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Embarc

The Tuesday Slot with Irene

Welcome to this weeks Tuesday Slot, today Irene Parker looks at what Canada is doing to protect consumers of timeshare, are the events in Spain shaping the Canadian legislators views?

If so this can only be good thing for consumers, change is necessary, Spain leads the way in this field and the more countries that use their model the better off consumers will be. The industry needs to change, if they will not do voluntarily, then it is up to the legislators to make them change.

While doing our usual browsing of the many timeshare related websites and blogs this morning, we came across this rather interesting piece in Mindtimeshare, regarding a new cold calling company and timeshare claims.

Reclaims Yard, with a caller going by the name of Bob Cosgrove, who calls those who were taken in by bogus holiday clubs and resale companies. According to Cosgrove there is money set aside and waiting for them in respect of what they paid out. That even if the consumer doesn’t have any paperwork, that is not a problem.

According to Cosgrove, they do not expect any money from the consumer (no doubt that will come later to cover “TAXES”), but the consumer will be paid out by cheque, being paid out directly from some fund or other.

The telephone number they use is 0115 8242 356 which is a Nottingham code, they also use the email address [email protected] which as we already know is just another of those free email providers and is not linked to any website.

The interesting fact is that Reclaims Yard Limited, Company Number 07722606, is a genuine company, although according to Company House records has an Active order to Strike off.

This company has nothing to do with timeshare, they are in fact specialist in reclaiming, restoring a selling “interesting and unusual” pieces of the past, reclaiming building materials and architectural salvage.

They have also published on their website a warning regarding the fraudulent use of their name regarding the timeshare claims:

IMPORTANT ANNOUNCEMENT:-

PLEASE NOTE THAT WE ARE ABSOLUTELY NOTHING TO DO WITH SPANISH PROPERTIES,  TIMESHARING OR ANY OTHER TYPES OF FOREIGN INVESTMENTS OR RECLAIMING FUNDS.

THIS IS A SCAM!

OUR ADVICE IS TO NOTIFY THE POLICE IF YOU RECEIVE ANY COMMUNICATIONS REGARDING THIS.

WE ONLY TRADE IN RECLAIMED (PREVIOUSLY USED) BUILDING MATERIALS AND NOTHING ELSE.

PLEASE SEE OUR NEWS PAGE FOR FURTHER INFORMATION…….

https://www.reclaimsyard.co.uk/

Once again, we see a fraudulent operation using the name of a genuine company to give themselves credilbility when the consumer does a quick internet check. We cannot emphasise that when making these checks it is not just to see if they are registered but to actually look at the company name that is being used.

Now for today’s article

Quebec Canada Bill 178: An Act to amend various legislative provisions concerning consumer protection

187.13 A contract relating to timeshare accommodation rights is deemed to be a service contract

A contract related to timeshare accommodation rights is considered a service contract. You may resiliate your contract for other reasons, and you have other rights and recourses.

Resiliate: fait d’annuler, de résilier un contrat canceling , termination
The verb resiliation means “To draw back from a contract”
https://dictionary.cambridge.org/dictionary/french-english/resiliation

By Irene Parker
August 7, 2018

Once again the nature of the perpetual timeshare contract comes under the legislative microscope, this time in Quebec. Perpetual contracts are not harmful in the case of your home or car, but with little to no secondary market for unwanted timeshares, the consequences of signing a perpetual timeshare contract has financially devastated many of the 515 families that have contacted Inside Timeshare seeking release. Many members have been scammed by timeshare exit companies and listing agents promising, but not delivering results.  

Among other provisions, Quebec Bill 178 defines a timeshare contract as a service contract. This could have lasting consequences for Canadian timeshare buyers who have felt trapped by the perpetual timeshare product. Many timeshare members are saddled with high interest rate loans and some with higher interest rate credit cards issued by timeshare companies.   

Under Bill 178, a service contract can be cancelled under liberal conditions. The profound implication boils down to the ability to cancel the timeshare contract if the purchaser is not getting the benefits of ownership. According to those familiar with the legislation, not getting benefits could be due to medical conditions, availability, or a host of other reasons.    

This is not the first time Canada has ruled on the definition of a timeshare. According to this 2017 ruling, the Canadian Court of Appeals defined a timeshare more like a country club than real property.

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

http://insidetimeshare.com/fridays-letter-canada/

Spain ended perpetual timeshare contracts.

Spain was the first country to rule that perpetual timeshare contracts are illegal. In Spain timeshare contracts purchased in perpetuity, floating weeks and points, have been deemed unlawful by the Supreme Court. To date, Spain has ruled in favor of the consumer in a whopping 129 Supreme Court victories.

Marriott Vacation Club (VAC U.S.: NYSE stock symbol) filed an 8-K Other Events, as reported by Market Exclusive July 19, 2018. One of the events was mention of Spain’s Supreme Court rulings invalidating timeshare contracts.

A series of Spanish court rulings over the past several years invalidating timeshare contracts have increased our exposure to litigation and such litigation may materially adversely affect our business and financial condition.

https://marketexclusive.com/marriott-vacations-worldwide-corporation-nysevac-files-an-8-k-other-events-4/2018/07/


Notes from the Quebec Bill 178
http://www.assnat.qc.ca/en/travaux-parlementaires/projets-loi/projet-loi-178-41-1.html

Introduced 18 April 2018 Quebec National Assembly
Passed 6 June 2018
Excerpts from the bill:  

Bill 178 defines a timeshare contract is a service contract and not a purchase agreement involving a property transfer.

Bill 178 (2018, Chapter 14) An Act to amend various legislative provisions concerning consumer protection

The Act proposed amendments to the Consumer Protection Act to introduce a protection regime governing contracts relating to timeshare accommodation rights.

  • The Act introduces rules specific to the making of that type of contract and sets out the compulsory information such a contract must include. It grants consumers the right to resolve the contract without charge or penalty within 10 days of signing it and specifies the circumstances in which that right is extended to one year.
  • The Act imposes on merchants who enter into a contract relating to timeshare accommodation rights the obligation to establish a payment schedule for each year covered by the contract…..Furthermore, the Act introduces a disclosure obligation related to promotion made by merchants engaged in the business of such contract, prohibits certain stipulations and provides that such contracts may not be automatically renewed.   

    Division V.3
    Contract Relating to Timeshare accommodation rights


    187.13 A contract relating to timeshare accommodation rights is deemed to be a service contract

    187.14 A contract relating to timeshare accommodation rights must be evidenced in writing. In addition to the information that may be required by regulation, it must contain or state the following, presented in conformity with the model prescribed by regulation:
  • (h) the term and expiry date of the contract;
  • (j) the fees to obtain an accommodation right, their amount on an annual basis if they are calculated on a basis other than annual, and the total of such amounts for the entire term of the contract.
  • (t) a statement that the merchant may not collect payment from the consumer before beginning to perform his obligation;
  • (u) the right granted to the consumer to resolve the contract at his sole discretion within 10 days after that on which each of the parties is in possession of a duplicate of the contract; and
  • (v) the other circumstances in which the consumer may resolve or resiliate the contract, any applicable conditions and the time within which the merchant must refund the consumer.

    187.15 Any stipulation that results in the automatic renewal of a contract relating to timeshare accommodation rights is prohibited.  

    187.16 The merchant may not make the entering into or the performance of a contract relating to timeshare accommodation rights dependent upon the entering into of a credit contract.

    187.21 The contract may be resolved at the discretion of the consumer within 10 days following that on which each of the parties is in possession of a duplicate of the contract.

    That period is, however, extended to one year from the date on which the contract is made in either of the following cases:
  • the contract is inconsistent with any of the rules set out in section 25 to 28 for the making of contracts, or one of the particulars required under section 187.14 does not appear in the contract; or
  • a Statement of consumer resolution and resiliation rights and a resolution and resiliation form that are in conformity with the model prescribed by regulation were not attached to the contract at the time the contract was made.

187.24 Any contract entered into by a consumer, even with a third-party merchant, on the making of or in relation to a contract relating to timeshare accommodation rights and that results from an offer, representation, or other action by the merchant who is party to the contract relating to timeshare accommodation rights forms a whole with the latter contract and is resolved or resiliated by operation of law at the time the contract relating to timeshare accommodation rights is resolved or resiliated.

In addition, the consumer may, with respect to a contract entered into with a third-party merchant and contemplated in the first paragraph, exercise directly against the merchant a recourse based on the non-performance of the contract or on the provision of this Act.

187.25 Within 15 days after resolution or resiliation, for the reason set out in section 187.26, of the contract relating to timeshare accommodation rights, the merchant must refund all sums paid by the consumer under the contract and under any other contract contemplated in section 187.24, including sums paid to a third-party merchant.

229.1 No person may, when making or promoting a contract relating to timeshare accommodation rights, make representations implying that the contract is an investment, unless the person gives the consumer a document showing the truthfulness of the representations.    

A contract related to timeshare accommodation rights is considered a service contract. You may resiliate your contract for other reasons, and you have other rights and recourses.


What’s next on the timeshare horizon?

The key word in 229.1 is “may” because in the U.S., the language in one state regulator’s ruling states “should” not make representations implying that the contract is an investment. What a difference one word can make.  

Thank you Irene for this very interesting piece of news, we do hope that others will follow in the footsteps of Spain and now Canada to put into place laws and regulations to protect consumers from the excesses of the timeshare industry. We can only wait wait and see.

From our warning of another fraudulent timeshare reclaims caller, this does really hit home that you must always do thorough company that contacts you or that you have found on the internet. Doing your homework is vital to protect yourself from scammers and fraudsters.

If you need help in checking if a company is indeed genuine, then use our contact page, Inside Timeshare will help you find the truth and point you in the right direction.

Remember DO YOUR HOMEWORK AND KEEP YOUR HARD EARNED MONEY SAFE!

The Tuesday Slot with Irene

Today’s Tuesday Slot is from Chantal Desjardins with the introduction and editing by Irene Parker, looks at the recent elections at Embarc (Club Intrawest) HOA board of directors. As you will see from this article it does not appear to be very fair. This is something we have seen in various elections at timeshare resorts in Europe over the years, so it is nothing new. In fact back in 2016 Inside Timeshare published the following article “Manipulation of votes by resorts and resort owners”. (see link below)

http://insidetimeshare.com/manipulation-votes-resorts-resort-owners/

Now for Chantals article.

Embarc (Intrawest) Diamond Resorts 2018 Election of Directors

Five times more members voting for me than closest rival –

Gives me a third place finish!

James Orr (incumbent) 421

Robert Reyes                    361

Chantal Desjardines       2293

And the winner is…..!     James Orr and Robert Reyes?

By Chantal Desjardins

June 26, 2018

Introduction by Irene Parker

Diamond Embarc members (formerly Intrawest) had the deck stacked against them in the recent Embarc HOA board elections, due to weighted votes in favor of the developer.  Diamond didn’t set it up that way though – Intrawest did in 1994 when they set up Club Intrawest incorporated in Delaware. Weighted voting provides a stranglehold on the club’s management & governance despite retaining less than 4% of the points.

If you check master declaration and bylaws for timeshares, often the cards are stacked in favor of the corporations retaining control of their boards through weighted voting on declarant points, all while pretending the individual members can influence an election by casting their “vote” in board elections.

When Intrawest researched timeshare governance and operating structure dating back to the early 90s, their governance structure was modeled after Disney Vacation Club, including the weighted votes for the declarant. Many points-based timeshares, especially large corporate ones, operate with very similar rules. Many members don’t realize this. Many pay no attention or don’t care. The member sponsored Club Intrawest Facebook has over 4,000 members. Voter turnout and support for Chantal was extraordinary as the numbers show, but she finished third.

This is legal – yes, but fair, ethical and moral – no, in the opinion of many timeshare members.

Chantal Desjardins’ comments about the election

www.citheownersgroup.org/2018results

Five times more members voting for me than closest rival gives me a third place finish!

How is that fair, you may ask? Well, it isn’t! This election was once again only “window-dressing” on the part of Diamond Resorts to make it appear that members have a say in the running of their clubs.

Nonetheless, Club Intrawest Owners Group members – THANK YOU!

Although I did not get a position on the Embarc Board in this election, the result, given the unfairness of the “weighted” votes, is excellent! Thank you for voting as a block, for not splitting your votes! Because of this, it is readily evident to anyone looking at the results that the candidate who obtained by far and away the most member votes, came in third.

Over 5 times more members voted for me than for the closest “incumbent”, James Orr. Over 6 times more members voted for me than for the second “incumbent” Robert Reyes. Over 3 times more members voted for me than for both incumbents together. In fact, 25% more members voted for me than all 7 other candidates added together.

And yet – James Orr and Robert Reyes are once again Embarc board members for another 3 years!

Although it is said nowhere in the run-up to the election, the declarant, the entity that “holds” DRI points as a member, has 15 times the voting power per point than that of individual members. They are very careful not to state this fact in the emails sent concerning the election – both before AND after. They are very careful to make it appear that members, who have the vast majority of the points, will have a chance to get their candidate onto the board. This is one of the most misunderstood aspects of Embarc membership. Even as they vote, are engaged, most members don’t understand that when the Declarant (DRI) votes, our member votes are made virtually worthless.

When one breaks down the numbers given in the pre-election emails as well as the results, the chart of the “count/weight” looks like this:     ​

Once we all understand how this all “works”, it becomes evident and imperative that members must join forces to oblige DRI to give us what is our due – the number of board members that correspond to our points owned.

We need to increase our voting power so that it is at least half that of the Declarant (DRI).

Why do we only need half + 1?

Because when the board has elections for incumbent positions, we can cast all our votes (2 positions = double the votes) for 1 person, while they must put half of their total entitlement on each.

How do we do this?

  • By each of us doing our part by recruiting members into our group each time we go to a club
  • By pushing back against the unfair governance of our clubs by email, FB posts and raising awareness of the issues
  • By voting as a block each time we are called upon to vote
  • By demanding that elections information be posted on the Embarc member site, on the Embarc member Facebook pages, at the Clubs! DRI suppresses votes by only sending the information by email or nondescript postcard. It is a proven fact that emails from organisations have an “open rate” of less than 30% on average. Using only emails (and the undistinguished postal card) to announce elections, effectively allows DRI to suppress the vote while claiming to have done their duty.
  • By joining the new not-for-profit Embarc Owners Association when it is launched and consolidating our power.
  • By growing our numbers in the coming years, we can beat DRI at the election polls – and once we’ve done it the first time, we can do it again the following year – meaning that we CAN have 3 members on the Embarc board representing member interests. ​

What is the cost involved? Almost nothing! With a tangible result that doesn’t involve court costs and years of litigation!

That’s why I’m not disappointed in this year’s election results

I’m thrilled with our member engagement.

We WILL overcome – time and determination will allow us to achieve our goals.

Thank you all!

Chantal

Embarc election results are posted at the end of the article.

An update on Diamond’s Flamingo Beach Resort elections in St. Maarten

Diamond owns 72% of all the weeks at the Flamingo Resort and only one seat from the outside (that is not a Diamond employee) is elected each year. So the incumbent endorsed by the board won easily. There was discussion about adding a second seat and the board took this under consideration for future discussion.

Deeded owner Greg Guisti ran for the Flamingo Beach Resort board election held April 19, 2018 in St. Maarten. To paraphrase Greg’s explanation as to why a board should consist of member representations, “Timeshare members and owners have an expectation of what a good timeshare should be. Members are entitled to good communication and feedback, and that communication should include the voice of an actual owner or member.”

With the internet flooded with complaints directed against some timeshare companies, more than ever timeshare members need a more member friendly board to serve as a pipeline for communication.

Embarc 2018 Election Results

Thank you Chantal and Irene, it does make you wonder how the voting works, to get that number of votes and only come in third!

Had that been an election for government there would have been a very loud cry of “FIX” from the press and media. So the question is what happened?

I guess we can only read into it what we want because somehow I don’t think we are going to get any straight answers from the industry.

If you have any comments or questions on this subject or have had a similar experience either in the US or Europe, then use our contact page and let us know. Inside Timeshare is committed to informing all timeshare owners and vacation club members of what is actually going on, it may not please the developers or the industry, but who actually cares if they get upset!

Friday’s Letter From Canada

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

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

bogus clipart

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

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

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

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

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

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

Tenerife

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

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

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

homework

Tauro Beach

The Anfi man made beach project.

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

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

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

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

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

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

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

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

Now on with our latest contributors.

Club Intrawest v. Canada

Club Intrawest (Embarc)Timeshare

Must Pay Millions in GST Back Taxes

Following Recent Federal Court of Appeal Decision

gavel

July 21, 2017

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

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

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

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

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

www.citheownersgroup.org.

Judgment of Federal Court of Appeal:  see link

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

canadian flag

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

Other member sponsored Diamond Advocacy groups include:

DRIP launched by over 1,000 British Diamond members

http://drip.enjin.com/

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

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

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

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

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

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

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

weekend cat

Arizona Attorney General’s “Assurance of Discontinuance”

In today’s article from Irene Parker, we take another look at the Arizona Attorney General’s settlement with Diamond Resorts. It is a simplified version on the 37 page  “Assurance of Discontinuance”, It also goes on to explain who is eligible for thesettlement and gives details on how to claim. It also include the date of the deadline.

This article is a prelude to one that will be published later on “Consumer Protection Week” which is starts on 5 March and ends on 11 March. So watch this space.

An Arizona Attorney General’s “Assurance of Discontinuance”

Is the AOD a Blueprint for the Timeshare Industry?

March 5 – 11 is Consumer Protection Week

By Irene Parker – March 1, 2017

objectives

The following Facebook groups are reaching out to those eligible for Arizona Attorney General Mark Brnovich’s $800,000 Settlement with Diamond Resorts. Given the success of the Diamond Resorts Owners Advocate Facebook, assisting Diamond owners who face legitimate concerns, other Advocates have come forward to launch a Timeshare Advocacy Group Facebook available to all timeshare owners.

These groups go beyond helpful posts to actually intervene and assist those unaccustomed to interacting with governmental regulatory agencies and loss mitigation departments. Most are owners struggling under the burden of maintenance fees they can no longer afford.

In 2010, the board of Diamond’s PVC (Premier Vacation Club) amended the Membership Plan to allow an increase to a maximum of inflation plus 25% per year from the original maximum of inflation plus 10% per year.

Diamond’s US Collection has capped Maintenance Fees increases to 25% per year. A15000 point example and history of Maintenance Fee increases provided in the Assurance of Discontinuance:

$1,214 – 2007

$1,348.50 – 2008

$1,686 – 2009

$1,850 – 2010

$1,923.50 – 2011

$2,018.50 – 2012

$2,045.50 – 2013

$2,330 – 2014

$2,404.70 – 2015

Buyers sign a perpetual contract with virtually no secondary market.

Sales are made same day without being allowed sufficient time to comparison shop, as one would if buying a car or house. Certainly the expense and upkeep of a timeshare is equivalent to that of a major purchase.

Owners facing legitimate timeshare issues should consult the following:

Timeshare Advocacy Group

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

A Diamond Resorts Owners Advocacy Facebook was launched for Diamond Members with legitimate concerns so they can seek help without fear of censor.

Diamond Resorts Owners Advocacy Facebook

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

Both Facebook groups provide updates on legal and legislative issues.

arizona-ag-seal

A time sensitive issue concerns Arizona Attorney General Mark Brnovich’s issuance of an “Assurance of Discontinuance” due to the complaint filing period which ends the end of April.

Not everyone wishes to wade through a 37 page “Assurance of Discontinuance” (AOD) so we have generalized and summarized the key points. To the best of our knowledge, this Assurance of Discontinuance is the first document of its kind to offer a prospective blueprint for timeshare as a whole. In an effort to promote timeshare reform, we encourage ARDA, lawmakers, and timeshare developers to make this a blueprint for the industry.

The actual Arizona Attorney General press release, link to filing a complaint and link to the Assurance of Discontinuance:

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

Who is Eligible for the Arizona Settlement?

A Consumer who files a written complaint against Diamond Resorts with the Arizona Attorney General, another law enforcement agency, the Better Business Bureau, or the Arizona Department of Real Estate after January 1, 2009 that is received by the Attorney General’s Office prior to the Effective Date or during the Filing Period. The Filing Period is expected to end by the end of April.

The provisions of the AOD are limited to Consumers who did business with Diamond at Sales Centers in Arizona and with Arizona-domiciled Consumers who attend Sales Presentation with Diamond outside of Arizona.

Our Blueprint Proposal

Meeting chart

A Quality Assurance Program – Independent from Sales and Marketing

Timeshare sales agents may not deviate from Sales Materials;

Timeshare sales agents may not make oral representation at the point of sale inconsistent with purchase documents:

  • Pertaining to the use of Points to book travel arrangements such as flights, rental cars, or cruises claiming such arrangements are comparatively lower in cost than if the Consumer would spend cash for the same travel arrangements, unless such representations are accurate; 
  • Claim a non-deeded timeshare interest such as Points is a deeded property or may be considered an investment in real property;
  • Claim Points appreciate in value;
  • Claim Points may be used to pay Maintenance Fees or that Maintenance Fees will be reduced by the purchase of additional Points, unless such representations are accurate;
  • Claim Consumers may rent out Points for cash through online or print advertising to the general public unless such representations are true;
  • Claim the company will buy back Consumer’s Memberships unless the company offers a buy-back program;
  • Claim there is a secondary market for the sale of Points, and that such secondary market has a certain level of sales volume, or provides Consumers with the ability to re-sell Points, unless such representations are accurate.
  • Represent to Consumers that the sales agent would assist them with selling their Membership, unless a resale program exists.
  • Claim Consumers will be able to obtain a loan from a private lender to refinance a loan.
  • Claim interest paid on a points based product is tax deductible unless such representations are accurate. Vacation membership products are not considered “qualified home” according to IRS Publication 936.
  • Provide any information that may be construed as tax advice;
  • Represent to Consumers that Sales Presentations typically last 90 to 120 minutes if the norm is several hours.
  • Call a sales presentation an “informational meeting” to learn about changes to a resort if such meeting includes a Sales Presentations for the purpose of upgrading or up selling the consumer.
  • Overstate availability

What happens to the sales counselor when they do not adhere to the above?

How will Consumers know if sales agents violating the above declarations are reprimanded, suspended or terminated?

This can only be accomplished by forming viable and vibrant consumer groups reaching out to other owners. One such Diamond Owner sponsored Facebook was formed by the original owners of Club Intrawest acquired by Diamond, now known as Embarc.

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

How do Diamond owners get released from their timeshare contract?

What is the “Relinquishment Program” and is it different from Transitions?

“Transitions” is Diamond’s relinquishment program publicly announced by Diamond on May 4, 2016. Unlike the AOD “Relinquishment Remedy Program”, Diamond’s Transitions or Relinquishment Program is offered, on a case by case basis, at Diamond’s discretion and does not constitute an obligation under the AOD.

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Preparing a narration for a governmental agency or a timeshare loss mitigation department is difficult for some, especially if English is the Member’s second language. We’re here at Inside Timeshare and all owner groups to listen, educate, disseminate and advocate. Contact us!

Whether you are in Europe or the US, Inside Timeshare and our associates at the various facebook groups, would love to hear from you. It is only with your experiences are we able to inform others that there is help and hope.

Timeshare could be a great product, but we need to let the industry know that it has to change, by putting the members first. We call on the industry to listen and learn from your concerns, work with us to make the change.