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letter-from-america

Friday’s Letter from America

In this week’s Letter from America we welcome the first article from Ken Silva, with his Nightmare on Timeshare Street story. This is also made more complicated due to the involvement of Barclays, as this is considered as a separate agreement to the timeshare. But first we look at the news from Europe.

It has now been confirmed that the enterprises owned by Mark Rowe, are being investigated by South West Police, this follows the report at the beginning of January of the raids conducted by Trading Standards at several premises used by these companies. This followed after an investigation by the “Scambuster Team”.

The Police are contacting clients who either have lodged complaints with Trading Standards and the Police in the past, or from records seized in the raids. If you have had any dealings with any of his companies (a full list can be found at the link below), then contact:

South West Police ROCU. DC 4624 Katie Andrews. PO Box 37, Valley Rd, Portishead,Bristol. BS20 8QJ

Police ROCU UK

http://insidetimeshare.com/monster-credits-associated-companies-summary/

Could this now be the end to the Mark Rowe Enterprises?

If we thought that things could not get any stranger in the world of timeshare, then you would be wrong.

Silverpoint based in Tenerife and headed by Mark Cushway, have not only closed their sales decks, but have now set up two companies to offer their own clients a relinquishment service!

One company has been identified as Centaurus Mediations SL, which was highlighted on 15 January. They are contacting clients with the story that the only way out of their timeshare and maintenance fees, is to pay them to relinquish the timeshare. James, one of the callers also tells them that Excel has taken over and that no one will get any compensation for any claims.

How do we make this link, very simple, the information that the caller has on the timeshare owner can only have come from one place, Silverpoint! The caller knew that they had employed ReclaimGC and CLA to institute a claim against Silverpoint, so we leave you to make up your own mind. A fuller story will be published in due course, once all the information has been processed.

For now on with today’s Letter from America.

A Warning to Anyone Thinking About Buying a Timeshare

Our Diamond Resorts International nightmare

Fri Doh!

By Ken Silva

February 2, 2018

Timeshare Consumers, take my advice and do due diligence before buying a timeshare.

Protect your family. Do not get your family into the mess we are in. Do your research. There’s a reason there are so many timeshare members on Facebook and websites seeking to dump their timeshares. I’m sure there are sales agents selling the product honestly, but you decide about our sales agent after reading what happened to us. All you have to do to prove we are telling the truth is to get on our booking site and try to find a vacation based on what we were sold.

Attorneys General, please, do not dismiss our experience. We are fighting to get our money back, as we still owe $10,000 on a Diamond Resorts Barclaycard credit card. We hope to escape the “ironclad” STAY VACATIONED contract.  

Here’s what happened

saleman

In May of 2016 my wife and I purchased a Diamond Resorts International (DRI) Sampler (trial) package for $2,995 in Las Vegas.

Using our Sampler points we booked a stay at Diamond’s Ka’anapali Resort. We purchased 2,500 Hawaii Collection Diamond points for $13,000. Our sales agent was Karen Cossettee. Ms. Cossette told us we would be able to book one to three weeks of vacation anywhere. Our son Jacob, age 3, has a serious medical condition so we need to vacation close to home as we have to be near medical facilities. We had to cut both our Hawaii and Las Vegas trip short because our son experienced a medical emergency back home.

After we returned home, we got on the booking site, but found no locations meeting our requirements. About the only bookings you can get with 2,500 points are for places like Branson Missouri or Gatlinburg, maybe a one bedroom in Orlando. It is impossible to stay one to three weeks in a one bedroom in California near a major medical facility.  

Jacob has cerebral palsy. He has been diagnosed failure to thrive and is on a feeding tube. He requires 24/7 care and he is a case study at Stanford University Medical School. We cannot fly because of his condition. We booked Tahoe recently, but cancelled that trip because even Tahoe is too far.  

Using our Sampler points requires a sales presentation, so we booked a trip to

Las Vegas November, 2017. We stayed at DRI’s Cancun resort. There the Diamond sales agent, Davia Hunsicker said, “Hawaii lied to you! You can’t go anywhere on 2,500 points.” We were told Hawaii Collection points are expected to be slammed with assessments and 10-14% increases in maintenance fees because Hawaii is so expensive and subject to weather damages. However, in Hawaii they told us maintenance fees increase only 6%. They went on to explain that Hawaii was going to have a $1,000 plus assessment for damage to shores.  Ms. Hunsicker told us U S Collection maintenance fees increase only 2% on average.   

The Vegas agents told us the only way out of this situation was to move our Hawaii points to the US Collection and to do that we had to buy 4,500 points for $18,000 to own 7,000 U S Collection.

Like in Hawaii, we were shown several places we could stay that met Jacob’s needs. Again, when allowed on our booking site (again after the rescission period), it was a different inventory. I called DRI and reached a Platinum agent who said, “I’m with the Platinum desk. I can pull strings.” She found a desirable option, Pacific Grove in California. This was one of the locations we were shown in Vegas, only in our inventory it would require 22,000 points.

Timeshare companies can dodge the rescission period by not allowing access to the booking site until after the rescission period. In our case, I tried to log on two days after signing but was told my account was in escrow. The rescind period is seven to ten days, but it takes nearly 30 days before you can access the booking site.

DRI sales agents are so good at having all the answers and they will promise you the moon. Ms. Hunsicker also said we could get an extra 8500 “ghost” points that would upgrade us to Silver by saying we owned an RCI week. She instructed us to just nod to the QA person when they ask about RCI and we would be able to get the extra points, but not to say she told us because, “You might get me fired if they find out, but that way you’ll get another 8500 points.” She advised us to purchase an RCI week at Sam’s Club for $500 – $600 and then trade it in to Diamond for 8,500 points. She said with Silver benefits we could have food stocked and luggage forwarded. This was a tremendous benefit because of Jacob’s needs. However, when I read about these benefits the luggage benefit costs additional funds and the food service was not available at the Silver level.  

We asked about what would happen if we could no longer use the points and were told DRI will work something out and were informed DRI has a website where you can sell points. DRI points are virtually worthless on the secondary market.

We would have rescinded our contract immediately if I had been able to see that we could not use our points as promised. Diamond salespeople will offer their cell and promise to be available and act like they genuinely care about you (like ours did concerning Jacob), but then disappear after a few days of friendly texts.

I work for a faith based non-profit. We teach anti-bullying and leadership skills. Our credit score is over 800. I am 33 years old and my wife is 31, caring for our son’s severe medical issues. To think that timeshare companies allow these practices and hides behind the fine print is astonishing.

I published a review on Trust Pilot.

Reply from Diamond Resorts International

Published Monday, January 15, 2018

We regret to hear of your experience as we are known in being forthright and delivering top notch service. Please email us at customerservicesm@diamondresorts.com for further assistance.

My response to Diamond’s response

Edit: Diamond Resorts reached out, as seen below, however, they have not responded to my email to them as of 1/25/18. Also, they are not known for their top notch service. In fact, look on Facebook for the various groups of people who are in positions like mine, or the many other reviews on Trust Pilot. It often takes DRI 45 or more days to get back to you and many are ignored. When you call customer service, they tell you there’s not much they can do to help.

If Diamond was forthright and delivering top notch service, they would refund victims their money. I’m glad I have a background in Social Justice and Social Media.

I hope our pain will save others.

Notes from Irene

Since Ken submitted this article a week ago, Inside Timeshare received five more complaints directed against this same sales center, one against the same agent Ken complained about.  Especially in California, there have been complaints from Monarch owners of deeded weeks, coerced into giving up their deed and buy points, only to find out they did not have access to the week they had used and enjoyed for years.

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

https://monarch-grand-vacations.pissedconsumer.com/lawsuit-against-monarch-grand-and-diamond-resorts-20150428628300.html

All timeshare resorts have non-member inventory that always guarantee non-members can spend the money but members often cannot find availability. Diamond is not the only resort with complaints like this. New York Attorney General Eric Schneiderman settled with The Manhattan Club for $6.5 million. Clearly, there is a problem industry wide.

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

Timeshare deception and “bait and switch” is not a practice limited to Diamond, but in the case of DRI, licensed resale brokers will not even accept a Diamond listing. It’s bad enough if you can sell a timeshare if you were lied to, (often a timeshare is worth only pennies on the dollar), but with Diamond it is worse because it has been widely reported Diamond has virtually no secondary market. Try calling some of the members of the Licensed Timeshare Resale Brokers Association and see what they have to say.

http://www.licensedtimeshareresalebrokers.org/

ethics scale

We really do hope timeshare developers will work with us to stop predatory timeshare sales.

Thank you Ken and Irene for today’s article, it is with these stories that everyone becomes aware of what is happening, including the developers. Let us hope that they take note and start to change how they operate.

Inside Timeshare has just been informed from one of our German readers that Marriott is sending out emails to clients with the following statement (part of email translated from German):

An important commentary has been published in the press regarding letting restrictions on tourists (especially in the Balearics and in Catalonia) in 2017.
We would like to point out that MVCI Management, S.L. the only licensed company that has the right to rent properties in MVCI Resorts in Spain for themselves or their owners.
Weekly owners who rent their time-share weeks either by themselves or through third parties face fines of up to € 400,000.
Due to the complex nature of the legislation in question in Spain, we recommend that you obtain legal advice on your individual circumstances before renting your weeks outside the MVCI rental program.
If you have any questions, please do not hesitate to call us or send an e-mail to Europe.services@vacationclub.com.
Best regards,
Marriott Vacation Club
We will obviously bring you more on this as we get more information as and when we get it.

If you have any questions or require any information on this or any other article published, contact Inside Timeshare, we will be pleased to help and point you in the right direction.

So that is it for another week, Friday is upon us and the weekend beckons, have a good one.

friday-again

tues

The Tuesday Slot with Irene

In this weeks Tuesday Slot we welcome a new contributor Karen Krokosh, but first a quick look at what has been happening in Europe especially in the courts.

The year has certainly not started well for the timeshare industry, the first week of January has seen the Supreme Court in Madrid rule on 6 occasions against Silverpoint from Tenerife.

This court has declared these six contract null and void as they were over the 50 year period allowed by law, what is known as perpetuity, they also contained the points or floating weeks systems.

tribunal-supremo

The court also reaffirmed the position of the taking of any payment within the given cooling off period, even if taken by a third party as prohibited. This cooling off period was introduced to protect consumers and allow them to decide whether they wished to continue with the purchase, as these are usually made as decisions on the day.

The total amount the court has awarded in these cases is a staggering 321,274€ with legal fees and legal interest.

In another case against Silverpoint, the High Court in Tenerife has ordered the return of over £31,000 plus legal fees and legal interest to a British client. Again the contract was declared null and void as it contained the points or floating weeks system.

In the Court of First Instance at Maspalomas, another British client has been awarded over £19,000 plus legal fees and legal interest, with the contract being declared null and void. In this case the contract was sold by Anfi and was for a duration of over 50 years, which is not allowed under the Spanish Timeshare Law 42/98.

All these cases have been brought on behalf of client by the law firm Canarian Legal Alliance, so contrary to what the timeshare industry is is saying, this law firm is doing what it says and winning on behalf of their clients.

As they say the proof is in the pudding!

On with this weeks Tuesday Slot.

Sell My Timeshare Now,

A Timeshare Listing Service for Buyers or Sellers

Diamond Member Karen Krokosh Issues a Warning

face1

By Inside Timeshare Contributor Karen Krokosh

Comments about SMTN follow Karen’s article

January 9, 2017

I responded to a Sell My Timeshare Now (SMTN) solicitation. Not only did the company over promise the ability to sell Diamond’s non-deeded U.S. Collection points, they told me they could help me recoup expenses by renting my points. DRI does not allow renting through a third party site. As a resource for timeshare members, SMTN should abide by Diamond’s official rental policy by not accepting rental listings. Here is the current DRI rule:

2.5.1 A Member is not prohibited from periodically renting the Accommodation reserved for the Use Period or the reserved Other Redemption Opportunity pursuant to these Club Rules.

However, the use of Points to reserve Accommodations or Other Redemption Opportunities for commercial purposes or for any other purpose other than the personal use of the Member or the Member’s family and guests is prohibited. Use by a Member of public advertising or an online website to seek renters shall be deemed a prohibited commercial use.

Members who are primary developers of Club Resorts (that is, members of the Diamond Resorts International group of companies) and providers of Other Redemption Opportunities are specifically exempted from this restriction, and are entitled to use their reserved Accommodations and reserved Other Redemption Opportunities for promotional, rental, or other commercial purposes.

Diamond is not the only timeshare with little or no resale value. While some timeshares like Disney, Hilton and Marriott can be sold, it has been widely reported Diamond’s non-deeded points are especially difficult to sell. I contacted a few members of the Licensed Timeshare Resale Broker Association. Not one would accept a DRI listing, feeling the restrictions the company places on the use of secondary points are too severe.

http://www.licensedtimeshareresalebrokers.org/

SMTN agent Sandra Van Lanen suggested a list price of $12,000 for 3,000 points. We paid about $12,000, so in no way was that price realistic as I dropped my price from $12,000 to $7,500, $5,000 and $1,000 with no offers. What was SMTN’s response? They said, “It takes time.” There are about 15,000 Diamond Resorts members on a variety of Facebooks and websites and I’ve learned many of them would be willing to give away their Diamond points. I would have been laughed off these sites posting these ludicrous amounts. I am committed to exposing this company and others that are taking advantage of those already burdened by loan payments and maintenance fees.

Here’s what I paid SMTN:

The original “Advertising and Marketing” product was priced at $1,798. I was given a discounted referral of $1,498 USD, but paid initially a deposit of $699, agreeing to pay the remaining balance of $799 when the timeshare sells. Since that is never in almost all Diamond cases, I decided to cancel the lifetime listing. When you cancel, SMTN has the right to bill you for the remaining balance.

promotion

I have also learned many of the listing and resale companies are staffed by former timeshare executives and sales agents. Some are legitimately trying to help those desperate to get out of their timeshare, but others prey on the desperate. This is a Department of Justice report about timeshare resale and release scams:

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

Many timeshare buyers report they were sold a timeshare by deceit. I looked up the definition of racketeering. While timeshare exit plans are not violent crime against property, I see a similarity. The sales agents who sold us the problem are now the ones coming around to “help” us. “A common example of a racket would be if a group of people cut the tires of cars on a specific street, and then that same group, or one in concert with the one cutting tires offered ‘protection’ to the owners of the cars for a price. This fits the definition of a racket because without the organization’s slashing of tires in the first place, the demand for ‘protection’ would be low or non-existent.”

https://www.investopedia.com/terms/r/racketeering.asp

I have been trying to get rid of this timeshare for years. I was so relieved to find the member sponsored Diamond Resorts Advocacy Owners Facebook where I learned that Diamond has launched a new program called Transitions and from what Inside Timeshare told me, I am eligible! I am hopeful, waiting to hear back.

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

Comments about Sell My Timeshare Now by Irene Parker

After Friday’s article about the importance of Better Business Bureau ratings, I checked the SMTN BBB rating. My red flag was raised when I learned Karen paid up front money to list her Diamond points. Accepting upfront money to sell your timeshare is illegal in Florida, but it seems companies can work around the law by calling it an ad or subscription fee, or a market analysis.

http://insidetimeshare.com/fridays-letter-america-31/

SMTN has been sold twice since 2010. Scott Roberts is the owner of Vacation Innovations and SMTN is a wholly owned subsidiary of V.I.

The BBB has assigned SMTN a D rating. I called SMTN and talked to Mike. The first question I asked Mike is, “Can I rent my DRI points through SMTN?” Mike said renting DRI points is no problem. When I informed him DRI does not allow the renting of points through a third party site like SMTN, Mike said he would have someone from legal call me. We did not hear back. Irina Allen is one DRI member who had her Diamond account suspended, accused of renting points on RedWeek.

http://insidetimeshare.com/monday-start-another-week/

This is what BBB notes on SMTN, providing a good example of how the Better Business Bureau can assist consumers by providing important information.

According to BBB files this company has a pattern of complaints that centers around the company’s advertising claims. Complainants allege they are guaranteed a time frame in which their timeshare will sell. Many consumers allege the company makes a promise that their timeshare will sell quickly. The company responds to the complaints and reiterates the company policy which reads the company does not guarantee when a timeshare will sell.

On March 23, 2016 BBB reviewed the complaints on file and determined the pattern described above has not been eliminated. BBB sent a letter to the company requesting cooperation in responding to and eliminating the pattern of complaints.

BBB received a response from Sell My Timeshare Now (SMTN) who addressed concerns raised. SMTN has introduced a video that consumers are encouraged to view that clearly outlines their services. In their business model explanation SMTN says that: “…SMTN never promises buyers are waiting; does not request wire transfers, greendot moneypak payment or purchase of prepaid credit cards; does stand behind the services it promises and always strives to deliver excellent service to all of its clients”… Additionally, SMTN hired a law firm to review the complaints and details surrounding each one. This review of these recordings has shown that the communications between SMTN and individual consumers (when they are available) has been shown to differ. SMTN has also instituted training for salespeople. They are to only make promises that are consistent with the guarantees and promises made by the company in writing. SMTN is recording calls made by their sales people to confirm the training is being followed. SMTN now has a policy for their salespeople who consistently fail to comply with the training which results in their dismissal from the company. Finally, they informed BBB that they will be further training their customer care employees to offer to help earlier in the process and be sure to make certain the consumer is satisfied with the resolution.

On December 5, 2017 representatives of SMTN met with the BBB to update us on improvements they are making to their organization. They have taken steps toward improving customer service by hiring a new Customer Service Manager. They have put in place an “audit group” that will contact consumers on the day they sign the contract with SMTN and then again 90 days out as a way to ensure customer satisfaction. It is anticipated that by proactively working with their customers, the number of complaints will be reduced substantially. BBB will work closely with SMTN to follow their progress and to continue to address any complaints that may come in.

Consumers are, once again, requested to contact SMTN prior to filing a complaint with BBB at 1-877-815-4227.

This Business Is Not BBB Accredited

Sell My Timeshare Now, LLC

D

Customer Review Rating:

35%

62%

[12] Positive Reviews

[1] Neutral Reviews

[21] Negative Reviews

[34] Total Customer Reviews

[107] Total Customer Complaints

Composite Score:

Sell My Timeshare Now, LLC has received 1.93 out of 5 stars based on 34 Customer Reviews and a BBB Rating of D.

This content is provided by the business and may contain advertising. BBB does not review or endorse this content.

https://www.bbb.org/concord/business-reviews/timeshare-resale-and-rental-marketing/sell-my-timeshare-now-in-portsmouth-nh-92008632/Alerts-and-Actions

According to a post found on RedWeek, published on the internet, SMTN does seem to charge a considerable upfront fee. A member had asked whether they should buy timeshare points through SMTN.

Good question. Here is the straight scoop:

ken1193

1 month ago

Sometimes you will find a timeshare of interest on the SMTN site which may be available at a price acceptable to you. HOWEVER, you will have NO say or ANY choice regarding the “closing” entity. Closing costs through SMTN are quite excessive — multiple times the cost of customary and usual closing costs. You have no option to conduct a SMTN transaction “in person”, but that is the case in most any resale timeshare transaction, so SMTN is not unique in that regard. It would frankly be both highly unusual and entirely unnecessary to conduct a resale timeshare transaction “in person”. Objective, third party “closers” who have no association with either buyer or seller (not an available option via SMTN, unfortunately) look out for the interests of BOTH buyer and seller, holding all funds in escrow until closing if necessary. This obviously eliminates any need for any travel or physical presence by either the buyer or the seller just to “close” on a resale transaction.

With SMTN, you essentially have to determine ALL of the collective costs as a buyer and then ask yourself if that bottom line figure is acceptable to YOU to acquire that particular timeshare listing, despite the exorbitant closing costs. Far more often than not, the answer will be NO, but there are (relatively rare) exceptions. In all fairness, in the performance of your due diligence you really have to look at the big picture and ask yourself if the TOTAL expenditure involved justifies acquisition of that particular timeshare for YOU. You obviously first need to accurately determine the bottom line total figure before you can possibly make that fully informed evaluation and personal decision.

SMTN of course has nothing whatsoever to do with maintenance fees, regardless of the resort involved. Maintenance fees are determined only by individual resorts — and they are engraved in stone. That said, I would certainly want to verify the accuracy of any figures SMTN indicates as maintenance fees. This is very easily done by contacting the resort directly for confirmation of any figures claimed by SMTN in their listings.

Last edit by ken1193 on Nov 28, 2017 05:27 AM.

https://www.redweek.com/forums/messages?thread_id=14010;page=last

Keep calm Homework

Thank you to Karen for her advice! We look forward to hearing more from Karen as our first new Inside Timeshare contributor of 2018.  Contact Inside Timeshare or one of these member sponsored U.S. timeshare groups if you need help with a timeshare. It can save you money.

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

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

https://tug2.com/Home.aspx

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

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

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

If you require any information regarding this article or any other published on Inside Timeshare, please use the comments or contact form and we will get back to you. If you are considering using the services of any company and are unsure of how to check them we will also be pleased to help.

 

letter-from-america

Friday’s Letter from America

Welcome to the first Friday’s Letter from America of 2018, we may be only 5 days into the New Year, but the Supreme Court has just made another ruling against Silverpoint.

Another client of Canarian Legal Alliance has had their contract with Silverpoint declared null and void, with the return of over £11,000 plus legal fees and interest. This now makes the number of rulings from the Supreme Court made by CLA to an astonishing 83!

Once again it is that time when maintenance bills start to drop onto the door mat, for many this is a difficult time, especially for the elderly who can no longer afford to pay the ever increasing bills.

For one elderly lady which Inside Timeshare has been highlighting for some time it has happened again. This is the case of Mrs B, as you will remember, MacDonald Resorts refuse to acknowledge that she no longer owns her timeshare at Dona Lola in Spain.

Mrs B and her sister, who are now in their late 80’s, employed the services of a company to be rid of their timeshares around 3 years ago. This company “sold” the timeshares and transferred them to another person, this was duly notarised by a notary in Spain. The Lanzarote timeshare has caused no problem, but MacDonald’s refuse to accept the transfer.

Mrs B has now received another demand for over £3000 for maintenance, obviously this will end up being sent to a debt collection agency which will incur even more fees.

It must also be remembered that they had not used the timeshare for over 10 years, yet still paid the maintenance until the transfer. Both are virtually housebound and cannot afford to pay these extortionate amounts.

Tony Hetherington has published several articles about MacDonald Resorts and their chasing of maintenance fees, even after the death of the owners or severe illness.

http://www.thisismoney.co.uk/money/experts/article-2698355/TONY-HETHERGINGTON-Even-death-not-rid-timeshare.html

MacDonald Resorts is one of the worst offenders in the timeshare industry for this type of behaviour, it is companies like this that have given timeshare the reputation it has. Greed it seems is the order of the day.

Now for this weeks Letter from America.

Hope for Beleaguered Timeshare Members!

Start with the Better Business Bureau

By Irene Parker

January 5, 2018

The Nightmare on Timeshare Street article scheduled for today has been cancelled because the resort listened and responded to the member. We don’t yet know the outcome, but at least the member has not been dismissed or ignored. The customer is not the enemy. The enemy is the timeshare sales agent that “pitches heat” making outrageous claims to sell points, knowing they are protected by the oral representation clause and that there is no federal enforcement.

If you have a complaint about your timeshare, first and foremost, contact your resort. It’s surprising how many who contact us have not tried to resolve their issue with the timeshare company before contacting an attorney or an exit company. It is the opinion of Inside Timeshare, in most cases, a member can accomplish what an attorney or an exit company can accomplish by following our complaint form. We are here to answer any questions for free.

How to File a Timeshare Complaint: Revised

In the U.S. it’s best to begin with the Better Business Bureau, although the BBB is not a regulatory agency. It is a nongovernmental nonprofit that serves to promote a community of business that consumers can trust. The BBB does not solve consumer disputes. Success is not based on the outcome, but whether the business responded or not.

A BBB complaint is the easiest to file and can serve as your blueprint as you work your way down the list of appropriate agencies. File a complaint only if you feel you were a victim of deceit and bait and switch. “I can’t afford this” or “there is never any availability” or “you can always book cheaper online” are not specific enough complaints.

We compare the Better Business Bureau ratings among five major vacation point sellers. First, an explanation of the rating process from the BBB website:

The BBB rating rates only how cooperative and responsive a business will be to consumer issues. BBB ratings are based on information in BBB files with respect to the following factors:

Business’s complaint history with BBB.

The BBB rating takes into account the following information with respect to closed complaints that relate to a business’s marketplace activities:

  • Number of complaints filed with BBB against the business.
  • The size of the business.
  • If complaints have been filed, whether in BBB‘s opinion the business appropriately responded to them.
  • If complaints have been filed, whether in BBB’s opinion the business resolved the complaints in a timely manner to the customer’s satisfaction.
  • If complaints have been filed, whether in BBB‘s opinion the business made a good faith effort to resolve complaints, even if the customer was not satisfied with the resolution.
  • If complaints have been filed, whether in BBB‘s opinion the business failed to resolve the underlying cause(s) of a pattern of complaints.
  • The age of resolved complaints. Older resolved complaints have less of an impact on the rating than newer complaints.

⦁ Type of business.

⦁ Time in business.

⦁ Transparent Business Practices

⦁ Failure to honor commitments to BBB.

⦁ Licensing and government actions known to BBB.

⦁ Advertising issues known to BBB.

From Best to Worst based on Stars

BBB Accreditation: If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB accredited businesses pay a fee for accreditation review and monitoring for continued compliance.

https://www.bbb.org/council/for-businesses/about-bbb-accreditation/

Disney Vacation Club, Marriott Vacation Worldwide, Diamond Resorts International, Bluegreen Vacations Unlimited, Wyndham Vacation Ownership

                                                                     # of stars      # of Complaints       # of reviews +      –   neutral

A+ Disney Vacation Club                            5/5                             9                          1        1                   0      0

No Government Action No Pattern of Complaints

Accredited since 1991, in business since 1990

 

A+ Marriot Vacation Worldwide          3.68/5               123                                  11        0                   11     0

No Government Action No Pattern of Complaints

Not accredited, in business since 1994

 

A- Diamond Resorts International       3.27/5          1,115                                   89       2                  86      1

Government Action noted

Not accredited, in business since 1996

 

C+ Bluegreen Vacations Unlimited       2.47/5           781                                108         9                 95      4

Pattern of Complaints

Not accredited, in business since 1966

 

C+ Wyndham Vacation Ownership      2.39/5         2,085                             96             4                 92      0

Government Action noted and a Pattern of Complaints

Not accredited, in business since 1994    

Next week: The Consumer Protection Agency – What’s left?

A survey of all timeshare appropriate regulatory agencies:

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

Always Remember:

U.S. Self-Help member sponsored groups we believe not to be industry influenced:

We seek to provide timeshare 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://tug2.com/Home.aspx

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

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

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

Contact Inside Timeshare if you have questions about this or any other article published, we are here to give you the best advice possible.

 

Hello monday

Start the Week

Welcome to Start the Week, we ended last week with a couple of more Court of First Instance rulings against Anfi. Once again the courts awarded back substantial amounts to the clients as well as declaring the contracts null and void.

This does make the claims of the CEO of Anfi, that they are not losing any cases rather shallow to say the least.

At the Court of First Instance in Arona, Tenerife, the judge has ordered International Holidayway Marketing SL, to repay over 7,000€ plus legal fees and legal interest. The clients contract has also been declared null and void.

Following on from the ongoing dispute at Los Claveles, Inside Timeshare has been receiving many comments from both sides. There does seem to be very wide difference of opinion, the following comment has been received with author asking to remain anonymous, unless Inside Timeshare deems it helpful to name him. At this point it has been decided to leave it anonymous, this letter is from a pro-committee owner.

los claveles logo

“Time to talk?  With an organisation that:

Does not respect or abide by the Constitution and Statutes that apply to our resort?

Sacks well respected members of staff without justification?

Does not comply with the orders made by the Arbitrator, even though they are participating in the Arbitration?

Employs staff that physically and verbally assaulted our Club President, Carol Parkinson (who is over 70)?

Produces false charges to the Spanish Police about Carol Parkinson and Albert Fletcher, causing Carol to be arrested in Tenerife and having to return there later for a court hearing?

Lies to Spanish courts that they cannot contact Albert Fletcher whilst continuing to send him letters?

The resounding answer is “No”.  Onagrup has twice had the opportunity to talk, before and after the 2015 AGM, and on both occasions has failed.  The overwhelming majority of owners that the Club Committee is able to reach (because of Onagrup’s refusal to hand back the Club’s membership register), directed the committee to stop talking and instead go to arbitration to settle the dispute.

The Club Committee has just issued to members an initial response to the latest letter from Snr Castro, MD of WimPen Leisure Management SA which again breaches the rules of confidentiality of arbitration and which again has been sent out using the Club’s membership register without permission.

The impression given by Mr Castro is that only WimPen has had success in the arbitration and that a few minor matters remain for the appeal court. On that basis he infers that the arbitration was a waste of time and money. As Mr Castro knows very well but fails to mention, WimPen was either refused permission to appeal, or withdrew its appeal, against the arbitrator’s findings that the committee formation and the AGMs and SGMs held by the committee were legal. This means that appointing Hiro Bulchand as the new Administrator was also legitimate, contrary to WimPen’s claims. Which in turn means that WimPen’s administration of the Club since the management contract expired in March 2017 has been illegal. The committee’s belief is that all of these issues were raised for appeal by WimPen in order to destabilise the Club and prevent the Club having any leadership, clearing the way forward for a takeover by Onagrup.

Turning to the financial information provided by Snr Castro, none of these figures has been audited. In addition, owners have been refused repeatedly their constitutional right to inspect the financial records and accounts by WimPen/Onagrup. It is also worth mentioning that the accuracy of the financial figures previously provided by Onagrup for the Escritura owners’ AGM in May 2016 was highly questionable. Whilst it appears that the resort’s funds are growing, these figures cannot be regarded as reliable until audited by an appointed accountant and inspected by the Club Committee.

The bottom line is that there is more to running a timeshare resort than just making a profit. The Management Company needs to have the respect of the Owners and it needs to respect them.  Onagrup has demonstrated from the outset that it is not a suitable choice for Los Claveles which has a fundamentally different ownership model compared to the other WimPen managed resorts, and as a consequence is most at risk of takeover.  Ask any of the owners who have had their holiday ruined by Ongrup’s reckless rental  policies of allowing noisy and disruptive groups of teenagers to book into the resort, and they will soon tell you that it is quality not quantity of rentals that is important.

Unlike the tiny minority of disgruntled owners who are campaigning against the democratically elected committee, the huge majority of owners are completely united in getting Onagrup (and Trustee FNTC) out of Los Claveles through arbitration. This huge majority of owners directed the committee to enter into arbitration and they authorized the committee to incur the expense of legal representation.   The appeal court judge’s decision is expected early in the New Year, and if he rules against Onagrup, the way will then be clear for the owners’ legitimately appointed Administrator to replace WimPen and get on with managing Club Los Claveles for all of the members.

Inside Timeshare thanks all those who send in comments which are conducive to the debate, it is you the members who need to resolve this issue. Until all members are informed of the situation, then being able to make up their own minds as to which way forward is best, this will drag on and may incur considerable legal expenses. Whichever side you are on, the time to talk is now.

In tomorrow’s Tuesday Slot with Irene, we look at the Billion $ lawsuit and why a Federal Court Judge has ruled in favour of Diamond Resorts International. There is also the story of Mary Bowling a former DRI sales agent, who has a case at the courts in Hawaii. Once again we highlight another military family falling foul of unscrupulous sales agents.

As we were about to publish the first sentence from the Court of First Instance of this week has just come in.

Once again it is against Anfi, the judge in this case has awarded over 5,000€ plus over 7,000€ in maintenance fees and legal interest, also declaring the client’s contract null and void.

Watch this space for the news as it happens.

 

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, we continue with another chapter from our traveling writer David Franks, this week it is entitled Miami Vise, edited by Irene Parker. But as usual we begin with some news from Europe.

eu news

Back in May Inside Timeshare reported on some very nasty events in Tenerife, this involved the former Wimpy resort Los Claveles, which was subject to a management buyout by Ivan Pengelly in 1998. Over the years the resorts operated by Wimpen (Wimpy Pengelly) had very good relationships with the owners and the owners committee, this all changed when Pengelly sold out to the Ona Group. (see previous articles).

But there may just be a glimmer of hope on the horizon, it was announced this week that the arbitration process has completed and a judgement has been made. It is in total favour of the owners committee, that the Ona Group, Wimpen and the FNTC, are all in the wrong. The owners committee is legally constituted and has all the rights to run the resort. This means everything must be handed over to the committee, that Wimpen (Ona Group) have no right to collect or demand maintenance fees.

It now just needs to be seen if these companies comply with the Arbitrator, if not the committee will then have to resort to the Spanish Courts to enforce the judgement. We wish them all the very best and hope that this sorry tale will be over very soon. More on this as and when new information comes in.

http://insidetimeshare.com/los-claveles-return-bad-days-timeshare-tenerife/

http://insidetimeshare.com/los-claveles-battle-goes/

http://insidetimeshare.com/horror-weekend-los-claveles/

Now for some news which is proving to be rather disturbing.

Justice4 the claims company owned by Lee Roy Pallister, which went bust recently but re-emerged as Hello Consulting and Tucola Ltd, with his wife as named director, has been taken over. Could this be good news for all those clients who paid Justice4?

Unfortunately that may not be the case, the take over is by ABC Lawyers, yes, you did read that correctly. Mark Rowe of Monster credits, Hollywood Marketing and Jive Hippo fame is now owner of the former Justice4!

http://insidetimeshare.com/monster-credits-associated-companies-summary/

Loyalty: No Such Thing in Timeshare

The TCA (Timeshare Consumers Association) whole heartedly endorse this, not surprising considering the TCA is also owned by Mark Rowe.

What also has to be remembered is Mark Rowe was at one time a senior sales manager for Resort Properties / Silverpoint under Mark Cushway, now look at the history of that company! Also Lee Roy Pallister is another ex-timeshare salesman. We leave it up to you the reader to decide what the implications of this will be. We think we already know what they are likely to be!

Yesterday Inside Timeshare published an article about Anfi, just after publication, news came in of a sentence which had been issued by the court, it would seem that even though it is August some people are still working.

Another loss for Anfi, at the moment we do not know the infringements ruled upon, but it is more than likely the usual, either perpetuity, floating weeks or points. In this case the ex-member has been awarded 37,224€ plus the legal fees and the court also awarded back all maintenance fees that had been paid.

Do you still believe what Anfi say, that they are not losing any court cases?

Now on with this week’s Letter from America

Our DRI Misadventures

Chapter Four: Miami Vise

miami

By David Franks

August 11, 2017

For background, you might wish to read the first three chapters:

Chapter 1: Vegas, Baby! — http://insidetimeshare.com/fridays-letter-america-5/

Chapter 2: Missouri Loves Company — http://insidetimeshare.com/fridays-letter-america-10/

Chapter 3: Stand Back. These People are Professionals  —http://insidetimeshare.com/fridays-letter-america-12/

(You might not. The annoyance is epical.)

April 2016 arrived. Never mind the showers; my lovely wife and I were going on a Diamond Resorts International Dream Holiday to Miami, Florida and the western Caribbean!

We started the adventure on Tuesday, April 5. I shall note at the outset that it was road and bridge construction, not DRI that turned the drive to the airport into a slightly mobile parking lot.  XNA in Bentonville, Arkansas is a lovely little airport.  It is expensive to fly in and out of XNA, but the cost was covered in the Dream Vacation package.  Score two for DRI.  Keeping their intervention to a minimum works wonders.

We arrived in Miami without incident, unless changing planes at the Houston airport is an incident. We made our way to the Penguin Hotel in Miami Beach, a nice old place on Ocean Drive in the historic South Beach Art Deco District. We had selected the hotel because of its age, and because it was possible (though not easy – see Chapter Three) to get an ocean-view room.

We arrived at the hotel to find that we did not have a room there. Somebody from DRI had decided to “upgrade” us to a brand-new room in the President Villa, a newly-remodeled building. We talked to a couple of hotel managers, met a couple more concierges, and confirmed that our reservation for an ocean-view room was in underlined capital letters in their reservation book.  Having been made aware of their faux pas, the helpful DRI people attempted to mollify us with a $100 certificate for dinner at a rather nice little bistro (double the regular value of $50). We were not mollified, but we accepted the certificate.

Unfortunately, we would not be able to have the favor of their “upgrade” corrected immediately, as there were no rooms available in the Penguin until the next day. So, guided by a helpful DRI minion, we excursed from the Penguin along a dismal alley route to the President Villa, a former office building next to the President Hotel on Collins Avenue. The conversion to residential use was not impressive. Our room was so awkwardly designed as to be uncomfortable; the bathroom would not have been even adequate for a modern resort guest. The ocean view I had struggled to get was of course not available, and the slight smell of fresh paint was no compensation. When we compared the President Villa to the Crescent Resort – and even to the dinged-up but charming Penguin – we felt that we were being treated as second-class guests.

On the other hand, the President Villa – despite its lack of accoutrements consistent with a nice hotel – did offer, under the same roof, exotic car rentals and the services of a psychic/fortuneteller.

gypsy

While we were unable to see the ocean, we were able to see from our window an endless stream of people taking selfies standing next to or sitting in Ferraris and Lamborghinis, presumably with permission.  We declined the opportunity to have a tarot reading, as we already suspected that our future with DRI was not becoming less bleak.

We trundled back over to the Penguin the next morning and took possession of our ocean-view room in time to attend a luncheon provided by DRI prior to a mandatory “buyer update” meeting that afternoon.  The luncheon, set up in the lobby of the Penguin, was actually rather pleasant (DRI managed to not interfere), and we met a few Diamond Resorts members who made a good show of not seeming like victims.

We eight or so members then went next door to the Crescent Resort and up to the penthouse, where over the course of a couple of hours we were told a couple of things that started out interesting but have since turned out to not be true: that, as Gold and Platinum members, we would be receiving a tablet computer preloaded with DRI-related software, which would enhance our owner experience; and that DRI was looking at adjusting maintenance fees based on actual resort usage, which would reduce some members’ fees (“Like ours?” I asked. “Like yours,” they said) because there’s no need to pay so much to maintain facilities one doesn’t use. Oddly enough, they didn’t try to get us to buy more membership, but they did make us stand around on the roof deck for quite some time for no apparent reason.  Particularly given the lack of veracity of the “buyer update”, we would have been better off using the afternoon thus occupied for sightseeing instead.

[Note from Irene: Maybe they read Chapters 1, 2 and 3?]

Our only interaction with a DRI concierge as such was an attempt to find the nearest Walgreens where we could get a prescription filled. He didn’t know, and he guessed wrong.

We had a good time during the remainder of our stay in Miami Beach. We had a nice bus tour, visited Calle Ocho, and enjoyed the meal at the bistro, which ended up costing a little over $100. The Penguin is a perfectly good hotel if your expectations are in line with what an old hotel has to offer. The room was fine – its ocean view was just as good as from a newer hotel – and its cafe provided a good breakfast. As it turned out, we were not charged for the upgrade to an ocean-view room. I hope the Penguin didn’t end up eating a loss caused by DRI’s interference.

group

Important points this week:

  • Although I will not attribute the change in our room reservation to malice or perversity (but what’s left?), I will note that I had explained at some length our interest in the Penguin as a historic hotel as well as our interest in an ocean-view room to everybody I talked to, and our reservation had been emphatically logged.  Calling the change an “upgrade” was a little perverse, however.
  • The Crescent Resort is a DRI property. The Penguin Hotel and the President Hotel are “Club Affiliated” properties.  DRI does not mention the President Villa at all; apparently they prefer to surprise unsuspecting guests with it.
  • Renovation tip: never hire DRI to oversee or approve of a building makeover.
  • Except for the meddling in Miami – which was the only real opportunity DRI had to screw things up –  the Dream Holiday, once underway, went well, despite the fact that it involved a seven-day Carnival cruise (which, apparently amazingly, came with an ocean-view stateroom).  My lovely wife and I thought the Dream Holiday was a good value at 7,500 points, and we saw no need for DRI to misrepresent the potential retail value of the hotel room.
  • Subsequent mentions of the tablet computers and the purported maintenance-fee adjustment to DRI customer service indicated that DRI had never discussed them with the front people at all.  Upon escalating the issues, it turned out that the tablets were supposedly an inducement for brand-new members, rather than an amenity for existing members.  One of the people I talked to said it sounded like I should get a tablet, and he would check into the matter and get back to me. (He never did.)  Based on several reactions at escalated levels of customer service, the supposed maintenance-fee adjustment was a total fabrication.
  • More concierges!  (DRI seems to be a tad lenient in bestowing the title of “concierge”, if my understanding of the office is correct.)

plane

Well, there you have it. David Franks, our intrepid travel writer, is safely back home no doubt planning his next Diamond adventure. Contact Inside Timeshare if you would like to share your Airbnb, Diamond, Bluegreen or Wyndham travel experiences. Canadian postings tell us Diamond is allowing some users to use their Diamond points to book AirBnb. As they say, if you can’t lick them, join them. More on that as we investigate further.

Contact Inside Timeshare or Diamond and Bluegreen member supported Facebooks if you would like to become an Inside Timeshare contributor.

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

This Bluegreen Facebook page of 1,670 members, Sales Team Reviews & Update/Sales Presentation Experience, is for the benefit of the members, corporate Bluegreen personnel and sales agents working towards a more honest and transparent sales process.

https://www.facebook.com/groups/1718664518412381/

This Bluegreen Facebook page seems to be a sort of self-help Facebook for members helping members.

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

So there it is, the end to another week, Inside Timeshare again thanks all contributors to the articles, we also thank those who have sent in details on their dealings with some of the companies that have featured. Without that information it would be difficult to give you the facts.

Have a great weekend and join us again next week for more news and truthful facts on the murky world of timeshare.

weekend02

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, this week Eron Grant submits her open letter to ARDA (American Resorts Development Association), for those in Europe that is the RDO. She explains her experience at the hands of a sales agent and asks why does ARDA have a code of ethics if these agents and resorts ignore it? Very good point, the same can be said of the RDO.

First a roundup of this week. For August it has been quite a full week for Inside Timeshare considering that the courts are closed so no news on that front. We began with the ongoing story of the fake law firms in operating out of Tenerife, yes, that family called Litigious Abogados, bit of a sorry story this one.

Unfortunately, the gentleman in question didn’t find our previous story in time, he was totally taken in by the documents and smooth legal talking of this crowd. It began with the usual pitch, that his timeshare company had a case against them ready to go to court and he could be part of it. He duly paid the initial Procurador fees, then a few weeks later he got the great news that he won the case and the court had awarded him thousands in compensation, brilliant!

Now it was only a matter of paying 20% of the award to the tax man to release the money, this done he was told his cheque was on the way. The envelope arrived with the court papers, but no cheque, the envelope had been opened and the cheque missing. After contacting the “Law Firm”, another company contacted him saying the court had appointed them to investigate and get his money back, apparently this Romanian gang had stolen the cheque and cashed it. Don’t worry, we will get the money back from the bank. First you have to pay us 10% of the amount.

Compensation_Cheque-page-001

Then in what can only be described as a further insult to injury, he was told he owed the property tax on a property he owned in Spain, his NIE Number had expired plus he had outstanding fines for a traffic offence. But we can sort this out for you and get the money released, for a fee.

This has lost him thousands of pounds and has caused him great stress. So beware, it may sound good and look genuine, but it rarely is.

On Tuesday, we published the ongoing story of Tauro Beach, the flagship project from Anfi, this time it was a couple of independent research journalists, Anders Lundqvist and Rowan Bauer. In their article, published in the UK paper The Guardian, they investigated the importation of the sand for this man made beach, brought in from the Western Sahara in breach of UN sanctions and European Court of Justice rulings.

This investigation is still underway by various authorities, the main one being SEPRONA, the Nature Protection Service of the Guardia Civil.

Wednesdays article was from Irene Parker on the Welk Resorts case against Timeshare Exit Team. It highlights the dire need for a proper secondary market and a fair exit strategy for those who do not wish to sell.

In this article we opened with news that the TATOC Help Line had closed, we also published a link to a very good in depth report on the importation of sand from Western Sahara and a little of the history from that region. This was written by Ed Timon Editor of The Canary News, an english language newspaper in Gran Canaria.

Yesterdays article was entitled, Loyalty: No Such Thing in Timeshare, in this piece we showed that even old friends will attack each other for your money in this business. It told the story of a company owned by an ex manager of another company, who is now in the business of supposedly claiming compensation against his old employers. Unfortunately, his history and publicity is not as squeaky clean as he would like you to believe, we leave that to your judgement.

So on with this week’s letter.

Why does ARDA have a Code of Ethics?

Woman what

Members are beginning to wonder

ARDA’s Answer from ARDA’s website

ARDA and its members are committed to the highest standards and ethical behavior in vacation ownership. To demonstrate that commitment, all ARDA members as a condition of membership must agree to comply with the ARDA Code of Ethics.

The intent is that all member activities subject to the Code are designed to be honest and fair, and are conducted with integrity, dignity and propriety.

By Eron Grant

August 4, 2017

Part I – My letter to ARDA

Part II – ARDA’s Code of Ethics

Part III – List of Inside Timeshare member articles that question the Code

Mr. Clements, General Counsel and Lobbyist for ARDA,

My husband and I feel we have been deceived by Diamond Resorts International, and ask for your assistance in getting justice for our victimization.

In November of 2016 we stayed in one of DRI’s timeshare resorts in Sedona, AZ through our Interval International membership. While there we attended a DRI sales presentation. The hotel concierge gave our family of 4 a $150 gift card to a local restaurant for our thanksgiving meal, and in return we were to attend a 90-minute sales presentation. The presentation ended up lasting 6 hours, with our sales agent becoming agitated when we said we needed to leave due to my husband’s golf tee time. This violates ARDA’s Code of Ethics of “Information”.

The sales agent, Karen Calvano, empathized with us about our inability to stay in resorts unless located close to home which is in Houston, TX. She said she knew Interval International did not have many resorts in our area, but that DRI had many resorts, and we would certainly be able to find resorts in Texas, New Mexico, and Louisiana. As it turned out, DRI’s resorts in our area are owned by affiliate resorts rather than DRI and costs approximately more points than we were sold. This violates ARDA’s “Exchange Program” in which we were over promised on the likelihood to exchange for Diamond’s inventory in our area.

When I looked on the Diamond member website recently, Diamond’s Great Wolf Lodge affiliate property in Texas was available for 26,911 to 66,467 points. If we multiply 26,911 by 20 cents which is the typical cost of maintenance fees, it would cost $5,382 for a one week stay. Booking.com had the same Family Suite available for the same week for $1,700. This is not an unusual scenario. I have searched various times throughout the year.

We attended DRI’s “Event of a Lifetime” in January, 2017 which we were told was our member orientation. The “orientation” turned into a high pressure sales presentation quickly with misleading information regarding redeeming our points for 30 cents per point if we paid to upgrade our membership to platinum. When my husband, Dr. Mark Grant, asked to see the price per point in writing, the sales agent pointed to his own written notes to show us that it was legitimate. My husband pointed out the documented literature which showed the amount at 10 cents per point, and the salesman quickly dismissed us to the next sales agent.

According to the ARDA Code of Ethics, this sales agent violated the ethics standard of “Avoidance of False and Deceptive Statements”.

Mr. Clements, as you can tell from the brief account I have written, we are in a rough situation with devious minded people who have not followed ARDA’s Code of Ethics, and should therefore be forced to let us out of our contractual agreement.

We appreciate your consideration, and assistance!

Sincerely,

Eron Grant

Response from Diamond

I am responding to your concerns regarding availability in Texas and Louisiana. While Diamond Resorts does not own or manage any properties in these states, we do have affiliate agreements with several resorts. These properties offer us limited inventory each year to offer to our members to book with their points. Inventory is typically limited, and prices are set by the properties themselves, and not by Diamond Resorts. These properties are offered on a first come, first served basis in addition to the Diamond Resorts properties covered under your contract.

Diamond Resorts does offer a property in New Mexico, the Villas de Santa Fe. If you would like assistance booking at this property, please let me know and I will be happy to assist.

My Response

My concerns with Karen Calvano stating “DRI has several resorts in TX, LA, and NM” is that when we asked her to show us the properties she said, “Oh we can’t do that right now, but we can do that later.” After 6 hours of being with her, we were exhausted and never did see the properties.

We explained that we are owners with Marriott and members of Interval International already, so affiliate properties through DRI really don’t help us. Plus, the value of your affiliate properties is ridiculous. How does this help us?

questman1

I would like for Mr. Clements or someone at Diamond to explain to me why this does not meet the definition of White Collar Crime: Deceit, concealment, violation of trust and bait and switch. In my opinion, there is no doubt what we were offered and what we received meets this definition and violates ARDA’s Code of Ethics.  

Ethics Code of the American Resort Development Association

adopted by the Board of Directors April 7, 2014

  1. General Ethics Standards.  
  1. Disclosure.

With respect to the sale, resale or marketing of a Vacation Interest, the Member shall:

  1. Provide fair, meaningful and effective disclosure to the consumer regarding the Vacation Interest and all material terms and conditions of the offer of a Vacation Interest.
  2. Provide fair, meaningful and effective disclosure to the consumer of all material terms and conditions of all other products offered contemporaneously with the Vacation Interest, including exchange programs, incidental benefits, financing, short-term products and exit programs.

The Full Code: http://www.arda.org/ethics/

audience

Note from Irene Parker

Inside Timeshare has received complaints from many angry timeshare members, including Bluegreen members. Here are just a few of the many members who have contacted Inside Timeshare wanting their voices heard.

This is our DRI Advocacy Facebook page which respectable sales agents and corporate personnel are allowed to join. We hope the folks at Diamond, Bluegreen and ARDA will take the time to read member stories. We promise you will learn a lot.

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

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

Member articles

Michael Nuwer and Justin Morgan

http://insidetimeshare.com/fridays-letter-australia-no-read-correctly/

Alan and Debbie Callner

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

Detective Lela Renea a Bluegreen member

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

David Franks Chapter 2 (Chapter 4 upcoming)

http://insidetimeshare.com/fridays-letter-america-10/

Karen Garello Secret Shopper June 22, 2017

http://insidetimeshare.com/works-industries-not-timeshare/

Romeo and Lily

http://insidetimeshare.com/fridays-letter-america-9/

Dr. Jeffries

http://insidetimeshare.com/fridays-letter-america-7/

Angela Johnson

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

Neina Orrillo

http://insidetimeshare.com/diamond-in-the-news-again/

Barclaycard and Member stories May 17 2917

http://insidetimeshare.com/timeshare-barlcaycard-us/

Marjorie Menacker

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

Eron Grant May 12, 2017

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

Nancy Callahan April 24, 2017

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

Betty Burmeister and a Filipino Family April 13, 2017

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

Laurie Sabbagh Secret Shopper March 17, 2017 Clarity Review

http://insidetimeshare.com/friday-review-news-across-ocean/

A Military Family March 6, 2017

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

The Hurleys January 25, 2017

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

Irina Allen January 13, 2017

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

Kathie Old December 6, 2016

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

Wyndham Trish Williams $20 Million Whistleblower Jury Award December 5, 2017

http://insidetimeshare.com/wyndham-whistleblower-update/

The Peasant of Venice and the Queen of Versailles November 7, 2017

http://insidetimeshare.com/peasant-venice-queen-versailles/

Sylvia Saldana and the Barclaycard October 25, 2016

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

right wrong

Thank you Eron Grant and Irene for this weeks contribution, these are your stories, they are published so you know what is going on in this murky world called timeshare. If you have a story you would like to share or have any comments Inside Timeshare would love to hear from you.

If you have any questions or even need to know if you are dealing with a possible “scam” company, get in touch with us. Even if we don’t know the answer straight away we know where to look and can point you in the right direction. Remember it is better to be safe than sorry, doing your homework is essential, even more so in today’s timeshare world.

So it only leaves us to say, it’s Friday, have great weekend.

fridaycat

letter from canada

Friday’s Letter From Canada

Welcome to the first Friday’s Letter From Canada, Inside Timeshare is pleased to give a warm welcome to Club Intrawest Owners Group who have contributed this week’s article. As Usual we start off by looking at the European timeshare scene.

At the moment, which is nothing unusual for this time of year as it is rather quiet, that will change after the summer holidays when the maintenance bills start to arrive. That is when we start to see a lot of new or resurrected bogus companies start to appear.

bogus clipart

On the legal front, the courts in Spain have been very busy, with an almost daily announcement of cases being resolved. At the moment there seem to be two companies in the firing line, Anfi in Gran Canaria and Resort Properties / Silverpoint in Tenerife.

Anfi, which was the dream project of the late Norwegian Bjorn Lyng, who wanted to build a resort which was pure luxury, has for some time been on the receiving end of many claims for breaches of the timeshare law.

Many of these, involve the taking of deposits within the statutory 14 day cooling off period, contracts with a duration of more than 50 years and the floating weeks and points systems.

This week the Court of First Instance in Maspalomas has ruled on two case to the value of 44,131€ and 35,485€ respectively. In both cases the contracts have been declared null & void.

Resort Properties / Silverpoint have also had several rulings against them this week.

The first was at the Court of First Instance in Arona Tenerife, the judge ordered the return of £22,736, this was followed by a Supreme Court ruling with the judge ordering the return of 37,400€.

Tenerife

We then had another Court of First Instance ruling of around 25.000€ and as we go to print our sources in Madrid have informed us of another 3 rulings by the Supreme Court. At the moment we have no idea of the amounts involved, but we do know that all contracts have been declared null & void.

On the fake law firm front, one gentleman has had lucky escape, he received correspondence from Armando Gareca Abogados, part of the Litigious Abogados family, who we highlighted sometime ago. He received notification to pay the initial procurador fees to get the case into court, but something made him suspicious. He did a search on the internet and found the articles posted on this website about them.

Needless to say he realised he was about to be the victim of an elaborate scam and has not gone ahead. He sent a message of thanks as this has saved him not only a substantial amount of money, but a lot of stress. This does go to show that you must do your homework before engaging with any company, especially if they have contacted you with a story that sounds too good to be true.

homework

Tauro Beach

The Anfi man made beach project.

It has been awhile since we had any news on this sorry subject, so here is the latest.

As we previously reported the beach has been fenced off denying access to the public, with security guards and police removing anyone who entered the beach. Although recently massive crowds have flocked to the area in defiance, a new strategy has now been implemented.

This new move has also had the impact of denying access to the homes of people who live there, all paths and access roads have now been blocked with rocks and other implements. Videos and photographs have been posted on facebook by one resident who has been campaigning against this project from the start and also published in laprovincia a Spanish newspaper.

This is another example of how a timeshare company behaves, not just to it’s own members but to the local community. It is also an example of how elected authorities view the people they are supposed to serve. Please show your support for the people and post your comments on the links.

Follow the links to view the posts from this local resident and the La Provincia newspaper.

http://www.laprovincia.es/gran-canaria/2017/07/20/grupo-anfi-cierra-acceso-playa/961620.html

https://www.facebook.com/naiana.rguezllavata/posts/1491927374183912

https://www.facebook.com/naiana.rguezllavata/posts/1492232357486747

Now on with our latest contributors.

Club Intrawest v. Canada

Club Intrawest (Embarc)Timeshare

Must Pay Millions in GST Back Taxes

Following Recent Federal Court of Appeal Decision

gavel

July 21, 2017

On July 11, 2017, In a decision that will likely affect all timeshares and owners of timeshares with properties located in Canada, the Federal Court of Appeal set aside the Tax Court of Canada’s decision in the case of Club Intrawest v. Canada. In doing so, the Court of Appeal substituted its own decision to refer GST assessments back to Canada Revenue Agency for reassessment of GST just for services supplied in Canada in relation to vacation homes situated in Canada.  Federal Appeal Court Judges Nadon, Gauthier and Dawson agreed with the Tax Court’s finding that a principal-agent relationship does not exist between the club and its 22,000 members. This decision also confirms that members of Club Intrawest (now re-branded Embarc by Diamond Resorts International (DRI)) do not hold beneficial ownership in the real estate and equipment in vacation home resorts and do not control the Club.  The Court found that members merely own a right of occupancy in exchange for their resort points. This contradicts sales presentations, financial and marketing materials by Intrawest Corporation (“Intrawest”) and now DRI, to the effect that members have beneficial ownership of vacation homes and control the Club through election of the Board of Directors, responsible for managing the Club’s operations.  The ruling will require the club to pay reassessed GST back-taxes for tax years 2002-2007. The GST/HST tax liability for tax years 2008-2016 is unknown at this time.  All timeshare owners with vacation homes in Canada may be impacted by this decision and may also see themselves assessed for back taxes on the supply of services in Canada related to vacation homes situated in Canada.

“Based on a detailed survey answered by more than 400 members, I expect that the majority of our members will be shocked and disappointed that the court found that members have no beneficial ownership in the vacation homes.  About 79% of them remember being told by Intrawest and DRI sales representatives they would own a real estate interest in the resort properties. About 91% of members also remember they were explicitly told that members controlled the Club and that resort properties were vested in a trust for the benefit of members. The Federal Court of Appeal now tells us that no evidence was produced that ownership of these homes has been vested in a trust for the benefit of members”, says Patrick Cormier, Volunteers Team Leader of the Club Intrawest Owners Group (Embarc), (CIOG) a grassroots movement of over 3400 members.  “However, it seems clear that the Intrawest/DRI-dominated Board of Directors anticipated the GST liability all along since it began accumulating a C$14 million reserve from members’ resort fees under a 2011 Board resolution without informing members until the CIOG raised the GST issue with the Board in 2016”.

Club Intrawest was established by Intrawest Corporation in 1993 as a stand-alone not-for-profit Delaware corporation, but with Intrawest in a controlling position. Intrawest ensured they had control of the Club in several ways, including by granting themselves (as “Declarant” member) a 15 times voting power advantage over individual members guaranteeing Intrawest and now DRI, ongoing and complete control over all aspects of the Club.  In addition, Intrawest and now DRI voted in their own employees on the Club’s Board of Directors to maintain a controlling majority on the Board, hired themselves as manager and pay themselves a guaranteed 10 to 15 per cent management fee on all financial transactions.  Club Intrawest (Embarc) members have no control of the club or effective means for recourse, even though members, other than DRI, own 95 per cent of the timeshare points.

About the Club Intrawest Owners Group (Embarc), (CIOG)

The CIOG is a grassroots movement of over 3400 members who are banding together seeking fairness and transparency in their Club’s operation for all 22,000 members.  The CIOG is disputing and challenging unfair actions of Intrawest Corporation, Diamond Resorts International and their domination of the Club’s Board of Directors and Management Company. The CIOG came together as a volunteer group in December 2015, following Intrawest’s announcement of the sale (without member input) of Club Intrawest’s management to DRI. Following the sale, DRI rebranded the club to Embarc and fully controls the not-for-profit timeshare.  For more about the group, visit

www.citheownersgroup.org.

Judgment of Federal Court of Appeal:  see link

http://decisions.fca-caf.gc.ca/fca-caf/decisions/en/item/232795/index.do

canadian flag

Clearly this is an evolving story. Inside Timeshare will continue to monitor and report ongoing developments.

Other member sponsored Diamond Advocacy groups include:

DRIP launched by over 1,000 British Diamond members

http://drip.enjin.com/

Diamond Resorts Owners Advocacy Group and because timeshare concerns are bigger than any one resort Timeshare Advocacy Group ™

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

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

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

Some of the points in this article regarding the judges decisions are very similar to those from the Supreme Court in Spain. Especially on the system of “points”. The Spanish Courts also agree that they are not owners but members with only a right to use, it makes us wonder if the Spanish rulings may have had an effect on this?

Anyway thank you to our Canadian cousins or should we say “Canucks”, we look forward to more contributions from you. Also a great big thanks to Irene who is helping to make this happen. It is through articles like this we make the world smaller and help timeshare owners no matter where they are. So welcome to the global timeshare family from, The Philippines, Australia, USA and Europe. We now need some from South Africa!

Have a good weekend and don’t forget to do your your homework!

weekend cat

timeshare-rentals-by-owner-287

Monday, The Start to Another Week.

We finished last week with the announcement of 6 sentences from the courts against Anfi, we start this week with news just in from our contact in Madrid. We also start this week with an article from Irina Allen, who has featured before. But first the Judgement.

The Supreme Court has made yet another ruling against Resort Properties / Silverpoint. In this ruling the court has awarded a british client a substantial amount, reportedly around £32,000. At the moment we are not sure what the ruling was comprised of, but going by previous ones it will probably be for the perpetuity contract. When the sentence document becomes available we will publish it here.

So we wonder what is in store for the rest of the week, now on to Irina’s article.

Diamond Resorts Suspended my Account worth over $500,000

For posting one RedWeek rental ad as my sales agent advised

ethics

By Irina Allen

July 17, 2017

Inside Timeshare first published my Diamond Resorts story January 2017 after Diamond suspended my 139,000 points, falsely accusing me of renting points for commercial purposes.

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

I was expected to make monthly mortgage payments of $2400 a month and pay $29,000 in maintenance fees during the one year suspension. Diamond is able to rent my points for promotional purposes during the suspension period.

Ironically, I replaced the points I had promised to friends and family by renting points on RedWeek. I also lost thousands of dollars on airfares that had already been booked as my account was suspended without warning. I am not the only member hurt by Diamond’s change in rental policy.

I was accused of opening an Airbnb account. I have never had an Airbnb account, but Diamond Resorts told me they were not required to provide any proof despite my common last name. My attorneys are working with Airbnb to prove I never had an Airbnb account. I have given Airbnb permission to share my story with their international news community.

I don’t want to get bogged down in details so suffice to estimate I paid $5 per point for my vacation points and with closing costs the figure is closer to $6 per point. According to our Facebook posts, a Diamond point sells for about $4 a point so I also feel I overpaid. At 139,000 points we are talking about a serious amount of money – over $500,000.

After contacting an attorney and filing complaints with the FTC, CFPB, AGs and the Real Estate Departments of AZ, HI, NV and CA, I found our Diamond member sponsored Advocacy Facebook. At least this provided some support as all the regulatory agencies ignored my complaint.

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

Alarmed that others could be victimized, I became an administrator for Timeshare Advocacy Group ™, hoping timeshare owners and members from other timeshare companies will reach out to us when facing problems or have concerns about their timeshare membership. I have learned Diamond Resorts is not the only timeshare company exhibiting what I feel is predatory behavior.

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

It is unfathomable any corporation could exhibit such blatant disregard for a customer. My situation is very bizarre. In addition to a suspension, I experienced a 17% increase in maintenance fees while the actual increase was only 6%. I only found out about this by reading a post on our Advocacy Facebook page. Diamond automatically corrected their “error” (only for 2017) after receiving correspondence from my attorneys.

Many do not even believe me. I am grateful to Senior Correspondent Jeff Weir of RedWeek for the two hours he spent interviewing me, even though he initially decided not to publish our interview. After Inside Timeshare sent a draft of this article to RedWeek, Mr. Weir requested a copy from my editor Irene Parker indicating he would publish our interview.

One can find hundreds of Diamond rental ads on several commercial websites. I do not know why I was targeted for placing one ad without providing any evidence of commercial use. I am a professional. I bought Diamond points to share with my friends, family and clients.

Here is the current Diamond rule:

2.5.1 A Member is not prohibited from periodically renting the Accommodation reserved for the Use Period or the reserved Other Redemption Opportunity pursuant to these Club Rules.

However, the use of Points to reserve Accommodations or Other Redemption Opportunities for commercial purposes or for any other purpose other than the personal use of the Member or the Member’s family and guests is prohibited.

Use by a Member of public advertising or an online website to seek renters shall be deemed a prohibited commercial use.

Members who are primary developers of Club Resorts (that is, members of the Diamond Resorts International group of companies) and providers of Other Redemption Opportunities are specifically exempted from this restriction, and are entitled to use their reserved Accommodations and reserved Other Redemption Opportunities for promotional, rental, or other commercial purposes.

Here are a few of the Diamond rental ads on the RedWeek online website. Not only are there hundreds of ads, but many of them are for prices greatly above maintenance fees and could therefore be considered “for profit”.

Timeshare Rentals – Timeshares for Rent By Owner | RedWeek

https://www.redweek.com/timeshare-rentals

Diamond Resorts International

Kaanapali Beach Club

Lahaina, Hawaii

stars 51 reviews

255 rentals available

$132 – $500 /night

12 resales available

$600 – $15,000

Daytona Beach Regency

Daytona Beach, Florida

stars 7 reviews

I don’t expect Ebay, VRBO or other non-informational platforms to post a warning. However, RedWeek is an informational resource for vacation timeshare members and owners. I feel RedWeek should post a warning that Diamond Resorts does not allow rentals given the consequences can spell financial disaster.

Diamond’s policy is clear. Either there is a rental policy or there is not a policy. With the consequences of violating the policy so severe, why does RedWeek not post a warning? More importantly, why does Diamond not allow members, many struggling to pay maintenance fees, to post rental ads on RedWeek?

“RedWeek advises members to check with the resort before renting,” stated Gary Prado, spokesperson for RedWeek.

Why would anyone check with Diamond Resorts before renting, especially those who had been renting for years, and why would anyone check if there are hundreds, if not thousands, of rental ads all over the internet?

I opened a RedWeek account on the advice of a Diamond Hawaii sales agent and attempted to rent some points. I had not even heard of RedWeek until the sales agent recommended the site based on her personal experience. She said many Diamond employees rent on RedWeek to offset maintenance fees. I was never paid for the RedWeek rental so I gave up the idea of renting.

I am one of 18 Platinum members who have contacted Timeshare Advocacy Group ™ alleging deceptive and bait and switch up-sells. Like the others, I accumulated 139,000 Diamond vacation points due to aggressive selling. I agreed to take over 42,000 Diamond points from the secondary market on one condition – I do not have to buy any additional points. As the Diamond agents promised, “due to my Platinum status, owning at the time 75,000 points, I would be allowed, as a onetime courtesy, to transfer contracts without being required to purchase additional points.” In 2013 this was a common practice.

Diamond refused to honor their promise after the transfer. I was told I had to buy 23,000 points in order to use the transferred points without the secondary market restrictions. I could not use the points due to layers of restrictions Diamond places on the use of secondary points. Diamond is the only major timeshare that cannot be listed with any of the 64 members of the Licensed Timeshare Resale Broker Association as the members feel Diamond’s secondary market restriction are more onerous than Diamond’s major competitors.

http://www.licensedtimeshareresalebrokers.org/

group

Speaking with other families affected by the sudden change in Diamond’s rental policy, I asked:

  1. Are you not allowed to rent or has DRI just made it more difficult?

They have made it very difficult because we can’t advertise.  They also tried to ban us from using upgrades for rental weeks (making it harder to rent for more than cost) and they also started charging a fee to add guests.

Diamond maintains that they have the right to change the rules.

This is the crux of the matter. Would you buy a timeshare if you knew the timeshare developer could change the rules pretty much at any time for any reason?

Diamond stands to make a huge financial gain by forcing owners who relied on rental strategies into foreclosure. This is financially devastating for families because they are required to pay maintenance fees they can no longer afford for the high volume of points these members own. Diamond then “takes back” the points and resells for full value.

muscle

If you or someone you know has a timeshare concern, contact Inside Timeshare or one of our Advocacy Groups.

Bit of a horrendous story, doing only what she was advised, how many times have we heard this type of thing from sales agents? You believe them because you trust them, they sound so genuine, then bingo! You are the one to be made out to be in the wrong. So thanks Irina for that little insight, we look forward to your next article.

Timeshare needs to change, it is not the product most of us thought we were purchasing, the truth is hidden, is any wonder that timeshare has a bad name and reputation?

If you would like to share any of your experiences contact Inside Timeshare and we will work with you.

Have you been contacted or thinking about contacting a company about your timeshare, but don’t know if they are genuine? Then send us an email or comment and we will point you in the right direction, remember it is better to spend time checking than even longer regretting!

 

letter from australia

Friday’s Letter from Australia (No, you have read that correctly)

Welcome to Friday’s Letter from (America) now Australia, this is just to confuse our American cousins, the reason is that we welcome our first Antipodean cousin to our pages. Justin Morgan, makes his debut with his first contribution to Inside Timeshare. It is ironic that it happens to be on the first anniversary of Irene Parker’s very first article, which was about the acquisition by Apollo of Diamond.

Since her first article, Irene has been a major contributor and very much a driving force in bringing the problems of owners in the US to the fore. She has also become a very valued friend not just to myself but to all those she met while visiting Gran Canaria.

But enough of that, how about some news of timeshare in Europe?

Diamond Resorts has had a battering in the courts in Tenerife, Canarian Legal Alliance has secured a victory for one of their clients with the High Court declaring their contract null & void, with the return of over 29,000€ plus legal interest. In this case the court stated that the contract did not contain specified information required by law, with the product being the points system which the Supreme Court has deemed illegal due to their lack of tangibility.

This is the fourth verdict delivered against Diamond by the Tenerife courts this year, which our sources indicate is just the tip of the iceberg!

justice2

Anfi, based in Gran Canaria is on the defensive, it would seem they are already sending out new contracts after the vote last Friday 23 June, which coincided with another defeat at the High Court in Las Palmas. In that case the court declared the contract null & void as it was for more than 50 years.

As this is being written, the news has just arrived from our contact at the Court of First Instance in Maspalomas, that another contract has been declared null & void, with the client being awarded over 35,000€ plus legal interest.

At the same court yesterday Palm Oasis / Tasolan, were ordered to repay over 31,000€ and declaring the contract null & void. In this case the court ruled against the points system, which it deemed as selling nothing but promises.

On the Tauro Beach project, which has been the subject of many articles, it seems that the beach is still closed to the public, although many people are ignoring the fences and entering the area. There still seems to be no indication when this area will be fully open to the public, it may not be for sometime yet as there are several court cases pending.

So now on to this weeks article.

Who is Apollo? What is Apollo?

Two Diamond Member Consumer Advocates offer their opinion

Up Down

By Michael Nuwer and Justin Morgan

Introduction by Irene Parker

June 30, 2017

In honor of my one year anniversary writing for Inside Timeshare, it is only fitting to revisit Apollo Global Management’s acquisition of Diamond Resorts as Apollo’s Diamond acquisition was the subject of my inaugural article June 30, 2016.

http://insidetimeshare.com/700-2/

I had been shouting my timeshare concerns from the rooftops since my husband I attended a pathetically aggressive sales presentation July 2015 at Diamond’s Grand Beach Resort, which ultimately led to our appearance on the FOX News show Property Man, interviewed by Las Vegas attorney Bob Massi.

http://insidetimeshare.com/peasant-venice-queen-versailles/

The first I heard from Diamond was a year later in reaction to my Apollo article written for Jim Cramer of CNBC’s Mad Money’s investment news service, TheStreet. Diamond contacted TheStreet demanding a rebuttal. Diamond members are still waiting for Transitions, a relinquishment program that must still be in development.

http://www.thestreet.com/story/13624491/1/is-apollo-returning-to-its-junk-roots-with-its-acquisition-of-diamond-resorts.html

Diamond boasted 11 quarters of robust earnings growth until shortly after the Apollo acquisition announcement. A delayed 2016 second quarter earnings report was attributed to accounting irregularities.

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

According to a May 2017 KROLL Bond Report, Diamond’s default rates remain elevated.

The collateral pool of DROT 2014 – 1 has experienced elevated levels of defaults, which similar to certain other vacation ownership companies in the industry, Diamond Resorts attributes to an increase in the number of borrowers who have been solicited by lawyers to get out of their timeshare and/or have sent Diamond Resorts “cease and desist” letters.  

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

A National Mortgage News article appeared indicating the interest rate on the Apollo acquisition was raised due in part to the earnings restatement. Earnings had to be restated back to 2014 resulting in an earnings decline from the prior earnings report. Since the merger was announced as an all cash $2.2 billion deal, I did not understand the comment about the raised interest rate.

advocate 1

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

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

Timeshare Advocate Michael Nuwer explains. I now understand what it meant when Diamond owners were informed Diamond is owned “by an affiliate of an affiliate of funds.” It’s pretty high finance.

Apollo Global’s acquisition of Diamond Resorts was organized as a “leveraged buyout”.  Here’s how the deal worked:

Apollo created a shell company called Dakota Parent. Four of Apollo’s investment funds own this company. Dakota Parent created a wholly owned subsidiary called Dakota Sub. Dakota Sub borrowed $2.2 billion dollars (a big chunk of it, $1.1 billion, from the four Apollo funds) and bought 100% of the DRI shares — 72.7 million shares at $30.25 each. Then DRI merged into Dakota Sub, changed the company name to Diamond Resorts International, and thereby took on all Dakota Sub’s debt. This is the way leveraged buyouts typically work. Former Diamond CEO Cloobeck used the same structure when he bought Sunterra in 2007.

Now that all is said and done, DRI is a wholly owned subsidiary of Dakota Parent. The equity in Dakota Parent is owned by the four Apollo funds. Diamond has $2.2 billion debt on which it must make interest payments. The primary lenders are the four Apollo funds. They are in for $1.1 billion, $500,000,000 at 7.75% and $600,000,000 at 10.75%. The secondary lenders are in for $800 million, and another $200 million is secured by some DRI assets (I think they are consumer loans).

There are two ways Apollo makes money on this deal assuming all goes well. First, the four Apollo investment funds receive interest income out of DRI’s cash flow. They are guaranteed $103,250,000 per year. High profits or low profits, it doesn’t matter, Apollo gets paid. Further, the Apollo investment funds own a claim to all the equity growth of the company (that is all value over $2.2 billion). Thus, if they can sell the 72.7 million shares for $45 each, not an unreasonable number if all goes well, Apollo’s capital gain will be about $1 billion.

Aussie Flag

From Justin Morgan Australia

As a tax accountant, finance planner, part time private equity guy, I completely agree that the Apollo deal will only end in debt being laid upon Diamond members, for the benefit of those who arranged the details of a LBO merger that, when combined with the liabilities of the timeshare structure that utilized Association Board powers and targets them, it becomes a lethal mix that allows financial dealers to write their own checks bigger each year. It seems there is no end to how high they could simply raise their own salaries, pay-outs and ‘returns’ towards simply legally expecting members to pay their share of these increased contributions.

In the economy, we have certain protections such as Trade Practices Acts, Fair Trading Laws, financial regulation, monopoly laws…All this is designed to prevent abuse of market power. In my opinion, I would characterize this Diamond set-up as worse, because there is NO market that is anything other than what DRI, and the timeshare industry in general, allows. It is engaging in practices specifically designed to restrict the market to only it and its approved associates.

I feel this exploits consumers at near will, and I wonder where Apollo will set their ceiling …Looking at how the deal was structured, they see huge opportunity to lend to a membership base locked up in dubious legalities and unfair contracts. All this would not be legal in Australia. I’m amazed at how it turns out to be in the US. And I write this from Mexico, where it is well known what happens when dangerous cartels form and throw their money around here.

Circumstantial evidence is that the proof is in the pudding, but proving it in the US, where the banks and private equity already got away with much…well, I can only hope that the powers that be realize that it won’t get better if they keep allowing the average consumer and householder to be abused by what is, in my opinion, predatory sales and lending.

If the new DRI were to strip assets, it’d be left holding the large liabilities, but that is usually the reason why they then go back to legacy members warning of bankruptcy if they do not buy more points. It looks like the new DRI is just financially ‘creating’ this balance sheet to look exactly how it should look to siphon off more money from members. They already have their interest windfall. Next would be the stripping, and finally, the call for more contributions to boost management revenue…all this whilst the members are forced into more debt.

This is a strategic type play from the banking world, but DRI and private equity were some of the quickest learners out of the Great Financial Crisis. Many learnt how the banks do it. Private equity rushing into timeshare is the new rush to create financial instruments that creates only ‘liability’ for the timeshare owner. The financial guys profit from the creation of liability, which is their ‘debt-holding’. In a near zero interest rate environment, Apollo is looking to create the debt, then shift it across to the membership…effectively, they’ve already done it. Now they must get their $1.1bn back, and the result is just pure profit for the financial players. This could turn out to be a textbook case of why this must be stopped immediately. It will possibly play out over years.  Bravo Irene for taking a stand. I will support your efforts however I can. You’ve struck here what I believe is the actual core of the New Timeshare. The Old Timeshare was less sophisticated, but for those of us who know that private equity in this industry is licking its lips over several recent acquisitions, the old caveat of “buyers beware” may even be too late.

Teacher

Thank you to Michael and Justin for their reader responses which are possibly the most sophisticated reader responses in the history of Inside Timeshare. More and more timeshare Advocates are coming forward bringing their expertise and experience to the timeshare table.

Contact Inside Timeshare or one of our Timeshare Advocacy Group™ Facebooks or websites if you need timeshare assistance or can become an Advocate.   

So there we have it, another week over in the murky world of timeshare, Inside Timeshare thanks Irene for her efforts in bringing so many people together to share their views and experiences.

To our latest addition to the Inside Timeshare family, a very hearty welcome and we hope to hear more from those in the “Land Down Under”, who we do tend to forget share the same experiences as us in Europe and the US.

It’s Friday, the weekend is here, so break out the BBQ’s and let’s PARTY!!!!!!!!

barbie

letter from america

Friday’s Letter From America

Welcome to this week’s Friday’s Letter From America, Irene Parker’s article this week focuses on eleven Platinum Diamond Members who have had problems. But first a round up of the news from Europe.

Once again, those lawyers from Canarian Legal Alliance have made legal history in Spain. Back in March 2015 they secured the first Supreme Court ruling against the timeshare industry, on Tuesday 13 June, they did it again with their 50th ruling from Spain’s highest court. From our sources, no other law firm in any field has managed to get this many rulings through this court. It certainly has shaped the way the timeshare laws are now being applied.

This latest ruling was against Silverpoint in Tenerife, a company with a long history of litigation against them. Since January the Supreme Court has ruled on no less than 10 cases brought by CLA on behalf of their clients.

Yesterday, Thursday 15 June, it was also announced that the Court of First Instance of Granadilla de Abona Tenerife, has ruled against Diamond Resorts Tenerife Sales SL. The client’s contract was declared null & void and the court ordered the return of over 29,000€ this was because the contract was the Diamond points system.

On Wednesday 14 June we published the Anfi CEO’s letter to members, in his letter he still indicates that the Supreme Court has got the perpetuity contracts decision wrong, he also says that it is not true that Anfi are losing. Well here we go, Wednesday 14 June, the High Court No 3 of Las Palmas once again declared an Anfi contract null & void in respect of the contract being over 50 years in duration (perpetuity) and that it also contained “Floating Weeks”. In this case they have been ordered to pay back over 10,950€

The truth is there and plain to see, it can also be easily verified through the courts themselves. Sounds like the “Fake News” syndrome is catching!

At least in Spain, consumers are getting the protection of the law, maybe our cousins across The Great Lake will take heart, that there is some light at the end of the tunnel. Now to Irene’s article.

 

Eleven Platinum Diamond Members Cry Foul

Romeo and Lily Dalisay Share their Story

be strong

By Irene Parker

June 16, 2017

It’s not easy to stand up against wealth and power, whether you are a woman accusing a famous comedian, or a former FBI Director accusing the President of the United States. Any timeshare member who has come forward to share their story can relate to the discomfort felt when the decision has been made to stand up publicly for truth and justice.

Inside Timeshare previously published the story of Romeo Dalisay, age 70, and his wife Lily, age 71, a California Filipino family. Romeo is a retired physical therapist and Lily a hand therapist. The family has maintained a good credit score until now, facing foreclosure for the first time in their life.  Mary was working just to pay for their Diamond Resorts loan and annual maintenance fees, but can no longer work due to complications from diabetes.

Romeo and Lilly decided to release their identity after reading Angela Johnson’s Inside Timeshare article. It was also of great comfort to read about the Fournier family and the lawsuit filed against Diamond Resorts by attorney Amir Goldstein, as the Fournier family is struggling with the foreclosure process as well.

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

The Dalisay family is one of eleven Platinum Diamond member families that have reached out to Inside Timeshare alleging they were up-sold to a higher loyalty level by deceit, concealment, violation of trust and bait and switch.

Out of the eleven Platinum member complaints, Diamond’s Advocacy Department has resolved three. Three of the eleven complaints involve Diamond’s rental policy change, which states Diamond members can only rent to friends or families. All hold contracts allowing rentals and were sold on the benefits of renting.

philipines flag

The Dalisays are one of four Filipino families who have reached out to Inside Timeshare. Diamond has helped two of the four Filipino families resolve their complaints. The Dalisays first article was translated into Tagalog.

Diamond Resort’s non-deeded vacation points cannot be listed with any of the 64 members of the Licensed Timeshare Resale Broker Association, so families find themselves forced to foreclose if they are not eligible for a voluntary surrender due to a loan outstanding. Diamond Resorts is the only major timeshare that cannot be listed with an LTRBA member due to restrictions the company has placed on the use of secondary points the LTRBA members feel are more onerous than other major timeshare companies.

http://www.licensedtimeshareresalebrokers.org/

Inside Timeshare has received numerous complaints from Diamond members concerning Diamond’s Polo Towers and Cancun Resorts sales tactics. Of the eleven Platinum members filing complaints, six are from these two resorts. One of the six was up-sold by a Polo Towers sales agent while she was training Diamond’s sales agents in Virginia.

In brief, here is a description provided by nine of the eleven Platinum member complaint allegations that do not concern the rental issue except for Irina. Irina Allen has been accused of renting, although she says she only posted one ad on RedWeek on the advice of her sales agent. There are many Diamond rental ads posted on RedWeek. Irina also alleges she was upsold by deceit. The families are listed only by number.

  • Ka’anapali Hawaii sales center, up-sold from US to Hawaii Collection or there would be no Hawaii availability. Virginia sales center, up-sold to take advantage of a 30 cent maintenance fee reduction program that did not exist, Polo Towers Las Vegas sales center, “should have been invited to a meeting” up-sell from Hawaii to US Collection, or they would regret being Hawaii Collection members.
  • Branson MO up-sold to obtain a survivor release benefit, already available, a Ka’anapali up-sell US to Hawaii claiming only Hawaii points can be rented and only Hawaii members have survivor release options.
  • Polo Towers, a Legacy up-sell because points will appreciate and buying Legacy points is the only way to sell points. Complaint resolved in member’s favor.
  • Polo Towers, a Legacy upsell so they could sell their points. Complaint resolved in member’s favor.
  • Polo Towers, a Legacy up-sell as the only way to sell points. Unresolved Irina Allen up-sold in order to use secondary points, the subject of an upcoming article.
  • Polo Towers, a Legacy up-sell as the only way to sell points. Complaint resolved.
  • A Polo Towers sales agent, working in Virginia to train Virginia sales agents (as she said she helped developed many of Diamond’s policies), a Hawaii to US upsell or there would be no US availability. US to Hawaii upsell or there would be no Hawaii availability and renting Hawaii points is allowed only in Hawaii to cover maintenance fees.
  • Romeo and Lily Dalisay described herein.

Back to Romeo and Lily’s story in their own words

The Dalisays are former Monarch owners. Convinced to give up their Monarch deed, they currently own 60,000 Diamond points. The mortgage balance is $85,968 financed by Diamond at 13.1% and the monthly payments are $1,375. Maintenance Fees for 2017 are $9,034. Historically, according to information culled from lawsuits, Diamond points have sold for $3 to $4 a point, so the Dalisays have spent at least $200,000 on vacation points.

Many Monarch owners at all loyalty levels have contacted Inside Timeshare alleging deception, claiming they were told they had to buy additional points due to Monarch’s bankruptcy as they were responsible for their share of Monarch’s debt, when in fact many Monarch owners were able to deed back their Monarch week for a $250 fee.

In Romeo’s and Lily’s words

In Las Vegas at Diamond’s Cancun Resort in 2013, we were told we should have received an invitation to attend a dinner to discuss the transition from Monarch Grand Vacations to Diamond.

“You should have been invited to a dinner” is being used today on Gold Key and Intrawest owners. It seems designed to confuse.

The sales agent asked us to write a letter stating we did not receive the dinner invitation and therefore should be given the same price per point as those who attended the dinner. He faxed our letter to a Las Vegas Diamond office. We were told that due to Monarch’s bankruptcy we would lose our equity if we did not purchase additional Diamond points. The promised one hour meeting lasted five hours. We eventually broke and signed a contract to buy more points.

We constantly received telephone calls asking us to attend more updates. We generally turn them down, but accepted an offer from Diamond’s Cancun Resort. A previous telephone sales encounter from Cancun lasted over three hours.

In Pomona, California July 2015 at another meeting, we again were told we had to get rid of our Monarch points by buying more Diamond points in order to prevent the increase in maintenance fees due to less and less people owning Monarch.

This is a difficult topic and one of great interest to Intrawest and Gold Key owners as well because it is unclear how diminishing numbers of deeded members will be treated. At a 2016 Monarch Annual Meeting it was announced 30% of the remaining 40,000 Monarch owners had not paid their 2016 Maintenance Fees.

The Pomona sales representative said that if we keep our Monarch deed, we will be assessed increased maintenance fees to pay for the repair of the Cabo property caused by a hurricane. Another example he gave was the water damage at The Point at Poipu, a Diamond acquired property in Hawaii.

This meeting lasted over five hours until midnight. Focus, decision making ability, and judgement falter if kept that long. The increase in maintenance fees after this purchase started our financial struggles.

A total of four credit card accounts were opened to pay the down payment.

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

In 2016, we took out loans to pay our maintenance fees. We also used points to pay maintenance fees, but a point purchased for around $4 is only worth $.04 if used to pay maintenance fees.

stick men

Many of the tricks of the timeshare trade, like promising a buy-back program when none exists, are not unique to Diamond. What is unique is an organized effort among 5,000 Diamond member supported Websites and Facebook members determined to report deception when it occurs by obtaining the sales agent’s name and ID number, the resort location, and date and nature of alleged deceit. In other words, we act to hold Diamond accountable when members feel “the script” is nowhere to be found.

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

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

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

We hope the goals of accountability and transparency promoted by Diamond’s new CLARITY™ program are acted on and enforced as we work in partnership to make sure they are.

Our Timeshare Advocacy Group™ motto, courtesy of Jimi Hendrix, is Knowledge speaks, wisdom listens. It is our hope that one day timeshare developers will not look upon customers such as those described in this article as “the enemy”. Those mentioned in this article with issues resolved issues were initially denied and had to fight for a positive outcome. We teach our children to admit when they make a mistake, but grown-ups working in the corporate liability world must abandon this important principle in order to survive in a sometimes customer unfriendly world.

truth set you free

So there we have it another week over in the murky world of timeshare, thanks to all those who contribute, either by writing their stories or just giving us the heads up on the latest news. The truth is out there as Mulder and Scully from the X-Files would say, it is just a matter of who you wish to believe, those who sold it to you or independent sources?

friday dog

Have a good weekend.

stop press

Just as we were about to publish this news came in from the High Court Number 3 of Santa Cruz de Tenerife, Diamond Resorts Tenerife Sales SL, (Diamond Resorts Management Ltd), Club Sunterra Europe Ltd,(Sunterra Europe Ltd) Diamond Resorts International have just been ordered to return over 33,451€, with the client’s contract being declared null & void.