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The Tuesday Slot with Irene

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

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

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

tribunal-supremo

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

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

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

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

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

As they say the proof is in the pudding!

On with this weeks Tuesday Slot.

Sell My Timeshare Now,

A Timeshare Listing Service for Buyers or Sellers

Diamond Member Karen Krokosh Issues a Warning

face1

By Inside Timeshare Contributor Karen Krokosh

Comments about SMTN follow Karen’s article

January 9, 2017

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

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

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

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

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

http://www.licensedtimeshareresalebrokers.org/

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

Here’s what I paid SMTN:

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

promotion

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

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

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

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

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

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

Comments about Sell My Timeshare Now by Irene Parker

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

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

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

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

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

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

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

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

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

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

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

This Business Is Not BBB Accredited

Sell My Timeshare Now, LLC

D

Customer Review Rating:

35%

62%

[12] Positive Reviews

[1] Neutral Reviews

[21] Negative Reviews

[34] Total Customer Reviews

[107] Total Customer Complaints

Composite Score:

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

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

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

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

Good question. Here is the straight scoop:

ken1193

1 month ago

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

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

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

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

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

Keep calm Homework

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

 

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The Wednesday Post

This week has been a rather quiet week on the legal front, yesterday it was announced that the High Court in Santa Cruz de Tenerife ruled against Resort Properties / Silverpoint yet again. In this case the judge ruled against the points system which the contract contained. The contract was declared null & void with the award of over 44,700€ plus legal interest being made.

As this article was being prepared this latest news came in from the Supreme Court in Madrid, once again it was against the above company Silverpoint. This brings the total against them from this court to 11 rulings. Details at present are not available but the contract was once again declared to be null & void, with the return of over 20,000€ plus legal fees and legal interest.

These cases as usual were brought on behalf of clients by Canarian Legal Alliance, who have now got around 50 rulings from Spain’s highest court. Quite an achievement.

We have also this week received more enquiries about Abogados Amable & Garcia, one of the family of fake law firms which are part of the Litigious Abogados family. Luckily these readers found the article in time and have not parted with any money. It is only a matter of time before a new name appears, so if you have received any correspondence from a law firm in Tenerife which state you can be included in an upcoming trial against your timeshare resort, let us know.

Now on to Wednesday’s article from Irene.

Can the CASA Family Court System Work for Timeshare?

How members helping members can change the timeshare world

hands circle

By Irene Parker

July 12, 2017

Inside Timeshare is honored and proud to be part of a movement. Our Timeshare Advocates deserve a pat on the back as we hear from more and more members either resolving issues concerning their timeshare, so they can continue to use and enjoy their vacation plan, or at least be able to get out from underneath a dream vacation that turned into a financial disaster.

Aristotle Onassis, husband of Jacki O, once said he made the most money on ideas that were very simple – only no one had thought of them before.

Such a plan is logical, effective and offers a cost benefit in that it takes some burden off the courts, the families affected, and most importantly, the trauma and stress resulting when, as NBC Lester Holt described in his Dateline title, “The state steps in”, removing a child or children from their home for often over a year.

Timeshare is not as gut-wrenching as foster care. There is nothing as profound as telling a mom or her children parental rights have been terminated. Money can be replaced, but a child cannot. However, more than once I’ve been told of elderly widows considering suicide because of a vacation plan she could not get rid of and was not able to maintain due to the loss of a spouse. Frantic, desperate, angry, confused and overwhelmed are but a few adjectives that could describe many of the calls coming into Inside Timeshare.

CASA works even better for Timeshare members

Anyone who works for a nonprofit can attest to the challenges of keeping volunteers motivated for an extended period of time. Our Timeshare Advocacy Group™ volunteers are often victims themselves, so we have a built in motivation factor. There is also the empathy and understanding that exists when someone knows exactly what it feels like to be victimized.

casa

What is CASA or Court Appointed Special Advocates?

(CASA in some states is called Guardian ad litem)

CASA is a nationwide movement that started in 1977 when a Seattle juvenile court judge launched a program by recruiting court appointed volunteers to advocate on behalf of a child or children in state care. Examining an often convoluted family tree to decipher what went wrong and how to prove a child has been abused or neglected is a daunting task. A CASA volunteer is trained to be a detective of sorts, gathering information from all facets of the child’s life.

After gathering information, the volunteer prepares a court report letting the judge and interested parties know what outcome the child wants to see happen and what the CASA feels should happen. One judge told me she almost always takes the opinion of the CASA over the opposing counsels.

The CASA sticks with the child, interacting with the biological parents, foster parents, social services, schools, therapists and even medical doctors until permanency is  achieved by returning the child to his or her biological parents, or termination of parental rights and hopefully adoption.

It’s not hard to imagine how this process could be applied towards the timeshare member victimized by deceit, concealment, violation of trust and bait and switch. Some timeshare members have multiple contracts that have been purchased over a period of years. It has been helpful to have a volunteer walk that timeshare member back to the beginning to determine, when and where, in the life of the member, did their vacation plan go so wrong.

The most successful outcome is returning a previously happy customer back to the state of mind they were in before they were deceived so that the timeshare company keeps the customer and the customer can again use and enjoy their timeshare as they did before.

Bluegreen members support other members on this Facebook

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

Diamond members support other members on this Facebook

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

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.

A sharing of information from all Facebooks and from non-timeshare owning Advocates, like attorneys who tend to not buy timeshare, is posted on the Timeshare Advocacy Group™ Facebook, administered by Irene Allen.

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

It is hoped there will come a day when timeshare developers recognize that a product only sold through deception and a same day sale might be a product nearing the end of a maturing life cycle. Companies like Disney work hard to protect their brand and Hilton is known for a somewhat consumer friendly secondary market, although several Advocates will take exception to this statement arguing that no timeshare has an adequate secondary market.

Probably the most common comment we at Inside Timeshare hear is, “At least I know I am not alone.” Proactive action, working with a volunteer towards timeshare resolution, relinquishment, refund or even foreclosure, takes the problem from the unknown to the known. Consultants and behind-the-scenes Advocates add an additional layer of advice and protection. One very important consideration is that many of those we have helped were on their way to the upfront “guaranteed” deed-back firms that often prey on those already victimized. From this standpoint, the developer, the timeshare lobby, and the members are on the same side.      

Once again thank you to all our Contributors. Contact Inside Timeshare if you, or someone you know, needs assistance or would like to share their timeshare story for the benefit of others.

not alone

Inside Timeshare cannot stress enough that doing your homework and due diligence before engaging with any company is paramount. If you need help or advice on how to do this just contact us and we will either find out for you (if we don’t have them on file already), or point you in the right direction.

homework

Since posting it has just been brought to our attention that the Litigious Abogados Family do in fact have a new member, Amador Gameca Abogados, which is a very similar name to a previous article published on 1st June, Armando Gareca Abogados. The website is the same layout as all the others, it even show the same logo a Armando Gareca Abogados. The photos of the lawyers are the same one we have seen on previous incarnations, these you will probably find can be downloaded from the web.

This is their website.

http://amadorganeca.com

So it just goes to show that the above picture is spot on. More on this is it comes in.

not alone

Latest News from Europe and the US.

Before we go on with today’s article from Irene, there has been some breaking news over the past week. The Supreme Court in Madrid has issued three rulings against Silverpoint, on behalf of three clients of Canarian Legal Alliance, all three came within days of each other.

In the first was the British Client who purchase at Club Paradiso, the court ruled that this was indeed timeshare and not a club affiliation as Silverpoint claimed. This case has taken around five years to get to this stage, with appeal following appeal.

The second case was that of a CLA client from Belgium, the court declared once again the illegality of contracts over 50 years.

Another British client of CLA who purchased the Hollywood Mirage and Beverly Hills Club Vacation Package. Again this ruling was around the “club affiliation” scheme, the court once again ruled that this did indeed fall under the scope of Spanish timeshare law, (Ley 42/98) as in the first ruling.

So far since March 2015 CLA have achieved remarkable results, with around 42 rulings from the Supreme Court, involving numerous timeshare companies, with Anfi being the most prominent. (Follow the link to The Northern Echo article on the first case).

http://www.thenorthernecho.co.uk/news/15045851.Woman_wins_a_landmark_legal_ruling_on_timeshares/?ref=rl&lp=2

In the article by Irene today, she looks at the Diamond Resorts Clarity (™) programme, it would seem that Diamond are trying to change the way they operate amid growing protests from owners, especially the elderly.

This programme at present will not be rolled out in Europe, Although Diamond Resorts in Europe have already begun to make considerable changes in their approach to owners / members. They have set in place a programme where members can surrender their timeshare under what Diamond call “exceptional circumstances”, with this there is no charge.

One reader has Steve has taken advantage of this, with Diamond accepting his surrender, but there is a twist in this story. Diamond are investigating how he was sold and how he also ended up with a finance package, they obviously believe that there is something wrong. Once this is completed, Inside Timeshare will bring you the results.

Contained within the article is an interview Irene had with Maya Pogoda the Diamond Public Relations Officer. She has welcomed the chance to speak with Inside Timeshare and has supplied numerous comments and answers to our questions. So on with Irene´s article.

Diamond Resorts Clarity (™) – The Good, the Bad and the Critical

Diamond Owners are Hopeful but Skeptical

By Irene Parker January 29, 2017

Skeptical Method

DIAMOND CLARITY(™) is the offspring of Arizona Attorney General Mark Brnovich’s issuance of an “Assurance of Discontinuance” resulting from allegations that Diamond Resorts International violated the Arizona Consumer Fraud Act.

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

Maya Pogoda, Diamond Public Relations spokesperson, talked to me about the new national program consisting of a series of operational procedures and enhancements, new training and compliance procedures and protocols, and other customer-friendly changes to the sales process.

Press Release excerpts:

Missing from press release: “We recognize the need for Diamond Resorts and all timeshare companies to change or improve timeshare business practices that have led to predatory lending and deceptive sales techniques, resulting in harm to timeshare owners,” suggests Irene.

I took issue with several statements made in the press release:

“At Diamond Resorts, we already excel in customer satisfaction, but we are constantly looking for ways to do even better,” said Executive Vice President, Chief Sales and Marketing Officer Michael Flaskey.

I spoke with a few timeshare attorneys. One paralegal who works for a timeshare attorney asked not to be identified. Their firm has released 10,000 owners from timeshare contracts and said Diamond is their biggest “customer”.  Timeshare attorney Mike Finn of the Finn Law Group carries approximately 500 timeshare cases with 20% to 25% against Diamond Resorts. Mr. Finn said he’s never had a Disney timeshare client.

There are also several angry Diamond owner groups:

DRIP Diamond Resort International Protestors launched by over 1000 angry British owners trying to be released from contracts.

Intrawest Embarc Diamond Facebook page has over 2500 Intrawest members. An administrator of this group recently suggested I post our last Inside Timeshare article on their Facebook page after being banned by a Diamond Influenced Member Supported 7000 member Facebook group.

I had sent the article to an Intrawest administrators individually. She receives a link to all my articles. Unfortunately, one of the administrators from the 7000 member group voiced a warning to one of the other Intrawest administrators urging a word of caution concerning the dangerous piano teacher, Irene Parker.

https://www.facebook.com/Club-Intrawest-Owners-Group-921012087982547/

The 7200 member Facebook group consists of about 50% happy/angry owners. Members who are 100% negative on Diamond Resorts are privately and quietly urged to join DRIP, according to one member who asked not to be identified. Ironically, the same administrator was banned from the DRIP website accused of being too positive.

Charles Thomas was banished within days of joining the 7000 member Facebook accused of supporting the Canarian Legal Alliance. Charles can better explain the success CLA has had fighting timeshare abuse.

Owner infighting is strongly encouraged by Diamond Resorts because United we Stand and Divided we Fall. There is a lot of that going on in the world today.

Inside Timeshare allows political commentary to enter into our articles. In fact, given the fact the Trump family is launching a timeshare in Scotland, it is even encouraged. One of President Trump’s closest friends of 20 years is David Siegel of Westgate. Westgate has been under Consumer Financial Protection Bureau investigation for the last few years.

Continuing the litany of unhappy Diamond owners:

Monarch Website of angry owners owning fixed weeks could not gain access after converting to points, resulting in a class action lawsuit.

http://www.monarchowner.com/p/our-story.html

Poipu Angry Owner website:  Assessments resulting in a class action lawsuit.

https://www.facebook.com/pages/Point-of-Poipu-Angry-Owners/148027451960608

Thousands of complaints have been voiced on Redweek, BBB and other internet complaint sites. Just yesterday a Redweek member reached out to me. I sadly informed her she made my list of top two percent timeshare horror stories. The subject of Diamond timeshare sales agent Rick Casper of Polo Towers Las Vegas will be the subject of my next article

Of course, people can always contact me directly.

Irene Card

RedWeek continues to allow me to post.  I was asked to provide a link to the article that caused me to be banned. Controversy generated by an article is a writer’s best friend.

My Facebook page has no quota on happy/angry comments. I deny I am 100% negative on Diamond. We still enjoy Diamond Resorts and find good value at times. I am encouraged by the meaningful conversations I have had with diplomat and PR spokesperson Maya Pogoda.

I find relatively few complaints on the internet about Hyatt, Hilton or Disney.

Back to the Clarity Press Release:

“It will increase transparency”

Keep Reading

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Dialogue: The Way Forward!

Today Inside Timeshare publishes another article submitted by Irene Parker, with the end of the election in the USA, Irene looks at the divide in the nation and how this also equates to the divide in the timeshare world. In this article she looks at the great gap between owners and developers, using a video from Parker J. Palmer titled Stand in the Tragic Gap, showing how there are two sides to any controversial issue.

Again Irene calls on developers to join with owners to find a solution which will benefit both parties, it has been said before in previous articles, until both parties work together then there is little hope for this industry. There are many owners who love what they have, but there are also many who feel they have been let down, either with the “resale” or “secondary” market, or down to the problem of handing back when no longer being able to use either from illness, financial changes or just old age. This is also a problem for many owners in Europe, some developers have put in place exit strategies, some are fair, others are downright greedy with up to 4 years maintenance payments and only limited numbers being allowed to exit on a first come first served basis. In other words you need the luck of a lottery win.

Inside Timeshare hopes this article will explain the problem and how it can be solved, enjoy.

 

How Will the Outcome of the US Presidential Election Affect Timeshare?

c1By Irene Parker, November 9, 2016

Like the Clinton and Trump camps, timeshare owners and developers cannot heal until the two sides listen to each other. If we continue to

“Stand in the Tragic Gap”

Timeshare will continue to be a battlefield with timeshare owners at odds with timeshare developers. True and meaningful dialogue could heal an election or timeshare. Sometimes timeshare and elections overlap, as in the case of New York Attorney General Eric Schneiderman and Florida Attorney General Pam Bondi:

http://insidetimeshare.com/news-across-pond/

According to the Tragic Gap, creator Parker J. Palmer says there are two sides to any controversial issue. One side Parker Palmer calls “corrosive cynicism” – “greed is how this works, I take mine, run and forget these other people and their needs.” The other side is “irrelevant idealism”. Parker Palmer claims both sides cause a functional disconnect that takes us out of action.

Ironically, my name is Parker and the CEO of Diamond Resorts is David Palmer.

Take a listen:

http://www.couragerenewal.org/723/

Next consider:

Timeshare owners of the Diamond Resorts Grand Beach Resort, a 192-unit property in Orlando, Fla. … learned in a letter in September that their annual maintenance fee would rise 14.9 percent this year.

But here’s how the CEO, David Palmer, described it to investors in 2014, per a NY Times article written by Pulitzer winner Gretchen Morganson

“Anything that is put in the budget that gets expended on an annual basis, we get our 15 percent fee,” Mr. Palmer explained to investors at a September 2014 conference, according to a transcript. “That is basically a 100 percent profit business.”

Many remember the junk bond debacle and subprime mortgage issues that drove unsuspecting homeowners into foreclosure, while unscrupulous lenders like Drexel Burnham Lambert made billions.

Keep Reading

one-drop

More News from Across the Pond

With the US Presidential election now coming to a close over the next week, Irene Parker, who collaborates with Inside Timeshare on matters which affect timeshare on both side of the Great Lake (or Pond as our American friends call it), has sent in her most recent article.

It very much focuses on the political game that is affecting timeshare in the US, showing how it splits into Republican and Democrat, as she explained, the industry is very much pro Republican, the Trump camp, the Democrats seem to be supported by the timeshare owners. We should not be surprised by this.

Irene has very often commented on the documentary “The Queen Of Versailles”, the wife of the owner of Westgate, David Siegel. It shows the 90,000sq ft property they have been building as their home. It is quite staggering, with a walk in wardrobe (sorry closet), bigger that most homes in Europe. Irene has in many writings dubbed herself “The Peasant of Venice” in contrast to The Queen. Have to admit Irene does have a great sense of humour. Irene claims it’s not humour if one studies Polish and Russian history and the need for peasant uprisings.

Irene opens her article on the New York Manhattan Club, when the Democratic New York Attorney General Eric Schneiderman halted trading of timeshare. As you will see from her article, it is a very murky world indeed, the lines between timeshare and politics are blurred to say the least. Enjoy her article it reveals a lot.

Timeshare Battles Split Down Political Party Lines

October 26, 2016

By Irene Parker submitted to Orlando Sentinel

Democratic New York Attorney General Eric Schneiderman made headlines taking on presidential candidate Donald Trump and the Trump Foundation. Mr. Schneiderman claimed the Foundation did not meet certain administrative requirements necessary to receive donations in New York.

In addition to challenging Trump, Mr. Schneiderman has also taken on another developer and billionaire, Bruce Eichner, and Eichner’s Manhattan Club timeshare. Mr. Schneiderman halted timeshare sales at the Manhattan Club due to allegedly fraudulent sales practices involving a “bait and switch” scheme. Manhattan Club buyers learned there was a lack of availability for those who purchased memberships, while the general public could easily book online. A court battle that began in 2014 continues today.

The New York Post unleashed an onslaught of criticisms against Mr. Schneiderman accusing him of picking his fights based on political motives.

Republican Florida Attorney General Pam Bondi created her own headlines when she accepted a $25,000 donation from Donald Trump while considering whether to participate in a Trump University investigation. Her investigation was dropped after receiving the donation.

There is an eerie similarity between Trump U and timeshare sales, illustrated in an extraordinary CNN interview between Trump U salesperson James Harris and CNN investigative reporter Drew Griffin. Not all timeshare sales agents are predatory, but complaints about overly aggressive sales tactics abound.

In the CNN interview, Harris is accused of exploiting the elderly by selling them classes averaging $34,000 and then “up selling” them to attend more classes. In rogue timeshare presentations, an average timeshare week costs $25,000 and after the initial purchase, owners are barraged to purchase additional points or weeks.

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One Foot In The Grave!

“I don’t believe it, I just don’t bloody believe it!” said Victor Meldrew. But yes it is true, the Supreme Court has just issued their fourteenth and fifteenth judgements.

 

Canarian Legal Alliance just keeps them coming in, they announced this news late yesterday 13 July 2016. On Tuesday the court awarded 18,500€ to a UK family and declared their contract null & void because it was longer than the 50 years stipulated by law. The following day Wednesday another UK family had their contract declared null & void and awarded 13,000€, including double the deposit back for payment within the 14 day cooling off period. They had also been sold floating weeks, again in contravention of the laws laid down.

 

The Supreme Court has now consistently ruled that contracts over 50 years, floating weeks and points along with the taking of deposits within the cooling off period, are contravening the laws on the selling of timeshare in Spain. It now has to be asked when other countries are going to enforce these rules which were laid out by EU Timeshare Directives?

 

Spain is obviously leading the field in this area, with these judgements all lower courts must now abide by them.

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So, just in the past week Anfi have been penalised for considerable sums, the question now is how long can they sustain this? There are more cases waiting to be heard by the Supreme Court, all because Anfi have taken the decision to appeal rulings by those lower courts. If they had any sense, I would have thought they would pull out of those appeals and just admit defeat.

 

The next question is how long will it be before other companies such as Diamond and Club la Costa have more cases brought against them? Is it the death knell for timeshare in Europe?

 

How will this news affect Apollo Global Management after their takeover of Diamond Resorts International? There are already rumours across the great lake that Wyndham is looking to buy the shares, the price has already been put at around $36 to $39 a share. I hope to get some insight into this from my American colleague Irene Parker who writes for the financial journal The Street, ( see link for her article on Hilton). Inside Timeshare will keep you posted on this as and when the news comes in.

 

Once again Inside Timeshare congratulates these two families and the legal team of Canarian Legal Alliance for their splendid work. They certainly have paved the way for others to follow.

 

If you need any information or advice on any timeshare related matter, Inside Timeshare will do its best to provide you with the best answers.

 

https://www.thestreet.com/story/13636683/1/hilton-worldwide-and-spinoffs-are-good-investments-now-or-later.html

TWO MORE SUPREME COURT RULINGS FOR THIS WEEK

 

 

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A Short History of Timeshare

The story of timeshare is rather vague, although it is generally credited to a French developer Paul Doumier. His company The Société des Grands Travaux de Marseille developed ski resorts in the French alps. He coined the phrase “It is cheaper to own the hotel than rent the room”, this became the company slogan and it attracted many buyers. Doumier began marketing his concept between 1964 and 68, primarily with the resort in the alps.

 

Over the border in Switzerland another company developed their own timeshare business, this was Hapimag, short for Hotel und Appartementhaus Immobilien Anlage AG, and was created in 1963. The owners Alexander Nette and Guido Fenngli began buying their first resorts, these primarily were in Italy, Spain and Switzerland. Hapimag marketed their timeshare on a right to use basis rather than on deeded ownership.

hapimag

Hapimag is still going strong today with around 60 resorts, spanning Europe, North Africa, Turkey and Florida. They are considered to be of a high standard with Hapimags own shops and fitness areas. They also have a very good reputation for their child care and activities. Strangely enough they have never affiliated with the major exchange companies and are considered one of the largest independent timeshare companies.

 

In 1969 the first timeshare resort in America was opened in Hawaii at Kauai Kailani on Kauai. The founders of the company Vacation International, Bob Burns and Bob Ringenburg, sold their weeks in 40 year increments and also developed the first points system.

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Florida was next and was one of the first states in continental America to develop timeshare in the early 1970´s. The Californian company Innisfree was next, they were the first to sell deeded timeshare. Around 1973 they in partnership with Hyatt had their first development at Lake Tahoe in California. It was here that the term timeshare was first used to describe vacation time purchased from a resort. When Innisfree used the word timeshare on an application to the Californian Department of Real Estate, the popularity of the term increased, it was then used on all promotional materials.

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Around 1974 RCI was founded, the husband and wife team saw a need for owners to be able to exchange with owners from other resorts, which increased the popularity of the concept. No longer were you tied to the resort you purchased. RCI has since become the largest of the exchange companies and has offices on every continent. They are also part of the Wyndham group.

 

From the late 1970´s and into the 80´s timeshare development increased, with massive building programs worldwide. Spain and Portugal were probably the main areas for these developments.

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Since the start many companies have become involved in timeshare, some good some bad. Major companies such as Disney, Marriott, Hilton and Hyatt have helped improve the image of the product. They offer some of the best resort around the world and also have the benefit of being among the largest hotel chains.

In 2007 or thereabouts the famous holiday camp company Butlins developed a timeshare product at their Minehead resort in Somerset. They offered a points system called Blueskies, which had a lifespan of 30 years as opposed to the perpetuity contract most companies were selling. Members were not limited to Minehead, they could also use the points at other Butlins resorts or even use the exchange system with RCI. Butlins has certainly come along way from it´s Hi De Hi image.

butlins

With companies such as the ones mentioned here timeshare can be a good product, it is just a shame that some companies involved in the industry have given it a bad reputation. Again it is a question of oversight and regulation. If the right model is used there would not be the problems associated with the industry.

 

I hope that this article has given a small insight into the history of timeshare, it has been quite fun looking for the information and answered many of the questions I had. There have over the years been many stories as to how it started, Most of the sources I located all agreed to this version.

 

If you have any questions about timeshare you can contact Inside Timeshare via the comments section.