Browse Tag

Law 42/98

The Tuesday Slot

Welcome to The Tuesday Slot, this week we welcome another new contributor Wilma Miller with her “Nightmare on Timeshare Street” and her Buyer Beware article. First we have a quick round up of European news.

October is now with us and in the next few months the annual maintenance bills will be arriving, this will also bring in many calls from “companies” offering cancellation of contracts and claims against timeshare resorts. The warning is beware the fantastic offers these will come out with, from the guaranteed cancellation and the promise of no win no fee claims.

As usual it is important to do your due diligence before engaging with any company, that means check and check again. There are many questions you should be asking yourself:

  1. How long has this company been operating, can they actually have done what they state in the time they have been working?
  2. If they are offering “no win no fee” claims, how are they going to claim?
  3. In order to do the claim do they want money upfront to cancel the contract first?
  4. Are they going to sell you another product?
  5. What lawyers are they going to use if taking the case to a Spanish Court?
  6. Can these lawyers be verified as genuine and registered with their relevant bar associations?

If you need help in answering any of these questions, then use our contact page and Inside Timeshare will point you in the right direction.

The Courts of First Instance in Maspalomas began the month with another ruling against Anfi, in his ruling the Judge of Court No 4 declared the contract null and void, this was on the basis that the contract was longer than the stipulated maximum of 50 years as required by Law 42/98. The judge also awarded double the deposit paid within the cooling off period as this is also in breach of the law, in this case the German client has been award over 66,000€ plus legal interest.

Right click on image and select open in new tab to enlarge

Last month ended with a bang for Canarian Legal Alliance with a total of 18 sentences being issued in various courts ranging from First Instance to High Courts, there were also 6 provisional executions of sentences whereby Anfi has been ordered to deposit  over 184,000€ with the court. These provisional executions of sentences will speed up and ensure prompt payouts for the clients.

In all the 12 other sentences were against:

All contracts were declared null and void and the total awarded was over 286,000€

It would also appear that Abogados Lopez another fake law firm has become active again, with calls to existing CLA clients telling them that they have taken over their case from CLA. Beverley Pritchard is another new new name along with Ricardo Sanchez.

http://insidetimeshare.com/news-on-wednesday-more-warnings/

The telephone numbers being used are the same as before:

0034 951 242 867 which is a Malaga code

0034 602 654 670 which is a Spanish mobile

0044 1291 440 500 which is a Chepstow code, although when trying to call this number back a recording states the number does not exist.

If you are an existing client of Canarian Legal Alliance and receive a call from any of the names or numbers above including the original name of Hope Brugge, do not pay them or give them any information, they may sound credible, but are a complete scam.

Now for our Tuesday Slot.

A Buyer Beware Timeshare Experience

Diamond Resorts

By Wilma Miller

October 2, 2018

We first encountered Diamond Resorts while on vacation June 2017. Their people knocked us off our feet with free tickets to a show, and switched us from the Stratosphere to Diamond’s Polo Towers Suites. They even picked us up in a limousine! All we had to do was attend a 90 minute presentation. It’s easy to catch people off guard while on vacation.

Looking back, I believe the presentation room was designed to be noisy and crowded. The 90 minutes turned into hours. I am 78 and my husband James, a Vietnam Army veteran, is 75. As the hours wore on we became more tired and more confused. The presentation began about 11 a.m. and lasted all day.

James has health issues. He was not feeling well after several hours had passed, but the sales agents just kept on. It did not even register when we mentioned his health issues. Sales agents Ninmar N and Diana C were vague on how the program worked. They were vague on the cancellation procedure, and the payment procedure. We felt pressured into signing and we were not allowed enough time to read the documents. They showed us the documents as they explained what was in them, but did not give us a chance to actually hold or read them before we signed. They hurried us through the signing process by placing papers in front of us, telling us what it said, asking us to sign. We later received a copy.

They had said we were eligible for a senior package. We’ve learned there is no such thing called a senior package. We did not know the maintenance fees would be so high. We did not even know we had purchased a timeshare. Jim kept asking if this was a timeshare. They never admitted it was.

We bought 3000 points. They charged $14,000 to two Diamond’s Barclaycard. We were not aware we had opened the cards, much less that the cards had been charged. We repeatedly told the sales agents we were not interested, but they kept insisting we sign the contract.

After the signing process, they placed the Diamond Resorts U.S. Collection Public Offering Statement in our packet. We were not given an opportunity to even see what it was, much less read it. They said no one ever reads it. When we looked at it later it said right on the front – THE PROSPECTIVE PURCHASER SHOULD READ THIS REPORT BEFORE SIGNING ANY PAPERS!

In our opinion, the biggest deception of all was when they told us the payment would be $80 per month with no interest and Diamond Resorts would invoice us for the payment. This is in complete contrast to what has since transpired. Instead of one payment of $80, there are two payments, making it double the price they told us.

We received two Diamond Barclays Bank Credit Cards in the mail. As I mentioned, we were not even aware the cards had been opened. One Barclaycard was in my name and the other in James’ name. Neither agent mentioned credit cards during the presentation. They said we had to fill out an application to see if we would qualify. We never received a copy of the application.

To add insult to injury, the credit cards had no interest charges until now. Now the two payments are too much for us to afford.

After we received the high maintenance fee bill and credit cards, we went back for our orientation August 2017. We told them several times that we wanted to cancel or sell the timeshare. We said we wanted out.  When we told one person, they would get another person to talk to us. They tried to sell us an upgrade even when we said we could not afford what we bought! We talked to several sales people, but they ignored our concerns. It was obvious to us they did not care.  We never saw our original sales agents. Despite being told it was an orientation, we received no training or explanations.

We complained to Diamond Resorts directly. They dismissed our claims out of hand. They expect us to pay for something based on being told:

  • This was a great financial investment that would increase in value,
  • There were tax benefits as owners,
  • We could easily sell it,
  • Diamond had a buy-back program but recommended we never use it because we would lose all our points,
  • We would have a personal representative or coordinator assigned to us. They said this several times.  We never heard from anyone, much less a personal representative or coordinator.

They did not tell us:

  • How much vacation time we would get. We kept asking the sales agents but never received an answer. They bypassed every question.
  • We received 3000 points, but when we asked how we could use them, they gave us a confusing run around.
  • When we asked about maintenance fees and other fees, they avoided answering our questions by changing the subject.

We have sent a letter saying we cannot and will not make payments. We received a lot of collection calls. We sent a letter asking that the calls be stopped. They did stop. We had a high credit score before this. We stopped making payments around March. We received a form saying they would settle for a lower amount. They were talking about the Barclaycard.  

James has been diagnosed with cancer. It’s hard enough growing older without having to go through this. How many seniors will be harmed and harassed before lawmakers and Nevada regulators do something to stop this?  We fear it will never stop, so the best we can do is write about our experience, hoping it will help others.

When I submitted this article to Inside Timeshare, I was told about this member sponsored Diamond Resorts Members’ Facebook page. I wish I knew about this Facebook before we got ourselves into this. It’s been a disaster.

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

This article was written and submitted by Wilma Miller. We invite Diamond Resorts and Barclays to respond. We publish member accounts, good and bad, in an effort to warn the general public to know what they are signing and what they are buying.

That’s it for today, remember to do your homework before engaging with any company that has contacted you or one that you have found on the internet. It must also be pointed out that just because a company advertises in a prestigious publication, the radio or the TV, this does not mean they are genuine, these are sold advertising spaces, the marketing companies that sell them do not check on the authenticity of the company advertising. They will also publish a disclaimer, that they are not responsible for the content or authenticity of the advertiser.

If in doubt, use our contact page and we will be pleased to help you with your checks.

The Tuesday Slot

Welcome to The Tuesday Slot, this week another new contributor Reba Brannon, in her article she explains the hardships created by perpetual timeshare contracts which are affecting many elderly owners.

This is not just a problem in the US, it is also a problem in Europe, what we call perpetuity contracts and the difficulties in getting out is a common theme from those who contact Inside Timeshare. It is also the main reason there are so many companies who promise the earth but never deliver.

Again it is a fraud which has been created by the resorts and developers with their unwillingness to allow people to end their timeshare contracts, all for the sake of continuing to receive maintenance fees. Scam companies, many set up by ex sales agents have been a thorn in the side of timeshare owners for years, they started with resale but have now moved on to cancellations and claims.

Spain, which has been the main center of timeshare scams has finally clamped down on timeshare companies and is also very active in the fight against fraudulent resale, cancellation and claims companies. Many of the latter have now started to register in the UK where they are using the UK registered company pitch to lure in the unsuspecting.

On the point of perpetuity contracts, Spain enacted Law 42/98 in January 1999, in this law it is illegal to sell any timeshare for a period of more than 50 years. All contracts must be a minimum of 3 years and a maximum of 50 years, which means that timeshare contracts can have a duration anywhere in between. So theoretically the length can be dependent on the age of the purchaser, so if a consumer purchases when they are 50 the contract can be tailored to say 25 years, giving them ownership until they are 75. It is now a matter of time before all timeshares in Europe will abolish perpetuity.

Now on with Reda’s article.

Americano Beach Resort

The hardship created by Perpetual Timeshare Contracts

By Reba Brannon, an Americano Owner

September 4, 2018

Senior citizens, who purchased timeshares decades ago, often dealing with health obstacles, must now face aggressive timeshare sales agents demanding more money to get rid of what was originally sold to us as an asset. In our 60s, the last thing we need is to spend more money on a vacation plan when we no longer want the one we owned for over 20 years.

My husband Donald and I are both 63. We purchased our Americano timeshare in 1993. The travel package the management company offered us, to allow us out of the timeshare, sounded confusing and convoluted. After so many of us paid maintenance fees faithfully for so long, we now brace for foreclosure. Our timeshare we used and loved for so many years has become a nightmare for many. One member reported there have been about 150 timeshare weeks deeded back to Americano since June 1.   

The Americano remains closed after hurricanes Matthew and Irma. It is the only Daytona resort still closed. Americano’s management company, ARC, held a Homeowner’s meeting August 20, 2018. Something is very wrong when a timeshare company won’t post the location of their meeting in fear of owners attending. Though ARC noted the date of the meeting months ago, it wasn’t until about five or six days prior that owners were told WHERE it was.  When asked the location, their response was that they would “comply with Florida Statute and notify the owners of the location no less than 48 hours before the meeting.” This may seem minor, but it makes an owner feel that this was done deliberately to discourage attendance. Few attended.

We feel we were deceived into paying 2018 maintenance fees as we were told we would be guaranteed a week at one of their other properties, but after we paid the 2018 fee, they said we could not use our week. Our special assessment was $1,800. Due to the uncertainty, we have not paid it. I think ARC just announced at the August meeting that once maintenance fees for this year are sent out, if you pay them, the payment will go instead toward the special assessment instead of maintenance fees.

Our deeded week was on the ninth and top floor. We loved being on the 9th floor as the view is AWESOME. According to ARC, timeshare owners will not be located above the 6th floor. The top floors are to be reserved for “owned” condos.

If loyal Americano owners, who have faithfully paid their maintenance fees for decades, are short changed at every opportunity, why not just let us go. When we bought the Americano we could get discounted rates for rooms–we had BONUS TIME in addition to our deeded week. The Bonus Time appears to have been taken away.

When we attended update meetings, we found ourselves being pressured into buying (converting) to points, a vacation club package or a second unit. They told us if we didn’t do one of these options then we wouldn’t be able to use our unit. ARC wanted the same price to upgrade as we paid for the unit when we originally bought it in 1993.

After ARC took over in 2016, every year we would deposit our week for the next year before we left the Americano, because when you call to make a reservation no one answered the phone or we were told there was nothing available. However, Americano had rooms available online thru Expedia, and other online booking sites. I always found availability when I went online. Sometimes we just showed up after being told nothing was available only to find when we arrived there were plenty of rooms. Imagine that!! We could book the Americano only because we could find availability online.  

We attended the Board meeting March 2018. There were 300-400 owners in attendance. The meeting was angry and chaotic. There was an armed deputy. Owners against the special assessment attempted to voice their opinions without success. In our opinion, the two board members in attendance didn’t seem to address the questions that were asked.

I can’t speak for all members, but if we knew exactly what is going on—we would consider paying the assessment, but we refuse to pay ARC anything else after losing our 2018 week we paid for. In addition, there is the uncertainty of future assessments, the constant demand to pay more money for confusing and unproven vacation plans, and the prevalent anti-owner sentiment.  

We stopped by the Americano early August and spoke with Brad, the acting General Manager. We asked Brad questions –he couldn’t or wouldn’t answer. Brad acted as if he didn’t know any more than we did. Brad is very much a part of ARC management. He was the backup security guard at the March meeting.

Our questions,

  • When will the Americano open?
  • Who can we talk to about paying the 2018 maintenance fees told we could book a vacation?
  • How bad is the mold?

Many of us are seniors. Why does ARC not just take back these units if they seem to be trying to get rid of us anyway? Just sell points to new buyers. We all bought so long ago, we would be happy to just give it back, rather than finding ourselves ransomed by high pressure sales.

ARC’s latest threat is FORECLOSURE.  After being loyal owners for so long, offer a deed-back over a demoralizing foreclosure. Move on with your new plan.

It’s a sad situation–we were planning on using our unit more often in retirement. We have a lot of money and memories in the Americano. Timeshare today seems one sided. The developer can change any benefit at any time for any reason. With the ease of booking online and Airbnb, I wonder if timeshare could even exist without aggressive sales.

Related article: http://www.americanobeach.com/

Thank you Reba, let us all hope that the timeshare companies in the US take note and reform, if not then the only other option is to legislate on a Federal level and give all consumers the protection they deserve.

Over the next few weeks Inside Timeshare will be on vacation, we will be publishing the Tuesday Slot and Friday’s Letter from America and hope to publish any important information during the week. This will depend on the internet connections available.

 

Friday’s Letter from America

Welcome to this week’s Letter from America, this article is based on a report released by the St Louis Better Business Bureau, it is based on their full report published on the BBB website which we have included as a link. The full report carries some very sound advice along with recommendations for Government and the industry. Whether they take note is another matter.

August is the month for Spain to basically close down, so there is no news from the courts, but this little snippet from the RDO website news section and published on 24 July caught our attention.

“We never sleep”

During this particular break-out session the RDO legal panel will provide attendees with an update on a range of issues, including the latest developments in the Spanish Supreme Court rulings and the on-going lobbying programme.

Other issues that will be covered within the session will be ongoing collaboration with UK authorities to take fraudulent individuals/companies to court and new legislation that is being developed to curb the activities of claims companies. Attendees will also learn how ARDA is dealing with similar issues in the US and whether there are lessons for RDO and its members.

Well one thing is for sure, the RDO obviously believe that the Spanish timeshare laws are not good for the industry, with the judges getting it wrong, along with their belief that they will be able to change things in their favour through the lobbying programme. Well somehow I don’t think the Spanish authorities will be looking to changing their laws to return back to the bad old days!

In the end these court cases that are being brought are of the industries own making, if they had abided by the laws in the first place they would not be paying for it now. A very good case to remember is Silverpoint, whose CEO Mark Cushway was at one time also a director of the RDO, this company is being pilloried by the lower courts in Tenerife and the Supreme Court in Madrid.

Why?

Quite simple, they sold a product that flouted virtually every article of Law 42/98, especially with their promise of the “investment” weeks, where unsuspecting purchasers, many of them on the verge of retirement, were sold under high pressure and very misleading sales pitches a promise that these weeks would be sold or rented out. These never materialised and are the subject of many of these court cases. All this while Mark Cushway was one of the directors of the industry trade body, there to ensure that members operated in a legal and ethical manner.

On the legal front, Canarian Legal Alliance has just published their mid year report, it is certainly impressive and really does put the above statement from the RDO in a different light. Follow the link for the full report direct from the lawyers themselves.

https://canarianlegalalliance.com/canarian-legal-alliance-mid-term-successes/

Now on with our Letter from America.

Timeshare is a Highly Regulated Product?

A St. Louis Better Business Bureau Timeshare Report

Released July 24, 2018

Don’t Fall for Deception Pressure and Traps Disguised as Vacations

August 3, 2018

Inside Timeshare has received complaints against Florida, Nevada, Missouri, Hawaii, California, and Virginia sales centers. Missouri is no worse than the other states. We appreciate the St. Louis, Missouri Better Business Bureau taking timeshare complaints seriously.

From: American Resort Development Association’s Code of Ethics:

According to ARDA’s website – “Vacation Ownership is one of the most highly regulated vacation products in today’s consumer marketplace.”

From the St. Louis Better Business Bureau report:

https://www.bbb.org/en/us/article/news-releases/18149-dont-fall-for-deception-pressure-and-traps-disguised-as-vacations-a-better-business-bureau-study-of-the-missouri-timeshare-vacation-club-industry?bbbid=0734

RECOMMENDATIONS FOR GOVERNMENT

  • Tougher law enforcement action. Regulatory agencies have reported receiving an increasing number of complaints about the timeshare industry. Bringing action against any bad actors in the industry could help consumers and deter companies from violating consumer protection laws.
  • New laws. BBB hears from many senior citizens who have been affected by the timeshare industry. Missouri legislators should consider special protections for those 65 and older who enter into agreements with timeshare and travel club companies. An extended right of rescission period could help seniors who may not totally understand what they have purchased. All consumers should receive pertinent information – such as access to websites and passwords – at point of purchase so that they can check potential savings and actual values of timeshares on resale market so that if they decide to cancel, they can take advantage of the rescission period.

(BBB) RECOMMENDATIONS FOR THE INDUSTRY

  • More honesty from the industry. The timeshare industry needs to develop and adhere to a set of ethical standards to address widespread reports of high-pressure and deceptive sales practices and to deliver accurate, honest sales pitches to consumers. Reputable companies do not pressure consumers over several hours to purchase services they had little interest in buying or, in some instances, can’t even afford. If presentations are held, consumers should not be detained past the scheduled time or express a false sense of urgency to act immediately. Avoid telling consumers something that will entice them to sign but is later contradicted by your contract.
  • Honor promises. Provide tickets or other promotional items at the time of the presentation. Do not mail them later or make the consumer obtain them from another source.  
  • Do not mislead about timeshare inheritance. Too often misleading statements or scare tactics are used to encourage those who have inherited a timeshare to believe they are liable for it. Don’t misrepresent the law or circumstances for financial gain.
  • Do not require consumers to initial documents “under duress.” Too often, consumers are faced with presentations consisting of long hours; eventually succumbing to high pressure sales tactics.
  • More transparency from the industry. If a consumer is referred  to another company or person to complete the presentation process, be transparent about the process (ie. obligation to sit through a two hour presentation to obtain discounted tickets) and amount of time it will actually take to possibly alleviate someone from their timeshare.
  • Eliminate company mediation. Do not require consumers to mediate through the company’s internal program should a dispute arise. Instead, use neutral, third-party mediation source such as Better Business Bureau or American Arbitration Association.
  • Easier exits. The recent establishment of deed-back programs may be a step in the right direction. More consumers should be able to take advantage of these programs. The establishment of more deed-back programs is likely to lead in a decrease in fraud seen in the resale and exit markets.

Inside Timeshare has received 515 timeshare complaints from our readers, 271 since January 1. All but a handful report their complaint was dismissed with “You signed a contract” or “We are not responsible for what our sales agents say.” Our advocacy efforts have had an effect. After publishing this last statement a few times, the defense has been changed to, “It sounds like a he said, she said” still relying on the oral representation clause. About 200 complaints were copied to ARDA / ARDA ROCbut were ignored.

If “You signed a contract” – is the industry’s official policy, and the regulator’s position in some states, the public needs to be made aware misrepresentations reported by timeshare buyers will be ruled in favor of the timeshare sales agent. In Florida and Nevada, all our readers’ complaints filed with those state Attorney General’s timeshare divisions have been dismissed with “You don’t have proof.” An upcoming article examines proof and why FBI agents and several attorneys don’t buy this response.

Inside Timeshare contributor Sheila Brust reported, “We were given ludicrous advice from a regulator that is clearly out of touch with timeshare consumer reality. I was told to contact a licensed timeshare resale broker, but every agent I contacted informed me my timeshare had no secondary market. By steering complaining members to licensed real estate agents, when turned down, members often end up the contacting a scam that will charge the member upfront money promising to sell or cancel their timeshare. Often that promise falls short.”

Inside Timeshare has received numerous complaints against Branson, Missouri sales centers. Our researchers discovered one Branson timeshare sales manager was selling points at the same time he was working for a timeshare exit company named Mutual Release a suspicious name for a company, as mutual release is the form signed when a timeshare issue has been resolved.

Our Advice

DON’T FINANCE A VACATION or any Luxury Item AT 12% TO 19% and don’t believe a word a timeshare sales agent says. As the St. Louis BBB recommends, check with a member of the Licensed Timeshare Resale Broker Association before buying any timeshare. There you will receive straight answers.

 http://www.licensedtimeshareresalebrokers.org/

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

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

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

https://tug2.com/Home.aspx

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

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

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

Sometimes it’s hard to focus on the positives when it feels like the battle is all uphill. All we can do is reach out to those who feel lost to let them know Inside Timeshare and real advocacy groups are there for them. Consumer and advocacy are two words members should take with a grain of salt, used and abused by scam artists. We are real advocates.   

That’s it for this week, Friday is here and the weekend is about to start, for those in Europe beware the heat wave, especially if you are travelling to Spain, Seville is reported to be facing temperatures of 48º C or 118º F.

Join us next week for more news and views on the world of timeshare, don’t forget if you have any comments, questions or just need to know about any company that has contacted you or you have found on the internet, then use our contact page and we will point you in the right direction.

Have a great weekend and don’t get sunburnt!

Marriott Change Contracts to Bypass Spanish Timeshare Laws

Since January 1999, when Law 42/98 came into force, many timeshare companies continued to sell their product as they had before, this all change when these laws were challenged and the Supreme Court ruled on the definitive interpretation. This interpretation made many contracts illegal, especially on two main points, the duration of the contract was limited, allowing only for a minimum of 3 years and a maximum of 50 years, the Supreme Court also ruled that floating weeks and points systems were also illegal as they lacked any substance or a tangible product.

The unfortunate thing is that many timeshare companies still sell floating weeks and points, one company Anfi, has added a week number and apartment number in an effort to get around this, but the courts still rule that it is floating as the contract actually states that. Others are using another ploy to get around Spain’s strict timeshare laws.

Inside Timeshare has received from one of our German readers a new contract that Marriott tried to get him to sign in May, to replace his existing contract for Marriott Vacation Club Destinations Exchange Program.

This would not be a problem if it were to comply with the law as it applies to Spain, but as we explain it is not designed to do this, it is purely a way to circumvent the strict laws on duration, points and floating weeks.

What Marriott have done has already been tried with contracts sold by Diamond Resorts and Club la Costa, in the past these two companies have used UK, Isle of Man, British Virgin Islands or other offshore havens and registered as  Limited Companies. The contracts also have a clause which states that the laws of the United Kingdom and the Jurisdiction of UK courts applies. Even if the contract was sold, signed and paid for in Spain.

With the case of Marriott, they now use a United States Florida address on the contract, 6649 Westwood Boulevard, Orlando, Florida, 32821-6090. They have also included in the terms and conditions a very unfair clause, this relates to the possibility of taking any legal action against them. This clause is placed in section 8 on page 5 of the contract we have seen, below is a translation from the German contract.

“By joining this program, you waive your right, under applicable law, to go to court for any legal action or lawsuits that may be brought by or against MVCEC or its affiliates in any way as to its interpretation, design, validity, enforceability, or instruments, related to the program (including replacement procedures)”.

The original in German.

So what does this mean?

You as a purchaser will no longer have any recourse to take legal action against Marriott, when you find out that your contract is illegal in Spain and would be declared null and void in a Spanish Court.

This is obviously a blatant attempt to surpass the laws of Spain, which have been put into place to protect consumers from unfair contracts and purchases.

Points which are the basis of many timeshare contracts are illegal in Spain, but they are still legal elsewhere, the duration of the contract is limited to a maximum 50 years in Spain but perpetuity is still allowed elsewhere. By using this method to bypass the laws of the country where the purchase is made, does not protect the consumer. It goes back to lock them into never ending contracts and a points system that most find are unusable due to no availability.

This can be born out by many comments on various forums, below are just a couple found on Tripadvisor; (spelling mistakes are from the originals).

“Unless you live in the US, forget about investing in a Marriott timeshare. I have bought one weeks ownership in in the resort in Phuket. The resort as such is beautiful and it seems well managed. However if you dont want to go to your home-resort every year exchanging it through Interval becomes extremely difficult especially if you are looking at resorts outside the US. Interval has very few properties of similar standing in Europe or Asia, even the Marriott property in Marbella Spain is almost impossible to obtain in exchange.

I am so frustrated with the investment that iI am considering selling the ownership. Marriott offered my app. 15% of what I originally paid inspite of the fact that property prices in Thailand have gone up considerably. I can only say that buying ownershi at Marriott Vacation in Phuket was the worst investment I have ever made in my life.”

“It is difficult to give feedback on the use of it when the places you want to go are never available unless you book 13 months in advance. That is ridiculous. I don’t know anyone who books their vacations that far in advance. So, I’ve only used it once in Florida (Panama City Beach) which is on the bay side. It was nice, but not convenient being I wanted to be on the beach. I agree with the others, it’s not worth the money. I can stay in places just as nice for the $ and book closer to the date which is convenient for me.”

So for those who have in the past purchased in Spain, if your old contract shows that it was signed in Spain and indeed comes under Spanish law, you have a right to claim the purchase price back and have your contract declared null and void in a Spanish Court. If you sign the new contract you will lose this right, if you are a new purchaser, then the advice is don’t bother as you will have no consumer rights at all.

If you have any questions or comments on this subject or wish to know if your contract is illegal under Spanish law, then use our contact page and get in touch, we will get back to you as soon as possible.

In tomorrow’s Tuesday Slot we publish yet another Veterans “Nightmare on Timeshare Street”, this highlights their Tahiti Village Timeshare Experience. Inside Timeshare has been receiving many such stories from Veterans, serving members of the military and law enforcement officers, some of these have been published others have just related their stories and asked for help. The author of tomorrow’s story has requested anonymity we have complied with their request. So join us again tomorrow.

Start the Week

Just as we were about to publish last Friday’s Letter from America, news came in from the Court of First Instance Number 3, Abona, Tenerife on the sentence made against Diamond Resorts Tenerife Sales SL.

In this case the court ruled on several infringements of the law 42/98, thus the court ruled that the contract was declared null and void with the client to receive a total of £44,790 which included double the deposit taken illegally on the day. (See PDF of sentence below)

1st N3 Diamond data protected (cla)

The EU Timeshare Directive 2008/122/EC which supersedes previous one along with the Spanish law states that no deposit shall be taken within the 14 day cancellation period (cooling off) even by a third party.

It is also stipulated that the consumer must also be informed of this prohibition in writing, failure to do so along with other information required by law, extends the cooling off period to 90 days. The courts are penalising resorts by paying the consumer double the amount taken within that period.

We have seen some sales decks using the method of issuing a voucher for accomodation, or even moving the purchaser into the resort and stating the payment was for accomodation, the courts have determined that this is indeed a payment to a third party to secure the sale, so is classified as a deposit.

Up until January 1999 most contracts were in what is known as perpetuity, or never ending. It was thought that as the original concept of timeshare was looked at as property, perpetuity appeared to be good thing. The law makers decided that contracts should be for a minimum of 3 years with a maximum of 50 years.

The thinking behind this was simple, it was felt that it is inherently unfair to saddle the children of purchasers with an ongoing debt for maintenance on a contract they did not instigate or sign.

The idea of “floating weeks & points” systems was made illegal due to the fact that they lacked any substance. With the fixed week system each purchaser was given a specific week number and apartment number. This was then logged at the land registry, this also had the effect of stopping overselling and guaranteed the purchaser a specific week in a specific apartment.

With the floating weeks and points systems you own nothing apart from a right of use which is subject to availability. You became a member of a vacation club rather than an owner with specific rights.

The sales of these were not governed to the same extent, therefore the resort was able to double, triple or even quadruple its membership. In other words have more members than actual weeks available, so actually being able to get your preferred date became a lottery.

It also has the advantage of more income in regard to maintenance fees, so obviously more profit!

There are other laws which are also being used in bringing these cases, they range from Civil Consumer Laws, Mercantile law and Criminal Law. All this is to protect the consumer and regulate an industry that for many years did what it liked, believing it could not be touched.

See PDF’ below for the English & Spanish version of Law 42/98 and EU Directive 2008/122/EC

42-1998 in english

42-1998 in spanish

eu_timeshare_directive_2008 Highlighted

There are many companies springing up now who will tell you that you do have a claim, many will entice you with a “no win no fee” offer. But then in order to do this you must first pay for a cancellation, this will cost thousands and as many of our readers have since found out, their contracts have not been terminated.

At present the only country in Europe that is seeing cases going to court is Spain, so unless your purchase was in Spain after January 1999, with the main criteria as above, then you may not actually have a claim possible.

If you have been contacted or have found one of these companies on the internet, it is important that you do your homework and check them out thoroughly. If you need any help in doing this then contact Inside Timeshare and we will point you in the right direction.

 

Friday’s Letter from America

Welcome to this weeks Letter from America, in this article which replaces the one scheduled, which we pulled once again at the last minute due to a very good response from the timeshare company, Irene Parker explains how US timeshare owners can file a complaint.

In Europe, Spain leads the way in protecting consumers of timeshare, we do understand that in the US, each state is responsible for their own laws, there seem to be no federal laws which govern the sale of timeshare. Europe has tried to unify how timeshare is sold, the unfortunate thing is that in many states the industry (with their large corporate law firms) have held sway.

Spain, which was one of the main areas where timeshare resorts were being developed, has suffered from the bad press associated with the industry. People being hijacked on the street while on holiday, bundled into taxis to endure hours of hard sell by unscrupulous sales agents. Although the blame must be on the sales and marketing companies,who paid only on results, commission only. Many start out okay, but the pressure to produce is enormous and an agent can be forced out by being given poor quality “ups” if they don’t produce.

The European Union developed a series of timeshare directives which each member state had to enact into domestic law, many have watered them down, Spain on the other hand decided that they needed to be strengthened and enacted Law 42/98.

This law came into force in January 1999, since then it has been strengthened by Law 4/12 along with the many Supreme Court rulings.

This now gives consumers more protection, no deposits within a 14 day cooling off period, no contract longer than 50 years, no points or floating weeks systems, with many other safeguards.

There are other laws which protect the consumer which are being used in the many cases coming before the courts, these include the civil consumer laws, mercantile law and by no means least, criminal law.

The way consumers are enticed to attend presentations has also been looked into, OPC’s are now regulated and licensed, unlike before. Infringements of the regulations can result in very severe penalties.

Timeshare in Europe has a very bad reputation because of the past, the original concept cannot be faulted, it is the greed around the sales that is to blame. We know this to be true due to the closing of many sales decks, with many of the sales agents now working for the “bogus” law firms and claims companies that are springing up on an almost daily basis.

Inside Timeshare is doing what it can to warn consumers of these companies, but as soon as we identify one there is another to replace it. Litigious Abogados is a great case in point, changing names every few months but the “scam” is the same.

It is only through the help of our readers that many of them are identified, as owners / members working together we will be able to protect the timeshare community.Now for this weeks Letter from America.

How to File a Timeshare Complaint (May 2018 revision)

Start with the Attorneys General Office

Timeshare Advocacy Group™

May 18, 2018

By Irene Parker

I have learned over the years that when one’s mind is made up, this diminishes fear; knowing what must be done does away with fear. Rosa Parks

Inside Timeshare received 425 US timeshare complaints as of May 16, 2018 (238 was the number of complaints reported as of our last revision 12/15/17). An escalation in the criminal nature of member allegations, especially those voiced by 45 active duty and retired military and law enforcement, led us to the FBI (9 members of the military/law enforcement reported allegations of timeshare fraud as of 12/15). Some fear they could lose their Security Clearances due to a foreclosure on their record. Active duty military feel this is a threat to our national security as just about anyone can get hired to sell timeshare points.

Members need to be especially vigilant about “Get you out of your timeshare” firms because many are scams. Timeshare Advocacy Group™ (TAG) has a scam research team formed by members who have themselves been scammed. Contact Inside Timeshare or one of the self-help groups listed below if you are contacted by someone you don’t know offering to help you get out of a timeshare.

This US Department of Justice timeshare scam report details the extent of the problem. Based on 425 complaints, our advocates feel the front of the timeshare sale contains a comparable level of criminal activity.  

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

Timeshare developers created the criminal cottage industry of transfer and exit scams by overreliance on the oral representation clause, iron clad developer based contracts, the lack of an adequate secondary market, and ingrained deception run amuck, according to reported complaints. The vast majority of our readers are highly professional, educated citizens with credit scores around 800 who have rarely been late paying a bill. Identical complaints, directed against the same sales agent, sometimes in cooperation with a manager or vice president, can establish a pattern of complaints.

It is one thing to say I am a sinner, but let someone else say that about me and then I feel it – I am up in arms. If I am falsely accused I may suffer, whereas if correction be found on even a small reality – something in me having deserved it – then often that hurts more. We must be happy that our faults are known as they are. Mother Teresa

With no way out if the timeshare company refuses to even acknowledge the deception, hiring a lawyer or foreclosure were the only options until real consumer advocates formed Timeshare Advocacy Group™ – bridging the gap between the developer and the member harmed. At times it felt like turning the Titanic, but closing gaps on social issues never comes easy and some causes take longer than a lifetime. Rosa Parks refused to sit at the back of the bus at great peril to her safety, but Rosa reached a decision that enough was enough and action was needed. It was a small action, but one that led to great changes. Educator and activist Parker Palmer explains: https://www.youtube.com/watch?v=fK0dXNK94BM

Almost all members have reported their timeshare company responded to their allegations of deceit with, “Sorry, you signed a contract” or “We are not responsible for what our sales agents say.” This knee jerk dismissal is backed up by some Attorneys General, via their timeshare divisions, responding the same. Unscrupulous timeshare sales agents realize this of course, so the hamster wheel of recycled inventory never ceases beginning with “It’s not a sales presentation.” If there is still truth in advertising, change needs to begin there.   

According to the FBI and to lawyers consulted, it is not legal to hide behind fine print, but it takes volumes of complaints to raise a regulator’s eyebrow. The Federal Trade Commission released its summary report of 2017 complaints listing travel, vacation, and timeshare as one of the most costly frauds at $1,710, although complaints we have received from members range from $25,000 to $400,000 or more. We wish members were only losing $1,710.   

Travel, vacation, and timeshare frauds were the most costly with people losing a median amount of $1,710. The FTC also broke out fraud losses for members of the military and found their median fraud loss to be 44 percent higher than the general population.

https://www.jacksonsun.com/story/opinion/columnists/2018/04/06/ftc-releases-2017-complaint-statistics/493425002/

According to the FBI,

White-collar crimes are characterized by deceit, concealment, or violation of trust and are not dependent on the application or threat of physical force or violence. The motivation behind these crimes is financial—to obtain or avoid losing money, property, or services or to secure a personal or business advantage. These are not victimless crimes. A single scam can destroy a company, devastate families by wiping out their life savings, or cost investors billions of dollars (or even all three).

Mortgage fraud is a subcategory of financial institution fraud known as “fraud for profit”:

Fraud for profit: Those who commit this type of mortgage fraud are often industry insiders using their specialized knowledge or authority to commit or facilitate the fraud. Current investigations and widespread reporting indicate a high percentage of mortgage fraud involves collusion by industry insiders, such as bank officers, appraisers, mortgage brokers, attorneys, loan originators, and other professionals engaged in the industry. Fraud for profit aims not to secure housing, but rather to misuse the mortgage lending process to steal cash and equity from lenders or homeowners. The FBI prioritizes fraud for profit cases.

https://www.fbi.gov/investigate/white-collar-crime

The FBI has advised our members, if the allegation involves credit card fraud, the member should also file a complaint with the Secret Service.

https://ask.metafilter.com/81136/Should-I-call-the-Secret-Service-over-credit-card-fraud

The two most common complaints reported:

  • The agent said I could easily sell my points
  • They said I could pay maintenance fees by charging purchases to a credit card, neglecting to add only about 1% of each purchase is credited to maintenance fees. Some fell for bogus maintenance fee relief programs. Already struggling, they buy more points.

How Advocacy Works

Timeshare Advocacy Group™ is organized into seven teams:

  1. Team 1 is our Reporting Team. Once the timeshare member has related their concern or grievance, the member submits their written complaint to the timeshare company. If ignored or the member receives a negative response, the complaint is forward to one of six advocates assigned to a specific regulatory or law enforcement agency. For example, Sheilah Brust is our go to person for the FBI and the Secret Service. http://insidetimeshare.com/tuesday-slot-irene-4/
  2. Team 2 is our Legislative Team. Members on this team reach out to sympathetic lawmakers to advocate for better disclosure. It would be nice to know that the timeshare you just bought for $100,000 had little or no secondary market the moment you signed the contract. TAG has received an alarming number of complaints from seniors 75 to 85 who have signed timeshare contracts for $100,000 or more. Not one of the 425 members reaching out to Inside Timeshare realized their timeshare in all likelihood could not be sold, even when costing as much as a house.
  3. Team 3 is our Military Team. We encourage anyone who has resolved their timeshare complaint as a result of our efforts to make a donation to Whistleblowers of America. WOA is a non-profit that seeks justice for active duty and veteran members of the military and government workers. WOA has supported our efforts by helping to distribute our articles. Our timeshare fraud report was presented as part of a Joint Committee on Veterans Affairs March 14, 2018.  https://whistleblowersofamerica.org/
  4.  Team 4 is our foreclosure support group. Facing cruel and relentless debt collection calls can be an overwhelming experience for anyone who has rarely been late on a bill, but for those who have recently lost a spouse the experience is devastating. Some members of this team have been through this and are determined to stay involved to fight Elder Fraud especially.
  5. Team 5 is our Scam Research team. This team consists of members who themselves have been scammed. There is a very dark side to this illegal industry. We are careful in our approach.
  6. Team 6 is our Media Team. Given state regulators backing up the timeshare company by responding, “You should not have relied on verbal representation” or “You have no proof” the Court of Public Opinion and Outcry is the only court open in some states.
  7. Team 7 is our Technology team.  We have a support staff of volunteers to assist those without access to a computer due to age, illness or disability. This team also provides YouTube production support.

Contact Inside Timeshare or email Irene Parker at [email protected] or call 270-303-7572 EST if you are interested in becoming a volunteer. Feel free to call any day of the week from 1:00 to 5:00 PM EST. It’s best to schedule a call. All calls and emails are returned within 24/48 hours.

Now it’s time to begin filling out the form. Before you begin, raise your right hand.

Do you promise to tell the truth, the whole truth, and nothing but the truth, so help you God? It is important to present your information factually and without opinion or inflammatory language.

Our advocates are not attorneys and we do not provide legal advice. We have researched regulatory agencies and are here to direct consumers to the appropriate regulatory and law enforcement agencies listed below. We have also developed media relationships and will continue to work with broadcast and print media to alert the general public as to what questions to ask before buying a timeshare. Life events can change your life in an instant or a day. If your timeshare provides no secondary market, it can make a member feel a hostage to their vacation plan. It’s a good idea to contact a member of the Licensed Timeshare Resale Broker Association to find out whether your timeshare has a secondary market. http://www.licensedtimeshareresalebrokers.org/

How to File a Timeshare Complaint

Name (s) and age of member

Phone Number

State of Residence

Member Number

For each contract in dispute:

Where Purchased and Date of Purchase

Number of Points Purchased

Sales Agent and Sales Agent ID# (if available)

Purchase Price

Amount Financed and Interest Rate

Current Loan Balance

Loan Number

Current Maintenance Fees

Name of Credit Card if one was used

What do you want? Do you seek Refund or Relinquishment?

Why? Is it due to Deception, Health, Age or Financial Burden?

If your investment is $40,000 or less and you owned and used your timeshare for ten years or more consider relinquishment. There can be no loan outstanding and maintenance fees need to be current.

Complaints expressing dissatisfaction with general availability will go unheeded as will a request based on not being able to afford the timeshare. You can’t go to your home mortgage lender and say you can’t afford it. The difference is you can sell your home. Your complaint should be filed with the FBI only if there are credible and serious allegations of deceit and bait and switch. If you feel you were deceived, list the reasons why.   

MOST IMPORTANT – Purchase Timeline

It is better to state your narrative as a narrative referring back to the contracts and figures at the top of your complaint. Begin with when you first became involved with the company and proceed chronologically. Keep your history brief up to the point when things began to go wrong.

After you complete your complaint, email it to the appropriate resort department or to TAG if you need help with your complaint. Expect to be denied. Typically your resort reviewer will restate your concerns, produce your initials and signatures, point out the oral representation clause and inform you, “If something was important to you, you should have asked for it to be put in the contract.” File a rebuttal if you disagree with their response.

Depending on the seriousness of your complaint, your advocate may forward your complaint to the firm’s public relations office or firm and to ARDA, the timeshare industries PAC, for violating ARDA’s Code of Ethics. ARDA’s Code of Ethics can be found on ARDA’s website.

We do not recommend owners make the voluntary opt in or opt out ARDA ROC contribution on your maintenance fee invoice. It is the opinion of our advocates that although ARDA lobbies for the industry and for timeshare members, when the issue at stake is one that is at odds with members, members lose because they have no voice. We also forward your complaint to the Association of Vacation Owners. AVO has been tracking our complaints for research purposes. http://insidetimeshare.com/the-tuesday-slot-with-irene-3/

Mark your email to the resort urgent if you are in financial distress. It is best to file a complaint before the debt collectors are hounding. The member will report back to us if the issue is resolved. Due to the required non-disclosure or mutual release form, terms and conditions will not be discussed.

The FBI complaint website is called IC3.gov which stands for Internet Crime. This is a bit confusing. IC is the name of the portal. That doesn’t mean it has to be an internet crime. We think they should have a white collar crime option to avoid this confusion. Click IC3 as your choice when filing. https://www.ic3.gov/default.aspx

Serious allegations of fraud should be reported orally by calling the FBI field office’s public access line available 24/7 (see Sheilah’s article). Sometimes your local field office will pay closer attention than say Las Vegas, where losing money is a tourist attraction. You can find your nearest field office from this website.

https://www.fbi.gov/contact-us/field-offices

The next step is to file a complaint first with the Attorneys General of the state where you signed your contract and where you live. It can take a month or more to hear back from an AG but once your complaint has been accepted, debt collectors are not allowed to call. You can find any Attorney General by searching the state name and Attorney General.

If there was an unauthorized credit card charge or account opened or you feel you were deceived into signing off on a loan, you should file with the Consumer Financial Protection Bureau under the mortgage option (even if no mortgage) and select the bank that financed your loan or issued a credit card. This is the organization that helped Wells Fargo victims. The CFPB lost power after the roll back of the Dodd Frank act March 2018. The Dodd Frank act was enacted after the abuses caused by subprime lending. The CFPB is still considered a regulator. https://www.consumerfinance.gov/

You should file a complaint with the state Real Estate Division in the state where the agent is licensed if your complaint is against a sales agent. Your advocate can help you find the agent’s ID number. Timeshare sales agents are real estate licensed in most states.

File a complaint with the Better Business Bureau. The company’s BBB rating can be misleading in that the BBB only rates how efficiently a company responds to complaints. Sometimes the BBB allows you to log in and file a rebuttal.  

Most important, consider reaching out to local or national media. Reporters look for content and are surprisingly easy to reach. Write an article about your experience. The more people who come forward, the more the public is made aware of timeshare black holes before engaging in a timeshare sales presentation.

Summary of Regulatory and Law Enforcement Agencies

  • The FBI at IC3.gov portal if you feel you were deceived by a bait and switch. For allegations of a serious nature also contact an FBI field office to file an oral tip. Have your facts and figures ready.
  • Attorneys General where you signed your contract. Most AG complaints can be filed online.
  • The Real Estate Division of the state where the agent is licensed if your complaint is against the agent.  
  • The media – the court of public opinion is often the only court available. Inside Timeshare, published in Spain, publishes timeshare articles online focusing primarily on the need for reform and oversight.
  • The Consumer Financial Protection Bureau under the mortgage option selecting the bank involved. Timeshare has dodged this regulatory bullet because most members don’t even know the identity of the lender as the timeshare company often services the loan. Timeshare companies are not an option from the CFPB’s drop-down menu.
  • The Federal Trade Commission
  • The Better Business Bureau
  • Lawmakers – The problem is the timeshare buyer typically does not buy in their state of residence which is why lawmakers don’t seem to take timeshare seriously. Still, any effort to contact lawmakers is encouraged.

If this sounds like work, it is, but you can file with some, all, or none of the agencies. We have a team of advocates who can answer questions and help guide you through the process. We feel “Action and Advocacy” is the way to change questionable timeshare business practices.  

If you are granted a positive outcome, you may not say or write anything disparaging about the resort, but there is no harm in staying involved by referring timeshare members who need help to Inside Timeshare or to one of the self-help groups listed below we know are not industry influenced.   

Who We Are and Why We Do This

Timeshare members contacting us are often struggling with maintenance fees and high interest rate loans. Venting on complaint sites has no effect whatsoever but an organized campaign to track complaints and report criminal activity has already born fruit in the form of Attorneys General settlements and a greater awareness.

If all else fails, we will refer to an attorney if the member can afford one. If you are forced into foreclosure, but have an otherwise unblemished credit report, you can write to the credit reporting agencies in an effort to explain why you were deceived and why you were not able to resolve your dispute.

I worked three years as a CASA supervisor, writing and editing court reports for Family Court on behalf of foster children. I find two commonalities between children of abuse, neglect or dependency and deceptive timeshare sales.

  1. The abnormal becomes the normal. After receiving 425 complaints, I fear deception is endorsed and encouraged by some timeshare companies. Of course not all sales agents are dishonest. Inside Timeshare endorses Disney Vacation Club because of their scarcity of complaints.
  2. Victims are silenced and isolated via non-disclosure agreements and arbitration. Buyers should opt out of arbitration immediately after signing a contract.   

There are many who use and enjoy their timeshare. My husband and I owned three timeshares for 25 years with no problems or complaints. After we attended a pathetically aggressive sales presentation in 2015, I began researching the industry, writing articles and assisting timeshare victims. My solo effort has grown to a network of 44 Advocates. We are not compensated. We are volunteers. We hope there will come a day our advocacy group is not needed.

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

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

http://tug2.net/

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

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

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

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

May 18, 2018 Irene Parker Timeshare Advocacy GroupTM

 

That’s it for this week, the weekend once again beckons so join us again next week for more news and information on the world of timeshare.

Latest news just in from the Court of First Instance Number 3 Abona Tenerife.

The judge in a case against Diamond Resorts Tenerife Sales SL, has declared the clients contract null and void. The infringments are the points system which has been made illegal, the contract in perpetuity, when the law stipulates that it should be for a maximum of 50 years and the taking of deposits within the cooling of period, which is also illegal even by a third party.

The client will now receive a total of £44,790 which includes double the deposit illegally taken, the court also awarded legal interest.

The laws in Spain have been put into place and strengthened by the Supreme Court to protect consumers, they are having a profound affect on the industry, which for too long believed it was untouchable.

Spanish Timeshare Laws Simply Explained

Over the past few months Inside Timeshare has received many enquiries regarding timeshare claims, in this article we look at the law in Spain and what constitutes a valid claim.

In December 1998 Spain passed Law 42/98 which came into effect on 5 January 1999, this was a result of the European Timeshare Directives which were put into place to protect consumers. Under these directives each member state had to put into their own domestic laws regulations governing the sale of timeshare.

Spain was one of the first to do this, as a result they have some of the strongest regulations in Europe.

For a long time many resorts / developers failed to abide by them, continuing to sell the same way as before. This has now resulted in many cases going to court with resorts / developers being penalised for their failure to comply.

At first, many cases taken to court by consumers were being lost as the resorts successfully argued that they were in compliance of the laws. This all changed in March 2015, when the Supreme Court in Madrid ruled on the very first timeshare case.

justice

This case involved a Norwegian lady who had a case against Anfi in Gran Canaria, the case took around 5 years to complete, but it had a profound effect on cases to follow.

The timeshare laws which have been the subject of consistent breaches have been the taking of deposits or any payment within the cooling off period, this also includes by a third party. Many resorts tried to get around this by using Trust Companies, but the court has also ruled that this is indeed a third party.

The other main area of contention was the perpetuity contract, the law states that contracts should be for a minimum of 3 years and a maximum duration of 50 years.

Both of these have been ratified by the Supreme Court on many occasions, which now puts them into jurisprudence. What this means is that they are no longer up for discussion and all courts must abide by them.

There have also been some other significant rulings made by Spain’s Highest Court which have strengthened the law and benefited consumers.

The points and floating week systems is another which the Supreme Court has also ruled on and is now enforceable by all courts in Spain. The reasoning behind this ruling is that these systems have no actual substance, unlike the fixed week fixed apartment system which was the original timeshare model, there is no week number or apartment number attached.

With the old fixed week system you were guaranteed the week and apartment assigned, this could be changed using either the internal exchange system or one of the major exchange companies. So it was actually flexible. It also made it impossible for the resort to oversell membership, as they could only sell 51 weeks of each apartment.

With the points and floating systems you actually own nothing, you are a member of a vacation club with the right to use subject to availability. This also allowed the resorts to oversell the membership as they were not governed by the 51 weeks in each apartment. This has obviously led to many complaints of not being able to book the weeks that members actually wanted.

Another major breakthrough came in January 2017, when the Supreme Court ruled against Silverpoint. This came about due to many cases against Silverpoint for selling packs of weeks as an investment.

The theory behind these sales was purchasers would buy a series of weeks, which the company promised to sell within 2 years, with the purchaser making a profit. Very few if any ever achieved this, usually the story was that what they had purchased was not selling well and they would need to upgrade to a better resort in order to sell. This has left many with huge loans as these were financed mainly by Barclays Partner Finance, with the loan agreements being completed by the sales staff.

There were many cases taken through the courts but Silverpoint successfully argued that the purchasers were investors not consumers.

The first case involving a UK purchaser ended up at the Supreme Court, the total time from start to finish was around 5 years. This court ruled that these purchasers were indeed consumers of a timeshare product and not investors. The thinking behind this ruling was that maintenance fees were also part of the purchase, also the court believed that to be classified as investors, this must be a primary source of income. This resulted in these consumers having full protection of the timeshare law, which also maintains that timeshare should not be sold as an investment.

Since the first ruling in March 2015, there have been 84 rulings made by the Supreme Court, each and everyone backing up the previous one. At present there are still around 100 cases pending and waiting to be heard by this court, some of these will also bring new changes and clarification to the laws.

cropped-TRIBUNAL_SUPREMO_DE_ESPAÑA4

There has also been an update to the 42/98 law with the introduction of Law 4/12 which has included the changes brought in the Timeshare Directive of 2008.

So unless you purchased or upgraded in Spain after January 1999, have at least one of the major points ruled by the Supreme Court you may not have a valid claim. You will also need to employ the services of a Spanish Registered lawyer, preferably one with the experience of timeshare claims.

At Inside Timeshare we have heard from one consumer who decided they wanted to employ the services of a lawyer registered to practice in Spain but of their own nationality. His claim failed. The lawyer did not have the knowledge or experience of this complex area of law, believing that because of the Supreme Court rulings it would be an easy case to win. This client has now taken on the services of another lawyer with the experience in this field to lodge an appeal as he was not given the correct legal advice. This has obviously cost him more, hopefully he will win the appeal.

This does go to show that just because the Supreme Court has made these rulings, it is in the end down to the lawyer or law firm that you engage, if they do not have the knowledge or experience in this field then you may end up losing a lot more.

If you have any question on this subject or wish to check if you have a valid claim contact Inside Timeshare and we will give you the facts.

The Tuesday Slot: Giving You a Helping Hand

For many people it can be a daunting task to prepare a complaint against a large company, how is it written, who do you file it with? These are all questions that need to be answered.

In Europe the matter of making a complaint against a timeshare company has actually become easier, especially in Spain, where the laws are on the side of the consumer. But trying to deal with a company that has for the most part tied you up in contracts and legal jargon, has resulted in many complaints by consumers just being put aside with the feeling what is the point?

In today’s article Irene shows how to write the complaint and who to file it with, the most important point is don’t let it get you down there is always help out there. So on with the advice.

How to File a Timeshare Complaint

complaints

By Irene Parker

September 12, 2017

After Inside Timeshare received 135 US timeshare complaints (as of September 8, 2017), this guide evolved to use as a blueprint to file a complaint. Previously, we published an article called “The 3Rs or F of Timeshare” because no one should have to own anything in perpetuity if they can no longer use or afford the product.

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

How to File a Timeshare Complaint

  1. Name (s) and age of member
  2. Phone Number
  3. State of Residence
  4. Number of points owned per contract
  5. Member Number
  6. Loan Number  
  7. Current Maintenance Fees
  8. Total purchase price per contract
  9. Location purchased
  10. Sales agent and sales agent ID Number if available
  11. Original Loan Amount, Loan Number and stated interest rate
  12. Current Loan Balance
  13. What do you want? Do you seek Refund or Relinquishment?
  14. Why? Is it due to Deception, Health, Age or Financial Burden?

If your investment is $40,000 or less and you owned and used your timeshare for ten years or more consider relinquishment.

Availability:  Dissatisfied in general with availability complaints will go unheeded.

MOST IMPORTANT – Purchase Timeline

It is better to state your narrative as a narrative referring back to the contracts and figures at the top of your complaint. Begin with when you first became involved with the company and proceed chronologically. Keep your history brief up to the point when things began to go wrong.

The most common complaint is bait and switch. If you feel you were deceived list the reasons why.

who what

How Advocacy Works

Email Inside Timeshare your complaint if you would like to talk to someone about your concerns. Before you begin, raise your right hand. Do you promise to tell the truth, the whole truth, and nothing but the truth, so help you God? It is important to present your information factually and without opinion.

Consider becoming a volunteer report writer if you have reporting experience.

If you have questions, email Irene Parker – [email protected]

Cell – 270-303-7572 EST – Feel free to call any day of the week between 1 to 5:00 PM EST or if you are unable to prepare your own report.

We are not attorneys and we do not provide legal advice. We have researched regulatory agencies and are here to direct consumers to the appropriate regulatory agencies. Agencies are listed below. We have also developed media relationships and will continue to work with broadcast and print media to alert the general public as to what questions to ask before buying a timeshare. Life events, like a hurricane, can change your life in an instant or a day. If your timeshare provides no secondary market, it can make a member feel a hostage to their vacation plan. Contact a member of the Licensed Timeshare Resale Broker Association to find out whether your timeshare has a secondary market.

http://www.licensedtimeshareresalebrokers.org/

After you complete your complaint email it to the appropriate resort department. Expect to be denied. Typically your resort reviewer will restate your concerns, conduct an investigation and report back that the sales agent (s) denied your claims. It’s a negotiation so if denied, file a rebuttal.

deneid

If you feel you are a victim of deceit and bait and switch, send us a copy of your complaint. An Advocate will file your complaint on your behalf with the firm’s public relations office and ARDA, the timeshare lobby, for violating ARDA’s Code of Ethics which can be found on ARDA’s website. We do not recommend owners make the voluntary opt in or opt out contribution on your maintenance fee invoice for ARDA ROC (Resort Owners Coalition). ARDA is basically a PAC that lobbies for the industry when the issue is one that is at odds with members. We will also include NTOA National Timeshare Owners Association and the bank that financed your loan or issued a credit card. By having the Advocate file on your behalf, we can track complaints, documenting a pattern of criminal behavior.

Mark your email urgent if you are in financial distress. It is best to file a complaint before the debt collectors are hounding. It may take up to 30 days to hear back from the resort. Resend in three weeks if you have not heard back. If you feel you were a victim of deceit and bait and switch, give the resort a week to respond before filing regulatory complaints.

The member will report back to us with a positive or negative outcome. Due to the required non-disclosure or mutual release form, terms and conditions will not be discussed. Just report a positive outcome or resolution.

If your resort denies your claim begin filing complaints with regulatory and law enforcement agencies beginning with the Attorneys General of the state where you signed your contract, where you live and where your resort is domiciled. It can take a month or more to hear back from an AG but once your complaint has been accepted, debt collectors are not allowed to call. You can find any Attorney General by searching the state and Attorney General.

office of ag

If there was an unauthorized credit card charge or you feel you were deceived into signing off on a loan, you should file with the Consumer Financial Protection Bureau under the mortgage option (even if no mortgage) and select the bank that financed your loan or issued a credit card. One common complaint is that the buyer was told they could get a lower interest rate from a bank or credit union. File with the CFPB only if there is a loan outstanding or a credit card was used.

You should file a complaint with the state Real Estate Division in the state where the agent is licensed if your complaint is against a sales agent. The Advocate can help you if you don’t know the agent ID number. Timeshare sales agents are real estate licensed in most states.

File with the Better Business Bureau, although the company’s BBB rating can be misleading in that the BBB only rates how efficiently a company responds to complaints.

The definition of Financial Institution Fraud under the FBI’s definition of White Collar Crime is “deceit, concealment, violation of trust and bait and switch”. The FBI assigns Financial Institution Fraud the highest priority. You can read about White Collar Crime on the FBI website, but complaints are filed at IC3.gov. This is somewhat confusing because IC stands for Internet Crime and people think it has to be internet related. IC3.gov is just the name of the portal.

fbi

 

Most important, consider reaching out to local or national media. Reporters look for content and are surprisingly easy to reach. Write an article about your experience. The more people who come forward, the more the public is made aware of pitfalls before engaging in a timeshare sales presentation.

Our “Chicken Soup for Timeshare’s Soul” Inside Timeshare article is linked at the end of this article explaining what to expect or not expect when you file with a regulatory or law enforcement agency.

Summary of Regulatory and Law Enforcement Agencies

  • Attorneys General where you signed, where you live and where the resort is domiciled. Search (state name) Attorney General for contact information. Most AG complaints can be filed online.
  • The Real Estate Division of the state where the agent is licensed if your complaint is against the agent. “Right-to- use” membership programs are not defined as real estate, but the agent is typically a licensed real estate agent.
  • The FBI under the IC3.gov portal if deceit or bait and switch.
  • ARDA if you feel ARDA’s code of ethics has been violated.
  • The media – the court of public opinion is often the only court available. Inside Timeshare, published in Spain, publishes timeshare articles online focusing primarily on the need for reform and oversight.
  • The Consumer Financial Protection Bureau under the mortgage option selecting the bank that issued the travel credit card or financed your loan.
  • The Federal Trade Commission – due to lack of secondary market
  • The Better Business Bureau
  • Lawmakers – The problem is the timeshare buyer typically does not buy in their state of residence which is why lawmakers don’t seem to take timeshare seriously. Still, any effort to contact lawmakers is encouraged.

If this sounds like a work, it is, but you can file with some, all, or none of the agencies. We feel “Action and Advocacy” is the way to change questionable timeshare business practices. Change requires volumes of complaints.

What to expect from regulatory agencies

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

Life without timeshare through “The 3Rs or F of Timeshare”

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

If you are granted a positive outcome, you may not say or write anything disparaging about the resort, but there is no harm in staying involved. Reach out to others when you stay at resorts. Create a business card type flyer.

Who We Are and Why We Do This

working others

The timeshare industry is wealthy and powerful, able to influence politicians and Attorneys General. Timeshare owners typically are struggling with maintenance fees, unorganized and alone. Venting on complaint sites has no effect whatsoever.

There are a number of timeshare members and non-timeshare member advocates working behind the scenes to assist in the complaint process. If all else fails, we will refer to an attorney if the member can afford one. If you are forced into foreclosure, but have an otherwise unblemished credit report, you can write to the credit reporting agencies in an effort to explain why you were deceived and why you were not able to resolve your dispute.

After retiring from Edward Jones working as an Investment Representative, I worked three years as a CASA supervisor, writing and editing court reports for Family Court on behalf of foster children. I find two commonalities between children of abuse, neglect or dependency and deceptive timeshare sales.

  • The abnormal becomes the normal. After hearing 136 complaints (as of September 5), I fear deception is endorsed and encouraged by some timeshare companies. I have interviewed nine current and former timeshare sales agents and managers. They call it “pitching heat” or “No Heat, No Eat”. Of course not all sales agents are dishonest. We hear primarily from buyers seeking assistance when victimized by unscrupulous agents.
  • Victims are silenced and isolated via non-disclosure agreements. Non-disclosure is appropriate in the case of a settlement, but when a family receives nothing after an alleged bait and switch, after spending $5,000 to $500,000 or more on a vacation plan, not allowing the victim to say anything disparaging about the company seems harsh. Many of the families we have worked with are financially devastated.

There are many who use and enjoy their timeshare. My husband and I owned three timeshares for 25 years with no problems or complaints. After we attended a pathetically aggressive sales presentation in 2015, I began researching the industry, writing articles and assisting timeshare victims. I am not compensated by anyone. Our Advocacy Group is composed of volunteers. We hope there will come a day our Advocacy Group is not needed.

Self Help Groups

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

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

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

September 12, 2017 Irene Parker Timeshare Advocacy Group™  

Although this article is aimed at our American cousins, the principle of how it is written will be the same for Europe. If you believe your complaint is valid, don’t give up, that’s what they want you to do, be persistent, be strong and seek help, it is out there.

In Europe the EU has set up many consumer agencies, most EU countries have consumer rights groups and Consumer Affairs offices. In the UK there are several that you could use, one which has been very good in the past is the Trading Standards Office, these are set up by local councils and have a lot of clout. They have also been instrumental in having some rather shady companies closed down.

Then there is legal action, employing a law firm to take your case to court, in Spain over the past few years this has been very successful. Law 42/98 and the updated version Law 4/12, is based on the EU Timeshare Directives, which were put into place to protect consumers and regulate the industry. Spain now has the strongest timeshare regulations in Europe, these along with other civil consumer laws protect consumers from unfair practices and contracts. These have been strengthened over the past couple of years with around 57 rulings from the Supreme Court, Spain’s highest court, which has removed any doubt about their interpretation.

It now remains for other EU countries to do the same, so no matter where you purchase, the same protection is available. We may even just see a change in the industry for the better.

If you require any further information about this or any other article, contact Inside Timeshare and we will point you in the right direction.

Inside Timeshare also wants your stories,

good, bad or downright ugly,

so if you have something you would like to share or think will help others,

then

hear from you

 

Truth, What is Truth?

Over the past few weeks, Inside Timeshare has received many enquiries regarding Anfi and who is telling the truth regarding the court cases and Supreme Court rulings. Many of these questions have been coming from Anfi members themselves, having received emails and letters from Anfi who deny anything is going on. So the question is what is the truth?

According to a letter sent by the CEO of Anfi Group in June, which we published in the following article:

http://insidetimeshare.com/anfi-ceos-letter-members-desperation/

mahatma-gandhi-quote-an-error-does-not-become-truth-by-reason-of

Anfi deny any wrongdoing, they continue to state they are not losing court cases, that the Supreme Court stated that Anfi were acting in good faith when selling perpetuity contracts. This in itself is a little strange as the Supreme Court has verified that the law 42/98 which states that contracts must be of a maximum 50 years, is correct. In other words why would this court say that perpetuity contracts are illegal, then on the other hand that Anfi acted in good faith?

According to the CEO, Anfi members are asking for their help in getting out of court cases instigated by various law firms, again this does not ring true, after all having used legal services in the past, you employ the law firm, if you wish to withdraw that is your right. You don’t need any help, especially from Anfi. Is this yet another deception?

In another section of his letter he goes on to say the Supreme Court agrees that any member who has had their contract declared null & void should in principle pay for past holidays taken. Inside Timeshare has not seen any evidence of this, in fact this point has been going on for some time, with even the RDO publishing their support for this. Again it is another ploy by the timeshare industry to save itself!

We won’t dwell on the CEO’s letter as you can read the previous article.

Another couple contacted Inside Timeshare after receiving an email about their own membership. It would seem this particular couple are not happy with their purchase, and wish to terminate the agreement. It starts by stating that Anfi does not consider their contract to be illegal until a court deems it so.

Again this flies in the face of previous statements, that their contracts are legal and it is the courts that have got it wrong, the truth is, the courts have found the contracts have infringed the timeshare law, is this another untruth?

In this email Anfi state once again that they are not losing, that cases which have been lost at the Court of First Instance are going to appeal. Yes they may be going to appeal, but only to prolong the process. After all, now that the Supreme Court has made 57 rulings against various timeshare companies, of which around 32 have been made against Anfi, all the courts must abide by them regardless. If the law has been broken then that is that!

On the point of one part of the law, the taking of deposits within the 14 day cooling off period, in this particular email, Anfi deny taking any deposit for the sale of the timeshare. They say they have a signed reservation form for so many nights accommodation at their Hotel Gran Anfi. Hang on a minute, is it not a timeshare resort?

Regardless of that point, according to them there is no mention on the documentation that it forms part of the payment for membership. Bit of a moot point there, after all the timeshare law states that no payment shall be taken on the day the contract is signed, even by a third party. So one could interpret that as the payment taken at the time of signing, even for accommodation, is payment to a third party! We’ll leave that one for the judges to decide.

legal clipart

The tone of the email is not very pleasant, the writer states “Our company is strongly focused on the future, and the goal is to have only loyal members”, well not very conducive to customer relations, would you not agree?

Well, let’s get down to some facts, Inside Timeshare during its investigations over the months has come up with the following figures. These may just be a little out of date as they were compiled some months ago and many more court cases have taken place since.

Cases lost by Anfi upto June 2017

Court                                              1st Instance                2nd Instance           High               Court Supreme
2015                                                      11                                      2                         18                               3

2016                                                       8                                      0                         17                              27

2017                                                       9                                       1                           4                               2
______________________________________________________________________
Total                                                     28                                     3                         39                              32

Remember, it was in March 2015, that the first Supreme Court ruling was made against Anfi, this was the case of the Norwegian lady Mrs Tove Grimsbo. Or is this another fact that Anfi are not acknowledging?

It is estimated that since January 2015 the courts have awarded over 3,435,974.56€ to former Anfi clients.

Only last week one client was awarded their purchase price back, 27,895€ by the Court of First Instance Number 2, in Maspalomas. That same court also ordered that double the deposit was to be paid back which amounted to 28,611€. Plus the legal fees, so this client receives back more than they originally paid. The infringement was again for a contract in perpetuity, longer than 50 years, so again another untruth told by Anfi that their contracts are legal!

Also we must ask about the recent Anfi vote, which asked members to vote for new contracts which comply with the law, it goes against what the CEO and the writer of the email state, that their contracts are not illegal.

Follow the links below for previous articles on this vote.

http://insidetimeshare.com/anfi-sgm-what-are-they-up-to/

http://insidetimeshare.com/anfi-special-general-meeting-vote/

In the article on the last link there are figures that were supplied to Inside Timeshare that show payouts, cases won, closed and ready for execution. We leave it to you the reader to decide what the truth is, we already know.

truth

Friday’s Letter From America

Another week over and another Friday Letter From America from our intrepid travelling writer Irene Parker.

Before we go to Irene’s article, a little news from Europe, we begin with the never ending successes of the lawyers at Canarian Legal Alliance, we begin with an announcement  which came in after publishing last friday’s letter. The Court of First Instance N1 in Arona Tenerife found for the CLA client against Resort Properties / Silverpoint, declaring the contract null and void, this was on the basis it was for floating weeks.

CLA Logo

These contracts according to the Supreme Court are illegal, under law 42/98, the contract must specify a week, date and location. The judge in the case at Arona awarded the client the return of 26,000€ plus legal interest.

On Tuesday 25 April Anfi was on the receiving end of another judgement at the Court of First Instance N5 in San Bartelomé de Tirajana. In this ruling the Judge found for the clients on two infringements of the timeshare law:

  • Contract is over 50 years in duration (perpetuity);
  • It contained floating weeks.

Again the contract was declared null and void and the client will receive 39,413€ plus legal interest.

On Wednesday 26 April the Court of First Instance N5 in Arona found once again for the client against Resort Properties / Silverpoint. In this case the client has been awarded over £25,957 plus legal interest, for a contract which was for a duration of over 50 years (perpetuity).

Yesterday Thursday 27 April, CLA announce another First Instance ruling against Anfi, for a contract over 50 years in duration and the illegal taking of a deposit within the stipulated 14 cooling off period. Over £37,913 plus legal interest was awarded back to this client along with the contract being declared null and void.

It is certainly a case of the lower courts adhering to the ruling laid down by the Spanish Supreme Court in Madrid, it leaves no doubt as to the illegality of many of these contracts with case after case being won, leaving many happy ex-owners timeshare free and reimbursed with money paid.

Inside Timeshare again this week published the latest in the saga of the “fake law firm” in Tenerife, Abel Garcia Abogados, one of the many in the Litigious Abogados family. This time one lucky gentleman decided to do an internet search of this “firm”, he came across our previous articles and contacted Inside Timeshare for clarification. This has saved him from losing thousands of pounds, he also provided Inside Timeshare with the letters documents and emails he received, these have been passed to our lawyers to be included in the denuncia to the Guardia Civil.

Another “firm” was also highlighted, FHA Marketing. Very little is known about this one as there are no entries at company house and their website registrant is hiding behind a privacy service, so it is not known who is behind them. One thing is for certain they haven’t got all their facts right.

So now onto the “Travelling Writers” article.

A Reader’s Response to Nancy Callahan and our Experience at Diamond Resorts Scottsdale Links

guitar

By Irene Parker

April 28, 2017

One of our readers emailed us with a sophisticated comment in response to our article about Nancy Callahan’s extraordinary experience, unaware she and her husband had acquired a $143,000 loan to purchase 50,000 Diamond vacation points. Our reader’s comment is kind of heavy, so I’ll start by sharing our more light-hearted Friday, end of the work week comment about our Diamond Resorts, Scottsdale Links experience, post Clarity.

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

We checked into Diamond Resorts Scottsdale Links in Arizona a few nights ago. Our unit is spacious and clean. We found good value using our Diamond points in that we used 6000 points to stay two weeks at a Sedona Diamond property as well. It’s surprising how many timeshare members don’t think about timeshare math, converting maintenance fees dollars into equivalent real dollars in order to make a comparison as to whether it would be less expensive to book online.

Sometimes it is more expensive to use points, but in this case, $.23 per point in maintenance fees times 6000 points equates $1,380 for two weeks or $98 per night. Online the cost was $112 per night for a one bedroom unit, but there was also a $13 per night fee and a 13% tax so we are way ahead. Of course, the initial amount we spent purchasing our points is not factored in. The older you are the less advantage buying a timeshare, as there is less time to make up that initial outlay.

We are not asked to attend sales presentations. It takes some convincing, but you can request that your name be taken off the prospect list.

Diamond’s new Clarity program is about accountability and transparency and respect for the customer. The program was recently launched in response to the Arizona Attorney General issuing an “Assurance of Discontinuance” which includes a toning down of the aggressive nature of the sales presentation and, most importantly, requires the sales agent not to deviate from printed sales material.

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

Diamond is certainly not alone among their industry peers in needing to improve the integrity and honesty of a timeshare sales presentation. In the case of Nancy Callahan, the agent went pretty far afield of actual policy, as explained by our reader.

I found only one lapse in transparency at Scottsdale Links. Of all places, it occurred at the activity center! I had asked activity representative Brandy if there were any good activities this week. “You’re in luck!” said Brandy. “We have a cowboy guitarist and singer tonight”.

The cowboy singer was Wally Bornmann. Wally started his performance singing Cowboy songs by composers no one, out east anyway, would ever recognize and worked his way up to Gene Autry. He peppered his songs with cowboy stories like when Gene Autry paid $5 for the lyrics of a song when he was traveling cross country that became famous. “It may not sound like a lot, but at $1.67 a mile, it wasn’t bad pay at the time,” explained Wally.

“Do cowboys use Facebook?” I asked.

“I don’t know,” responded Wally.

“Aren’t you a cowboy?”

“No”, said Wally. “I know a lot of cowboys, but I would be at best a cowboy looking in. I have great respect for the work a cowboy does. Only Diamond Resorts calls me a cowboy.”

As a Diamond Resorts member Advocate, I reported this lapse in transparency to Brandy.

“Wally isn’t a cowboy,” I explained. “There’s no need to call Wally a cowboy”. What Wally is, is a gifted “Cowboy Song Artist and Exceptional Storyteller.” Wally played a song he wrote that made me cry, ‘Till Morning Comes Again”.

https://www.youtube.com/watch?v=w-XBdDT-GiU

https://www.youtube.com/watch?v=aEVzayDyZo4

Fishin’ for Chickens was written by Hobo Jim, the Official Hobo of Alaska!

We have a lot of European readers. Arizona is a real special state that is now more Diamond member friendly thanks to Clarity. Next time our overseas friends hop over the pond, consider Scottsdale Links in Scottsdale and then head up to Red Rock Country in Sedona just south of the Grand Canyon. It’s our favorite place to hike.

The moral of my story is that Diamond has a product and if sales agents would stop overstating availability, understating maintenance fees and loosen the restrictions on secondary points so an owner could sell the darn thing if they had to, through a member of the Licensed Timeshare Resale Broker Association, members would stop complaining so much.

Now on to our Reader’s Response

group table

It is very disconcerting to see that the unfair, unethical and misleading business practices described by these Diamond members’ experiences are not isolated incidents. It is clear that it has become endemic of the entire accepted Diamond sales process, as well as with other timeshare companies.

The misrepresentation of the ‘Legacy’ program as a ‘resale’ option when it is merely a way to ‘share’ a block of points with other family members, the embellishment of the value of points earned through the Barclay Credit Card, including how many points are actually earned, what they may be redeemed for (for example, NONE of the down payment for the purchase qualifies) and the false representation of the amount that may be applied to the maintenance fee.

In addition, the common representation that points have a “Currency Redemption Value” is being made by every ‘successful’ Diamond Sales Agent and is expected by the managers of the business unit. Basically, the actual benefit described in the Member Directory allows a member to redeem “up to 30%” of annual points towards, “up to 30%” discount on travel rewards.

Specific rewards have their own restrictions, limitations, terms and conditions however; what the sales reps are telling customers is that they may redeem their points for .30¢ per point. They tell customers that using this formula that with 50,000 points they can get $15,000 back EVERY YEAR! They use this to upsell, as with these unsuspecting customers in this article; that they will be able to pay ALL their maintenance fees and costs and that actually buying more will cost them less.

It would be bad enough if this were a case of a few outlaw sales reps pitching heat, however; this is encouraged by the industry. Sales agents are coached and compelled to present the product this way and reprimanded, ostracized and eventually terminated for NOT ‘going along with the program’.

Accurately presenting the product leads to lies being discovered by the customers that they were ‘pitching this heat’. It is absolutely disgusting to me that a product that promises to deliver quality family vacation experiences is sold with such reprehensible disdain for honesty and integrity.

Inside Timeshare wants to thank our industry insider for explaining what the Legacy program is and what it is not. Sometimes we hear so many versions of a program we don’t know what to believe.

honest

If you have a question or concerns about Diamond Resorts or any timeshare, contact Inside Timeshare or one of our Advocacy Groups.

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/

So there we are, another week over and more news from the murky world of timeshare.

If you have any comments or question about any of the articles published or have been contacted by any company highlighted, contact Inside Timeshare and we will point you in the right direction.

Have a great weekend and to Irene, enjoy your vacation.

weekend02

 

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