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Monarch

Friday’s Letter from America

Today’s Letter from America by Irene Parker replaces the one that was originally scheduled, that article has been pulled as the company it revolved around has made a settlement in favour of the client. This is a result of the article being sent to the company for comment before publication, we just wish this happens more often.

A Disconnect between Wall Street and Main Street

Three more Seniors Driven into Timeshare Foreclosure

ILG’s stock rose about 5 percent on the news of the deal, while Marriott Vacations — paying $14.75 in cash and 0.165 of its own shares for each ILG share — slid 9.2 percent.

https://www.reuters.com/article/us-ilg-m-a-marriott-vaca/marriott-vacations-buys-ilg-in-47-billion-timeshare-merger-idUSKBN1I10ZX

Apollo Global Management (NYSE:APO) plans to take Diamond Resorts public, according to The Wall Street Journal

Sources indicate that Apollo is seeking a valuation of close to $4B for Diamond Resorts

https://seekingalpha.com/news/3347179-diamond-resorts-files-confidentially-ipo

May 11, 2018

Meanwhile, Introduction by Irene Parker

Inside Timeshare advocates on behalf of Active Duty military in danger of losing their Security Clearance due to timeshare foreclosure. Currently there are five battling this worry, including three members of the Navy, one Homeland Security agent, a defense worker, and a military paralegal. Veterans, from the ages of 28 to 83, including a double Purple Heart recipient, have reported allegations of timeshare fraud on the front of the sale, and difficulty selling timeshares they no longer want or can afford. Several of our veterans are combat disabled.             

Phyllis, Shirley and Marcy would like to share their timeshare experience to warn other seniors. All allege they were a victim of Elder Fraud. Shirley paid one of those “Get out of your timeshare” companies money to get out of her timeshare contract, only to be foreclosed. No one needs to pay anyone to be foreclosed. Now she is being taken to court by Barclays because her purchase was charged to a Barclay credit card. Marcy was called by another “Timeshare Exit” company. The caller said he was an attorney and told her the timeshare company would take her house and her Social Security benefits if she did not pay him $2900.   

The Consumer Financial Protection Bureau helped Wells Fargo victims when Wells Fargo agents opened bogus accounts. With the roll back of the Dodd Frank act, enacted to reduce mortgage lending abuses evident during the subprime mortgage debacle, happy freewheeling lending days may be here again for timeshare developers. Sources tell us there are few if any CFPB investigations.

Many of the complaints we have received are from timeshare buyers who tell us they had no idea credit cards had been issued and were told charging purchases to their Barclaycard would pay for their maintenance fees. Typically, around 1% of amounts charged can be credited to maintenance fees. Others were not even aware they had purchased a timeshare until they returned home.

Perpetual timeshare contracts, some with little to no secondary market, are signed via a tablet, technology foreign to some senior buyers. Seniors may be less comfortable with electronic tablets used to sign timeshare documents, but even those comfortable with tablet technology have reported it is more difficult to review documents on a tablet. Sales agents demand the buyer buy the same day the offer is presented with little time to review documents. Most report exhausting sales sessions that are aggressive and often last several hours.     

Inside Timeshare has received 421 timeshare complaints from our readers. Given we have received so many stories resembling Phyllis, Shirley and Marcy stories, Timeshare Advocacy Group is embarking on a nationwide media campaign to warn the public not to buy a timeshare without talking to their financial advisor, an attorney, or a member of the Licensed Timeshare Resale Broker Association. http://www.licensedtimeshareresalebrokers.org/

As a former stockbroker, I have nothing against great wealth. I wish we all had the foresight to grow old with Bill Gates and his stock price, but enormous profits gleaned by predatory timeshare sales and lending, coupled with timeshare exit scams has devastated the lives of hundreds of families, according to our readers, who did not understanding the nature of the developer based timeshare contract. Better Business Bureau reports, AG investigations, DOJ reports, and lawsuits galore support the argument that dream vacations can easily turn into a nightmare. As always, we know there are timeshare sales agents trying to sell honestly and many who are happy with their timeshare.  

Having followed timeshare stocks for three years now, my investing comfort level is with Disney Vacation Club. I have never described myself as a socially conscious investor, but having listened to 421 horror stories, my money is on Disney. Not one Disney member has ever contacted Inside Timeshare and the law firms I have surveyed tell me they have never had a Disney timeshare member seek legal assistance. Disney is a starter stock you can give to your kids and grandkids without regret. The following chart shows respectable profits can be gleaned from investing in Disney.

https://www.cnbc.com/2018/01/03/if-you-put-1000-in-disney-10-years-ago-heres-what-youd-have-now.html

Now on to Phyllis, Shirley and Marcy, three Inside Timeshare readers who contacted us this past week horrified at what is happening to them. I had trouble keeping them straight because they were all making the same comments:

I’m having panic anxiety attacks!

I can’t even read this because I’m having palpitations!

I’m so scared! I don’t know what to do!

Phyllis C, age 67, a California resident, was a Diamond Monarch owner

Phyllis works for a prison. She teaches residents how to sew uniforms for CalFire firefighters. Phyllis was the head pattern maker for OP, a brand I remember well.

By Phyllis

I was asked to attend a breakfast to talk about upgrades on a timeshare I owned. I was told it would last 55 minutes, but I was there for seven hours. Four highly pressured sales people took turns on me, bouncing me into three different rooms. They said my children would be responsible for the timeshare bankruptcy if I didn’t give up my Riviera Beach Club week and buy the new vacation points. They told me I would be personally responsible for my portion of the $32 million dollar Monarch timeshare company bankruptcy debt.

I told them over and over I didn’t want it and that I already owned the timeshare. They said I had to buy into the new program even though I had owned my timeshare forever. They said that I could never get out of it because my timeshare went bankrupt and I had to invest with Diamond Resorts or they would go after my children for payment. I had a panic stress disorder attack. After several hours, I was tired and hungry. In order to get out of there I signed. I am a senior citizen five feet tall. Sales agent Raymond Coppin was a six foot tall man, standing over me stating he was a child of GOD and that he could help me. He said to me “I am a friend. I can tell you what to do only after you sign a contract.” Victoria Borghetto, Hassan Younes, and Steven Ginsberg took turns telling me I had to buy Diamond points. They said using the BARCLAYS BANK CREDIT CARD for shopping would make my points go up and my maintenance fees go down.

I signed a contract to buy 3,300 Diamond points which they charged to a Barclaycard. I never received the card. I never used the card. I had a trial date May 8, 2018 to pay their lawyers in the amount of $3446.04. I have asked and been granted a 60 day continuance hoping I can find someone to help me. Diamond sent a letter stating the timeshare went into foreclosure and I am out of the contract. Since the timeshare and Barclays are together, shouldn’t I be out of paying the bank as well? Diamond already foreclosed on the timeshare I had used and enjoyed for so many years. I paid a timeshare exit company $1,600, but they must have nothing to do with Barclays?

I need help. Could someone give me advice? Can I get someone to go with me and represent me? I am afraid and stressed. Please e-mail me on what I can so as soon as possible. Thank You.

By Shirley K Minnesota, age 74

Club Wyndham

We will not be paying the Barclay card amounts due. We believe we are a victim of Elder fraud. This Tennessee news report interviewing the couple pictured in this television news report is exactly what happened to us. Wyndham opened a Paypal credit line without our knowledge. Furthermore, we feel we were scammed into opening two Barclay cards to purchase 84,000 Wyndham points for $14,879 on April 27, 2017. Mr. Ryan and Ms. Lapping told us the Wyndham points would not cost anything if we charged things to the Barclay credit card.

https://www.newschannel5.com/news/newschannel-5-investigates/consumer-alert/couple-goes-to-wyndham-timeshare-meeting-unknowingly-gets-15k-line-of-credit

Branson sales agents:

Gerald Ryan was highly aggressive

Samantha Lapping

I have filed a complaint with the Missouri Attorney General, the FBI at IC3.gov and the Consumer Financial Protection Bureau. I will be filing a complaint with the FTC and our Minnesota Attorney General.  

We did not know that the Barclay cards had been opened until we returned home. They had run our credit on our personal cards and came back saying, “You have great credit!” They must have opened the cards based on that information.

When I felt we had been scammed, I called and cancelled the Barclay cards shortly after the April 27, 2017 purchase. I thought that was the end of it, but on May 2, 2018 I received correspondence from Pinnacle that said I owe Barclay’s $14,879!  We are getting calls from Pinnacle.

https://www.bbb.org/minnesota/business-reviews/financial-services/pinnacle-credit-services-llc-in-minneapolis-mn-23002292/reviews-and-complaints

I didn’t even know what we bought. They had said if we charged things using the Barclay credit card, then it would all be free because we would not have to pay anything. They said we would pay for the Wyndham points by using the credit card. We were there from morning until about 2:46 PM in the afternoon. I am 74 years old and my husband Ellsworth is 77. Ellsworth is hard of hearing.

The following charges we were not aware of were charged to us.

$5,500 was put on a Barclaycard in Shirley’s name

$9,379 was put on a Barclaycard in Elswsorth’s name

$7,349 Promotional purchase

$2,000 Promotional purchase

$30 Promotional purchase

We were shocked when we received a “Welcome to Pay Pal credit and thank you for an account” on April 27.

I have always paid my bills until this nightmare. I have sciatic nerve problems and I don’t know what to do. I am not sleeping and don’t know where to turn. I am working just to make money to try to end this. There was no time to read anything. I believe this is Elder Abuse and Elder Fraud.

Marcy S, age 70, a California resident, widowed

I owned a deeded week at Ka’anapali Beach Resort

I was contacted by a man who identified himself as Louis Stravricos who said he was an attorney with US Consumer Attorneys Group in San Diego.  His telephone number is 855-627-0795. He said he was calling about my Diamond timeshare. He was aware that I was a Diamond owner and that I owned at Ka’anapali Resort. He sent me a copy of their contract and said I needed to pay him $2900 to get out of the Diamond contract.  He told me Diamond was going to take my house and my children would be responsible for paying all Diamond debts and that they would even attach my wages.  He said Diamond would also take my Social Security payments and my retirement.

I have not paid my Diamond maintenance fees for about three years. I wanted to deed it back to Diamond but they would not take it back. I tried to sell it but no one wanted it. I have Fibromyalgia so it is very difficult for me to travel.

This man that called was horrible. It was very scary. Would you please contact Diamond for me because I do not know what I should do? (We did and Diamond responded) I did not know if he was telling me the truth.

Irene told me that now Diamond has a program called Transitions, a voluntary surrender program. If I was current on my maintenance fees, I would in all likelihood be accepted for Transitions. I heard nothing from Diamond until I recently received a letter that said I was past due on $9,000 in maintenance fees. I cannot pay that.

Four other complaints were reported to Inside Timeshare directed against the same timeshare sales agent and in one complaint, the same vice president of sales mentioned in Marcy’s complaint:  

Complaint #1

The agent stated that we could take any points we did not use and apply them towards our maintenance fees.  He then spoke of the opportunity to earn an additional $2,700 towards our maintenance fees by using the Barclay Credit Card.  What he failed to advise was that we would have to charge $270,000 annually to earn $2,700 towards our maintenance fees!

Complaint #2

We were Monarch owners. We were told unless we bought more points our heirs would be responsible for maintenance fees.

Complaint #3

The presenter said we were not full members and we should have received a letter to go to full membership. I told them we never received a letter. He then offered a deal that would only be good right then.  He informed us that what we had was worth nothing now and we would have to upgrade to be able to use any benefits because of the bankruptcy.

Complaint #4

We were told at the Capistrano Beach Resort we would not be able to use our Monarch week unless we bought points and that our Monarch week was worthless. We were not told of the option to deed back the week.

Other seniors foreclosed:

Deneice and Louis Vargas – in the foreclosure process

http://insidetimeshare.com/fridays-letter-america-21/

Seniors Romeo and Lily Dalisay

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

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/

Thank you to Irene and our contributors for their story, it makes you wonder how these overpaid company executives can actually sleep at night, I think we all know the answer to that, no conscience, pure greed and a greater love of money than their fellow man!

Unfortunately it all starts with those lower down the food chain, the sales agents, obviously looking to become one of the big boys with their own office!

Well that’s it for this week, Friday is here and the weekend begins, have a good one.

More Nightmares on Timeshare Street

Today’s article is rather disturbing, it highlights how members of the armed services and veterans are being targeted by unscrupulous sales agents. For people who put their lives on the line, this behaviour is particularly obnoxious.

Timeshare Wars

Samuel Melendez, our Advocacy group thanks you for your service to our country

troops

By Irene Parker

Diamond and ARDA seek to destroy me. I know that sounds melodramatic, but sources tell me it’s true.  I’m confident this will happen sooner rather than later. The industry and ARDA’s answer to our advocacy efforts is to behead the messengers rather than examine the business practices of top selling agents. I’m told one executive even commented, “They are victimizing the uneducated,” in regard to Timeshare Advocacy Group™ and our efforts.

Please read the American Resort Development Association’s (ARDA) Code of Ethics and Eron Grant’s article about the code before reading the following ten reader reports about their allegations of deceit.

http://www.arda.org/ethics/

http://insidetimeshare.com/fridays-letter-america-14/

Diamond Resorts and Bluegreen each give $1 million a year in the form of voluntary “opt out” donations to the timeshare lobby, a PAC, called ARDA ROC. Members are told it is a nonprofit that helps timeshare members. It is doubtful many members even know what the letters ARDA ROC stand for. Marriott’s contribution is an “opt in” donation. It took several calls to have my $7 removed from my account. When I called in November, I was told it was a delinquency. Having researched timeshare for over two years, I was able to determine the $7 was moved from one account to another. I suspect it was to have me forget about it as it mushed into the 2018 invoice.    

In a span of ten days, Inside Timeshare has been contacted by seven active duty and retired military, describing how they say they were defrauded by predatory timeshare sales agents from four companies.  A 100 page summary of 249 complaints against timeshare sales agents and companies is available upon request by regulatory authorities. Of the 249 complaints, 233 are against Diamond Resorts.  I am a Diamond member. I did not choose to do business with Diamond. We were acquired in the ILX Arizona acquisition. If I were instead a Bluegreen member, 233 out of 249 complaints would be against Bluegreen. Bluegreen members have their own Advocacy group supporting members who want out of their Dream Vacation that can become a Nightmare when a life crisis occurs.  

troops2

Today we thank Samuel Melendez who spent 21 years in the army training soldiers, working with colleges, teaching chemical, biological and nuclear defense. When a military family is forced into foreclosure because they were lied to about being able to sell back points or finance at a lower rate, they don’t just lose their money. This can jeopardize their security clearance and their job.  Amanda Jones, featured in Tuesday’s article, has suggested individual base commanders be informed in the hope they will ban service members from attending timeshare presentations and events. “The Diamond sales agent that sold us points said he was a Marine. If he is not, that’s stolen valor. Base commanders need to be aware of the predatory nature of timeshare sales. My husband George and I, Navy computer technicians, feel we were victimized.”   

The Tuesday Slot with Irene

If seven members of the military, describing how they say they were defrauded were not enough in a week, Gay and Ed Brewer called me yesterday. My husband and I owned a bioavailability pharmaceutical research laboratory, but I have heard more grave medical conditions in the last two years assisting timeshare members, than I did in ten years as president of our company.   

Gay Brewer, 74 and Ed Brewer, 77

First, here is Diamond’s Rebuttal to my article written for Jim Cramer’s TheStreet about Apollo’s acquisition of Diamond dated June 30, 2016.

It is also incorrect to state that Diamond Resorts is “not interested” in liquidity in the resale market for timeshares because the company profits from “reclaiming” vacation ownership interests that are defaulted on by the customer. To the contrary, Diamond Resorts understands that customers experience life events that change the circumstances from when they originally purchased vacation ownership interests. That is why the company not only permits resales, but we also recently announced a new “Transitions Program” to launch soon, and will allow those in good standing to relinquish their points to the company in a simple, safe and respectful manner.

https://www.thestreet.com/story/13624491/1/is-apollo-returning-to-its-junk-roots-with-its-acquisition-of-diamond-resorts.html#2

The snag is “in good standing” because almost all timeshare members contacting Inside Timeshare say they were pressured into high interest rate loans. All timeshare companies can and do cancel loans. I’ve come to learn it is a matter of who wears down whom first.

According to Gay Brewer,

Ed’s heart stopped beating three times this past year. He has had a prior heart attack. He has had a Pacemaker defibrillator implanted which has fired three times. He cannot fly on an airplane or be exposed to high altitudes. He is monitored 24/7 by a Holter monitor. We had to evacuate our California home due to the Liberty fire. At present we are receiving 12 collection calls a day (six each) from Diamond’s collection agents.

Deneice Vargas, another Diamond member in foreclosure (her husband Louis is diagnosed with Bell’s palsy), told me “When DRI Consumer Advocates are not busy advocating for members by researching and providing the member’s initials on the fine print, in response to “the sales agent said”, they make collection calls.” The oral representation clause may make this legal robbery, but Social Media is eventually going to catch up. Several attorneys have told me the oral representation does not allow timeshare companies to get away with sale agents who lie, but there is virtually no enforcement. State enforcement is spotty at best.

The Brewers were Monarch owners. Like so many, they were told they had to give up their deeded week. This was not true. Four or five contracts later, after the last up-sell at Diamond’s Polo Towers Resort, they decided they regretted buying points due to disappointment in availability. While I find good value in Arizona and Orlando using points, limited availability is a major complaint voiced by Diamond and Bluegreen members. The Brewers have written to DRI Consumer Advocacy:

Diamond Resorts Consumer Advocacy

We are asking our loans be cancelled due to medical and financial hardship. We were told we would not be able to use our Monarch week unless we bought DRI points and that our Monarch week was worthless. We were never told of the option to deed back the week to DRI. Due to the burden of medical bills, we have not made payments since July and will not be able to make future payments.

We contacted Exit Timeshare as they guarantee timeshare release but they said they would charge us $28,000. I contacted Irene Parker. She told us to contact Diamond Resorts Consumer Advocacy instead. She said DRI Advocates have helped many in our situation. We were not aware there was a DRI Advocacy program.

Please contact us as soon as possible. It was never our intention not to meet this obligation, despite the fact that there was never adequate availability when we tried to book and we were never told of the option to deed back our Monarch week. We have learned that on TUG Timeshare Users Group, DRI is accepting more than 95% of requests, if in good standing.  

Thank you for your consideration.

Gay Brewer

army

Samuel Melendez Response to DRI Advocate Ben from Irene Parker

Mr. Melendez, DRI Complaint #207/233, is the eighth Platinum member to contact Inside Timeshare alleging financial institution fraud, deceit and bait and switch by DRI agent Rick Casper. The depth of corruption and the degree of criminality is now over my head, based on Karen Varten’s and Samuel and Delores Melendez report preceded by 231 others. Mr. Melendez and Ms. Varten have both reported a negative outcome.  

The Melendez family Edward Jones financial planner contacted me, so I am responding on the family’s behalf. I retired from Edward Jones Hawaii. Their EDJ financial planner had researched timeshare a little and found a law firm offering legal assistance for well over $10,000. He asked me if he should refer the family to this lawyer. I have nothing against the firm he mentioned, but I told the EDJ broker to hold off because I have referred seven other Rick Casper Platinum up-sells to Diamond Resorts Consumer Advocacy and they have helped all of them. They reported a positive outcome, albeit one needed the assistance of the Arizona Attorney General. What did Mr. Melendez receive from their Diamond Consumer Advocate as a response? Basically, they received a reminder of the oral representation clause, and their initials on the fine print, despite seven other identical Rick Casper complaints from members who received positive outcomes.

I spent a good two hours on the phone Monday with the FBI. My new neighbor is a federal prosecutor on sabbatical from California. I asked him for advice, but he only knows about murders. After speaking with the FBI (for the fourth time), and a few lawyers, I am convinced the oral representation clause does not hold water when used to hide behind. The FBI explained what it’s going to take, so we are filing complaints first on the FBI website IC3.gov and then orally, on the FBI tip hotline, found on the FBI website. Rick Casper is not the only DRI sales agent pitching bogus resale and maintenance fee programs that don’t exist. We have recently received complaint about a Las Vegas sales agent by the name of Adam Mendenhall offering point upgrades that would allow paying maintenance fees at $.30 per point. This program does not exist. DRI sales agents that make $1 to $2 million a year in commission tend to get more attention.  

One of our core advocates is a Tampa detective. She has advised us to file with the Nevada Real Estate Division. She was duped by Bluegreen. Like the detective, Scotty Black, DRI Complaint #164, works in law enforcement and has a MS in Criminal Justice. At least I have some help.

George and Amanda Jones, DRI Complaint #211, a married couple living in Virginia, are Navy computer technicians. Scotty, George and Amanda cannot afford their timeshare because of being told it would be easy to get their timeshare refinanced at a lower rate because the DRI sales agents told them there are many companies that specialize in refinancing timeshares, among other allegations. Forced into foreclosure, they could lose their security clearance and their job.  

Last week I was contacted by seven members of the armed forces, active duty and retired, four DRI complaints. Only the Air Force is not represented. Karen Varten, DRI Complaint #219, a Platinum up-sell, was contacted by DRI Marketing San Diego, hosted by Florida DRI sales agents in Virginia. Karen owned 57,000 points. She was told if she bought 25,000 additional points (totaling  82,000), if purchased today, she would have double points so 165,000 points to cover all maintenance fees and still have points left to travel. What was the response to her complaint? She was provided her initials on the contract.   

Preying on the young and old is bad enough, but Mr. Melendez taught our young men and women in the army how to defend themselves against biological, chemical and nuclear weapons. He sent a lot of those young people to war, and some of them did not return, protecting (alleged) predators like Rick Casper and, as the reports below offer compelling and compounding evidence, Diamond Resorts as well. Circumstantial evidence is still evidence.

Mr. Melendez has filed complaints with the FBI and the BBB. In the unlikely event DRI will help this family, please contact him by Wednesday, before we publish this article. There would be nothing that would make me happier than to end the year with a happy outcome for someone who spent 21 years teaching soldiers how to be protected from biological, chemical and nuclear weapons, instead of forcing this family to fork over – more than $10,000 the family will need to pay an attorney to get them out of this mess if DRI does not help them. After the last Rick Casper up-sell, their monthly payment has escalated from $431 a month to $2200. They told me they told Mr. Casper they were worried about passing this burden on to their heirs.  

All of the Platinum members listed below liked DRI, but now tell me they think this is the most crooked company in existence. I feel a little like Martin Luther, thinking the Catholic Church would appreciate his exposing corruption in the Catholic Church.  ARDA has had the same reaction as the Pope did then. A copy of all reports is sent to ARDA’s General Council and CEO in the hoping they will read their Code of Ethic.  

Irene Parker

Seven other Rick Casper Platinum up-sells totaling $819,000 including Mr. Melendez $133,000.

1 CL $75,000

During our meeting we were told about all the new changes that had been discussed at the Dinner that would allow us to sell our points. My husband has Cancer so all that was going through his mind was trying to make a choice that would help me later on if the Chemo doesn’t work and when Rick Casper convinced him this was the answer that’s all my husband heard. When we were in that office he was Stage 4. He has Colo-rectal Cancer that has spread to his Liver and Lungs. Our Las Vegas trip was something we wanted to do before my husband started his treatment.

I don’t understand how the DRI finance team could even approve us for a $75,000 loan for Timeshare Points when we had been turned down from two different companies while trying to refinance our house just this past year. Both requests were for under $100,000.

2 Nancy Callahan, age 69 $142,000

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

3 KK, age 61 $117,000

We have a picture of Rick and pitch

Questionnaire sheet last two questions: Had you attended dinner? What is your exit strategy? Apollo had dinners informing members Cloobeck was leaving.  Not everyone heard the presentation so Rick was talking to members Platinum about the Legacy program. He said DRI never allowed you to sell points. This will. He knows real estate people can get $5 on resale for DRI points. New members are paying $9 so if you buy at $4 it is easy to sell. He had contacts that he could set us up with. 12/29/2016

4 RB, age 66 $75,000

Mr. Casper said on at least four occasions I was eligible for a Pool Party Upgrade that would provide an exit strategy. He said the program was about to expire so I needed to write a sentence that said I wanted to do this and he would get the purchase approved. I never received a copy of the sentence. The purpose of the purchase, according to Mr. Casper, was to make my existing points more valuable. Mr. Casper went on to explain that this exit strategy would allow me to monitor and sell the points. He mentioned that he is a family man and does not want to pass his points and maintenance fees on to his kids.

5 JH, age 56 $132,000

“The main benefit that he presented was the ability to convert points directly into cash at $0.30 per point. If at any time during the year we had leftover points we could be reimbursed for those points in cash.  All we had to do was contact Dan Percy and he would process the transaction and put the money on our reloadable Visa card.”

I continued to ask questions about each benefit so that I would be certain.  I worded questions differently to see if I would get the same answer.  I threw out this scenario; “If at the end of the year I have 30,000 points still sitting in my account, you’re telling me that I can get reimbursed cash for these points at $0.30 per point.”  His response; “Absolutely – You contact Dan Percy and he will load $9,000 onto the Visa card.” We purchased 40,000 points to get us to the level of “Super Platinum”.

6 AC, age 68 $55,000

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

We purchased an additional 20,000 points on July 16, 2016 for $55,200 from Richard Casper, at Cancun Resort, Las Vegas. The reason we purchased these points is because Rick told us if we went from Gold, to Platinum status, he could sell the points if we needed to. In addition, he told us we could substantially reduce our maintenance fees by submitting receipts to him for goods and services. We have never seen a tangible way to reduce our current $8,685 maintenance fees.  

We contacted Richard Casper by email on April 7, 2017 because we need to sell the 20,000 points. We received an autoreply stating to contact VP Dan Percy. We talked with Dan Percy on April 14, 2017. He stated that Diamond Resorts sales personnel don’t assist people who need to sell points and are not allowed to provide any company names that buy and sell timeshare.

In addition, during our sales presentation with Richard Casper July, 2016 we asked about combining our eight contracts. He advised that any free and clear points sold on the resale market will have the same benefits except loyalty level as long as no more than 20,000 points to one individual and it would be better not to combine the points. He stated that many Gold owners would be happy to buy 20,000 points at the lower price to become Platinum owners.  

7 JM, age 61 $90,000

Rick Casper was introduced to me as a Platinum specialist. Mr. Casper said I made a big mistake buying Hawaii points and a bigger mistake transferring the 20,000 points I bought in Daytona, due to a class action lawsuit against DRI members causing exorbitant increases in maintenance fees because of storm related beach erosion.  

Mr. Casper said I had to transfer back to US Collection and if I owned 100,000 points I would be unofficially known as a double platinum member and I would be able to sell any unused points in November and December each year back to Diamond at 30 cents per point, as DRI could sell those points annually to other members. Mr. Casper said this was closely regulated by the authorities. Mr. Casper said by selling these point back to DRI at 30 cents per points I could pay some or all of my maintenance fees for that year and any years to follow. Mr. Casper said this would allow my children not to have to pay maintenance fees.  

“You are really passing your children a bill.  We have a new program if you reach me in November to let me know what you did not use. Diamond will buy them back at $.30 for that year only to, ‘put them back in the kitty’. We need the points because we can sell them to other people who need them.” He illustrated the money we would be paid on a piece of paper.  “What are you waiting for? This is a no brainer,” he said. Mr. Casper convinced me to return to the US Collection the 20,000 points I had transferred in Hawaii 2015 due to beach erosion. I purchased an additional 30,000 points. I now owned 115,000 points.

In November 2016 I called Rick Casper to inform him I had 80,000 points I wished to cash in so that I would receive $24,000 (at 30 cents per point) as Mr. Casper illustrated during our sales presentation.  However, he denied any knowledge of any such arrangement. I explained I had a guest with me at the time, S L, who heard everything he said.  .

Mr. Casper said the reason for the 30 cent per point program was due to the sale of Diamond to Apollo. Mr. Casper said Mr. Cloobeck wanted to do something for members who owned over 100,000 points to show his appreciation so he included the 30 cent per point program in the terms of the Apollo buyout.  SL and I clearly remember this conversation

My current loan payment at the time of the presentation was $1,650 per month. Mr. Casper multiplied that by 12 totaling $19,800 in payments annually plus $14,000 per annum in maintenance fees or $33,880 for annual maintenance fees and loan payments combined. He divided this figure by 12 resulting in $2,816 per month. In the 50,000 additional points Mr. Casper offered, he stated it would only cost an additional $400 per month or $4,800 per year. If I sold back the additional 50,000 points at 30 cents per point I would receive a check back for $15,000.

As stated previously, when I contacted Rick Casper to sell back 80,000 points, he acted as if he did not know what I was talking about. I own a truck leasing business and S is a secondary school teacher. In no way did we misunderstand the figures above.  

There was undue pressure to open a Barclaycard. I explained that I did not need an additional credit card. Rick Casper insisted I open a Barclaycard. I feel the Barclaycard is part of the strategy used to play out what I consider to be a con. 

I then spoke with Dan Percy and then Seth Johnson. I thought Mr. Johnson and I were close to a resolution when he suddenly stopped responding to me.   

At a meeting in Palm Springs, CA between Christmas and New Year’s 2016, we met with someone who seemed to be an ombudsman about the poor accommodation we had been assigned. During the course of our meeting I mentioned Rick Casper. She closed her book and said, “This meeting is over.”  I asked several times why and she finally said Rick Casper was under investigation.

I want to return to the 50,500 points I originally owned prior to the deceitful sales. I was not unhappy with Diamond until the deception started.

8 The first Monarch complaint I read in 2015 back in the day when I thought the Cancun Resort was in Cancun.

Burns

Former DRI CEO David Palmer’s friend from ADW Capital, recommended Diamond’s stock because there is no secondary market. This is a mock interview I published after reading the above complaint, shortly before I received an executive perk agreement leaked to us about how Diamond founder and former CEO Stephen Cloobeck was allowed, as a perk, 50 hours use of the most expensive aircraft in the DRI fleet with the flight crew, for non-business use. Last time we checked, Mr. Cloobeck is running for Nevada Governor, lauded for donating $400,000 to the victims of the Las Vegas shooting.  

http://insidetimeshare.com/new-across-atlantic/

Leon Black, founder of Apollo Global Management, is worth $6.5 billion, according to Bloomberg. David Palmer earned $19 million in two years, a small portion of the wealth generated for his family during his tenure as DRI CEO.  As a former stockbroker and financial planner, I have nothing against generating great wealth, but not like this.

Diamond’s response to the six military who say they were defrauded: Free tickets for military members for their next event.

https://www.insidethegate.com/2017/12/military-first-responders-to-receive-complimentary-tickets-to-third-annual-diamond-resorts-invitational/

 

Friday’s Letter From America

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

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

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

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

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

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

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

 

Eleven Platinum Diamond Members Cry Foul

Romeo and Lily Dalisay Share their Story

be strong

By Irene Parker

June 16, 2017

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

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

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

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

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

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

philipines flag

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

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

http://www.licensedtimeshareresalebrokers.org/

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

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

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

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

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

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

In Romeo’s and Lily’s words

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

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

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

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

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

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

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

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

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

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

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

stick men

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

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

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

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

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

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

truth set you free

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

friday dog

Have a good weekend.

stop press

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

Working Together Across The Ocean.

In today’s article, Irene Parker explains the work of the Advocacy Group and how it can help you the timeshare owner. Since this project has been going it has achieved some fantastic results, some that we are unable to publish, others have been and there are some to come.

This project has brought people together, ensuring that no one feels that they are alone. There is always somebody to help, even if it just to listen to your concerns. So enough from em and on with Irene’s article.

The Timeshare Advocacy Group ™

butterfly

“Knowledge speaks, but wisdom listens” Jimi Hendrix

By Irene Parker

June 5, 2017

What is the Timeshare Advocacy Group ™ and who are they?

More importantly, why are they necessary?

Timeshare Advocates, advocating on behalf of those who have fallen victim to what they consider to be deceitful sales practices, go beyond helpful Facebook posts to walk with the timeshare member until a resolution, relinquishment refund, or foreclosure takes place.

Timeshare members can contact Timeshare Advocacy Group ™ if they:

  • Can’t get out of their timeshare
  • Feel they were deceived or lied to by a timeshare sales agent
  • Don’t know where to start
  • Don’t know who to call
  • Cannot afford an attorney
  • Cannot afford maintenance fees

For too long timeshare developers have relied on the use and abuse of the oral representation clause. Of course there are timeshare companies and timeshare sales agents selling timeshares without deceit, trying to survive in a timeshare world where top producers are all too often encouraged to sell by “deceit, concealment, violation of trust and bait and switch” meeting the FBI definition of White Collar Crime. Financial Institution Fraud is added to the mix when credit card lending crosses over to predatory lending.

cartoon strip

When timeshare buyers begin their complaint with – “The salesman said” – company representatives are quick to ask for proof of the allegation, a word I have come to detest. In most cases there is no proof, but some regulators are listening. After all, it’s not that unusual for someone who has committed a crime to say, “I didn’t do it.”

More and more, surprised timeshare members who feel they are victims of deceit or “bait and switch”, realizing they have signed a perpetual contract with little or no secondary market, are digging in for the long haul, filing complaints with the FBI when deceived and Attorneys General sympathetic to the cause. Not all are.

Inside Timeshare previously published “Chicken Soup for Timeshare’s Soul” simplifying timeshare attorney Mike Finn’s white paper.

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

The Florida Timeshare Division acted on only 110 out of 2,360 timeshare complaints between April 2012 and April 2014.

Contrast this with Arizona Attorney General Mark Brnovich’s office acting on approximately 400 complaints filed against Diamond Resorts resulting in an $800,000 settlement and an issuance of an “Assurance of Discontinuance”.

The Timeshare Advocacy Group ™ works with print and broadcast media to take timeshare issues before the court of public opinion.

When Timeshare Advocate and former Hyatt and Diamond Resorts salesperson Candace Czarny learned of a May 2017 Arizona AG filing deadline for Diamond restitution eligibility, she wrote and distributed a press release to numerous Arizona publications and news networks. An Advocate who has a complaint in process was told by her reviewer that because of the publication of several articles, the AG office has received an additional 500 complaints. They wanted filers to know they need to be patient.

Hence, we answered the question, “What can one person do to make a difference.”

The Arizona Republic, part of the USA Today Network

http://www.azcentral.com/story/news/local/arizona/2017/05/18/timeshare-holders-released-contracts-following-deceptive-sales-practices/329107001/

The Timeshare Advocacy Group ™ is a group led by the following individuals who feel the time has come to take back our vacations.

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

Leading these efforts:

  • Irene Allen, TAG administrator
  • Charles Thomas, Inside Timeshare
  • Irene Parker, Inside Timeshare
  • Patrice Johnson, Advocate coordinator
  • Lisa Ann Schreier, media consultant
  • Candace Czarny, timeshare consultant
  • Diamond Resorts Member Sponsored Facebook administrators
  • Club Intrawest Owners Facebook administrators
  • Gold Key Resorts Owners Forum administrators
  • Monarch website administrators
  • Over 100 timeshare owners and members turned Advocates
  • 15 attorneys involved with various timeshare legal actions

This is where we are going. But how did we get here?

It all started with DRIP

http://drip.enjin.com/home/m/1894207/article/4099328

DRIP was launched by over 1000 British owners seeking release from Diamond Resorts timeshare contracts.

To my knowledge, Diamond Resorts has never admitted wrongdoing, but the company has introduced a program called CLARITY™ in response to the Arizona Attorney General’s actions. Is it enough? Members are wary but hope to work with Diamond to improve customer relations.

Monarch (DRI acquired) timeshare owners launched a website

http://www.monarchowner.com/p/opt-out.html

At a 2016 annual meeting, it was announced 30% of the remaining 40,000 Monarch owners have not paid their 2016 dues.

Wyndham Whistleblowers

A jury awarded former Wyndham sales agent Trish Williams $20 million when she exposed practices she said took place at Wyndham. According to Ms. Williams, Wyndham had TAFT days on slow sales days – Tell them any blank thing to close the deal.

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

Two additional Wyndham Whistleblowers, reported by Scott Brinkmann

http://www.orlandosentinel.com/business/brinkmann-on-business/os-bz-wyndham-whistleblower-lawsuit-20170209-story.html

A former Diamond sales agent introduced me to Charles Thomas, publishing investigative timeshare reports for Inside Timeshare based in Spain. This began a lifelong collaborative effort working together towards timeshare reform.

Diamond Resorts Owners Advocacy Group was launched February 2017

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.

advocate 1

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

Club Intrawest Owners member sponsored Facebook 3,000 members

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

Gold Key Resorts Owners Forum member sponsored Facebook

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

The following companies should be thinking about implementing their own version of DRI’s CLARITY™  based on these Consumer Affairs ratings.

The Bluegreen Corporation 1.5 out of 5 stars

https://www.consumeraffairs.com/travel/bluegreen.html

Westgate Resorts 1 out of 5 stars

https://www.consumeraffairs.com/travel/westgate.html

RCI 1.3 out of 5 stars

https://www.consumeraffairs.com/travel/rci.html

Shell Vacation Club 1.3 out of 5 stars

https://www.consumeraffairs.com/travel/shell_vacation_club.html

Hilton Grand Vacations 1.5 out of 5 stars

https://www.consumeraffairs.com/travel/hilton_grand_vacations.html

customer service

Many of the families our Advocates have worked with have been financially devastated by tricks of the timeshare trade. The word we hear most often is “embarrassed” and “ashamed”.

All victims of crimes are silenced, whether child abuse, rape or timeshare – isolated and silenced by perpetrators. The timeshare developers and lobbyist efforts have made it difficult to be released from contracts and difficult to contact other owners. Lawmakers turn a deaf ear to members with eyes wide shut. There is virtually no member representation in the industry.

We want you to know that our Advocates and Inside Timeshare are here for you. Join our efforts and expand our network.

Line up

Timeshare companies are starting to take notice, Inside Timeshare has had reports that many are wondering when we will start to highlight them, they are right to be concerned, because by coming together your voice gets louder. When it gets louder, it gets stronger, once it gets stronger the more you can all achieve.

Irene and myself thank all who contribute to these articles, either by writing or just reading the drafts and pointing out anything that has been missed.

Clarity: The Quality of Being Coherent and Intelligible.

Yesterday Inside Timeshare highlighted the plight of owners at Los Claveles resort in Tenerife, our US readers have a similar problem with developers attempting to take over resorts. Their problem is the transfer of deeded weeks to points, rather than the heavy handed actions of the Ona Group. We have also seen this in Europe, where the likes of MacDonald Resorts with the tacit approval of the owners committees association TATOC, are attempting to change all fixed week owners to their ridiculous points system. A system which only allows a stay under one condition “SUBJECT TO AVAILABILITY”.

Over the past few months Irene Parker Inside Timeshares partner from across The Great Lake, has been highlighting the problems that Diamond owners are having. One of the main themes has been the downright lies sales agents have been using to sell more and more points to people who obviously cannot afford it. The use of the Diamond BarclayCard is one tactic they have used, with promises that it reduces maintenance fees. Irene has in previous articles shown how this has devastated people’s lives.

Diamond sometime ago rolled out “Clarity”, supposedly to make everything transparent, today’s article from Irene poses the following question:

Is the Diamond Resorts Clarity Program Real?

facts

By Irene Parker

May 23, 2017

My husband and I stayed over two weeks at Diamond Resorts Scottsdale Links and Los Abrigados this past month. Anxious to hear more about Diamond’s Clarity Program, I asked if I could speak with a sales agent to learn more. Unfortunately, my requests at the concierge desk and emails went unheeded. Disappointed, I approached several existing members asking them for their feedback. I had hoped to hear positive stories.

Two of the families I spoke with did not want to go on record, but Faye and Mike Hanrahan from New Jersey shared their experience with me. I probably picked the wrong couple because they are former Monarch owners. Diamond has pursued former Monarch owners to give up their deeded timeshare week in exchange for non-deeded “right-to-use” points. In addition to Monarch, ILX, Intrawest and now Gold Key face the same battle in an attempt to hold onto their deeds.

Here’s what happened at Los Abrigados in Sedona according to Faye and Mike:

We had our sit down. We were told we have no way out of Monarch unless we spend approximately $10,000 for the equivalent of 6,000 Diamond vacation points with either a $1,400 maintenance fee or, if we signed a contract that same day, an $871maintenance fee. After we refused the first sales agent, we were introduced to an agent who said he was an original Monarch owner, but now worked for Apollo, although he had on a Diamond name tag. It was because he was with Apollo he could offer a half price on maintenance fee offer if we signed before leaving the room. Already familiar with timeshare, we knew there is no such opportunity for one owner to have half off the company’s maintenance fee. They offered to help by opening a Diamond Barclaycard for $3,995 put up by Barclays. The deal was to pay $39.95 month for 23 months to buy a “Club Combination for Life” program. After 23 months we were told we could use the $4,000 to buy into Diamond or Barclays will “zero out the debt” having paid a total of $918.85 at the end of 23 months. We of course could continue to use the credit card. Do you have any suggestions for getting rid of this timeshare?

Pressure to give up a deed is a frequent complaint. Once you give up your deed, the Diamond owner is no longer allowed to rent using a third party rental agency or website.

But back to Clarity, which is about accountability, transparency and respect for the customer. In the spirit of fair and balanced reporting, here are some excerpts about Clarity provided by Maya Pogoda, PR spokesperson for Diamond resorts.

Before we begin, I should mention that Inside Timeshare has been hearing from Diamond members on almost a daily basis. The majority of complaints received have been about upsells to existing members, even Platinum members, as per the individuals who reported to us, for the following reasons:

The only way to sell Diamond points is to buy more points because only Platinum members can sell their points.

The only way your heirs don’t have to keep up with maintenance fees is to upgrade to the next loyalty level. One family bought more points for this reason only to be told by the next agent at a subsequent presentation this benefit is already available, as she pointed out in a guidebook.

You should not have bought US Collection points because you won’t be able to book Hawaii (if in Hawaii) or you should not have bought Hawaii points because Hawaii maintenance fees are going to increase dramatically (if on the US mainland).

The only way to be eligible for a $.30 maintenance fee reduction is to upgrade to the next loyalty level. Only Platinum members can use points to pay maintenance fees at $.04 per point.

You need to buy more points because you can’t do anything with the small number of points you purchased.

Member stories are listed in our Barclaycard article

Timeshare and Barlcaycard in the US

Here is Diamond’s perspective on Clarity from PR spokesperson, Maya Pogoda. Her comments are from discussions we had in January and were previously reported.

“We have been piloting the various elements of the Diamond Clarity program for some time,” Pogoda explained. “Now that we gained the confidence that each of these pieces were effective, we were able to roll out this cohesive, national program that seeks to enhance the overall customer experience when purchasing and holding a vacation membership. Diamond Clarity will rewrite industry best practices by increasing transparency for the consumer and accountability for our team members.”

Pogoda noted that 70% of its sales are to existing members, however, Diamond Clarity “will improve the overall customer experience by increasing transparency for the consumer and accountability for our team members. At Diamond Resorts, we are always working to provide our members with the best possible vacation experiences. This focus on hospitality and creating lasting experiences has made Diamond Resorts an industry leader. We have always believed that customer satisfaction creates loyalty. So while the definition of customer loyalty has not changed, our commitment to finding new ways to drive customer satisfaction to create loyalty evolves constantly. Diamond Clarity is evidence of that.”

Creating a Consumer Advocacy Channel within the company’s corporate headquarters, to quickly address any issues or concerns members may have. This new platform will allow Diamond Resorts to maintain the highest standards of service in the industry.

https://www.loyalty360.org/content-gallery/daily-news/diamond-resorts-international-raises-the-bar-on-cu

No one doubts there are are Diamond members who are sold honestly and fairly, but over 250 Diamond member families have bonded together through our advocacy Facebook to support one another as we fight off endless up-sell attempts that have driven families further and further into debt.

To date our Advocacy group has received and assisted the following complaints.

Our Advocacy Efforts Statistics Update

75 Inquiries for assistance

55 Formal interventions complaints filed or assisted with

Reasons for 75 complaints as provided by the complainants

34 Sold by deception and bait and switch

09 Barclaycard upsell/predatory lending

02 30 cents to convert to MF relief (non-existent program)

06 Switch back from HI to US Collection or vice versa

06 Maintenance fees increases

02 Survivor benefit program (non-existent as already available)  

08 Bought more points told it was the only way to exit the timeshare

08 Lack of Availability

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/

According to Maya,

Diamond Clarity is not limited to just one state, it’s a national program that includes four new operational initiatives. One of these initiatives is recording quality assurance sessions subject to consent from purchasers, to review compliance with all policies and procedures, and to augment and enhance the company’s sales and quality assurance training.  The company has invested in technology to ensure that these recordings can be archived and searchable. Recording sales presentations would not meet these objective and thus are not currently part of the Diamond Clarity Program.”

The recording of the QA session is the biggest sore point Diamond members have with Clarity. Many of our complaints include the sales agent advising the buyer not to say anything about an exciting new program because “The program is not public yet so I could lose my job if you tell anyone.” Arizona allows the recording of the sales session but few buyers will go to the trouble.

Marjorie Menacker’s experience is an example of this. To date, Diamond has denied her release.

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

We end with some member advocate comments as to why these upsold members are wary.

inspired advocates

Irene Allen

Jan 28 (5 days ago)   

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

This new program by DRI is a very predictable step after the Arizona Attorney General’s action. If Clarity is about transparency, why does Maya not once reveal the only reason the company issued the program is because Diamond is essentially under state supervision in Arizona after the issuance of an “Assurance of Discontinuance” after over 400 complaints received claiming Diamond violated Arizona’s Consumer Fraud Act.

 DRI is obligated to demonstrate cooperation and compliance to new disclosure requirements by the AZ AG, but the company will do nothing for existing owners because they purchased contracts during the “Murky Stage”

“Clarity” does not have any provision of fixing the existing and growing problems which are flooding the courtrooms all over the world where DRI operates ….

  1. Regarding recording the QA sessions by DRI, this should be only offered if attendees, who are, according to “Clarity“, 70% existing owners, be allowed to do the same in order to establish a level playing field. Otherwise it is a trap participating owners will end up in, because it will give DRI additional defense tool in the courtroom.
  1. Regarding creating a Consumer Advocacy Channel. This Channel should have consumer rights attorneys and secret observers not employed by DRI in order to eliminate conflict of  interest.
  1. Regarding increase training to frontline personal. The frontline personnel had superb national training during the “Murky Stage”. How else can you explain the fact so many owners all over the world had exactly the same upsell by deceit and “bait and switch” during sales presentations? Many of our 250 Facebook member families claim sales representatives all over the world presented exactly the same falsified and misleading comments in order to entice owners to buy additional points. The name of the national sales training program should be: “101 ways how to deceive owners during sales presentation process and increase the volume of sales.”

Second member comment

I realize we are all skeptical about “promises” made by DRI, but this program has the potential of making a positive impact on our relationship with DRI.

Third member, a Diamond member and an attorney

  • Is the idea that none of these rules were previously in place?  It appears to me these are designed as Diamond CYA’s going forward, “we have a recording” or “there as an observer” or “contact the consumer advocacy channel within __ days”.  For Diamond to say the allegations we all experience did not happen.  

What does this accomplish for the victims of the bad business practices from the past?

  • Recording Quality Assurance sessions, subject to consent from purchasers, to review compliance with all policies and procedures, and to augment and enhance the company’s sales and quality assurance training.
  • Creating a Consumer Advocacy Channel within the company’s corporate headquarters, to quickly address any issues or concerns members may have.  This new platform will allow Diamond Resorts to maintain the highest standards of service in the industry.
  • Increased training of frontline personnel.  All sales and marketing personnel will take part in quarterly training exercises to reinforce their awareness, understanding, and compliance with all sales and marketing rules, principles, and practices.
  • Regularly placing “Consumer Engagement Observers” at sales presentations to continuously provide the sales organization with feedback necessary to achieve constant improvement.  
  • I would suggest these are great improvements to the training and consumer friendly positions Diamond should have had all along.  It does nothing to help people who have already suffered with no recourse from Diamond.
  • If their product was so great, Clarity would be evident within the first 6-12 months of an owner’s experience with the company.  It would be clear that this is “everything they said and represented” or it is “nothing that I was promised” and the consumer would still have options to exit, sell or rescind on some compromised plan. The longer you wait the less you retain.

I am not impressed.

Fourth comment anonymous due to Litigation

Enforcement of DRI “PROMISE” is difficult, unlikely, and merely a smoke screen to generate a false sense of security regarding oversight. It is another set of unenforced regulatory promises which incidentally spawned the crisis currently engulfing Diamond owners. The paltry AG financial agreement and appurtenant agreements simply demonstrate that the AZ AG is taking steps to protect itself from accusations of inaction.

Their behavior is reminiscent of the legal machinations demonstrated by ADRE and California Department of Real Estate. Complainants with ADRE regarding fraudulent practices at Diamond are told that such a complaint is an employee/employer dispute.

When filing complaints with RE regulatory agencies, it must be understood that determinations that deflect the fraud accusations are made to avoid costly investigations. This embraces the policy of waiting for some catastrophic event to prompt unavoidable enforcement action. It does not eliminate the need to continue to create a public record of these complaints, and legitimate demands to be made whole from recovery funds. Misleading determinations by these agencies should be challenged in order to demonstrate the lack of responsible enforcement pertaining to regulatory obligations.

Fifth anonymous member

If we only hear one side of the story or information how are we truly being informed? That is what happened with the hard sales only hearing their side. Our Advocacy members and Diamond need to hear and listen to both sides instead of the constant media spin.

You can share.

Sixth anonymous member

I’m afraid I don’t have much hope that this “Diamond Promise” will change much. I purchased a Sampler package in Sedona in 2012 and annual points the next year in Las Vegas. As best as I can recall, the procedures enumerated in the “new” Diamond Promise existed then, and still I was misled on some important issues.

The Diamond Clarity program has no mechanism which commits the vacation counselors, sales managers, and quality assurance officers to the Promise. In other words, there is no effective enforcement mechanism. Such a mechanism must impose a cost on the seller when the promise is violated.

The economic analysis of warranties has shown that a product sold with a warranty creates an incentive for companies to improve product quality. Reductions in the level of quality – like the misleading sales information in the case of timeshares – leads to higher warranty costs and thereby penalizes such behavior. We have good reasons to believe that in the absence of warranties high quality products get driven out of the market, while low quality products are driven out when warranties are used.

This new program depends on the trust in and good will from Diamond managers. But this is the same group that is incentivized to increase sales and revenue for the organization.

Seventh anonymous member

Promises are only as good as the party providing the assurances. I too see no real means of enforcement, and if anything this could provide an excuse for relaxed oversight by regulators.

I have been pressing the AZ Dept. of RE for 3 years to take enforcement action against DRI’s brokers.  It has been clearly demonstrated that they are negligent in discharging their responsibilities pursuant to RE statute.

I would recommend that owners look at filing a claim with ADRE as complaints are mounting regarding DRI behaviors.

Eighth anonymous member due to litigation

Clarity is definitely a meaningless program – except to bolster Diamond’s position in court.  I can hear it now – our QA monitored sessions prove no widespread fraudulent practices.  

Agents will know when they are being monitored or recorded so they will be on their best behavior.

Shacking hands

Will there ever be a day when we can all get along by communicating and responding to voices of the concerned?

Once again thanks to Irene and all who contribute from the other side of The Great Lake, one thing is for certain, owners on both sides are starting to see that by joining together they can make a difference.

To those owners at Los Claveles, you do have support, we only need to bring it together.

getting together

If you have any comments on any article published or would like to contribute, Inside Timeshare welcomes you.

 

Timeshare and Barlcaycard in the US

The Barclay MasterCard and US Timeshare Lending

By Irene Parker

May 17, 2017

Inside Timeshare published an article about Barclays Bank and the predatory nature of timeshare lending. Author Charles Thomas asked me to provide some input on how timeshare credit card lending works in the US.

Barclays Bank article by Charles Thomas May 11, 2017

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

Linked in the article, Money Marketing reported the following March 2017:

Barclays Bank consumer credit arm Clydesdale Financial Services is being sued for more than £1.5m by 106 consumers over a holiday home timeshare scheme.”

According to Consumer Affairs, the Barclay Card is rated one star out of five based on 63 ratings out of 585 reviews (May 15, 2017).

https://www.consumeraffairs.com/credit_cards/barclays.html

Charles provided the following figures as an illustration of how imprudent it is to finance a vacation at 17%. The cause: Sales agents extremely well trained and consumers suffering from a relaxed vacation brain.

These are the figures from one loan agreement over 15 years Inside Timeshare has been given for a 1 week timeshare, it is from Barclays:

Cost of the timeshare                   £10,900.00

Credit facility fee                           £65.00

Interest                                             £18,465.00

Total amount payable                  £29,430.00

Interest rate                                    17.6%

APR                                                     17.7%

 

Timeshare is certainly not the only industry that has led consumers into credit card debt up to their eyeballs. As a former investment representative working with approximately 1200 families, looking back, I would say about 10% of the families I worked with managed their money properly. Certainly, rule number 1 should be:

DON’T FINANCE A VACATION AT 12% TO 19%

Wyndham and Diamond both use the Barclaycard as a means to finance a timeshare. Just to compare ratings, Consumer Affairs gave Club Wyndham a one star rating based on 74 ratings out of 495 reviews.

https://www.consumeraffairs.com/travel/wyndham_vacation_resorts.html?page=3

As if the interest rate isn’t bad enough, consumers also must worry about falsified information used to open the card.  Lisa Etienne, a Diamond Resorts buyer, found herself in hot water claiming the company added a 1 before her actual annual earnings, as reported by Amanda Porterfield, CBS58 Milwaukee, Wisconsin.

http://www.cbs58.com/story/35376892/milwaukee-woman-says-timeshare-company-scammed-forged-her-documents

Inside Timeshare has received many complaints from timeshare owners claiming the Barclaycard was used in a predatory fashion. Actions speak louder than words, so I took the time to review the complaints we have received. Out of about 70 complaints, almost half involve a claim of deceptive and predatory lending. Most said they purchased because they were offered buyback or maintenance fee redemption programs that do not exist.

Michael Nuwer, on our Diamond member sponsored Advocacy Facebook, posted the following in answer to one member’s query. Over and over we receive complaints about a 30 cent per point maintenance fee redemption program that does not exist. Members are upsold, told they have to be at a higher loyalty level, often through the Barclaycard, in order to gain access to the nonexistent program. Historically Diamond points have sold for $2 to $4 per point.

“Platinum members can pay a portion of their maintenance fees using their points from November 1 through to the annual bill due date at the current redemption rate of $.04. The non-refundable processing fee is $100.00.” (Page 23 Benefits Guide)

This is an excerpt from the very first complaint I read. Stunned, I vowed I would do something to warn consumers. Since this first complaint, Inside Timeshare in the US and the EU has received dozens of complaints concerning the same tactics described below. Dozens may not sound like a lot, but given how difficult it is for members to contact other members, clearly a pattern exists as you will see later on.

“I am at the Cancun resort in Las Vegas and went to a breakfast where they said they would simply update me about the changeover to Diamond. I was told that I should have been invited to a dinner where I would have been given options due to their (Monarchs) bankruptcy. I have been looking to get out of Monarch for over a year. They said that was not an option and as an owner, I was proportionally responsible for their debt. I felt trapped and signed all the papers to transfer, with no idea how I can pay. I am already in severe debt. They claimed when they ran my credit though that it looked better than most and assured me I qualified for financing. I would have to basically transfer to credit cards, which I can barely make my payments on now. I am really scared though. Please help!”

As Diamond is not able to be sold through a member of the Licensed Timeshare Resale Broker Association, and relinquishments are evaluated “case by case”, members find themselves stuck, running in the “hamster wheel” timeshare trap. The member is foreclosed and points are then resold to the next consumer at full value. Even if a relinquishment is granted, when the purchase is recent, but regretted due to abuse of the oral representation clause, families can find themselves financially devastated.

I revisited the cases of members who contacted Inside Timeshare. We have many complaints about the tactics used at Diamond’s Polo Towers Resort in Las Vegas. Diamond has resolved issues for some of the members, but we continue to receive complaints about this sales center. Sales agent Rick Casper even made the RipOff Reports in 2015.

http://www.ripoffreport.com/reports/diamond-resorts-international/las-vegas-nevada-89123/diamond-resorts-international-rick-casper-vacation-counselor-we-were-told-that-we-would-1269511

Other Complaints

Plaintiffs Gisele Fournier and Rejean Fournier of Riverside County, California May 12, 2017. Their credit card was allegedly charged $2,000 for the membership upgrade, and the upgrade caused their monthly membership dues to nearly double, according to the Diamond Resorts class action lawsuit. They claim they were pressured again into purchasing a membership upgrade and were reportedly mocked by Diamond Resorts’ agents because they did not bring a credit card to the meeting.

https://topclassactions.com/lawsuit-settlements/lawsuit-news/670995-class-action-diamond-resorts-pressures-buyers-timeshare-contracts/comment-page-1/#comment-439596

Kathie Olds on December 6, 2016 reported being told she could redeem points for 50 cents a point to pay maintenance fees. The sales agent promised the Olds they could open a Barclaycard to pay maintenance fees without explaining the reimbursement was on only 1.5%.

barclaycard1

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

Fast forward to May 12, 2017 Kathie reported:

Yesterday in St. Martin sales agent Riza Young and her manager said that through travel services we could cash in 20,000 points for $.30 per point to pay for $6,000 in maintenance fees. We were also told at Grand Beach Resort in Orlando that if we bought 10,000 more points for $38,000 we could cash in 20,000 points for $10,000 to totally cover our maintenance fees of $8500 +. Both are total lies! She told us she “hates it when agents lie to us.”

Oddly enough, the Better Business Bureau rates Barclays Bank Delaware an A+, given out of 43 reviews, three were positive, one neutral and 39 were negative. There were a total of 988 complaints.

https://www.bbb.org/delaware/business-reviews/banks/barclays-bank-delaware-in-wilmington-de-22002677/reviews-and-complaints

Our readers warning other readers

Inside Timeshare Chronological Articles

Marjorie Menacker – Marjorie says her Diamond timeshare sales agent said she would not have to pay maintenance fees anymore thanks to a one day secret offer.

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

Eron Grant May 12, 2017 reported she was told about a non-existent 30 cent buy-back program.

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

Nancy Callahan April 24, 2017 reported she was not aware until she returned home $17,000 had been charged to a Barclaycard to buy $143,000 of Diamond vacation points. She said she was told to open the card because it would help pay maintenance fees. Polo Towers Resort

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

A Filipino Family April 13, 2017 reported they are in foreclosure.  At a meeting, the sales pitch was, we need to completely get rid of our Monarch points by buying more Diamond points in order to prevent the increase in maintenance fees due to less and less people owning Monarch. Four Barclaycards were opened. Cancun Resort in Las Vegas

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

A Military Family March 6, 2017 reported “Jose, the Supervisor, recommended we buy more Points as that would lower our Maintenance fees by taking back the Sampler. We were also financing the Sampler, so he said they could keep my monthly payment the same”.

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

Irina Allen January 13, 2017 reported she must pay $2,400 a month in mortgage payments at 18% and $29,000 in maintenance fees while her account is suspended. She was accused of posting an ad on RedWeek to rent her points. She was also accused of opening an AirBNB accounts. Irina has never had an AirBNB account.

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

Sylvia Saldana October 25, 2016 reported being told to open a Barclaycard to pay maintenance fees and to buy more points. The Saldana’s gave back $60,000 worth of points and still have a $33,000 home equity loan which their sales agent advised them to take out to reduce Diamond’s high interest rate.

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

The Hurleys, a retired Canadian military family January 25, 2017 reported their struggle with maintenance fees having been convinced to invest their entire life savings thinking they were buying something better than a second home.

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

Related articles

The Arizona Attorney General issues an “Assurance of Discontinuance”, essentially placing Diamond under state supervision March 1, 2017  

http://insidetimeshare.com/arizona-attorney-generals-assurance-discontinuance/

Our Diamond Member Sponsored Advocacy Group February 15, 2017

http://insidetimeshare.com/owners-coming-together-help/

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/

Chicken Soup for Timeshares Soul February 7, 2017 on how to file a complaint

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

Billion Dollar Lawsuit filed against Diamond Resorts February 1, 2017

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

Shawbrook and Barclay Bank Inside Timeshare July 11, 2016

http://insidetimeshare.com/shawbrook-bank-announce-irregularities-timeshare-loans-similar-activities-usa/

Sometimes it is 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 like they are lost and alone to let them know Inside Timeshare and our Advocacy Groups are there for them to reach an outcome, whether positive or negative, through the 3Rs or F of Timeshare – Resolution – Relinquishment – Refund – Foreclosure –

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

Once again thank you Irene, this article is just one in a long line of how the banks are colluding with timeshare developers and sales agents to line their own pockets at the expense of you the consumer. This type of lending does and has caused endless misery and financial difficulty for many.

In some respects, we believe that this is verging on the criminal, with no thought or concern for those who are affected.

If you have been a victim of this type of operation contact Inside Timeshare or our Facebook Advocacy page.

advocate 1

 

“An Anatomy of a Timeshare Foreclosure” A Reader’s Response

Following on from last Friday’s article where we highlighted the case of a Filipino families experience with timeshare, a reader emailed his response. Irene decided that it was worthy of its own article.

This Friday we will publish another in the series of articles by Irene, this one will focus on “Resales and Rentals”, this will be part III of the series The Three R’s of Timeshare.

A Reader’s Response to “An Anatomy of a Timeshare Foreclosure”

A reader’s response poses more questions than answers

Question man

By Irene Parker

April 19, 2017

One of our readers emailed comments and questions about Friday’s “An Anatomy of a Timeshare Foreclosure” article. As I attempted to answer his questions, I realized the complexity of his questions and comments are worthy of an article.

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

I don’t understand the Monarch to Diamond transaction.  Is there an explanatory paper about the transaction?

The Monarch to DRI transaction is exactly like the ILX to DRI transaction. My husband and I were ILX owners. Monarch and ILX acquired owners are the most disgruntled because they received the greatest upheaval in maintenance fee increases. The Castle Law Group ran ads just because so many former ILX owners were in foreclosure.

“When Diamond Resorts International purchased Los Abrigados Resort and Spa in 2010, a pattern of rising maintenance fees began. Now, as thousands of owners have become delinquent, Diamond wants them to get current, or they will go into foreclosure.”

As reported at a Monarch annual meeting, “Of the 40,000 remaining Monarch owners, 33% have not paid their 2016 maintenance fees.”

The goal is simple and does not require reading ILX or Monarch to DRI acquisition documents. Sales agents are instructed to get the former deeded owners to give up their deed and convert to DRI points.

Deeded timeshare weeks are defined as real estate but points are “right to use” like a country club. No one says I am an owner at a country club. Points are much easier to “take back” as opposed to weeks which require an actual foreclosure process.

The murkiness started after Diamond acquired ILX. The article linked below is my mock interview with Scott Miller of Greenhaven Road Capital. ADW Capital and Front Four Capital are the two private equity firms that wrote a letter to Palmer encouraging the exploration of ways to “maximize shareholder value” because the Diamond stock price was in the doldrums. Former Diamond CEO David Palmer’s background is private equity. Mr. Palmer was urged to take the company private.

http://insidetimeshare.com/new-across-atlantic/

As you can tell from the tone in the article, there is no interest expressed in enhancing owner value. One of our Diamond Facebook administrators said that in listening to several Diamond conference calls with shareholders, not once did Palmer mention a benefit to owners. In fact, he boasted about how when Diamond buys a property, they “immediately add 15% onto every annual budget item and that is a 100% profit to shareholders.” Mr. Miller actually used the lack of a secondary market as a reason to buy the stock.

Shortly after acquisition Grand Beach Orlando owners received a notification stating “we will be raising maintenance fees 14.99%.” The increase is always due to the resort being in bankruptcy and therefore neglected. Odd expenses started popping up. I was sent a copy of an agreement stating, “Stephen Cloobeck is allowed 50 hours of annual use on the most expensive aircraft in the DRI fleet and the DRI flight crew for non-business use.” After the Apollo acquisition, DRI PR said DRI no longer owns or leases aircraft. This type of expense was not a normal ILX or Monarch expense. Palmer earned $19 million in two years and Cloobeck and other executives millions more.

Apollo Global Management acquired Diamond September 2016. Banker Leon Black formed Apollo after filing bankruptcy after the Drexel Burnham Lambert junk bond fiasco. Michael Milken went to jail. Note Diamond’s rebuttal.

https://www.thestreet.com/story/13624491/1/is-apollo-returning-to-its-junk-roots-with-its-acquisition-of-diamond-resorts.html

Many analysts reported on 11 quarters of consecutive growth but few financial analysts, with the exception of Pulitzer winner and New York Times financial journalist Gretchen Morganson, reported on this oddly coincidental 2Q earnings report explaining Diamond’s dismal 2Q downturn due to improper inventory valuations (that’s us) announced shortly after the $2.2 billion announcement. Earnings had to be restated back to 2014 and caused a significant drop in earnings.

https://www.thestreet.com/story/13702895/1/diamond-resorts-international-s-second-quarter-earnings-reversal-is-worrisome.html

https://www.nytimes.com/2016/08/07/business/accounting-error-may-not-derail-a-deal-but-ex-director-bails-early-anyway.html

There is mention of Monarch “equity” and Monarch “points”.  What is the connection?  

A fixed week deeded property can be listed with a member of the Licensed Timeshare Resale Broker Association for no upfront fee. The broker gets paid after the sale. Even points for any major timeshare except Diamond Resorts can be listed with one of the 64 LTRBA members. The members feel Diamond points are worthless on the secondary market due to restrictions the company has in place on use of points purchased on the secondary market more onerous than other timeshare companies.

http://www.licensedtimeshareresalebrokers.org/

Buying Diamond points so that you don’t lose equity is nonsense because we all know DRI has no resale value unless you can find a buyer that doesn’t care about resale value. One of the LTRBA members I spoke with said even the market for Diamond’s deeded weeks is soft. You can always sell to friends or family but the members I talk to would never sell their DRI points to a friend or family member as they are so dissatisfied with the program and alarmed at the rise in maintenance fees. Again, acquired owners are the most exposed. There are many Diamond owners who use and enjoy their points. The problems arise if a member needs to sell. One owner from Wisconsin checking out of Diamond’s Los Abrigados Resort in Sedona said to me while packing his trunk, “I tell my kids if they act up I will name them as beneficiary to my Diamond points. I attend sales presentation to annoy the sales agent and hang out by the pool to warn others. The sales agents just roll their eyes and say, oh, he’s just an ILX guy.” He had stayed five months at Los Abrigados so in all likelihood was a Platinum member.

How can Diamond justify their salesmen explaining to Monarch owners, the complexities of the Monarch/Diamond transaction at a dinner or short meeting?  

I can answer that! The dinner or breakfast or 55 minute group session is followed by a three to seven hour (so far the reported record is seven) high pressure brutal and demeaning sales experience as I reported happened in this article. Diamond has introduced a new Clarity program that is intended to tone down the aggressive nature of the sales experience. Diamond is certainly not alone in the high pressure department. It was the sales presentation I wrote about in this article that led to my writing to Las Vegas Attorney Bob Massi, host of Business FOX Property Man. Our interview with Mr. Massi will be aired this Friday April 21on Business Fox at 8:30 PM EST.

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

Only a senior customer service person may know enough to explain.

We have a lot of high powered advocates that can explain better than a Diamond customer service representative as we know more than the longest tenured customer service person. They may not even own Diamond points.

Diamond should have produced a summary of the transaction that could be understood by the layman.  

Again, there’s no mystery. ILX and Monarch went bankrupt. Diamond bought them. Get the deeds and replace with ethereal points. Monarch owners found themselves not having access to resorts they had stayed at for years. Lawsuits resulted. This case led to the filing of a billion dollar class action in Nevada.

https://topclassactions.com/lawsuit-settlements/lawsuit-news/457692-diamond-resorts-class-action-says-elderly-targeted-abusive-sales-tactics/

Diamond would not do that because they are happy to confuse the Monarch owners and just want to sell Diamond points without truthfully explaining the consequences of doing that.

That is obvious if you read the first example in Friday’s article. I have used that example often as it is the most glaring but I have heard from about two dozen Monarch owners all reporting variations on the theme.  

The above are only a few of the aspects that I need to have explained to me before I can start to understand the issues.

The timeshare developer lobby ARDA has supported laws making it more difficult for owners to contact other owners. We can certainly see why. Laws are passed to protect our “privacy” but as we all know, we are bombarded with solicitations.

Thank you for these comments and observations. Our Advocacy group has been accused of “victimizing the uneducated”. Many are happy with their Diamond points, but those that get hit with one of life’s roadblocks, no longer able to afford the timeshare and up-sold for the wrong reasons, can face financial ruin when that day comes.

Other Apollo related articles by New York Times journalist Gretchen Morganson:

https://www.nytimes.com/2016/10/09/business/wells-fargo-isnt-the-only-firm-that-needs-a-lesson.html?_r=0

https://www.nytimes.com/2016/02/28/business/keeping-investors-on-a-need-to-know-basis.html

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/

A2A

Contact Inside Timeshare or an Advocacy Group if you have questions or concerns about your timeshare.

Once again Inside Timeshare would like to thank our readers for all their comments and contributions, keep them coming. If you would like to share anything with the rest of the world contact either Inside Timeshare or the Advocacy facebook page, this is where you will find out what is going on in the world of timeshare.

If you require any information about any company that has contacted you or you are thinking of dealing with but need to know more, Inside Timeshare is here help. If we don’t know the answer we will find it .

 

Anatomy of a Timeshare Foreclosure

Inside Timeshare today publishes another article by Irene Parker our US writer, she today highlights the plight of a Filipino family who have had a bad experience with pressure sales tactics. It is not an uncommon story, we have seen this all too often, the falsehoods told by some sales agents just to secure a sale, “you need to buy more points or lose what you have”.

This particular story is being translated into Tagalog, the Philippine language to be submitted for publication in the Philippines, also for publication in the Californian Filipino Press. We are also waiting for a contributor from Australia to submit his comments on timeshare “down under” to Irene, this is taking Inside Timeshare onto a worldwide stage.

As one of our regular US readers told Irene, Inside Timeshare is probably the first international timeshare publication that he has ever known. We know from some of the emails received, we are read all over the world, the news and views we publish are relevant and of interest to all timeshare owners, wherever they are.

According to certain sources, DRI think that Inside Timeshare is not being fair on them, oh dear! Does that mean we are doing it right?

What we at Inside Timeshare have called for in past articles is dialogue, recognition of that facts that the product has been sold aggressively, that certain groups especially the elderly have been targeted with these tactics and to change the way the product is sold.

For timeshare to become the product it was at first envisioned to be, resorts and developers need to change how they perceive the owners / members. They are not “cash cows” to be milked at every opportunity, but the cornerstone of the business. Without them there is no business.

So now on with today’s article, we hope it helps you the reader to understand what is going on.

Anatomy of a Timeshare Foreclosure

Part I: The 3Rs or F of Timeshare

The 3 R’s of Timeshare: Part 1

Part II: The 3Rs of Timeshare

Part II: The Three Rs of Timeshare

Part III next week: Two more Rs – Rentals and Resale

By a Diamond Resorts Filipino owner and Irene Parker

Betty and Rolf Burmeister

Two Diamond Resort members share their story

April 12, 2017

debt

 William, age 70, and his wife Mary, age 71, are a Filipino couple and residents of California. The family has asked not to be identified. William said the family has maintained a good credit score until now and are horrified that at age 70 they must face foreclosure. Mary was working just to pay for their loan and annual maintenance fees, but can no longer work due to complications from diabetes. They are worried about the lien Diamond will place on their assets and the burden they will be leaving their children.  

Mary worked as a hand therapist and William worked as a physical therapist. Nurses are the #1 export out of the Philippines, according to William. William and Mary are especially angry because, like so many Diamond Monarch owners alleging deception, they feel they were forced to buy points or lose Monarch “equity”.

The family owns 60,000 Diamond points. Historically, according to information culled from lawsuits, points have sold for $2 to $4 so we can estimate at least $180,000 spent on a vacation plan over time.

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

http://www.licensedtimeshareresalebrokers.org/

William and Mary’s complaint is similar to this complaint posted on Trip Advisor from the same Diamond Cancun Resort in Las Vegas. We have heard from five other families with similar complaints from Diamond’s Las Vegas Resorts. This was the first complaint reported:

I am at the Cancun resort in Las Vegas and went to a breakfast where they said they would simply update me about the changeover to Diamond. I was told that I should have been invited to a dinner where I would have been given options, decided by a judge in a legal ruling against Monarch due to their bankruptcy. They proceeded to show me a print out that said when my current term expires in August. I would have to pay $573 per quarter to Monarch. They said that due to the bankruptcy, I would have no equity. That was option one. Pay more, have nothing. The other option they said was to transfer into Diamond at a cost of $12,000 plus and pay a yearly maintenance fee of $1,700. Less than the $2,292 I would soon be giving Monarch. They also told me that I would then have equity of $41,000 that I could sell. I was in tears. I do not have any extra money. In fact I have been looking for ways to get out of Monarch for over a year now. They said that was not an option and that as an owner, I was now proportionally responsible for their debt. I felt trapped and signed all the papers to transfer, with no idea how I can pay. After reading the comments above I am even more scared. I am trying to start my own business and am already in severe debt. They claimed when they ran my credit though that it looked better than most and assured me I qualified for financing. I would have to pay off, basically transfer to credit cards, which I can barely make my payments on now before I could look to sell. One of the reps assured me that she would put me in touch with someone who could help me sell my points. She even gave me her cell phone number to call after the sale/transfer is finalized. I am really scared though. Please help! We have to do something. It seems as though they have no qualms about lying to and robbing people for their own benefit.

William and Mary’s story in their own words:

  • William and Mary own 60,000 Diamond points
  • Mortgage balance:  $85,968.25 financed by Diamond at 13.1%
  • Monthly mortgage payment:  $1,375
  • 2017 Maintenance Assessment Fee – $9,034.05

filipino family

In Las Vegas at Diamond’s Cancun Resort in 2013, we were told we should have received an invitation to attend a dinner to discuss the transition of Monarch MGV to Diamond. The sales agent asked us to write a letter stating that we did not receive the dinner invitation and therefore should be given the same benefits and price per points similar to those who attended the dinner. He said he would fax our letter to another Diamond office in Las Vegas.

In hindsight:

  • I should have asked for a copy of the FAX transmission.
  • I succumbed to the fear factor. The agent stated that due to Monarch’s bankruptcy we will lose our EQUITY if we do not purchase additional Diamond vacation points.

The concierge stated that this meeting will be only for one hour. We were held in that meeting room for close to five hours. We eventually broke and signed a contract to buy more points.

We constantly get telephone calls inviting us to attend more updates and we generally turn them down. We had a telephone sales encounter one time from the same Diamond Las Vegas Cancun Resort office trying to sell us more points. This telephone encounter lasted for over three hours. It is very difficult to get away from them once you get sucked in.

Next, we made a fatal mistake by attending a “free” dinner meeting in Pomona, California July 2015. At that meeting, the sales pitch was, we need to completely get rid of our Monarch points by buying more Diamond points in order to prevent the increase in maintenance fees due to less and less people owning Monarch.

The example they gave was the hurricane in Cabo San Lucas that damaged the Cabo Azul property. The sales representative said that if we still own Monarch, we will be assessed increased maintenance fees to pay for the repair of the Cabo property.

Another example he gave was the water damage at The Point at Poipu, a Diamond acquired property in Hawaii. He said owners were charged for special assessment to repair the property.

http://www.tstoday.com/members/magazine/issue123/7-poipu%20point.pdf

Like the previous meetings, this meeting lasted for over five hours. We went home close to midnight. Your focus, decision making and judgement falters if you are kept that long. The increase in maintenance fees after this purchase started our financial struggles.

Keep Reading

Latest News from Europe and the US.

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

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

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

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

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

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

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

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

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

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

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

Diamond Owners are Hopeful but Skeptical

By Irene Parker January 29, 2017

Skeptical Method

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

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

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

Press Release excerpts:

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

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

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

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

There are also several angry Diamond owner groups:

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

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

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

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

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

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

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

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

Continuing the litany of unhappy Diamond owners:

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

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

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

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

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

Of course, people can always contact me directly.

Irene Card

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

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

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

Back to the Clarity Press Release:

“It will increase transparency”

Keep Reading

And So It Begins!!

Following on from Friday’s article Attorneys General and Timeshare under Trump, it would appear to have upset a few people on a facebook page that Irene is or rather was a member of, Diamond Resorts International Members page.

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

Apparently some think it is political, well what isn’t political nowadays?

Gandhi free press

It asks the question what will happen to timeshare under the Trump presidency, a fair question considering his business background. He is a developer himself, having built a golf resort in Scotland, which includes plans to double the number of timeshare apartments.

He is all for business, fair enough, but is that going to be at the expense of beleaguered timeshare owners in the USA?

We have already seen in previous articles the predatory nature in the sale of timeshare including the continual upgrading and “lending” in order to fund this. It has been highlighted time and again that there is a lack of a “secondary market”, which ends up with owners being at the mercy of unscrupulous resale and termination companies.

Just from the actions in barring Irene from the group by a few, freedom of speech and expression is being eroded by a few, who think they know better. Are these people just stooges for the industry? Do they speak for the majority?

Voltaire free speech

Inside Timeshare thinks not, we will publish stories about both sides, whether they are “the good, the bad or just downright ugly”. Freedom of speech is the fundamental aspect of democracy, when we lose that we have dictatorship, Irene has lost one avenue for that freedom and it is to the detriment of those other members who wish to know the Truth.

Timeshare and Politics

Freedom of the Press and Freedom of Speech Works

By Irene Parker January 23, 2017

hand and pen

Whether we are talking politics or timeshare, media spin is usually the first line of defence. I have been banned from one of the Diamond Resorts Members Facebook page for posting the article Inside Timeshare published Friday, January 20 about US Attorneys General working for timeshare owners and Attorneys General who seem to be on the side of the timeshare developer. I was banned because the article was deemed political. I did not know President Trump was going into the timeshare business until I read the article after it was published.

Attorneys General and Timeshare under Trump

Timeshare is all about politics. The problem is, timeshare is a one sided political game with all the muscle on the side of the timeshare developers.

Several of the members of the Diamond Facebook contacted me with their reasoning as to why I was banned. I’m told the quota of unhappy owners has exceeded its limits. Happy campers are encouraged to apply.
I worked with over two dozen of the Facebook members, several having been financially devastated by their vacation plan. I felt like I had been making real progress interacting with PR spokesperson Maya Pogoda, the newly formed Diamond Consumer Advocacy Department, and Diamond’s In-house Counsel – responding when legitimate examples of deceptive and fraudulent business practices are brought forth, similar to the Monarch example below.

Owners released from a timeshare contract cannot share their story because they are required to sign a confidential non-disclosure agreement or CNDA, agreeing not to say anything negative about Diamond Resorts. How can this Monarch owner go through life not saying anything negative about Diamond Resorts? I use Diamond as an example, but a few of the big players are just as guilty.
I am at the Cancun resort in Las Vegas and went to a breakfast where they said they would simply update me about the changeover to Diamond. I was told that I should have been invited to a dinner where I would have been given options, decided by a judge in a legal ruling against Monarch due to their bankruptcy. They proceeded to show me a print out that said when my current term expires in August. I would have to pay $573 per quarter to Monarch. They said that due to the bankruptcy, I would have no equity. That was option one. Pay more, have nothing. The other option they said was to transfer into Diamond at a cost of $12,000 plus and pay a yearly maintenance fee of $1,700. Less than the $2,292 I would soon be giving Monarch. They also told me that I would then have equity of $41,000 that I could sell. I was in tears. I do not have any extra money. In fact I have been looking for ways to get out of Monarch for over a year now. They said that was not an option and that as an owner, I was now proportionally responsible for their debt. I felt trapped and signed all the papers to transfer, with no idea how I can pay. After reading the comments above I am even more scared. I am trying to start my own business and am already in severe debt. They claimed when they ran my credit though that it looked better than most and assured me I qualified for financing. I would have to pay off, basically transfer to credit cards, which I can barely make my payments on now before I could look to sell. One of the reps assured me that she would put me in touch with someone who could help me sell my points. She even gave me her cell phone number to call after the sale/transfer is finalized. I am really scared though. Please help! We have to do something. It seems as though they have no qualms about lying to and robbing people for their own benefit.

bill of rights

Attempts are being made to suppress the America media. CNN has been aggressively targeted. Suppressing the media is the first step in a dictatorship. It pains me to see Anderson Cooper rattled by the absurdity of debating crowd size.

Propaganda and distraction are the means to control the message. In timeshare this is accomplished by requiring relinquishing owners sign a non-disclosure agreement. This is common in any industry, but seems harsh when an elderly or vulnerable family has turned over sometimes their life savings because they believed they were buying the equivalent of a second home. The family will receive nothing when they relinquish. The developer takes back the contracts and resells for full value. Amounts from $50,000 to $100,000 are not uncommon. I dare not show them past levels of executive compensation which I believe are wildly inflated. Is it fair to silence?

I sent our controversial article to the Consumer Financial Protection Bureau with this note:

I know Senators Warren and Sanders are kind of busy right now, but I really think they should know our President is going into the timeshare business and one of his best friends for the last 20 years is the owner of Westgate who you have been investigating for a couple years.

What can be done about it?

help key

There seems to be a real disdain for confronting a problem with the preference being to deny the problem exits. In the media, I have seen masterful examples of answering a question by not answering the question. I have always said half a problem goes away when confronted. How CAN the timeshare problem be confronted?

Finally, a timeshare company listened!

Diamond Resorts has created a Consumer Advocacy Department that allows owners who have been victimised by rogue timeshare sale agents to contact their Consumer Advocacy Department at:

mailto: [email protected]

Often issues are related to miscommunication. Meaningful dialogue can work wonders. The entire industry benefits although timeshare lawyers may notice a decrease in their earnings.

Arizona Attorney General Mark Brnovich and his staff are working with Diamond Resorts to improve their business practices. Diamond is certainly not the only timeshare company that needs to improve.

OPC´s in Europe and the USA.

One of my favourite posts on my former Diamond Facebook was when an owner said Diamond needs to take the Blinkers off. Blinkers off? It’s a worldwide Facebook page so an American said the word we use is Blinders.

Timeshare needs to take its blinkers or blinders off and realize there is a problem with the timeshare industry and the continual conflict between timeshare developer lobbyists like ARDA, RDO and TATOC and timeshare owners and advocates. CRDA is not on this list because CRDA does have an advocacy arm. It’s called the National Timeshare Owner’s Association and it has been helping owners for over twenty years. Owners have available an “ASK CRDA” helpline that has operated without any interference from developers. But that’s Canada for you.

Too many senior citizens we used to call baby-boomers are being harmed by predatory marathon sales presentations repeatedly asking us to sign perpetual contracts with little or no secondary market.

Let’s wake up Timeshare!

The Arizona Attorney General has taken the first step by throwing out the oral representation clause in Arizona, or “license to lie” as timeshare attorney Mike Finn of the Finn Law Group likes to describe it. For years deception and fraud has gone on unchecked because of the oral representation clause. The oral representation clause is the start of a vicious circle that ends with the widely reported timeshare resale scam industry.

Is honesty really that hard?

 

reform

Inside Timeshare will continue to publish stories such as these, without them timeshare owners around the world will be kept in the dark. If you have any comments on this or any other article Inside Timeshare welcomes them. If you have a personal story on your experiences which you would like to share, contact us and we will get back to you. You Have a voice, use it!