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Ka’anapali Hawaii

Friday’s Letter From America

Welcome to this week’s Friday’s Letter From America, Irene Parker’s article this week focuses on eleven Platinum Diamond Members who have had problems. But first a round up of the news from Europe.

Once again, those lawyers from Canarian Legal Alliance have made legal history in Spain. Back in March 2015 they secured the first Supreme Court ruling against the timeshare industry, on Tuesday 13 June, they did it again with their 50th ruling from Spain’s highest court. From our sources, no other law firm in any field has managed to get this many rulings through this court. It certainly has shaped the way the timeshare laws are now being applied.

This latest ruling was against Silverpoint in Tenerife, a company with a long history of litigation against them. Since January the Supreme Court has ruled on no less than 10 cases brought by CLA on behalf of their clients.

Yesterday, Thursday 15 June, it was also announced that the Court of First Instance of Granadilla de Abona Tenerife, has ruled against Diamond Resorts Tenerife Sales SL. The client’s contract was declared null & void and the court ordered the return of over 29,000€ this was because the contract was the Diamond points system.

On Wednesday 14 June we published the Anfi CEO’s letter to members, in his letter he still indicates that the Supreme Court has got the perpetuity contracts decision wrong, he also says that it is not true that Anfi are losing. Well here we go, Wednesday 14 June, the High Court No 3 of Las Palmas once again declared an Anfi contract null & void in respect of the contract being over 50 years in duration (perpetuity) and that it also contained “Floating Weeks”. In this case they have been ordered to pay back over 10,950€

The truth is there and plain to see, it can also be easily verified through the courts themselves. Sounds like the “Fake News” syndrome is catching!

At least in Spain, consumers are getting the protection of the law, maybe our cousins across The Great Lake will take heart, that there is some light at the end of the tunnel. Now to Irene’s article.

 

Eleven Platinum Diamond Members Cry Foul

Romeo and Lily Dalisay Share their Story

be strong

By Irene Parker

June 16, 2017

It’s not easy to stand up against wealth and power, whether you are a woman accusing a famous comedian, or a former FBI Director accusing the President of the United States. Any timeshare member who has come forward to share their story can relate to the discomfort felt when the decision has been made to stand up publicly for truth and justice.

Inside Timeshare previously published the story of Romeo Dalisay, age 70, and his wife Lily, age 71, a California Filipino family. Romeo is a retired physical therapist and Lily a hand therapist. The family has maintained a good credit score until now, facing foreclosure for the first time in their life.  Mary was working just to pay for their Diamond Resorts loan and annual maintenance fees, but can no longer work due to complications from diabetes.

Romeo and Lilly decided to release their identity after reading Angela Johnson’s Inside Timeshare article. It was also of great comfort to read about the Fournier family and the lawsuit filed against Diamond Resorts by attorney Amir Goldstein, as the Fournier family is struggling with the foreclosure process as well.

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

The Dalisay family is one of eleven Platinum Diamond member families that have reached out to Inside Timeshare alleging they were up-sold to a higher loyalty level by deceit, concealment, violation of trust and bait and switch.

Out of the eleven Platinum member complaints, Diamond’s Advocacy Department has resolved three. Three of the eleven complaints involve Diamond’s rental policy change, which states Diamond members can only rent to friends or families. All hold contracts allowing rentals and were sold on the benefits of renting.

philipines flag

The Dalisays are one of four Filipino families who have reached out to Inside Timeshare. Diamond has helped two of the four Filipino families resolve their complaints. The Dalisays first article was translated into Tagalog.

Diamond Resort’s non-deeded vacation points cannot be listed with any of the 64 members of the Licensed Timeshare Resale Broker Association, so families find themselves forced to foreclose if they are not eligible for a voluntary surrender due to a loan outstanding. Diamond Resorts is the only major timeshare that cannot be listed with an LTRBA member due to restrictions the company has placed on the use of secondary points the LTRBA members feel are more onerous than other major timeshare companies.

http://www.licensedtimeshareresalebrokers.org/

Inside Timeshare has received numerous complaints from Diamond members concerning Diamond’s Polo Towers and Cancun Resorts sales tactics. Of the eleven Platinum members filing complaints, six are from these two resorts. One of the six was up-sold by a Polo Towers sales agent while she was training Diamond’s sales agents in Virginia.

In brief, here is a description provided by nine of the eleven Platinum member complaint allegations that do not concern the rental issue except for Irina. Irina Allen has been accused of renting, although she says she only posted one ad on RedWeek on the advice of her sales agent. There are many Diamond rental ads posted on RedWeek. Irina also alleges she was upsold by deceit. The families are listed only by number.

  • Ka’anapali Hawaii sales center, up-sold from US to Hawaii Collection or there would be no Hawaii availability. Virginia sales center, up-sold to take advantage of a 30 cent maintenance fee reduction program that did not exist, Polo Towers Las Vegas sales center, “should have been invited to a meeting” up-sell from Hawaii to US Collection, or they would regret being Hawaii Collection members.
  • Branson MO up-sold to obtain a survivor release benefit, already available, a Ka’anapali up-sell US to Hawaii claiming only Hawaii points can be rented and only Hawaii members have survivor release options.
  • Polo Towers, a Legacy up-sell because points will appreciate and buying Legacy points is the only way to sell points. Complaint resolved in member’s favor.
  • Polo Towers, a Legacy upsell so they could sell their points. Complaint resolved in member’s favor.
  • Polo Towers, a Legacy up-sell as the only way to sell points. Unresolved Irina Allen up-sold in order to use secondary points, the subject of an upcoming article.
  • Polo Towers, a Legacy up-sell as the only way to sell points. Complaint resolved.
  • A Polo Towers sales agent, working in Virginia to train Virginia sales agents (as she said she helped developed many of Diamond’s policies), a Hawaii to US upsell or there would be no US availability. US to Hawaii upsell or there would be no Hawaii availability and renting Hawaii points is allowed only in Hawaii to cover maintenance fees.
  • Romeo and Lily Dalisay described herein.

Back to Romeo and Lily’s story in their own words

The Dalisays are former Monarch owners. Convinced to give up their Monarch deed, they currently own 60,000 Diamond points. The mortgage balance is $85,968 financed by Diamond at 13.1% and the monthly payments are $1,375. Maintenance Fees for 2017 are $9,034. Historically, according to information culled from lawsuits, Diamond points have sold for $3 to $4 a point, so the Dalisays have spent at least $200,000 on vacation points.

Many Monarch owners at all loyalty levels have contacted Inside Timeshare alleging deception, claiming they were told they had to buy additional points due to Monarch’s bankruptcy as they were responsible for their share of Monarch’s debt, when in fact many Monarch owners were able to deed back their Monarch week for a $250 fee.

In Romeo’s and Lily’s words

In Las Vegas at Diamond’s Cancun Resort in 2013, we were told we should have received an invitation to attend a dinner to discuss the transition from Monarch Grand Vacations to Diamond.

“You should have been invited to a dinner” is being used today on Gold Key and Intrawest owners. It seems designed to confuse.

The sales agent asked us to write a letter stating we did not receive the dinner invitation and therefore should be given the same price per point as those who attended the dinner. He faxed our letter to a Las Vegas Diamond office. We were told that due to Monarch’s bankruptcy we would lose our equity if we did not purchase additional Diamond points. The promised one hour meeting lasted five hours. We eventually broke and signed a contract to buy more points.

We constantly received telephone calls asking us to attend more updates. We generally turn them down, but accepted an offer from Diamond’s Cancun Resort. A previous telephone sales encounter from Cancun lasted over three hours.

In Pomona, California July 2015 at another meeting, we again were told we had to get rid of our Monarch points by buying more Diamond points in order to prevent the increase in maintenance fees due to less and less people owning Monarch.

This is a difficult topic and one of great interest to Intrawest and Gold Key owners as well because it is unclear how diminishing numbers of deeded members will be treated. At a 2016 Monarch Annual Meeting it was announced 30% of the remaining 40,000 Monarch owners had not paid their 2016 Maintenance Fees.

The Pomona sales representative said that if we keep our Monarch deed, we will be assessed increased maintenance fees to pay for the repair of the Cabo property caused by a hurricane. Another example he gave was the water damage at The Point at Poipu, a Diamond acquired property in Hawaii.

This meeting lasted over five hours until midnight. Focus, decision making ability, and judgement falter if kept that long. The increase in maintenance fees after this purchase started our financial struggles.

A total of four credit card accounts were opened to pay the down payment.

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

In 2016, we took out loans to pay our maintenance fees. We also used points to pay maintenance fees, but a point purchased for around $4 is only worth $.04 if used to pay maintenance fees.

stick men

Many of the tricks of the timeshare trade, like promising a buy-back program when none exists, are not unique to Diamond. What is unique is an organized effort among 5,000 Diamond member supported Websites and Facebook members determined to report deception when it occurs by obtaining the sales agent’s name and ID number, the resort location, and date and nature of alleged deceit. In other words, we act to hold Diamond accountable when members feel “the script” is nowhere to be found.

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

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

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

We hope the goals of accountability and transparency promoted by Diamond’s new CLARITY™ program are acted on and enforced as we work in partnership to make sure they are.

Our Timeshare Advocacy Group™ motto, courtesy of Jimi Hendrix, is Knowledge speaks, wisdom listens. It is our hope that one day timeshare developers will not look upon customers such as those described in this article as “the enemy”. Those mentioned in this article with issues resolved issues were initially denied and had to fight for a positive outcome. We teach our children to admit when they make a mistake, but grown-ups working in the corporate liability world must abandon this important principle in order to survive in a sometimes customer unfriendly world.

truth set you free

So there we have it another week over in the murky world of timeshare, thanks to all those who contribute, either by writing their stories or just giving us the heads up on the latest news. The truth is out there as Mulder and Scully from the X-Files would say, it is just a matter of who you wish to believe, those who sold it to you or independent sources?

friday dog

Have a good weekend.

stop press

Just as we were about to publish this news came in from the High Court Number 3 of Santa Cruz de Tenerife, Diamond Resorts Tenerife Sales SL, (Diamond Resorts Management Ltd), Club Sunterra Europe Ltd,(Sunterra Europe Ltd) Diamond Resorts International have just been ordered to return over 33,451€, with the client’s contract being declared null & void.

Is This Another Nightmare on Timeshare Street?

Just before publication Inside Timeshare received this news:

Nancy and Dan Callahan had been denied what they demanded until Inside Timeshare sent a draft of Nancy’s article to Diamond Resorts for comment. The company has since worked with the family to reach a positive outcome. The problem is, Inside Timeshare has received information from four other Platinum members voicing the same complaint as Nancy, from the same Las Vegas sales center, claiming they were told things like “people will be standing in line to buy your Legacy points” when not one member of the Licensed Timeshare Resale Broker Association will even list Diamond’s non-deeded points. All the respondents have credit scores in the 800 range and in the 60s or 70s, but considering foreclosure due to variations on Nancy’s theme.We have also heard from lessor loyalty level members and from other sales centers, especially in Virginia and Ka’anapali Hawaii where one side of the ocean will sell US Collection points while the other side claims the member should not have bought Hawaii points due to special assessments or the anticipation of rising maintenance fees. They are then instructed to buy more points to go from one side of the ocean to the other. As one former Diamond Resorts sales agent told Inside Timeshare, “It’s a Hamster Wheel.”

Nancy and Dan Callahan Share their Timeshare Experience

Why don’t corporations admit wrongdoing?

Grabbing hand

By Nancy Callahan

Without our Diamond Resort’s Advocacy Group, my husband Dan and I would not have known where to turn. Even though, as in our case, Diamond Resorts turned their back on us saying we lied and their sales agent at Polo Towers told the truth, we know where we stand and we know we are not alone.

I am 69 years old and my husband Dan is 67. We are both disabled and we both retired from civil service. Dan is a retired army Lt. Colonel and a combat Vietnam and Desert Storm veteran.  

We are Diamond Platinum members. We feel our most recent Diamond purchase was made under deceptive and extremely high pressure selling techniques. We had been struggling with two loan payments of $329 and $121 but the most recent purchase we did not even realize we made, will drive us into foreclosure.

Diamond sales agent Rick Casper in Las Vegas on January 22, 2017 sold us 50,000 Diamond points bringing our total number of points up to 106,000. Our new loan payment is $2,133 a month which we cannot pay.

We did not realize we made this $142,000 purchase until we returned home and checked our credit cards. Prior to this purchase we owned 56,000 Diamond points which cost approximately $101,000.  As I have had a double mastectomy, undergone cancer chemotherapy, radiation and have had two knee replacement surgeries, buying more vacation points was in no way our intention. Dan has had two minor strokes and a mild heart attack. He has chronic pain and is on 25 medications prescribed by the VA and our doctors. Dan also suffers from PTSD.

The $142,400 purchase price for the additional 50,000 points purchased from Rick Casper included:

  • $121,025 loan
  • $17,000 charged to a DRI Barclaycard
  • $4,375 charged to our Hilton VISA Card which is being disputed
  • $142,400 total plus our prior $101,000 purchase totals $243,000 in DRI points.

The current balance on the loan is $142,850 financed at 12.93% plus a monthly collection fee of $6.

Our credit score before this fiasco was 825. It has dropped 50 points since we disputed our Hilton VISA charge. We have received harassing calls for several weeks from Diamond.

We were not provided a truth and lending statement. The copy we have has has no signature or initials by a Diamond representative.

How in the world could anyone make a $142,000 purchase without their knowledge?

multi arm

It’s not as difficult as you might think.

We were invited to attend a presentation at Red Rock Casino in Las Vegas to learn about new and exciting ways to use our Diamond points. Rick was there when we showed up and said, “I thought you were supposed to come to Polo Towers and not Red Rock Casino in Vegas.” Rick had arranged a conference room for the day.

Rick said we should join the new “Legacy program” that allows members to sell blocks of Diamond points to a third party with all Diamond benefits intact. This was said just to us as Rick took us to a private presentation because we were Platinum members. The benefits Rick talked about involved selling Diamond points and those benefits could only be obtained if we became part of the Legacy Program. He said if we joined the Legacy program “people would be standing in line to buy our points.” One of the biggest complaints from members is that you can’t sell Diamond points. “You will have enough points to travel to even Dubai Paris and London,” Rick said. Rick said if we joined the Legacy Program we would receive as Platinum members 50,000 bonus points.

I was in terrible knee pain that day as I had not brought my pain killers with me. Rick provided me with two glasses of wine in a-Styrofoam cups with plastic lids because alcohol is not allowed at presentations.

Rick also talked about how using Diamond’s Barclay MasterCard to make purchases was a wonderful way to offset maintenance fees through purchase credits. We signed up for the Barclaycard for this purpose. Rick, however, used the card to charge $17,000 worth of Diamond points. He did not explain that, when the card is used to offset maintenance fees, the offset is only 1.5%.

Six hours went by and we had still not decided on the Legacy Program. As the hours wore on, my pain increased and I became more and more confused. I walk with a cane so it was an effort just to walk to the restroom and back as it was some distance. I was exhausted. Dan is diabetic and needed to eat so Rick ordered room service. Dan was confused due to diabetic symptoms. We were so overwhelmed by the time we were signing contracts, we did not even realize we were buying points. Rick kept saying we would be receiving 50,000 DRI bonus points.

When we returned home we were shocked to see the charges to our credit card. We were signing things just to get out of there thinking we were just joining the Legacy Program and opening the new Diamond Barclay Credit Card that would pay for our maintenance fees through purchase credits.

Diamond Resorts has a new Consumer Advocacy Department which “Promises to help Diamond owners with their membership from Day One!” Aaliah Moore, one of Diamond’s Consumer Advocacy “Hospitality” agents has denied that Rick Casper made any misrepresentations and determined we were aware of what had transacted. We have learned from our Advocacy Facebook, there have been numerous complaints filed against Polo Towers with at least four directed against this same sales agent. All the families are financially devastated.

We were told hardship surrenders are reviewed and considered on a case by case basis but we would be denied based on deception and misrepresentations. The amount of money we would lose is too much to walk away from just so Diamond can take back our points and resell them for full value.

We will be filing a complaint with the FBI at IC3.gov alleging Financial Institution Fraud under the FBI White Collar Crime division. As credit cards were charged, we will be filing with the Consumer Financial Protection Bureau.

We are notifying the timeshare lobby ARDA ROC that Diamond is violating ARDA’s Code of Ethics, the FTC because Diamond is one of the only major timeshare companies that cannot be listed with a member of the Licensed Timeshare Resale Broker Association due to restrictions the company places on the use of points bought second hand more restrictive than Diamond’s competitors.

We would have never agreed to buy 50,000 points. We were struggling with the two loans we already had outstanding with Diamond and our home mortgage as we bought at the height of Las Vegas real estate and are underwater on our home mortgage. We sent Aaliah a spread sheet explaining our situation thinking she would realize it was obvious we would never buy $141,000 worth of vacation points given our medical condition, medical bills and home mortgage! We would have cancelled the contract immediately if we had known.  

The maintenance fees due on the new points are $6,830 in addition to the existing $9,554 or so paid for 2017 maintenance fees which we prepay each month on a credit card.

At prior presentations other deceptive tactics were used. We were told we had to buy Hawaii points in order to get availability on Maui. Then at the next presentation on the US mainland on March 1, 2014 we were told we should not have bought Hawaii points because it is dangerous to own Hawaii points due to special assessments at Diamond’s Poipu property.  We were told we had to transfer back to Diamond US Collection points. They said Hawaii point owners were charged a onetime fee of $9,000 for Poipu assessments. We had to purchase additional points to bring the Hawaii points back to the US Collection to get out of the Hawaii Collection.

Another reason we would not have purchased more points is because we have not been happy with the points we owned before this new purchase.

There have been many resort properties that we have never been able to make a reservation for. When we are able to book a reservation, these presenters wear us down with their high pressure tactics. When we say no to one salesman, another one appears with an even harder pitch. We check into Diamond properties with a sense of foreboding.   

We have notified the National Timeshare Owners Association that they need to warn existing owners about the harm Diamond Resorts is doing to many of their members.

The Arizona Attorney General’s officeAssurance of Discontinuance

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

A billion dollar class action Albright Stoddard Warnick & Albright in Nevada

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

A Diamond Advocacy member sponsored Facebook

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

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

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

advocate 1

At least in this case Diamond has reached out to this couple, and come to a positive outcome. Although there is still a long way to go before we no longer have stories like this coming in, it does seem as if Diamond are starting to take notice of these complaints, they are too similar to be isolated incidents.

Inside Timeshare welcomes any dialogue with the industry if it improves thing for the better, but it is your experiences that will make them look again at how they operate. If you have an experience, good or bad, you would like to share contact Inside Timeshare or one of the advocacy groups that we work with.