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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/

globe

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

cartoon-airplane

law

Legal News From the US: Castle Law Group PC v Timeshare Developers

Today Irene Parker gives us an insight into one lawsuit that has made the headlines in the US, it would seem that across the great lake it is the timeshare companies that are on the legal offensive. In Europe the timeshare companies are very much on the defensive as we have seen in some of our previous articles.

Yesterday we published an article about the legal battle being waged against Silverpoint, they have stated that they will be filing a case with the High Court of Justice of the European Union, arguing that Spain has got the EU Timeshare Directives wrong.

eu court justice

Just to clarify one point on the EU Timeshare Directives, that is what they are “directives”, they are not law. A directive issued by the EU is a guide to all EU States to enact into their own domestic laws certain aspects which affect citizens. It is up to each individual state to interpret those directives as they see fit. The whole point is that each State may strengthen the directives, which is what Spain has done with their own timeshare laws, firstly with Ley 42/98 and more recently with Ley 4/12.

Directives are there to try and unify each State’s laws, especially on the matter regarding consumers rights, which the timeshare directive was intended to do. Before the timeshare directives came out, timeshare in Europe was what can only be described as lawless, timeshare companies could walk all over the consumer, there was no protection, timeshare was a new concept which nobody actually understood.

It followed an old economic system known as Laissez-faire, which has its roots in the 17th and 18th centuries, it was to be free of any government intervention, such as regulation. More recently a new term was conceived by conservative politicians and economists ‘free-market capitalism’. Timeshare has always followed this model, profit, profit and more profit at the expense of the consumer. (Again it sounds like Star Treks Ferengi).

Until laws are strengthened to the benefit of the consumer, we are going to see many more of these legal battles, be it consumer against developer or developer against law firms, the stage is set, let battle commence!

Now on with today’s article by Irene

Castle Law and Judson Phillips is Sued in Federal Court for Fraud

Orange Lake v. Castle Law Group PC

Westgate v. Castle Law Group

Diamond Resorts v. Castle Law Group

Who Next v. Castle Law Group

Speak truth

By Irene Parker

August 22, 2017

Who is Judson Phillips?

Tea Party Nation is a conservative American group considered part of the Tea Party movement.   The group was created by former Shelby County, Tennessee assistant district attorney Judson Phillips in 2009

https://en.wikipedia.org/wiki/Tea_Party_Nation

Judson Phillips Ridiculed for Wanting to Deny Others the Right to Vote

Judson Phillips, the lawyer behind Castle Law Group (Nashville), latest idea has created a hurricane size backlash against Mr. Phillips. The Castle Law Group owner believes that only property owners should have the right to vote.  Phillips seems to believe those who aren’t the elite feudal lords of property can’t be trusted to vote. Instead, they must be put back in their place as serfs, working for their lords for scraps off the feudalistic tables.

http://www.brighthub.com/money/home-buying/articles/123520.aspx

A Bright Hub reader’s response:

Yes, I am Republican but in no way would I ever want to be affiliated with any political group who deemed renters shouldn’t vote in public elections.

Who Castle Law Group is not:

http://www.castlelawgrouppa.com/

I contacted attorney Ben Hillard of the Castle Law Group P.A. in Largo, Florida a few months ago – by mistake. Mr. Hillard responded saying he thought I had his law firm confused with Castle Law Group PC of timeshare fame, law firms differentiated only by the initials P.A. and PC. Mr. Hillard would like to make it clear his firm is in no way associated with Mr. Judson Phillips or his law firm Castle Law Group PC. In a recent letter to Mr. Hillard, Mr. Phillips said his firm is considering rebranding for reasons not associated with Mr. Hillard’s concerns, the similarity in names.

Here is the Castle Law P.C. and Orange Lake Lawsuit as reported by Paul Brinkmann at the Orlando Sentinel

Orlando-based timeshare companies Westgate Resorts and Orange Lake Country Club filed nearly identical lawsuits in Orlando against Tennessee firms Castle Law and Castle Marketing. Westgate and Orange Lake accuse the Castle companies of charging some customers an upfront litigation fee of $7,500. Orange Lake said Castle filed no lawsuits for any of its owners who paid the fee; Westgate said Castle hasn’t filed lawsuits for some owners who paid the litigation fee.

A senior partner with Castle — attorney and Tea Party leader Judson Phillips — denies those allegations…. he said in an email he believes the suits are frivolous, and he and Castle have obtained good results for clients.

http://www.orlandosentinel.com/business/brinkmann-on-business/os-bz-timeshare-cancellation-fraud-20170618-story.html

According to a letter sent to Orange Lake attorney Brian Lower, from a Castle Law Group attorney, Castle accused Orange Lake of “gross misrepresentations regarding the terms and conditions of the Orange Lake timeshares in that they were fraudulently induced to enter into the timeshare contract and the debt instruments associated with such contracts in violation of federal and state laws.”

A letter from a lawyer like this triggers a “cease and desist” demand of all communication with the client, including collection attempts. This cease and desist letter has served as a bone of contention to timeshare developers in that a debt collector may not communicate with a consumer if the consumer is represented by an attorney or has an open Attorney General complaint, under the Fair Debt Collections Protections Act.

Among the twelve causes of action in Castle’s cease and desist letter against developers, are those our Inside Timeshare readers who have contacted us asking for help would not disagree with:

  • Improper and unethical high pressure sales tactics.
  • Gross and deliberate misrepresentations regarding benefits of ownership.
  • Gross misrepresentation regarding the ability to utilize timeshare points to cover fees associated with membership and exchanges.
  • False information regarding the ease and/or ability to resell for a profit.
  • False sense of urgency to purchase the same day.

Castle Law Group PC is not Better Business Bureau accredited, is nonrated, and a consumer complaint warning has been posted.

https://www.bbb.org/nashville/business-reviews/timeshare-cancellation-and-litigation-attorneys/castle-law-group-pc-in-nashville-tn-37113357

According to the Castle Law website they are timeshare lawyers trusted by thousands with a 4.7 out of 5 star ranking based on 12 reviews (powered by GetFiveStars). When I reached out to the firm for comment, I was put on hold for a very long time.

https://timesharecancellation.com/

you decide

Greg Crist, CEO of the National Timeshare Owners Association was recently quoted by the Orlando Sentinel that more lawsuits against cancellation companies were likely in the works.

“Some of those cancellation companies that have been targeted by developers were actually started by their own former timeshare employees. Those folks learned how to exploit the system by learning what is called the inside track. They know how the high-pressure sales tactics work,” Crist said. “They attract timeshare owners in the same way — post cards offering a free dinner, or an evening out. They show owners how maintenance fees escalate, and literally scare the hell out of these people using calculations that are wildly inaccurate and overstated. These are not law firms but represent to have an attorney on staff, giving the illusion that there are legal services involved in the transaction. Rarely does the company even communicate with the resort and the timeshare owner doesn’t even know what is happening until it is too late. Why is that?”

Crist explained this is often due to an unqualified money back guarantee the company provides that isn’t worth the paper it’s printed on. The owner is simply lulled into a false sense of security, until they are foreclosed on and that’s when all hell breaks loose. Crist has watched this happening for years, but says the industry is making a mistake by throwing legitimate attorneys in the same mix with resale, transfer and advocacy groups.

While the NTOA is involved with educating owners, advocating for their rights and helping them engage in the product they already own, they do not sell, transfer or offer services like TPE’s do. Any timeshare member or owner can join NTOA.

https://www.ntoassoc.com/

GBUgly

The present legal climate in the timeshare world is reminiscent of the old west with summons flying like bullets back and forth across the corral. Lost in the middle is the consumer, many complaining they purchased a timeshare based on false promises. The timeshare lobby ARDA and the major timeshare developers seem determined to ignore outcries of deceit on the front end of the timeshare sale.  

All attorneys are not created equal. It seems that timeshare developers don’t want a timeshare member to ever contact any lawyer and they lump all attorneys into a kettle of frivolous lawsuit filers. Two major developers attributed their rise in default rate due to “attorneys targeting members and cease and desist letters.” As in any profession, some attorneys do have questionable business practices, but any citizen should have a right to their day in court and the legal representation that accompanies that right if they feel they were deceived into purchasing a timeshare.

One former Hyatt and Diamond Resorts sales agent described “inventory recycling” as a hamster wheel that sometimes begins with deceit and bait and switch on the front end of the sale. To date (as of August 16, 2017) Inside Timeshare has received 124 inquiries of which 110 allege they were deceived on the front end of the timeshare sale. Most have outstanding loans.

“I am asking you to look at the moon and you are staring at the end of my finger,” deceased Jesuit Priest Anthony DeMello once wrote. That’s how I feel listening to case after case from family members, often financially devastated, alleging they were deceived, sometimes just days after a rescission period. Why won’t developers take a closer look at their own house?

ethics cartoon

Contact Inside Timeshare if you have a positive or negative timeshare experience to share, through your experiences others may have a better understanding of what they are going through and see that they are not alone.

If you need any further information regarding any article published, or wish to know where you stand legally with your timeshare, Inside Timeshare is here to help. Contact us and we will point you in the right direction.

week review

End of the Week Review.

We started this week with Irene’s article on Consumer Protection Week in the US, we end with another.

While in Europe and especially Spain, we have seen more news coming from the Supreme Court. At the start of the week it was announced that Silverpoint formerly Resort Properties, have been ordered to pay back 169,000€. This was announced in the Spanish newspaper El Diario (see link), the Spanish press have been very fast to publicise these rulings, which have gone virtually unnoticed in the UK press.

http://www.eldiario.es/canariasahora/tribunales/Varapalo-Supremo-timesharing-comercializado-Canarias_0_619088490.html

In another case, the Supreme Court ruled against the same company for infringements of the timeshare laws for a German client. In this particular case the court again stated that the client was a consumer not an investor as Silverpoint had claimed. The client’s contract was declared null and void and awarded over 30,000€.

These cases have been brought by the Canarian law firm Canarian Legal Alliance, who so far since the first Supreme Court ruling 2 years ago, have secured over 3 million euros for their clients, with over 1.2 million euros already in the accounts of the clients.

CLA Logo

To celebrate the 2nd birthday of the first ruling, the Norwegian lady who made legal history visited the lawyers who fought her case. Mrs Tove Grimsbo, had an epic battle which lasted several years, her case was highlighted extensively in the Scandinavian press, but through the perseverance of her lawyers she eventually won through.

 

http://insidetimeshare.com/meredith-pritchard-new-exit-claims-company/

So on to Irene Parker’s End of Consumer Protection Week article.
End of Consumer Protection Week March 5 – 11

By Irene Parker

satisfied

Consumer Protection Week ends today. Here are some tips on purchasing and owning a timeshare. Timeshare is a good product for some but it does not work for everyone.

“Buyer Beware!”  The psychological methods used by some timeshare companies and agents are designed to wear the consumer down – difficult to overcome even by the strongest individual. “My personal opinion, working as a sales agent for Diamond Resorts and Hyatt, convinced me that greed and making the sale at any cost is the corporate culture. I saw manipulation, threats, deceit and fraud used to make sales. When you have a good product, these methods are not necessary to make the sale,” reported one former timeshare sales agent.

Do your homework. Few will buy a house or car without some comparison shopping. Contact a member of the Licensed Timeshare Resale Broker Association to compare developer versus secondary market prices and benefit or lack of benefits when buying a “used” timeshare.

http://www.licensedtimeshareresalebrokers.org/

Ask yourself if the “FREE GIFT” is really worth signing a perpetual contract, accompanied by perpetual maintenance fees, in a same day sale, with little or no secondary market.  Most timeshare companies do not offer buy-back programs and voluntary surrenders are not guaranteed.

If you are a timeshare owner who feels you were lied to or deceived in your timeshare purchase, and if resolution is not achieved after contacting your resort:

File a complaint with the Attorneys General of the state where you signed your contract, where you live, and where the resort is domiciled.

http://www.naag.org/naag/attorneys-general/whos-my-ag.php

File a complaint with the Consumer Financial Protection Bureau under the mortgage option (even if no mortgage).

https://www.consumerfinance.gov/complaint/

In some states the standard of fraud is as simple as dealing honestly and fairly. In such states, if you were lied to, the contract is fraudulent.

We should begin now planning for Consumer Protection Week 2018. Consumer Protection Week should provide a benchmark as we set goals today that can be measured next year. Goals that can determine where and how timeshare business practices have improved.

As Irene said, do your homework, anything to do with timeshare is a minefield, from first purchase, to resale companies and then to all the so-called legal and claims companies that are now proliferating, especially in Europe following the rulings made by the Spanish Supreme Court.

There are so many companies jumping on that particular band wagon, some are very sophisticated operations, such as Litigious Abogados (see link for the last article, or search Litigious Abogados in the search box for all articles).

http://insidetimeshare.com/litigious-abogados-plot-gets-thicker/

Another facebook group has also got off to a flying start (see link below), it is a closed group but welcomes new members. It is a forum for dialogue and debate, taking a different approach to many of these groups that use social media, by encouraging opposing views. They have even welcomed a Diamond sales agent, who has even agreed with some of the owners views on sales practices. This is what is needed if timeshare is to change.

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

So there we have it, thank you to Irene and all the contributors in the US, also to the readers who have supplied information on some of the companies we have researched. It is your information that is helping others to negotiate this murky world of timeshare. Have a good weekend.

friday-again

abc

The Secret World of Timeshare Sales.

Following on from the many articles on timeshare in the US, Inside Timeshare today publishes the story of a former sales agent with Hyatt and Diamond Resorts. Her story is one that will resonate very clearly with many people who attended timeshare sales presentations, not just in the US but also in Europe, although in Europe it must be said, most of the industry especially Diamond have cleaned up their act. Much of this is down to the adverse publicity in the press and the ongoing litigation in the Spanish courts.

The many sales reps that I personally know and have known through the years are decent and honest people, the problem came in the way the industry was run during the 1980’s, 1990’s and early 2000. It was and still is with some companies, on a commission basis only, you don’t sell, you don’t eat. For many they were also tied into company apartments, so if they did not reach their targets and were fired, they also ended up homeless.

For those who did get a “basic wage”, it was usually twinned with “On Target Earnings”. Again if targets were not met your basic was reduced or not paid. Another factor which is well known in the European model was the so-called “drip feeding”, this was a method by which companies held on to staff who did deal. Basically, the company would tell the rep that the client had not completed, then that pay would be held back, this forced the rep to stay, knowing that if they left they would never get paid.

It was also not uncommon for some unscrupulous companies to claim that the client had cancelled, when in fact they had completed. For some this meant a “claw back” of the pay they had received from the commission and the “spiff” they received for dealing, (the spiff is an incentive payment, paid in cash at the morning meeting the following day).

So it is not difficult to see how normal decent folk would say anything to close the deal. That being said, yes there were and are some who are just out and out “blaggers”, having no sense of conscience or morals. Many companies loved these type of reps, as they would do whatever the managers tell them.

So now to the story of Candace, where she explains her time and experiences as a timeshare sales agent.

Former Timeshare Sales Agents Strike a Blow against Timeshare

By Candace Czarny – February 9, 2017

ethics

Several current and former timeshare sales agents, management and employees have joined forces with timeshare owners to take a stand against timeshare companies, including Hyatt Corp, Westgate, Wyndham, The Manhattan Club, Marriott, Highland Resorts, Sedona Pines and Diamond Resorts.

It’s a modern day David & Goliath story. Timeshare companies employ armies of attorneys in their effort to suppress the seedy side of timeshare. While many owners use and enjoy their timeshare year after year, others fall into deceptive and fraudulent sales presentations ending up with a vacation dream that sometimes turns into a nightmare. Others have called it a timeshare trap.

Now we are beginning to see a powerhouse of attorneys and regulatory agencies on the side of the timeshare consumer in an effort to expose selling strategies that incorporate psychological manipulation, omissions, deceptions, and fraud.

I am a former Hyatt and Diamond Resorts sales agent. While at Hyatt I was advised by management to order a copy of the CIA Guide to Interrogation and Human Manipulation. Some timeshare companies employ these strategies, designed to intimidate and confuse hardworking consumers worldwide, in order to generate profits and earn wildly inflated executive compensation. Honest sales agents, previously able to earn a good living with reputable timeshare companies, find themselves subtly maneuvered out of this new more sinister timeshare business.

Don’t get me wrong, I went to work in the timeshare industry because my family owned one and used it every year.  Our family created unforgettable memories every year using this property.

It was only after working in the industry as a sales agent that I came to see and understand the complicated strategy of greed from the inside.  Like Trish Williams, awarded $20 million in a recent Wyndham Whistleblower case, I am one of the single individuals not willing to be a pawn perpetuating a scam against hard working people trying to create a happy life for their families. Three former Hyatt sales agents are year five into our Whistleblower case.

At some resorts, dramatically rising maintenance fees turn a family’s vacation into a money pit with no way out. Voluntary surrenders are not guaranteed, so owners not able to keep up with annual fees and assessments fall victim to listing and transfer agents. Many owners with loans, not eligible for a “voluntary surrender” are forced into default or must obtain legal help in order to have their timeshare loan cancelled. This just adds to their existing financial burden.

This complex and convoluted strategy for wealth and power is like a hamster wheel. The timeshare company generates profits from selling the same timeshare over and over and over again. To arrive at a solution one must arrive at the cause and in the case of timeshare, the cause begins with corporate greed at the expense of the individual employee and the consumer.

Timeshare companies hide behind carefully and strategically worded contracts intended to shield them from responsibility and litigation. This leaves the owner feeling hopeless and angry with no recourse. Timeshare companies rely on the burdened owner not being able to withstand a costly and lengthy legal battle.

A new age is dawning where individual owners, in partnership with regulatory agencies and lawyers, are banding together to fight back against timeshare corruption.

huddle

The Arizona Attorney General has put a stake in the ground and alleged that Diamond employee’s’ actions and statements violated the Arizona Consumer Fraud Act.

Diamond Resorts Corporation has settled with the Arizona Attorney General for $800,000 in a case involving allegations of customer deception and was issued an “Assurance of Discontinuance” (linked below).  This is just one of an avalanche of lawsuits and investigations exposing a minefield of corruption, fraud and deceit perpetuated at the highest levels of corporate timeshare.

While New York, Colorado, Tennessee and Arizona Attorneys General are making some progress, more needs to be done. There has been a notable lack of concern from many state and federal regulatory agencies. Lawmakers have demonstrated a “Well, they signed a contract” attitude. Such lawmakers have no concept of the depth of deception some timeshare companies go to in order to “close the deal”.

Based on ARDA’s estimates there are over 9,500,000 timeshare units in the United States.  To give you an idea of how profound this corporate culture of greed is and how the courage and bravery of single individuals are making a difference in the name of what is right, listed below are just some of the settlements, judgements and lawsuits against these timeshare giants.

  • Hyatt Corp is sued by three former Hyatt timeshare agents alleging deceit and fraud. They are in year five of a Whistleblower case alleging deceptive practice.
  • Tennessee Attorney General announced a $3 million settlement with Festiva, a network of vacation and timeshare companies, for alleged violations of the federal Telemarketing Act, federal Telemarketing Sales Rule, and the Tennessee Consumer Protection Act.
  • Westgate is facing lawsuits in several jurisdictions and a Consumer Financial Protection Bureau Investigation. Allegations include fraudulent and deceptive business practices ranging from high pressure sales tactics, failure to honor timely rescission requests, elder abuse, illegal debt collection practices and impermissible telephone solicitations.” The Capitol Forum June 27, 2016
  • Colorado Attorney General  is suing Highlands Resort, Sedona Pines and twelve other defendants for deceptive trade practices.
  • Former Wyndham sales agent Trish Williams was awarded $20 million for exposing deceptive sales practices in a Whistleblower case.
  • The NY Attorney General investigation into the Manhattan Club is proceeding. The motion to dismiss a currently pending class action suit has been adjourned to March 31, 2017 because the sponsor appears to have engaged new counsel, Gibson Dunn – the third set of sponsor attorneys in this matter. This motion is for request to release monies previously frozen by court order to pay the sponsor’s attorney’s fees.
  • The Marriott racketeering lawsuit as of February 7, 2017 is still waiting for a decision on motions to dismiss and is engaged in discovery, according to attorney Jeffrey Norton.
  • In Spain there are approximately 800 live cases in various courts and over 2000 clients. The total claim value is around 80 million Euros, These cases are being brought by Canarian Legal Alliance.
  • A billion dollar lawsuit has been filed against Diamond Resorts International.
  • Arizona Attorney General´s $800,000 settlement with Diamond Resorts International.  Arizona Attorney General Mark Brnovich is working on the front end to stop outrageous oral representations.

If you feel you are a victim of deceitful timeshare sales or are an employee whose livelihood has been threatened by refusing to participate in deceptive and fraudulent tactics, I encourage you to tell your story. Alone we perish under the weight of power and greed. Together we can overcome and thrive.

Diamond timeshare owners worldwide, who purchased a timeshare in Arizona since 2009, have until the end of April 2017 to file a claim of relief with the Arizona Attorney General’s office.

Instructions on how to file a complaint are included in this press release:

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

Thank you Candace for writing this article, Inside Timeshare welcomes articles from anyone with a similar story, or even from those who have been on the receiving end of the sales presentation. It through these article we might just see a change in the industry that will benefit not just the consumer but the industry as well.

For information about pending litigation or questions on how to file a complaint, contact Inside Timeshare either through email, by posting a comment, or finding us on Facebook. Please state if it is a US or European timeshare. We’re here to help.

https://www.facebook.com/insidetimeshare/

3 men

 

chickensoup

Chicken Soup for Timeshare´s Soul!

Chicken soup is used as a remedy whenever anyone is ill, I remember as a kid if I was under the weather mum or gran would ensure I had a bowl of hot chicken soup. Whether it did any medical good is not clear, but it did make me feel better.

The chicken soup for timeshare is a cacophony of abbreviated names, which many of us cannot work out what they stand for. I will not go for the ones on mainland Europe, for one simple reason, I don’t speak the myriad of languages we have. So here are the ones we have in the UK if you have a timeshare or consumer problem.

Firstly the timeshare ones: we have the RDO, Resorts Development Organisation, this is the trade body for the industry and represents only the industry not the consumer.

TATOC, The Association of Timeshare Owners Committees, this is supposed to represent you the owners, but as we know they are funded by the industry for the industry. Also they are in deep trouble as we saw in yesterday’s article.

Non timeshare organisations:

BIS, Business Innovation and Skills, this is a government department, in the past they are the ones who closed down several “dodgy” holiday clubs.

They also work very closely with TS, this is Trading Standards. Each county council has their own trading standards office, again they have been instrumental in closing down rogue companies.

CAB, this is the Citizens Advice Bureaux, this is an agency run mainly by volunteers who offer advice and information on a variety of subjects. Unfortunately when it comes to timeshare they will refer you to TATOC.

FCA, the Financial Conduct Authority, they deal with anything within the finance world, it is they who lay down the regulations for how businesses such as debt collecting agencies operate.

FOS, The Financial Ombudsman Service,this is a government body who is the last resort in any dispute on financial matters. For instance problems with loan agreement, credit card refunds, including complaints against debt collecting agencies.

There are plenty more but my soup pot is only small, so I cannot fit anymore in, Irene in the her article today explains the numerous ones in the US, this will be of specific interest to those in Europe who have bought in the US. You also have the right to lodge complaints there, even if you live in Europe.

 

A Survey of Administrative Remedies for the Timeshare Owner

Original by Attorney Mike Finn, Finn Law Group

http://www.finnlawgroup.com/learning-center/surveying-administrative-remedies-for-timeshare-consumers-seeking-relief

Peasant Version: An Alphabet Soup of Regulators

Who are they? How can AGs, CFPB, FTC, or the BBB Help Us?

By Irene Parker – February 6, 2017

Board meet

Many timeshare owners have little or no understanding as to how to go about fostering change when business practices have degenerated to the point such practices become harmful to consumers. This article takes some of the mystery out of governmental and nongovernmental agencies offering a blueprint for consumers to follow.

Given recent actions taken by such agencies, and in light of today’s timeshare climate, we look at what’s happening and examine where we can go from here.

The Manhattan ClubNY Attorney General Eric Schneiderman halts sales.

https://ag.ny.gov/press-release/ag-schneiderman-announces-court-order-barring-sales-manhattan-club-timeshare-hotel

Arizona Attorney General $800000 Diamond Resort Settlement and AOD

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

Colorado Attorney General Cynthia CoffmanHighland Resorts and Sedona Pines

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

Tennessee Attorney General Herbert Slatery IIIFestiva $3 million settlement

https://www.tn.gov/attorneygeneral/news/38312

Diamond Resorts Billion dollar lawsuitAlbright Stoddard Warnick & Albright

http://insidetimeshare.com/1billion-law-suit-diamond-resorts-international/

Consumer Financial Protection Bureau Westgate investigation

https://www.buzzfeed.com/matthewzeitlin/financial-regulators-are-looking-into-americas-largest-times?utm_term=.bqeQAdL7#.whk6BDr5

$20 Million Wyndham Whistleblower award to Trish Williams

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

Three former Hyatt sales agents: Whistleblower lawsuit.

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

Clearly, timeshare needs to change, so I reached out to timeshare attorney Mike Finn of the Finn Law Group in an effort to understand how regulatory agencies work. Mr. Finn describes his writing style as “lawyerly”.  In order for me to understand an article found on the Finn Law Group “Learning Center”, I have to rewrite it. This serves as some source of consternation to Mr. Finn, but he on occasion graciously allows me to redact one of his papers so that my fellow peasants can understand the topic.

First: The Federal Trade Commission FTC

The Federal Trade Commission was created in 1914 to prevent unfair and deceptive acts or practices. The FTC does not resolve individual complaints, but provides information about the next steps a consumer may take to resolve an issue.

The FTC looks at fact patterns in an industry. Several (the key word is always several) complaints may indicate a pattern of fraud and abuse which may lead the FTC to investigate and eliminate those unfair practices.

We begin with the FTC, because many states have enacted a portion of this federal act into state law.

profit loss

The Timeshare Cycle

If a consumer encounters a rogue sales agent in the timeshare industry, the experience can be described as a vicious cycle or circle that begins with the oral representation clause used and abused by unscrupulous timeshare sales agents. Consumer complaints beginning with “the salesman said” are sadly told the timeshare developer is protected by the oral representation clause.

In some cases, as in the case of Ralph Marble, maintenance fees escalate so fast the timeshare owner can no longer afford the fee. Mr. Marble was never able to use his vacation plan because of being diagnosed with a medical condition shortly after purchase. His maintenance fees increased from $200 to $684 over eight years.

http://www.clickorlando.com/news/investigators/timeshare-woes-for-one-man-who-tried-to-cancel-after-an-illness

Voluntary Surrenders are on a case by case basis. If a timeshare owner is denied a voluntary surrender, they are often driven into the nets of timeshare “listing” or transfer agents. Some transfer agents are bogus which means the owner thinks they have unloaded their timeshare but have not. If the transfer agent is “legitimate”, the surrendered contracts are bundled 50 to 100 contracts and sold back to the timeshare developer, who in turn resells for full price. Thus the circle is complete.

After a four to seven hour timeshare sales presentation, the beleaguered buyer is poorly equipped to read the mile high stack of documents they are about to sign.

man list

The Consumer Financial Protection Bureau

The CFPB is one of the newest government agencies created in July 2010 partly in response to the mortgage crisis in the late 2000s. The goal of the CFPB is to watch out for American consumers in the market for consumer financial products and services. The timeshare industry utilizes various financing tools in its sales practices and presentations.

The CFPB told me consumers should choose the mortgage option when filing a timeshare complaint, even if there is no mortgage. Timeshare is somewhat new to the CFPB. If the owner does not want to file a formal complaint, there is an option to “Tell Your Story”. I tell the CFPB stories almost every week.

The CFPB does publish the subject and data of the complaint, feeding its Consumer Complaint Database. Most importantly, the CFPB will report to Congress with the purpose of enforcing federal consumer financial laws and writing better rules and regulations.

As more credit card transactions involving timeshare purchases are generated, the credit card financing aspect should not be overlooked for consumers seeking a monetary resolution to their timeshare purchase issues, assuming a credit card was utilized. Diamond Resorts offers a six month 0% interest rate “Barclaycard” offer if the credit card is used to purchase a timeshare. More and more timeshare developers are acting as new credit card originators for third party financial provides such as Bill Me Later (a division of PayPal) Barclay Bank, Bank of America, and a couple of credit unions.

Unlike other regulatory agencies, companies must reply to the CFPB’s complaints or inquiries. Consumers should file their complaints with the CFPB, but expect only a modest resolution and an opportunity to be heard. However, the more complaints the CFPB receives regarding a company, practice, or industry – the more likely those complaints will be presented to Congress. Congress has the power to create new rules and regulations that can improve the market for consumers when Congress reviews and enacts new laws.

Attorneys General or State’s Attorney

An Attorney General (AG) is a publicly elected position. Every state in the US has one. The AG is charged as the chief legal officer for their respective state. The AG’s Office proclaims to protect “timeshare owners by investigating business practices” relating to the sale and resale of timeshare interests.

The AG’s Consumer Protection Division has the civil enforcement authority to investigate and prosecute violations of the state’s Deceptive and Unfair Trade Practices Act. The Division is additionally responsible for the enforcement of the civil provisions of the Racketeer Influenced and Corrupt Organization Act,(“RICO”), which punishes businesses and “enterprises” conducting patterns of illegal activities within a state.

Notably, the AG by law cannot represent private citizens in legal disputes. When a complaint is filed by a consumer, and the AG investigates the alleged misconduct, the AG does not represent the consumer on an individualized basis, but rather the interest of consumers in their state as a whole.

As in the case of the $800000 settlement the Arizona AG reached with Diamond Resorts, if the Division investigates and is successful in prosecuting or settling the action, there is a potential for recovery.

Florida Department of Business Professional Regulation (“DBPR”) state regulatory agency – Division of Florida Condominiums, Timeshares, and Mobile Homes (“Timeshares Division”)

Florida is a timeshare mecca center. The DBPR is an extension of the executive branch of the Governor, and is charged with licensing and regulating all businesses and professionals within the state. The DBPR subdivision relating to timeshares is known as the Division of Florida Condominiums, Timeshares and Mobile Homes (“Timeshares Division”). The Florida Timeshares Division licenses and regulates timeshares through education, complaint resolution, mediation and arbitration, and developer disclosure.

The Office of the General Counsel (“OGC”) of this division represents the interests of Florida residents and does not represent individual complainants. In most cases the Department, even with successful prosecution, does not typically recover money that a consumer has lost. Many consumers rightfully wonder what the likelihood of success would be if they take the time to file a complaint.

Statistically speaking, from April, 2014 through April, 2016, the Florida Timeshares Division received 2,360 complaints. Of those complaints, only 110 resulted in action by the Florida Timeshare Division – less than 5%!

The Better Business Bureau BBB

The Better Business Bureau is not a regulatory agency. It is a nongovernmental nonprofit that serves to promote a community of business that consumers can trust. The BBB does not solve consumer disputes. Success is not based on the outcome, but whether the business responded or not.

The BBB rating rates only how cooperative and responsive a business will be to consumer issues.

National Timeshare Owners Association

https://www.ntoassoc.com/

The National Timeshare Owners Association is a social purpose organization dedicated to educating, advocating and protecting ownership interests. For nearly 20 years, the NTOA has worked to ensure owners have access to resources available to them. As the oldest and largest member based association, NTOA works closely with other industry associations and stakeholders such as CRDA, TBMA, TATOC, CARE and FTOG. NTOA’s extended relationships include 12 domestic and international developers, HOA‘s and management companies. The NTOA seeks to find solutions to some of the industry’s most complex issues.

Summary and Conclusion

What avenues, if any, exist for the unwary consumer who gets pressured into purchasing a $25,000 to $100,000 or more timeshare interest with credit at a 14% to 19% annual interest rate accompanied by a lifetime and beyond maintenance fee obligation? A thriving resale scam industry exists due to the limited and sometimes nonexistent secondary market.  

It’s not until long after the contract is signed, or if the family experiences a life crisis, they learn that the purchase contract often contains no way out. In all likelihood, the perpetual contract was signed in a same day sale, after a sales presentation that lasted for hours. The elderly are targeted, according to several lawsuit allegations.

success

Given recent regulatory decisions and legal actions, a highway of hope is under construction.  

GET INVOLVED!

To perhaps state the obvious, the timeshare industry is a well-organized and wealthy industry that has the ability to lobby for favorable laws and treatment.  Contrast this with the average consumer who is economically stretching to afford a $25,000 timeshare interest.

Contact Inside Timeshare if you would like to learn more about organized efforts to reform an industry badly in need of reform. Thank you to timeshare companies working towards a safer and owner friendly timeshare industry.

We would like to thank all contributors to this article especially Mike Finn of the Finn Law Group.

Inside Timeshare is here to bring you the latest news on what is happening in the world of timeshare, at present we are very much focused on Europe and the US. We are however working on collaborating with writers in Australia, this will bring you the news on a worldwide scale. We would also like to hear from any owners in Australia, New Zealand and South Africa. You can contact Inside Timeshare through our comments section or email direct to admin@insidetimeshare.com

We look forward to hearing from you.

Globe flags

tug o war

The Battle Lines have been Drawn.

There appears to be a massive falling out in the timeshare industry, TATOC, the self proclaimed voice of the owners is under fire. Harry Taylor looks to being discredited, not just over the Lakeview debacle but also for his unbridled support of the move by MacDonald Resorts to force fixed week owners to change to the points system.

This being said, MacDonald Resorts have not been members of the RDO since the end of 2005, yet TATOC still supports them. One has to ask why are MacDonald’s no longer members of the industry trade body?

Silverpoint has (reported by TESS 2 February) reduced their membership from Platinum to Silver, so are the industry backers realising this organisation is failing?

Among owners themselves, TATOC has been losing credibility, many comments from readers who have approached them for advice have not been impressed. The number of comments on the different discussion forums also confirms this. Is it not time that a new and more credible independent voice be created, the only way change in the industry is possible is through dialogue with those that keep them in business.

round-table

The industry is in turmoil, the Arizona Attorney General has secured an $800,000 settlement from Diamond Resorts International, with a $1billion suit being filed in Nevada, Wyndham have lost a lawsuit for $20million, brought by an ex-employee.

In Colorado, the Attorney General has sued Highland Resorts for deceptive trade practices and the New York Attorney General has halted sales at the Manhattan Club, with a class action lawsuit underway. Hyatt is also in legal dispute with former sales agents, this has been going on for several years.

It is not only in the US that we are seeing problems, in the past week we have seen SIX, yes SIX Supreme Court rulings against Silverpoint / Resort Properties. In these rulings the product “Club Paradiso” has been declared as falling under the Spanish Timeshare Laws, with purchasers being considered as “consumers” and not “investors”. These judgements have again made legal history.

The length of the contracts have also been confirmed in these rulings as illegal, being for a period of more than 50 years. The courts have also returned double the amount paid on the deposits, these were taken within the stipulated 14 day cooling off period or reflection period, in some cases this has been extended to 90 days where the relevant information has not been supplied. Under this ruling if the balance was paid in this period then the total amount has been awarded double.

Silverpoint seem to have taken over the news from another beleaguered company, Anfi in Gran Canaria. We have seen around 29 Supreme Court ruling made against them since the first in March 2015, which also made legal history.

legal history

It is not only for the sales of the timeshare product that Anfi are suffering, there is also the ongoing problem with the Tauro Beach project that Inside Timeshare has been highlighting. There is at present a case in the court to remove the concession and permissions for Anfi to run the beach for the next 50 years, this is being brought by the Government of Gran Canaria. We are also waiting for the trial of the former head of the Coastal Authority, he has been charged with wrongdoing in public office and forgery of official documents.

The beach itself has been badly damaged by high tides and rough conditions, with major parts being washed away. Also remember that in August 2016, the local residents and their homes were flooded. The residents themselves ended up building defences to stop it happening again.

The sand itself which was imported from Western Sahara, which under UN rules should not have taken place, as this area is deemed under occupation by Morocco and is subject to sanctions. This sand around 70,000tonnes was laid on the beach without first being treated, so this could also have an environmental impact on the area.

So, there is a lot going on in the world of timeshare, we are only reporting the tip of the proverbial iceberg. There is more to come and Inside Timeshare will bring it to you as it comes in.

You can find the articles relating these stories by using the search box, if you have any comments, Inside Timeshare would like to hear and share them with others, it is only through your contributions that the truth will get out.

Here to help

 

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

end-year

2016 End of Year Review

So here we are at the end of another year and what a year it has been, it started with the relaunch of Inside Timeshare, bringing you truthful information and news you would otherwise not get.

One of our first articles explained what fly buys are, the fact you would get a cheap holiday but be subject to attending a presentation. At this you would be pitched a holiday product of some sort, be it a holiday club or timeshare. The article also warned of the pitfalls of not attending the presentation, either being charged the full accommodation price and in many cases being removed from the resort.

We also highlighted many “scams” that timeshare owners have been subjected to over the years including many new ones. The latest being the article on Litigious Abogados (see links). We also showed how some of the so-called resale companies operate, giving you the reader the information to make an informed choice.

http://insidetimeshare.com/1059-2/

http://insidetimeshare.com/litigious-abogados-update/

http://insidetimeshare.com/litigious-abogados-latest-information/

CLA Logo

Another theme Inside Timeshare published was the on-going woes of Anfi, the first article titled: “The Great ANFI Battle of the Partners”, explained the story of the two partners in the Anfi empire, the Lyngs and the Cazorlas. We then published the story of legal history being made with the very first Supreme Court ruling, this was the case of the Norwegian lady, Mrs Tove Grimsbo and her battle with Anfi. The case was brought on her behalf by Canarian Legal Alliance.

Since that auspicious occasion, Canarian Legal Alliance has gone from strength to strength, securing 36 rulings from the Highest Court in Spain, 29 of these have been against Anfi. Others have been against TasolanPalm Oasis and Holiday Club Puerto Calma, with the ruling against Puerto Calma confirming the Fractional did indeed come under Timeshare Laws. This resulted in around 243,000 Euros being returned to a British client.

There have also been 24 High Court and 21 Local Court rulings against various timeshare companies including Resort Properties / Silverpoint and Club La Costa. Some of these Courts have been in Maspalomas, Arona, Barcelona and Fuengirola. There are approximately 800 live cases in various courts and over 2000 clients. The total claim value is around 80 million Euro, with 117.208.00 Euros reclaimed per month, there are on average 2 to 3 cases per week being heard.

(These figures are what we have on file, there have obviously been more cases, but we have yet to receive an update).

This is certainly an impressive achievement by this law firm, who has in the past suffered from some very negative press instigated by the industry itself. Inside Timeshare congratulates the whole team at Canarian Legal Alliance, including the clients who in some cases have waited years for these results.

Another series of articles have been about MacDonald Resorts and the ongoing battle of Mrs B, now known as Mrs Price. It is a case that has riled us at Inside Timeshare, who are fighting on her behalf. The story revolves around MacDonald Resorts refusal to accept that she no longer owns a timeshare at Dona Lola in Spain, continuing to harass this 87 year old via a debt collecting agency Network Credit Services. This harassment has included threats of court action to recover a debt that is not owed, this case has been referred to the Financial Ombudsman Service. Inside Timeshare will continue to highlight this case until MacDonald Resorts abandon the chase for money. It must also be noted that the RDO, which is the industry trade body has also washed their hands of this company.

In the April article “The Resurrected” a warning was issued about an old company from Fuengirola had come back to life. It is the story of Ramirez and Ramirez, who several years ago were very active in deceiving many timeshare and holiday club members out of thousands for bogus claims. It must be said that very little has been heard of them since.

Mark of excellence

We have also had a few light hearted moments, although they did come with a serious message. In the spoof article “A New Member to EGTBW”, it explained about the trade bodies for the timeshare industry operate. This was extremely fun to write and gave many people a good laugh, the only problem was that it was actually based on fact.

http://insidetimeshare.com/new-member-egtbw/

Back in July we started to publish the ongoing story of the Tauro Beach Project, the fact that irregularities had been uncovered and an investigation had been started by the Guardia Civil Nature Protection Service (SEPRONA). As the story unfolded the Head of The Canarian Coastal Authority had been dismissed and is now awaiting trial for wrong doing in public office and forgery of official documents. Then in August we published the story of the local inhabitants and their homes being flooded, this instigated further investigations which also include the local mayor. The story continues. (search Tauro Beach for further information).

We also teamed up with Irene Parker in the United States, she has provided some valuable information and interesting articles on the world of timeshare across the Great Lake. Below is her latest article.

What Timeshare Owners Can Look forward to:

Timeshare Lawsuits 2017

By Irene Parker,  December 26, 2016

2017

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

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

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

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

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

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

round-table

Westgate

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

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

Colorado Attorney General

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

Another US Attorney General Exposes Deceptive Tactics.

Wyndham $20 Million

Former Wyndham sales agent Trish Williams was awarded $20 million for exposing deceptive sales practices. While the amount will probably be reduced on appeal, it sends a message that courts and juries are listening.  http://www.nytimes.com/2016/11/25/business/my-soul-feels-taller-a-whistle-blowers-20-million-vindication.html?_r=0

Hyatt

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

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

The Manhattan Club

Attorney Douglass Wasser represents 30 Manhattan Club defendants.

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

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

Marriott Racketeering

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

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

Diamond Resorts

A recent class action was filed against Diamond Resorts:

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

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

holidays-are-hereI don’t mean to be the Grinchess that stole Christmas, so to end on a positive note,

People are listening!

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

  • A legitimate secondary market
  • Less aggressive and deceptive selling
  • Less predatory lending

Thank you from timeshare owners to our regulators and lawyers working to protect us. Human leverage and a clearinghouse of information exchange is the answer.

inside final small

So that is the end of 2016, we hope you will join us in 2017 and also help us to get the news out to others. Without your information many of the articles, particularly on possible scam or bogus companies will not be published. So from the Charles and Irene, we wish you a very happy and prosperous New Year.

happy-new-year

colerado-seal-ag

Another US Attorney General Exposes Deceptive Tactics.

Timeshare is not having a good time right now, in Europe and especially Spain the industry is reeling from very costly litigation. This is costing resorts and developers a fortune in returning money for purchases made which have gone against the laws put in place to protect consumers.

In the United States the industry is also under fire, most recently a former sales agent has been awarded $20 million for unfair dismissal by Wyndham. She had been branded a “troublemaker” after she complained about unfair and dubious sales tactics being employed.

We have also seen the NY Attorney General close down the sales operation 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 following article by Irene Parker explains the most recent news coming in from across the Great Lake.

Colorado Attorney General Scores a Goal for Timeshare Reform

By Irene Parker

December 12, 2016

keep-calm

All timeshare owners and buyers want is honesty and a fair price for their timeshare, along with reasonable maintenance fees and a legitimate secondary market. Now a third US Attorney General scores a goal for timeshare reform by exposing deceptive timeshare business practices.


There is something flawed if a product cannot be sold, if it is not sold same day. Even car shoppers are allowed to think about it, and many timeshare purchases cost as much or more than a luxury car. There are first day pricing incentives and consumers are told they cannot buy in the future.


According to Highlands Resorts’ sales manager Steve Abrahamson, named in the lawsuit, “In the eighteen months he worked for Highlands Resorts, not a single consumer returned after their sales presentation to make a purchase. In his fifteen years in the timeshare industry, Abrahamson never saw a consumer purchase a timeshare after leaving a sales presentation.”


http://www.businessden.com/wp-content/uploads/2016/12/5B3AF6808EF5C.pdf


Colorado Attorney General Cynthia H. Coffman has sued Highlands Resorts at Christie Lodge in Avon, Colorado for deceptive trade practices in Denver County Court. The state is also suing sales manager Greg Penrod and twelve other defendants. Several were outbound telemarketers.


Sedona Pines Resort in Arizona was also named in the lawsuit. I spoke to a former Diamond sales agent. Diamond agents cannot disclose any company policies or procedures due to a “CNDA” sales agent agreement they are required to sign. It stands for “confidential non-disclosure agreement” discouraging Whistleblowers. Not all agents are dishonest, so the sales agent who realizes something very wrong and harmful is being done to consumers, wants to tell their story.

In this case, the former sales agent said Diamond Resort owners, desperate to be released from rising maintenance fees, went to presentations at nearby resorts hoping for alternatives. Some Pines brokers would inflate the price of the Pines program to make Diamond owners think they were getting something for their Diamond points or weeks as a trade-in. A dollar amount would be added onto the purchase price as a “trade-in” if the consumer purchased a Sedona Pines program.

The Colorado lawsuit provided an example of fake pricing. “A fake price sheet itemized costs totaling $25,224, which included $6,995 in RCI upgrade points. If the buyer purchased today, Highlands promised to pay the $6,995.  However, Highland did not pay the $6,995. They only paid $179 in RCI dues instead of the $6,995 for RCI points.”


Amy DiPierro is a reporter for BusinessDen. She writes:


According to the state, “Highlands Resorts and its owner, Telluride resident Todd Herrick, “intentionally deceived, misled, and financially injured consumers” using high pressure selling tactics. Highlands Resorts is one of a larger group of timeshare companies controlled by a resort called Sedona Pines in Arizona. On its website, Highlands Resorts says it operates one resort in Durango and two resorts in Arizona.   


The state, which is represented by the office of Colorado Attorney General Cynthia Coffman, is seeking payments of $325,000 from those four defendants and a permanent injunction that would stop them from, among other things, advertising timeshares without displaying fees and conditions. A spokesperson did not respond to a message seeking comment.

http://www.businessden.com/2016/12/07/ag-sues-timeshare-firm-for-deceptive-tactics/


Similar deceptive and misleading sales and marketing tactics are outlined in other lawsuits. Candace Czarny and two other former Hyatt sales agents filed a class action Whistleblower lawsuit against Hyatt timeshare. Candace is seeking Hyatt owners who feel they have been deceived by misleading and deceptive tactics.


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


A jury awarded former Wyndham timeshare sales agent Trish Williams a $20 million Whistleblower award. Wyndham issued a statement saying the tactics used are not representative of their company policy, according to the NY Times.
http://www.nytimes.com/2016/11/25/business/my-soul-feels-taller-a-whistle-blowers-20-million-vindication.html?_r=1


The Tennessee Attorney General Herbert Slatery III recovered $3 million for Festiva timeshare victims.  


https://www.tn.gov/attorneygeneral/news/38312


The Consumer Financial Protection Bureau is in the second year of a Westgate timeshare investigation.

http://www.orlandosentinel.com/business/brinkmann-on-business/os-probe-westgate-resorts-tactics-20160318-story.html

It’s getting harder to believe these practices are not representative of timeshare.

 

whos-next  Who’s Next?

 

 


Part II of this article will examine the fourteen defendants charged with violating the “Do Not Call” list to offer vacation incentives they proclaim are valued at $1,900. The lawsuit claims these certificates cost the developer $40.

I personally received a call from Fort Lauderdale yesterday. When I mentioned I was on the DNC list, he apologized and proceeded with his pitch. This is outbound telemarketing, so there is no way to contact the person or company that called.

We’re up to three Attorney Generals who have sued the timeshare companies. Timeshare developers figure in the cost of owner lawsuits as part of their annual budget. They do not figure in the cost of an Attorney General suing the company.

In the case of Christie Lodge, the resort is open but the sales program is not operational.

get-involved

So the question that must be asked is when will the industry wake up and change how it operates, not just in the USA, but in Europe and the rest of the world?

Inside Timeshare once again thanks Irene for her contribution, without her efforts we would not be able to bring you the news from across the water, bringing consumers together in a cause that affects all timeshare owners. Honesty, integrity and fairness are the elements that are missing in this industry, it must be said that not all are guilty of this, there are some who do work by these principles, but it is those who don´t that give it a bad name and reputation.

If you have any questions or comment about this or any other article published, use the comment section to send us a message. If you have a story or information that you would like to share, Inside Timeshare would like to hear from you.

  weekend

whistle-blower

Whistleblowers Expose Timeshare Sales Tactics.

There seems to be no end to the problems that beset the timeshare industry, the latest is the news of a $20 Million award by a San Francisco jury to a former timeshare sales representative. She brought her case for unfair dismissal, after she complained about the way she was made to sell the product.

We all remember the old days, when reps would say anything to get the sale, the high pressure tactics and in some instances the intimidating placing of “security” at the exit doors. This may sound a little far fetched but it is well documented, fortunately in Europe this practice is in demise.

Most sales teams now operate in a more professional manner, although this does depend on the company involved. We have highlighted in many articles how timeshare has been sold, including the practice of financing consumers who would not have been eligible for a loan, had the normal credit checks been made.

Also it must be remembered that in the past there was no basic pay, everything was commission based, no sale no pay. This particular method will always lead to sales staff using heavy handed, pressure tactics and lies. It was also a very transient business, especially in Europe, where reps would travel from one company to the next, believing that the grass was always greener on the other side.

Now to the main story from Irene Parker.

Wyndham’s $20 Million Woes

Is Hyatt Next?

By Irene Parker December 1, 2016 –

 gavel

November 18, 2016 Dolan Law Firm Press Release

Whistleblower Exposed Financial Fraud of Elderly by Wyndham Vacation Ownership – World’s Largest Timeshare Company.

A San Francisco jury awarded $20 million to Trish Williams, a former Wyndham timeshare sales representative, who was wrongfully terminated for reporting timeshare fraud on the elderly (San Francisco Superior Court Case No. CGC-12-526187). The verdict, read late on Thursday, November 17, 2016, followed a one-month trial in which Williams was represented by Chris Dolan of The Dolan Law Firm and Anne Costin of Costin Law Inc.

Home

 

 

 

 

 

 

 

 

 

“Evidence presented at trial revealed that Wyndham employees engaged in “pitching heat,” high pressure sales tactics involving deliberate lies and misrepresentations to get people to buy more timeshare “points.”

Franz Hanning, head of Wyndham Worldwide Corporation’s timeshare division, has submitted his resignation.

Timeshare sales agents targeting the elderly to sign perpetual contracts, with little or no secondary market, in a same day “impulse” buy are nothing new. There are good timeshare companies and honest timeshare agents, but the overwhelming number of complaints voiced on the internet and on angry owner timeshare Facebook pages and websites are disturbing.

It’s a worldwide problem. The Canarian Legal Alliance in Spain has over 2000 timeshare cases pending. The selling tactics, resale scams, problems with limited availability and rising maintenance fees are pandemic.

Many timeshare victims struggle under the weight of rising maintenance fees. They cannot afford the cost of a legal defense or wait out a lengthy and costly trial. New York Attorney General Eric Schneiderman halted sales at The Manhattan Club in 2014 due to problems with availability. “The investigation is proceeding, and the motion to dismiss a currently pending class action suit has been adjourned to January 5, 2017 for now,” said Douglas Wasser, an attorney representing a number of Manhattan Club owners.

Two former timeshare sales agents talk about their experiences working at Hyatt. Whistle blower is a legal term, but I dislike using this term to describe those who come forward only to benefit others in order to stop harmful business practices. Both the former agents I spoke with would like to see the industry improved. They are in year five of a three whistleblower class action against Hyatt.  Hyatt did not respond to my request for comment.  

Candace Czarny

“I worked in the timeshare sales industry for approximately 2.5 years.  What happened to Trish Williams at Wyndham is very similar to what I experienced at Hyatt.”  

If you are a Hyatt timeshare owner who feels that you have not been dealt with honestly and fairly, Candace would like to hear your story.   

You can contact Candace at:  timesharecomments@gmail.com

Concerns:

Former Hyatt timeshare sales agents have testified that they were instructed by Hyatt to make certain false statements and omit certain facts when communicating to Hyatt owners and potential clientele in order to make more sales.

Specifically, they were told to tell owners that they had previously signed a document (a document that didn’t exist) that waived their right to upgrade.  

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