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Canarian Legal Alliance

IQueEsLaVerita

ANFI Step Up the Spin

On 8 November Inside Timeshare published an article about ANFI sending emails to Norwegian members, which included a video by a Mr Malterud, a former client of Canarian Legal Alliance. They have now been sending the same email to UK ANFI members, in an effort to stem the tide of claims in court against them. Inside Timeshare received several enquiries about this. (See previous article below).

http://insidetimeshare.com/anfi-legal-battle-hots/

In the letter, which is signed by the ANFI CEO José Luis Trujillo, it attempts to warn UK members about Canarian Legal Alliance, with a quote from Mr Malterud:

“CLA posed as a law firm.  I was naive, and believed them, but eventually learned that this was not serious.  I felt misled.  I would strongly recommend staying far, far away from CLA”.

The letter also includes the video interview with Mr Malterud and Anfi Club Norway.

In a rather desperate attempt the email was sent out late Friday afternoon, ready for the weekend, in the hope that CLA would not be able to respond until Monday. This move seems to have backfired.

Inside Timeshare approached CLA for a statement, the spokesperson responded with this statement:

“CLA was alerted to the email by clients who have claims either pending filing at court or waiting for trial dates. Thanks to quick action by CLA staff, a statement was emailed to all clients in rebuttal of the ANFI claims.”

Inside Timeshare then asked what was the response from their clients:

“Many clients replied to our statement in favourable terms, thanking us for the prompt and full explanation. They also stated that they had the utmost faith in CLA and realised that it was a move by ANFI to scare them into withdrawing their claims”.

Once again we see ANFI spreading misinformation in order to save themselves, it shows how desperate they are.

In their Statement to their clients CLA included a video of an interview with one of their lawyers, EVA GUTIÉRREZ, Lawyers Registration Number 4350, this interview was aired on National Spanish Television News broadcast by TVE. See the link below.

https://www.youtube.com/watch?v=-HthsLC83QM&authuser=0

evag
EVA GUTIÉRREZ

Eva has been registered as a lawyer with the Colegio de Abogados of Las Palmas since 2008, so is very much an experienced and genuine lawyer, contrary to the statement in the letter from ANFI. Below is a pdf of her registration on the national database of lawyers.

Censo de Letrados _ Abogacía Española

On the CLA website under lawyers, you will see the main lawyers including their ICALP Registration Number, these can be checked using the official National Lawyers Register.

http://www.abogacia.es/servicios-abogacia/censo-de-letrados/

This will put no doubt in anyone’s mind that CLA are a legitimate law firm, with many victories under their belt, including 77 Supreme Court rulings against timeshare, 32 of which are against Anfi.

Only yesterday  Wednesday 6 November they secured another victory for one of their UK clients at the High Court in Las Palmas. The judge declared the ANFI contract null and void, ordering ANFI to return £32,000, the client was also returned legal fees and legal interest.

gavela

One now has to ask the question, what are ANFI hoping to achieve by spreading these falsehoods?

Are they just destroying their own reputation?

Have they now also left themselves open to legal action on an unprecedented scale?

We leave it to you the reader to decide.

As usual time will tell, we will be keeping a close watch on any further developments regarding this issue and keep you informed.

Anfi CEO’s Letter to Members: Desperation or What!

If you have any questions regarding this or any other article, Inside Timeshare will be pleased to help.

(For those who do not know any Latin, the quote on the title picture translates as “AND THAT IS THE TRUTH?”)

letter-from-america

Friday’s Letter from America

Welcome to December’s first Friday’s Letter from America, this week Irene Parker examines Non-Disclosure Agreements in timeshare and should they be permitted. But first we have a look at what has been in the news in Europe.

Last month we ran the article on the court case involving Dominic O’Reilly and his daughter Stephanie O’Reilly of EZE Group, they both pleaded guilty to some very serious charges at Birmingham Magistrates court. Their case has been sent to the Crown Court for sentencing in January, it has now been reported that they will be back in court on 15 December. Whether they will be sentenced then we will have to wait and see, but if they are, they may be having Christmas dinner behind bars.

Yesterday we published an article with an opposing view of the Los Claveles saga, this has prompted some rather heated comments. It would seem that each side is accusing each other of telling lies, this is not the way forward, there will always be a difference of opinion, just because one person does not agree does not make it a lie!

Just having opposing views does not mean you cannot work together, it is your resort and that is what counts not the bickering or personal animosities.

 

The courts once again have been busy, with no less than three Supreme Court ruling this week.

tribunal-supremo

After publishing last Friday’s article it was announced that the Supreme Court had made another ruling against Silverpoint, the court awarded the client over £42,000, plus £3,000 which is double the deposit paid within the 14 day cooling off period. The client will also receive back their legal fees and legal interest.

On Monday 27 November, the Supreme Court again ruled against Silverpoint, declaring the contract null and void and awarding over £23,000 including the return of legal fees and interest.

On the same day they issued another sentence against Silverpoint. The contract was declared null and void with the return of more than £37,000 plus legal fees and interest.

It was the turn of the Court of First Instance in Tenerife on Tuesday 28 November to issue a sentence against Silverpoint, the judge following the Supreme Court rulings ordered the return of over £11,000 and declared the contract null and void.

On Wednesday 29 November the Tenerife Courts again found against Silverpoint with the return of £11,000 and the contracts declared null and void.

The same day from Madrid the Supreme Court announced yet another ruling against Silverpoint, contract declared null and void with the return of £7,000 plus legal fees and interest.

Other cases this week saw rulings from other courts around Spain which included the return of all payments and contracts being declared null and void against Anfi, Blue Bay and Puerto Calma

Now just to rub it in, as if Dominic and Stephanie O’Reilly havn’t got enough problems the list also included a sentence against EZE Group!

The total amount being returned to clients this week alone is a staggering 403,336.25€

All these cases have been brought on behalf of clients by Canarian Legal Alliance, with this week’s Supreme Court rulings bringing their total to 74, another record for the legal history books!

law

So on with this Friday’s letter

Timeshare Non-Disclosure Agreements

When they are fair and when they are not

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By Irene Parker

December 1, 2017

High school civics classes must be having interesting and lively class discussions about American politics today. Sexual harassment accusations have taken over the media and are raising questions about the damage caused by non-disclosure agreements (NDA). Sexual harassment settlements require the victim sign an NDA agreeing not to disclose what happened.

New Jersey lawmakers are proposing NDAs be banned in cases of sexual harassment. As NJ.Com reported, “Corporate boards of directors keep on approving settlements to cover executives who then go on to commit the same offense.”

http://www.nj.com/politics/index.ssf/2017/10/harvey_weinstein_scandal_has_nj_dems_ready_to_ban.html

Timeshare members should lobby for a similar prohibition, especially when a member receives nothing in return after surrendering timeshare vacation points that can easily cost $100,000 or more. Out of 220 timeshare complaints voiced by our readers against multiple developers, 115 allege they were sold or up-sold by deceit and bait and switch, some just days after purchasing. Members have reported on the many ways sales agents and their companies can avoid the rescission or cancellation period. Especially in these cases, an NDA seems harsh.

The most common allegations of deceit reported by our readers include:

  •  The ability to sell or rent vacation points
  •  The ability to pay maintenance fees with points
  •  The need to always buy more points in order to have adequate availability
  •  Agents from the same company accusing each other of selling the member the wrong product. The member is told to buy more points to change from one product to the next only to be told by the next agent, they still bought the wrong points! The member is required to sign an NDA even when all they did was buy more points.    

One lawyer I spoke with, who asked not to be identified, said he is shocked by the use of NDAs in timeshare. He explained that as a litigator he saw large settlements awarded without a non-disclosure, but in timeshare even members who receive nothing in return for surrendering vacation points must sign an NDA.

When Inside Timeshare publishes an article about a member’s complaint, we no longer feature the article if the resort helps the member resolve their issue. We do maintain a complete list of all member articles for regulators and law enforcement and have compiled a 90 page complaint summary. With over 200 complaints, patterns emerge. Repeated complaints against certain sales agents point to repeating offenders. Comparing notes with law firms across the country, we have learned certain timeshare sales agents are household names at their offices as well.

Inside Timeshare published Deneice’s article September 29, 2017.

lady

 Inside Timeshare has received 23 reader complaints concerning Diamond Resort’s Las Vegas sales centers. Deneice Vargas alleges she was fraudulently up-sold in Las Vegas. Eight of the members reported a positive outcome working with Diamond Resorts to resolve their complaint.  

Initially, the DRI advocacy agent Deneise worked with seemed to agree with Deniece and had asked for supporting medical documentation about her husband Louis’s diagnosis of Bell’s palsy. Relieved, Deneice submitted the information only to learn the customer service agent who had been helping her quit and the new agent seemed to dismiss Bell’s palsy as if it were a common cold. I personally felt the loss because the hospitality agent who quit called me about my complaint over two years ago. We did not always agree, but I felt she had a moral compass.   

Deneice reached out to us recently to let us know how things were going. She was shocked to receive a call from one of Diamond Resort’s advocacy hospitality agents. According to Deneice, when DRI Consumer Advocates are not advocating, they make collection calls. “They called at 6:50 AM! Isn’t there a law that says you can’t do collection calls outside of normal business hours? I suspect the advocacy department called demanding payment because I was not answering the phone from the collection agents,” said Deneice.    

If there were no loan, I’m confident DRI would allow Deneice to surrender her points for resale, but Deneice’s situation is complicated by her allegations of deceit and bait and switch and the outstanding loan. We reached out to Diamond for comment, but there was no response. Deneice’s original article:  

http://insidetimeshare.com/fridays-letter-america-21/

If Deneice’s resort does decide to help her, she will be required to sign a non-disclosure agreement, agreeing not to say anything disparaging against her resort. One benefit (for our advocacy efforts) is that Deneice will not have to sign an NDA if she forecloses. We lose a lot of advocates because of the NDA. I’ve gotten to know Deneice and feel she will be of great benefit to our team of core advocates determined to stop or at least reduce the “pitching of heat” prevalent in timeshare today, bolstered by points based programs that offer easy deception. One of our advocates is a Florida detective who worked economic crimes undercover.

As a non-lawyer, I often rely on NOLO for legal advice. An added benefit of NOLO is somehow they prevent timeshare exit scam artists from posting ads all over their articles.

https://www.nolo.com/legal-encyclopedia/nondisclosure-agreements-29630.html

When I looked up nondisclosure agreement on NOLO, the site connected me to Richard Stim. I submitted this question to Mr. Stim at http://dearrichblog.blogspot.com/

I write for Inside Timeshare. We are receiving a flood of timeshare complaints. If someone who feels they were sold by deceit and bait and switch, spending $95,000 for a timeshare, convinces the resort to take the timeshare back with nothing in return, should they have to sign an NDA? Thank you for your help.   

ballchain

What property would anyone buy, be it a boat, home or car, financing a loan at 12% to 18%, knowing the product they were buying could not be sold?  Not one of our 220 readers knew, at the time of purchase, they could not sell their timeshare. There is a limited secondary market for some timeshares. Contact a member of the Licensed Timeshare Resale Broker Association to find out how your timeshare fares on the secondary market or if you are stuck with a product you don’t want, can’t afford, and can’t sell.

http://www.licensedtimeshareresalebrokers.org/

Thank goodness for Social Media. Here are some self-help member support groups offering good advice and a shoulder to cry one when one finds themselves caught in a timeshare trap.

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

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

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

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

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

Thank you Irene and all who contribute to these articles, they are certainly bringing new information to members / owners in the world of timeshare.

Inside Timeshare once again reminds all readers to do their due diligence when deciding which companies to do business with, as always, doing your homework will prevent the loss of your hard earned cash. If you need help in checking who to trust contact Inside Timeshare and we will point you in the right direction.

Have a good relaxing weekend and join us again next week.

weekend cat

 

stop press 1

Just as we were about to publish, this came in from the Supreme Court in Madrid, another Silverpoint contract declared null and void with this particular client being awarded over £90,000 plus legal fees and interest. That is now 75, yes, 75 rulings from Spains Highest Court!

After publishing this also came in.

The High Court in Tenerife found against Silverpoint yet again. The judge has declared this contract null and void with the return of over £74,000 plus legal interest.

 

justice

Eze Group in Trouble

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

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

birmingham court

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

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

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

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

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

tribunal supremo

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

Only time will tell.

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

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

letter-from-america

Friday’s Letter from America

It’s that time of the week again, so welcome to this week’s Friday’s Letter from America, this week we publish Part II of Timeshare Debt and Hedge Funds. This article is from Justin Morgan and Michael Nuwer, with the introduction from our very own Irene Parker. But as usual a roundup from Europe.

It has been a very busy week in the courts again with many case being heard, with sentence still to be issued by the judge but there have been a few announced.

gavela

On Monday there were two announcements, the first was the judge of the Court of First Instance in Maspalomas found against Anfi, once again the contract was declared null and void, the client in this case will be returned over 12,000€ plus legal interest. The courts are certainly sticking to the letter of the law.

In the second case that was announced, the Court of First Instance in Tenerife found against Silverpoint (Resort Properties). In this case the judge found that the contract was in breach of the timeshare law 42/98 in that it exceeded the 50 years that is allowed, this should have also been explained to the customer before signing.

The judge declared the contract null and void, ordering Silverpoint to pay the client over £59,000 plus legal interest.

The following day, Tuesday, another sentence against Anfi was announced by the Judge of the Court of First Instance in Maspalomas. Another contract was declared null and void, with Anfi being ordered to return over 26,000€ plus legal interest.

Back in September Petchey Leisure (now MGM Muthu) was ordered to repay over 16,000€ and declared the contract null and void, by the High Court in Tenerife. The client in that case has now had the money transferred to their bank account.

On Thursday, there were three court sentences announced, Once again Anfi have been ordered to return over 20.000€ plus legal interest, this was by the Court of First Instance in Maspalomas. The judge also declared the contract null and void.

In Tenerife the Court of First Instance declared a Silverpoint contract null and void, ordering the return of over 30,000€ plus legal interest.

In the High Court in Tenerife, Regency Resorts was ordered to return £35,200 plus an extra £35,200 as double the deposit taken in the cooling off period, which is forbidden by law. This particular client will now be receiving £70,400 plus legal fees and legal interest. A nice Christmas present for this client!

Today as we this article was being prepared for publishing the following news was issued in a press release:

The Supreme Court in Madrid issued another damning sentence against Silverpoint, the Court ordered the return of the full purchase price plus double the deposit and all legal fees. The contract was also declared null and void. In this case the client will be receiving over £105,000.

All these cases have been brought on behalf of clients by the Arguineguin law firm Canarian Legal Alliance, who are certainly at the forefront in the field of timeshare law.

cla-brochure

Inside Timeshare is still receiving many enquiries regarding “claims” companies and “law firms” contacting owners with the promise that they have cases and can get their money back. Many of these readers don’t even own in Spain, or even upgraded in Spain since the law came into place in 1999, so how can these cases go to the Spanish Courts?

Some of these are also being told that they pay for a relinquishment, then the claim will be filed on a no win no fee basis. This can only mean one thing, an attempt to claim under Section 75 of the Credit Consumer Act 1974. Another aspect to this is the client will also be told at the meeting the only way they can do this is by purchasing another product! Sounds like the classic “bait and switch”!

There is also more news which at present we cannot publish as it has not been verified, so that is it from Europe, now on with our Letter from America.

Timeshare Debt and Hedge Funds – The Developer vs the Member

wall st

By Justin Morgan and Michael Nuwer

November 17, 2017

On Monday Inside Timeshare published an article comparing hedge fund involvement in Puerto Rico to hedge fund involvement in timeshare. Today we examine further how debt affects timeshare with help from Economics Professor Michael Nuwer and private equity investor Justin Morgan.

http://insidetimeshare.com/tuesday-slot-american-perspective-comparison/

Introduction by Irene Parker

As a Diamond Resorts member, I have access to information I would not have about other timeshare companies, so once again Diamond is used as an example with help from Michael Nuwer, also a DRI member, and Justin Morgan, a former DRI member, to explain the mechanics of timeshare inventory valuation and timeshare debt.

I asked Inside Timeshare Australian Contributor Justin Morgan how a company like Diamond can have a $2.2 billion dollar valuation when the entire inventory of points is worthless to the members, given so many complaints about the lack of a secondary market. Of course, there is value to staying at a property, but for discussion purposes, timeshares are a liability on an individual member’s net worth statement. Inside Timeshare has received 196 timeshare complaints from our readers against four major developers. The majority allege they were sold or upsold by deceit and bait and switch. I have interviewed many families devastated, sometimes just weeks after purchase.

In an article I wrote for TheStreet, I expressed concern over inventory valuation irregularities that delayed DRI’s second quarter 2016 earnings report, the last public report before being taken private. Diamond previously reported 11 quarters of consecutive robust earnings growth. After announcing the delay, just after the Apollo acquisition announcement, earnings had to be restated from 2014 going forward.

“After the correction, the change resulted in a decrease in net income of $5.6 million for 2015 and a $1.3 million decrease for the first quarter, in each case from amounts originally reported, according to the second-quarter release. Significantly, second-quarter net income decreased $10.1 million or 28.5% to $25.5 million year over year, compared with a first quarter increase of $8.4% or 32.6% to $34.4 million, prior to the restatement.”

https://www.thestreet.com/story/13702895/1/diamond-resorts-international-s-second-quarter-earnings-reversal-is-worrisome.html

Justin Morgan’s analysis

The whole industry itself uses some quite questionable inventory valuation methods that may be designed, according to some, to target more the financing arrangements that were the traditional model in the industry when GMAC and others were underwriting timeshare sales departments. This is why private hedge fund equity in the industry has somewhat caused a shift in thinking. If private equity is funding the model based upon equity vs loan models, the capital structures underneath begin to change. The same accounting reports will still be drawn upon to make sense of the numbers, but let’s not forget that inventory valuations do have a bit of leeway to move. Even financial reporting itself can diverge from standard reporting models, but it usually is flagged as a change in accounting methodology that would have otherwise tipped off Apollo.

Like Enron, it depends upon who’s looking, and who might be wanting to look away to get a deal done. Even if Apollo did know, it doesn’t mean they’d fess to the knowledge of spotting an irregularity if they believed they were able to profit in the end, and I believe that Michael Nuwer showed the sort of cap structure that Apollo introduced. It largely turned the debt into the membership, so whilst Apollo may have even noticed non-standard valuations, it might have only forced a better price to come from Diamond vs flagging the issue or walking away from the overall deal. Clearly, Apollo are their own beast in these type of private equity deals which reap profits and shift debt restructuring unwittingly into club members. This is a bigger issue. It’s like taking a loan out in someone else’s name and handing them the bill after you’ve taken what you want for the deal. Club members were only ever at Apollo-DRI’s mercy after this.

There are definitely some important and significant value-implied shifts from these numbers since the street uses earnings to make their valuations, but the valuation of inventory is an area that is somewhat suitable itself. The industry bodies know how to make it work and actually fought to use non-standard inventory models. But I’ve not gauged for differences between the pre-order hedge fund industry and the one we’re seeing rise out of the seas today.

I have looked with horror upon the entry of these private hedge funds because I know that they have little interest in the product itself. They are only in it to devour the membership of as much as they can get, and given the legal models, that could be the scariest evolution to date. At least cryptocurrencies attempt to establish some monetary supply rules, but timeshare clubs know that they can just keep raising budgets legally to cover their required rates of returns.

In an industry that generally looks for 30% per annum returns as a rule of thumb, that’s going to cause some high maintenance fee jokes in the future. But I remember the old DRI hiking maintenance close to 25% circa 2007 and then again in 2009. They first blamed a strong economy, whilst the second blamed the weak economy. More like a satyr blowing hot and cold in the one breath! But the disturbing thing to me is how Apollo financed this whole arrangement. They shifted the debt onto the members. They made their money from the start…The rest is just cream…The debt which now pays the Apollonian entities is the debt Apollo created and lumped into the membership at the financing stage.

We must be clear. They created the debt specifically to land it on membership; so really, it is as if the DRI members paid a good chunk of the deal. If the Attorneys General don’t see this, then they’ll miss what chicanery has been done here.

Michael Nuwer

Diamond reports show increasing levels of bad debt accompanied by decreasing membership since the peak in 2013.

chart1

Membership is down 9% since 2013

chart2

One thing that is not clear to me is the economic value of points. It often appears that a developer sells the points (say 10,000 points) for, say, $20,000. But, the next day, if I (the owner) try to sell those points in the secondary market, they are worth, maybe, $1,000. (If Bluegreen points; DRI points are worth $0.) The economist in me thinks the developer originally sold me points for $1,000 plus a club membership for the remaining $19,000. Thus, if my points are foreclosed and resold for the full $20,000, only $1,000 is the value of the points.

So, the question here is: what is the developer selling. Is the sale just vacation points or is the sale a bundle that includes points plus other stuff? I’ve read my DRI contract many times and still can’t tell what it specifically covers.

So what happens when someone buys timeshare points?

Let’s look at this example:

Say Diamond makes a sale for $30,000. The buyer might make a down payment of 20% or $6,000. The remaining $24,000 is a loan. Diamond now has a short term financing problem. They have $6,000 in cash and $24,000 in a non-liquid asset. But Diamond has immediate operating costs. A bit more than $15,000 from the sale is needed for advertising, marketing, and commission expenses. The carrying cost of the inventory must also be paid. Additionally, Diamond faces G&A costs (general and administrative) which need to be paid. All of these are current expenses, but Diamond only has the cash down-payments to cover them.

To pay current expenses, Diamond borrows money from a bank (the jargon is a “warehouse facility”). This facility is a credit line agreement, and, just like my credit card, Diamond’s credit line has a limit. Before Apollo, Diamond’s credit line was $100 million with Capital One.

In short: Diamond must borrow money from a bank to cover the current year’s expenses while it waits 7-10 years to get re-paid on the outstanding loans made to members.

Securitization of the outstanding loans is a way to oil, and thereby speed-up, the lending machine. Once Diamond reaches its $100 million credit limit, it will not be able to offer more loans for the purchase of points. Thus, to overcome this limit, the company bundles outstanding loans into a trust fund and sells shares in that fund as an Asset-Backed Security. The proceeds from selling these shares are used to pay down the credit line and Diamond’s perpetual loan machine continues.

Irene asked how Apollo Global Management will fare in their purchase of DRI. Will the restatement of inventory valuation have an impact?

DRI EBITDA in 2015 was $385 million and thus the valuation multiple ($2200/385) is a mere 5.7. Apollo got the company for a steal. If they can spruce it up and get 10x, the valuation will be $3.8 billion. There’s Apollo’s 30% profit.

trust earned

Thank you to Michael Nuwer and Justin Morgan for their analysis. I have nothing against private equity, but extraordinary investment returns at the expense of timeshare members or Puerto Ricans is not acceptable if so many complaint allegations are true. In addition to 192 Inside Timeshare readers who are timeshare members, I have interviewed ten current and former timeshare sales agents that all confirm predatory sales practices are widespread in this industry. There have been several recent investigations and settlements by Attorneys General including New York, Wisconsin, Missouri, Arizona, Tennessee and Colorado as well as lawsuits too numerous to mention. It is our hope developers will confront the problem and work with member complaints to improve the quality of timeshare sales today rather than continue to deny such practices exists. Contact Inside Timeshare or an Advocacy Facebook if you have timeshare concerns.   

Timeshare self-help Facebook groups

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

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

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

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

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

Thank you to Justin and Michael, also to Irene for her introduction. This week Irene has been very busy dealing with the many enquiries we have received from US owners / members. Within an hour of publishing Tuesdays article, we received 3 pleas of help, these are sent to Irene who then makes contact with the relevant advice and which of our advocacy team can help. Keep up the great work US Team.

If you need any information or help with any timeshare matter and don’t know where to turn, Inside Timeshare is here to help.

Also remember to do your homework before engaging with any company that either contacts you or you find in an advert. This last one rings very true for one UK reader, She found an advert in the Royal British Legion Magazine for a company that said it could help with a claim. Being in the British legion magazine she believed it would be genuine, well we all would! Unfortunately, adverts are not checked for authenticity, they are sold by a marketing company to pay the cost of publication, the same is also true for any newspaper or magazine. So the it proves that you need to do your homework!

On that note, Friday is here, the weekend is once again upon us, so have a great weekend and we will be back on Monday.

friday dog

 

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

truth 1

Anfi: The Legal Battle hots up!

Just recently Inside Timeshare was sent an email from a reader who is an Anfi member, it was regarding a video interview posted by a Norwegian Anfi member. In the video he berates the Arguineguin law firm Canarian Legal Alliance, who we must remember have been instrumental in having the timeshare laws in Spain clarified through the many Supreme Court rulings they have achieved over the past two years.

It turns out that this member had sought legal advice from Canarian Legal Alliance, with the view of regaining his purchase price and having his contract declared null and void. But for some reason he decided not to go ahead.

Anfi have also employed a Public Relations company, Geelmuyden Kiese AS, this company has been deemed the task of putting a “spin” on the problems that Anfi are having with all the lawsuits and adverse publicity. It was this company which wrote the letter to Norwegian members on behalf of Anfi, it was signed by the CEO Jose Luis Trujillo who then sent the letter to members with quotes from Mr Aksel Malterud along with the video. Mr Malterud in one quote goes on to say that “CLA pretends to be a law firm”, well I just wonder what the registered lawyers of CLA think about that one?

This letter is another step in the continuing battle Anfi are waging against CLA, still they deny any wrongdoing or that they have lost any cases. The ones they have mentioned losing, they claim the judges have got the law wrong.

lies

It must also be asked why has this PR firm taken on this case, after all have the Scandinavian press not run many stories on these cases, including the now famous case of Mrs Tove Grimsbo, the very first Supreme Court ruling?

Could it be they have not done their homework, and believe whatever they are told in order to get the business from a client who is clearly in the wrong?

We leave you to decide the answer to that question. After all, we have all come across this type of “spin” before, it follows the old saying “keep telling the lie long enough then everyone will believe it is the truth”.

From information received, these are the facts which it would appear the PR company Geelmuyden Kiese do not know:

Mr Malterud still owes for services and legal work done up to this point.

He has by all accounts never paid, which leaves CLA no other option than to take out legal proceedings for the outstanding legal fees. For whatever reason he decided not to take the case any further his subsequent actions leave a lot to be desired, CLA have evidence written by him claiming the underhand way Anfi was sold to him, the fact he was sold a contract that the courts have deemed illegal. Had he known this at the time, along with the fact that what was sold to him was worth nothing, he wouldn’t of signed.

Yet now he appears to be on the side of Anfi, so it does beg the question why?

What incentives has he been offered?

Anfi after all, are losing daily in the courts, only just recently 25/10/17 they had to payout a Norwegian client 136,000€ which was 106,000€ more than he had originally paid. Inside Timeshare has published many articles regarding these court cases, all have been verified by the courts and are genuine.

These figures also have been verified:

  • 32 First instance rulings against Anfi
  • 41 High Court rulings against Anfi
  • 32 Supreme Court rulings against Anfi
  • 1,210,169.11€ Pay-outs from Anfi to former Anfi timeshare owners
  • 5,516,694.81€-  already instructed by the courts to be returned by Anfi
  • 61,646,867.62€ Total claim amounts against Anfi

It was also announced last week that 3 pretrials were held at the Court of San Bartolomé de Tirajana, the judge ruled that there was no need to take them to full trial, his reason was the contracts were in breach of all the rulings made by the Supreme Court. The judge then announced he would deliver the sentence himself in due course.

With information such as this being made public, it really is not surprising that Anfi will do everything in its power to discredit a very successful law firm. Inside Timeshare say to all our readers, before you decide what the truth is, just remember where it comes from. If you want to believe Anfi, that is up to you, but remember what you were told when purchasing, all the promises that never came to fruition.

We have also published some of the history of the Anfi Group and the legal battles over the years, especially the most recent events surrounding the debacle of the Tauro Beach Project, which is currently under investigation by the authorities. The former head of the Coastal Authority is the first to be charged for forging documents and malpractice in public office. We would not be surprised to see more charges being filed with the courts over what has become a nightmare for the local residents.

We also published a similar story back in June, again it was a letter to members from the CEO Jose Luis Trujillo (see link below). For more articles on the subject of Anfi over the years including the story of the Tauro Beach Project just enter Anfi in the search box.

http://insidetimeshare.com/anfi-ceos-letter-members-desperation/

lie2

letter from america

Friday’s Letter from America

Welcome once again to Friday’s Letter from America, the article we had planned for today by Mike Finn, has been postponed until Tuesday, the reason, some very important breaking news from the US. Inside Timeshare received the press release yesterday 26 October at 5.53pm, It was then sent to Irene Parker our US branch who prepared it for publication today.

As usual we start with Europe, Inside Timeshare has again been receiving many comments from readers regarding the Mark Rowe enterprise ABC Lawyers, all have been the same.

The timeshare owner has attended a meeting at one of their offices, enticed with the prospect of ending their timeshare and claiming compensation. Sounds good, but then comes the crunch, the “salesperson” starts to pitch the Rowe product “Jive Hippo”. Does this sound familiar. Well it should, after all sellmytimeshare.tv (another Rowe company) enticed people to their meetings with the promise of selling their timeshare, but then were pitched into the “Monster Credits” product.

It also appears that the “Jive Hippo” product is required in order to “Relinquish” then “claim compensation”. Once the contracts are signed, the client is also told there is no “cooling off period” as it does not come under timeshare regulations, there is no right to cancel and the full cost must be paid.

On Thursday we published the breaking news on a Norwegian client of Canarian Legal Alliance receiving a massive payout, involving Anfi, since then there has been more news coming in.

At the High Court in Tenerife, the judge ordered that Regency Resorts returns over £13,000 plus legal interest to another client. The contract was also declared null and void.

The same court in Tenerife has also awarded a client over £53,000 plus legal interest against Silverpoint, with again the contract declared null & void.

In one of the lower courts in Tenerife, the Court of First Instance number 5, declared another Silverpoint contract null & void, as it did not conform to the law which requires specific information to be included. In this case it did not contain information regarding a specific date or apartment. The client will be receiving over £44,000 plus legal interest and the return of legal fees.

So it has been all go in the courts on Tenerife, now on with our Letter from America.

Liberté

Breaking News from America!

Finally a Timeshare Exit Strategy with Promise!

October 27

Introduction by Irene Parker

Anything to help beleaguered timeshare members who no longer want or need their timeshare, spells relief for perpetual timeshare members.

With the launch of TARS TIMESHARE ADVISORY AND RESOLUTION SERVICES LLC new “limited term deeded” program, consumers enjoy all the “pros” of traditional timeshare, and none of the “cons”, plus even more benefits, according to TARS President and General Counsel, Martin M. Kandel. “Our program allows legacy owners to safely trade-in their existing traditional timeshare and purchase a limited 5 year term timeshare at their Resort”, Kandel said.

I spoke with TARS Chairman Dennis DiTinno. “Our program is geared toward smaller, deeded fixed week owners, but we hope the brand name resorts will take note and will consider similar exit plans that do not place undue burden on their members or the HOAs.”

Timeshare developers and Attorneys General have focused on shutting down fraudulent resale, transfer and listing scams, rather than attacking the root of the problem. A reasonable exit plan nullifies the ability for such entities to prosper. This multi-page single-spaced Department of Justice reports illustrates the depth of the problem.

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

“Not only can a five year exit plan such as our put such unscrupulous entities out of business, it will ease the burden of debt collection for HOAs,” Mr. DiTinno further explained. “When we presented our exit program at the TBMA Timeshare Board Member Association in Las Vegas last weekend, we were pleased that those in attendance listened and appeared to like what they heard,” he added.

Inside Timeshare has received complaints from 176 readers who describe sometimes catastrophic financial distress unable to be released from their timeshare contract.   

hope1

FOR IMMEDIATE RELEASE

TIMESHARE ADVISORY AND RESOLUTION SERVICES LLC EXPANDS SERVICES FOR LEGACY RESORTS AND OWNERS

Timeshare Advisory and Resolution Services LLC (“TARS”) a company dedicated to promoting the interests and rights of long-time timeshare owners, homeowner associations, and consumers contemplating the purchase of timeshare, has announced the launch of unique programs designed to ease the transition of long time owners, out of their “perpetual” timeshare and also attract new consumers, seeking the benefits of timeshare ownership without the burden of increasing maintenance fees or the hassles of resale.

The program also intends to assist legacy resorts in planning for either continued use as a timeshare property or for an alternative use pursuant to an organized repurposing plan.  In addition, TARS announced the acquisition of a significant interest in the company by Liberté Management Group of the Pinellas Islands, Inc. TARS will be operated as a subsidiary of Liberté and will be jointly headquartered in Treasure Island, Florida.

With the launch of TARS new “limited term/unlimited fun” program, consumers enjoy all the “pros” of traditional timeshare, and none of the “cons”, according to TARS President and General Counsel, Martin M. Kandel. “Our program allows legacy owners to safely trade-in their existing traditional timeshare and purchase a limited 5-year term deeded timeshare at their resort”, Kandel said.  “Legacy owners will continue to be able to enjoy their resort and unit every year of the term, or rent or exchange it as they do in a traditional timeshare. However, they will no longer be billed any maintenance fees during the entire term, which terminates by going back to the resort with no further obligation. There are no worries about resales or fraudulent transfer and exit companies, and the HOA’s have a systematic and controllable, and scalable means to make certain all of their intervals are paying intervals”, Kandel concluded.

Dennis F. DiTinno, CEO and President of the Liberte’ Management Group of Companies, will serve as Chairman of TARS and oversee the close interaction between TARS and Liberte’. “As a manager of legacy resorts, I have been committed to working toward a robust resale market to benefit older resorts and their owners, particularly those resorts fighting to remain financially stable and relevant. TARS will help these sold-out resorts find new owners to enjoy their products and services. I am excited to join with Marty and devising innovative ways to fight for and protect the resort associations and owners upon whom the timeshare industry was originally built”, DiTinno said. “I sincerely believe that what we are doing is to provide ‘out of box solutions… in a box’”, DiTinno added.

In conjunction with select strategic partners, TARS will provide an á la carte menu of products and enhanced services designed exclusively for the legacy market segment. TARS will target self-managed resorts, management companies (in those instances where such a company has been previously retained by the HOA), and individuals for whom timeshare has become a burden.

TARS business objective will be to provide new ways to address old problems by enhancing TARS’ original consumer-centric mission (www.tarserv.com) to provide legacy resorts with a means to maintain their resorts for a decade or more in order to plan for robust continuation or an orderly repurposing of the resort and its timeshare program.  Along the way, TARS may more readily assist individual legacy timeshare owners in parting with their timeshare as a part of the overall HOA program.

DiTinno established Liberté Management and related entities in 1987 to address a burgeoning demand for professional, turnkey resort property management along the Florida Gulf Coast, Liberté Management provides a comprehensive array of personalized services for a wide variety of vacation properties. Services include rentals, sales and resale services for timeshares, resort condominiums and hotels.

Clients range from large developers and community associations to individual owners who expect an unparalleled level of quality and commitment. DiTinno served with distinction in Viet Nam as a member of the United States Marine Corps.

Kandel attended University of Baltimore School of Law and Rutgers University and is a member of the State Bar of Maryland. He is a former Maryland Assistant Attorney General and Counsel to that state’s Real Estate Commission and Commissioner of Consumer Credit, and is the primary author of the first Maryland Timeshare Act. Since 1984, Kandel has served as counsel to timeshare developers, lenders, builders, and a variety of other industry related clients, as well as individual consumers and consumer groups.  He has also operated timeshare development and sales and marketing entities in the US, Australia, and Europe, and has served on the Board of Directors of ARDA and ATHOC.

calm

It’s nice to be on the same side of the fence for once! Imagine a world with no Timeshare Wars with members pitted against developers like North Korea and America. There’s no reason we can’t all get along by releasing timeshare members who feel like they are being held hostage by their vacation plan. Charles Thomas and I would like nothing better than to publish articles about people and places doing things right. Thank you to Marty and Dennis for their olive branch, offering a bridge between greed and need.

Inside Timeshare will publish a monthly resale recycle report to examine how this revolutionary plan is working out. We hope to interview timeshare owners and HOAs taking advantage of this opportunity. I’ll call my favorite timeshare people, Port Elsewhere in the Missouri Ozarks and Maui Hill at Maui Lea to hear what they think.       

So that’s it for this week, two breaking news stories from both sides of the Great Lake, our apologies to Mike Finn for not publishing his article, I’m sure he will understand. We will however be publishing that on Tuesday.

Once again, if you need any information on any company that has contacted you or you are considering dealing with, but are not sure where to look, Inside Timeshare will point you in the right direction.

It’s Friday, the weekend is once again upon us, have a good one and we will be back on Monday.

friday dog

 

breaking news

Happy Days! Norwegian Client Receives Massive Payout.

Inside Timeshare has just received this latest news, the lawyers from Canarian Legal Alliance are celebrating today, along with their Norwegian client. No doubt with a few bottles of champagne.

champagne

Their Norwegian client’s original claim against Anfi was for 30,000€, but the lawyers asked the court for 108,000€ which included double the deposits including the balance, which was paid within 90 days and maintenance fees. This 90 day ruling was made by the Supreme Court for infringements where the client did not receive adequate information required by law.

Canarian Legal Alliance informed Inside Timeshare that they originally lost the case at the Court of First Instance, located in Maspalomas. then took the case to the High Court in Las Palmas on appeal. This court again invoked the Supreme Court rulings and found in favour of the client.

Court Masp
Court of First Instance Maspalomas

Anfi, then made moves to appeal that decision at the Supreme Court in Madrid, but this was rejected by Spain’s Highest Court. The court’s reasons for rejecting the appeal was very simple, they had already ruled on 66 previous occasions and there was no reason to accept this appeal as it fell within the scope of those previous decisions. In other words they believed it was a frivolous appeal.

The case was then returned to the High Court who also added a fine on top of the original award, making the amount a whopping 136,000€ which has already been paid into the relevant bank account and is about to be returned to this very happy Norwegian client. He is also now timeshare free as the contract was declared null and void.

So there it is, in black and white and direct from the courts, timeshare companies especially Anfi cannot deny they are losing cases or having to payout. Almost on a daily basis the courts are finding against them, if we were to publish every time a case is won, there would be no room for other news. For many timeshare owners who have cases pending or are just embarking on the road to litigation, this will be welcome news.

denial

Inside Timeshare congratulates the client and all the legal team at Canarian Legal Alliance on this result. We know they work hard for their clients as is shown in the many reports we receive and publish.

 

questions

The Tuesday Slot: Arbitration

Today we feature excerpts from  Chris Parker, a writer from City Pages and his article called The Plot to Kill Consumer Protection

Continuing on yesterdays topic of “Bogus” claims companies and “Fake” law firms, Mindtimeshare  has also highlighted another company, European Liquidations.

Again this company uses the @consultants.com email address, which as we have said previously it is just a free email provider just like gmail and yahoo.

europeanliquidationsltd@consultant.com

The telephone numbers provided are:

0203 384 3999 and Fax – 0872 751 6998

Unfortunately, Mindtimeshare has very little information and we have been unable trace any company with this name at company house. But it is important to inform readers of all companies that crop up along with telephone numbers and their email address, after all to be forewarned is to be forearmed!

As this article was being prepared Canarian Legal Alliance issued another court ruling, this was from the Court of First Instance in Maspalomas against Palm Oasis (Tasolan). In this judgement the court ordered the return of over 15,000€ plus all maintenance fees and legal interest, the contract was also declared null and void.

The court ruled that the contract infringed Law 42/98 in that it was for a period exceeding 50 years, Contract to be valid must be for a period of between 3 and 50 years, this should also be specified in the contract and explained to the client before the contract is signed. It is clear the Supreme Court rulings are having a severe impact on all contracts that do not follow the stipulated laws.

Now on with today’s article.

Part I – Questions a Timeshare Buyer Never Asks

Does this timeshare contract contain an arbitration clause?

arbitration

By Irene Parker

Part II – Class Action Lawsuits – Misunderstood by Timeshare Members

Friday’s Letter from America

Tuesday October 24

Excerpts from “The Plot to Kill Consumer Protection”

By Chris Parker

“Should a dispute arise, arbitration forces consumers out of the court system and into arbitration where appeals aren’t allowed, corporations historically wield a huge advantage—when not outright rigging the system—and details of misconduct are kept private,” writes Chris Parker, a reporter for City Pages

http://www.citypages.com/news/the-plot-to-kill-consumer-protection/451334393

“The right to have your dispute resolved before a jury of your peers is as American as it gets; it’s a fundamental core American democratic principle,” says Minnesota Attorney General Lori Swanson. “To think that millions upon millions of consumers are forfeiting their fundamental right to have their day in court because of fine print in a contract….” “Though arbitration may sound preferable to the expense and anguish of court, it hands a major advantage to companies. The costs savings aren’t much: Arbitrators usually charge $300-$400 per hour minimum, and some bill into the thousands of dollars. But arbitration clauses typically bar the consumer from joining class-action suits. The strategy has emboldened fraud on a massive scale.” “In July, the Consumer Financial Protection Bureau ruled that arbitration clauses can’t bar consumers from joining class-action suits. The GOP Congress intends to repeal the rule.”

Sen. Lindsey Graham (R-South Carolina) told the Wall Street Journal that such clauses are “a windfall for the companies, in terms of how you settle their cheating.”

“Even when someone does challenge them, arbitration rulings are usually private, with no appeals and little documentation. Like a tree falling in a vast forest, Wells Fargo’s customers didn’t hear the millions of other victims, and the press remained none the wiser.”

“With consumer protection increasingly whittled away by keen lobbyists and cunning corporate lawyers, the idea was to build an agency whose sole mission was protecting consumers.”

cfpb1

“During its brief life, the bureau has established itself as the only Washington agency more responsive to consumers than to lobbyists. Since 2011, it’s handled 1.2 million complaints, returning over $12 billion to consumers.”

The CFPB and Timeshares

By Irene Parker

The Consumer Finance Protection Bureau has also been the first line of defense for timeshare buyers alleging they were sold or up-sold by deceit and bait and switch. Given the staggering number of reports of deceit and bait and switch on the front end of the timeshare sale, if the CFPB is regulated out of existence, widely predicted, many timeshare members feel the only court that will be left available to them is the court of public opinion, warning unsuspecting consumers as to the minefield of ways the evolution of right to use timeshare points has opened the doors for unscrupulous timeshare sales.

Our standard disclosure is that not all timeshare sales agents are deceptive and not all timeshare companies are predatory.

http://insidetimeshare.com/lesson-timeshare-companies/

I asked ever assessable timeshare attorney Mike Finn of the Finn Law Group which timeshare developers have an arbitration clause. Diamond Resorts is the only major developer that I’m aware of that has the arbitration clause,” explains Mike. I spoke with other attorneys who say the same.

Banks and other lenders can pick arbitrators. As Minnesota Attorney General Lori Swanson expressed –

shark

“We heard from arbitrators that were blackballed and essentially told, ‘You’re not going to be an arbitrator anymore because you’re ruling for the consumer,’” she says. “That’s one of the problems with arbitration. The court system is paid by the taxpayers. Judges are neutral and their funding comes from the public.” City Pages “The Plot to Kill Consumer Protection”

A common comment on complaint sites and from 170 Inside Timeshare readers reaching out to us for assistance is, “Let’s get a class action going!?” Timeshare members typically confuse the term and substance of a class action. We’re all used to class action ads on television say, for example, a medical device failure. The difference with timeshare is that damages are not uniform, which is necessary for a class action. Some lawyers may call a lawsuit a class action on behalf of only one or two plaintiff class representatives but they are more like individual lawsuits. Real Class Actions involve hundreds or thousands of plaintiffs. More later,

Part II – Class Action Lawsuits – Misunderstood by Timeshare Members

By Mike Finn of the Finn Law Group this Friday’s Letter from America

Why will timeshare developers not acknowledge the flawed business model?

Out of 170 complaints received, 155 of our readers allege they were sold a timeshare by deceit and bait and switch. The contract is perpetual, accompanied by rising maintenance fees. With some of the more gestapo orientated companies, the member cannot sell or give back their timeshare. The problem is magnified when the buyers succumbed to high interest rate loans and higher interest rate credit cards.

We believe Social Media and media outreach is the tortoise chasing the hare. Timeshare default rates are rising and original buyers (like me) are not getting any younger. Inside Timeshare continues to be there for members and advocacy Facebook pages and websites are on the rise – helping members through the 3Rs or F of Timeshare – resolution, when possibly the member just did not understand how to use the program, refund, relinquishment or foreclosure. In America, there is no debtors’ prison, except in the case of refusing to pay child support.

We ask timeshare developers – What would happen to the primary residential home market if home buyers could not sell their property?

think about

Self-help Facebooks

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

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

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

Thank you Irene and Chris, also a big thank you to Tammy for proof reading and editing these articles.

As always if you have any comments or would like to share your experiences, Inside Timeshare welcomes them, contact us through our contact page.

If you need help or advice on any timeshare matter do get in touch and we will point you in the right direction. Remember before engaging with any company do your due diligence and your homework, it will save you a lot of bother in the end.

diligence

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, it is not the article we originally planned as other events have taken over.

Firstly since Irene sent this article we have received some very sad news, Irene’s brother has sadly passed away. Inside Timeshare, along with all our readers and contributors, the staff at Canarian Legal Alliance send our deepest sympathies and condolences to Irene and all her family. Our thoughts are with you.

condolences

As we said last month, the time has come when all the new companies and some of the older ones will start to contact timeshare owners. This is usually the time it starts as the annual maintenance bills are starting to come through the post.

Inside Timeshare has been receiving many requests for information on these, most are for so called claims. It is surprising how many owners are being told that they have a claim for miss-selling, even though they purchased in places like Mexico.

Appointments at various offices around the UK are being arranged, but beware, these “claims” will result in either the purchase of another product, the offer of relinquishment and then a claim on a no win no fee basis. This will cost thousands of pounds, the claim will more than likely be under Section 75 of the Credit Consumer Act 1974. If the purchase was more than 6 years ago you cannot claim. If you have used your timeshare there is no claim, even if you have never used it you will not have a claim as it was available.

Section 75 only cover the following:

  1. You have not received the goods or services paid for
  2. The company goes into liquidation
  3. The goods are faulty
  4. The company turns out to be fraudulent

section 75At present the only successful claims have been through the Spanish Courts, where the timeshare laws are very strong. So unless you purchased in Spain since 1999, you will not have any basis for a claim and this will have to go through court.

So beware of these companies that say you have a valid claim, check and double check the facts.

On the subject of court cases, the following were announced during the course of this week.

The Court of First Instance Number 4 in Tenerife has found against EZE Group, at present we do not know what the infractions were, no doubt those will be released soon. But the court has declared the client’s contract null and void with the return of over £52,000 plus legal interest.

In another case on Gran Canaria, the High Court has found against Puerto Calma Marketing SL and Vista Amadores SL, which are all part of Holiday Club. In this case the Norwegian clients will receive over 57,000€ plus legal interest, they also have had their contract declared null and void. (The full sentences can be read in the attached PDF)

HC N2 PUERTO CALMA, sentence

These two case were brought on behalf of the clients by non other than the lawyers of Canarian Legal Alliance.

So now on with our shorter article from Irene.

Rather than rush through an article for our regular Friday Letter from America, I would like to reach out to all Inside Timeshare readers who have reached out to us burdened with timeshare loans, credit cards and maintenance fees as a result of medical and financial hardship.

Charles Thomas was not able to complete his trip to Orlando due to problems with Spain’s electronic VISA service. Little did I think the room we had booked for Charles at Diamond Resort’s Mystic Dunes would become part of a Hospice end of life plan for an immediate family member.

Life tends to throw us a few curve balls. My brother entered Hospice near his 86th birthday this month near Orlando. We were able to provide my other brother and his wife Charles’ room as my brother and I kept nightshift watch over our older brother at Good Shepherd Hospice.

The experience led me to think about all the timeshare members who have contacted me under similar circumstances burdened by cancer, a diagnosis of dementia, Bell’s palsy, concussion, loss of a spouse or loss of job or divorce leading to financial hardship. I thought about how much more difficult this family crisis would be if I had a timeshare debt collector calling on top of all this. The majority of readers allege they were deceived into buying points or more points told this would alleviate timeshare expense because of maintenance fee relief programs or selling points programs that do not exist. It is my deepest desire timeshare companies will look upon the financial devastation the lack of a secondary market and the actions of unscrupulous sales agents can cause.

The industry reaction is often to behead the messengers. All of our readers who have followed us and submitted articles as a Contributor are messengers. There has been a glimmer of regulatory action and Social Media no longer keeps victims isolated and silenced. In an earlier article, I reviewed Jay Baer’s book Hug Your Haters describing how Social Media is changing the face of Customer Service. Mr. Baer is scheduled to be keynote speaker at the upcoming Interval International Shared Ownership Conference attended by developers and private equity firms. It’s not your grandma’s timeshare anymore. Timeshare is big business and, in my opinion, for some companies it is motivated by greed. Deceit is also so ingrained it is accepted and encouraged top down. No one disputes there are honest sales agents who sell the product without misrepresentations, but with rising default rates, there is another reason for developers to listen to Mr. Baer because as he warns, “Haters are not your problem….Ignoring them is.”

jay baer
Jay Baer

As always, thank you Charles Thomas for being our voice for members who have been voiceless for too long.

http://insidetimeshare.com/hug-haters-part-ii-customer-service-message/

Thank you Irene, our appreciation for sending this article through under the circumstances, we all wish you and your family well.

Now to end this week, remember to check any company that you are dealing with, if you are not sure how to do this contact Inside Timeshare and we will point you in the right direction.

Have a good weekend.

weekend cat