran, two Purple Hearts

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

My parents represent the 20th Rick Casper complaint from our support group of over 2,000 Diamond Resort families. I have learned Rick Casper’s name is known among law firms outside of our group.

In a lawsuit Rick Casper filed August 7, 2018 against Diamond Resorts and his former VP Dan Percy, Rick Casper admitted he created reasons or problems why existing members needed to buy additional timeshare points, as happened to my parents. A summary of the 20 Rick Casper complaints are listed below. As Diamond understands Rick Casper employed deceptive and unfair sales tactics, it is wrong not to recognize and correct what Diamond and Rick Casper did to my parents. I challenge anyone to read the 20 complaints and not conclude my father is telling the truth.

According to the lawsuit, Mr. Casper earned over $1 million in 2015, $2.4 million in 2016 and $2.4 million in 2017 selling Diamond timeshare points. Why did this go on so long when members reported his actions as far back as early 2016? Members report being told Casper said the member would be able to sell points or eliminate maintenance fees if they bought more points – programs that did not exist. 

As Rick Casper alleges, “At instruction of DIAMOND RESORTS, Plaintiff CASPER was asked to identify or facilitate issues that were wrong with the owners’ current ownership points.” Case 2:18-cv-01455-GMN-NJK

My parents were former Sunterra owners since 2006. Their problems first started when they went to a timeshare presentation at Diamond’s Daytona Beach Regency resort on May 11, 2015. According to my parents, they were told they were not full Diamond members so it was important to get things changed. The sales agent explained that Diamond took over Sunterra due to bankruptcy.

That was not true. Diamond Resorts acquired Sunterra, but not because of bankruptcy: https://www.travelweekly.com/Travel-News/Hotel-News/Diamond-Resorts-to-acquire-Sunterra-Corp-for-700-million

The following is what my father recounted to me about his Diamond experiences.

The Florida sales agent in 2015 explained that we needed to get out of our current Sunterra contract to become Diamond members. He used scare tactics to get us concerned that if we did not make the switch to Diamond officially our current investment with Sunterra would be worthless. The sales agent said if we purchased Diamond points, we would no longer be part of a bankrupt orphan group.

We previously purchased a Diamond Sampler (trial) package but it was almost impossible to get a reservation. We were trying to figure out how to get out of it when the sales agent presented what seemed to be a perfect solution. He said that by buying additional points, Diamond would fold our Sunterra contracts into one new Diamond points system. Several managers explained that we were not going to have enough points to do anything now that the Sunterra credit card was not able to be used due to the bankruptcy. The manager told us we would have legal issues and would risk losing everything and would not be able to sell the timeshare if we were not fully vested Diamond members.” We have learned Diamond points are virtually worthless.

After six hours, we were exhausted. Irene is diabetic and her blood sugar was increasing. We were stressed from hearing the news about our bankrupt investment, so we signed fast just to get out of there to get Irene’s blood sugar taken care of. We were thrilled to be out of the Sampler and thought we were finally set as a fully vested Diamond member. Diamond sales agent Mike sounded very helpful so we bought 2500 points for $10,925.

Three months later, on August 11, 2015 we met with Scott at Cancun Resort in Las Vegas. This meeting lasted seven hours. The representative kept reiterating how he was just trying to help us get out of the mess we were in because of our Florida purchase.

Scott said the only way to get the best benefits was to purchase more points to get to Silver status. He explained that until you get to Silver you will have all kinds of problems. He also said our maintenance fees would be taken care of and we would be able to sell points back, possibly at a profit. We said we were not interested. A manager told us we needed to know the truth about what happened to us as a result of our Florida purchase because the changeover to Diamond did not happen correctly. He said we were still not fully deeded with Diamond Resorts.  

Diamond points are not deeded.

The sales agents said we had to purchase 6,500 points to get out of Sunterra completely to become a true vested Diamond member. He told us the vacations and airline tickets would pay for the points so we would not be out any other money and that maintenance fees would not increase, but be capped by reaching Silver status. None of this was true.

I was offered a Barclay credit card to pay for the fees. We purchased 6500 points for $22,945. Silver status benefits were totally misrepresented. Our maintenance fees were not taken care of. We found out later that our prior contracts were indeed with Diamond and legit.

My parents purchased 7500 points on March 15, 2016

Purchase price:  $32,625

We went to a timeshare presentation on March 15, 2016 and met with Rick Casper at Cancun Resort in Las Vegas. Casper told us when we started the presentation that he was not going to sell us anything. He said we had not been told the truth about a lot of things and that he wanted to make things right. “With the program I am in charge of there will be an exit strategy so that someday, if you don’t want the timeshare and your kids do not want it, they can exit out easily.” He said he was a family guy and would not want his kids to have to deal with high maintenance fees so it would be better to ensure a cap on maintenance fees. He explained how we or our children would never be able to get out of the timeshare in the future unless we were part of his special group that would allow us to exit. He said we could make money on our investment by selling points.

Rick Casper showed us a worksheet as to what we would save by using points for maintenance fees and airfares. The math figures made sense. I already had a Barclay card that I used to finance the 2015 purchase. Rick Casper told us that if my wife could get her own Barclay card we could put almost the entire purchase on the Barclay Mastercard.  

We were there for over seven hours. We felt like hostages because they would not give us our free gifts until Rick’s supervisor finished. We bought with the understanding that we would be able to sell points. The charges on our Barclaycard ended up being way more than was disclosed.  Rick Casper said our Gold status bonus points would put a cap on maintenance fees for generations, but our maintenance fees skyrocketed as a result of this contract which was supposed to consolidate four prior contracts.

We signed fast because Irene almost passed out due to her diabetes and blood sugar levels. We told Rick we had to leave. We were tired and already under a lot of emotional distress to find out that Scott Pritchard did not fix anything the year before. We felt pressured to make it right or risk never being able to use points to pay for maintenance fees or exit out of the timeshare without being in Rick’s special elite program.  

When we received our Barclay credit card statement we noticed an additional $1000 charged for what Rick Casper presented to us as a gift from Diamond.

We contacted Diamond. A representative told us that there was no way we could use our points to pay for maintenance fees. I called and asked Rick Casper to correct the issue. His response was in a loud screaming threatening voice, “How dare you accuse me? I didn’t tell you those things; you are trying to get me in trouble. I am going to sue you if you pursue this and go to my supervisor.” I told him that he was dishonest and that we would take action.  His screaming was abusive, degrading, and caused me physical and mental distress. I have been through a lot of trauma as a Vietnam War veteran but have never been screamed at and degraded like Rick Casper did to me. I ended up very traumatized emotionally which caused me to have a stress attack in 2016.

After recounting this incident for my daughter a few weeks ago, I had a similar attack and had to be admitted to the hospital for heart symptoms. The doctor was a different doctor from the same medical group. He noted from my patient history that the mention of Diamond prompted my 2016 symptoms. I was put on blood pressure medication due to this emotional stress and have daily deteriorating health issues as a result of the stress this causes me every time I walk into my house and know I have debt on my home as a result of tactics I consider to be an organized effort to take advantage of us.

We had to do a reverse mortgage on our home as a result of these timeshare purchases because our social security income was too low to cover the total charged on both Barclay cards. I worked as a Baptist pastor until retirement. My credit score was 817 the day we met with Rick Casper but it has gone down considerably.  

In May 2016 we went to another Diamond presentation to try and figure out how to use our points to pay for our maintenance fees since we were having a hard time getting through to anyone at Diamond.  The timeshare representative was very embarrassed about what had happened and apologized on behalf of Diamond Resorts for the deception. He told us he wanted to help us understand what we had. He said that paying $32,625 for 7500 points was unheard of and that we could not do anything Rick Casper told us we could do at our current Gold status, which he said was only put in the system temporarily.  

That Diamond representative told us that we should take action and file a complaint. He explained how using points for an airline ticket would cost us 11,000 points (or about $2,200 for one domestic airline ticket) so not a good deal. We could not use points to pay for maintenance fees at Gold status. Only Platinum members can use points to pay maintenance fees and at only $.04 per point.  

Gold status did not give us what Rick Casper said it was going to give us, which included paying maintenance fees with points, exiting out of the timeshare, and being able to sell our timeshare points to make money on our investment.

We are both in terrible health and financial distress as a result of this Diamond resort investment trauma.

I learned of this only recently. I’m still trying to grasp the situation.  Diamond responded denying the request to cancel the last purchase because they used their points and said that nothing Rick Casper said was in writing. What is there to stop this from happening to others if misrepresentations continue unchecked? I believe my parents. How could anyone not believe them after reading so many similar complaints? I sent this article to Diamond for comment on December 17, but they did not respond.   

Twenty Rick Casper Complaints and excerpts from articles submitted by those who purchased points from Rick Casper:           

  1. SM, age 65 and his wife 81, 21 years Army, trained chemical, biochemical, nuclear defense RESOLVED http://insidetimeshare.com/nightmares-timeshare-street/

After the last Rick Casper up-sell, their monthly payment escalated from $431 a month to $2200. They told Mr. Casper they were worried about passing this burden on to their heirs.  

  1.  CL $75,000 RESOLVED – A Stage 4 cancer patient

During our meeting we were told about all the changes that had been discussed at the dinner that would allow us to sell our points. My husband has cancer so all that was going through his mind was trying to make a choice that would help me later on if the chemo didn’t work and when Rick Casper convinced him this was the answer that’s all that my husband heard.  

  1. N C, ages 67 and  69 $142,000 RESOLVED

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

We are both disabled and retired from civil service. Dan is a retired army Lt. Colonel and a combat Vietnam and Desert Storm veteran.  

We are Platinum members. We feel our most recent Diamond purchase was made under deceptive and extremely high pressure selling techniques. We had been struggling with two loan payments of $329 and $121 but the most recent purchase we did not even realize we made, will drive us into foreclosure. Rick Casper in Las Vegas on January 22, 2017 sold us 50,000 Diamond points bringing our total number of points to 106,000. Our new loan payment is $2,133 a month which we cannot pay. The $142,400 purchase of 50,000 points included $17,000 charged to a DRI Barclaycard. We did not realize we made this $142,000 purchase until we returned home and checked our credit cards. As I have had a double mastectomy, undergone chemotherapy, radiation and have had two knee replacement surgeries, buying more vacation points was in no way our intention. Dan has had two minor strokes and a mild heart attack. He has chronic pain and is on 25 medications prescribed by the VA and our doctors. He suffers from PTSD. I was in terrible knee pain. Rick provided me with two glasses of wine in a Styrofoam cup with plastic lids because alcohol is not allowed at presentations.

Rick said we should join the new “Legacy program” that allows members to sell blocks of Diamond points to a third party with all Diamond benefits intact.  He said if we joined the Legacy program “people would be standing in line to buy our points.”

After six hours, my pain increased and I became confused. I walk with a cane so it was an effort just to walk to the restroom as it was some distance. Dan was confused due to diabetic symptoms. We were so overwhelmed by the time we were signing contracts, we did not even realize we were buying points. Rick kept saying we would receive 50,000 bonus points. We signed just to get out of there.

  1. KK, age 61 $117,000 RESOLVED

Questionnaire sheet asked: Had you attended a dinner? What is your exit strategy? Apollo had dinners informing members Cloobeck was leaving.  Not everyone heard the presentation so Rick was talking to Platinum members about the Legacy program. He said DRI never allowed you to sell points. This will. He knows real estate people can get $5 on resale for DRI points. New members are paying $9 so if you buy at $4 it is easy to sell. He had contacts that he could set us up with. 12/29/2016

5 RB, age 66 $75,000 RESOLVED

Mr. Casper said on at least four occasions I was eligible for a Pool Party Upgrade that would provide an exit strategy. He said the program was about to expire so I needed to write a sentence that said I wanted to do this and he would get the purchase approved. I never received a copy of the sentence. The purpose was to make my existing points more valuable. Mr. Casper went on to explain that this exit strategy would allow me to monitor and sell points. He mentioned that he is a family man and does not want to pass his points and maintenance fees on to his kids.

6 JH, age 56 $132,000 RESOLVED

The main benefit that Rick Casper presented was the ability to convert points directly into cash at $0.30 per point. If we had leftover points, he said we could be reimbursed in cash. All we had to do was contact Rick’s Vice President Dan Percy who would process the transaction and put the money on our reloadable Visa card.

I continued to ask questions about each benefit to be certain.  I worded questions differently to see if I would get the same answer.  I threw out this scenario; if at the end of the year I have 30,000 points still sitting in my account, you’re telling me that I can get reimbursed cash for these points at $0.30 per point?”  His response; “Absolutely – You contact Dan Percy and he will load $9,000 onto the Visa card.” We purchased 40,000 points to get us to the level of Super Platinum. There is no level above Platinum.

7 AC, age 68 $55,000

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

We purchased an additional 20,000 points on July 16, 2016 for $55,200 from Richard Casper. The reason is because Rick told us if we went from Gold to Platinum, he could sell points to substantially reduce our maintenance fees by submitting receipts to him for goods and services. We have never seen a tangible way to reduce our current $8,685 fees.  

During the presentation we asked about combining our eight contracts. Casper advised that any free and clear points sold on the resale market will have the same benefits except loyalty level as long as no more than 20,000 points were sold to one individual so it would be better not to combine the points. None of this was true. Casper stated that many Gold owners would be happy to buy 20,000 points at the lower price to become Platinum.  

We contacted Richard Casper by email on April 7, 2017 because we needed to sell 20,000 points. We received an auto reply stating to contact VP Dan Percy. Dan Percy stated that Diamond Resorts sales personnel don’t assist people who need to sell points.

8 JM, age 61 $90,000 RESOLVED

Rick Casper was introduced to me as a Platinum specialist. Mr. Casper said I made a big mistake buying Hawaii points and a bigger mistake transferring the 20,000 points I bought in Daytona, due to a class action lawsuit against DRI that caused exorbitant increases in maintenance fees because of storm related beach erosion.  

Mr. Casper said I had to transfer back to US Collection and if I owned 100,000 points I would be unofficially known as double Platinum and that I could sell unused points back to Diamond at 30 cents per point. Mr. Casper said this was closely regulated by the authorities. Mr. Casper said by selling these points back I could pay some or all of my maintenance fees for that year and years to follow. Mr. Casper said this would allow my children not to have to pay maintenance fees. “You are really passing your children a bill.  We have a new program if you reach me in November to let me know what you did not use. Diamond will buy the points back at $.30 to, ‘put them back in the kitty’. We need the points because we can sell them to other people who need them. What are you waiting for? This is a no brainer.”

I purchased an additional 30,000 points. I now owned 115,000 points. Mr. Casper said the reason for the 30 cent program was due to the sale of Diamond to Apollo. Mr. Casper said Mr. Cloobeck wanted to do something for members who owned over 100,000 points to show his appreciation. He included the 30 cent per point program in the terms of the Apollo buyout.  

In November 2016 I called Rick Casper to inform him I had 80,000 points I wished to cash in so that I would receive $24,000 as he had illustrated.  He denied any knowledge of the arrangement.  I spoke with Dan Percy. He said no such program existed.    

  1. SW 100% disabled Army veteran Agent Orange exposure

April 6, 2018 $170,000 1099 issued

http://insidetimeshare.com/fridays-letter-america-44/

In 2016 we went to Las Vegas and stayed at Diamond’s Cancun resort and met with Rick Casper. Mr. Casper said if we upgraded, we would be able to cover maintenance fees. However, maintenance fees increased after the upgrade from $5,000 to $16,000 a year. After five hours, my blood sugar was at 400. I was recovering from congestive heart failure. Rick Casper said it would cost us $198,000, $2500 a month in payments for the next 10 years but after ten years we would have no maintenance fees and no loan payment. Rick Casper said, “Then the little people will be paying for your vacation.” He said it would take up to a year and a half to set up but he would personally handle it. He said since we were only paying $3, he had a guy that could sell points for much more than that and the proceeds would pay for maintenance fees. I ended up paying a company in Branson MO $1500 to get out of this; but now the IRS has issued us a 1099 for $170,000. I’m 71 years old.

#10 MP RESOLVED, a widow, a speech teacher, age 71

April 2018 Platinum

My husband John and I purchased an additional 25,000 US Collection points May 2017 from Rick Casper. He said we had to purchase these points to take advantage of a program that would allow us not to have to pay Maintenance Fees after we paid off our loan. Mr. Casper said the program description had been sent to us in a letter we should have received. Rick Casper told us that because we did not get a letter, Diamond would still offer what had been offered.  He did not have a copy of the letter. Rick Casper told my husband and me (John was still alive at the time), that once we paid off our loan, we would not have to pay maintenance fees.

The scare that Rick put into me was because he said we would be paying a million dollars in maintenance fees over our lifespan if we did not buy the additional 25,000 points.  Rick Casper explained how Diamond maintenance fees would continue to skyrocket. We purchased the 25,000 points for $86,250. Wed had purchased 53000 points previously.

John was in much pain. We did not know at the time he had cancer, spine and skeleton, which had metastasized. John kept saying, “I do not want to do this.” Rick Casper even asked, “Is he alright?” I was incredulous because it was obvious John was not alright. He was diagnosed with cancer October 13, 2017. Our presentation started at 8:30 AM and did not end until 7:30 PM. John was terribly affected by my decision. He couldn’t get over what we (I) had done because we already had enough points.

Well, in order to not have to wait ten years to not pay maintenance fees, I went right out and got a lower interest rate home equity loan. I felt this way I could pay the loan off in 30 days so that I would not have to pay 2018 maintenance fees.

#11 D H UNRESOLVED

We told Rick Casper about our concerns:

  1. Concerned about paying even more maintenance fees if we purchased more points.

Rick reassured us that if we purchased more points we could use them to pay all our maintenance fees every year and still have points left to travel.

We trusted Rick so we bought 25,000 more points, upgrading to Platinum so that we could take advantage of the .30 per point benefit. How can this be justified? These deceitful sales tactics go against many laws (FBI, ARDA and SEC to name a few).

  1. Concerned that we couldn’t use the points we already had, let alone buy more.

Rick was very skilled in reassuring us that all would be ok if we purchased more points. He even stated that as Platinum he would be our personal concierge.

  1. Concerned our timeshare was not a good investment.

Rick reassured us it was a good investment, and that points were selling for more than what we originally paid; he showed us a chart with yearly increases. He mentioned that he had a friend that resells timeshares and that DR points were in high demand. He said that if we ever decided to sell that he would put us in touch with his friend, who can easily sell our points for double what we paid. This eased our minds. Nov. 2016, I texted Rick and asked him if he still knows a guy that’s willing to buy our timeshare. He never replied.

#12 J K We were Gold members, told we could save on maintenance fees via a reloadable VISA card that would be credited to pay maintenance fees. Purchasing additional points or upgrading to Platinum was never mentioned.

Rick Casper said DRI VP Dan Percy would take care of our 2018 maintenance fees.  Due to signing electronically, we were not aware we had purchased an additional 30,000 points until we returned home and reviewed the actual documents, received new credit cards, and invoices. It was difficult, if not impossible, to read the contract via the electronic signing.

I have learned there is a real program called 20/20 or 30/30, depending on the loyalty level in which 30% of vacation points can be credited toward travel discounts.  Rick Casper adulterated the actual program to be able to cover himself and Dan Percy. In other words, you can redeem points at $.30 per point, but not for the reasons Rick Casper stated. You cannot redeem points at $.30 per point to pay maintenance fees.

#13 MS, ages 80 and 84 Parents of #12

Rick Casper said Dan Percy would handle our 2018 maintenance fees. He explained that the program they were up for and the current ownership will benefit us and allow for better use of ownership.  Due to the electronic signing of the contract, we did not know we had purchased 30,000 additional points until we returned home and could properly review the documents, received the credit cards and invoices. It was difficult, if not impossible, to review the contracts on the small Tablet.  

#14 M Y, age 72

We went to Polo Towers September 2, 2017. We wanted to know how to reduce maintenance fees. Rick Casper told us that the only way to reduce maintenance fees was to buy more points. He asked, “Are you happy about paying all these maintenance fees?” We purchased 47,500 additional points.

When we got home, three Barclay cards came in the mail. We were charged almost $28,000. He never mentioned that he was even going to open the cards. We already had one Barclaycard. When we got to our room, we reviewed the documents, but it did not really show the Barclay charges.

The very next day we told Joey Guiterrez we wanted to cancel. He said if you cancel you will lose all your benefits and be fined $40,000. I asked why and he said that’s just how it is. When I complained, he denied saying this. My husband was with me. I became depressed for months.

#15 T T Rick Casper complaint

TT (age 51) and IT

25000 points purchased Polo Towers, Las Vegas, NV on September 5, 2017

Sales Agent: Richard “Rick” Casper – Real Estate License S.0172679

Purchase Price: $102,000

Down Payment: $29,000

Amount Financed: $73,750 @ 12.1305%

Down payment charged to Barclay Diamond Cards

Rick Casper said we would not have to pay out of pocket for Maintenance Fees ever again, and we would not have to worry about losing any points at the end of the year – Dan Percy, VP of Sales, will be in contact with us after 21 days and will work with us.

Casper said that if we did not purchase, we would not be included in the new program to use our points to pay for all our maintenance fees. He caught our interest when he told us how the Maintenance Fee could be fully paid for by points and the credit card program by getting credit for paying for the Maintenance Fee, flights, car rentals, cruises and other travel expenses. He said the points could be redeemed at $0.30/point. What Rick told and showed us addressed many of the struggles and anxieties that we faced owning the timeshare, so we were glad to hear about the new programs (we later learned did not exist).

Rick said to get started; we needed to purchase more points. I asked Rick specifically: “If we were to be in this new program, would we need any out of pocket money to pay maintenance fees?”  He replied that by using points and the credit card, that with the additional 25000 points, it would be enough to cover the maintenance fees for future years.

I was unemployed at the time, so asked if we could delay purchasing more points but he became very strict in explaining the offer was only for this session, and how he would note that we refused the new program on the exit form. We felt compelled to purchase the points. We definitely do not need these additional points.

Dan Percy moved to Hawaii and directed inquiries to go to Joey Gutierrezs.

My wife and I have determined through contact with Joey Gutierrez and others at Polo Towers that the program for points for maintenance fees does not exist. Platinum members can pay maintenance fees at $0.04 (not $0.30) per point and will not pay the full MF amount of $8,631.  

#16 G K

We bought points five or six times. We did not have problems with Diamond until we encountered Rick Casper.  We purchased 50,000 points. I called Joey Guiterrez two days after we purchased to cancel. He was skillful in dodging the rescission clause.  Our Polo Towers meeting with Rick Casper was August 18, 2017

I was told at the beginning of the meeting that I would be spending $700,000 over the next 20 years just in maintenance fees. Rick Casper said he would help me create a program to cover these expenses. I pulled out my cell phone to use the calculator to check this figure. Mr. Casper assured me the amount was correct so I put the calculator away. The $700,000 was not correct. I created an Excel spreadsheet based on the average increase of 5.6% a year.

My maintenance fees were about $14,200 at the time. Rick Casper said that if I purchased 50,000 points, I would be able to redeem the points at an average of $.20 a point which would generate $10,000 in cash. Rick Casper said I could then sell half the points I already owned to generate the remaining amount to cover the maintenance fees.

I called Diamond Resorts around February of 2018 and asked to redeem 50,000 points. I was informed there was no such program. I would have to use my points for travel such as airfare ($.10 a point) or restaurants or lodging outside Diamond at only $.10 a point. There were very few ways in which to use points for this. I don’t need a new TV let alone dozens of them.

Rick Casper said I would be assigned my own agent (Daniel Percy) in Vegas to assist me with all bookings. When I called I found out that the bookings would simply be made through Interval International. It seems Daniel Percy worked in tandem with Rick Casper.

No mention was made of the fact that purchasing an additional 50,000 points would raise my maintenance fee by approximately $8,300.

AFTER signing, I was given a folder with the spiral bound book that said to the effect: “Read This Thoroughly before Signing Any Documents”.  Upon reflection of the documents I signed, I found that my maintenance fees would now increase by over $8000 meaning any efforts to “cover my maintenance fees” with this contract were useless!

We had an early start to the airport the next morning to arrive in Seattle for our Alaska Cruise. I placed a call Mr. Joey Guiterrez. I told him I wanted to cancel. He spent about 20 minutes trying to convince me otherwise. He finally said, “Well, if that is what you want” and left it there. On the sixth calendar day, Mr. Guiterrez contacted me. I had called to ask why the contract had not been cancelled. He stated that the contract had to be cancelled in writing within five calendar days. Mr. Guiterrez obviously waited until the sixth calendar day to dodge the rescission period.

The only response from Diamond was, “You signed the contract.”  Noting all of the lies that lead me to sign the contract were a non-issue according to the person I talked to.  .

#17 P B

Disabled, worked ER for 20 years, attacked by patient, the patient did know what she was doing

Age 63 LA County Sheriff’s Department

Deputy Sheriff for 25 years

Our accounts have been foreclosed.  We were in good standing until we met with Rick Casper.

In 2016 we stopped at Polo Towers.  We told them we were having trouble financially because I was on disability income and my husband was just retired. They said they could offer us a refinance but it ended up we purchased US Collection points not even knowing we had purchased them. They said they would slip the paperwork under our door. They did not. We had no documents provided to us. Before we got on our plane to continue on a Dream Holiday, I received an email (which Diamond says does not exist but I have a copy) saying attached is our paperwork and that they would mail the documents. The purchase made us Platinum but we were not even aware we had bought additional points.

Rick Casper did the paperwork process. He went over with us about the refinancing and that the 2017 and 2018 maintenance fees would be included.  We had met Dan Percy before the closing process. He also confirmed that we were doing a refinance that would include the maintenance fees and that this transaction would reduce our monthly payments by a few hundred dollars per month.

They said Dan Percy would be our contact person.  An email said that if we received a maintenance fee invoice, we should contact Dan Percy. We contacted Percy after we received a maintenance fee invoice for $15,000. He said we owe the money.

This company is beyond belief.

#18 TF A non-disclosure agreement signed.

#19 TZ 60,000 points were purchased, but I rescinded the Casper purchase because they would not put in writing what I was told.  Casper tried to convince us to get a mortgage on our home. He said there was no way to get out of a Diamond contract.

Rick Casper complaint #20 are my parents.

Thank you Brenda for your contribution and also to Irene for taking the time to edit, as you have seen, this character has caused untold misery and that is the ones we know about. The question is how many more people have had to suffer a “Nightmare on Timeshare Street” because of Rick Casper?

This message is not just to Diamond, but to all timeshare companies who allow their sales agents to do what the hell they like, just so they can line their pockets with millions in commissions. They are your employees, they are selling your product, they are selling your name, you are “RESPONSIBLE FOR WHAT YOUR SALES AGENTS SAY!”

If you have any comments or have a similar story to tell, then contact us at Inside Timeshare by using our contact page, we will get back to you.

The Tuesday Slot

Welcome to the Tuesday Slot, today in her article Irene Parker continues to address a very serious problem that of timeshare foreclosure, especially for seniors. Inside Timeshare has been highlighting this problem for some time and we will continue to do so.

Timeshare Foreclosure Explained to Lenders

When and Why Some Timeshare Buyers Have No Choice

The Heartbreak of Senior Timeshare Foreclosure

We had to do a reverse mortgage on our home as a result of these timeshare purchases because our social security income was too low to cover the total charged on both Barclay cards. A reverse mortgage was the only way we saw to deal with the financial distress.  My credit score was 817 the day we met with the timeshare sales agent but it has gone down considerably after that purchase.

A former Army Captain, Vietnam

By Irene Parker

December 18, 2018

Over the past year I have received calls from mortgage brokers calling on behalf of former timeshare members trying to buy a house, battling the decline in their credit score due to timeshare foreclosure. When I explain to the lender that consumers are often left with no choice but to foreclose, due to no secondary market and the contract perpetual, the call has always ended with the mortgage broker convinced.

Six grown children, alarmed and astonished at the deceit their parents described at the hands of timeshare sales agents, have connected to bring to light unfair and deceptive timeshare sales practices. Their parents are being driven, or were driven, into timeshare foreclosure. They possessed credit scores over 800 until they were up-sold into insolvency, now trying to understand how our country could leave senior after senior financially devastated. Two of the six families have previously published articles. On Friday we publish an article submitted by a third family, her parents financially and physically devastated because they believed a series of timeshare sales agents. We have received 20 complaints directed against their sales agent. He earned $2.4 million selling timeshare points in 2016 and $2.4 million in 2017. The complaints are similar or identical.

If you buy a house, car, or boat, and there is loan outstanding, you can still sell the asset. Timeshare companies themselves don’t want the timeshare back because, when no longer wanted or needed, a timeshare is a liability. What would happen to the primary housing market if we suddenly learned there was no secondary market? Damages suffered by senior timeshare members, often accumulating points over several purchases, are commonly $100,000 to $300,000 or more, easily the cost of a home. Often the  report of deceit happens at the last one or two purchases, because a level of trust developed over the years until they purchased for reasons that did not exist – programs that would relieve them of maintenance fees or allow them to sell points. Members reaching out to us all report that they were told at purchase the timeshare would be easy to sell, it is real estate, an investment.

When the buyer has experienced unfair and deceptive sales practices, the result exacerbates the financial disaster, as has been reported by many of the 626 families that have reached out to us angry, overwhelmed and desperate. Some have learned within 24 hours after the rescission period, what they bought was a far cry from what was described.   

Such deceptive practices are known within the industry as “pitching heat” and the answer to complaints are routinely dismissed with, “You signed a contract” or “We are not responsible for what our sales agents say.” In Nevada, all complaints we have received that were submitted to the Nevada Real Estate Division quickly received a “You have no proof” denial. In Florida, the response has been, “Verbal representations are hard to prove.”

Fine, but why not let the consumer know a timeshare sales agent can say anything to make a sale. Let the consumer know they can’t believe a word a timeshare sales agent says. That would at least be transparent. Florida is a two party state, so consumers are not even allowed to record. How is proof even possible?

At the end of this article I list several Attorneys General settlements and lawsuits supporting my claim that the finger needs to be pointed also in-house, instead of solely at timeshare exit companies. The timeshare developer created this timeshare exit scam nightmare. Timeshare companies list in their annual reports that a viable resale market is a risk to their (stock) investors. Not all exit companies are scams, but many are. An FTC report on exit and transfer scams:

https://search.justice.gov/search?query=timeshare+scam+report&op=Search&affiliate=justice

I liken million dollar deceptive timeshare producers to a baseball player like Jose Canseco, breaking the performance enhancing drug rules to earn millions, while other teammates earn far less because they did not break the rules. Honest timeshare sales agents are harmed by the actions of the dishonest too.    

According to GustonCho Associates, “Many consumers purchased timeshares in the 2000’s when the real estate market was hot.”

  • After the 2008 Real Estate And Mortgage Meltdown bankruptcies and foreclosures soared to historical highs
  • Among foreclosures were consumers who purchased timeshares and could no longer liquidate the timeshares and had to go through timeshare foreclosures
  • I get many calls by home buyers who were told by banks and mortgage lenders that they do not qualify for a FHA Loan because they have a timeshare foreclosure
  • Timeshare owners were told that there are mandatory waiting period after timeshare foreclosure to qualify for a FHA Loan
  • This is not true and unfortunately, these loan officers who are telling home buyers that there is a waiting period after timeshare foreclosure to qualify for a FHA Loan do not know what they are talking about
  • There is no waiting period to qualify for a FHA Loan with a prior timeshare foreclosure
  • Timeshares are not considered real estate loans
  • Timeshare loans are considered consumer installment loans under HUD FHA Guidelines

Read more https://gustancho.com/fha-loan-with-timeshare-foreclosure

We have also received requests for help from the millennial generation. Seniors often tell me that at their age, they don’t care what happens to their credit score, but for the younger buyer, a timeshare foreclosure at a young age can also be financially devastating.

Not one member who has contacted Inside Timeshare realized their contract was perpetual or that there was little to no secondary market.    

The Foreclosure process is gruesome. There will be threatening calls and the hit on the credit score. Timeshare today is broken. When sales agents can lie and laugh about it, at the expense of the young and the old, financially devastated by their vacation plan, something is very wrong. Too many families have been financially harmed by an industry run amuck. Rising loan loss provisions are just a number on an annual report to Wall Street and the developers. To us, they are broken families.   

Lawmakers, heavily influenced by the industry, don’t seem to care because timeshare buyers don’t typically buy a timeshare in the state they live in. Attorneys General try to protect the public, but the settlements achieved so far have been mere speed bumps in extraordinary revenue streams.  

A few of the Attorneys General investigations and settlement and lawsuits:

New York Attorney General reaches $6.5 million Manhattan Club Settlement

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

A jury awarded former Wyndham sales agent Trish Williams $20 million

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

Attorneys General on the side of timeshare owners:

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

Alongside AGs, the Consumer Financial Protection Bureau conducts an ongoing investigation of Westgate timeshare as reported by Matthew Zeitlin at BuzzFeed:

https://www.buzzfeed.com/matthewzeitlin/financial-regulators-are-looking-into-americas-largest-times?utm_term=.dwoQKVw3QQ#.doJ0ka1K00

Jefferson City, Mo. – Attorney General Chris Koster today announced that Welk Resort Sales, Inc., a California corporation that sells timeshares in Branson, has entered into an agreement to pay $18,000 in restitution to Missouri consumers who purchased timeshares from Welk.

https://themissouritimes.com/21184/release-attorney-general-koster-obtains-restitution-for-consumer-victims-of-timeshare-sales-company/

HARRISBURG – The Attorney General’s Bureau of Consumer Protection has reached a settlement with Florida – based BlueGreen Corporation that addresses complaints about the company’s alleged use of deceptive “contests,” misleading sales presentations and improper contracts in the marketing and sale of timeshare vacation packages in Pennsylvania.

http://www.pacast.com/press_releases/1272_OAG_BlueGreen_feed.pdf

Arizona AG issues an $800,000 fine and an Assurance of Discontinuance against Diamond Resorts

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

Bluegreen stock downgrade August 17, 2018

Bank of America Merrill Lynch’s Shaun Kelley downgraded Bluegreen Vacations from Buy to Underperform and decreased the price target from $26 to $19.

https://finance.yahoo.com/news/bluegreen-vacations-interrupted-sell-side-190725946.html

Self-help support groups we feel are not industry influenced:

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

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

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

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

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

Where are you?

Thank you Irene, as usual you have highlighted very well a severe problem and explained it in a very simple manner. In this Friday’s Letter from America, another new contributor Brenda Santos, highlights the “Nightmare on Timeshare Street” of her elderly parents at the hands of an unscrupulous sales agent. We think this will make your blood boil, so join us for our last Letter from America this year.