Browse Tag

Litigious Abogados

flags

The Tuesday Slot

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

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

amador-galeca-300x191

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

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

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

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

Now on with this Tuesday’ article from Irene Parker.

Timeshare Lending Decisions

As Compared to Prenuptial Agreements

AB

By Irene Parker

October 10, 2017

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

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

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

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

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

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

Should timeshare buyers ever consider third party lending?

Savage

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

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

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

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

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

Respectfully,

Mike Finn

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

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

Can we stop unethical timeshare business practices?

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

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

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

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

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

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

we can help

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

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

globe flags 2

        

 

letter from america

Friday’s Letter from America on Thursday

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

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

beer

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

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

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

contribute

Update from Europe

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

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

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

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

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

stop think proceed

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

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

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

Canarian Legal Alliance and Inside Timeshare

The meeting of minds

Irene with CLA
Irene Meeting with CLA Staff Sept 2016

By Irene Parker

October 5, 2017

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

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

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

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

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

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

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

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

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

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

admin lady new

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

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

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

Charles Irene

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

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

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

globe

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

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

Have a great weekend

cartoon-airplane

Hello monday

Start the Week

Over the weekend Inside Timeshare received an email from Javier Correa Guimerá, a Spanish lawyer who at one time worked with Miguel Ceballos the senior lawyer from CLA. Javier posts on various forums answering many question on timeshare matters.

His email referred to the articles published last week on the new fake law firm Amador Galeca Abogados, part of the Litigious Abogados family. He was commenting on the very strange names these so-called law firms use for their lawyers, he states they are not even Spanish, just by seeing the names he is sure it is a scam.

Another point he made was about the directors pleading guilty, asking where in this world would a timeshare company accept responsibility, willingly and pay up? He called it Absurd and nonsense!

In this we must agree with him, we have never heard of any timeshare company accepting any responsibility or pleading guilty, quite the contrary, they always seem to deny any wrongdoing. All we can say is Inside Timeshare has made extensive enquiries about all these firms, searched for the lawyers, checked the cases with the courts and not one has proved positive.

FAB Timeshare Resales

fab

Over the past months we have been running articles which have highlighted the lack of a resale or secondary market on many timeshares, today we look at Marriott.

In Spain there is a company called Fab Timeshare Resales, it is a subsidiary of Fab Property based in Marbella on the Costa del Sol, the Managing Director is Julie Bett, who is an ex-regional director of sales for Marriott. According the website she has over 17 years experience in the timeshare industry.

The company was formed in 2012, the purpose was to help private individuals who wanted to sell their Marriott Vacation Club memberships, because MVC did not have a resales section for their European Resort members.

FAB Timeshare Resales also state they are fully registered and approved, operating under strict European Timeshare Guidelines. They also boast being members of the Licensed Timeshare Resale Brokers Association (LTRBA which is a US body) and ARDA (American Resorts Development Association).

This is quite commendable, a resale company that is working by the rules, especially with the reputation resale has in Europe. The only problem, is one of price!

price

Looking at their website memberships are being offered for as little a 1000€, way below what was originally paid. According to Marriott’s own website, prices start at around $21,000, or about 17,000€, not a cheap purchase.

It is not just Marriott which has this problem, look at any resale prices, those which are priced higher are what the owner believes they can get (or want) for their timeshare. The reality is very different, ebay shows many timeshares listed with the owners unable to give them away, even when they are willing to pay the transfer fees.

Many sales agents during their pitch will talk about the timeshare being property, which as we know, property goes up in value, but all they are actually getting is a right to use. The purchaser owns nothing!

For years timeshare was sold as an investment, even though the timeshare directives set by the EU stated it should not be sold a such. This has actually in one respect given rise to the resale problem, purchasers have in their minds the price they paid and then the “promise” of it going up in value. Many of the bogus timeshare resale companies played on this, offering ridiculous prices just to draw the prospective seller in.

The fact there is a resale company out there which is working to the rules is commendable, but the prices reflect only only one thing, that what you purchased in the first place is nothing but promises, there is no actual value. All you own is a right to use some very lovely properties.

If you have any questions or comments about any article published, then contact Inside Timeshare and remember to do your homework before engaging with any company.

stop think act

consumer alert

Litigious Abogados: Another New Name to Add to the Family

amador-galeca-300x191

Yesterday a new name to the ever growing Litigious Abogados family was named, Amador Galeca Abogados, the website was born on 18 July 2017, so is only two months old. Yet according to their website they have over 15 years presence on the net, and they claim to have been a law firm for over 25 years.

amador-malodan-galeca-243x300
Amador Malodan Galeca

http://amadorgaleca.com/

The owner registration details are privacy protected but the site is registered by GoDaddy.

https://www.whois.com/whois/amadorgaleca.com

The website is exactly the same as all the others that have come before, the only difference is in the photographs and names of the lawyers. This new website now shows some new faces with names that are either variations of previous ones or newly made up.

simono-maenga-arlovas
Simono Maenga Arlovas
manuel-pralge-namblib-300x300
Manuel Pralge Namblib
balthathar-hirmod-nisbelam-300x300
Balthathar Hirmod Nisbelam

The address they give on the website is very familiar as it has been used before, Calle de V. Sanz, N14, 16, 38002 Santa Cruz de Tenerife, (it is actually Calle de Valentin Sanz). Number 14 does have a plaque on the wall by the door for an Abogado, but it is not this one here. (We just wonder if this lawyer knows his address is being used).

They use a freephone number: 0800 802 1223 and the email address: galeca_ukclaims@consultant.com

We will hazard a guess here, but we suspect that the story is going to be along the lines of all the other members of this fake family, your timeshare company or resort is about to be taken to court, for a fee you can also be included in this case. We wonder if the Procurador, who will need to be paid, is one of those we have seen before, or whether a new name will be used, no doubt that will be answered within the next few weeks, as other readers contact us with new information.

If the past antics are anything to go by, within weeks of paying the money, the “client” will receive a fake copy of the court sentence, along with a photocopy of a Banesto cheque with the awarded amount printed with their name on it. (Remember Banesto has not existed since 2012).

Compensation_Cheque-page-001

There will also be an accompanying letter stating in English that the director of the company pleaded guilty to all charges, (anyone fancy a wager that it will be Keith Baker or Keith Balker). You will then be asked to pay 21% of the awarded amount as tax to have the cheque released, which will arrive by post. Only problem is that it will never arrive, the envelope will be open, a letter from the court will be there but no cheque.

Now we go to stage three of this very clever operation, you will receive from another company a letter stating they have been appointed by the court, they are to investigate a Romanian gang who stole and cashed a cheque with your name on it. They will also pursue the bank to recover the money for you, you only have to pay them 10% of the cheque value. As we say this is a very clever ongoing sting. So far we don’t yet know what happens next, we have not come across anyone who has made it to stage four. But we do suspect that in order to get the money that has been recovered, another “TAX” will need to be paid.

These claims always sound fantastic, the amounts of money they promise you and in such a short space of time are designed to play on your emotions, then slowly drain away all your money before you realise what has happened.

Our only advice is if you are contacted by any company that tells you a case is about to go to court against your timeshare company or resort, then with a fee you can be included,

STOP, THINK AND DO YOUR HOMEWORK.

homework

If you are unsure how to check any company that makes these promises, or just need confirmation, contact Inside Timeshare and we will point you in the right direction.

Join us tomorrow for another Friday’s Letter from America with Irene Parker, along with some news from Europe that is just breaking.

Follow the links for the whole Litigious Abogados story.

http://insidetimeshare.com/a-narrow-escape/

http://insidetimeshare.com/go-abel-garcia-law-firm-always-wins/

http://insidetimeshare.com/litigipus-abogados-family-gets-bigger/

http://insidetimeshare.com/litigious-abogados-showing-charity/

http://insidetimeshare.com/abogados-abel-garcia-new-member-litigious-abogados-family/

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

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

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

http://insidetimeshare.com/litigious-abogados-plot-thickens/

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

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

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

 

midweek

The Mid Week Slot: Another New Name along with an Article by Michael Kosor

During our usual morning search of various websites and forums, we came across this from Mindtimeshare, it is our old friends Litigious Abogados with a new name to add to their ever increasing family.

amador-galeca-300x191

Amador Galeca is the new name to look out for, the address is one that has been used before with one of their other incarnations:

Calle de V. Sanz, N14, 16, 38002, Santa Cruz De Tenerife

With the freephone number: 0800 802 1223

Email: galeca_ukclaims@consultant.com

Website: http://amadorgaleca.com/

They also have some new names, which are variations of those that have been used before, and what looks like a few new faces in the photographs of the “lawyers”.

amador-malodan-galeca-243x300
Amador Malodan Galeca

Once again it is going to be the same old story, we are taking your timeshare company to court, it is scheduled for trial within the next few weeks, pay ex-amount and be part of it. Then suddenly you are told you won, as the director, (we’ll bet it is Keith Baker or Keith Balker again) has pleaded guilty.

We will be publishing a fuller post on this when we have done a little more research.

On the subject of legal action against timeshare companies, those lawyers at Canarian Legal Alliance have once again got another result from the Supreme Court. That now makes 58!!

This one from reports is against Silverpoint, with the court declaring the contract null and void with the return of over £63,000 plus legal interest and legal fees. They also had another win against Silverpoint at the Court of First Instance in Tenerife. Again the contract was declared null and void and the return of over £59,000.

So now on with the article which was supposed to have been published in last Friday’s Letter from America.

Timeshare and Asset-Backed Security Products

cash

By Michael Kosor

September 20, 2017

There has been an increase in defaults for some timeshare companies concerning timeshare loans packaged in their Asset-Backed Securities (ABS) products. The average consumer will recall the devastation its sister security, the Mortgage-Backed Securities (MBS), created that triggered financial collapse. Consumers and regulators should pay attention to the timeshare product today so similar to the products of 2007 that led to financial devastation.

I believe this is clearly and directly related to the increase in litigation by these particular developers, targeting consumer advocates and the legal community. While there definitely are attorneys practicing questionable business practices, “Kill all the lawyers” is not the answer. Every citizen has a right to legal representation if they feel they have purchased a product sold by deceit.

Developers are rightly hypersensitive to any bad press that points to increases in loan defaults as they are sure to negatively impact ABS rating/pricing. The ABS product and the associated market are by nature complicated, not part of our public market system, so limited to sophisticated players. As such, it is not a part of mainstream news. To that end, watch a very short video published by Allison Bisbey, Editorial Director, Capital Markets Newsletter.  

https://asreport.americanbanker.com/video/diamond-resorts-abs-under-pressure-from-companys-sales-tactics

Some developers are experiencing an elevated level of defaults. In the case of Diamond Resorts, it has reached a point the rating agency for DRI, KBRA (Kroll Bond Rating Agency) recently saw fit to issue a note on the issue, albeit not surprisingly, a reaffirmation of KBRA’s original rating.

https://www.krollbondratings.com/announcements/3705

A timeshare ABS is a security whose income payments, and hence value, is derived from and collateralized or “backed” by a pool of underlying assets. Contrary to popular opinion, “hard” assets do not serve as the primary collateral – only the contractual obligation to pay. However, hard assets do provide secondary security and impact overall price/return.  

Today, the vast majority of timeshare loans are not backed by any real property interest. Timeshare ABSs sold today are little more than securitized consumer loans. Yet when I talked to the Moody analysts just a couple weeks ago about their most recent Wyndham ABS rating, they stated they use criteria established in 2003 – when a timeshare loan was typically still attached to a real estate interest.

In rating an ABS, comparisons with historical loan default rates are critical. Timeshare ABSs, notably a different underlying product than the one packaged today, report very limited/zero defaults.  This is not because the consumer default rate is or was low – to the contrary. Rather, DRI (not unlike Wyndham) uses ABS structure options allowing them to repurchase or substitute all of its defaulted loans. As a result, the ABS reports defaults as 0% while actual consumer defaults are much higher. (Note a 6% – 8% default rate for “aged” loans is informally used, if any pre-option rate is reported or available at all). Aged loans have a proven repayment history of 6 months or more. The “aged” number does not include what is certainly a much higher total consumer default percentage of timeshare loans when early defaults are included.  

The repurchase and substitution option in an ABS is typically capped at around 15% of the total. More importantly, the rating agency should not (but appear to nonetheless) give credit to the option to repurchase or substitute defaulted loans. Gross loss expectations are increasing also. It is reported in the investor literature as 11 – 12% in prior years to 13-14% today; dangerously close to underwriting limits.  

Wyndham and DRI would like its debt investors to believe the increase in defaults is due to an uncharacteristically high number of borrowers being solicited by lawyers and “scammers” offering to get consumers out of their timeshare. Thus, we see the rise in Cease and Desist letters and litigation targeting consumer “friendly” legal providers.

What is more, ABS investors, thus the developers selling timeshare ABSs, are hypersensitive to cash flow. Admittedly a bit desensitized since 2007, they will nonetheless respond when issues or news challenge a specific ABS or a class of ABS, such as timeshares.

Timeshare regulators (assuming any exist and/or pay attention) also need to be reminded that in 2007 investors experienced losses because they made decisions on bogus ratings, guarantees from mono-line insurers, and a blind faith in historically real-estate prices.  Simplistically, people ignored the quality of the contractual cash flow, relying instead on history (home price appreciation in the case of the MBS). This sounds analogous to timeshares today.  

With the rise in Social Media, timeshare members are more and more expressing increased owner unrest, disturbed by a rise in consumer complaints, as evidenced by Mark Brnovich’s issuance of Diamond’s Assurance of Discontinuance AOD fueled by over 900 consumer complaints. Is anyone paying attention?

I spoke to a Wyndham executive last month at my VOAs annual meeting. He saw this issue as a problem caused by lawyers seeking timeshare members and a major problem. With an aging population of original buyers who no longer want or need their timeshare, many don’t know where to turn when there is no secondary market and the contract is perpetual.

On a similar line, most all ABS, to include timeshares, are supported by significant “credit enhancements” to protect the investors from higher than anticipated (historical) default rates. Overcollateralization (issuing less debt than total assets held) is a particularly valued credit enhancement technique used. However, overcollateralization becomes tricky, even suspect, when the assets held by the seller have no explicit face amount/market established price as with the non-viable timeshares resale market. My impression is most agency raters, while sophisticated financial types, are not educated on the underlying change of the timeshare product pool being securitized, as most are reliant on the developers for their information and understanding.

Finally, as I noted earlier, reported default rates are zero. As a result, most rating agencies, I argue to retain clients, and many investors, dependent on industry reporting, do not dig any deeper. Both sides see no news as good news – once again analogous to the 2007 mortgage back securities fiasco. This needs to change.

risk1

Thank you Michael, not being of a financial mind, the article has been a bit of an education, I just didn’t know these things went on.

There we have it, look out for the article on Amador Galeca, more important beware of any calls or emails promising that you have money waiting for you. The truth is you haven’t, all they want is your money, so stay safe, keep your money in the bank and do your homework before parting with it.
homework kid

end month

End of August Roundup

Considering August is usually a quiet month with all the holidays, Inside Timeshare has had quite a run on articles. We began August with news on the Tauro Beach Project entitled “Tauro Beach: In the UK News”.

This followed the publication of a story in The Guardian, a UK newspaper, on the importation of the sand used to build the beach, from Western Sahara. The article by Anders Lundqvist and Rowan Bauer, two independent journalists who investigated the possible illegal importation of the sand.

They explained that if this sand did originate from the Western Sahara, which it most certainly looks like, it was against UN Resolutions and rulings from the European Court of Justice. In their article they quote the head of SEPRONA in Gran Canaria, Lt Germán Garciá who stated “The sand was brought illegally, it was discharged with no control at all,” we know this has caused concern among environmentalist on the Island, as there is a protected area just 300 meters off the beach.

gc-seprona

For the full story follow the links at the end of this article.

The following day we published the Mid Week Report, this started with the news that TATOC had truly gone as their website is no longer accessible. It was then followed with a link to The Canary News, an English language newspaper based in Gran Canaria. The Canary News article by Ed Timon, the editor, gave a very good insight into the history of Western Sahara, which was the subject of the previous article.. (Again see links below).

We also published the first article of the month from Irene Parker, from our US branch, this was to do with a lawsuit in the US by Welk Resorts against Timeshare Exit Team. This is the first in a series of articles highlighting lawsuits by timeshare developers against resale / exit companies and law firms.

Loyalty: No Such Thing in Timeshare was the title of the next article. This highlighted Timeshare Compensation’s blog on Silverpoint now known as Signallia. In this blog Timeshare Compensation warns its readers of the “dodgy” past of this company, which was very surprising indeed as the owner of Timeshare Compensation, Mark Rowe, is an ex-senior sales manager of Silverpoint and thereby employee of Robert “Bob” Trotta, as well as colleague of the CEO Mark Cushway. Told you there were some strange things in the world of timeshare!

loyalty1

In our first Friday’s Letter from America for the month, we published the article by Eron Grant, this covered the question of why does ARDA have a code of ethics? One question we have also asked of the RDO.

Once again that family of fake law firms in Tenerife came up, yes you know the ones, Litigious Abogados.

Another new contributor from the US made her debut, Bonita Hill. Her article was on the question of Diamond’s Clarity Programme, regarding the Oral Representation Clause. This was launched in response to an Assurance of Discontinuance issued by Arizona Attorney General Mark Brnovich. Diamond has stated they intend to go beyond the requirements of the AOD.

We then published “Truth, What is Truth?” This was in response to readers enquiries about Anfi denying losing any court cases. This has caused confusion among members, after all these cases have been publicised in the press, yet Anfi tell everyone it is not true! So who do you believe?

In the next Friday’s Letter from America, we published Part 4 “Our DRI Misadventures” by David Franks. He Joined our team of writers from the US, some months ago and has given us a great deal of fun. He certainly has a style of his own and is a welcome member to the team.

We then started our “Hug Your Haters! A Customer Service Message” by Irene Parker, this is based on the book Hug Your Haters by Jay Baer. He is to be a keynote speaker at the Interval International Shared Ownership Conference to be held at the Miami Beach Eden Roc Hotel October 23 – 25. Mr. Baer has advised more than 700 companies including The United Nations and 32 Fortune 500 companies.

Next came the news of a story we published last year, it involved The Manhattan Club in New York. The NY AG Eric T Schneiderman had suspended all sales at the club back in July 2014, this followed many complaints of deceitful practises. The case is now finally over, with a settlement of $6.5 million, also the owners are being forced to sell and have been barred from participating in the timeshare industry. Well done Eric, one for the consumer!

Attorny_General_Eric_T_Schneiderman
NY AG Eric T Schneiderman

Once again Karen Garello from our Timeshare Advocacy, contributed another “Secret Shopper Report”. In this article, Karen gives sound advice on the questions you should ask when going on a sales presentation. Following her advice could save a lot of problems in the future.

It was back to Europe for our next piece, this was titled “ Timeshare In the Press”. This was actually very timely as it followed on from the Truth What is Truth article, it was based on the article in the Spanish paper El Diario. It highlighted the Supreme Court rulings, mainly against the Tenerife company Silverpoint, who just like Anfi deny any cases going to court or being lost.

It also included the article published in The Canary News, based on the one from the paper La Provincia, this began with a recap of the groundbreaking first Supreme Court ruling back in March 2015. Again throwing out the claims of the timeshare industry that these are all fictitious cases.

There followed a couple more articles by Irene Parker and a Timeshare Advocate. The first highlighted the  lawsuits between developers and law firms, the second was an open letter to the timeshare industry. Whether they take any notice is another thing.

In The Monday Briefing, we again focused on the Litigious Abogados family, giving a recap on how they operate their rather sophisticated scam, but also some sound advice which if followed will protect you from becoming one of their victims.

In the same article we welcomed and wished all the best to a new forum for timeshare owners, Timeshare Users Forum. This has been set up by disgruntled members of Timeshare Talk, a previously independent forum. We won’t go into detail here, but you can read the full article.

The last article for August was Part II of Hug Your Haters: A Customer Service Message.

So that is it for August, tomorrow we don’t cross the great lake to the US, we go to the land down under, for another Letter from Australia, contributed by Justin Morgan, on the role of private equity and the secondary market in timeshare. Do join us and bring your didgeridoo!

didgeridoo

Links to some of this month’s articles.

http://insidetimeshare.com/tauro-beach-uk-news/

http://insidetimeshare.com/tauro-beach-latest-development/

https://www.theguardian.com/world/2017/jul/28/trouble-in-paradise-the-canary-island-beach-accused-of-illegally-importing-sand?CMP=share_btn_fb

http://insidetimeshare.com/loyalty-no-thing-timeshare/

http://insidetimeshare.com/truth-what-is-truth/

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

http://insidetimeshare.com/manhattan-club-6-5-million-settlement/

http://insidetimeshare.com/fridays-letter-america-16/

http://insidetimeshare.com/timeshare-in-the-press/

http://insidetimeshare.com/legal-news-us-castle-law-group-pc-v-timeshare-developers/

 

mond

The Monday Briefing

Well, here we go the start of another week in the world of timeshare, over the weekend Inside Timeshare has received numerous enquiries regarding companies offering a variety of services.

One reader who unfortunately has been taken in by Armando Gareca Abogados and the Litigious Abogados family. They have paid Ricardo Sannino a substantial amount of money, they have since tried to contact them by telephone, but the number is out of service. Not a very good sign.

number no longer in service

To recap on how the scam works, timeshare owners are contacted usually via email and informed that a case has been filed at court against their timeshare company / resort, they can be included in the upcoming case (usually within the next few weeks). They are told how much they will receive and when this will happen, in order to have their case included in this prosecution, the procurator fees must be paid. This will be around 10% of the amount being claimed.

Within weeks, you receive confirmation that your case has been successful, that the Director, usually a Keith Baker or Keith Balker, has pleaded guilty. This name has been used as the director of the following companies:

Diamond; Club la Costa; Resort Properties / Silverpoint; Incentive Leisure Group / Designer Way Vacation Club, Club Class Concierge and several others.

Not bad really, the same person acting as director for many rival timeshare companies, who also pleads guilty to every case!

Part of the confirmation that you have been awarded this substantial amount is a copy of the “court” order verifying the amount and a copy of a cheque with your name and the amount on it. The problem is the cheque is made out on a Banesto cheque, this bank no longer exists, it was taken over in 2012 by Santander, who subsequently removed all Banesto logos and name from all cheques cards etc.

Compensation_Cheque-page-001

To receive this lovely amount, “tax” needs to be paid, this is around 21% of the awarded amount. This once again needs to be paid to the Procurador, before he can release the cheque.

So once you have paid this fee, you then receive an envelope by post, but surprisingly it has been opened, document from the court is there, but the cheque is missing. Then comes the next phase to the scam.

You receive a letter from another company, the last one was Manuel Valentin, who states that they have been charged by the court with the task of investigating the disappearance of the cheque and retrieving your money. They inform the client that a gang of Romanians have stolen the cheque and cashed it. Not bad considering the cheque was made out in your name.

In order to do this work, you must once again pay a fee of 10% of the amount, they will then work on your behalf and retrieve this money for you. Guess what, you will never get anything back, you are now several thousand pounds the lighter.

Some facts.

  • You do not have a case at court unless you have personally instructed a lawyer to act on your behalf.
  • Cases at court will take anything from 1 to 2 years to get there, not the weeks this lot say.
  • No cases will have gone to court in August, the courts are closed.
  • No director of any timeshare company or resort is going to plead guilty.
  • Courts do not issue cheques for money awarded. Certainly not using a bank that no longer exists.
  • No company is going to be charged by a court to investigate and retrieve stolen cheques.
  • There is no tax to pay on any awarded amount, Tax would have been paid to the court when your case was filed.
  • Her Majesty’s Revenue and Customs will never be involved.
  • Unless your purchase was made in Spain, then you will not have a case in a Spanish court.

If you require any information on court procedures and payments of legal fees and taxes, contact Inside Timeshare and we will explain them to you.

Remember, before you ever pay out any money, do your due diligence and check who the company is, do not be taken in by the large sums these companies say is waiting for you. For the full story over the months search Litigious Abogados in the search box.

search

Now on with another important story, this involves TimeshareTalk, a forum of timeshare owners, which was once seen as an independent place for the exchange of information and good advice.

Unfortunately there has been some dissention among the long standing members, as we know timeshare talk was the forum set up by the TCA, a once independent consumer website. These entities were sold a few months ago to Mark Rowe of Monster Credits, Hollywood Marketing and sellmytimeshare.tv fame.

Since his takeover, TCA have been doing nothing but extolling the virtues of of Mr Rowe’s new companies, such as ABC Lawyers. Timeshare talk members have had posts and discussions removed when they mention any of this person’s companies. The forum was no longer seen as the independent place for discussion. Totalitarian Regime practices took effect, the freedom of speech and expression which was the cornerstone of this forum had been eroded.

freedom of speach

But it is not all doom and gloom, many of those long standing members have now setup a new forum, Timeshare Users Forum, to bring in those lost ideals. It is a forum open for any timeshare user to join, you will need to go on the website and register as a user if you wish to participate.

Inside Timeshare has registered and will post any information that may be of interest to users, we will also be there to answer any questions with facts, if we do not know the answer, we will find out for you or point you in the right direction.

Inside Timeshare wishes this new forum the very best, we hope that the old ideals will be resurrected and also look forward to working with the members.

Follow the link to the new Timeshare Users Group Forum

https://www.timeshareusersforum.com/

August is almost over, so come September the courts will be back in full swing and we anticipate many more announcements of cases being won in favour of the consumer. Inside Timeshare will be keeping an eye on those announcements and will publish them here.

Tomorrow we will be publishing Part II of Hug your Haters, A Customer Service Message. This is based on the book, Hug Your Haters by Jay Baer, which is apparently available at most airport book stores. It is again written by our US colleague Irene Parker. Then this week’s Friday’s Letter from America will be travelling once again to the Land Down Under, for another installment from Justin Morgan our Antipodean colleague, in Friday’s Letter from Australia, this is titled “What Role Does Private Equity Play in Timeshare?”.

If you have any comments or questions, contact Inside Timeshare and we will try to answer them for you. If you have anything to share regarding your own experiences and would like others to benefit, we will work with you to publish your story.

So that is it for today, remember to do your due diligence, doing your homework will save you a lot of money and stress.

homework

letter from america

Friday’s Letter from America

It’s Friday! Time for another Letter from America, this week one of our advocates writes an open letter to an industry advocate, Irene Parker provides the introduction, but first some news from Europe.

Those nefarious fake lawyers from Tenerife are at it again with another new twist to secure your money. This time it is from Armando Gareca Abogados, one of the new names in the Litigious Abogados family, thank goodness this reader decided to search the web before paying any money and found our articles.

armando-gareca-abogados-logo-1

This particular reader was contacted by Armando Gareca and informed that a case had been lodged with the court against their timeshare resort, not bad considering the courts are closed in August. They were informed they could become part of this case and once they paid the Procurator fees of 1,012€ the case would proceed. It all sounded very good, they were told how much they would be getting back and when they would receive it. Obviously this law firm has a crystal ball and can tell the future!

As we said the courts are closed in August, but also they have expanded their jurisdiction, the Spanish courts and these so-called Spanish lawyers now have the power to take a Greek resort to court in Spain. Not only that Spanish law is applying to a purchase made in Greece!

So just to recap, if you purchased your timeshare in Spain or any of its territories, then Spanish law will apply, if you purchased in the UK, Malta, Portugal, Greece or anywhere else in the world, then Spanish law will not apply. Also it takes at least 12 to 18 months to get a case to court, there are some lengthy procedures to go through before it gets to trial, so the promises of this particular group that the case is being heard within weeks are false.

We have also had some enquiries regarding finance for timeshare purchases arranged by the sales staff, many of these are with Barclays Partner Finance or Hitachi. Some of our readers who have been contacted by various claims companies are told that once they sign up for legal action, they will have the loan stopped and the interest repaid.

This is a false claim, the timeshare resort acted as a broker for the finance, your agreement and contract is a personal one with the finance company and nothing to do with who sold you the timeshare. If you are taking legal action against your timeshare company, the loan is a separate issue, which can only be dealt with after a successful outcome against your resort. By stopping any payments to the finance company you are then leaving yourself open to legal action by debt collectors and subsequently receiving a CCJ, or County Court Judgement. This will have a devastating effect on your ability to get any credit, even being able to get a mortgage.

So beware of many claims, these people will play on your emotions, make promises that are not there, it pays to to check and double check. Do your homework!

homework

Now we move on to this week’s Letter from America.

An Advocate’s Open Letter to an Industry Advocate

greed1

By an Advocate

Introduction by Irene Parker

August 25, 2017

The following is a letter submitted to Inside Timeshare written to a timeshare industry proponent by one of our Timeshare Advocates. The letter is in response to an article the author wrote posing the question as to whether the timeshare industry needs to look in a new direction.

The letter writer asked that he not be identified and that the title of the article not be mentioned as this was a personal letter written to the author. One thing sorely lacking is dialogue between critics and proponents of the right to use timeshare product which can be financially devastating for a family when the resort denies their release and when no secondary market exists.

Following the article I have offered comments agreeing and disagreeing with both the author of the article and the letter writer. We encourage others to weigh in.

Thank you to our Advocate reaching out to the industry. We hope he receives an answer.

QA

In your article you state, “Timeshare is definitely not a real estate investment and apart from the occasional overzealous sales associate, timeshare companies long ago stopped pitching it as such an investment.”  While I agree with your assessment that it is not an investment, I must ask, are you saying timeshares are not real estate or are not an investment?  I also read other timeshare articles you wrote. You are knowledgeable, but I believe you missed some of the key issues a potential buyer of the product needs to understand. You are not the only financial timeshare writer glossing over two important issues:

  • Timeshares have no viable secondary market,
  • The timeshare product has evolved to no interest in real property.

Consider the potential impact on the industry, or better stated, why the issues have not yet impacted the industry.

You rightly state in your article, timeshares are overpriced and there is no appreciated value in the real estate. I wish you had made it clear, that once purchased, a timeshare has no value. You must be aware of the fact that there is no viable secondary market. With little data available (the industry controls it), I find the “sale” of most timeshares on the secondary market require the seller to bring money to the transaction. That equates to a negative value.  

Recently, in an effort to avoid increasingly ugly publicity, many of the largest players are offering a “give back” or “surrender” option to older owners, not actively using or able to use their timeshare, provided the associated home facility is viable and the product is fully paid. These guys are such good sales people they have actually been successful in improving their image, offering certain members in select properties the opportunity to give back their timeshare to the developer with nothing in return other than to escape their burden. The timeshare interest they bought for $20K to often well over $100K is given up for nothing so the developer can resell as new.  

The non-viable secondary market environment is no accident. It certainly is not caused, as ARDA would have you believe, by an oversupply of inventory, or the result of advocacy groups and “sell your timeshare” type organizations that illegally prey on owners. ARDA has long acknowledged the lack of a viable secondary market and has for years committed to fix it. While out of the public eyes, ARDA does nothing, even works not so secretly against efforts to raise a secondary market.

I am sure you have read industry 10Ks. In most every 10K I have read for the past 15 years, the existence of a secondary resale market would have a significant negative impact on developer earnings. It’s no surprise the industry is active in suppressing the market to eliminate their perceived risk. I just wish our consumer protection guys, wherever they may be, would mandate the same level of discourse for the individual timeshare buyer.      

I also wish you had not implied a timeshare interest is necessarily tied to a real property interest (and again the industry should be required to disclose this to potential buyers). The classic deeded timeshare is today by far the minority of sales. Timeshare consumers buy either an interest in a “user rights” trust, not the underlying real estate, or simply buy into a timeshare “club” arguably not a timeshare at all. Many in the industry call them vacation clubs.

Please understand my criticism of your piece is meant to be constructive and more importantly, intended to spur some additional interest on your part by examining the member’s perspective. Few consumers really understand the product and/or business model. The consumer protections guys are asleep at the wheel or have no mandate/political incentive to get involved, and the industry will not speak up for fear of risking a very profitable business model born on the backs of timeshare buyers fallen victim to the oral representation clause, locked into a perpetual contract. It’s tough for the consumer or the industry to get the real picture.

Have you had a chance in the past several minutes, as you struggle through my letter, to consider my question about the implications of the issues presented?

  • No secondary market,
  • Inadequate regulation,
  • ABS markets,
  • Cash flow should the issue of a non-equity product make the light of day,  
  • Inadequate disclosure as to the lack of a secondary market.

I am right?  No?

Well, I will end now and hope you do consider the implications of what I touched on. If I have sparked any additional interest on your part I’d like to talk more. Please call or write.

Respectfully,

An Advocate

gps cartoon

I would like to add a few comments to some of the issues raised or not raised by the letter writer and the article’s author.

First, I disagree with the article’s author in his statement that only a few overzealous timeshare sales agents sell a timeshare product as an investment, as the US side of Inside Timeshare continues to receive complaints almost daily from our readers reaching out to us for assistance after they allege being sold by deceit, concealment, violation of trust and bait and switch, meeting the definition of White Collar Crime, Financial Institution Fraud. Timeshare sold as an investment, told it would be easy to resell, is still one of the top five complaints.

We always want to acknowledge sales agents and developers trying to exist in a timeshare world so ingrained in deception on the front end of the sale. The 7,000 plus timeshare members belonging to five Bluegreen and Diamond Resorts Facebooks are filled with posts concerning allegations of deceit.

Second, surrender programs are no help to the majority of timeshare members that have reached out to Inside Timeshare because these members allege they were duped into signing up for high interest rate loans and credit cards. High 25% interest rate credit cards now can pop out on site like toast out of a toaster. Multiple credit cards are often opened.

As to a secondary market, we have heralded Disney Vacation Club as a company that allows an acceptable secondary market.

http://insidetimeshare.com/mid-week-report/

This is where the letter writer and I disagree. Licensed Timeshare Resale Broker Judi Kozlowski of RE/MAX would argue Hilton also has a solid secondary market in that they don’t punish the secondary point buyer to the extent other developers do. Judi has been working the Hilton Grand Vacation timeshare resale market since the beginning of their current resale program.

“In my opinion, Hilton has the best resale market out there – the developer does not punish the resale deeded points buyer. Buyers of points on the secondary market are rewarded with the ability to join the Elite Club. They are still allowed to use the open season rates, trade internally and use RCI through Hilton.”

Third, I disagree with the letter writer in that he states ARDA has stated they want to fix the secondary market problem. I think that is old news from a 2014 RedWeek article. In recent statements, ARDA CEO Howard Nusbaum has stated timeshare is a right to use produce so members should not expect any value back. My rebuttal is that if timeshare is now defined as a country club of sorts, why is the contract perpetual? What country club is out there you can’t quit? What country club, except for the likes of Mar-a-Lago, requires an initial payment of often $50,000 or more?  What about the consumer that has turned over $50K to sometimes over $100K only to learn two weeks later they allege they were lied to as showcased in several of our Nightmare on Timeshare Street articles.

The letter writer mentioned Advocacy groups. I would like to make a distinction between real advocates and scam artists that call themselves advocates, including some law groups. We have 93 timeshare members helping other members I consider real Advocates. We also have 55 Advocates, including several attorneys and professionals, who donate their time pro bono to offer an assessment or opinion after the resort has denied the member relief.

Thank you to our letter writer and to all our Contributors. Your voice is important because one or two voices alone do not a concert make. Contact us or one of the Bluegreen or Diamond Facebook pages if you need assistance, would like to share your timeshare experience, or express your opinion.

pin up

Timeshare Advocacy Group™

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

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

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

There we have it, the end of another week and the start to what we hope will be a great weekend. Inside Timeshare thanks all those who contact us with information and enquiries, it is with your help we can bring those issues to a wider audience. Keep them coming.

Have a great weekend and join us again next week.

weekend01

clarity meaning

Tuesday Review: Clarity

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

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

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

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

Now on with today’s article.

Diamond Resort’s CLARITY™ Program

Battles the Oral Representation Clause

clarity

By Bonita Hill  

August 8,2017  

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

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

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

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

IV Assurances

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

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

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

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

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

family

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

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

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

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

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

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

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

Sincerely,

Marjorie Menacker

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

conference

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

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

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

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

fair trade

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

Hello all, thanks for your interest in our services.

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

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

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

Mike Finn

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

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

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

 

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, this week Eron Grant submits her open letter to ARDA (American Resorts Development Association), for those in Europe that is the RDO. She explains her experience at the hands of a sales agent and asks why does ARDA have a code of ethics if these agents and resorts ignore it? Very good point, the same can be said of the RDO.

First a roundup of this week. For August it has been quite a full week for Inside Timeshare considering that the courts are closed so no news on that front. We began with the ongoing story of the fake law firms in operating out of Tenerife, yes, that family called Litigious Abogados, bit of a sorry story this one.

Unfortunately, the gentleman in question didn’t find our previous story in time, he was totally taken in by the documents and smooth legal talking of this crowd. It began with the usual pitch, that his timeshare company had a case against them ready to go to court and he could be part of it. He duly paid the initial Procurador fees, then a few weeks later he got the great news that he won the case and the court had awarded him thousands in compensation, brilliant!

Now it was only a matter of paying 20% of the award to the tax man to release the money, this done he was told his cheque was on the way. The envelope arrived with the court papers, but no cheque, the envelope had been opened and the cheque missing. After contacting the “Law Firm”, another company contacted him saying the court had appointed them to investigate and get his money back, apparently this Romanian gang had stolen the cheque and cashed it. Don’t worry, we will get the money back from the bank. First you have to pay us 10% of the amount.

Compensation_Cheque-page-001

Then in what can only be described as a further insult to injury, he was told he owed the property tax on a property he owned in Spain, his NIE Number had expired plus he had outstanding fines for a traffic offence. But we can sort this out for you and get the money released, for a fee.

This has lost him thousands of pounds and has caused him great stress. So beware, it may sound good and look genuine, but it rarely is.

On Tuesday, we published the ongoing story of Tauro Beach, the flagship project from Anfi, this time it was a couple of independent research journalists, Anders Lundqvist and Rowan Bauer. In their article, published in the UK paper The Guardian, they investigated the importation of the sand for this man made beach, brought in from the Western Sahara in breach of UN sanctions and European Court of Justice rulings.

This investigation is still underway by various authorities, the main one being SEPRONA, the Nature Protection Service of the Guardia Civil.

Wednesdays article was from Irene Parker on the Welk Resorts case against Timeshare Exit Team. It highlights the dire need for a proper secondary market and a fair exit strategy for those who do not wish to sell.

In this article we opened with news that the TATOC Help Line had closed, we also published a link to a very good in depth report on the importation of sand from Western Sahara and a little of the history from that region. This was written by Ed Timon Editor of The Canary News, an english language newspaper in Gran Canaria.

Yesterdays article was entitled, Loyalty: No Such Thing in Timeshare, in this piece we showed that even old friends will attack each other for your money in this business. It told the story of a company owned by an ex manager of another company, who is now in the business of supposedly claiming compensation against his old employers. Unfortunately, his history and publicity is not as squeaky clean as he would like you to believe, we leave that to your judgement.

So on with this week’s letter.

Why does ARDA have a Code of Ethics?

Woman what

Members are beginning to wonder

ARDA’s Answer from ARDA’s website

ARDA and its members are committed to the highest standards and ethical behavior in vacation ownership. To demonstrate that commitment, all ARDA members as a condition of membership must agree to comply with the ARDA Code of Ethics.

The intent is that all member activities subject to the Code are designed to be honest and fair, and are conducted with integrity, dignity and propriety.

By Eron Grant

August 4, 2017

Part I – My letter to ARDA

Part II – ARDA’s Code of Ethics

Part III – List of Inside Timeshare member articles that question the Code

Mr. Clements, General Counsel and Lobbyist for ARDA,

My husband and I feel we have been deceived by Diamond Resorts International, and ask for your assistance in getting justice for our victimization.

In November of 2016 we stayed in one of DRI’s timeshare resorts in Sedona, AZ through our Interval International membership. While there we attended a DRI sales presentation. The hotel concierge gave our family of 4 a $150 gift card to a local restaurant for our thanksgiving meal, and in return we were to attend a 90-minute sales presentation. The presentation ended up lasting 6 hours, with our sales agent becoming agitated when we said we needed to leave due to my husband’s golf tee time. This violates ARDA’s Code of Ethics of “Information”.

The sales agent, Karen Calvano, empathized with us about our inability to stay in resorts unless located close to home which is in Houston, TX. She said she knew Interval International did not have many resorts in our area, but that DRI had many resorts, and we would certainly be able to find resorts in Texas, New Mexico, and Louisiana. As it turned out, DRI’s resorts in our area are owned by affiliate resorts rather than DRI and costs approximately more points than we were sold. This violates ARDA’s “Exchange Program” in which we were over promised on the likelihood to exchange for Diamond’s inventory in our area.

When I looked on the Diamond member website recently, Diamond’s Great Wolf Lodge affiliate property in Texas was available for 26,911 to 66,467 points. If we multiply 26,911 by 20 cents which is the typical cost of maintenance fees, it would cost $5,382 for a one week stay. Booking.com had the same Family Suite available for the same week for $1,700. This is not an unusual scenario. I have searched various times throughout the year.

We attended DRI’s “Event of a Lifetime” in January, 2017 which we were told was our member orientation. The “orientation” turned into a high pressure sales presentation quickly with misleading information regarding redeeming our points for 30 cents per point if we paid to upgrade our membership to platinum. When my husband, Dr. Mark Grant, asked to see the price per point in writing, the sales agent pointed to his own written notes to show us that it was legitimate. My husband pointed out the documented literature which showed the amount at 10 cents per point, and the salesman quickly dismissed us to the next sales agent.

According to the ARDA Code of Ethics, this sales agent violated the ethics standard of “Avoidance of False and Deceptive Statements”.

Mr. Clements, as you can tell from the brief account I have written, we are in a rough situation with devious minded people who have not followed ARDA’s Code of Ethics, and should therefore be forced to let us out of our contractual agreement.

We appreciate your consideration, and assistance!

Sincerely,

Eron Grant

Response from Diamond

I am responding to your concerns regarding availability in Texas and Louisiana. While Diamond Resorts does not own or manage any properties in these states, we do have affiliate agreements with several resorts. These properties offer us limited inventory each year to offer to our members to book with their points. Inventory is typically limited, and prices are set by the properties themselves, and not by Diamond Resorts. These properties are offered on a first come, first served basis in addition to the Diamond Resorts properties covered under your contract.

Diamond Resorts does offer a property in New Mexico, the Villas de Santa Fe. If you would like assistance booking at this property, please let me know and I will be happy to assist.

My Response

My concerns with Karen Calvano stating “DRI has several resorts in TX, LA, and NM” is that when we asked her to show us the properties she said, “Oh we can’t do that right now, but we can do that later.” After 6 hours of being with her, we were exhausted and never did see the properties.

We explained that we are owners with Marriott and members of Interval International already, so affiliate properties through DRI really don’t help us. Plus, the value of your affiliate properties is ridiculous. How does this help us?

questman1

I would like for Mr. Clements or someone at Diamond to explain to me why this does not meet the definition of White Collar Crime: Deceit, concealment, violation of trust and bait and switch. In my opinion, there is no doubt what we were offered and what we received meets this definition and violates ARDA’s Code of Ethics.  

Ethics Code of the American Resort Development Association

adopted by the Board of Directors April 7, 2014

  1. General Ethics Standards.  
  1. Disclosure.

With respect to the sale, resale or marketing of a Vacation Interest, the Member shall:

  1. Provide fair, meaningful and effective disclosure to the consumer regarding the Vacation Interest and all material terms and conditions of the offer of a Vacation Interest.
  2. Provide fair, meaningful and effective disclosure to the consumer of all material terms and conditions of all other products offered contemporaneously with the Vacation Interest, including exchange programs, incidental benefits, financing, short-term products and exit programs.

The Full Code: http://www.arda.org/ethics/

audience

Note from Irene Parker

Inside Timeshare has received complaints from many angry timeshare members, including Bluegreen members. Here are just a few of the many members who have contacted Inside Timeshare wanting their voices heard.

This is our DRI Advocacy Facebook page which respectable sales agents and corporate personnel are allowed to join. We hope the folks at Diamond, Bluegreen and ARDA will take the time to read member stories. We promise you will learn a lot.

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/

Member articles

Michael Nuwer and Justin Morgan

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

Alan and Debbie Callner

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

Detective Lela Renea a Bluegreen member

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

David Franks Chapter 2 (Chapter 4 upcoming)

http://insidetimeshare.com/fridays-letter-america-10/

Karen Garello Secret Shopper June 22, 2017

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

Romeo and Lily

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

Dr. Jeffries

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

Angela Johnson

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

Neina Orrillo

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

Barclaycard and Member stories May 17 2917

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

Marjorie Menacker

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

Eron Grant May 12, 2017

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

Nancy Callahan April 24, 2017

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

Betty Burmeister and a Filipino Family April 13, 2017

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

Laurie Sabbagh Secret Shopper March 17, 2017 Clarity Review

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

A Military Family March 6, 2017

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

The Hurleys January 25, 2017

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

Irina Allen January 13, 2017

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

Kathie Old December 6, 2016

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

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

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

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

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

Sylvia Saldana and the Barclaycard October 25, 2016

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

right wrong

Thank you Eron Grant and Irene for this weeks contribution, these are your stories, they are published so you know what is going on in this murky world called timeshare. If you have a story you would like to share or have any comments Inside Timeshare would love to hear from you.

If you have any questions or even need to know if you are dealing with a possible “scam” company, get in touch with us. Even if we don’t know the answer straight away we know where to look and can point you in the right direction. Remember it is better to be safe than sorry, doing your homework is essential, even more so in today’s timeshare world.

So it only leaves us to say, it’s Friday, have great weekend.

fridaycat