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Mr. Nusbaum

Friday’s Letter from America

Welcome once again to Friday’s Letter from America, this week is Earth to ARDA, it is an open letter to Mr. Clements, Mr. Nusbaum and Mr. Roth, it is jointly written article by Eron Grant and Irene Parker. Inside Timeshare can also report that the US team have had three resolutions this week. Diamond  is Listening. So well done all the US volunteers.

justice2

This week has been a rather busy one for the courts in Spain, with three sentences from the Courts of First Instance, two from the High Courts and ruling number 90 from the Spanish Supreme Court.

Anfi have had three judgements against them this week two at the Court of First Instance and one at the High Court. In the first two, Court Number 3 at Maspalomas, GC found for the clients, declaring their contract with Anfi null and void. This case was highlighted in the Tuesday Slot with Irene on 6 March.

The second case, held at Court Number 4, again in Maspalomas, another Anfi member had their contract declared null and void. Ordering the return of over £15,000 plus legal interest.

In the High Court Number 5 in Las Palmas, the judge again declared an Anfi contract null and void, with the return of over £14,000 plus appeal legal fees and interest.

In the same court another timeshare company Airtours has had one of their contracts declared null and void, with the judge ordering the return of over 12,000€ plus legal interest.

At the Court of First Instance Number 4 in Fuengirola on the Costa del Sol, Club la Costa has been ordered to return over £19,000 including legal fees and legal interest. The contract was also declared null and void.

In the Spanish Supreme Court in Madrid, another historic ruling, bringing the total number made by the Highest Court to a whopping 90!

This was against the Tenerife operation Silverpoint, again the contract was declared null and void with the return of over £10,000 plus legal fees and interest. There will be full article on this and another Supreme Court ruling next week, so keep an eye on these pages.

All these case have been brought on behalf of the clients by the Arguineguin law firm Canarian Legal Alliance, no doubt the clients and the lawyers will be celebrating this weekend.

cla-brochure

In other news, we had an enquiry into another company contacting Club Class members, this call was from a Madeline Swann of Gateway Services, apparently based in Telford. In the call she is telling the client that there is a payment due from the banks for being mis-sold his Club Class membership. All he needs to do is pay a certain amount by bank transfer to a Santander account to have the money released.

Haven’t we heard this one before?

On searching for this supposed company nothing came up, no company house records, nothing. So if you get a call from this Madeline Swann or anyone else saying they are from Gateway Service, do let us know. Remember, there will not be any money waiting for you from the banks or the courts.

Now for this weeks Letter from America.

Protest photo

This photo was posted on a Diamond sponsored member Facebook page, but removed. If you see these members at a resort near you, please send them to:

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

Earth to ARDA: WE GIVE – ARDA ROC – A MILLION DOLLARS A YEAR. BLUEGREEN DOES TOO

TO: Robert Clements, Lobbyist and General Counsel, Regulatory Affairs,

Howard Nusbaum, ARDA CEO,

Peter Roth, media contact

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

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

Inside Timeshare will be following Platinum Diamond members Roy and Lillian Simmons as they make their way through Vacation Ownership’s highly regulated industry. Mr. and Mrs. Simmons are worried about losing their home, up-sold at age 69 and 70 to $2,700 a month in timeshare loan payments. They are one of 23 Diamond Platinum members alleging they were fraudulently up-sold into financial disaster. Roy and Lillian Simmons first submitted their demands to Diamond’s Consumer Advocacy Department on January 8. Tuesday’s article describes what happened:

http://insidetimeshare.com/tuesday-slot-irene-13/

Next, they filed a complaint with the Better Business Bureau the end of February. The BBB closed their complaint in two days because a Diamond Hospitality agent from the Diamond Consumer Advocacy Department responded, “They signed a contract.” As Mr. Simmons describes on the YouTube, they were told Diamond shares were going to go up and split and they could make $3,000 to $4,000 a week renting Hawaii points because Hawaii points are so valuable. Mrs. Simmons is too devastated to have taken part in the YouTube production. Fortunately, Mr. and Mrs. Simmons have a daughter. On March 6, their daughter Angela filed a complaint with the FBI at IC3.gov against three Diamond sales agents, one in Hawaii and two in Orlando. She also filed a complaint with the FTC. Today she will refile a complaint with the BBB again asking, “What?”

You can file a complaint with the weakened Consumer Financial Protection Bureau, but since companies like Diamond and Bluegreen service the timeshare loan, members don’t even know the name of the lender unless the borrower has a lower credit score. Quorum Credit Union handles the lower score people. You have to select a lender from the CFPB drop-down menu. Timeshare companies are not an option.

Onward with complaints, they will file with the Florida, Hawaii, Minnesota and Nevada Attorneys General. The Florida Timeshare Division only acted on 110 out of 2,360 timeshare complaints from April 2012 to April 2014. Then there’s the state real estate division in Florida and Hawaii against Diamond’s Hawaii sales agent John Jessup and Florida sales agent Rafael Carerra.

If Diamond won’t help them, it’s possible the Simmons will lose not only their vacation points, but also their home, according to their daughter Angela. Angela said the $2,700 a month Diamond loan is a significant portion of their retirement income. It’s doubtful any of the filings will have an effect. Angela is surprised all of this is like a ten hour a week part time job.

Like Kevin and Brenda Hopkins, the Simmons are supported by Whistleblowers of America, an organization dedicated to seeking justice for military and government workers.

https://whistleblowersofamerica.org/

Kevin and Brenda Hopkins describe their extraordinary sales pitch:

http://insidetimeshare.com/fridays-letter-america-39/

Some Peasants Revolt

By Eron Grant and Irene Parker

Friday March 9, 2018

meeting in office

Mr. Clements, Mr. Nusbaum and Mr. Roth,

We are educated professionals, two among thousands demanding accountability, transparency and respect. Two of 44 Timeshare Advocacy Group™ advocates who have listened to 326 Diamond members allege predatory sales tactics that has caused financial disaster for hundreds of families, the possible loss of Military Security Clearances, ruined vacations, ruined honeymoons, damaged credit reports, members alleging they were over promised and oversold on availability, the ability to sell points, pay maintenance fees with programs that do not exist, the ability to rent points and the ability to lower interest rates, as in the case of Active Duty Navy members Amanda and George Jones. http://insidetimeshare.com/tuesday-slot-irene-3/

Lawmakers are beginning to listen, a few Attorneys Generals are listening (not Florida or Nevada), regulators are listening, and the FBI is listening. ARDA is not listening.     

Sure, there are 9 million happy timeshare owners who own and enjoy their timeshare. They might not have been affected by a life crisis, only to learn their timeshare has no secondary market, or been sold or up-sold by a deceitful bait and switch. By your own accounting, 83% of timeshare owners are happy. That leaves 1,530,000 members that are not happy. Over 900 Diamond members complained to the Arizona Attorney General’s office accusing Diamond and their sales agents of violating Arizona’s Consumer Fraud Act. Complaints to our Advocacy Group have not diminished since Arizona Mark Brnovich issued an Assurance of Discontinuance. The AOD is linked at the bottom of the press release.

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

Early complainers consisted of over 1,000 British Diamond members crying foul.

DRIP Enjin: http://drip.enjin.com/

Our Diamond Resorts Owners Advocacy Facebook launched by an economics professor has over 1,000 members. It’s hard to find Disney Vacation Club complaints.  https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

Here’s what happened to Mark and Eron   

YouTube produced by Doctor and Ms. Mark Grant

Our Timeshare Nightmare of a Lifetime

https://www.youtube.com/watch?v=-FMk_45zRzk&feature=youtu.be

My husband Mark and I have kids. We are working professionals. We said we need to travel close to home. Our Diamond sales agents said, “No problem!” Grapevine, Texas Great Wolf Lodge sounded great! It was a bait and switch….

Most people don’t pull their kids out of school to take them to Great Wolf Lodge, so we searched Friday to Monday three nights:

April 6 – 9 Family Suite (6)

19,700 DRI points required @ $.22.5 maintenance fee $ = $4,432 for three nights.

As opposed to Booking.com April 6 – 9 Family Suite

 $819.97

101.67 ($33.89 per night service fee)

106.59 (13% tax)

$1,028.23 for three nights

This is not an ARDA’s Code of Ethics concern? I ask again:    

red dress

What ARDA Code of Ethics?

The ARDA Code of Ethics was designed to encourage an honest and fair competitive landscape for the vacation ownership industry, while upholding the highest forms of integrity, dignity and propriety.

Let’s review this Code. I actually read it.

Code of Ethics: Frequently Asked Questions

Question:  Why does ARDA have a Code of Ethics?

Answer:  ARDA and its members are committed to the highest standards and ethical behavior in vacation ownership. To demonstrate that commitment, all ARDA members as a condition of membership must agree to comply with the ARDA Code of Ethics. The Code consists of not only general conduct requirements, but also specific requirements for members to adhere to when transacting with consumers, standards for disclosure of information to the public, rules regarding resort management, base guidelines for resale activities, as well as administrative procedures for interpretation and enforcement of the Code.

Note from Eron and Irene: Diamond points have no resale activity. We think this is something a consumer might like to know before signing a perpetual contract.

Question:

What can be done to a (an ARDA) member whose actions are in violation of the Code?

Answer:  If a member is determined to be in violation of the Code (of Ethics), ARDA may take the following actions:

  • Privately or Publicly Admonish the Member
  • Prepare a Letter of Censure
  • Place the Member on Probation
  • Suspend the Member from ARDA Membership
  • Terminate the Member from ARDA Membership

Note from Eron: In addition to Diamond members giving ARDA ROC a million dollars a year, Diamond President Ken Siegel sits on ARDA’s Board of Directors. Diamond members are billed $7 for a “voluntary opt-out” donation from members who in all likelihood cannot even tell you what ARDA ROC stands for. I know I had no clue what the letters ARDA ROC stand for.    

Question:  Who do I contact if I have questions about the Code?

Answer: After reviewing the provisions of the ARDA Ethics Code, if you have questions, please call 407-245-7601 and ask to speak to the ARDA Ethics Administrator, or e-mail [email protected].

Note from Eron: After waiting 4 months for a response from Julie Schwartz (not Lobbyist and General Counsel Robert Clements because he would not take my call), I’m not feeling optimistic about making a phone call to ARDA’s Ethics Administrator. The fact you have to email customer service is not a good sign.

Note from Advocate Irene: I have sent ARDA about 100 of our most grievous complaints from Diamond Resorts members, seniors in fear of losing their home, military members in fear of losing their Security Clearance, alleging they were victims of fraud for profit. Not a word other than through the timeshare grapevine, “She’s writing articles for people.” No I’m not. I edit articles submitted to Inside Timeshare.

Inside Timeshare has received 340 reader complaints, 78 since January 1. Our Diamond Advocacy Facebook page has over 1,000 members, Bluegreen members’ Facebook 800 (they are trying to keep their membership below 800).

Question: Does ARDA support the consumer?

In our opinion, only when the issue at stake is in line with developer’s wishes. One Advocacy Group banned ARDA from attending their meetings after a 2015 Florida bill was passed making it more difficult to get out of timeshare contracts due to nonmaterial errors.  

https://www.redweek.com/resources/ask-redweek/arda-roc-donation-in-maintenance-bill

If the wishes diverge, lobby dollars go to work:

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

Question:  What does ARDA do with the information it receives from the general public regarding the potentially unethical conduct of its members?

Note from Eron: Nothing – My non-response from Julie Schwartz, ARDA-ROC Consumer Support representative serves as an example:

Answer:  ARDA does not mediate or arbitrate individual disputes between consumers and ARDA member companies. When we receive information regarding a potential violation of the Code we forward those complaints to the company for their consideration and resolution.

Note from Eron:  Who sits on your board and gives you a million dollars a year.

It is then up to the respective parties to resolve any potential dispute. Information submitted by the public may be used by ARDA to act against members when there is a consistent pattern of business practices that are in violation of the code.

Note from Eron: What about the 900 Diamond members who complained to the Arizona Attorney General? Better Business Bureau lists over 1,000 complaints.

Don and Irene Parker’s Diamond experience:

Like Eron, we purchased points for a specific location, New York City. Our daughter lives there. Like Eron, we learned it would cost approximately $8,500 in  Diamond maintenance fee dollars to stay one week at the same hotel, same time for $950 through an online booking service. I checked year round.

Next, we attended a predatory sales presentation at Diamond’s Grand Beach in Orlando. I spent three decades in sales selling everything from pianos to stocks and bonds. I know a predatory sales agent when I meet one. Thoroughly disgusted, we went back to our room at Mystic Dunes, turned on the television, and saw the Queen of Versailles, a FOX News Property Man segment about Jackie and David Siegel, the owners of Westgate timeshare building their 90,000 square foot home. We were in the process of moving from Kentucky to Venice Florida, so it just seemed natural to write an article called “The peasant of Venice and the Queen of Versailles” describing wealth out of touch with reality.

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

One true benefit of owning Diamond points has been developing relationships with other professionals, over 1,000 of us, who have bonded together like a band of brothers and sisters, to fight widespread timeshare corruption we feel is so ingrained in the timeshare industry, it is accepted and considered normal, kind of like #metoo or sexual abuse, as happened at Michigan State. Look how long that went on.

At least timeshare members are finding each other now, no longer silenced and isolated. When timeshare members need a voice, they can contact Inside Timeshare. We can help.

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/

 

If you need any information about this or any other article, company that contacts you or you have found on the internet or advertising in the press, then contact Inside Timeshare and we will point you in the right direction.

It pays to do your homework and due diligence before engaging with any company, not all are what the say.

Have a great weekend and join us next week.

weekend

The 3 R’s of Timeshare: Part 1

Today we start with the first of a three part article on what Irene calls the 3 R’s of Timeshare, although this first part begins with “F”.

In the US this is Foreclosure, which to those of us in Europe would just be Relinquishment or Surrender. What we have to remember in Europe is that for our American cousins, timeshare tends to be governed by Real Estate Law and financial agreements are usually associated with a mortgage rather than a personal loan or finance agreement. So foreclosure will be similar to repossession of your house for not keeping up with mortgage payments. Failure to keep up payment on a loan does not result in the timeshare being “repossessed”, as the finance is separate from the timeshare.

As for relinquishing or surrendering your timeshare in Europe, this very much depends on who you purchased with, some companies are better than others.

As a very good example of the bad, we only have to look at MacDonald Resorts, this particular company has been the subject of many press articles, including some published here on Inside Timeshare. This company is renowned for not allowing people out of their contracts even after death, so this means the children inherit the timeshare and the subsequent maintenance bills.

A very good case which Inside Timeshare has been working on is that of Mrs B, an 87 year old lady in ill health, who used a company to relinquish her contract. This was done by selling to a third party, MacDonalds refuse to accept this, stating they do not recognise the transfer, even though we have notary documents proving the transfer. Consequently they are pursuing Mrs B for arrears in maintenance, passing the debt onto a debt collecting agency who are threatening court action if it is not paid. Inside Timeshare is now lodging a formal complaint to the Financial Conduct Authority as the debt is “under dispute” and should not be chased by the agency.

This company also “offers” a limited number of members to hand in their timeshares every couple of years, but only on the payment of 4 years maintenance fees.

Another company that is renowned for being very difficult to get out of is Petchey Leisure, now owned by MGM Muthu. As far as they are concerned your contract is in perpetuity and that means never ending, so even your grandchildren will end up with the maintenance bills.

Diamond Resorts in Europe on the other hand seem to be getting their act together, for several years now they have allowed any member over 75 to hand back their membership. They also allow others to hand back in what they term as “exceptional circumstances”. These are the death of a partner, illness and financial difficulties. For those who do not fall into these categories they will allow surrender on payment of upto 3 years maintenance fees.

So now on with Irene’s Article.

The 3 Rs or F of Timeshare:

Part I Resolution, Relinquishment, Refund or Foreclosure

What will happen when you decide your timeshare decision was a mistake?

Part II: The 3Rs of Timeshare

Part III: 2 More Rs  – Timeshare Rentals and Resales

By Irene Parker March 28 

Contract picture

Except for failure to pay child support, there is no debtor’s prison. Anyone feeling desperate, angry, worried, ashamed or scared about their timeshare situation can rest assured they can put their timeshare troubles behind them through the 3 Rs or F of Timeshare.

The words I used above are how I describe timeshare members who have reached out to Inside Timeshare or to me through our Advocacy Facebook Page, burdened by high interest loan payments and rising maintenance fees. Our goal is to convert this owner into an informed and empowered owner.

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

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

Often, life without timeshare can be achieved without legal assistance, but we have a crew of able bodied lawyers there if you need them as a last resort. Advocacy works but has its limitations. All of our Advocates are unpaid, helping individual timeshare owners and members while working towards timeshare reform.

Last week we quoted Mr. Nusbaum’s feelings about the secondary market. Mr. Nusbaum is President and CEO of ARDA, the timeshare developer lobby.

“This is a legacy problem. People buying a timeshare today are buying it from multisite clubs that have management forever and sales teams forever, so the ability to recycle inventory will not be a problem in the future.”  June 2014 RedWeek

On the other hand, here is another Nusbaum quote from the same article sounding somewhat contradictory:

“The developer community is not without some dirt under their nails in this. We’ve created a business model that needs recycling. We want to help the secondary market. For self-perpetuity, it’s insane not to have a healthy secondary market.”

But most of all, according to Nusbaum, the long-term outlook is improving because the largest timeshare companies are developing programs that offer exit strategies for their owners. The complete RedWeek article:

https://www.redweek.com/resources/ask-redweek/timeshare-resales-arda-predictions

“Exit strategies” are voluntary surrender programs. Requests are evaluated case by case. It is difficult to determine how many requests are granted compared to the number of requests overall. Are these programs just media window dressing to make it look like the industry is responding?

Michael Kosor has worked with Nevada Senator Becky Harris in an effort to propose legislation that would allow better disclosure as to the limited, or sometimes non-existent, secondary market.  

“Actions by the timeshare industry, regulators, and legislators, are analogies to firefighters rescuing the elderly trapped in a burning building. Until the cause of the fire is identified, consumers will continue to be lured into these burning (defective) timeshare products that are not supported by a secondary market. While I applaud the rescue, we should not allow the industry and those responsible for consumer protection to hide behind said rescue efforts while they inexplicably fan the flames. Ambulance chasing fraudulent transfer agents is a back-ended solution – a Band-Aid reaction.”

Treating symptoms without studying the cause can be problematic for medicine or timeshare. The cause in the case of timeshare is the active destruction of the resale market for the benefit of immediate developer profits.

“Where are the association Boards we elected to represent our timeshare interests”?

“Owners clearly would like to see more done to advance and advocate for an improved resale market,” continues Michael. “Why is it our advocacy group is the only voice in this discussion? With the exception of a few legacy associations, virtually none of the industry affiliated associations have an active resale program available to owners to assist in exit and preclude foreclosure, if a voluntary surrender is denied”.

I approached my association a few years ago, the Wyndham Grand Desert, and was told “this was not their responsibility.” Instead, my (and most all) associations’ leaders throw owners wishing to exit (which we all do eventually) to the wolves of the current resale environment or transfer agents. They then enter into very lucrative repurchase contracts with and for the developers. These repurchase contracts provide the association pennies on the dollar of outstanding assessments, then give the developer very low cost inventory to sell as new to the next owner.

The real issue is not merely failing to fix the resale market. Worse, the industry is actively working to build the recycle model which requires the intentional undermining of the resale market. Advocate owners and members understand the cause and the fact the industry has no desire to fix the problem. It’s sad that we as advocates have to educate and walk the elderly, the ill and those burdened financially, through the foreclosure process when all else fails.

The developers consider themselves benevolent when they allow the surrender of a $25,000 to over $100,000 vacation plan in exchange for a surrender of zero value. As long as the vacation points or weeks stay in the hands of the developer, there is no free market system. Lenin would be proud.

Back to the 3Rs or F of Timeshare

We want to avoid the F for foreclosure, but for some owners there is no choice.

Let’s get this last and most unpleasant option out of the way so we can focus on more positive outcomes.

Where do we start? Pull out all those documents and start digging!

Magnify

I hear a lot of “I think” or “I’m not sure” when I ask the following questions:

  • When did you first buy your timeshare?
  • Where did you buy your timeshare?
  • How many points do you own?
  • What was the sales agent’s name?
  • What interest rate are you paying if you have a loan?
  • What do you want to happen?

We begin at the end – Foreclosure

If a member has an otherwise unblemished credit score, he or she can work to have the reason for foreclosure added to a credit report.  I asked timeshare attorney Mike Finn of the Finn Law Group some questions about the foreclosure process.  We use one unnamed resort as an example, but the procedure is similar to all timeshare companies. A common question is:

Will the timeshare company try to ruin my credit for non- payment of maintenance fees loans or both?

Mike Finn: Generally no credit reporting on maintenance fees, yes they do on “mortgage” payments. Most timeshare property owner associations, which are separate non-profit entities, do not report non-payment of maintenance fees largely because they don’t maintain subscriber contracts with the credit reporting agencies. However, once referred to collection, those agencies do maintain subscriber relationships and that’s where the issue becomes relevant.

Can or will members be taken to court for non-payment of maintenance fees loans or both?

Mike: Can yes, will, maybe not so much

Do they place liens for non-payment of loans?

Mike: Yes in the sense that they do pursue foreclosures, yes for maintenance fees as well.

Do they place the lien just on the timeshare? In other words, does the lien apply just to the timeshare, or does the lien apply to a member’s primary residence as well?

Mike: The word ‘lien’ can be utilized in more than one way. In the timeshare world it typically means the security interest filed against the timeshare itself by virtue of nonpayment of maintenance fees. Only the timeshare interest itself is impacted by that kind of lien, not the owner’s property beyond the timeshare. A mortgage lien on the timeshare caused by non-payment of the initial purchase price can, under certain circumstances, become a judgment which could be satisfied by going after the defaulting party’s personal assets. This very rarely happens, but it has happened, so we can never, say never.

Is it advisable to just stop paying fees without the aid of an attorney?

Mike: It really does depend on your ability to endure collection calls, letters threats, and a foreclosure on your credit report is quite damning, it will make refinancing or new residential purchases an issue for about 5 years. Rarely will they sue for deficiency balance.

http://www.finnlawgroup.com/learning-center/can-a-timeshare-hurt-my-credit-score

http://www.finnlawgroup.com/english/learning-center/page-12

According to Charles Thomas, here is how it works in Europe

This resort employs a debt collection agency, one they use is called Daniels Silverman, the debt is passed on to them (usually sold), they now own the debt and will threaten court action – whether they will is another matter. If this does occur, then yes credit rating will be affected as it will then be a County Court Judgement and failure to pay will result with the court bailiffs being sent in to recover either cash or goods to the value. Only they have the right of entry into the home.

As for a loan, if it is with a third party i.e. Barclays Partner Finance, any failure to keep up payments will result in County Court action as above and credit blacklisting.

It is advisable to seek advice from an attorney before just stopping any payments, as by doing this the debt cannot be passed on to an agency as under the Financial Conduct Authority regulations. The debt can be classified as “under dispute”.

According to the Canarian Legal Alliance CLA, when the firm takes on a relinquishment with a loan attached, they also try to have the loan agreement cancelled.

It is advisable to completely check any company that offers relinquishment services, as this is an area which is fraught with con artists.

Below is our Inside Timeshare article on debt collection with links to various authorities, it also includes a list of those resorts who employ debt collectors and a list of those who have taken people to court.

As Charles Thomas reported, Europe maintains a thriving timeshare foreclosure and collection industry as well.

http://insidetimeshare.com/maintenance-arrears-debt-collectors/

Our Advocates, relying on their experience and expertise, are here to evaluate and work together, each bringing a piece of the puzzle to help you find your answer.

Conference table

Next week we continue with Part II – The 3Rs of Timeshare:

Resolution, Relinquishment, Refund

Part III – The 2Rs of Timeshare – Rentals and Resales

Contact us today if you would like to share your story or work with us by becoming a Timeshare Advocate.

http://insidetimeshare.com/friday-letter-america/

Thanks to Irene, Mike Finn and Michael Kosor for their contribution.

As you already know as owners of timeshare, whether in Europe or across the “Great Lake” in the US, once you purchase timeshare, getting out of it is fraught with obstacles. It does depend on who you own with, some are better than others. In Europe, Spain is leading the way with timeshare law, it is giving “consumers” more protection, making it easier to get out.

Inside Timeshare hopes these articles are of benefit to you the owners, that only through coming together and sharing information can we hope for any change in the industry.

If you have any questions or want to share your experience contact Inside Timeshare or join the Advocacy FB page.

 

The Friday Letter from America

Back in January, Inside Timeshare published Irene Parker’s article Attorneys General and Timeshare under Trump, This was at the time of the now President Trump’s inauguration. In the introduction, we broke the news to our US readers of the plans  Mr Trump had going through planning in Scotland, for a second golf course and the increase in the number of timeshare apartments.

This apparently came as a big surprise to our American readers, it would seem they had no idea that he was also involved in “timeshare”.

Below are three links to two major UK daily newspapers, the last link is around 9 months old, but shows the opposition that Mr, now President Trump faced from local people. In this particular article is the story of a quarryman who refused to sell his home to Trump, who described him as a “disgrace” for not wanting to sell him his “pigsty of a home”. I don’t know about you, but in the UK and especially in Scotland that type of remark about someone’s home is a total insult.

http://www.independent.co.uk/news/world/americas/donald-trump-organization-golf-links-resort-scotland-aberdeen-conflict-interest-a7534596.html

https://www.theguardian.com/uk-news/2016/dec/22/planners-reject-donald-trump-revised-plans-scottish-golf-resort#img-1

https://www.theguardian.com/us-news/2016/jun/23/donald-trump-faces-wall-of-opposition-as-he-returns-to-scotland

Now to Irene’s article.

What is ARDA-ROC Doing Today? An Analysis

By Irene Parker – March 24, 2017

torch

After reading the March article “What is ARDA-ROC doing today?”

http://resorttrades.com/what-is-arda-roc-doing-today/

It seems a good time to revisit my $7 “voluntary” donation to ARDA-ROC. The word voluntary has a nice ring to it so for years when paying our maintenance fees, if I was asked if I would like to make the voluntary donation to ARDA-ROC, I said, “Sure.” Since then I have learned too much to ever answer in the affirmative again, unless proven wrong.

According to Lisa Ann Schreier, the ARDA board only lists one timeshare owner. Of the 23 board members, included are Frank Goeckel, Diamond Resorts, recently departed with a $2 million handshake and Franz Hanning, departed after the Trish Williams $20 million Wyndham Whistleblower verdict with a $3.4 million handshake.

http://www.ardaroc.org/roc/about/default.aspx?id=1354

Of the $816,068 ARDA made in political contributions, 74% went to Republicans and 26% to democrats. This breakdown was also provided by Lisa Ann Schreier:

https://www.opensecrets.org/pacs/lookup2.php?strID=C00358663

Like it or not, timeshare is all about politics. President Trump, or his family, is going into the timeshare business. Pictured to the left of President Elect Trump is long-standing friend David Siegel, owner of Westgate timeshare. Given the current political climate it would not surprise me if the Consumer Financial Protection Bureau halted their investigation of Westgate. The CFPB was spearheaded by Senators Elizabeth Warren and Bernie Sanders. That’s the organization that helped the Wells Fargo victims.

trump
David Siegel seated to the left of Donald Trump

As Charles Thomas of Inside Timeshare previously reported,

“Well it is actually quite simple for those in Scotland, back in 2008 there were some very heated debates over Mr Trump’s plan to build an 18 hole golf course and resort in Balmedie Aberdeenshire. This met with considerable resistance from the local people, but eventually Trump won through.

The original plan was to build a 450-room hotel, a second golf course, 500 luxury homes and 900 timeshare apartments along with a second 18 hole golf course. In a recent article in The Guardian newspaper these plans now intend to double the number of homes and timeshare apartments”

Whether you are or were for or against now President Trump, it is clear he is on the side of the timeshare developer which has become a battlefield pitting owners against developers.

Now to our main attraction:

What is ARD-ROC doing today?

A breakdown for soundbite reading and request for more information:

In a perfect world the only thing ARDA-ROC would be doing today would be writing checks, sitting back and relaxing. But, it’s not a perfect world and so a typical day for Chairman Ken McKelvey goes something like this:

ken McKelvey
Ken McKelvey

It is a Thursday and McKelvey started his day discussing a new wrinkle in the South Carolina transfer legislation that ARDA-ROC has been proposing.

I believe this is South Carolina House Bill 3647 tightening the language of timeshare transfers. In our last article we reported how the nature of the perpetual contract, rising maintenance fees and little or no secondary market spells a disaster for aging original owners if denied a voluntary surrender.

That was followed by a conference call regarding the proposed United States Virgin Islands timeshare fee.

This does sound like a benefit for owners because an extra $300 slapped onto an exchange seems exorbitant.

The day before was loaded with details regarding a Saint Maarten Parliament Timeshare Ordinance and its potential impact on consumers.I know nothing about the Saint Maarteen Parliament Timeshare Ordinance but it sounds ominous.

Along with a final draft of legislature in Florida regarding the sunset clause to help legacy properties gain reasonable voting requirements to extend into the timeshare agreements into the future. Whew.

This is Florida House Bill 818 concerning a reset to continue beyond the sunset provision.

And he’s just a volunteer who is happy it is not Monday.

The ongoing operations of ARDA-ROC is both reactive and proactive; on one hand they react to any proposed legislature, dealing with real estate or tourism proposed laws that have any tentacles that could possibly affect timeshare and on the other hand they write and lobby for legislature that could help timeshare owners.

This lobby effort sparked outrage among owner advocates. Did my $7 go to this effort?

“The bills (House Bill 453 and Senate Bill 932) have been sponsored by two politicians from Central Florida — deep in the heart of time-share country: Rep. Eric Eisnaugle, R-Orlando, and Sen. Kelli Stargel, R-Lakeland.

Both politicians have received money from time-share interests — an industry that showers cash on Florida politicians and committees, including $300,000 to the Republican Party of Florida and $150,000 to the Democrats,” reported Scott Maxwell for the Orlando Sentinel.

http://www.orlandosentinel.com/opinion/os-florida-timeshare-tactics-scott-maxwell-20150411-column.html

Throughout the year, ARDA-ROC has lobbyists on retainer in up to 25 states, and territories, and who according to McKelvey “we HOPE the only thing we ever hear from them is an invoice.”

These lobbyists monitor and pick through every piece of proposed legislature with a fine tooth comb, seeking things that are rarely specifically spelled out to say timeshare, but could be interpreted to have grand impact on it.

This from Advocate Michael Kosor:

The “fine tune comb” can be seen in the Nevada State Bill 195 that would have allowed an Association Board to terminate its management contract (the most important and costly agreement a board oversees), issued to them by the developer, without obtaining a majority owner vote – an impossible effort. ARDA-ROC identified the change and successfully lobbied to have it removed.  This was clearly an owner friendly provision the industry did not support.  Lobbyists (of ARDA and ARDA ROC, they use the terms loosely and interchangeably) suggested (vaguely and without discussion despite being an absurd assertion) the original language was “intended to protect timeshare owners” and should not be changed.

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