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CEO David Palmer

Friday’s Letter From America

It’s Friday again, this week’s “Friday Letter from America” is a little light hearted from our usual fare, it may just be that our roving reporter Irene is on holiday (sorry vacation for you across the pond).

Irene is staying at Los Abrigados, this is not to be confused with the “fake” law firm that we have been reporting about “Litigious Abogados”, or as one of our friends Naty, calls them “Avocados”.

Avocados
These are Avocados
abogados
These are Abogados

Well, on that subject, they have been very busy again, contacting owners in the UK with the wonderful news that their timeshare resort is in court at the end of this month. Not bad considering the client hasn’t even instigated any legal action or even Knew they had a claim!

This particular reader also had a very lucky escape, he felt that he could not have a claim against his timeshare resort as he purchased in England and not Spain. He then searched the web and found Inside Timeshare, with all the articles and warnings we have published about this “SCAM”, he contacted us for advise.

We confirmed that he could not make a claim in Spain as it did not come under Spanish law, he also purchased before 1999 and has never made any upgrades. It just makes you wonder how many have actually paid this lot, as the cases we have reported on are only the tip of the proverbial iceberg.

On the news about the demise of Harry Taylor and TATOC, another reader sent us this response:

“So it`s goodbye from them (Silverpoints) and goodbye from them/him, (the Harry Taylor dictatorship known as TATOC.) The other directors seizing the opportunity to do like Emily Collins and Christine Roberts and clamber into the lifeboats. Unfortunately the directorship indemnity insurance makes them all jointly and severally responsible if any illegal activities have taken place and because they did not insist on correct and acceptable company governance and transparency they must all now be very worried as to their positions re the responsibilities. They had to see that the company was being run in a professional manner. They were all made aware of this but chose to ignore the warnings”.

“It is understood that Harry Taylor will now be pursued through the courts personally for trying to bring another business into disrepute”.

“As predicted on here years ago and before this forum was taken over by its present admin. The house of cards that is timeshare is beginning to crumble because of its greed and shortsightedness in refusing to reform having persuaded the EU Commission to allow them to police themselves”.

So that really does say it all, one opinion shared by many. Now on with this Friday’s letter.

To Diamond CEO Michael Flaskey from Don and Irene

Please fix your Pool Table!

A Sedona Arizona Los Abrigados Resort Review by Irene Parker

pool
Could this be Irene?

Cinco de Mayo 2017

My husband Don and I are staying at Diamond’s Los Abrigados property in Sedona for two weeks. Having researched Diamond’s executive compensation, I learned that former CEO David Palmer earned $25 million in two years and former CEO Stephen Cloobeck was allowed 50 hours annual use on the most expensive aircraft in the Diamond fleet prior to the Apollo acquisition (for non-business purposes). I would think a little money could be allocated to fixing the pool table at your Spoke and Wheel tavern and eatery.

My husband and I have been shooting pool at Los Abrigados since 2008. Having met in a pool hall 35 years ago, pool is important to us. And it’s not just important to us. There are six to twelve pool enthusiasts who sadly told me they have been trying to convince Diamond to fix the pool table for two years.

Now a pool table may not sound that important to you Mr. Flaskey, but when you met your husband in a pool hall 35 years ago, playing pool is important. As we really have nowhere to shoot pool where we live, our pool shooting vacation at Los Abrigados is what our vacation is all about. As a matter of fact, the pool tables at Los Abrigados had a lot to do with us buying a timeshare from ILX prior to Diamond’s acquisition.

In your recent interview on FOX Business with Maria Bartiromo, you said you leave your card at the front desk, which leads us to believe you actually care and intervene on behalf of owners who face timeshare challenges after purchasing at Diamond Resorts.

On the positive side, we received good value for our points for our stay here, our unit is very nice, and the staff, especially Daniela serving patrons in the pool table area, is exemplary.

But back to the pool table

The pockets are shot, the rails are shot and they keep moving the table which throws off the balance. A pool table has a slate bottom so you have to be careful how you move it.

I was afraid to play the locals, as they brought their own sticks, because Diamond only provides two sticks. Two sticks!

My new pool playing friends and I eagerly await your response. You never know what may be important to a guest. In our case, the pool table says it all.

seal

Thank you for listening,

Don and Irene

There we have it, another week over in this murky but sometimes humorous world of timeshare, one just never knows what is going to happen next. Maybe the rogue developers and resorts might just get the hint, if they don’t change how they operate, they won’t have a business to operate!

Inside Timeshare again thanks all those who contribute to the articles and especially those who send us the information about some of the dubious firms that are out there. Without you, others will fall into their traps.

Have a good weekend and we hope the weather is great to get out and have BBQ.

BBQ chef

$1billion Law Suit against Diamond Resorts International!

Spain has been at the forefront of enforcing timeshare laws in Europe, so far the Supreme Court has made 42 judgements in favour of the consumer, these are now part of law and all courts must abide by them.

It has cost the industry millions of euros in payouts with many more in the pipeline. All this because for years they have ignored the laws put into place in 1999, which are there to protect the consumer.

But this now pales into insignificance with the latest lawsuit in America.

In a class action filed in Las Vegas, Diamond are being sued for $1billion. Yes, that is correct a whopping $1billion!

Irene Parker has sent in this report on what this lawsuit is all about.  According to this document a trial by jury has been demanded, along with the law firm leading the action who have a very good reputation, it has the hallmarks of a long and fierce battle.

According to our sources this lawsuit is not just for those in the US, but it could possibly be left open for Europeans who purchased in the US to join the action, especially any purchaser who was 60 years or over when signing. We are waiting confirmation of this as there may just be statute of limitations in place.

But this could be good news for many.

Billion Dollar Lawsuit Filed against Diamond Resorts International

Law Firm: Albright Stoddard Warnick & Albright

Case No. 2:17-CV-00248

Filed in Las Vegas Federal District Court

By Irene Parker:  February 1, 2017

Lawsuit

 The law firm of Stoddard Warnick & Albright filed a billion dollar lawsuit against Diamond Resorts International January 29, 2017. The lawsuit alleges Diamond Resorts (DRI) ensnared thousands of elderly consumers in its deceptive and fraudulent scheme to sell points-based timeshare memberships.

According to the complaint, which was filed on behalf of lead plaintiffs Ilona and Lester Harding, along with thousands of other elderly consumers, buyers typically spent tens of thousands of dollars or more for upfront Membership fees and upsold Membership levels. Memberships were accompanied by hefty annual assessments that continue in perpetuity.

Several plaintiffs were named in the lawsuit. Among those named:

Of particular note to Diamond Resort Owners is the absence of any “collection” except the US collection. Other Diamond Resort collections not named in the lawsuit include Hawaii, Premier Vacation Club, California and Monarch Grand Vacations Collections.

Former CEO David Palmer served as President and/or Director (and sometimes as both) for at least six of the Defendant entities; Jared Finkelstein serves as Secretary and/or Director (and often both) for at least six of the Defendant entities; and Lilian Luu serves as Treasurer and/or Director (and sometimes both) for at least six of the Defendant entities.

The law firm Albright Stoddard Warnick & Albright is one of the oldest law firms in Nevada, in existence for 40 years. According to the firm’s website, they have represented clients in many high profile and complex bench and jury trials in Southern Nevada, in both state and federal court, representing contractors, lenders, and owners on large commercial projects. The firm successfully defended a general contractor in a bench trial, which lasted intermittently for well over a year, arising out of the construction of a major Strip hotel. At the time, it was the longest bench trial in Clark County history. Included among the firm’s numerous institutional clients are American Express, Wells Fargo and Hard Rock Café International.

According to the complaint, the lawsuit alleges the elderly were targeted because of their vulnerability and time available to travel. Elderly is defined as anyone 60 years or older at the time of purchase. The elderly were induced to purchase vacation memberships in a same day sale without being advised as to the lack of a secondary market by intentional design. Memberships were accompanied by, at times, dramatically escalating maintenance fees.

Inside Timeshare has written numerous articles supporting such claims.

cartoon IreneCartoon Charles

 

 

 

 

 

 

 Mr. Ralph Marbles, an elderly buyer diagnosed with a medical condition shortly after purchase, but denied a surrender until the television reporter contacted the company. Mr. Marbles’ maintenance fees increased from $200 a year to $684.

While Diamond Resorts boasts that 70% of sales come from existing owners, there are thousands of complaints filed by existing owners, as detailed in previous Inside Timeshare articles. In addition, existing owners are often encouraged to purchase additional points as a way to reduce maintenance fees through a non-existent buy-back program and are not told points are worth only pennies on the dollar when used to pay maintenance fees. The Saldana and Olds families are cases in point.

http://insidetimeshare.com/call-change-us-timeshare-industry/#more-1397

I have intervened on behalf of several families whose financial lives and retirement savings were decimated by their Diamond Resorts vacation plan. The Hurleys are a retired Canadian army family currently working with Diamond Resorts Consumer Advocacy in the hope of saving 40 years of retirement savings representing their entire life savings.

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

As a result of the Arizona Attorney General’s $800000 settlement and “Assurance of Discontinuance”, Diamond is rolling out a new Clarity (™) program that seeks to address deceptive and fraudulent business practices that the Arizona Attorney General alleges violated the Arizona Consumer Fraud Act.

http://insidetimeshare.com/opcs-europe-usa/#more-1518

It’s not all doom and gloom though!

fourmen

I have recruited, well drafted, several of those I have helped to pay it forward by becoming Appointed Special Timeshare Advocates (™) as a bridge between their vacation nightmare and resolution. We are working with the newly formed Diamond employed Consumer Advocates. Already, we have achieved positive outcomes, or at least provided straight answers, for what an owner can and cannot expect.

Not resolved are the plight of high volume owners whose accounts have been suspended or issued a “cease and desist”. For years these owners were encouraged to buy upwards of 100000 to 200000 vacation points in order to be able to rent out enough points to cover maintenance fees. In recent years points have sold from $2 to $4 per point. Changing rules and regulations and acknowledgement forms signed in an upsell have eliminated rights contained in their original contracts. Irina tells of her vacation nightmare:

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

That about covers the first 20 pages of the 55 page complaint. There’s only so much vacation burden a writer and reader can handle at once.

“Diamond Resorts is still looking into the facts surrounding the lawsuit; therefore, it has no comment at this time,” according to DRI Public Relations spokesperson Maya Pogoda.

Contact Inside Timeshare if you’ve had a positive or negative vacation experience you would like to share.

Would love to hear from you!   telephoneman

 

So there we have it, a huge battle is about to take place in the world of timeshare. This is one story we will be keeping a very close watch on, although it may be some time before the trial actually takes place. The wheels of justice are slow to turn.

NEWS JUST IN!!!

CLA Logo

Canarian Legal Alliance has just informed Inside Timeshare of yet another Supreme Court judgement, this is against Silverpoint / Resort Properties. That makes 5, yes 5 rulings in against this company in under 2 weeks.

The British client has been awarded over £62,000 including legal fees and legal interest. We believe this ruling covers lack of information in the contract, perpetuity and once again the client is recognised as a consumer not an investor.

If you have any questions regarding any article published or about any company you may not be sure about, contact Inside Timeshare and we will be please help.