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The Tuesday Slot

Since we published last week’s Friday’s Letter from America, Inside Timeshare has received some very good news from one of our readers. It was concerning the “FAKE” law firm Amador Galeca Abogados, this reader had paid them by bank transfer to start “legal” proceedings against Royal Sunset Beach and Andrew Cooper. When she became suspicious, she found our articles on this group, which are part of the Litigious Abogados family of “FAKE” law firms.

We advised her to contact her bank and see if they could stop the transfer, this she did. Thankfully her bank has managed to do this and the money is now safely back in her account.

amador-galeca-300x191

She then received another call from this “law firm” asking why she had stopped the transfer and why she was not going to continue with the “case”. She told them in no uncertain terms that they were a “scam”, to which they replied, have you been reading the Inside Timeshare Blog? They are the ones perpetrating the scam!

Well, it is certainly a great scam, considering Inside Timeshare never receives or asks for any payment for any help or advice we give. To be a scam there must surely be some financial motive.

The only ones perpetrating a scam here are Amador Galeca Abogados along with all the other fake law firms this lot have produced. If Inside Timeshare is wrong in what we publish we ask this very simple question, YOU ARE SAYING YOU ARE A LAW FIRM, SO WHY HAS INSIDE TIMESHARE OR OUR LAWYERS NOT HAD ANY NOTIFICATION OF YOU TAKING ANY LEGAL ACTION FOR PUBLISHING FALSEHOODS?

The simple answer is, YOU ARE THE FAKES, YOU ARE THE ONES WHO ARE DEFRAUDING VULNERABLE ELDERLY TIMESHARE OWNERS. THE AUTHORITIES ARE ONTO YOU AND WE WILL KEEP ON PUBLISHING ABOUT YOU AND EVERY NEW WEBSITE, FAKE LAWYERS NAMES THAT YOU COME UP WITH. THAT IS OUR PROMISE TO ALL OUR READERS!

Now on with this Tuesday’ article from Irene Parker.

Timeshare Lending Decisions

As Compared to Prenuptial Agreements

AB

By Irene Parker

October 10, 2017

Mesmerized by the thought of endless vacations, while on vacation brain, staring at a finger pointed to a low monthly payment, the last thing on the mind of a timeshare buyer is “What type of lending, if any, should I select in the event my decision to spend thousands of dollars for a vacation plan does not work out?”  

The decision made about how to finance a timeshare purchase has a dramatic impact on what happens if a buyer learns later they made a mistake.

Hopefully, you didn’t make a mistake. There are timeshare companies that work hard to keep up industry standards and provide a viable, if limited, secondary market.

Last week we published an article about timeshare Foreclosure. Out of 160 US timeshare complaints Inside Timeshare has received, the majority are about high interest rate loans and even higher interest rate credit cards. The toxic and compounding effect of this combination can spell financial disaster. It can mean the down payment is financed at around 25% and the loan 12% to 19%. Many tell us they were told any bank would refinance a timeshare at a lower interest rate only to learn banks do not finance timeshares. Comments include, “Banks would be crazy not to finance your timeshare. It is worth $500,000!” when it was worth nothing on the secondary market”. One complaint even stated specifics – the name of the bank, the term and an interest rate of 6%.  

At the last timeshare presentation I attended, the sales agent told us, “When you get home, take out a home equity loan. No one would finance at our interest rates.” However, transferring to a lower interest loan like a home equity loan may not be the right decision either.

Inside Timeshare published its first Nightmare on Timeshare Street article one year ago. The family was struggling to pay maintenance fees. As so many of our readers have reported, a common solution, as suggested by unscrupulous sales agents,  is to sell the existing member more points as this will afford them maintenance fee relief or the ability to sell points. Unfortunately, the programs were non-existent. Fortunately this family walked away from this deal. Unfortunately, they had taken the financing advice and took out a home equity loan transferring the loan to a third party lender. When the kids said they wanted nothing to do with timeshare, and the maintenance fees escalated, they were forced to deed back $60,000 worth of vacation points and were left with a $33,000 home equity loan and a high school graduate starting college.

Should timeshare buyers ever consider third party lending?

Savage

Timeshare Attorney Mike Finn of the Finn Law Group says NO!

Mike posted this comment after reading “Foreclosure, Is it Survivable?”

http://insidetimeshare.com/timeshare-foreclosure/#comment-10000

Another tremendous and informative article! I think the one major, major admonition I have for anyone, client or not, who has purchased a timeshare with developer financing and may want to reconsider the merits of the purchase (and, of course, assuming the rescission period has passed), do not, I repeat, do not under any circumstances, attempt to re-finance the purchase via a home equity line or a transfer to a lower interest credit card, or, for that matter any other methodology that has as its objective, re-paying the developer with other third party money.

For that matter don’t even think about using your own funds either! Assuming you soon may conclude that you do not want to continue with your timeshare obligation for whatever reason, legally based or economically driven or a combination of both, you will come out much better in the long run (no matter the developer’s interest rate) if you are left dealing with the developer as your creditor, as opposed to any other third party you opt to transfer that debt to! If you have any sort of legal argument that the resort debt was accompanied by any sort of misrepresentation or fraud in its inducement at time of contract of purchase, you will lose the benefit of that position with any other third party creditor save the resort!

Respectfully,

Mike Finn

This leads me to the comparison I made in today’s title, comparing a timeshare lending decision to a prenuptial agreement. Being in love is a little like being on vacation. A marriage often starts with a vacation. With love all around, the idea of signing an agreement that casts doubt on the “till death do us part” seems distasteful.

From what Mike Finn says, if you must buy a timeshare, begin with a negative end in mind. Buy it on the developer’s high interest rate nickel because in-house loans are easier to cancel. For my part, if this is the appropriate strategy, then a timeshare should never be purchased. Would I buy our timeshares again knowing what I know today? Yes, I would buy Port Elsewhere in the Ozarks and Maui Hill fixed-week timeshares again. Ambiguous right-to-use programs I think not.

Can we stop unethical timeshare business practices?

I doubt it. In Florida alone, $70 billion a year flows into the state in tourist dollars. Lawmakers, some influenced by lobbyists, have turned a deaf ear. Regulation is by design at the state level, disguising and diminishing the scope of the problem.  For some industry players, the culture of deceit on the front end of the timeshare sale is so ingrained it is the established norm. Until the problems associated with perpetual contracts with no secondary market and deceitful and overly aggressive sales tactics are acknowledged and addressed, buyers should consider carefully the choice between buying a timeshare and booking online. To my knowledge not one timeshare company has ever admitted wrongdoing.

The following self-help Facebook pages offer members a safe place to express concerns and share experiences. Petitioning a timeshare company can be frustrating and intimidating. Contact Inside Timeshare or one of these self-help groups if you have a positive or negative timeshare experience to share.

We seek to provide 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/180578055325962/

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

we can help

Thanks Irene for that article, also our thanks to Mike Finn of the Finn Law Group for your contribution.

Inside Timeshare welcomes contributions to our pages from you the readers, we are also looking for more contributors from Australia, Asia, Mexico Central and South America, India and anywhere that timeshare consumers exist. Let us all get together and share our experiences, the industry will only change when we all speak with one voice.

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letter from america

Friday’s Letter from America on Thursday

Welcome to Friday’s Letter from America on Thursday, yes that is correct, we are publishing a day early as we are travelling to the US on Friday.

Inside Timeshare is visiting our American colleagues, with Irene and Don meeting me at Orlando airport, while there we have arranged to meet with several attorneys including America’s very own Timeshare Crusader Lisa Ann SchreierWe will also be meeting many other people and hopefully having a few cold beers.

beer

Inside Timeshare is also pleased to announce a new collaboration, for sometime CLA International based in Dubai, has been getting their website up and running. They have been following the articles published on Inside Timeshare and have asked if we would run their news section.

They wanted an independent voice rather than their own take on things, Inside Timeshare has agreed to supply those articles, so many of the articles regarding international timeshare news we publish will be posted on their website. These will be from the many contributors who are now writing for Inside Timeshare. We also hope to add more from the following areas:

India (Goa), Thailand and the surrounding Asian area, Australia, Mexico, Central and South America, we welcome any contributor who would like to publish their experiences, news and views on the world of timeshare. You can contact us via our contact page or direct to admin@insidetimeshare.com

contribute

Update from Europe

Once again, Inside Timeshare has heard from another reader who found our articles on the Litigious Abogados family, namely Amador Galeca Abogados.

The reader had a call regarding their timeshare at Royal Sunset Beach, with the name Andrew Cooper again being named as the director being taken to court with all his personal property and assets being seized. For a sum of just under 1000€ they could be part of the case.

The reader then made a bank transfer, but then decided to check out the name Andrew Cooper, finding our previous article. When the reader contacted us we explained how the scam operates, they immediately informed their bank and the bank is now trying to stop the transaction.

The reader explained that when her husband became too ill to travel Royal Sunset actually took back the timeshare, so they no longer owned. Because of this there would not be any basis for a claim in any court.

This story just goes to show once again, before you pay any money, check who you are dealing with. Hopefully the readers bank was informed in time to stop the money being transferred.

stop think proceed

We started the week with verdict from the courts against Palm Oasis (Tasolan), the following day the Supreme Court ruled on another case against Silverpoint in Tenerife, that made 64 rulings from this court on timeshare. In this case the court again declared the contract null and void, awarding over £99,000 plus a double deposit of £6,082 including legal fees and legal interest.

Then yesterday Wednesday 4 October the High Court in Tenerife ruled once again against Silverpoint and awarded over 67,000€ plus legal fees and interest to the client. This was then followed by the news the Supreme Court had just issued another sentence against Silverpoint, bringing the total number of cases won at this court by Canarian Legal Alliance to 65.

Now on with Irene’s article where she recounts our first meeting and her visit and interview with Canarian Legal Alliance. We have certainly moved on since that first meeting.

Canarian Legal Alliance and Inside Timeshare

The meeting of minds

Irene with CLA
Irene Meeting with CLA Staff Sept 2016

By Irene Parker

October 5, 2017

We are judged by the company we keep, so shortly after submitting my first article to Inside Timeshare my husband and I flew to Gran Canaria, Canary Islands to meet Charles Thomas and his Canarian Legal Alliance friends. It was not an easy trip since we boarded the wrong plane in Madrid and ended up in AMSTERDAM!

We stayed at Diamond Resorts Cala Blanca resort on Mogan. A Diamond sales agent in the US actually introduced me to Charles by sending me one of his articles. The staff at Cala Blanca could not have been nicer. I talked quite a while with the manager as he was the head of a resort employee union of sorts advocating on behalf of refugees he felt were being treated unfairly at a resort on the other side of the bay. One of the sales agents working at Cala Blanca and a friend of Charles is one of my Facebook friends.

In today’s timeshare world you can’t be too careful. Attorneys come in all ethical shapes and sizes. In addition to meeting Charles, I was able to meet with the CLA office manager Csilla, named business person of the year for Gran Canaria, several intake workers showing sincere compassion as they listened to timeshare accounts over the phone, and a few CLA lawyers. Since this July 2016 video clip CLA has achieved several more victories for EU timeshare clients – 65 Supreme Court victories to be exact as of October 4, 2017. Watching this video for the first time, I remember thinking if Cristina ever decides she doesn’t like law, she could find a job in the motion picture industry.

http://www.canarianlegalalliance.com/cla-latest-updates-video/

Timeshare today seems to have lost all sense of direction. True, we hear primarily from the disgruntled, but developer lawsuits flying back and forth between timeshare developers and transfer agents has left many timeshare members in a state of confusion. Who do you trust?

I trust CLA and am honored to have been asked to have my Inside Timeshare articles featured on the new CLA International website with Charles webmaster of the news tab. Our Diamond Resorts member sponsored Advocacy Facebook administrator and Economics Professor Michael Nuwer and Australian Contributor Justin Morgan submitted their comments for this article about the Apollo Global Management buyout of Diamond Resorts.

http://clainternational.ae/2017/09/28/who-is-apollo-what-is-apollo-two-diamond-member-consumer-advocates-offer-their-opinion/

Timeshare members need help. It has been widely reported many aging baby boomers (like me) are desperate to be released from timeshare. Some timeshare companies have launched surrender programs, like Wyndham’s Ovation program, but the vast majority of members contacting Inside Timeshare succumbed to high interest rate loans and credit cards. Thus, they are not eligible for voluntary surrender programs. Often they are forced into foreclosure. The problem is exacerbated when the member alleges they were deceived into buying a timeshare or upgraded for maintenance fees relief or buy-back programs that do not exist. Out of 157 complaints received (as of October 4), 143 allege deceit on the front end of the sale. The others can’t afford rising maintenance fees.

From our humble beginnings, as more members started helping other members, we called ourselves Timeshare Advocacy Group™ as members turned anger and disbelief into action and advocacy. Timeshare Advocacy Group™ started as an afterthought. A former timeshare sales agent contacted me and said they wanted to do a press release in Arizona. We needed a place where readers could respond.

Irina Allen stepped up to the plate. She is our Facebook page administrator.

admin lady new

Irina (Irene) Allen purchased over $500,000 worth of timeshare points to share with family, friends and clients. On the advice of a sales agent, Irene opened a RedWeek account and posted one ad to rent some of her points. She gave up this idea after she never got paid for the rental. Rentals are not allowed, according to company rules, but there are hundreds of rental ads anyway. She also was accused of opening an Airbnb account. Irene says she has never had an Airbnb account. She was expected to pay $2,400 per month in mortgage payments and $29,000 in maintenance fees for a year while her account was suspended. Resorts are exempt from the rule for promotional purposes. Thus, the resort was able to rent out Irene’s points at Irene’s expense.

At Timeshare Advocacy Group™ members also help members with regulatory filings and media outreach. We have Wyndham, Bluegreen and Diamond members working alongside former Hyatt, Westgate, and Diamond timeshare sales agents in an effort to reform an industry badly in need of reform. In addition to timeshare members, other Advocates, like blogger Lisa Ann Schreier, lend their support. Lisa Ann and Charles are both former timeshare sales agents.

In America, it’s not easy these days for opposing sides to talk to each other, but every once in awhile there is a glance of a Republican sticking their toe over to the Democratic side of the aisle. It is our hope there will be a day when developers will take the time to listen to what critics have to say instead of only focusing on ambulance chasing unscrupulous transfer and listing agents. It is my belief, until the deception on the front end of the timeshare sale is acknowledged and addressed, the court of public opinion is the only court open for the beleaguered and often financially devastated timeshare member learning their contract is perpetual and the secondary market limited at best. For some timeshare companies, there is no secondary market. What other investment or product exists that holds the buyer of a product hostage?

Charles Irene

Charles is winging his way to America tomorrow, so let us know if you will be in the Orlando area October 8 – 12. Or, let Charles know the next times you happen to be on Gran Canaria in the Canary Islands.

I am a former stockbroker and financial planner. After I retired from the brokerage business, I became a CASA Supervisor, writing court reports for Family Court on behalf of children in foster care. I have always had a problem turning my back on anyone who considers themselves a victim. There are many ways to volunteer time in retirement. Join us in our efforts to enhance timeshare accountability and transparency.

http://insidetimeshare.com/what-a-volunteer-does-for-nothing/

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That’s it for this week, tomorrow will be a long day as it is Gran Canaria, Madrid, Miami then to Orlando. I know Irene and Don have set aside a couple of days to show me some of the sights, so it will not be all work and no play!

We will however be trying to publish some articles while over there, so keep an eye on these pages.

Have a great weekend

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letter from america

Friday’s Letter from America

Welcome to another edition of Friday’s Letter from America, today Irene Parker asks the Florida Attorney General Pam Bondi, What about us? Ms Bondi seems to have a reputation for backing big business rather than the consumer, but more of that in Irene’s article. As usual we begin with what is happening in Europe.

CLA Logo

Some news which was breaking yesterday has now been confirmed, Canarian Legal Alliance issued a press release informing us of the latest Supreme Court victories.

Legal history has now been made with CLA achieving their 60th victory in Spain’s highest court, we say legal history as this is unprecedented. No other law firm has ever managed to get this number of cases through the Supreme Court. This is a fantastic achievement since their first victory in March 2015, in the past two and a half years they have not only made history but have also made law.

Their latest victories have been against Silverpoint, in sentence number 59, the court ordered the return of over 65,000€ plus the payment of First Instance legal fees and legal interest. The client’s contract was also declared null & void, which now makes them timeshare free with no more ongoing maintenance fees.

With sentence number 60, the same court ruled that the contract be declared null & void, ordering Silverpoint to return over 92,000€ plus Appeal Instance legal fees and legal interest. This now makes a total of 21 judgments from the Supreme Court against Silverpoint alone.

Then the following day, the Judge at the High Court Number 3 in Tenerife, followed the Supreme Court rulings declaring another client’s contract with Silverpoint null & void. The judge also ordered the return of over 11,000€ plus legal interest.

Not only must the clients be celebrating, but I will wager there was some celebrating going on in the Lawyer’s office!

amador-galeca-300x191

Following the publication of yesterday’s article on the new fake law firm Amador Galeca Abogados, we received an email from a reader who has already been taken in by them. Unfortunately they have already paid the Procurator a fee, but at least it was not a large sum, yet something prompted them to start checking the internet for information before they paid them next amounts.

As we said yesterday it would only be a matter of time before we found out the new name of the Procurator and the bank account they are using, here it is:

Procurator: Graham Ingum Gorrin

Address: C/ Layanva, Edif Colmenas, Oficina 2223, 38003, Santa Cruz de Tenerife.

Bank: Deutsche Bank Sociedad Anonima Espa, C.P.A. BCN, Ronda General Mitre 72-74 Barcelona.

IBAN: ES3900190172854010033761

As for the address of the procurator, searching on google and google maps it does not exist, so any post sent there will obviously never be delivered.

This reader has also supplied some new and interesting information, Amador Galeca informed them that the directors of their timeshare had pleaded guilty in court and that all their assets had been seized, not bad, it seems that all the directors according to this group of fake law firms plead guilty!

The amount paid was for a relinquishment through the Spanish courts, which needed to be done first before they could go to court for compensation. The strange thing is, once again it seems that the jurisdiction of the Spanish Courts now extends beyond the borders of Spain and encompasses timeshare in the UK!

These readers have been lucky, they have not lost a huge amount, they have also informed their bank who is going to issue an alert to all other banks.

This does prove the point, never believe what you are told, especially when it comes to timeshare,

IF IT SOUNDS TOO GOOD, STOP THINK AND DO YOUR HOMEWORK!

homework

Now on with Irene’s article.

Florida Attorney General Pam Bondi – What about Us?

Irma Iniki and Timeshare

most people

By Irene Parker

Friday September 22 2017

Florida Attorney General Pam Bondi expressed her outrage over price gouging during hurricane Irma. While her dismay is understandable and commendable, why has there been so little effort expended to come to the aid of Florida timeshare buyers alleging they were deceived into buying a timeshare? Nationwide there have been lawsuits and Attorneys General investigations too numerous to mention.

Ms. Bondi has been quick to investigate timeshare resale scams.

Florida Attorney General Pam Bondi has filed a lawsuit against a company she accuses of violating Florida’s Timeshare Resale Accountability Act.

Florida has a specific law covering timeshare resales because it has so many of the properties, whose owners are often desperate to unload them.

In this latest case, Bondi sued Prime Resorts International, based in central Florida. She accuses the company of making telephone calls to timeshare owners all over the country, telling them they have a buyer for their timeshare. She says the company also claimed to be able to guarantee the deal would close.

https://www.consumeraffairs.com/news/florida-sues-another-timeshare-reseller-031116.html

The Berkley Group

Sources tell us Ms. Bondi is investigating The Berkley Group. The Berkley Group owns Vacation Village Resorts. With a BBB rating of F, looking into this company is a start, but acting on only 110 out of 2,360 timeshare complaints filed from April 2012 to April 2014 seems underperforming at best.

https://www.bbb.org/south-east-florida/business-reviews/timeshare-companies/vacation-village-resorts-in-fort-lauderdale-fl-4003645/reviews-and-complaints

Ms. Bondi opened this resale investigation after receiving 85 complaints.

The attorney general opened her investigation after she said her office got more than 85 complaints, claiming to have lost more than $110,000. The suit seeks a permanent injunction against the company, consumer restitution, and a civil penalty of $10,000 per violation.

Inside Timeshare has received 144 timeshare complaints of which 130 allege they were deceived on the front end of the sale. The dollar amount in question concerns well over one million dollars. The 14 not alleging deceit say they seek relinquishment because they say they cannot afford the annually increasing maintenance fees. ARDA and the industry continue to ignore deception exists, and with lawmakers turning a deaf ear, the court of public opinion seems the only avenue open for families reporting how they have been financially devastated by their timeshare plan.

follow money

Timeshare revenue in Florida is a lot of dollars to tamper with.

As the state’s No. 1 industry, tourism is crucial to Florida’s economy – generating 23 percent of the state’s sales tax revenue and employing more than one million Floridians. In 2011, tourism was responsible for welcoming 86.5 million visitors to Florida and generated $67.2 billion in direct economic impact.

http://www.flgov.com/governor-scott-applauds-floridas-tourism-marketing-2/

The industry will be quick to respond that there are nine million who own timeshares. What difference does a couple hundred families make? It makes a world of difference to the families affected who have contacted Inside Timeshare.

Recently, the Finn Law Group took issue with the lack of disclosure provided to timeshare buyers. If feeling deceived, after spending $5,000 to over $500,000 on a vacation plan, families are shocked to learn their timeshare has no secondary market and the contract is perpetual. Contracts are deceptive in that they often state points can be sold. Buyers are not informed about the lack of buyers should they need to sell.

LARGO, Fla.–(BUSINESS WIRE)–An administrative petition has been filed against Florida’s Department of Business and Professional Regulation alleging that the agency’s approval of a request by timeshare developers to make statutorily mandated public offering statements available by providing an online address at the closing rather the furnishing hard copies violates Florida law.

http://www.businesswire.com/news/home/20170905006015/en/Finn-Law-Group-Files-Petition-Florida-Agency

Ms. Bondi appeared on Las Vegas Attorney Bob Massi’s Property Man Show in 2016 explaining how the Florida Attorney General’s office worked with ARDA and the Department of Justice to shut down timeshare resale or release scams. Mr. Massi encouraged timeshare members to contact a member of the Licensed Timeshare Resale Broker Association if they need to sell their timeshare. When I contacted LTRBA about selling our Diamond timeshare points, I was informed by several LTRBA members they know of no licensed LTRBA broker who will even accept a listing for our points due to secondary market restrictions.

https://www.youtube.com/watch?v=VHCdcS2Ds-U

Inside Timeshare has also started hearing from Bluegreen members. One member is Lela Renea, a Bluegreen member and a detective. Lela Renea says she was deceived into buying a timeshare. If a Florida detective, allegedly reports being a victim of deceptive sales, what chance does the average timeshare buyer on the street have?

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

When I wrote an article for TheStreet, Jim Cramer of Mad Money’s investment news service, challenging what is in my opinion gestapo like tactics demanding Diamond members stay vacationed, Diamond demanded a rebuttal, stating they understood life’s changes could render their product a liability so they were introducing a program called Transitions that would allow qualified members in good standing a way out. That was June of 2016, yet the company has yet to introduce the program. “Qualified” is the key word. Most members contacting Inside Timeshare have loans, and many allege they succumbed to high interest rate loans and credit cards after hours long aggressive sales presentations. A timeshare must be unencumbered to be eligible for any voluntary surrender program.

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

“Is Apollo Returning to its Junk Roots?” is the article Diamond found objectionable. Most remember the subprime mortgage crisis, but a decade earlier was the Drexel Burnham Lambert junk bond scandal that sent Michael Milken to jail for securities fraud. DBL founder and banker Leon Black filed bankruptcy on DBL only to reform and rebrand as Apollo Global Management, purchasing Diamond Resorts in 2016. If DBL liked junk bonds, which had some value, timeshare points that have no value the moment the contract is signed, should a buyer need to sell, must seem attractive.

Hurricanes and Timeshare

hurricane

One of the top complaints Inside Timeshare has received concerns upsells by timeshare sales agents on the US mainland selling against timeshare agents in Hawaii. This would be normal competition were it not for the fact the dueling agents work for the same company. Buyers tell us sales agents on the mainland side tell existing members they should not have purchased a Hawaii timeshare because of damages from hurricane Iniki that struck Hawaii on Kauai in 1992. They are encouraged to buy more points and transfer to US mainland points, despite Florida resorts included in their purchase. Obviously, Florida is at risk for hurricanes.

pam bondi 1      Ms. Bondi, please listen to us. The Arizona Attorney General has received over 900 timeshare complaints about Diamond Resorts:

http://insidetimeshare.com/arizona-attorney-generals-assurance-discontinuance/

Wyndham former timeshare sales agent Trish Williams was awarded $20 million by a jury concerning overly aggressive and predatory timeshare techniques:

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

Eric Schneiderman’s $6.5 million settlement with The Manhattan Club:

http://nypost.com/2017/08/17/new-york-ag-reaches-6-5m-settlement-with-manhattan-club/

In addition to member families,Charles Thomas at Inside Timeshare has heard from eight current and former timeshare sales agents alarmed at the escalation in predatory sales. The following comment made by a former experienced sales agent mirrors the others.

“I watched every day, agents selling DRI for double and close to triple what it was supposed to be sold for but management laughed and congratulated them for doing it.  The maintenance fees statement about buying more and using that to pay your maintenance fees was a practice that was encouraged, but be careful.  Some of the agents, who still work at DRI, would sell the program for $98k when it was only in the 50k range.  One of the guests came back to cancel but the agent said no worries, “I have it packed 40k but I’ll give then 15 off and still make a killing!”   This made me sick because these particular guests were in their late 70′ early 80’s.  I asked the agent if he had a conscience and he just laughed…if you can get them to pay more you’re a hero!!  They have the money!!

Deception actually goes back further than that.  We were told to pack the price for a trade in and imply that it was what they got back for their TS… we sold it for the regular price….they got nothing for their TS!”

(Charles Thomas, editors note: we have published on many occasions on the “stack and drop” tactic. This has been used for many years and we have seen it throughout Europe. It is used as a tool for upgrading or poaching other companies members. The consumer then believes they have had value for their other purchase).

It is our hope Diamond Resorts will listen and respond, along with Wyndham, Bluegreen and others, to improve timeshare sales today after the rise of “right to use” programs. In my opinion, such programs leave wide berth for misrepresentation and deceit.

The following are self-help Facebook pages representing over 1000 timeshare member families:

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

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

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

A few of the 144 families who have contacted Inside Timeshare:

Marsha, Ann and Marjorie

http://insidetimeshare.com/fridays-letter-america-18/

Bonita Hill

http://insidetimeshare.com/tuesday-review-clarity/

Eron Grant ARDA’s Code of Ethics

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

Irina Allen

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

Justin Morgan and Michael Nuwer June 30, 2017

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

Alan Callner

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

Detective Lela Renea

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

David Franks Chapter 4

http://insidetimeshare.com/fridays-letter-america-15/

Karen Garello Secret Shopper June 22, 2017

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

Romeo and Lily

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

Dr. Jeffries

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

Angela Johnson

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

Neina Orrillo

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

Barclaycard and Member stories May 17 2917

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

Marjorie Menacker

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

Eron Grant May 12, 2017

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

Barclays Bank Charles May 11, 2017

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

Nancy Callahan April 24, 2017

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

A Filipino Family April 13, 2017

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

Laurie Sabbagh March 17, 2017 Clarity Review

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

A Military Family March 6, 2017

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

The Hurleys January 25, 2017

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

Irina Allen January 13, 2017

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

Kathie Old December 6, 2016

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

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

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

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

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

Sylvia Saldana and the Barclaycard October 25, 2016

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

Hug Your Haters! By author Jay Baer on the importance of Social Media

http://insidetimeshare.com/customer-service-message/

need you

Will anyone listen? Author Jay Baer is to be keynote speaker at the upcoming October Interval International Shared Ownership Investment Conference, attended by developers and private equity firms. In Hug Your Haters, Mr. Baer strongly urges companies to listen. Members are hopeful, but doubtful, developers will listen to him.

Thank you Irene and those that proof read your article and gave advice, timeshare is a crazy world, which is such a shame as it is a great idea, with many who have enjoyed it for many years. There are some very good developers and resorts, but the reputation of the industry is being spoilt by a few.

Have a great weekend.

weekend-picard

         

 

letter from america

Friday’s Letter from America

This week’s Friday’s Letter from America is not the one we originally planned from Michael Kosor, this will be published in due course.

First a little news from Europe, only last week we told of the calls from HMRC informing people that they have money from the Spanish courts, one reader has sent us this information.

They were called by a Kipp Stuart from HMRC Accounting, this was with reference to a ruling at the Malaga courts, Kipp informed them that they were holding over £22,000 on their behalf, unfortunately as there was no paperwork then the funds could not be released. They were given reference numbers along with the following telephone numbers:

08713 581033 to confirm with HMRC

0034 602489947 for the Malaga Court

Wonderful, only problem, the 08713 number is not used by HMRC and also carries rather hefty charges.

The 0034 number is a Spanish mobile number and no court will issue mobile numbers for confirmation.

As we published before

HMRC DO NOT CALL PEOPLE WITH NEWS THEY ARE HOLDING MONEY ISSUED BY THE SPANISH COURTS!

On the subject of courts, it has been a rather busy, that lot at CLA have announced six more wins. There have been five in Tenerife, four of these against Silverpoint, with one of the largest awards we have seen for sometime. In this case the client was awarded over 67,000€ including legal interest and second instance legal fees with the contract being declared null & void.

The other case involved European Coast & sun Holidays SL, the judge of the Court of First Instance declared the client’s contract null & void, along with the return of over 15,000€, then as a double whammy he also ordered back payment of over 16,000€  double the deposit paid.

Then in Fuengirola at the High Court the judges reaffirmed a sentence from the Court of First Instance against Petchey Leisure, by awarding over 14,000€ plus interest and legal fees.

Back to Gran Canaria and the Court of First Instance in Maspalomas once again declared an Anfi contract null & void with the return of 21,000€ plus legal interest.

These are just some of the cases announced this week, it is certainly an expensive one for those companies.

Now on with this week’s letter.

The Deep, Dark, Dank, Obscured From View, But Very Lucrative Timeshare Developer Revenue Stream: Are Its Days Numbered?

money tree

By Mike Finn, Finn Law Group

Originally published by Inside the Gate

https://www.finnlawgroup.com/learning-center/timeshare-developer-revenue-stream-days-numbered

Clarifications in blue added by Irene Parker for non-legal minds (like mine)

September 14, 2017

We as consumers, with a certain level of understanding of business, probably attribute the lion’s share of timeshare resort revenue to two central factors: timeshare sales and timeshare rentals. As it turns out, there is a third major revenue stream that’s related to sales, but is an entirely separate source of revenue, and it’s a significant one. Depending on the nature of the initial purchase, whether it was a deeded interest, or more commonly over the past fifteen years or so, a “right to use” amalgamation of points, this shrouded revenue source may indeed also be in violation of certain state consumer rights statutes, including the Uniform Commercial Code.

I’m speaking to the universally accepted resort practice of the resort retaining every dollar received from a defaulting purchaser, even if the entire purchase price or an amount close to the total was paid over to the resort prior to the owner’s default. This would include a cessation of paying the purchase price, maintenance fees or capital assessments.

It’s not considered relevant, at least if one believes the purchase contract, to factor in the sometimes quite significant amount paid in up to the moment of default, in terms of any form of accounting back to the sum of money paid by the defaulting purchaser. It’s all retained by the resort pursuant to the purchase contract, as “liquidated damages”.

In other words, an unwitting purchaser could have paid in say $18,000 of his/her $20,000 purchase price (not to mention the additional payments of interest and annual maintenance fees), defaulted for any number of reasons and still be pursued by the resort as a debtor for the unpaid balance! Well, isn’t that appropriate, you may retort! After all, the purchaser has defaulted on a perfectly legal (on its face) promissory note obligation of $20,000 when only $18,000 has been paid? Well maybe, but let’s examine what happens next.

Foreclosure of real property and disposition of personal property are governed by different bodies of law. Real property foreclosure sale varies dramatically among the states. Personal property disposition is governed by each state’s versions of Article Nine commercially reasonable disposition.

I found this explanation of the difference in real property foreclosure compared to personal property distribution in Texas helpful:

Texas Real Property Foreclosure

Section 51.002, et seq. of the Texas Property Code defines the minimum statutory procedure that must be satisfied to properly foreclose upon real property. In addition to the minimum statutory requirements, the deed of trust executed by the debtor-mortgagor details the agreed contractual terms and conditions for foreclosure of real property.

Personal Property Disposition in Texas

Article Nine of the Texas Business and Commerce Code defines the minimum statutory procedures that must be satisfied to foreclose upon personal property. In addition to the Article Nine requirements, the security agreement executed by the debtor-mortgagor defines the contractual terms and conditions for foreclosure of personal property. Generally, personal property disposition must be commercially reasonable.

Commercially reasonable is the key concept here. We can all relate to selling a car. According to NOLO, there is no hard and fast rule on what “commercially reasonable” means. What is commercially reasonable depends on a number of factors.

The procedure, not the price, ultimately determines whether the sale is commercially reasonable. Whether a sale is commercially reasonable depends on four factors, the:

  • manner
  • time
  • place
  • terms of the sale.

Perhaps Mike’s concern as it pertains to timeshare foreclosure being commercially reasonable, as it applies to car sales, also applies to timeshare.

“There are times, however, when a private or “dealer only” sale may not be commercially reasonable”, such as in the following instances provided by NOLO. Two of the six points they mention seem to apply to timeshare:

  • the creditor has the ability to sell the car on the retail market
  • the creditor buys back the vehicle then resells it a significantly higher price.

What If I Believe the Sale Was Not Commercially Reasonable?

If you can demonstrate that the creditor did not sell your car in a commercially reasonable manner, you can raise that as a defense against any lawsuit brought by a creditor looking to collect on the deficiency balance. In some instances, if you can prove the sale was not commercially reasonable, the court may reduce or even eliminate your obligation on the deficiency balance.

http://www.nolo.com/legal-encyclopedia/car-repo-sale-was-commercially-reasonable.html

Back to Texas

Comparison of Texas Foreclosure Procedures for Real property and Personal Property

Real property and personal property foreclosures are dramatically different. Real property foreclosures are conducted on the first Tuesday of each month between the hours of 10:00 a.m. and 4:00 p.m. at the courthouse door in the county in which the real property is located, with a notice posted at the courthouse door, personal notice to the debtor, and filing of the notice with the county clerk, all 21 days before the foreclosure sale. These requirements are defined by § 52.001 of the Property Code and are unique to Texas law. Personal property foreclosures are conducted under § 9.504 of the Texas Business and Commerce Code, which generally requires a commercially reasonable sale. The requirements of Article Nine of the Texas Business and Commerce Code are followed, with some minor variations, by all states except Louisiana.

Thus, real property foreclosures in Texas are very defined and structured procedures unique to Texas law which do not require the sale to be commercially reasonable. On the other hand, personal property foreclosure sales are not structured by statute, but they must be commercially reasonable as to every aspect of the disposition, including method, manner, time, place, and terms. The apparent conclusion is that although the legislature has specifically defined the procedures that must be followed to dispose of real property, personal property may be disposed of in any manner the secured party elects, as long as the sale is in all respects commercially reasonable.

The differences between real and personal property foreclosure procedures and requirements have had interesting effects upon lenders and borrowers. The notice provisions for real property foreclosures mandate procedures known to both the lender and the borrower. The procedures provide certainty as to the mechanics of the sale. Both lender and borrower are offered an opportunity to dispose of property, with each fully understanding when, where, and how the sale or purchase will occur.

In contrast, the nebulous standard of a commercially reasonable sale leaves both the lender and the borrower uncertain as to the ultimate and satisfactory sale or purchase procedure for personal property. Article Nine attempts to place the burden on the secured lender seeking a deficiency to sell in a commercially reasonable manner, whatever that may be in the particular circumstances found by the lender. Likewise, the debtor has no knowledge of how the lender will proceed with foreclosure and has the burden of proof, if attacking the sale, to show that the sale was not commercially reasonable. The more certain real property foreclosure procedures seem to work more effectively for both the lender and the borrower.

http://www.lenders360blog.com/2008/10/real-estate-foreclosure-vs-ucc-personal-property-commercially-reasonable-disposition/

Commercially reasonable according to Cornell Law School: A disposition of collateral is made in a commercially reasonable manner if the disposition is made:

(1) In the usual manner on any recognized market;

(2) At the price current in any recognized market at the time of the disposition; or

Wait a minute here!

face

“At the price current in any recognized market at the time of disposition” means my Diamond Resorts points should be sold for nothing. Not one of the 64 members of the Licensed Timeshare Resale Broker Association will even accept a DRI listing and even Howard Nusbaum, CEO of the timeshare lobby ARDA, has been quoted as saying modern timeshare is a right to use product so the member should not expect any value back. I think Mike really is onto something!  

Other timeshare companies may argue that they do have a secondary market, but even those fortunate to be able to sell their timeshare, frequently sell them for pennies on the dollar of their original investment.

(3) Otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.

https://www.law.cornell.edu/ucc/9/9-627

Now on the edge of my seat, we continue with Mike’s narration:

In our original example, is the developer out the missing $2,000?  Ask what happened to the object of the $20,000 purchase? Well look at that, the actual property never, even for a moment, left the possession of the developer! My goodness, the developer just re-sold the interest to another brand-new buyer for a fresh new $20,000! So now are you still comfortable with the original purchaser being pursued for the missing $2,000? Perhaps sued, almost definitely having derogatory credit reporting, not to mention harassment from bill collectors? So what exactly happened to the first purchaser’s $18,000 paid to the resort? Is any of it accounted for with maybe a portion returned to the guy who ended up with nothing except perhaps a lawsuit?

Not a chance in Hades! The so-called ‘extra revenue stream’ is now actually an extension of the existing stream to the developer from sales, and sales, and maybe still more sales. How many times can the same unit interest (or bloc of points) be resold over the life of the project?

The distinction (and thus a portion of the reason for my overly dramatic title) is that typically sales revenue in say a condominium project is recorded once, and the revenue is, of course, offset by the cost of acquisition of land, construction costs, marketing costs, etc. and the net amount remaining after those costs is the developer’s profit. However, in the case of the timeshare developer, the original buyer covered those costs in their initial transaction, therefore the new additional piggy-back to back transactions didn’t come with any more land acquisition or construction costs, and therefore essentially came only with very little new or fresh costs of sale beyond the re-marketing costs.

light bulb

Well wait, you might say, this can’t be right! You sure this practice is universal? Yes? Well then, are you sure this unconscionable practice is even legal? Good question, and one wherein the answer to that question may be evolving and it’s not necessarily the laws in place that are changing, it’s the timeshare product changeover, the newer form of the property that is being marketed by the developer that is creating a change in which already existing laws are now perhaps becoming relevant to the timeshare purchase, and by doing so may be enforced by the previously out of luck defaulting purchaser. In fact, it may well be that the same old existing law pendulum may be swinging back in favor of the consumer!

I reference the fact that over the past decade plus a few years, there has been a change in the product that the timeshare industry is selling. Just after the turn of the century, the industry has backed off of selling of the deeded weekly timeshare product, which was indisputably a real estate product, in favor of a product they tout as being more user flexible: a product called a “right to use” product. Setting aside the differences in the actual ability to use the two very different types of timeshare “ownership,” the focus of this article is on the migration of the timeshare product from a real estate based product, morphing into what we attorneys refer to as “personalty”.

In our lawyer’s world, everything not legally defined as real estate is personalty (the only other option in the law). Presumably a ‘right to use’ timeshare product (points based) is not considered by the law as real estate, (if it no longer possesses any attributes of real estate and therefore as ‘personalty’, is subject to differing state laws particularly including the universally adopted, in some form in every state, Uniform Commercial Code).

Additionally, state laws regulating the real estate within its boundaries, do vary from state to state. Personalty, however, is a commodity of a different color. The Uniform Commercial Code (UCC), as its title suggests, is nearly uniform in its textual content, and from an applicability standpoint, every state in the Union has adopted, with minimum exceptions not applicable to this article, a version of the UCC almost identical with its neighboring states. In other words, as we discuss the law of personality (again, all that is not deemed real estate) we can speak to it across the board. These laws apply everywhere within the USA.

As a Florida lawyer, you may have seen other articles where I either cite specific Florida statutes or have issued a cautionary statement that the principles I was espousing may not apply in other jurisdictions. Contrast this article where I do not constrain my statements. Also, rather than cite state specific portions of the UCC, I, in places, simply refer to Articles within the UCC and in others the ‘pure code provision’.

Further, this article is not intended for an audience of lawyers or jurists. It’s intended for consumers to get a grasp of a relatively new set of laws, including the Uniform Commercial Code, that now may begin to play a much greater role in the laws governing timeshare projects and correspondingly, the developers who operate these projects.

I would like to ask Mike at this point about another universally accepted practice – advising borrowers to go home after purchasing their dream vacation plan and arrange financing with their bank or credit union. Perhaps it’s the subject of another article, but the majority of complaints received by Inside Timeshare say their sales agent advised them to seek a home equity loan to lower timeshares usury type timeshare lending rates. Many have done just that. My husband and I were told we could get lower rate financing, “No one should finance at our rates,” warned Donna. (Grand Beach, FL July 2015) I guess buyers that follow that advice are just out of luck, like Sylvia Saldana, now stuck with a $30,000 home equity loan after Diamond Resorts “took back” $60,000 worth of timeshare points. To make matters worse, Sylvia said she was aggressively encouraged to open Barclaycards, told buying more points would lower their maintenance fees. Had she succumbed to that suggestion, Sylvia and her husband would have lost even more money.

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

Back to Mike

Consumer rights may also get a major boost by the applicability of the UCC as well, since, to the extent that a contract provision contradicts an applicable statute, that contractual provision will be rendered null and void.

So, for example take the typical contractual provision that, “all monies paid will be retained by the developer as ‘liquidated damages.’’’ Essentially, the amount of damages fixed must be reasonable ‘in light of actual or anticipated harm’ and a term fixing an ‘unreasonably large amount’ is void as a penalty.

Therefore taking a contract, say with a 10% down payment and then adding subsequent monthly payments, the sum total could easily become ‘unreasonably large’, particularly in light of the quick turnaround on the “use rights” for which there has been a default, assuming which I think is fair with on-site sales team (ARDA’s Mr. Nusbaum calls them forever sales centers), that the interest will be promptly re-sold.

Another example of a UCC provision that may well change the way defaulted buyers are treated is as follows. The included reference to the specific UCC provision is the actual textbook unadulterated Code provision number, and may well differ from numbered state specific statutes. The developer or secured party is under a duty to notify debtors of the disposition of collateral under UCC Section 9-611. Further, the disposition must be done in a commercially reasonable manner.

Of particular importance, the secured party/lender is required to apply proceeds of any disposition to the underlying debt once expenses have been taken.

Is this where we end up with money back to the debtor? Can we go back to our original example?

I paid $20,000 and default at $18,000. For sake of discussion I am current on maintenance fees (which is probably not the case). The developer sells to the next hamster my forfeited points for $20,000. I am relieved of the $2,000 still owed, but if the developer sells for $23,000, I will be relieved of the $2,000 owed plus get $3,000 from the surplus amount? This next sentence sounds like the answer?

Also of notable significance is the duty of the secured party to pay the debtor any surplus which results from the disposition of collateral.

Additionally, the secured party/developer is liable for any damages caused by its failure to comply with Article 9.

In summary, a new day in the life of an unhappy timeshare owner is dawning. Existing laws never before applied to timeshare purchases may well now apply and particularly those timeshare interests that are non-real estate based like the ‘right to use’ interests that are now the mainstream of the timeshare community! Stay tuned for future developments on our website as we begin to apply the theories and applicable state statutes referenced hereinabove.

Respectfully submitted,

Michael D. Finn, Esq.

www.finnlawgroup.com

michaeldfinn@finnlawgroup.com

work desk

Whew! That was exhausting. It’s a good thing we have legal eagles to figure these things out because Charles Thomas and I get pretty depressed at times listening to “Nightmare on Timeshare Street” stories. We have heard enough to fund a series. The question I am most frequently asked is, “How can they sleep at night?”

Thank you to Mike Finn for the chance to publish this and also to Irene to add her clarifications for those without legal minds.

It now only remains to say be careful who you do business with, check and check again, if you need help, then contact Inside Timeshare. Have a good weekend.

weekend02

clarity meaning

Tuesday Review: Clarity

Following on from previous articles on Diamonds Clarity Program, Inside Timeshare welcomes today’s article from Bonita Hill, edited by Irene Parker. Bonita explains her experience of this program which is suppossed to “clean up” the sales process, it does appear to fall rather short.

But first a quick round up from Europe, as we said before August is usually a rather quiet time, especially in Spain, so at present there is little news coming from the courts as they are on vacation.

It would also seem the family of “fake” law firms, Litigious Abogados are continuing to claim they have cases waiting to be heard at court, with thousands in compensation waiting to be claimed. Well we do know there will be no money coming from this little crowd.

Inside Timeshare is also working on another Anfi story, they still seem to be denying that they have lost and are losing in the courts. Is it possible they are that worried of more litigation they are conducting a damage limitation exercise? More on this story when we publish.

Now on with today’s article.

Diamond Resort’s CLARITY™ Program

Battles the Oral Representation Clause

clarity

By Bonita Hill  

August 8,2017  

Diamond members on our member sponsored Advocacy Facebook page are confused about an email all US members received earlier this year describing a new Diamond CLARITY™ program being rolled out nationwide designed to provide members with enhanced transparency, accountability and RESPECT for the customer. Diamond’s CLARITY™ program was launched in response to an Assurance of Discontinuance issued by Arizona Attorney General Mark Brnovich. Diamond has stated they intend to go beyond the requirements of the AOD.

The response my husband and I received fell short of the CLARITY promise. Basically, the company said it doesn’t matter what the sales agent told us because of the oral representation clause, yet the requirement of the AOD clearly states DRI sales agents shall not deviate from approved sales materials. Instead of CLARITY, the company should just provide a person in advance of a sales presentation the answer we received after we filed our complaint:

“We must advise that it is specified clearly in the contract documentation that if you relied upon any verbal information given during the presentation you must ask for this to be put in writing. Likewise, if anything was said that was of particular importance to you, but which is not contained in the terms and conditions of the membership, this should have been requested to be implemented in the body of contract before documentation was signed.”

Here is what the Assurance of Discontinuance says. The complete AOD can be found linked at the bottom of the press release.

IV Assurances

Diamond shall enhance its programs, policies and training and continue to instruct and train its Vacation Counselors and Sales Managers to comply with the ACFA (Arizona Consumer Fraud Act). Diamond shall advise all Vacation Counselors and Sales Managers that they may not:

  • Sales agents should not deviate from sales material
  • Sales agents should not make oral representations at the point of sale inconsistent with the Purchase document.

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

We attended a sales presentation in Las Vegas in 2017 after CLARITY had been introduced in Arizona. Our sales agent was Adam Drell. There my husband and I were told by Mr. Drell that because we had so few points we were paying more in maintenance fees and that if we bought more points we would pay less. Mr. Drell also said he was going to add in a Westgate week so that we would be Silver. We did not own a Westgate week.

Mr. Drell said our new maintenance fee would be $1,124. However, I received a bill for $661 for the new points. I had already paid $880 for the old points so the total of $1,541 did not match. Adam did not respond when I tried to contact him.

family

I am 30 years old and my husband is 32. How can we pay for maintenance fees that will go up every year for life? We bought the additional points because we were told it would make our maintenance fees go down. Our loan is financed at 17.15% on top of the maintenance fees. Mr. Drell opened Barclaycards. I was approved initially with a limit of $2,100. Adam offered the Silver plan with a down payment of about $3,400. We did not want to put more money into timeshare that day. He then asked me to call Barclay’s reconsideration line. We were denied due to our high ratio balance on other cards, Diamond’s response tells us nothing prevents a Diamond sales agents from saying anything they can think of to sell vacation points because they know the company can and will fall back on the oral representation clause. This makes it easy and convenient for sales agents to tell falsehoods. I’m sure Mr. Drell’s response would be, “I didn’t say that.”

On our DRI Advocacy Facebook I learned of several others who posted that they were told things by the Diamond sales agent that weren’t true. Marjorie Menacker previously published an Inside Timeshare article.

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

Marjorie Menacker’s letter to Mr. Michael Flaskey, Diamond CEO (excerpt)

I just listened to your podcast No Vacancy with Glenn Hausmann. We were told in Virginia by Brian Humphries that if we purchased more points on the day we were there, we would not have to pay maintenance fees again.  Why does Diamond allow their sales agents to say anything, no matter how outlandish, to sell points?  Since the Diamond contract is in perpetuity, the repercussions are even more disastrous.

When we explained this (our medical bills) to Mr. Humphries, he told us about a one day opportunity that day that would allow us to trade our points to pay off maintenance fees.  When we attempted to use the program he described to us, we learned no such program existed.

I was a satisfied Timeshare owner for over 15 years until, in our opinion, we were deceitfully up-sold at our last update. Instead of poisoning another Diamond customer, isn’t it best to do what is right by standing up for the customer instead of advocating for the sales agent? Another Diamond member not only posted an identical complaint, it was against Brian Humphries, the same sales agent.

Sincerely,

Marjorie Menacker

Marjorie had been hit by a construction truck while walking. The family was struggling to pay maintenance fees due to this and other medical issues. Diamond refused to cancel their loan and refund because of their allegations of deceit, but offered a voluntary surrender for medical hardship. However, more and more timeshare members like Marjorie and I are standing up to timeshare companies offering to take back their points in exchange for nothing when the member feels they were sold based on promises not delivered. There are so many complaints. It has to stop.

conference

Diamond’s Advocacy Department has helped several members resolve their complaints. Out of 80 complaints filed, 29 have reported a positive outcome. Out of 80 complaints, 71 allege they were sold by deceit and bait and switch. Several of our member Advocates belong to this Facebook page.  

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

Members are concerned CLARITY is nothing more than a window dressing for the media.

Through social media timeshare members are finally able to get together to share experiences. This has produced a pattern of complaints that is compelling and compounding. It is hoped all timeshare companies will recognize the need to sell their product professionally and honestly rather than punish the buyer for life stuck in an unending contract with no secondary market often sold based on false promises.

fair trade

Through Inside Timeshare and our Advocacy facebook pages we have been asked about costs for legal services, we reached out to Mike Finn of Finn Law Group and this is his reply.

Hello all, thanks for your interest in our services.

We do try to charge a fixed fee because that provides a lot of certainty for the client as these cases sometimes take quite some time for resolution.

A couple of factors that we consider in setting the fee, is the date of the purchase, as that has statute of limitation ramifications, and also the amount owed to the resort and perhaps other third-party credit providers. Another factor is whether or not there is more than one active contract.

If I have this information I can provide a fixed fee and even offer terms in some cases.

Mike Finn

Thanks Mike, that has certainly made things clear, a lot more clearer than Clarity!

Remember, Inside Timeshare is here to give sound and accurate information, these are your stories, they are from owners experiences, the industry will eventually take note.

It just remains for Inside Timeshare to thank all those who contribute and help with the proof reading.

 

disneyVC

A Lesson for Other Timeshare Companies

Over the past few weeks many of the articles have shown some of the worst of timeshare, today however we show what can be good about timeshare.

In the UK there is a certain saying which is normally associated with substandard, shoddy or a bit of a joke, that saying is “Mickey Mouse!”

But in the context of this article it means brilliant!

Irene Parker explores one timeshare product that excels, in the world of timeshare this is rare indeed, Inside Timeshare has also done a lot of investigating and concurs with Irene, we can find no complaints against this “Mickey Mouse” outfit.

Before we published this article we reached out to Bluegreen, they told us they would have a response within 24 hours, that was on Monday, we still have not heard from them. The point is, by reaching out to other companies, we are giving them the opportunity to change, by working with us and our readers they have the chance to put right what is wrong with timeshare.

In Europe and Spain in particular, it is legislation that is forcing timeshare developers to change what and how they sell. The proliferation of court actions has changed timeshare for the better, we are seeing products and sales techniques change. Disney have shown that by having respect for their clients and putting their needs first, they have a product that is worthy of the name “timeshare”.

So on with Irene’s article.

Disney Vacation Club vs The Timeshare Industry

https://disneyvacationclub.disney.go.com/membership/

Why can’t I find any Disney complaints?

disney

By Irene Parker

July 26, 2017

Try as I might, I cannot find complaints about Disney’s timeshare arm, Disney Vacation Club. Searching in vain, it brought up memories of the old Maytag repairman ads describing the Maytag repairman as “The Loneliest Guy in Town”. The point of this long running series of commercials was that the product was so trustworthy and dependable that Maytag repairmen spent their days waiting for the phone to ring.

https://www.youtube.com/watch?v=rXJ0rAyE_mQ

Why does the Disney Vacation Club have so few complaints? Any company has its grumblers, but the best I could find were a few owners complaining about availability. I asked Fernando at the Disney sales call center. Fernando was not allowed to provide his last name but was happy to talk about what makes Disney different and why Disney customers are so loyal.

Fernando attributed such a low volume of complaints to customer expectations met. As far as the complaints about availability, “Some timeshare members plan better than others”, said Fernando. “But it’s all about meeting customer expectations.” Just like hotel bookings, timeshare bookings are subject to supply and demand that fluctuates with peak and off seasons.

I also asked Fernando if he felt a viable secondary market was a benefit for the company as the timeshare owner obviously benefits from access to a secondary market. “Disney does not attempt to control the market. We believe timeshare should be a free market,” he explained.

Members of the Licensed Timeshare Broker Association say Disney has one of the best secondary market prices. Tom Tubbs of Island Consulting Realty told me Disney almost always exercises their Right of First Refusal. A company that exercises its ROFR actually supports the resale price. Island Consulting Realty is BBB accredited with an A+ rating and a member of LTRBA and ARDA.

http://www.licensedtimeshareresalebrokers.org/

The Timeshare Store markets basically only Disney timeshares.

“We don’t charge any upfront fees. A seller pays a commission at the time of closing and $170 in fees to Disney Vacation Club,” explained Jason Erpelding, Licensed Real Estate Broker Associate. Above all, consumers buying or selling a timeshare on the secondary market should work through a licensed broker as timeshare resale and listing scams are common. The Timeshare Store has a Better Business Bureau rating of A.

http://www.dvc-resales.com/

Contrast Disney timeshare resale prices with timeshare resale prices in general. Many timeshare are offered for $1 to $99, originally purchased for thousands of dollars. As demonstrated by The Timeshare Store listings, Disney resales are offered for $10,000 to $30,000 or more. Contact The Timeshare Store or a LTRBA member to find out the benefits or lack of benefits buying resale vs buying directly from the timeshare developer.

https://www.bbb.org/west-florida/business-reviews/timeshare-companies/island-consulting-realty-in-sarasota-fl-18003121/bbb-accreditation

Disney’s website states: You purchase a real estate interest in a Disney Vacation Club Resort. The keywords are real estate. You own something and thus have a beneficial interest. Some timeshare company non-deeded points have been compared to buying air. Lack of availability is a frequent complaint.

Fernando and I talked about Disney’s corporate culture. Ray Kroc of McDonald’s restaurant fame and Walt Disney both drove an ambulance for the Red Cross in World War I. “While we were out chasing girls, Walt was drawing cartoons. All those girls are dead but Walt’s cartoons thrive to this day”, said Kroc.

mickey

Walt Disney and the Walt Disney Corporation were originally motivated by art. Money was the by-product of a pure motivation. Think of a real estate agent who is motivated by finding you the best house as opposed to the real estate agent that has nothing but the vision of a commission check dancing in front of his or her eyes. The purity of Walt Disney’s original motive has had an effect that has carried through the decades. “People buy a Disney timeshare because they know Disney and believe in Disney”, said Fernando. In other words, the strength of the Disney brand, supported by met expectations, has led Disney to become the model for timeshare developers industry wide. “I love what I do here,” Fernando added.

Lisa Ann Schreier, former timeshare sales agent and author of Timeshare Vacations for Dummies, echoed Fernando’s enthusiasm. Lisa worked at Celebration World Resort, right in Disney’s Orlando neighborhood. “Most if not all Disney Vacation Club purchasers/owners are given sufficient information on the product before and after purchase. There’s no feeling of being rushed into a purchase and Disney’s famous Guest Service is no less evident with DVC than at The Magic Kingdom”.  

There doesn’t appear to be any angry owner Facebooks or websites either. Let’s contrast Disney with Bluegreen timeshare. The following are member supported Bluegreen Facebook pages. In parenthesis I have changed the words to be generic as the advice provided is appropriate for any would-be timeshare buyer.

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

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

(Any timeshare company) IS NOT RESPONSIBLE FOR DOING ANYTHING OTHER THAN WHAT IS STATED IN THE CONTRACT. IF YOUR SALES REP CANNOT SHOW IT TO YOU IN WRITING IN THE CONTRACT DO NOT EXPECT TO SEE IT HAPPEN.

YOU HAVE A CANCELLATION PERIOD WHICH VARIES BY STATE AND THAT INFORMATION IS ALSO IN THE CONTRACT.

(Many)  BENEFITS ARE NOT GUARANTEED. THEY CAN BE CHANGED OR CANCELLED AT ANYTIME.

This is a public group accessible to everyone, including Sales and Corporate. You are responsible for your own comments, opinions, etc. I am merely providing this page as a single location for both positive and negative experiences in regards to the sales team. Allowing both them and corporate to better improve how owners and possible new owners are treated, likely increasing sales.”

A Member Sponsored Bluegreen Facebook page:  770 members

This Facebook page seems to be a sort of self-help Facebook for members trying to be released from their contract. A book on how to write a letter to an Attorney General is available.

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

The following internet consumer complaint sites list Bluegreen reviews:

Consumer Affairs rates Bluegreen 1 ½ stars out of 5 stars based on 100 ratings. There were a total of 411 reviews. In all fairness, Disney ranked only 2 stars out of 5. Typically happy customers don’t bother searching for complaint sites to post positive reviews. Consumer Affairs posts a balanced collection of consumer reviews helpful for consumers researching online.

Pissed Consumer rates Bluegreen 1.9 out of 5 stars based on 155 reviews. There were a total of 761 reviews. There were no Disney reviews on this site.

Complaints List – There was only one Bluegreen complaint but the comment was intriguing.

“One federal authority told me they are in violation of the constitution by enslaving people with unending contracts because this is a form of indentured slavery and slavery is unconstitutional…”

Better Business Bureau

TUG Timeshare Users Group noted that Bluegreen lost their rating in 2010 with an F rating.

http://tugbbs.com/forums/index.php?threads/bluegreen-corp-loses-its-bbb-accreditation-with-an-f-rating.132284/

Bluegreen is not BBB accredited but now has a B+ rating.  Keep in mind BBB does not resolve complaints. They rate how effectively a company responds to complaints.

7 positive

4 neutral

67 negative (out of 78 reviews)

Bluegreen had 761 complaints in the last three years.

https://www.bbb.org/south-east-florida/business-reviews/vacation-clubs/bluegreen-corporation-in-boca-raton-fl-8195

Contrast the Bluegreen BBB rating with Disney’s rating:

Disney has been accredited since 1991 with an A+ rating. There was one review:

1 positive

0 neutral

0 negative

Disney had nine complaints in three years.

In my research I found useful timeshare tips provided by the Wisconsin Consumer Protection Division, the most important being:

Oral promises: Make certain all promises made by the salesperson are written into the contract.

https://datcp.wi.gov/Pages/Publications/TimesharesResellers182.aspx

Here is the company response one of our Diamond Resort readers just emailed me in response to their allegations that they were sold by deceit and bait and switch. I have highlighted the oral representation section in red.

“We must advise that legally the contract is binding and as we have previously advised the relevant information could be found in the body of the agreement and was in fact acknowledged by yourself. We must advise that it is specified clearly in the contract documentation that if you relied upon any verbal information given during the presentation you must ask for this to be put in writing. Likewise, if anything was said that was of particular importance to you, but which is not contained in the terms and conditions of the membership, this should have been requested to be implemented in the body of contract before documentation was signed.”

It would certainly save the timeshare company and the timeshare buyer a lot of times and trouble if the paragraph above would be provided to the person about to enter a timeshare presentation. Most, if not all of the complaints Inside Timeshare receives begin with, “The sales agent said…..”

The Finn Law Group maintains approximately 500 timeshare cases. Timeshare attorney Mike Finn told me he has never had a Disney client which led me on this quest to find Disney complaints. Mike Finn has often said the timeshare contract’s oral representation clause is “a license to lie”, used and abused by some timeshare sales agents. Just think. If Disney were the only timeshare company out there, Mike Finn would be Disney’s version of the Maytag repairman.

maytag

So there we have it, not exactly rocket science is it?

Put the customer first, give a good service and bingo, happy all round. A business model that keeps going, a business that people are proud to work for, a business that customers are happy to be members of.

On another note, Canarian Legal Alliance, announced that it had just received another Supreme Court ruling, that now brings the total to a massive 57. You could say that they have just had their “Heinz” moment.

In Spanish legal history this is unprecedented, no other law firm has achieved anything like this, from what our sources tell us this figure is set to rise, as they have many more cases waiting to be heard in Spain’s highest court!

As the news comes in we will keep you informed.

In this week’s Friday’s Letter from America we will be publishing another article on Advocacy, written by one of The Timeshare Advocacy Group. In this analysis of the industry the writer puts forward some very interesting points, so stay with us for the next article, see you then.

letter from america

Friday’s Letter from America

Welcome back to Friday’s Letter from America, last week we did change it to Australia to welcome our Aussie contributor Justin Morgan with his first article, which happened to coincide with Irene Parker’s first anniversary. Today we hear from our first Bluegreen owner, who also happens to be a detective in law enforcement, so this proves that all are vulnerable to the smooth talking sales staff.

Irene reported just as we were about to publishing today’s article, that four Diamond Members have been able to resolve their vacation issues this past week. Members tell us they appreciate having a human instead of a department to talk to. Previously members complained of continually having to start over with seemingly endless departments.

We hope other timeshare developers follow suit as timeshare complaints are widespread.

Now we have a look at what is happening in the European world of timeshare.

The National Police in Spain have busted a major scam being run from the Costa del Sol, they raided several premises and homes in the Velez Malaga – Torre del Mar area. Around 40 were detained, they included a husband and wife, son and daughter-in-law, along with it is reported two lawyers. The detained are mainly British, who have run several businesses in the area over a number of years, these targeted mainly British timeshare owners.

Police raid

The scams involved timeshare resales, holiday packages and discount clubs, this has over the years netted millions of pounds, with the police recovering around 100,000€ in cash, expensive watches, jewels and several high end cars.

It is believed the companies, which are well known by Inside Timeshare and other similar sites, are, Halfmoon Holdings, Excalibur Sales & Marketing, Blue Chip and Rosedale Marketing. The only problem is, when one of these raids takes place and they are put out of business, there are many others ready and waiting to fill the gap. No doubt, we will see a series of companies offering to help victims get their money back, for an upfront fee obviously. So readers beware!

Follow the links to read the stories in the UK tabloids.

https://www.thesun.co.uk/news/3952419/dozens-arrested-over-timeshare-scam-that-saw-500-brits-conned-out-of-life-savings-in-multi-million-pound-costa-del-sol-racket/?utm_source=TWITTER&utm_medium=social&utm_campaign=SprnklrSUNOrganic&UTMX=Editorial%3ATheSun%3ATwImageandlink%3AStatement%3ANews

http://www.mirror.co.uk/news/uk-news/costa-del-sol-cops-uncover-10745713

On the legal front, it looks like those lawyers from Canarian Legal Alliance have been busy this week, with several announcements of cases won.

We started the week with a judgement from Tenerife against Resort Properties / Silverpoint followed on Tuesday with news that the Court of First Instance in Maspalomas GC, awarding a client who purchased at Anfi, over 59,000€ with their contract being declared null & void. Once again the court ruled that the contract was longer than the stipulated period of 50 years.

On Wednesday, the Court of First Instance in Arona Tenerife, again found against Resort Properties / Silverpoint, in this case the judge ruled the contract was missing information which is required by law, the period again was longer than the 50 years allowed, plus deposits were taken within the 14 day cooling off period.

The British client will now receive over £14,000 plus legal interest and has had their contract declared null and void.

On Thursday there were two announcements the first from Tenerife, the Chayofa Golf & Tennis Academy, was ruled against by the Court of First Instance, the contracts signed under the company United Sales 1997 Ltd were declared null & void. Again the infringements were the perpetuity contract and the illegal taking of deposits, the client will now receive over £9,000 plus legal interest.

Malaga Court

The second was from the High Court in Malaga, Club la Costa was found guilty with the contract being declared null & void. One of the main aspects of this case is the company is a UK registered Limited one, Club La Costa Leisure Ltd, which was probably an attempt to bypass Spanish law. As we have seen in the past, some companies have used this along with the clause that “this agreement and contract is subject to UK law and the jurisdiction of UK courts”, but it is evident now that this does not wash, if the timeshare was sold and the contract was signed on Spanish territory, then clearly Spanish law will apply.

Now on with our US Article.

A Bluegreen Member Responds to Timeshare Advocacy Group™

A detective shares her Bluegreen Timeshare experience

Complaint queue

By Irene Parker

Friday July 7, 2017

Typically our Inside Timeshare readers don’t contact us to report positive timeshare experiences so our email inbox often looks like the cartoon above. Today we hear from a Bluegreen member who found promises made did not meet what was purchased. Not as familiar with Bluegreen we checked internet sites and determined Bluegreen is a company that could use a customer satisfaction evaluation.  

Bluegreen members can join a member sponsored discussion Facebook consisting of 770 Bluegreen members. More and more timeshare members are launching sites where members can advise other members.

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

Timeshare Advocacy Group™ is an umbrella organization consisting of volunteers stretching from the EU to the US and beyond including contributors from the Philippines and Australia. A few complaints have little or no effect, but a volume of complaints, especially directed against individual sales agents, can paint a pattern of deception.

A complaint process has evolved over the past year. Working through resort representatives, volunteer Advocates assist other members as we work through the “3 Rs or F of Timeshare” – Resolution, Relinquishment, Refund or Foreclosure.

Here is our advice for those not knowing where to turn:   

  • Prepare a written complaint and request for resolution. Submit to the resort.
  • If the resort denies the request, file first with the Attorneys General of the state where you signed a contract, where you live, and where the timeshare is domiciled. Some Attorneys General are influenced by lobby dollars, so don’t be discouraged if your complaint is denied. There is still merit filing “for the record” because the Attorney General’s lack of concern can be quantified and reported. Some states refer you to a different department.
  • File a complaint with the state real estate division against the agent (ID #) if you feel the sales agent is at fault.
  • File a complaint with the Federal Trade Commission because every state has incorporated some part of the FTC Consumer Fraud Act into their respective state consumer protection act.
  • Report your grievance to ARDA http://www.arda.org/ethics/ – this organization is the American Resort Development Association – Resort Owners Coalition. ARDA ROC does not resolve individual member disputes, but they do have a code of ethics that should be enforced. When the needs of the member and the developer diverge, lobby dollars go to the side of the developer, so think twice about the “voluntary” opt in or opt out donation to an organization that may not always serve your best interest. I have not been able to get the $7 donation removed from my account.   
  • The FBI definition of White Collar Crime – Financial Institution Fraud – is “deceit, concealment, violation of trust and bait and switch”. File a complaint with IC3.gov if this is the case. IC stands for Internet Crime, but your complaint does not have to involve the internet. That’s just the FBI portal for complaints. https://www.fbi.gov/investigate/white-collar-crime
  • File a complaint with the Consumer Financial Protection Bureau, although this agency has been vastly diminished due to the rollback of the Dodd Frank Act. According to a banker I spoke with recently, they are still the regulators. Given the CFPB’s diminished capacity, file with this agency only if a credit card played a part or there is a loan outstanding.
  • Reach out to local and national media. This is by far the most important and effective tool. Typically, timeshare buyers don’t buy a timeshare in their state of residence, so state lawmakers have expressed little interest and can also be influenced by lobby efforts. http://www.orlandosentinel.com/news/taking-names-scott-maxwell/os-gov-rick-scott-signs-bad-timeshare-law-20150617
  • Become an Advocate for change by assisting other members with the process outlined above. Encourage others to stop venting and act. This is one example of a military family that was able to resolve their dispute through Timeshare Advocacy Group™ http://insidetimeshare.com/consumer-protection-week-usa/ and a hat’s off this 4th of July week to all those who serve in the military.
  • Last on the list is the Better Business Bureau. The BBB does not resolve complaints. They merely report how efficiently a company responds to complaints so ratings can be misleading.

None of the above agencies will act on behalf of a specific individual, but a volume of complaints can prompt an investigation. Tennessee, Colorado, New York and Arizona are four states where Attorneys General have opened timeshare investigations       

law enforcement

Our Bluegreen member complainant works in law enforcement. Lela Renea is a detective appalled that, even though she works in law enforcement, alleges she became the prey.   

Lela purchased 6000 Bluegreen points in Las Vegas March 2015 for $8,200. Lela alleges she was a victim of deceit and bait and switch for the following reasons:

  1. Lela was told if she purchased more points her maintenance fees would stay the same. The maintenance fees have increased from $560 a year in 2015 to about $700 a year for 2017.
  2. Lela was told she would receive a free cruise, but after all the fees and charges it cost as much as if she had booked it herself.
  3. Lela was told the Barclaycard had a low interest rate of 5% when in actuality it was 25%.
  4. Lela was not told she was entitled to 4000 bonus points. The points expired before she was aware of them.
  5. Lela was promised availability she says does not exist.
  6. Lela was showed a Presidential Suite that was said to be comparable to all Bluegreen accommodations.
  7. Lela was not aware she had purchased so few points it was almost impossible to find adequate availability.

Lela has sent Bluegreen a demand letter requesting a refund. She will be filing complaints with regulatory and law enforcement agencies if her demands are not met. Lela will become an Advocate.

Lela’s friend and co-buyer contacted Pinnacle Vacation to do a transfer but Lela is worried Pinnacle may be a scam.

https://www.complaintsboard.com/complaints/bluegreen-vacation-club-c4809.html

lawsuit

The following lawsuit was filed against Bluegreen but was dismissed October 2016. It voices many of Lela’s complaints. Again, the problem is the oral representation clause that timeshare attorney Mike Finn of the Finn Law Group has frequently described as “a license to lie”.

The BlueGreen Vacations Timeshare Sales Tactics Class Action Lawsuit is Kyle Miles, et al. v. BlueGreen Vacations Unlimited Inc., Case No. 1:16-cv-00937, in the U.S. District Court for the Eastern District of California.

The plaintiffs are represented by Todd M. Friedman and Adrian R. Bacon of Law Offices of Todd M. Friedman PC.

BlueGreen Vacations Unlimited Inc. has been hit with a class action lawsuit that accuses the timeshare company of using “hard sell” tactics and misinformation to convince consumers to enter into timeshare contracts.

During the timeshare presentation, the plaintiffs were reportedly informed that, if they were not satisfied with the timeshare contracts BlueGreen was selling, BlueGreen would buy back the contracts.

According to the timeshare class action lawsuit, BlueGreen also misled the presentation attendees by representing that the timeshare contract’s maintenance fees would not increase, when in reality, the maintenance fees increase on an annual basis.

However, the plaintiffs allege that the terms that were actually contained in the timeshare contract are different than the terms promised during the timeshare presentation.

They also claim that they were pressured to open two BlueGreen credit cards and to put the entire $5,000 down payment on the cards.

advo

Our local Florida news station today reported vacation rentals, as opposed to hotel bookings, have increased from 50% in 2014 to 70% in 2016. Our readers continually express disappointment and dismay over what they describe as an escalation in deception and overly aggressive timeshare selling. These are mostly members who were happy with their timeshare until deception set in. We want timeshare to be a healthy and robust industry. If the developers and lobby organizations don’t heed the damage being done by sales agents “pitching heat”, one wonders how the industry can survive in the millennial’s world.

Inside Timeshare thanks Lela for coming forward. We look forward to a new collaborator as a lot of what we do requires the skills of a detective. It did not take long to explain the basis of an IC3.gov complaint to Lela.

So there we have it, another week over in the timeshare world, with some good news for many and the start of a judicial nightmare for others. Inside Timeshare thanks all those who sent in the information which helps to form our articles, again thanks to Irene for editing the US contributions, together we are making a difference.

weekend

 

start the week

Starting The Week.

We ended last week with a new contributor, Justin Morgan from Australia, along with some of the news from the courts in Spain. In those reports it was mention that the court in Tenerife had found once again against Diamond Resorts contracts. We have been reliably informed of many more cases in the pipeline.

If last week is anything to go by, we are expecting many more sentences being announced over the course of this week. Although, these will be among the last before the annual break in August, where Spain basically shuts down for the month.

Just moving away from Diamond for a change, last October we published an article of a class action lawsuit against Marriott. The case is for alleged “racketeering”, a term we usually associate with the old gangster films depicting the escapades of the likes of Al Capone, not large timeshare and hotel companies.

This the Irene Parker’s update on this story.

The Marriott Racketeering Case – An Update

Not since the Book of Genesis [1:9-10] has the extraordinary feat of creating land from nothingness been chronicled … and Marriott “saw that it was good” for business. (Plaintiff’s response to motion to dismiss)

Moses

By Irene Parker

Some stories tell themselves

July 3, 2017

Timeshare members find themselves with few friends in Florida state legislative and regulatory circles. The Florida Timeshare Division only acted on 110 out of 2,360 timeshare complaints filed from April 2012 to April 2014. In addition, a Florida law passed in 2015, making it more difficult to get out of a timeshare contract, sparked outrage among timeshare owners and advocates. I’m told $70 billion a year flows into Florida in timeshare dollars. That kind of money certainly could buy a lot of power and influence.

http://www.orlandosentinel.com/news/taking-names-scott-maxwell/os-gov-rick-scott-signs-bad-timeshare-law-20150617-post.htm/

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

Paul Brinkmann of The Orlando Sentinel first reported on the Marriott Racketeering case back in May of 2016.

The lawsuit takes aim at Marriott’s points program, which replaced traditional sales of timeshare weeks at specific resorts in 2010. According to the suit, Marriott timeshare customers pay fees associated with owning real estate — such as closing costs and recording fees — but don’t actually own any real estate.

The lawsuit says Marriott timeshare buyers “are being duped into believing they are obtaining title to a real-property interest … when, in fact, they are merely getting a right-to-use license,” the lawsuit says.

Edward Kinney, spokesman for Marriott Vacation Club, said the company will defend itself in court. He said the timeshare industry is highly regulated.

“We sense the people behind this lawsuit have a misunderstanding of how our product works. But we follow every aspect of the state regulatory compliance for vacation ownership sales,” Kinney said. “Everything we do as far as sales are reviewed by the state.”

Fast forward one year later

On May 23, 2017, Governor Rick Scott signed into law SB-818 which amends Section 721.05(21) of the Timeshare Act by adding a subsection (b) to clarify that, for purposes of a “multisite timeshare plan” (e.g., the MVC Product), an “Interest Holder” does not include any person or entity that has an interest in, or lien on, the underlying condominium or property:

https://www.flsenate.gov/Session/Bill/2017/00818/?Tab=BillHistory

Revising the definition of the term “interest holder” to clarify that the term does not include certain parties to a certain multisite timeshare plan; revising requirements for the termination of a timeshare plan; specifying the percentage of votes required to extend the term of a timeshare plan under certain circumstances, etc.

Marriott defendants then submit to the Court

Case No. 6:16-cv-855-Orl-41TBS

This Notice is being submitted to alert the Court to a recent amendment (“Amendment”) to the Florida Vacation Plan and Timesharing Act, Fla. Stat. § 721.01, et seq. (“Timeshare Act”), in further support of the Marriott Defendants’1 and the First American Defendants’ Motions to Dismiss the Complaint (see Doc. Entries 77, 78, and 79, filed September 15, 2016).

Attorneys for the Plaintiffs respond to the request for dismissal (excerpts)

Based on the fact that the FVPTA Amendment (which became effective on May 23, 2017) is so specifically tailored to address a narrow exception pertaining precisely to the particular facts of this case, it is beyond obvious that Defendants (immediately following briefing on the motions to dismiss) railroaded the law through the legislative process.  Defendants’ blatant lobbying effort smacks of impropriety and amounts to an admission that their conduct is not authorized under existing law. Further, it is proof positive that Defendants are willing to use any means possible – including government influence – to mask the unlawfulness of their prior acts.  

Defendants were clever in making sure the FVPTA Amendment was characterized as a remedial “clarification.” Of course, simply calling it a “clarification” does not automatically bestow retroactive application – especially, in this case, where the FVPTA Amendment purports to clarify a long-standing law, enacted over twenty years ago.

An “interest holder” has a legally-binding property interest in the accommodations under the existing law. The definition of accommodation includes timeshare condominiums under the existing law. Fla. Stat. § 721.05(1). Therefore, it would substantively change the existing law to exclude from the definition of encumbrance anything that would be contained in a timeshare condominium declaration.

This makes it clear that the revision was recognized and acknowledged for what it truly is – a substantive change to existing law, creating new categories of exclusions to interest holders and having potential constitutional implications. Nothing in the legislative history, including any staff or committee analysis, provides even marginal support for the conclusion that the legislature intended the FVPTA Amendment to be a mere clarification that would have retroactive application in this case.

Regardless of Legislative Intent, FVPTA Cannot Have Retroactive Application because it will impair Vested Rights in Violation of the Constitution.

scroll

As usual, I contacted timeshare attorney Mike Finn of the Finn Law Group for his take on Governor Scott’s legislative prowess. Our Advocacy group of 84 Timeshare Advocates includes 18 attorneys. Timeshare is extremely specialized so we do not suggest any aggrieved timeshare member seek legal advice from any attorney without real estate or timeshare experience. Mike has assisted several timeshare owners needing legal assistance.

According to Mike,

“The constitution of the United States protects US citizens from Ex Post Facto laws, meaning that you cannot take an act and make it criminal after the fact. You can criminalize that action, but you can only do so prospectively because any actor is entitled to notice that this particular act is now a crime. How unfair it would be to be able to punish someone who had no previous warning that a non-criminal act was suddenly and with no advanced warning or notice made criminal?”

“There is no comparable constitutional protection in the civil arena even though the consequences in suddenly and intentionally changing a civil law while a case is pending, and applying the new law retroactively to a set of facts that resulted in extinguishing an existing and viable claim for monetary damages are essentially identical. Imagine how you would feel as the litigant bringing a claim, after hiring an attorney, filing a lawsuit that was meritorious when you filed it, only to have your case dismissed because the rules of the game were changed after you had filed your case?” “How dishonest!”

Attorneys for the plaintiffs continue

On May 16, 2016, the Plaintiffs (represented by Jeffrey Norton and the law firm of Newman Ferrara) filed a class action complaint against Marriott and First American (“Defendants”) that included numerous claims arising out of hundreds of thousands of instances of unlawful conduct, in which Defendants engaged for over seven years, related to the creation and continued sale and operation of the MVC Trust Product.

In December 2016, briefing on Defendants’ motions to dismiss was completed.

On February 9, 2017, SB 818 was introduced. That bill, introduced curiously on the heels of this action and immediately following briefing on the meaning of “interest holder” (a term having a direct impact on Defendants’ racketeering activity), sought to revise the definition of “interest holder” as it applies to the Florida Vacation Plan and Timesharing Act. More specifically, SB 818 aimed to “clarify” that the term “interest holder” excludes certain parties to certain multisite timeshare plans – a uniquely-focused amendment that appears specifically crafted to address claims in this case.

Three months to the day later, SB 818 was presented to Governor Scott for signature.

And, on May 23, 2017, SB 818 was enacted into law (the “FVPTA Amendment”).  Two weeks

later, on June 7, 2017, the Marriott and First American Defendants (the “Defendants”) filed the

Notice to “alert” the court of the FVPTA Amendment and its purported impact on this case.  

It seems obvious that because Defendants could not justify the legality of their conduct under existing law, they endeavored to change the rules. The Notice is tantamount to an admission that Plaintiffs’ claims are meritorious and that Defendants’ conduct violated the laws that actually were in effect during the relevant time period.

This is not the first time Defendants have endeavored to prevent this Court from considering the claims in the Complaint under existing law. Defendants previously filed a borderline frivolous motion seeking to invoke primary jurisdiction in order to refer the matter to the Florida Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile Homes (the “Division”), and a stay of the entire matter pending review by the Division.

(Note from Irene: Maybe that’s because only 110 out of 2,360 timeshare complaints were acted on by the Florida Timeshare Division.)

As argued by Plaintiffs, however, it is abundantly clear that the Division does not have primary jurisdiction over the claims in Complaint (and expressly rejects providing advisory opinions in pending litigation.

Parcels of real property do not simply materialize out of thin air by virtue of a statutory definition and nothing in the construction of a timeshare estate’s definition under Fla. Stat. § 721.05(34) supports Defendants’ preposterous construct.

girl

Whew! That was a lot for the average timeshare member to grasp, but more and more timeshare members are coming forward to learn about what goes on behind the scenes of their dream vacation. Inside Timeshare is hearing from timeshare members on a daily basis crying foul. Thank you to all our 18 attorney advocates as we work together to “take back our vacation” from an industry clearly in need of reform.

Once again Irene explains a difficult subject for us mere mortals in a way that is understood.

Over the weekend Inside Timeshare has received many more stories from some very concerned owners. It certainly looks like the articles we publish are hitting home to many owners, if you have any questions concerns or comments about anything published, contact Inside Timeshare and we will point you in the right direction.

                                                       

 

 

debt 1

Timeshare Debt: A Growing Problem

Many people have found themselves in financial difficulty due to huge finance agreements sold to them by the timeshare sales staff and the ever increasing maintenance payments. Usually this is down to a change in circumstances, either from illness, loss of a job or a change in jobs resulting in a severe cut in wages.

Some who are in arrears in maintenance have to this stage because they have listened to bad advice, “Just don’t bother paying they won’t do anything, that’s what I did”. Others because they believed their timeshare had been transferred by a company they paid, only to find that either the timeshare resort does not recognise the transfer or it was never done.

Those who were taken in by Incentive Leisure Group and Designer Way Vacation Club are all too familiar with this scenario.

Timeshare companies will sell the debt to a collecting agency, they will hound you and threaten court action, which is why many end up paying it.

In this article from Irene Parker she explains the problems in the US, it may just sound very familiar to our readers in the UK.

Timeshare Debt Collection

Life after Foreclosure

foreclosure

By Irene Parker

May 30, 2017

The flood of Inside Timeshare reader responses concerning timeshares and what to do when your resort denies your release, request for refund, or loan cancellation has been eye-opening. We have heard from a surprising number of timeshare members in their 60s and 70s with high US credit scores around 800 considering foreclosure for the first time in their life.

Out of 58 formal complaints and request for relinquishments filed in the US and EU, 42 allege they were victims of deceit and bait and switch. The remaining 16 requested relinquishment. Voluntary surrenders or “take back” programs are evaluated case by case. Some of the 42 members were offered surrenders but could not tolerate the non-disclosure agreement, especially the clause that states the member cannot say anything negative about the company. They wanted refunds if they felt they were deceived or a victim of a bait and switch.

We should not harp on the elderly being targeted. At least a third of the approximately 80 timeshare members who have contacted Inside Timeshare are 40 years old or younger. The youngest was 19 and pregnant when she signed a timeshare contract after a six hour presentation.

Continuing on after the 3Rs or F of timeshare we previously reported on –

Resolution

Relinquishment

Refund

Foreclosure

http://insidetimeshare.com/3-rs-timeshare-part-1/

We move on to the cheerful calls from the debt collectors and what happens during the foreclosure period. The shortest timeshare debt collection period seems to be 60 to 90 days and the longest 180 days. If a timeshare company is worried about reporting a high default rate to the investment community, one way to lower that statistic is by lengthening the debt collection period.

It’s been surprising to learn how many of those in timeshare trouble are financing a vacation at a 12% to 19% interest rate. The emphasis in a sales presentation is on the low monthly payment. If someone does think to ask, “At what interest rate?” typically the answer is, as in the sales presentation I attended, “Don’t worry, when you get home you can get a home equity loan.”

An instant credit card is often used to finance the timeshare down payment. When you buy a house, there’s a reason why banks won’t let you borrow the down payment. That reason doesn’t go away when you buy a timeshare for $20,000 to sometimes over $100,000, but credit card companies and lending laws have helpfully aided and abetted timeshare lending.

I have come to the conclusion placing credit card applications in the hands of a thousand timeshare sales agents is like sending a thousand three years olds into Toys R Us unsupervised. Inside Timeshare has published several timeshare lending “Nightmare on Timeshare Street” articles. There have been so many it has turned into something of a series authored by our readers.

Once again, I turned to the Finn Law Group Learning Center to better understand timeshare debt collection.

Timeshare attorney Mike Finn agreed with my assessment concerning overzealous timeshare lending cramming third party loans into the deal. “An additional point to be made in this regard is that their efforts are contrary to Federal law (Truth in Lending Act (TILA), which requires the new debtor to receive in writing PRIOR to the loan being funded a written summary disclosure statement summarizing the deal points. This procedure is never ever followed by the timeshare industry and why the practice is permitted is beyond my grasp.”

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

“Timeshare buyers need to think beyond the down payment and loan payments. “Maintenance fee rates may far exceed the annualized cost of inflation,” Mike added.

“To make matters worse, resorts sometimes categorize timeshare loans as “mortgages”.” What this means is that if you stop making payments on your loan, it may be reported to the credit bureaus as a mortgage foreclosure. Many resorts try to pick the category that does the most damage to the consumer.

Finn Law Group helped timeshare owners settle a class action lawsuit against Bluegreen Corporation. Experian Information Solutions, Inc., and Equifax Information Services, LLC in Best and Snapp, et al. v. Bluegreen Corp., et al.

The plaintiffs alleged that when they were delinquent, Bluegreen sent a series of letters advising them that they were terminated from the Bluegreen Vacation Club and the status of their accounts may be reported as foreclosures to the credit agencies in violation of the Fair Credit Reporting Act and Florida debt collection laws. While the companies did not admit liability, the more harmful “foreclosure” category was deleted from over 11,000 individuals’ credit reports, replaced with the less damaging “settled for less”.

First and foremost, avoid timeshare transfer agents offering a “guaranteed” release in exchange for an upfront fee which can easily run into the thousands. Our previous interview interviewing an HOA Collection agent tells why.

http://insidetimeshare.com/timeshare-hoa-collections-agent-shares-experience/

Consumers need to be wary of television celebrities like popular financial expert Dave Ramsey, paid to endorse timeshare transfer companies with lofty sounding names. Some of these transfer agents may be legitimate, but heed the warning of our HOA collection agent above. Lisa Ann Schreier, author of Timeshare for Dummies, also explains why:

http://thetimesharecrusader.blogspot.com/2016/11/an-open-letter-to-dave-ramsey-and-laura.html

According to Mike Finn, bankruptcy is a worst case solution.

http://www.finnlawgroup.com/learning-center/mortgage-after-bankruptcy-timeshare

“Timeshare consumers can face a steep financial burden which can lead to a ruined credit score, and, in some cases, the need to file for bankruptcy. For more on the complexities of what happens to your timeshare and timeshare debt in bankruptcy, we encourage you to read on over at NOLO or The Bankruptcy Site,” said Mike.

http://www.nolo.com/legal-encyclopedia/can-timeshare-be-foreclosed-nonpayment-fees-assessments.html

“Failure to pay timeshare loans before bankruptcy can be reported to credit bureaus as delinquencies or even foreclosures, both of which can negatively impact your credit and make it extremely difficult to secure the 580 credit score that the FHA requires for its low down payment advantage.”

So if you are in this situation, what’s next? What can I do to save my credit score?

chains

Sun Trust Bank offers these words of hope and encouragement

http://www.bankrate.com/finance/real-estate/debt-collector-demands-huge-fees-on-past-due-time-share.aspx

“Now, if you were deceived or otherwise legally abused in the purchase, you can file a complaint against the seller. Each state has a different process so you’ll have to contact your state’s attorney general to determine the jurisdiction. Have a narrative of your complaint and a copy of your contract when filing. The agency will contact you if it finds a valid violation of real estate statutes (or sometimes banking statutes), especially if it involves deceptive sales practices. Collectors must legally back off in such under-dispute cases, though many don’t.”

“By the way, consumer complaints about abusive debt collectors have nearly tripled in less than a decade, according to the Federal Trade Commission. They’re exceeded only by identity-theft cases, says the FTC, which has sued about 200 collection companies since 2010. Many have been banned from doing business. “

The Consumer Financial Protection Bureau offers this helpful advice concerning what a debt collector can and cannot do.

https://www.consumerfinance.gov/askcfpb/329/are-there-laws-that-limit-what-debt-collectors-can-say-or-do.html

consumer

Our Advocates are here for you if you are concerned about your timeshare. By accumulating a volume of timeshare accountings, we can better recognize patterns of deceptive and predatory lending practices. The following Facebook was launched by Diamond Resorts members working with the company to resolve member issues.

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

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

Inside Timeshare thanks Irene for this insight into the problems of debt and also Mike Finn if the Finn Law Group for his legal contribution.

As for the goings on at Los Claveles, there is at present no confirmed news about Carol Parkinson the Owners Committee President, when we get confirmation of what is happening we will publish here.

If you have any comments about any article published we would like to hear from you, your contributions are welcome. Also if you require any information about any company that you have had contact with, but are unsure how to check them, Inside Timeshare will point you in the right direction.

friday dog

Friday’s Letter From America

Here we go it’s Friday again, the end of another busy week in the world of timeshare, it does seem to be a world that never sleeps. There is always something new to be reported, be it another “bogus” company or an old company coming up with a new “scam”, the ingenuity of some is beyond belief.

So far this week the news from the Spanish courts has been flooding in, with more owners having their contracts declared null & void and the return of all their money. The intrepid lawyers that form Canarian Legal Alliance have been very busy. Most of these judgements have been from the lower courts, who are applying the Supreme Court rulings with a vengeance, leaving no doubt what the interpretation of the timeshare law is.

Inside Timeshare has also been receiving a great deal of information about one company and their new product, yesterday’s article “New Name Same Company” shows the lengths some will go to appear to be different. Unfortunately for them, some of us can see through their smoke and mirrors, so we shall be keeping a very watchful eye on their activities.

On the “Bogus” law firm front Litigious Abogados and their other associated “lawyers” are still at it, the UK Action Fraud website has been receiving many reports of their activities. Inside Timeshare can also report that the Guardia Civil have an extensive file handed to them for investigation. So we wait with anticipation as to what the outcome will be.

So, now on to this Friday’s article from Irene and Irina, Resale and Rentals.

Consumer Advocate Las Vegas Attorney Bob Massi Launches Season 3 of Property Man in Arizona on Business FOX  

https://www.facebook.com/RealBobMassi/

Two more Timeshare Rs – Resale and Rentals

By Irene Parker – Resales

Irina Allen – Rentals  

April 20, 2017

Sign post 

If you own or are thinking of buying a timeshare – the Bob Massi Property Man show has provided important tips for timeshare buyers and sellers. In Season 2 Florida, Mr. Massi interviewed members of the Licensed Timeshare Resale Broker Association. The LTRBA members offered important tips for consumers interested in buying a timeshare as well as tips on how to avoid a scam when a timeshare member or owner needs to sell.

https://www.youtube.com/watch?v=VHCdcS2Ds-U

As a follow up to Mr. Massi’s prior timeshare segments, my husband and I were interviewed to express concerns and problems faced by Diamond Resorts International timeshare members. There are many who use and enjoy their Diamond timeshare, but as has been widely reported, rising maintenance fees and the lack of a secondary market can spell disaster for families who need to get out from underneath their Diamond timeshare. Timeshares can cost $100,000 or more so walking away with nothing can financially devastate families.

Our interview airs this Friday, April 21 at 8:30 PM EST on FOX Business. Las Vegas attorney Bob Massi has been a champion consumer advocate for the underdog. While showcasing spectacular homes of the wealthy, he also contrasts the flip side of wealth by interviewing consumers struggling with faulty or predatory lending practices.

Mr. Massi interviewed my husband and me after receiving a multitude of complaints after his segment featuring the home of Jackie and David Siegel. The Siegels own Westgate Resorts, a timeshare company based in Florida. The segment, “The Queen of Versailles” resulted in a multitude of complaints about timeshare. The Queen of Versailles is the name of the documentary featuring the Seigel’s massive 90,000 square foot home with 30 bathrooms, a 20 car garage and a 4,000 square foot clothes closet. The original documentary took Best Director at Sundance. Many wealthy Americans have built large homes, but with enough complaints to prompt a two year Consumer Financial Protection Bureau investigation of Westgate’s business practices, I wondered about such wealth at the expense of timeshare owners unable to sell and sometimes not even able to give back their timeshare.

Mr. Massi’s Licensed Timeshare Resale Broker Association segment warned timeshare owners to work through a licensed timeshare broker. Ironically, FOX Celebrities Dave Ramsey and Laura Ingraham are paid to endorse firms like Resort Release, transfer agent firms licensed timeshare brokers warn consumers to avoid.

http://thetimesharecrusader.blogspot.com/2016/11/an-open-letter-to-dave-ramsey-and-laura.html

A sequence of events led up to our interview with Mr. Massi. My husband and I attended a grueling and demeaning timeshare presentation at Diamond Resorts Grand Beach Resort July of 2015. We had purchased two Diamond contracts with few problems, but when I witnessed the tactics being used during this predatory sales presentation, I became alarmed. I returned to our unit at Mystic Dunes, turned on the television, watched “The Queen of Versailles”, and wondered how the wealth was won.

I wrote to Mr. Massi about my concerns. Never dreaming a response, I was surprised to receive a call from a FOX producer asking if my husband and I would be willing to be interviewed by Mr. Massi. Having just accepted a position as an interim music director, I declined, but was contacted again six months later and agreed to the interview. The producer said they had a multitude of responses to their first timeshare segment, but I was the only one invited to be interviewed, as I was the only respondent who wanted to talk about the positives, in addition to the negatives of timeshare.

To prepare for the interview I contacted LTRBA member David Cortese of Magical Realty in Orlando and asked if he would list our Diamond points. David was one of the LTRBA members interviewed by Mr. Massi. David sadly informed me he doubted that any of the LTRBA members would our list Diamond points as they felt the restrictions the company places on the use of secondary points are more onerous than that of any other major timeshare company.

To me this sounded like unfair business practices and a violation of fair trade. I filed a complaint with the FTC, but they just sent an autoreply pointing me in the right direction. If thousands of people complain, they go to Congress to enact better laws. That hasn’t happened.

Timeshare attorney Mike Finn of the Finn Law Group maintains a steady 500 timeshares cases. Mr. Finn said about 20% to 25% of his timeshare cases are against Diamond Resorts. He said he has never had a Disney client. I asked Mr. Finn why legislators have not addressed the harm done to consumers when a perpetual contract does not have a secondary market. A secondary market is not to be confused with a voluntary surrender or exit plan as those leave the consumer who has spent $25,000 to over $100,000, often financed at 12% to 18% interest, with nothing. The timeshare developer takes back the points and resells for full value.

“Instead of shunning the secondary market, embrace it; the developers should invest some of their profits into stabilizing the resale market. Take the lesson the auto, boat and camper industries have long ago learned, that a healthy resale market is essential to the entire industry, from beginning to end there must be a continuous flow, a circle of economic life, if you will. If you can’t set up a used timeshare lot across the street from your project, at least sponsor knowledgeable licensed real estate brokers well offsite so as not to compete directly with your retail operations. Sure you’ll lose some initial business to these brokers, but by indirectly supporting these brokers, you’ll make timeshare interests affordable to the folks who really can’t afford to buy retail, but can perhaps afford to repurchase the interest of your newly divorced initial purchaser (something that you arguably owed the poor gal or guy anyway) and, more importantly perhaps, support the continuing financial health of the resort via the annual maintenance payments now to be made by the new owner, and ever crucial to the future of the resort you built and developed. Timeshare developers could take pride, not just profit, from making family vacations an affordable part of the American lifestyle by opening up that opportunity to even more folks!”

http://www.finnlawgroup.com/learning-center/the-unconscionable-suppression-of-the-timeshare-resale-market

“Timeshare doesn’t need new litigation to assist the establishment of a re-sale market. All they need to do is support it from a market standpoint! They clearly have zero interest in doing that,” Mr. Finn added.

The Second R: Rentals (to be continued)

Part I – The 3Rs or F of Timeshare

http://insidetimeshare.com/3-rs-timeshare-part-1/

Part II – The 3Rs Resolution, Relinquishment, Refund

http://insidetimeshare.com/part-ii-three-rs-timeshare/

If you or someone you know has a timeshare problem, contact Inside Timeshare or one of our Advocacy groups. Our advocates are members helping other members, bringing our experience and knowledge to other members or owners while providing a clearinghouse of information about legal and legislative issues facing timeshare today.

Diamond Resorts has implemented a new Clarity Program after the Arizona Attorney General issued an “Assurance of Discontinuance” and an $800,000 settlement. Diamond also has a Consumer Advocacy Department that claims to help members from Day 1 if they have concerns about their membership or purchase.

Timeshare owners worldwide would like to thank Mr. Massi and Business Fox for bringing this important topic to the attention of the public in America, Europe, Australia, New Zealand and the Philippines. Inside Timeshare works with contributors and timeshare members in an ever expanding horizon.

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/

Jigsaw men

So there we have it, the end of another week, Inside Timeshare again thanks Irene and Irina for their contribution, we also thank all who have contributed information to help others. Next week we will be highlighting another military family who have fallen foul of the sharp practices of some timeshare sales agents. These stories are all too familiar, the consistency of the testimonies of different families bares witness to some very nasty sales techniques.

If you have a story to tell or have any information about a company that you would like to share with others, Inside Timeshare would love to hear from you.

Have a great weekend.

friday cat