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letter-from-america

Friday’s Letter from America

It’s Friday, so time for another Letter from America with Irene Parker, but first a look today’s major news in Europe.

El Diario a prominent Spanish daily newspaper published the following article today (see link for full story).

The article reports on the current legal actions against Anfi and tells of the 1.35 million Euros they have had to repay to consumers, in the execution of around fifty judgements. It also goes on to say that there are over 395 live cases at court with a value of over 27 million Euros, with over 100 having had decisions in favour of the consumers. Some of these are firm decisions with the sentences yet to be executed, others are awaiting confirmation.

With even the Spanish press publishing articles such this, it does make the claim by Anfi that they have not lost or the Supreme Court has got it wrong rather flimsy!

In fact on Tuesday yet another sentence was announced by the Court of First Instance against Anfi, again the clients contract was declared null and void with the judge ordering Anfi to return over £20,000 plus legal interest

(if using google. Right click on the article for a translation to English)

http://www.eldiario.es/canariasahora/tribunales/Grupo_Anfi-condenas-negocio-timesharing_0_739477033.html

The same article has also been published in Canarias7, one of the major Canary Islands Newspapers.

https://www.canarias7.es/economia/turismo/anfi-paga-ya-1-35-millones-por-condenas-YK3590405

Now for this weeks Letter from America.

 

The 3 Rs or F of Timeshare Revisited (first published in three parts)

Timeshare Resolution, Relinquishment, Refund, Foreclosure

Magnify

By Irene Parker

February 16, 2018

There are many who use and enjoy their timeshare, but rising maintenance fees, high interest rate loans and higher interest rate developer issued credit cards can spell financial disaster, especially when an individual or family is hit with an unexpected life crisis. Not one of the more than 300 Inside Timeshare readers who have contacted us realized the perpetual nature of the timeshare contract (in the US), or that their timeshare had little or no secondary market. It is not uncommon for a family to have spent $100,000 or more on a timeshare.

There is rarely a need to pay anyone, or any firm, money to get you out of your timeshare. Special circumstances, like being in the middle of buying a house, may result in a referral to one of the law firms we know and trust, if the timeshare company refuses to help the individual or family.   

Our “How to File a Complaint” form explains a process that takes time, determination and effort, but when it works, it costs nothing. We say when, because we don’t win them all. No one does, not even lawyers. “We can guarantee you release!” boasts the exit timeshare ad. We have had reports of people paying scammers large sums of money for a guaranteed release, only to learn the guarantee came about because of foreclosure or non-payment.

Our complaint form: http://insidetimeshare.com/file-timeshare-complaint-revised/

The goal:  Convert from angry, desperate, overwhelmed and confused into empowered. Timeshare Advocacy Group™   has 44 core advocates and 10 technical support advocates to help you. All of our Advocates are unpaid.

The First R: Relinquishment

dont like

Some timeshare companies offer voluntary surrender programs, but relinquishments are not guaranteed and there cannot be an outstanding loan or delinquent maintenance fees. It is difficult to determine how many surrenders requests are granted, compared to the number of surrenders requested.

There is nothing wrong with deeding back a timeshare if you have used and enjoyed the timeshare for several years. However, if you find out just days or weeks after purchase that you bought a timeshare not matching what you were promised, walking away from even $5,000 doesn’t seem right.

Before relinquishing, check with a member of the Licensed Timeshare Resale Broker Association to find out if your timeshare can be listed with one of their 64 members. http://www.licensedtimeshareresalebrokers.org/

LTRBA members charge nothing up front, so they don’t waste your time or money by listing a timeshare that, in all likelihood, will never sell.

The Second R:

refund

A refund is not easy to come by, but in cases of serious and obvious fraud; a refund can be achieved.  Inside Timeshare has heard from so many members alleging fraud, we can sometimes guess the name of the repeat offender sales agent before we are told. The fact that some of the same agents are committing the same “fraud for profit” over a period of years is telling.

The complaint process begins with a petition to the resort. Anticipate a knee jerk “you signed a contract’ reaction. Next, begins the filing of regulatory and law enforcement agency complaints. This is where our advocates are ready to assist because just figuring out online forms can be daunting. Check our complaint form for the list of appropriate agencies to contact.

Eron Grant has become our resident ARDA Code of Ethics analyst. In all likelihood, timeshare members are not even aware they are collectively giving $5 million a year to ARDA ROC. ARDA stands for American Resort Development Association and ROC Resort Owners Coalition. The money comes through “voluntary” opt-in or opts-out donations. This $3 to $10 amount, which varies depending on the resort, appears on all maintenance fee invoices purchased in the U.S. if the developer is an ARDA member.

Despite our advocates and members forwarding a volume of complaints to ARDA, questioning ARDA’s Code of Ethics, there has been no response. Inside Timeshare has learned two of the worst alleged offenders each give $1 million a year to ARDA ROC, surely a disincentive to enforcement.   

Here’s Eron’s article: Why Does ARDA Have a Code of Ethics?

red dress

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.  http://www.arda.org/ethics/

http://insidetimeshare.com/fridays-letter-america-14/

Litigation can take years and often the amount of money at stake doesn’t justify the time and expense litigation requires. Some developers have a class action ban, forcing arbitration. There are many critics of arbitration, including 19 Attorneys General like Minnesota AG Lori Swanson, as reported by Chris Parker.  

“The right to have your dispute resolved before a jury of your peers is as American as it gets; it’s a fundamental core American democratic principle,” says Minnesota Attorney General Lori Swanson. “To think that millions upon millions of consumers are forfeiting their fundamental right to have their day in court because of fine print in a contract….”

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

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

Timeshare buyers should check immediately after signing a contract to see if they can opt out of the arbitration clause. Probably only a lawyer would think to do so.

http://insidetimeshare.com/tuesday-slot-arbitration/

Timeshare developers know the industry is virtually unregulated and that they are protected by the oral representation clause. However, as we have stated in several previous articles, according to the FBI and attorneys we spoke with, it is not legal for a company to hide behind the fine print, providing sales agents the means to say anything they can come up with to sell points.      

The most common deceit and bait and switch complaints

  • The agent said I could sell my points.
  • The agent said my points were an investment, so easily sold, at a profit.
  • I can turn in points to pay maintenance fees but no such program exists
  • The value of airline and other travel awards is zilch. A common complaint is being told you can use a credit card to offset or pay maintenance fees in their entirety, when a member would have to charge $200,000 to pay an annual $2,000 maintenance fee.
  • The interest rate is 18%. They said I could get better financing but I can’t.

The Third R

resolved

It doesn’t happen very often, but there is the possibility the member just doesn’t know how to use the booking system. Blanket statements like “You can always book online cheaper than using timeshare points” are not accurate. My husband and I are Diamond owners. We have often booked two weeks in Sedona or Orlando for less than it would cost booking online using our points.

One amusing complaint was a buyer whose complaint was that they bought a trial program, but they were promised a lifetime membership. I explained, in the case of the timeshare company they bought into, the last thing they wanted was a lifetime membership. I encouraged them to become a Secret Shopper since they were not locked into perpetual maintenance fees.

 foreclosure  Foreclosure

This is the least pleasant outcome, but foreclosure is not the end of the world. Timeshare Advocacy Group has a foreclosure support group, with members offering each other tips on how to withstand the grueling up to 180 days or more of collection calls. Calls are relentless and members have reported many violations of debt collection consumer protection laws.  

We’re working on a document for those who experience foreclosure to provide to credit rating agencies or lenders, detailing the patterns of complaints listed on Better Business Bureau reports, Attorneys General Settlements, and Assurances of Discontinuance and lawsuits. There will be a hit to your credit score of course, but if you feel you are a victim of fraudulent timeshare sales practices, provide the rating agencies or your lenders with the reason why you refused to pay off a timeshare loan or credit card. Lenders are human. Many will take this into consideration.

I asked timeshare attorney Mike Finn of the Finn Law Group some questions about the foreclosure process for an article we published previously. Mike’s answers are worth repeating. Some common questions:

Will the timeshare company try to ruin my credit for non- payment of maintenance fees loans or both?

Mike Finn: Generally no credit reporting on maintenance fees, yes they do on “mortgage” payments. Most timeshare property owner associations, which are separate non-profit entities, do not report non-payment of maintenance fees largely because they don’t maintain subscriber contracts with the credit reporting agencies. However, once referred to collection, those agencies do maintain subscriber relationships and that’s where the issue becomes relevant.

Can or will members be taken to court for non-payment of maintenance fees loans or both?

Mike: Can yes, will, maybe not so much

Do they place liens for non-payment of loans?

Mike: Yes in the sense that they do pursue foreclosures, yes for maintenance fees as well.

Do they place the lien just on the timeshare? In other words, does the lien apply just to the timeshare, or does the lien apply to a member’s primary residence as well?

Mike: The word ‘lien’ can be utilized in more than one way. In the timeshare world it typically means the security interest filed against the timeshare itself by virtue of nonpayment of maintenance fees. Only the timeshare interest itself is impacted by that kind of lien, not the owner’s property beyond the timeshare. A mortgage lien on the timeshare caused by non-payment of the initial purchase price can, under certain circumstances, become a judgment which could be satisfied by going after the defaulting party’s personal assets. This very rarely happens, but it has happened, so we can never, say never.

Is it advisable to just stop paying fees without the aid of an attorney?

Mike: It really does depend on your ability to endure collection calls, letters threats, and a foreclosure on your credit report is quite damning, it will make refinancing or new residential purchases an issue for about 5 years. Rarely will they sue for deficiency balance.

http://www.finnlawgroup.com/learning-center/can-a-timeshare-hurt-my-credit-score

http://www.finnlawgroup.com/english/learning-center/page-12

Remember, “I can’t afford it,” is not a valid reason to cancel a loan for a timeshare any more than it is a reason to be able to cancel your home mortgage loan. You can’t go to your home mortgage lender and ask them to cancel your home mortgage because, “I can’t afford it.”

Our Advocates, bringing experience and expertise from all walks of life, are here to evaluate and work together to help you put your timeshare in the rear view mirror, if that is your goal.

Our mission

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/

Let’s keep working together to improve the industry.

fix prob

That’s it for another week, remember if you require any information about any article published or any company that contacts you, Contact Inside Timeshare and we will get the information for you.

Have a great weekend and join us again next week.

weekend cat

letter-from-america

Friday’s Letter from America

In today’s Letter from America, Scotty Black another service veteran tells his own story of his “Nightmare on Timeshare Street”. These stories are becoming all too common at Inside Timeshare, with readers contacting us on a daily basis. But first we have a look at what is happening in Europe.

As we have reported on many occasions, Anfi deny that they are losing cases and that no one is getting paid out, well we would like to share with you a press release from Canarian Legal Alliance.

One of their clients won their case at the High Court in las Palmas, Anfi appealed to the Supreme Court, the judges in Spain’s Highest Court confirmed the sentence and ordered Anfi to pay back double the amount of the deposit paid during the cooling off period, which is prohibited by law.

This particular client has now received into their own bank account the sum of 37,979€, this leaves us in no doubt that regardless of what Anfi claim, they are losing and clients are being paid.

c2

CLA also issued the following figures on cases for this past week.

  1. In the Courts of First Instance in Gran Canaria and Tenerife there have been 5 rulings in favour of their clients against Anfi and Silverpoint.
  2. In Tenerife, the High Court ruled once again against Silverpoint.
  3. There were also 3 Rulings in favour of their clients at the Supreme Court in Madrid, these were again against Silverpoint.
  4. In total, CLA clients have been awarded a massive 402,552.19€ Not bad for just one week.

Staying with Anfi, several of our readers have enquired about another letter sent by the Anfi CEO, in this he stated that any contract signed between January 1999 and January 2001 had a 2 year window for adaptation. The law referred to is 42/98, this was passed in 1998, it became effective on 5 January 1999, so the question is why would  resorts and developers be given a 2 year period to change?

Surly the period between the law being passed and coming into force is the window to change?

What would be the point of setting a date for the enforcement and then allowing things to continue as before?

These are questions that need to be answered, Inside Timeshare has asked for clarification on this and is waiting for an answer. We will publish in full when it is received.

More readers have informed Inside Timeshare that they have received a letter from the Police regarding the following Mark Rowe companies:

  • Monster Travel (known as Monster Group/Monster Rewards)
  • SellMyTimeshare
  • Complete Internet Solutions
  • Hollywood Marketing

These are being investigated as we reported previously by the South West Police, it looks like a major criminal investigation, if you have had any dealings with any of these companies you can contact the Police at the address below.

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

Now on with our Friday’s Letter from America.

A Letter to Timeshare Developers and ARDA

Law Enforcement, Military and Lawmakers

Our Mission to Stop Timeshare Crime – Front and Back

EW

February 9, 2018

By Scotty Black, M.S. Criminal Justice, former Navy

Promissory Note $65,741.14 @ 14.4309%

How I got here

  • Purchased 5000 timeshare points October 2014 Scottsdale AZ CA Collection
  • Purchase price $13,000
  • October 13, 2016 in Hawaii we bought 15,000 additional points
  • Name of sales agent Brian Holmes
  • Purchase price is $75,710
  • $4500 on a resort issued Barclaycard used for the down payment
  • Monthly payment $1,037.84
  • Maintenance fees $4,006.22

I am one of 22 active duty, retired military, law enforcement agents, feeling victimized by timeshare. For my family, I would describe timeshare as a parasite killing its host. Like Amanda and George Jones, I’m worried about losing my security clearance. Like, Lela Renea, I work in law enforcement. Like Kevin Hopkins, I am military trained in Electronic Warfare. I never imagined we would need that training to fight in a Timeshares War. Kevin is retired Air Force. I served in the Navy. My primary job was Electronic Warfare, but partly due to my attitude, I was sent often to security, so I ended up assigned to the Special Security Force, Battleship Missouri. The fact that this is the second complaint in a matter of weeks from an electronic warfare veteran and that there are 22 of us working, or having served to protect our country, filing timeshare complaints, is telling.

Kevin was featured in this article on January 30 unidentified, but as Kevin has since received his automatic knee-jerk, “Sorry, you signed a contract” denial, Kevin has been identified and has joined the ranks of Inside Timeshare Contributors.

http://insidetimeshare.com/tuesday-slot-irene-8/

Kevin’s sales agent managed to work in every oral misrepresentation possible into one presentation. He’s working on an upcoming article about his experience.  

Timeshare companies have negatively affected national security with their fraudulent sales practices. Active duty Navy Technicians George and Amanda Jones could be forced into foreclosure. They say they were assured by two sales agents in two separate states they could lower their 18% loan interest rate by contacting finance companies offering a lower rate or a military rate. “Just Google it,” their sales agent said. Banks do not finance timeshares. Consumer credit issues can cause a revocation of security clearance. Jeff is in the process of writing to the Commandant of the Marines.

Jeff Diehl, former Marine, purchased a timeshare at Vacation Village

http://insidetimeshare.com/fridays-letter-america-30/

Lela Renea, a detective, who purchased a Bluegreen timeshare

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

Amanda and George Jones, active duty Navy, purchased a Diamond timeshare

http://insidetimeshare.com/tuesday-slot-irene-3/

We have summarized our reports from our 22 unit members and have reached out to Whistleblowers of America, an organization that seeks justice for military and government employees. If you are not drowning in timeshare loan payments, credit card payments and maintenance fees, consider a donation.

https://whistleblowersofamerica.org/

Here’s what happened

In Hawaii, October 2016, we asked our timeshare sales agent Brian Holmes what would happen in the event we could no longer make payments. As we were told in Arizona, we were told again points could be rented and that we would be able to sell the points, likely at a profit, especially since we purchased them at such a low price – a price so low because “a sales staff member forgot to file the declination of purchasing more shares in a previous presentation…!”

meet

We were told Hawaii points are a good investment. This sticks in my mind because my wife had to write a statement to that effect, so the purchase at such a low rate could go through. As for the potential of profit, we were told there is a land-usage moratorium on how many places and percent of the land can be built on in Hawaii so this would also make the points appreciate, even with a speculation of over $10 per point. We were told we would need to sell points through the secondary market but that would be easy.

We have since learned our vacation points have no secondary market and that renting points through a third part website is not allowed. I contacted members of the Licensed Timeshare Resale Broker Association. Not one I spoke with would even accept a listing for our Diamond points feeling the restrictions placed on the use of secondary points renders the points worthless. Since LTRB members, unlike some scam timeshare exit companies, do not accept an upfront fee, it’s a waste of their time to accept a listing.  

In Scottsdale, at an “owners update” early September 2017, long after the issuance of the Arizona Attorney General’s Assurance of Discontinuance, we experienced yet another highly aggressive sales presentation. The length of the presentation was a violation of the AOD. We complained repeatedly that we wanted to leave. We were told it was not a sales presentation and they would not try to sell us points, but after the 55 minute presentation we were paired with a sales agent for at least two hours.  My wife had broken her foot on resort property the prior day and was in pain. She had to keep her boot elevated. They still did everything they could to keep us from leaving. I still was experiencing symptoms from a car wreck that had required a hospitalization. We were both on painkillers.  

Ultimately, I contacted Irene Parker and our Timeshare Advocacy Facebook group.

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

Irene suggested I contact Diamond’s Consumer Advocacy Department, which I feel has nothing to do with consumers. The “hospitality” agents are fine print detectives, in my opinion.

Irene explained about Diamond’s new Quality Assurance program, CLARITY, launched after the AOD was issued. CLARITY is reported to be about accountability, transparency and respect for the customer, but as Irene predicted, our Hospitality agent referred us to the oral representation clause. I ask what purpose CLARITY serves, other than a piece of paper to hand out to provide a false sense of security, making it seem like the company cares about false promises made by sales agents.

Researching timeshare in general, I have come to believe many timeshare sales agents employ tactics that meet the FBI’s definition of white-collar crime, Financial Institution Fraud, defined as “deceit, concealment, violation of trust and bait and switch.” Timeshare buyers who feel they were victimized should file complaints with the following agencies:

  1. The Better Business Bureau
  2. The Attorneys General (The AGs where you signed, where the firm is headquartered, and where you live)
  3. State Real Estate Divisions against the individual agent
  4. The Consumer Financial Protection Bureau
  5. The FBI (if as serious as mine at IC3.gov and orally through a field office public access line #4 prompt, then #3 white-collar crime prompt)
  6. The FTC if you have any energy left

Other agencies that investigate multinational and cross-border financial institutions

We know criminal actions on the part of timeshare sales agents extend beyond any one resort, except for Disney Vacation Club. Somehow they manage to show a profit without resorting to deceit.

mickey mouse

Hopefully, timeshare executives and lobbyists will read this. We know one lawmaker has.

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

If you need help, call us.

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/

 

Thank you Scotty for sharing your “Nightmare on Timeshare Street”, we find it appalling that veterans are being treated like this, facing foreclosure and ultimately losing the valued and hard earned security clearance after years of loyal service. All we can say is shame on the the sales agents and even more so on the developers for allowing their sales agents to behave in this despicable manor.

News has just come in from Madrid, the Supreme Court has issued another sentence this morning against Silverpoint, this is now 89 rulings made against various timeshare companies by Spain’s Highest Court.

The latest ruling has awarded British clients of CLA a massive £36,000 including £8,000 which is double the deposit paid within the mandatory 14 day cooling off period, plus legal interest. The contract has also been declared null and void, so congratulations the these happy ex-timeshare owners and great well done to the staff and legal team at CLA.

Today we have received another email from yet another victim of Ramirez and Ramirez, it seems he is upto his old tricks again. The last we heard from him was in April 2016, (see link below).

The pitch is the same, the consumer is contacted and told that their claim has gone through, there is a substantial amount, in this case over £31,000 waiting for them at the court. All they had to do was pay £1,498 to Ramirez to get the payment underway, then they were told they had to pay £2,560 Tax  to the Agencia Tributaria (Spanish Tax Office) and the money will be released.

Please be aware this is one experienced conman, there is no money waiting for you at court, there is no tax to pay to release this ficticious money. Unless you have instructed a lawyer to act on your behalf through the courts then there is no claim.

The Resurrected!

That’s it for this week, a very big thank you to all who sent in valuable information which will always help others and to those who have contributed to the articles from our Cousins across “The Great Lake”.

Remember, if you have any questions about any article published or just need advice on whether to do business with any company, contact Inside Timeshare and we will point you in the right direction.

Have a good weekend.

weekend

 

letter-from-america

Friday’s Letter from America

Welcome to this weeks Letter from America, the last one for January, hard to believe that the first month of the year is almost over.

We started the week with a report about disgruntled members being unable to book weeks they want, even 10 months in advance, despite just having paid the maintenance / management fees for 2018!

In this case the culprit is Anfi, but we have also heard from other “points and floating week” members that they also have trouble booking, Diamond owners from both side of the Great Lake are having the same problem. Well we all know what the reason is, more members than weeks available.

Sticking with Diamond for a moment, they are in the process of sending a letter out to their members, (just like Anfi has) regarding making claims against them for illegal contracts. In their letter however they point to a website to get information on companies that their members have had contact with. This is timeshare business check, an arm of Kiwkchex alon with Timeshare Taskforce and financed by the RDO and the industry in place of mindtimeshare and the enforcement program.

This company is directed by Chris Emmins, who is what can only be described as a serial failed director. (See the link below). This company purports to be a leading investigation and verification service which provides “accurate” information about online businesses. They contact businesses and ask questions, these businesses have no legal obligation to respond, as Kwikchex and timeshare business check have no legal mandate to demand any answers.

Obviously if a business fails to respond an inference is then made on the website which is negative, especially if the business in not a member of the RDO! We leave it for you to decide how accurate they are.

http://insidetimeshare.com/kwikchex-chris-emmins/

This then brings us on to Thursday’s article, regarding “Trade Bodies”, although it started with a little bit of a “mickey take”, it was however a very serious article with information timeshare consumers need to know. Timeshare is built on deceit, just think of what you were told when on the presentation, being bamboozled for several hours with promises which in the end never materialised. So is it any wonder the industry is still trying to pull the wool over your eyes?

So now on with our Letter from America by Irene Parker.

January Report

32 Reader Timeshare Complaints Received in 2018

jan rep cover

By Irene Parker

Friday January 26, 2018

No one is disputing there are many who use and enjoy their timeshare. It’s true those that do are not the timeshare members that contact us. However, the number of timeshare complaints Inside Timeshare has received is alarming and the nature of most allegations criminal. Of the 32 complaints received as of January 25, six would be eligible to be a Nightmare on Timeshare Street article.

On a positive note, those working in law enforcement, especially those who have timeshare complaints, have been helpful. One member of the military was able to record their fraudulent sales presentation. This past Tuesday’s article described nine Timeshare Advocacy Group™ teams and those teams have been hard at work.

http://insidetimeshare.com/tuesday-slot-irene-7/

One of the teams is working on technological support, as I am technologically challenged, and the other is our timeshare exit scams team that has been in overdrive as they learned two out of five “let us get you out of your timeshare” entities reported this week exhibit criminal tendencies. Two others are suspect, but the team could find no concrete evidence of criminality.

progress

32 Reader Complaints received

  • Complaints #1, #3, #10, #12, #15, and #20 were against the same sales center. This makes 40 complaints received against the sales center,
  • Five are active duty military, retired or served in the military,
  • Four are disabled,
  • Three are in, or were, in  law enforcement,
  • #6 is the fourth member to direct a complaint against the same sales agent.
  • #1, #2, #3, #6, #10, and #11 meet the criteria for Nightmares on Timeshare Street.

Due to the increasing number of complaints, we request you schedule a call at either: 1, 2, 3, or 4 PM EST rather than just call between the hours of 1 to 4 EST if you have questions about our complaint form.

The Cliff Notes version of the complaint process.

  1. Write out your complaint and send to the timeshare company.
  2. If you are denied, write a rebuttal and file a complaint with the Better Business Bureau if you feel services provided were not as described, or have a complaint about sales and marketing practices. 
  3. File complaints with the Attorneys General of the state where you live, where you signed, and the headquarter state of the timeshare company.
  4. Although weakened, complaints can still be filed with the Consumer Financial Protection Bureau.
  5. If you feel you meet the definition of white-collar crime defined as “deceit concealment, violation of trust and bait and switch”, file with the FBI orally by calling your local field office through the FBI public access line, and with IC3.gov online. “They promised me a cruise but it cost $1000” is not enough of a crime to report to the FBI. Any of our Nightmares on Timeshare Street members would qualify. Scroll through those articles for examples.
  6. File a complaint with the state real estate division against the agent, if you complaint is directed against an individual agent.     

Thank you to our 46 core advocates (two more have been added since we published Tuesday) as we stick together and work together to be made whole again. Too many families contacting us are financially devastated, some taken advantage of because of their disability, as in the case of parents caring for a three year old diagnosed with cerebral palsy, on a feeding tube, a little guy that earned the privilege to be a case study at Stanford.

There is no federal enforcement, state enforcement is spotty, and so the hamster wheel of recycled inventory, as one former sales agent describes it, rolls on. Sometimes it does feel hopeless, but like #metoo, also silenced and isolated by non-disclosure agreements, we will fight around it and we will not stop. Thank you to the members of the armed forces and law enforcement who have my back.

US mil seals

Charles Thomas, also a veteran, over a beer with one of our readers, said Irene sounds angry. While the soon to reach 300 complaints I have heard doesn’t seem to bother customer service representatives, our advocates and I are astonished at the frequency and level of deceit. Repeat offenders continue to flourish. Pay the fine and move on. I haven’t been quite the same since I learned of a Marine who lost not only his security clearance, but his air unit command as the result of a timeshare foreclosure due to his allegations of fraud.

As always, contact Inside Timeshare or a member of a member sponsored US support group, if you have a question or concern about your timeshare.

mission

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/

 

Thank you Irene for that report, it is actually quite staggering that we are only at the start of the year and yet there have been that many complaints received. It certainly prove a point that the industry does need a major shake up.

 

If you have any questions or concerns regarding your timeshare or need information on any company that you may intend doing business with, Inside Timeshare is here to help.

Friday is here so have a good weekend.

friday dog

 

 

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: End of Year Review

Welcome to Friday’s Letter from America, the last one for 2017, this week Irene looks at the past year from across “The Great Lake”, while we look at the past year in Europe.

Our first article of 2017 was about the family of fake lawyers from Tenerife, Litigious Abogados, it highlighted a new firm called Abogacia Española, which happens to be the name of the official website to check the validity of lawyers registrations. This was a very good move on the part of this well planned out fraud, as it did give an air of legitimacy when you did a web search.

Since then, we have seen many incarnations of this fake law firm, although the names have changed, one thing hasn’t, that is the nature of the fraud. They are still duping consumers into believing that they have a case at court, then to be part of it you need to pay the Procurator fees. That is only the start, it get even more sophisticated. Search Litigious Abogados for the full story.

Another firm that was the subject of our attentions was Keys Concierge, another credits based lifestyle company. It turned out that the director was one Franz Marcus Deutsch, an old associate of Mark Cushway of Silverpoint. In fact this new company was the latest product which would be peddled by Silverpoint, soon to change their name to Signallia Marketing Distribution SA.

While we are on the subject of Silverpoint, It was announced in April that Silverpoint were withdrawing their membership to the RDO, (Resorts Development Organisation) and would no longer be selling timeshare. Hence the product Keys Concierge, which does not appear to fall into the realms of timeshare laws.

This was a great blow to the RDO, as Mark Cushway was not only a director, but Silverpoint was also a major contributor. Funds this organisation could ill afford to lose. It has since come to our attention that the RDO is to form a partnership with ARDA (American Resorts Development Association). This particular organisation is well endowed with contributions and is very strong in the world of lobbying for its members. So it begs the question is the RDO going to be taking on board the tactics of ARDA?

tribunal supremo

Staying on the subject of Silverpoint, January was a momentous time on the legal front, with the Supreme Court making their first ruling against this company. This was the case of Mrs Shirley Wilson and her long battle against the selling tactics of Silverpoint.

Within a week the highest court in Spain ruled three times against Silverpoint, opening the doors for many more cases against them. Since then the rulings have been coming in thick and fast, leaving no doubt that what they had been selling was illegal.

February brought the news that Alberto Garcia had “stepped down” from Mindtimeshare and that the RDO would not be renewing the contract with that “Consumer Association”. Alberto Garcia for many years had been running the RDO’s “Enforcement Programme”, attacking any company which threatened the timeshare industry. This has now been given to Kwikchex and the “Timeshare Taskforce”, run by Chris Emmins.

Throughout the year, Inside Timeshare has been following the AnfiTauro Beach Project”, this has been a story that has now seen the former head of the Coastal Authority being charged with falsifying official documents and wrong doing in public office. No doubt we will see his trial sometime in the new year.

This project was to build a man made beach at Tauro, with the building of hotels and a shopping center. This was given to Anfi to run for 50 years, the Government of Gran Canaria is now seeking in the courts to remove these concessions in the light of the evidence of malpractice. This story is not over yet.

Anfi have been on the receiving end of many Supreme Court rulings since March 2015, they however have continued to deny any wrongdoing and inform their members that they have not lost any cases. In fact they have embarked on a campaign to attack Canarian Legal Alliance, trying to sow seeds of doubt among their clients. Below is a link to a video showing the National Spanish TV news on TVE 1, in this clip, one of the CLA lawyers explains the Supreme Court rulings. For the National Television to broadcast this item shows that CLA is doing what they say and that Anfi is trying to divert attention from this.

Another story we have been following is that of Los Claveles in Tenerife and the battle for control of the resort. Again this is an ongoing story which at present seems to be dragging on. It revolves around the selling of Wimpen to ONA Grup, who were the managing company of this resort. Their contract has been ended but they still seem to be trying to run the resort against the wishes of the Owners Committee.

There has been a lot of argument on this issue, with some very nasty consequences, it is clear that this issue is not going to be resolved in the near future. It may also end up being a rather costly one with only the lawyers benefiting.

In July we published a rather different article on the timeshare world, this was a positive one, featuring a company that we have not been able to find any adverse comments or complaints. It is off course Disney.

This is a shining example of how the timeshare industry should operate, fair, truthful and with the consumer in mind. There again, it is what we expect from an organisation which prides itself on putting people first.

This same month also saw a very big shake up in timeshare, TATOC, (The Association of Timeshare Owners Committees). This was run by one Harry Taylor, who was very much a mouthpiece for the industry rather than those who his organisation purported to represent.

image1 (1)
Howard C. Nusbaum, ARDA President and Chief Executive Officer Handing the cheque to Harry Taylor for $30,000 Published May 2017

After a long reign TATOC finally went into liquidation, with Harry Taylor and TATOC being totally discredited. For years this organisation has duped not only timeshare owners but also organisations such as Citizens Advice Bureau. Any owner that went to CAB with a problem would be recommended TATOC as the place to go. Little did CAB know that this organisation was funded and basically run by the industry. All we can say is good riddance to a very bad and foul smelling egg!

There have been so many articles it is difficult to review them all, but Inside Timeshare has highlighted some of the most dodgy companies that have emerged over the course of the year. These articles have saved many readers considerable sums of money, we intend to continue with this.

But before we go on with Irene’s roundup of the year from the US, we finish with the news of yet three more sentences issued by the courts. On 27 December the Court of First Instance in Maspalomas declared yet another Anfi contract null and void with the client being awarded over 29,000€ plus legal interest.

On the same day the High Court in Tenerife announced another ruling against Silverpoint, with the contract being declared null and void and the client in this case being awarded over £9,000 plus legal interest.

There then followed on the 28 December another Supreme Court ruling from Madrid, this was number 82! Again the company was Silverpoint, with the contract being declared null and void and an award of over £23,000 plus legal fees and legal interest.

These cases were brought on behalf of clients of Canarian Legal Alliance, so this does show this law firm is doing what they say.

CLA Logo

Now for the year from a US perspective.

What Timeshare Members Can Look Forward to in 2018 and what

I wrote looking forward to 2017 on December 26, 2016

2018

Timeshare Advocacy Group™

By Irene Parker

December 29, 2017

Our Advocacy Group did not have a name one year ago, or a Facebook page. Our advocacy Facebook page was launched February 2017 and Timeshare Advocacy Group™ April 2017. As I write this, our advocacy Facebook page has 706 members. We encourage industry observers, as long as they are respectful.  

Back in February, I remember scrolling down my Facebook feed, a pianist, waiting with nervous flute, oboe, trumpet, and bassoon middle school students for our competitions to begin, when I suddenly saw a post called “Diamond Resorts Owners Advocacy” launched by an economics professor. This Facebook page was launched in response to a draft article I had written and distributed, requested by a few former timeshare sales agents who felt the practice of “pitching heat” to sell vacation points needed to be addressed and brought to the attention of the general public. Based on reader responses, only Disney Vacation Club seems to disavow this sordid selling technique.  

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

Our professor also prepared this mission statement for our DRI advocacy group, but as our Inside Timeshare readers started to reach out to us asking for help with timeshare issues concerning other timeshare companies, I borrowed our DRI mission statement and generalized it to apply to all timeshare companies.

We seek to provide timeshare members and owners 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.

April 2017, a former Diamond sales agent contacted me, urging me to write a press release as she was worried Diamond members were not aware of the Arizona Attorney General’s $800,000 DRI settlement and the Assurance of Discontinuance announced December 23, 2016. There was a May deadline to file a complaint.

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

This former timeshare sales agent said we needed a Facebook page so that readers had somewhere to respond. I didn’t even know how to use Facebook until I got mad at timeshare July 2015, but I struggled through the establishment of a Timeshare Advocacy Group™ page, delighted to find a butterfly with a “Knowledge Speaks, but Wisdom Listens” quote by Jimi Hendrix. My first concert I attended in high school was Jimi Hendrix, second row, in front of the mic.

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

I expected my new creation to last for a month or two, until the press release ran its course, but it continues to receive views. We consider this Timeshare Advocacy Group™ Facebook a clearinghouse of articles written about all timeshare companies and are grateful to all our volunteer admins for both Facebook pages.

Now a look back to what I wrote December 26, 2016 with updates

Timeshare Lawsuits 2017

By Irene Parker, December 26, 2016

2017

Our Inside Timeshare mission is to offer timeshare owners accurate reporting on both the good and bad aspects of timeshare today. While we admit we bear more to the negative side of timeshare reporting, this thirteen page report from the US Department of Justice listing timeshare scams explains why:

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

The other reason is because the industry is not well regulated. Timeshare owners do not have the level of organization or funds necessary to compete with timeshare developer lobbyists. Lobbyists used to primarily direct their efforts towards influencing lawmakers, but more and more efforts are now being directed towards influencing US Attorneys General:

https://www.nytimes.com/2014/10/29/us/lobbyists-bearing-gifts-pursue-attorneys-general.html

Looking to 2017, we need to look back and reflect on timeshare’s unresolved and continuing legal battles. Timeshare developers, former timeshare sales agents and  solicitors, timeshare owners, federal and state regulators and advocates continue to weigh in on possible changes that will make timesharing more owner friendly and less predatory.

Will the final piece of this legal and regulatory puzzle result in a less aggressive and deceptive industry – or will practices continue unabated and unchecked resulting in more of the same?

conference

 Westgate Update 12/29/17: After the presidential election the CFPB dropped the Westgate investigation. President Trump is close friends with the Siegels, Westgate owner David Siegel was seen campaigning next to the candidate in 2016. That’s Mr. Siegel to the left of Trump. Charles Thomas reported on the timeshare the Trump family is launching in Scotland, reported as a golf course in the US during the campaign.  

trump

Here is King David’s house

https://www.bizjournals.com/orlando/news/2017/03/09/the-queen-of-versailles-jackie-siegel-i-may-want-a.html

But back in 2016

“Westgate is facing lawsuits in several jurisdictions and a Consumer Financial Protection Bureau Investigation. Allegations include fraudulent and deceptive business practices ranging from high pressure sales tactics, failure to honor timely rescission requests, elder abuse, illegal debt collection practices and impermissible telephone solicitations.” The Capitol Forum June 27, 2016

https://www.buzzfeed.com/matthewzeitlin/financial-regulators-are-looking-into-americas-largest-times?utm_term=.pbyQ8MPbx#.pmA2BeVyM

Colorado Attorney General

Colorado Attorney General Cynthia H. Coffman is investigating Highlands Resort, Sedona Pines and twelve other defendants for deceptive trade practices.

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

Wyndham $20 Million

Former Wyndham sales agent Trish Williams was awarded $20 million for exposing deceptive sales practices. While the amount will probably be reduced on appeal, it sends a message that courts and juries are listening.   

http://www.nytimes.com/2016/11/25/business/my-soul-feels-taller-a-whistle-blowers-20-million-vindication.html?_r=0

Hyatt

Candace Czarny and two other former Hyatt timeshare agents would like to see the industry improved. They are in year five of a class action alleging deceptive practice.  

http://insidetimeshare.com/whistleblowers-expose-timeshare-sales-tactics/

The Manhattan Club Update: Remarkably, New York AG Eric Schneiderman managed to ban the owners of The Manhattan Club from working in the timeshare industry and achieved a $6.5 million settlement. Rarely is wrongdoing admitted. However, attorney Douglas Wasser, representing TMC owners, said “Hundreds of members will be helped, but there are over 14,000 members.” Even a settlement this size will do little to curtail predatory marketing and sales practices. The investigation took years.  

Back in 2016  

Attorney Douglas Wasser represents 30 Manhattan Club defendants.

“To my knowledge there has been no dismissal of any Manhattan Club proceeding at this point.  The NY Attorney General investigation is proceeding, and the motion to dismiss a currently pending class action suit has been adjourned to January 5, 2017 for now. Three prior class action suits at the Manhattan Club have been dismissed.  But, at least for the time being, the current class action still survives,” Mr. Wasser reported November 15. 2016

http://www.reuters.com/article/manhattan-club-ruling-idUSL1N18U0DL

 Marriott Vacation Club Racketeering Update: Most disturbing of all, political and legislative maneuvering in Florida resulted in a change in the definition of timeshare, seemingly in an attempt to circumvent the merit of the case, according to attorneys involved with the case. That was not the end of it. We will hear more about this case in 2018.  

“The Marriott racketeering lawsuit seeks to abolish Marriott’s points program, which attorney said is unique among timeshare companies. It also seeks the return of fees and costs paid by buyers.” Paul Brinkmann reported October 13, 2016 for the The Orlando Sentinel.  

http://www.orlandosentinel.com/business/brinkmann-on-business/os-marriott-timeshare-racketeering-20161013-story.html

Diamond Resorts Update: A judge ruled in favor of arbitration in the billion dollar lawsuit filed against the company, and Congress reversed the CFPB ruling that would allow class actions. Diamond Resorts is one of the only timeshare companies to have a class action ban in their contract, forcing arbitration. Arbitration is binding and private. Lawsuits filed are public record.  

A recent class action was filed against Diamond Resorts:

https://topclassactions.com/lawsuit-settlements/lawsuit-news/348667-diamond-resorts-class-action-high-pressure-timeshare-sales-deceptive/

Matt Daniel Finazzo, et al. v. Diamond Resorts International Club Inc., Case No. 5:16-cv-02256, in the U.S. District Court for the Central District of California.

holI don’t mean to be the Grinchess that stole Christmas, so to end on a positive note,

People are listening!

Charles Thomas and I are hearing from people all over the world who are joining forces to work towards:

⦁ A legitimate secondary market

⦁ Less aggressive and deceptive selling

⦁ Less predatory lending

Thank you from timeshare owners to our regulators and lawyers working to protect us. Since last year we have found a few more self-help groups we are confident are on the side of the timeshare member and are not industry influenced.

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/

So that is 2017 in a nutshell, if this coming year is anything like the last we will be seeing many more stories like these.

Inside Timeshare thanks all those who have contributed to the articles and also to all the readers and those who have contacted Inside Timeshare for help and advice. If you require any information on any company that has contacted you or you may be thinking of using but need to know about them, contact Inside Timeshare and we will point you in the right direction.

We wish you a prosperous New Year, enjoy your celebrations and we will be with you in 2018.

 

money

Money Vs Morals

A Fraudulent Timeshare Sale can pose a National Security Threat

One Marine sacrifices, not only his money and his security clearance, but also his air unit command, as a result of believing a timeshare sales agent.

Secretary of the Navy, Richard Spencer, former Marine Corp pilot and investment banking and capital market underwriter, was also president of Crossroads Investment, LLC, a leading venture capital and private equity fund-of-fund investment firm.   

http://www.navy.mil/navybio_ldr.asp?id=1001

NNSA

December 27, 2017

By Irene Parker

Inside Timeshare received an alarming response in response to last week’s article about Samuel Melendez. Mr. Melendez spent 21 years in the U.S. Army, working with soldiers and colleges to teach them chemical, biological and nuclear defense. A Diamond Platinum member, he alleges he and his wife Delores were up-sold by deceit and bait and switch by Diamond Resorts top selling sales agent Rick Casper at DRI’s Polo Towers resort.

Inside Timeshare has been informed one Marine lost more than his money and security clearance. He lost his air unit command, as a consequence of believing a timeshare sales agent. He was forced into foreclosure which jeopardized his security clearance. We will not name the Marine who lost his air unit command, or the timeshare company, because Inside Timeshare has received reports directed against four timeshare companies offering members of our armed forces deals like the ability to rent for a profit, the ability to easily sell vacation points, or buy vacation points at a special military discount price that does not exist. Fifteen active duty and retired military and law enforcement personnel allege they were sold by deceit.

Marine

Former Marine Jeff Diehl describes how his Vacation Village sales agent over promised the income that could be generated from renting his week.

Jeff Diehl

http://insidetimeshare.com/fridays-letter-america-30/

Jeff expressed outrage after hearing a fellow Marine lost his command post due to predatory timeshare sales. He sees such tactics as a threat to our national security. “It would be easy for anyone, seeking to do our country harm, to get hired to sell vacation points in an effort to remove an armed service member from their command post,” said Jeff. Jeff is encouraging service members to write to the Secretary of the Navy Robert Spencer and Commandant of the Marines Robert B. Neller, as well as other directors of our armed forces.

I fear Secretary of the Navy Robert Spencer, a former top venture capitalist, may have conflicting feelings about how Diamond Resorts, owned by Apollo Global Management, achieve their sales target. Apollo is the third largest private equity company. Secretary of the Navy Spencer is a former Marine Corp pilot and a former investment banking and capital market underwriter. He was also president of Crossroads Investment, LLC, a leading venture capital and private equity fund-of-fund investment firm. Mr. Spencer was sworn in August, 2017. Apollo manages Diamond as a fund of funds.  

Our fifteen Timeshare Advocacy Group™ military and law enforcement members have mobilized as a unit of armed forces to put an end to timeshare’s predatory sales and marketing targeting the military. Jeff, a retired Marine and disabled, is the unit commander. All fifteen allege they were sold a timeshare by deceit and bait and switch. Four are worried about losing their security clearance. Four are disabled.

https://www.mca-marines.org/gazette/2017/11/242nd-marine-corps-birthday-message-commandant-marine-corps

Given dismal regulatory enforcement, we fear the only court open to any timeshare buyer alleging deceit is the court of public opinion, so in addition to 15 members of the Army, Navy, Coast Guard, Air Force and Marines, alleging they were victimized by Vacation Village, Bluegreen, Wyndham and Diamond timeshare sales agents, four members of our media outreach committee will assist our military in an effort to reach mainstream media.

Diamond Resorts is offering free passes to the military and to first responders for their upcoming invitational golf tournament to be held in Orlando January 12 – 14. Model and golf pro Blair O’Neal is featured.  

https://www.insidethegate.com/2017/12/military-first-responders-to-receive-complimentary-tickets-to-third-annual-diamond-resorts-invitational/

USN

Navy computer technicians Amanda and George Jones are also worried about their Navy security clearances. Amanda and George say they were told by two Diamond sales agents, at two different locations, there are many companies that specialize in refinancing timeshares. Banks will not finance timeshares. They too could be forced into foreclosure and lose their security clearance, unable to afford the 18% timeshare loan interest rate.

Amanda and George Jones were featured in last week’s article. Mary Bowling, former #2 top selling Diamond Resorts sales agent, describes in a lawsuit, how the deceptive “price freeze” works.

Amanda and George Jones

http://insidetimeshare.com/tuesday-slot-irene-3/

Here is the “price freeze” script

Case 1:17-cv-00562-DKW-RLP filed in Hawaii District Court Page 10 of complaint

#43 Owners Update is deceptive because it is to sell points.

#44 Customer is told the current “list price” but the agent has to see someone else.

#48 the sales agent has customer sign a form indicating they were updated and the agent has to have the manager sign off.

#49 the sales manager has reviewed all prior customer contracts and the manager falsely states the customer was given a “price freeze” but none exists.

#50 (In bold) because of the “price freeze” only today can the customer buy for the discounted price.

#51 (In bold) the price given is the real price planned from the outset.

#52 the “price freeze” never existed because (a) The special deal available to this customer only is available to anyone and (b) Urgent to buy only for today

#54 this is lucky news for the customer – brand new information!

#55 the sales agent waits for the customer to “step in”

George and Amanda Jones “step in”

We went to an orientation in Orlando presented by DRI sales agent Jonathan Pineda at DRI’s Resort Mystic Dunes March 2017. (This is the second complaint Inside Timeshare has received from our readers directed against Mr. Pineda) We ended up purchasing an additional 4000 points for $15,732. Our loan balance $13,271.16 is financed at 18.6794%. Jonathan (like our first Virginia DRI sale agent), said both loans could be refinanced and combined by companies that specialize in refinancing timeshares. He said we would have to wait until we made our first payment (long after the contract rescission period). When we asked for a company name, Jonathan said we could google it.  

We were told we were buying our second purchase in Orlando at a price point that was almost unheard of and was not being offered to any new Diamond customers right now. “I can’t believe your first sales agent didn’t tell you about this price from the first purchase!” Jonathan said.  If we did not buy that day we would lose out and would go from $2.85 per point to $10 from that day on. He said not to go to any future promotional events because it would change our price point. Jonathan said parents had died and the children did not want the points so DRI was reselling at this low price.

Jonathan also said that we needed to get to Gold so that we could pay our maintenance fees with points. We have since learned only Platinum members can use points to pay maintenance fees at $.04 per point. He said it would be worth it to spend all our savings so that we would not have to pay maintenance fees. We were not comfortable so we only bought 4000 points.

USArmy

Samuel Melendez, Army veteran

http://insidetimeshare.com/nightmares-timeshare-street/

Mr. Melendez is the eighth Rick Casper Platinum DRI member to reach out to Inside Timeshare, and the only complainant not to have been resolved. The Melendez complaint was dismissed. Mr. Melendez said he received an email from their DRI Consumer Advocate hospitality agent, with the family’s initials on their contract, confirming the oral representation clause.

Platinum members are Diamond’s most loyal customers. They are unsuspecting because they have dealt with the company for years without major complaints until their encounter with Rick Casper or others with questionable business practices.

We’re not sure if Rick Casper is still with DRI. Like Elvis, some members report Rick Casper and Wadji Kassas (another name frequently mentioned) are no longer with the company, while others tell us Casper and Kassas are still working at DRI. I can imagine them holed up in a special Platinum bunker.

Inside Timeshare also published the story of army veteran Terry Carter, diagnosed with blood cancer. Terry lived next to a burn pit in Iraqi. Bluegreen offered this family a loan cancellation but no refund. Terry says he will not give up without a fight. Sold in a group presentation, promised the ability to sell their timeshare at a profit should they need to sell, the family is demanding a 50% refund. Bluegreen’s defense is the family used the timeshare for 19 days since making their first purchase in 2013. They stopped making loan payments in July.

Terry Carter http://insidetimeshare.com/tuesday-slot-irene-2/

One of the worst upsell stories was reported to Inside Timeshare by Karen Vartan, another disabled vet. She was contacted by DRI marketing in San Diego. As a Platinum member for more than five years, Karen was hosted by the Diamond Resorts East Coast Mystic Dune Sales Team in Arlington, Virginia. Karen says she was told if she purchased 25,000 additional DRI points, added to her exiting 57,000 points she would have 82,000. But if purchased today only, double points – 165,000 – allowing Karen to be able to pay her maintenance fees with points left over to travel. The program does not exist. Diamond’s response was again to provide Karen with her initials on her contract acknowledging that Karen “did not rely on any oral representation to make her purchase.”

Canada is also represented in our military victim report  

Canada

Roxanne and Terry Hurley

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

Inside Timeshare directed Roxanne and Terry Hurley to Diamond Resorts Consumer Advocacy department over a year ago after the family reported they lost their entire life savings to DRI. Chalk it up to a bad decision, but having served in the Canadian army their entire career, they have nothing left. DRI did provide some help. We are not lawyers, so are not privy to the terms, but the family thought it would be alright, not violating the non-disclosure agreement, to admit they are still DRI members. Roxanne’s mom’s condition has worsened since she reached out to us. With no secondary market, their savings wiped out, their dream vacation future turned into a financial tragedy.

homeland

Law Enforcement is also at risk

Lela Renea is a Florida detective trying to work with Bluegreen to resolve her complaint.  Inside Timeshare, back in July, published Detective Renea’s article describing how she feels she was a victim of a Bluegreen bait and switch. We will not use the word “alleged” because if anyone knows they were baited and switched, it’s a detective.  

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

Scotty Black, MS Criminal Justice, also works in law enforcement. Inside Timeshare will publish Scotty’s battle with Diamond Resorts in an upcoming article. Detective Renea and Scotty could also lose their security clearances if forced into foreclosure.

There are others who have moved on. We will not republish their articles or mention their names, as they have signed a mutual release agreement, agreeing not to say anything bad about Diamond Resorts.

When will this industry wake up? Never, I fear if there is not some federal enforcement. Members cannot even file a complaint effectively with the weakened Consumer Financial Protection Bureau if the timeshare company finances the loan because, as not the actual lender, there is no drop down CFPB menu choice to select a timeshare company. Only banks are listed.

monay v morals

According to FBI agents I spoke with, and several attorneys, hiding behind the oral representation clause is not legal but continues as a hamster wheel because there is no federal timeshare enforcement. In our opinion, state enforcement is, in some states, influenced by powerful lobby dollars. With so little enforcement, unscrupulous sales agents have little to fear. Lie to make the sale, force the member into foreclosure, take back the points, resell for full value to the next consumer.

Virginia Attorney General Mark Herring has dismissed all Diamond Resorts complaints, submitted by members who contacted Inside Timeshare, despite Arizona Attorney General Mark Brnovich issuing an against DRI accusing the company of violating the Arizona Consumer Fraud Act. The AZ AG office received, according to a source, 400 complaints, and an additional 500 complaints after the press release.

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

We do not dispute there are many timeshare members, having not yet experienced a life crisis, who use and enjoy their vacation points. We know there are honest timeshare companies, like Disney Vacation Club, and honest timeshare sales agents, but it would take another lengthy article to list the lawsuits that have evolved, like the Wyndham whistleblower Trish Williams $20 million jury award describing TAFT days – tell them any blank think on slow sales days.

At least timeshare members, those who find Inside Timeshare or one of the self-help groups listed below, are not silenced and isolated.

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/

help

          

 

nightmare

More Nightmares on Timeshare Street

Today’s article is rather disturbing, it highlights how members of the armed services and veterans are being targeted by unscrupulous sales agents. For people who put their lives on the line, this behaviour is particularly obnoxious.

Timeshare Wars

Samuel Melendez, our Advocacy group thanks you for your service to our country

troops

By Irene Parker

Diamond and ARDA seek to destroy me. I know that sounds melodramatic, but sources tell me it’s true.  I’m confident this will happen sooner rather than later. The industry and ARDA’s answer to our advocacy efforts is to behead the messengers rather than examine the business practices of top selling agents. I’m told one executive even commented, “They are victimizing the uneducated,” in regard to Timeshare Advocacy Group™ and our efforts.

Please read the American Resort Development Association’s (ARDA) Code of Ethics and Eron Grant’s article about the code before reading the following ten reader reports about their allegations of deceit.

http://www.arda.org/ethics/

http://insidetimeshare.com/fridays-letter-america-14/

Diamond Resorts and Bluegreen each give $1 million a year in the form of voluntary “opt out” donations to the timeshare lobby, a PAC, called ARDA ROC. Members are told it is a nonprofit that helps timeshare members. It is doubtful many members even know what the letters ARDA ROC stand for. Marriott’s contribution is an “opt in” donation. It took several calls to have my $7 removed from my account. When I called in November, I was told it was a delinquency. Having researched timeshare for over two years, I was able to determine the $7 was moved from one account to another. I suspect it was to have me forget about it as it mushed into the 2018 invoice.    

In a span of ten days, Inside Timeshare has been contacted by seven active duty and retired military, describing how they say they were defrauded by predatory timeshare sales agents from four companies.  A 100 page summary of 249 complaints against timeshare sales agents and companies is available upon request by regulatory authorities. Of the 249 complaints, 233 are against Diamond Resorts.  I am a Diamond member. I did not choose to do business with Diamond. We were acquired in the ILX Arizona acquisition. If I were instead a Bluegreen member, 233 out of 249 complaints would be against Bluegreen. Bluegreen members have their own Advocacy group supporting members who want out of their Dream Vacation that can become a Nightmare when a life crisis occurs.  

troops2

Today we thank Samuel Melendez who spent 21 years in the army training soldiers, working with colleges, teaching chemical, biological and nuclear defense. When a military family is forced into foreclosure because they were lied to about being able to sell back points or finance at a lower rate, they don’t just lose their money. This can jeopardize their security clearance and their job.  Amanda Jones, featured in Tuesday’s article, has suggested individual base commanders be informed in the hope they will ban service members from attending timeshare presentations and events. “The Diamond sales agent that sold us points said he was a Marine. If he is not, that’s stolen valor. Base commanders need to be aware of the predatory nature of timeshare sales. My husband George and I, Navy computer technicians, feel we were victimized.”   

The Tuesday Slot with Irene

If seven members of the military, describing how they say they were defrauded were not enough in a week, Gay and Ed Brewer called me yesterday. My husband and I owned a bioavailability pharmaceutical research laboratory, but I have heard more grave medical conditions in the last two years assisting timeshare members, than I did in ten years as president of our company.   

Gay Brewer, 74 and Ed Brewer, 77

First, here is Diamond’s Rebuttal to my article written for Jim Cramer’s TheStreet about Apollo’s acquisition of Diamond dated June 30, 2016.

It is also incorrect to state that Diamond Resorts is “not interested” in liquidity in the resale market for timeshares because the company profits from “reclaiming” vacation ownership interests that are defaulted on by the customer. To the contrary, Diamond Resorts understands that customers experience life events that change the circumstances from when they originally purchased vacation ownership interests. That is why the company not only permits resales, but we also recently announced a new “Transitions Program” to launch soon, and will allow those in good standing to relinquish their points to the company in a simple, safe and respectful manner.

https://www.thestreet.com/story/13624491/1/is-apollo-returning-to-its-junk-roots-with-its-acquisition-of-diamond-resorts.html#2

The snag is “in good standing” because almost all timeshare members contacting Inside Timeshare say they were pressured into high interest rate loans. All timeshare companies can and do cancel loans. I’ve come to learn it is a matter of who wears down whom first.

According to Gay Brewer,

Ed’s heart stopped beating three times this past year. He has had a prior heart attack. He has had a Pacemaker defibrillator implanted which has fired three times. He cannot fly on an airplane or be exposed to high altitudes. He is monitored 24/7 by a Holter monitor. We had to evacuate our California home due to the Liberty fire. At present we are receiving 12 collection calls a day (six each) from Diamond’s collection agents.

Deneice Vargas, another Diamond member in foreclosure (her husband Louis is diagnosed with Bell’s palsy), told me “When DRI Consumer Advocates are not busy advocating for members by researching and providing the member’s initials on the fine print, in response to “the sales agent said”, they make collection calls.” The oral representation clause may make this legal robbery, but Social Media is eventually going to catch up. Several attorneys have told me the oral representation does not allow timeshare companies to get away with sale agents who lie, but there is virtually no enforcement. State enforcement is spotty at best.

The Brewers were Monarch owners. Like so many, they were told they had to give up their deeded week. This was not true. Four or five contracts later, after the last up-sell at Diamond’s Polo Towers Resort, they decided they regretted buying points due to disappointment in availability. While I find good value in Arizona and Orlando using points, limited availability is a major complaint voiced by Diamond and Bluegreen members. The Brewers have written to DRI Consumer Advocacy:

Diamond Resorts Consumer Advocacy

We are asking our loans be cancelled due to medical and financial hardship. We were told we would not be able to use our Monarch week unless we bought DRI points and that our Monarch week was worthless. We were never told of the option to deed back the week to DRI. Due to the burden of medical bills, we have not made payments since July and will not be able to make future payments.

We contacted Exit Timeshare as they guarantee timeshare release but they said they would charge us $28,000. I contacted Irene Parker. She told us to contact Diamond Resorts Consumer Advocacy instead. She said DRI Advocates have helped many in our situation. We were not aware there was a DRI Advocacy program.

Please contact us as soon as possible. It was never our intention not to meet this obligation, despite the fact that there was never adequate availability when we tried to book and we were never told of the option to deed back our Monarch week. We have learned that on TUG Timeshare Users Group, DRI is accepting more than 95% of requests, if in good standing.  

Thank you for your consideration.

Gay Brewer

army

Samuel Melendez Response to DRI Advocate Ben from Irene Parker

Mr. Melendez, DRI Complaint #207/233, is the eighth Platinum member to contact Inside Timeshare alleging financial institution fraud, deceit and bait and switch by DRI agent Rick Casper. The depth of corruption and the degree of criminality is now over my head, based on Karen Varten’s and Samuel and Delores Melendez report preceded by 231 others. Mr. Melendez and Ms. Varten have both reported a negative outcome.  

The Melendez family Edward Jones financial planner contacted me, so I am responding on the family’s behalf. I retired from Edward Jones Hawaii. Their EDJ financial planner had researched timeshare a little and found a law firm offering legal assistance for well over $10,000. He asked me if he should refer the family to this lawyer. I have nothing against the firm he mentioned, but I told the EDJ broker to hold off because I have referred seven other Rick Casper Platinum up-sells to Diamond Resorts Consumer Advocacy and they have helped all of them. They reported a positive outcome, albeit one needed the assistance of the Arizona Attorney General. What did Mr. Melendez receive from their Diamond Consumer Advocate as a response? Basically, they received a reminder of the oral representation clause, and their initials on the fine print, despite seven other identical Rick Casper complaints from members who received positive outcomes.

I spent a good two hours on the phone Monday with the FBI. My new neighbor is a federal prosecutor on sabbatical from California. I asked him for advice, but he only knows about murders. After speaking with the FBI (for the fourth time), and a few lawyers, I am convinced the oral representation clause does not hold water when used to hide behind. The FBI explained what it’s going to take, so we are filing complaints first on the FBI website IC3.gov and then orally, on the FBI tip hotline, found on the FBI website. Rick Casper is not the only DRI sales agent pitching bogus resale and maintenance fee programs that don’t exist. We have recently received complaint about a Las Vegas sales agent by the name of Adam Mendenhall offering point upgrades that would allow paying maintenance fees at $.30 per point. This program does not exist. DRI sales agents that make $1 to $2 million a year in commission tend to get more attention.  

One of our core advocates is a Tampa detective. She has advised us to file with the Nevada Real Estate Division. She was duped by Bluegreen. Like the detective, Scotty Black, DRI Complaint #164, works in law enforcement and has a MS in Criminal Justice. At least I have some help.

George and Amanda Jones, DRI Complaint #211, a married couple living in Virginia, are Navy computer technicians. Scotty, George and Amanda cannot afford their timeshare because of being told it would be easy to get their timeshare refinanced at a lower rate because the DRI sales agents told them there are many companies that specialize in refinancing timeshares, among other allegations. Forced into foreclosure, they could lose their security clearance and their job.  

Last week I was contacted by seven members of the armed forces, active duty and retired, four DRI complaints. Only the Air Force is not represented. Karen Varten, DRI Complaint #219, a Platinum up-sell, was contacted by DRI Marketing San Diego, hosted by Florida DRI sales agents in Virginia. Karen owned 57,000 points. She was told if she bought 25,000 additional points (totaling  82,000), if purchased today, she would have double points so 165,000 points to cover all maintenance fees and still have points left to travel. What was the response to her complaint? She was provided her initials on the contract.   

Preying on the young and old is bad enough, but Mr. Melendez taught our young men and women in the army how to defend themselves against biological, chemical and nuclear weapons. He sent a lot of those young people to war, and some of them did not return, protecting (alleged) predators like Rick Casper and, as the reports below offer compelling and compounding evidence, Diamond Resorts as well. Circumstantial evidence is still evidence.

Mr. Melendez has filed complaints with the FBI and the BBB. In the unlikely event DRI will help this family, please contact him by Wednesday, before we publish this article. There would be nothing that would make me happier than to end the year with a happy outcome for someone who spent 21 years teaching soldiers how to be protected from biological, chemical and nuclear weapons, instead of forcing this family to fork over – more than $10,000 the family will need to pay an attorney to get them out of this mess if DRI does not help them. After the last Rick Casper up-sell, their monthly payment has escalated from $431 a month to $2200. They told me they told Mr. Casper they were worried about passing this burden on to their heirs.  

All of the Platinum members listed below liked DRI, but now tell me they think this is the most crooked company in existence. I feel a little like Martin Luther, thinking the Catholic Church would appreciate his exposing corruption in the Catholic Church.  ARDA has had the same reaction as the Pope did then. A copy of all reports is sent to ARDA’s General Council and CEO in the hoping they will read their Code of Ethic.  

Irene Parker

Seven other Rick Casper Platinum up-sells totaling $819,000 including Mr. Melendez $133,000.

1 CL $75,000

During our meeting we were told about all the new changes that had been discussed at the Dinner that would allow us to sell our points. My husband has Cancer so all that was going through his mind was trying to make a choice that would help me later on if the Chemo doesn’t work and when Rick Casper convinced him this was the answer that’s all my husband heard. When we were in that office he was Stage 4. He has Colo-rectal Cancer that has spread to his Liver and Lungs. Our Las Vegas trip was something we wanted to do before my husband started his treatment.

I don’t understand how the DRI finance team could even approve us for a $75,000 loan for Timeshare Points when we had been turned down from two different companies while trying to refinance our house just this past year. Both requests were for under $100,000.

2 Nancy Callahan, age 69 $142,000

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

3 KK, age 61 $117,000

We have a picture of Rick and pitch

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

4 RB, age 66 $75,000

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

5 JH, age 56 $132,000

“The main benefit that he presented was the ability to convert points directly into cash at $0.30 per point. If at any time during the year we had leftover points we could be reimbursed for those points in cash.  All we had to do was contact Dan Percy and he would process the transaction and put the money on our reloadable Visa card.”

I continued to ask questions about each benefit so that I would be certain.  I worded questions differently to see if I would get the same answer.  I threw out this scenario; “If at the end of the year I have 30,000 points still sitting in my account, you’re telling me that I can get reimbursed cash for these points at $0.30 per point.”  His response; “Absolutely – You contact Dan Percy and he will load $9,000 onto the Visa card.” We purchased 40,000 points to get us to the level of “Super Platinum”.

6 AC, age 68 $55,000

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

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

We contacted Richard Casper by email on April 7, 2017 because we need to sell the 20,000 points. We received an autoreply stating to contact VP Dan Percy. We talked with Dan Percy on April 14, 2017. He stated that Diamond Resorts sales personnel don’t assist people who need to sell points and are not allowed to provide any company names that buy and sell timeshare.

In addition, during our sales presentation with Richard Casper July, 2016 we asked about combining our eight contracts. He advised that any free and clear points sold on the resale market will have the same benefits except loyalty level as long as no more than 20,000 points to one individual and it would be better not to combine the points. He stated that many Gold owners would be happy to buy 20,000 points at the lower price to become Platinum owners.  

7 JM, age 61 $90,000

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

Mr. Casper said I had to transfer back to US Collection and if I owned 100,000 points I would be unofficially known as a double platinum member and I would be able to sell any unused points in November and December each year back to Diamond at 30 cents per point, as DRI could sell those points annually to other members. Mr. Casper said this was closely regulated by the authorities. Mr. Casper said by selling these point back to DRI at 30 cents per points I could pay some or all of my maintenance fees for that year and any years to follow. Mr. Casper said this would allow my children not to have to pay maintenance fees.  

“You are really passing your children a bill.  We have a new program if you reach me in November to let me know what you did not use. Diamond will buy them back at $.30 for that year only to, ‘put them back in the kitty’. We need the points because we can sell them to other people who need them.” He illustrated the money we would be paid on a piece of paper.  “What are you waiting for? This is a no brainer,” he said. Mr. Casper convinced me to return to the US Collection the 20,000 points I had transferred in Hawaii 2015 due to beach erosion. I purchased an additional 30,000 points. I now owned 115,000 points.

In November 2016 I called Rick Casper to inform him I had 80,000 points I wished to cash in so that I would receive $24,000 (at 30 cents per point) as Mr. Casper illustrated during our sales presentation.  However, he denied any knowledge of any such arrangement. I explained I had a guest with me at the time, S L, who heard everything he said.  .

Mr. Casper said the reason for the 30 cent per point program was due to the sale of Diamond to Apollo. Mr. Casper said Mr. Cloobeck wanted to do something for members who owned over 100,000 points to show his appreciation so he included the 30 cent per point program in the terms of the Apollo buyout.  SL and I clearly remember this conversation

My current loan payment at the time of the presentation was $1,650 per month. Mr. Casper multiplied that by 12 totaling $19,800 in payments annually plus $14,000 per annum in maintenance fees or $33,880 for annual maintenance fees and loan payments combined. He divided this figure by 12 resulting in $2,816 per month. In the 50,000 additional points Mr. Casper offered, he stated it would only cost an additional $400 per month or $4,800 per year. If I sold back the additional 50,000 points at 30 cents per point I would receive a check back for $15,000.

As stated previously, when I contacted Rick Casper to sell back 80,000 points, he acted as if he did not know what I was talking about. I own a truck leasing business and S is a secondary school teacher. In no way did we misunderstand the figures above.  

There was undue pressure to open a Barclaycard. I explained that I did not need an additional credit card. Rick Casper insisted I open a Barclaycard. I feel the Barclaycard is part of the strategy used to play out what I consider to be a con. 

I then spoke with Dan Percy and then Seth Johnson. I thought Mr. Johnson and I were close to a resolution when he suddenly stopped responding to me.   

At a meeting in Palm Springs, CA between Christmas and New Year’s 2016, we met with someone who seemed to be an ombudsman about the poor accommodation we had been assigned. During the course of our meeting I mentioned Rick Casper. She closed her book and said, “This meeting is over.”  I asked several times why and she finally said Rick Casper was under investigation.

I want to return to the 50,500 points I originally owned prior to the deceitful sales. I was not unhappy with Diamond until the deception started.

8 The first Monarch complaint I read in 2015 back in the day when I thought the Cancun Resort was in Cancun.

Burns

Former DRI CEO David Palmer’s friend from ADW Capital, recommended Diamond’s stock because there is no secondary market. This is a mock interview I published after reading the above complaint, shortly before I received an executive perk agreement leaked to us about how Diamond founder and former CEO Stephen Cloobeck was allowed, as a perk, 50 hours use of the most expensive aircraft in the DRI fleet with the flight crew, for non-business use. Last time we checked, Mr. Cloobeck is running for Nevada Governor, lauded for donating $400,000 to the victims of the Las Vegas shooting.  

http://insidetimeshare.com/new-across-atlantic/

Leon Black, founder of Apollo Global Management, is worth $6.5 billion, according to Bloomberg. David Palmer earned $19 million in two years, a small portion of the wealth generated for his family during his tenure as DRI CEO.  As a former stockbroker and financial planner, I have nothing against generating great wealth, but not like this.

Diamond’s response to the six military who say they were defrauded: Free tickets for military members for their next event.

https://www.insidethegate.com/2017/12/military-first-responders-to-receive-complimentary-tickets-to-third-annual-diamond-resorts-invitational/

 

letter-from-america

Friday’s Letter from America

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

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

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

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

 

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

tribunal-supremo

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

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

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

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

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

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

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

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

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

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

law

So on with this Friday’s letter

Timeshare Non-Disclosure Agreements

When they are fair and when they are not

 cloud

By Irene Parker

December 1, 2017

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

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

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

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

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

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

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

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

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

lady

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

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

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

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

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

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

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

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

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

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

ballchain

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

http://www.licensedtimeshareresalebrokers.org/

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

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

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

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

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

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

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

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

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

weekend cat

 

stop press 1

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

After publishing this also came in.

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

 

nightmare

The Never Ending Ownership: Another Nightmare on Timeshare Street.

Once again Tony Hetherington has highlighted the problem of timeshare ownership and the never ending membership. His article in MailOnline published 12 November (see link at the end for the full article), is the story of an elderly couple being hounded for £3,010 maintenance fees.

This couple are 80 years of age, they purchased their timeshare in 1993, this is now controlled by Cameron House Owners Club. Apparently they have been asking to sell since 2004, all maintenance fees had been paid upto 2012, when they returned their ownership certificates.

cameron logo

They have serious medical conditions and are unable to use the timeshare, they are also on limited pensions, so are unable to afford the ongoing costs. They are now being threatened with debt collectors if they do not pay.

Sounds a very familiar story, Inside Timeshare has been highlighting these types of cases for some time, especially those involving MacDonald Resorts, remember the case of Mrs B, which has still not been resolved even after nearly 2 years.

Mrs B and her sister are both in their 80’s not in good health and believed that their timeshare at Dona Lola Club in Spain had been transferred to a third party. Inside Timeshare has the notarised document that shows this to be the case. MacDonald’s refuse to accept this and are hounding them for around 3 years maintenance which they cannot afford to pay. Again the debt collectors have been sent in.

mcdonaldsresortlogo

In Spain these “perpetuity” contracts have been illegal since 4 January 1999, when Ley 42/98 was enacted. Under this law contracts must be for a minimum of 3 years and a maximum of 50 years. Many contracts for timeshares that have been sold since then which exceed the 50 year maximum are being declared null & void, with all the purchase price being returned. This law has been enforced by 69 Supreme Court rulings which all Spanish courts must abide by.

Timeshares such as MacDonalds and Cameron House use the perpetuity clause to lock in owners for ever, it also becomes part of their estate which is then the responsibility of whoever inherits the timeshare to continue to pay the maintenance. It doesn’t end there, it then becomes part of their estate, as so on it goes.

So as Tony Hetherington puts it “Even death does not bring an end to the bills. It could claim against your estate, blocking bequests to family, friends or charities, while it pockets annual fees for a timeshare that will stand unused”.

Some timeshare companies do have exit policies, Diamond for instance would have allowed this couple out free of charge under their exceptional circumstances programme, which this couple would clearly fall into.

MacDonald Resorts which has a very poor reputation on this matter, usually charges 4 years maintenance for release, but this is only offered every two years and is limited to participants on a first come first served basis.

These perpetuity contracts and the behaviour of these timeshare operators is totally unfair, at least Spain has addressed the problem, it is time for the Scottish and English law makers to address this and bring in the laws such as Spain to limit the duration of contracts and enforce reasonable exit programs. The industry cannot be trusted to do it themselves, until this is done we will be seeing many more cases such as this couple and Mrs B.

Follow the links below to Tony Hetheringtons’ latest article and his previous article from July 2014, the next two links are articles relating to Mrs B.

tony hetherington
Tony Hetherington

http://www.dailymail.co.uk/money/investing/article-5073153/TONY-HETHERINGTON-s-time-leave-Cameron-House-Hotel.html

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

http://insidetimeshare.com/illness-not-reason-surrender-timeshare/

http://insidetimeshare.com/bbc-scotland-investigates-problems-timeshare-contracts/

If you have any questions or concerns about similar circumstances, or have purchased in Spain and would like to know if you are eligible to claim, contact Inside Timeshare and we will point you in the right direction.

If you have been contacted by any company or are thinking of dealing with a company regarding claims or relinquishment and want to know if they are genuine, Inside Timeshare will help you find the information.

homework

letter from america

Friday’s Letter from America

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

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

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

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

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

CLA Logo

Now on with Friday’s Letter.

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

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

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

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

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

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

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

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

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

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

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

You be the judge of Marsha’s story.

How Buying a Timeshare can be Financially Devastating

Luke

Introduction by Irene Parker

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

November 10

By Marsha Young

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

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

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

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

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

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

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

sad

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

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

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

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

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

act now

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

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

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

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

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

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

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

Have a good weekend and join us next week.

weekend