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Resort Properties

mond

The Monday Briefing

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

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

number no longer in service

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

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

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

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

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

Compensation_Cheque-page-001

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

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

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

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

Some facts.

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

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

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

search

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

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

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

freedom of speach

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

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

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

Follow the link to the new Timeshare Users Group Forum

https://www.timeshareusersforum.com/

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

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

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

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

homework

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, we continue with another chapter from our traveling writer David Franks, this week it is entitled Miami Vise, edited by Irene Parker. But as usual we begin with some news from Europe.

eu news

Back in May Inside Timeshare reported on some very nasty events in Tenerife, this involved the former Wimpy resort Los Claveles, which was subject to a management buyout by Ivan Pengelly in 1998. Over the years the resorts operated by Wimpen (Wimpy Pengelly) had very good relationships with the owners and the owners committee, this all changed when Pengelly sold out to the Ona Group. (see previous articles).

But there may just be a glimmer of hope on the horizon, it was announced this week that the arbitration process has completed and a judgement has been made. It is in total favour of the owners committee, that the Ona Group, Wimpen and the FNTC, are all in the wrong. The owners committee is legally constituted and has all the rights to run the resort. This means everything must be handed over to the committee, that Wimpen (Ona Group) have no right to collect or demand maintenance fees.

It now just needs to be seen if these companies comply with the Arbitrator, if not the committee will then have to resort to the Spanish Courts to enforce the judgement. We wish them all the very best and hope that this sorry tale will be over very soon. More on this as and when new information comes in.

http://insidetimeshare.com/los-claveles-return-bad-days-timeshare-tenerife/

http://insidetimeshare.com/los-claveles-battle-goes/

http://insidetimeshare.com/horror-weekend-los-claveles/

Now for some news which is proving to be rather disturbing.

Justice4 the claims company owned by Lee Roy Pallister, which went bust recently but re-emerged as Hello Consulting and Tucola Ltd, with his wife as named director, has been taken over. Could this be good news for all those clients who paid Justice4?

Unfortunately that may not be the case, the take over is by ABC Lawyers, yes, you did read that correctly. Mark Rowe of Monster credits, Hollywood Marketing and Jive Hippo fame is now owner of the former Justice4!

http://insidetimeshare.com/monster-credits-associated-companies-summary/

Loyalty: No Such Thing in Timeshare

The TCA (Timeshare Consumers Association) whole heartedly endorse this, not surprising considering the TCA is also owned by Mark Rowe.

What also has to be remembered is Mark Rowe was at one time a senior sales manager for Resort Properties / Silverpoint under Mark Cushway, now look at the history of that company! Also Lee Roy Pallister is another ex-timeshare salesman. We leave it up to you the reader to decide what the implications of this will be. We think we already know what they are likely to be!

Yesterday Inside Timeshare published an article about Anfi, just after publication, news came in of a sentence which had been issued by the court, it would seem that even though it is August some people are still working.

Another loss for Anfi, at the moment we do not know the infringements ruled upon, but it is more than likely the usual, either perpetuity, floating weeks or points. In this case the ex-member has been awarded 37,224€ plus the legal fees and the court also awarded back all maintenance fees that had been paid.

Do you still believe what Anfi say, that they are not losing any court cases?

Now on with this week’s Letter from America

Our DRI Misadventures

Chapter Four: Miami Vise

miami

By David Franks

August 11, 2017

For background, you might wish to read the first three chapters:

Chapter 1: Vegas, Baby! — http://insidetimeshare.com/fridays-letter-america-5/

Chapter 2: Missouri Loves Company — http://insidetimeshare.com/fridays-letter-america-10/

Chapter 3: Stand Back. These People are Professionals  —http://insidetimeshare.com/fridays-letter-america-12/

(You might not. The annoyance is epical.)

April 2016 arrived. Never mind the showers; my lovely wife and I were going on a Diamond Resorts International Dream Holiday to Miami, Florida and the western Caribbean!

We started the adventure on Tuesday, April 5. I shall note at the outset that it was road and bridge construction, not DRI that turned the drive to the airport into a slightly mobile parking lot.  XNA in Bentonville, Arkansas is a lovely little airport.  It is expensive to fly in and out of XNA, but the cost was covered in the Dream Vacation package.  Score two for DRI.  Keeping their intervention to a minimum works wonders.

We arrived in Miami without incident, unless changing planes at the Houston airport is an incident. We made our way to the Penguin Hotel in Miami Beach, a nice old place on Ocean Drive in the historic South Beach Art Deco District. We had selected the hotel because of its age, and because it was possible (though not easy – see Chapter Three) to get an ocean-view room.

We arrived at the hotel to find that we did not have a room there. Somebody from DRI had decided to “upgrade” us to a brand-new room in the President Villa, a newly-remodeled building. We talked to a couple of hotel managers, met a couple more concierges, and confirmed that our reservation for an ocean-view room was in underlined capital letters in their reservation book.  Having been made aware of their faux pas, the helpful DRI people attempted to mollify us with a $100 certificate for dinner at a rather nice little bistro (double the regular value of $50). We were not mollified, but we accepted the certificate.

Unfortunately, we would not be able to have the favor of their “upgrade” corrected immediately, as there were no rooms available in the Penguin until the next day. So, guided by a helpful DRI minion, we excursed from the Penguin along a dismal alley route to the President Villa, a former office building next to the President Hotel on Collins Avenue. The conversion to residential use was not impressive. Our room was so awkwardly designed as to be uncomfortable; the bathroom would not have been even adequate for a modern resort guest. The ocean view I had struggled to get was of course not available, and the slight smell of fresh paint was no compensation. When we compared the President Villa to the Crescent Resort – and even to the dinged-up but charming Penguin – we felt that we were being treated as second-class guests.

On the other hand, the President Villa – despite its lack of accoutrements consistent with a nice hotel – did offer, under the same roof, exotic car rentals and the services of a psychic/fortuneteller.

gypsy

While we were unable to see the ocean, we were able to see from our window an endless stream of people taking selfies standing next to or sitting in Ferraris and Lamborghinis, presumably with permission.  We declined the opportunity to have a tarot reading, as we already suspected that our future with DRI was not becoming less bleak.

We trundled back over to the Penguin the next morning and took possession of our ocean-view room in time to attend a luncheon provided by DRI prior to a mandatory “buyer update” meeting that afternoon.  The luncheon, set up in the lobby of the Penguin, was actually rather pleasant (DRI managed to not interfere), and we met a few Diamond Resorts members who made a good show of not seeming like victims.

We eight or so members then went next door to the Crescent Resort and up to the penthouse, where over the course of a couple of hours we were told a couple of things that started out interesting but have since turned out to not be true: that, as Gold and Platinum members, we would be receiving a tablet computer preloaded with DRI-related software, which would enhance our owner experience; and that DRI was looking at adjusting maintenance fees based on actual resort usage, which would reduce some members’ fees (“Like ours?” I asked. “Like yours,” they said) because there’s no need to pay so much to maintain facilities one doesn’t use. Oddly enough, they didn’t try to get us to buy more membership, but they did make us stand around on the roof deck for quite some time for no apparent reason.  Particularly given the lack of veracity of the “buyer update”, we would have been better off using the afternoon thus occupied for sightseeing instead.

[Note from Irene: Maybe they read Chapters 1, 2 and 3?]

Our only interaction with a DRI concierge as such was an attempt to find the nearest Walgreens where we could get a prescription filled. He didn’t know, and he guessed wrong.

We had a good time during the remainder of our stay in Miami Beach. We had a nice bus tour, visited Calle Ocho, and enjoyed the meal at the bistro, which ended up costing a little over $100. The Penguin is a perfectly good hotel if your expectations are in line with what an old hotel has to offer. The room was fine – its ocean view was just as good as from a newer hotel – and its cafe provided a good breakfast. As it turned out, we were not charged for the upgrade to an ocean-view room. I hope the Penguin didn’t end up eating a loss caused by DRI’s interference.

group

Important points this week:

  • Although I will not attribute the change in our room reservation to malice or perversity (but what’s left?), I will note that I had explained at some length our interest in the Penguin as a historic hotel as well as our interest in an ocean-view room to everybody I talked to, and our reservation had been emphatically logged.  Calling the change an “upgrade” was a little perverse, however.
  • The Crescent Resort is a DRI property. The Penguin Hotel and the President Hotel are “Club Affiliated” properties.  DRI does not mention the President Villa at all; apparently they prefer to surprise unsuspecting guests with it.
  • Renovation tip: never hire DRI to oversee or approve of a building makeover.
  • Except for the meddling in Miami – which was the only real opportunity DRI had to screw things up –  the Dream Holiday, once underway, went well, despite the fact that it involved a seven-day Carnival cruise (which, apparently amazingly, came with an ocean-view stateroom).  My lovely wife and I thought the Dream Holiday was a good value at 7,500 points, and we saw no need for DRI to misrepresent the potential retail value of the hotel room.
  • Subsequent mentions of the tablet computers and the purported maintenance-fee adjustment to DRI customer service indicated that DRI had never discussed them with the front people at all.  Upon escalating the issues, it turned out that the tablets were supposedly an inducement for brand-new members, rather than an amenity for existing members.  One of the people I talked to said it sounded like I should get a tablet, and he would check into the matter and get back to me. (He never did.)  Based on several reactions at escalated levels of customer service, the supposed maintenance-fee adjustment was a total fabrication.
  • More concierges!  (DRI seems to be a tad lenient in bestowing the title of “concierge”, if my understanding of the office is correct.)

plane

Well, there you have it. David Franks, our intrepid travel writer, is safely back home no doubt planning his next Diamond adventure. Contact Inside Timeshare if you would like to share your Airbnb, Diamond, Bluegreen or Wyndham travel experiences. Canadian postings tell us Diamond is allowing some users to use their Diamond points to book AirBnb. As they say, if you can’t lick them, join them. More on that as we investigate further.

Contact Inside Timeshare or Diamond and Bluegreen member supported Facebooks if you would like to become an Inside Timeshare contributor.

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

This Bluegreen Facebook page of 1,670 members, Sales Team Reviews & Update/Sales Presentation Experience, is for the benefit of the members, corporate Bluegreen personnel and sales agents working towards a more honest and transparent sales process.

https://www.facebook.com/groups/1718664518412381/

This Bluegreen Facebook page seems to be a sort of self-help Facebook for members helping members.

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

So there it is, the end to another week, Inside Timeshare again thanks all contributors to the articles, we also thank those who have sent in details on their dealings with some of the companies that have featured. Without that information it would be difficult to give you the facts.

Have a great weekend and join us again next week for more news and truthful facts on the murky world of timeshare.

weekend02

loyalty

Loyalty: No Such Thing in Timeshare

It never ceases to amaze us the lengths some will go to bamboozle you the poor consumer, but this one really takes the biscuit.

Timeshare Compensation has placed a blog on their website and facebook page, asking Why has Silverpoint changed its name to Signallia?

https://www.timesharecompensation.co.uk/silverpoint-changed-name-signallia/

It then explains that Signallia is stepping away from the timeshare industry and selling the new product “Keys Concierge”, which Inside Timeshare highlighted some time ago. This product is a “lifestyle membership club”, offering stays at the former Silverpoint resorts, it also boasts that they will carry out personal concierge services so you don’t have to bother.

http://insidetimeshare.com/keys-concierge-another-credits-based-lifestyle-company/

Another factor is as a member you will receive savings and discounts from the likes of Marks & Spencer, Top Shop, Sainsbury’s to name but a few, the thing is how genuine are these? We know that Robert “Bob” Trotta has a significant stake in this enterprise, with the director one Franz Markus Deutsch, a former Resort Properties / Silverpoint sales manager who worked with Mark Cushway, who is now the CEO of Signallia, so old comrades come together. (See links to the original articles below)

Now Timeshare Compensation in their blog is warning about this company, about their “dodgy” past and that they may have changed their name and the product, but may not have changed their ways. But who is Timeshare Compensation?

Well you will never believe this, but they are the trading name of ABC Lawyers, which is a company that belongs to one Mark Rowe!

Mark Rowe of Monster Credits, Sellmytimeshare.tv, Hollywood Marketing SA, Jive Hippo and many others, is guess what, a former colleague of Mark Cushway at Resort Properties / Silverpoint!

So is that the pot calling the kettle black?

Old comrades now sniping at each other, for what?

Loyalty, there is no such thing in the murky world of timeshare, the only thing that any of these people are loyal to, is your money!

stab back

So what is the moral of this little tale? Beware who you do business with, do your homework, you know it makes sense.

http://insidetimeshare.com/new-name-company/

http://insidetimeshare.com/latest-silverpoint-signallia/

 

tatoc logo liquid

TATOC Gone: Kwikchex Set Up New Helpline

So that is the end of TATOC, The Association of Timeshare Owners Committees or the so called Timeshare Association, it is now official that as of 20 July 2017 they are now in official receivership. Harry Taylor and his little empire is no longer, they were unable or unwilling to pay off their debts, according  to TESS who brought the action, the court asked three very simple questions:

  1. “Have you paid your debts”?
  2. “Will you be able to pay your debts”?
  3. “Do you intend to pay your debts”?

As the answer was NO, the court had no other option than to place TATOC in the hands of the Official Receiver.

man_debts
Wonder who this is?

This will be a big blow to ARDA (American Resorts Development Association) who at the beginning of the year during the TATOC conference presented Harry Taylor with a cheque for $30,000 as a contribution for the TATOC helpline.

We have reported before that TATOC was not really on the side of the consumer, how could it be? It was funded by the very industry the consumer had problems with!

Just look at the relationship Harry Taylor and his TATOC team had with MacDonald Resorts, a company that even the RDO had not had any relationship with since 2005!

MacDonald Resorts pursued an aggressive policy of taking over fixed weeks, converting those owners to the points system, which even owners did not want. Harry Taylor ran a campaign stating that this was the best way forward, that it was in the best interests of the owners.

Harry Taylor
Bye Bye Harry and good riddance!

The question is how was it in the best interests of the owners? By changing to the points system from their fixed weeks, which gave them very strong rights, they effectively gave control of the resorts to MacDonald’s. Overnight they changed from being owners with the right to set maintenance fees, employ the management company and basically run their resort, to mere members with no rights whatsoever. Just the right to use subject to availability.

It now transpires that Kwikchex has set up a consumer helpline of their own, this has been announced by the RDO on 24 July. This seems to be part of the Timeshare Task Force, the question is how will this be independent advice considering that they are also funded by the RDO?

task force
The Timeshare Task Force!!!!!

According to the RDO announcement this new consumer helpline will be offering assistance and advice about any company that is not an RDO member. What about offering assistance and advice about their own members, after all most of the problems are with the resorts and developers themselves.

The fact that owners / members who are having problems with their own resorts are left on their own as the RDO will not intervene in any dispute, this leaves those owners with nowhere to turn. This in itself leads to those unscrupulous companies to feed off the vulnerability of owners who either want to sell or just want to get out of their timeshare. The industry itself has created the “scam” market because of it’s own inability to deal with the issues, disputes and resale markets that owners need. Their own greed has been their downfall!

For years, timeshare has been sold, especially in Spain, with total disregard for the laws set in place to protect consumers, this has resulted in hundreds of court cases,along with Supreme Court rulings enforcing the laws that they have themselves flouted. Only last week, a recent ex-member of the RDO, Resort Properties / Silverpoint had five rulings against them in one day.

The RDO themselves have backed up the resorts against these rulings, believing that the judges have interpreted the law incorrectly, (see link).

http://insidetimeshare.com/rdo-trying-scare-anfi-timeshare-owners/

If the industry is to survive, it needs to change how it operates, it needs to listen to the concerns of the owners / members, the very consumers who pay for it, not just chase those companies bogus or legitimate who decline to join their little club. After all, why would law firms such as Canarian Legal Alliance or JCLA & AS pay for membership when it is those members they are taking to court?

We have said this on many occasions, timeshare could be a good product, many have had many happy years of ownership, especially with those resorts that valued their custom. One has to only look at recent events at Los Claveles, for years those owners had no complaint, until Wimpen sold out their management rights to the ONA Group, then it really turned nasty.

The time for change is now, the industry cannot police itself, it is self serving, the likes of Kwikchex running a consumer helpline in the interests of the industry is a farce. There are very few places consumers can turn for truly independent and valuable advice, it has become an even bigger minefield.

If you have any questions or concerns about any timeshare matter, contact Inside Timeshare, if we don’t know the answer we will find it for you. These pages are read worldwide, we are bringing owners together from the USA, Canada, Australia and the Philippines adding more as we go, through their articles and contributions you will find you are not as alone as you think.

transformation-and-change

 

letter from canada

Friday’s Letter From Canada

Welcome to the first Friday’s Letter From Canada, Inside Timeshare is pleased to give a warm welcome to Club Intrawest Owners Group who have contributed this week’s article. As Usual we start off by looking at the European timeshare scene.

At the moment, which is nothing unusual for this time of year as it is rather quiet, that will change after the summer holidays when the maintenance bills start to arrive. That is when we start to see a lot of new or resurrected bogus companies start to appear.

bogus clipart

On the legal front, the courts in Spain have been very busy, with an almost daily announcement of cases being resolved. At the moment there seem to be two companies in the firing line, Anfi in Gran Canaria and Resort Properties / Silverpoint in Tenerife.

Anfi, which was the dream project of the late Norwegian Bjorn Lyng, who wanted to build a resort which was pure luxury, has for some time been on the receiving end of many claims for breaches of the timeshare law.

Many of these, involve the taking of deposits within the statutory 14 day cooling off period, contracts with a duration of more than 50 years and the floating weeks and points systems.

This week the Court of First Instance in Maspalomas has ruled on two case to the value of 44,131€ and 35,485€ respectively. In both cases the contracts have been declared null & void.

Resort Properties / Silverpoint have also had several rulings against them this week.

The first was at the Court of First Instance in Arona Tenerife, the judge ordered the return of £22,736, this was followed by a Supreme Court ruling with the judge ordering the return of 37,400€.

Tenerife

We then had another Court of First Instance ruling of around 25.000€ and as we go to print our sources in Madrid have informed us of another 3 rulings by the Supreme Court. At the moment we have no idea of the amounts involved, but we do know that all contracts have been declared null & void.

On the fake law firm front, one gentleman has had lucky escape, he received correspondence from Armando Gareca Abogados, part of the Litigious Abogados family, who we highlighted sometime ago. He received notification to pay the initial procurador fees to get the case into court, but something made him suspicious. He did a search on the internet and found the articles posted on this website about them.

Needless to say he realised he was about to be the victim of an elaborate scam and has not gone ahead. He sent a message of thanks as this has saved him not only a substantial amount of money, but a lot of stress. This does go to show that you must do your homework before engaging with any company, especially if they have contacted you with a story that sounds too good to be true.

homework

Tauro Beach

The Anfi man made beach project.

It has been awhile since we had any news on this sorry subject, so here is the latest.

As we previously reported the beach has been fenced off denying access to the public, with security guards and police removing anyone who entered the beach. Although recently massive crowds have flocked to the area in defiance, a new strategy has now been implemented.

This new move has also had the impact of denying access to the homes of people who live there, all paths and access roads have now been blocked with rocks and other implements. Videos and photographs have been posted on facebook by one resident who has been campaigning against this project from the start and also published in laprovincia a Spanish newspaper.

This is another example of how a timeshare company behaves, not just to it’s own members but to the local community. It is also an example of how elected authorities view the people they are supposed to serve. Please show your support for the people and post your comments on the links.

Follow the links to view the posts from this local resident and the La Provincia newspaper.

http://www.laprovincia.es/gran-canaria/2017/07/20/grupo-anfi-cierra-acceso-playa/961620.html

https://www.facebook.com/naiana.rguezllavata/posts/1491927374183912

https://www.facebook.com/naiana.rguezllavata/posts/1492232357486747

Now on with our latest contributors.

Club Intrawest v. Canada

Club Intrawest (Embarc)Timeshare

Must Pay Millions in GST Back Taxes

Following Recent Federal Court of Appeal Decision

gavel

July 21, 2017

On July 11, 2017, In a decision that will likely affect all timeshares and owners of timeshares with properties located in Canada, the Federal Court of Appeal set aside the Tax Court of Canada’s decision in the case of Club Intrawest v. Canada. In doing so, the Court of Appeal substituted its own decision to refer GST assessments back to Canada Revenue Agency for reassessment of GST just for services supplied in Canada in relation to vacation homes situated in Canada.  Federal Appeal Court Judges Nadon, Gauthier and Dawson agreed with the Tax Court’s finding that a principal-agent relationship does not exist between the club and its 22,000 members. This decision also confirms that members of Club Intrawest (now re-branded Embarc by Diamond Resorts International (DRI)) do not hold beneficial ownership in the real estate and equipment in vacation home resorts and do not control the Club.  The Court found that members merely own a right of occupancy in exchange for their resort points. This contradicts sales presentations, financial and marketing materials by Intrawest Corporation (“Intrawest”) and now DRI, to the effect that members have beneficial ownership of vacation homes and control the Club through election of the Board of Directors, responsible for managing the Club’s operations.  The ruling will require the club to pay reassessed GST back-taxes for tax years 2002-2007. The GST/HST tax liability for tax years 2008-2016 is unknown at this time.  All timeshare owners with vacation homes in Canada may be impacted by this decision and may also see themselves assessed for back taxes on the supply of services in Canada related to vacation homes situated in Canada.

“Based on a detailed survey answered by more than 400 members, I expect that the majority of our members will be shocked and disappointed that the court found that members have no beneficial ownership in the vacation homes.  About 79% of them remember being told by Intrawest and DRI sales representatives they would own a real estate interest in the resort properties. About 91% of members also remember they were explicitly told that members controlled the Club and that resort properties were vested in a trust for the benefit of members. The Federal Court of Appeal now tells us that no evidence was produced that ownership of these homes has been vested in a trust for the benefit of members”, says Patrick Cormier, Volunteers Team Leader of the Club Intrawest Owners Group (Embarc), (CIOG) a grassroots movement of over 3400 members.  “However, it seems clear that the Intrawest/DRI-dominated Board of Directors anticipated the GST liability all along since it began accumulating a C$14 million reserve from members’ resort fees under a 2011 Board resolution without informing members until the CIOG raised the GST issue with the Board in 2016”.

Club Intrawest was established by Intrawest Corporation in 1993 as a stand-alone not-for-profit Delaware corporation, but with Intrawest in a controlling position. Intrawest ensured they had control of the Club in several ways, including by granting themselves (as “Declarant” member) a 15 times voting power advantage over individual members guaranteeing Intrawest and now DRI, ongoing and complete control over all aspects of the Club.  In addition, Intrawest and now DRI voted in their own employees on the Club’s Board of Directors to maintain a controlling majority on the Board, hired themselves as manager and pay themselves a guaranteed 10 to 15 per cent management fee on all financial transactions.  Club Intrawest (Embarc) members have no control of the club or effective means for recourse, even though members, other than DRI, own 95 per cent of the timeshare points.

About the Club Intrawest Owners Group (Embarc), (CIOG)

The CIOG is a grassroots movement of over 3400 members who are banding together seeking fairness and transparency in their Club’s operation for all 22,000 members.  The CIOG is disputing and challenging unfair actions of Intrawest Corporation, Diamond Resorts International and their domination of the Club’s Board of Directors and Management Company. The CIOG came together as a volunteer group in December 2015, following Intrawest’s announcement of the sale (without member input) of Club Intrawest’s management to DRI. Following the sale, DRI rebranded the club to Embarc and fully controls the not-for-profit timeshare.  For more about the group, visit

www.citheownersgroup.org.

Judgment of Federal Court of Appeal:  see link

http://decisions.fca-caf.gc.ca/fca-caf/decisions/en/item/232795/index.do

canadian flag

Clearly this is an evolving story. Inside Timeshare will continue to monitor and report ongoing developments.

Other member sponsored Diamond Advocacy groups include:

DRIP launched by over 1,000 British Diamond members

http://drip.enjin.com/

Diamond Resorts Owners Advocacy Group and because timeshare concerns are bigger than any one resort Timeshare Advocacy Group ™

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/

Some of the points in this article regarding the judges decisions are very similar to those from the Supreme Court in Spain. Especially on the system of “points”. The Spanish Courts also agree that they are not owners but members with only a right to use, it makes us wonder if the Spanish rulings may have had an effect on this?

Anyway thank you to our Canadian cousins or should we say “Canucks”, we look forward to more contributions from you. Also a great big thanks to Irene who is helping to make this happen. It is through articles like this we make the world smaller and help timeshare owners no matter where they are. So welcome to the global timeshare family from, The Philippines, Australia, USA and Europe. We now need some from South Africa!

Have a good weekend and don’t forget to do your your homework!

weekend cat

timeshare-rentals-by-owner-287

Monday, The Start to Another Week.

We finished last week with the announcement of 6 sentences from the courts against Anfi, we start this week with news just in from our contact in Madrid. We also start this week with an article from Irina Allen, who has featured before. But first the Judgement.

The Supreme Court has made yet another ruling against Resort Properties / Silverpoint. In this ruling the court has awarded a british client a substantial amount, reportedly around £32,000. At the moment we are not sure what the ruling was comprised of, but going by previous ones it will probably be for the perpetuity contract. When the sentence document becomes available we will publish it here.

So we wonder what is in store for the rest of the week, now on to Irina’s article.

Diamond Resorts Suspended my Account worth over $500,000

For posting one RedWeek rental ad as my sales agent advised

ethics

By Irina Allen

July 17, 2017

Inside Timeshare first published my Diamond Resorts story January 2017 after Diamond suspended my 139,000 points, falsely accusing me of renting points for commercial purposes.

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

I was expected to make monthly mortgage payments of $2400 a month and pay $29,000 in maintenance fees during the one year suspension. Diamond is able to rent my points for promotional purposes during the suspension period.

Ironically, I replaced the points I had promised to friends and family by renting points on RedWeek. I also lost thousands of dollars on airfares that had already been booked as my account was suspended without warning. I am not the only member hurt by Diamond’s change in rental policy.

I was accused of opening an Airbnb account. I have never had an Airbnb account, but Diamond Resorts told me they were not required to provide any proof despite my common last name. My attorneys are working with Airbnb to prove I never had an Airbnb account. I have given Airbnb permission to share my story with their international news community.

I don’t want to get bogged down in details so suffice to estimate I paid $5 per point for my vacation points and with closing costs the figure is closer to $6 per point. According to our Facebook posts, a Diamond point sells for about $4 a point so I also feel I overpaid. At 139,000 points we are talking about a serious amount of money – over $500,000.

After contacting an attorney and filing complaints with the FTC, CFPB, AGs and the Real Estate Departments of AZ, HI, NV and CA, I found our Diamond member sponsored Advocacy Facebook. At least this provided some support as all the regulatory agencies ignored my complaint.

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

Alarmed that others could be victimized, I became an administrator for Timeshare Advocacy Group ™, hoping timeshare owners and members from other timeshare companies will reach out to us when facing problems or have concerns about their timeshare membership. I have learned Diamond Resorts is not the only timeshare company exhibiting what I feel is predatory behavior.

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

It is unfathomable any corporation could exhibit such blatant disregard for a customer. My situation is very bizarre. In addition to a suspension, I experienced a 17% increase in maintenance fees while the actual increase was only 6%. I only found out about this by reading a post on our Advocacy Facebook page. Diamond automatically corrected their “error” (only for 2017) after receiving correspondence from my attorneys.

Many do not even believe me. I am grateful to Senior Correspondent Jeff Weir of RedWeek for the two hours he spent interviewing me, even though he initially decided not to publish our interview. After Inside Timeshare sent a draft of this article to RedWeek, Mr. Weir requested a copy from my editor Irene Parker indicating he would publish our interview.

One can find hundreds of Diamond rental ads on several commercial websites. I do not know why I was targeted for placing one ad without providing any evidence of commercial use. I am a professional. I bought Diamond points to share with my friends, family and clients.

Here is the current Diamond rule:

2.5.1 A Member is not prohibited from periodically renting the Accommodation reserved for the Use Period or the reserved Other Redemption Opportunity pursuant to these Club Rules.

However, the use of Points to reserve Accommodations or Other Redemption Opportunities for commercial purposes or for any other purpose other than the personal use of the Member or the Member’s family and guests is prohibited.

Use by a Member of public advertising or an online website to seek renters shall be deemed a prohibited commercial use.

Members who are primary developers of Club Resorts (that is, members of the Diamond Resorts International group of companies) and providers of Other Redemption Opportunities are specifically exempted from this restriction, and are entitled to use their reserved Accommodations and reserved Other Redemption Opportunities for promotional, rental, or other commercial purposes.

Here are a few of the Diamond rental ads on the RedWeek online website. Not only are there hundreds of ads, but many of them are for prices greatly above maintenance fees and could therefore be considered “for profit”.

Timeshare Rentals – Timeshares for Rent By Owner | RedWeek

https://www.redweek.com/timeshare-rentals

Diamond Resorts International

Kaanapali Beach Club

Lahaina, Hawaii

stars 51 reviews

255 rentals available

$132 – $500 /night

12 resales available

$600 – $15,000

Daytona Beach Regency

Daytona Beach, Florida

stars 7 reviews

I don’t expect Ebay, VRBO or other non-informational platforms to post a warning. However, RedWeek is an informational resource for vacation timeshare members and owners. I feel RedWeek should post a warning that Diamond Resorts does not allow rentals given the consequences can spell financial disaster.

Diamond’s policy is clear. Either there is a rental policy or there is not a policy. With the consequences of violating the policy so severe, why does RedWeek not post a warning? More importantly, why does Diamond not allow members, many struggling to pay maintenance fees, to post rental ads on RedWeek?

“RedWeek advises members to check with the resort before renting,” stated Gary Prado, spokesperson for RedWeek.

Why would anyone check with Diamond Resorts before renting, especially those who had been renting for years, and why would anyone check if there are hundreds, if not thousands, of rental ads all over the internet?

I opened a RedWeek account on the advice of a Diamond Hawaii sales agent and attempted to rent some points. I had not even heard of RedWeek until the sales agent recommended the site based on her personal experience. She said many Diamond employees rent on RedWeek to offset maintenance fees. I was never paid for the RedWeek rental so I gave up the idea of renting.

I am one of 18 Platinum members who have contacted Timeshare Advocacy Group ™ alleging deceptive and bait and switch up-sells. Like the others, I accumulated 139,000 Diamond vacation points due to aggressive selling. I agreed to take over 42,000 Diamond points from the secondary market on one condition – I do not have to buy any additional points. As the Diamond agents promised, “due to my Platinum status, owning at the time 75,000 points, I would be allowed, as a onetime courtesy, to transfer contracts without being required to purchase additional points.” In 2013 this was a common practice.

Diamond refused to honor their promise after the transfer. I was told I had to buy 23,000 points in order to use the transferred points without the secondary market restrictions. I could not use the points due to layers of restrictions Diamond places on the use of secondary points. Diamond is the only major timeshare that cannot be listed with any of the 64 members of the Licensed Timeshare Resale Broker Association as the members feel Diamond’s secondary market restriction are more onerous than Diamond’s major competitors.

http://www.licensedtimeshareresalebrokers.org/

group

Speaking with other families affected by the sudden change in Diamond’s rental policy, I asked:

  1. Are you not allowed to rent or has DRI just made it more difficult?

They have made it very difficult because we can’t advertise.  They also tried to ban us from using upgrades for rental weeks (making it harder to rent for more than cost) and they also started charging a fee to add guests.

Diamond maintains that they have the right to change the rules.

This is the crux of the matter. Would you buy a timeshare if you knew the timeshare developer could change the rules pretty much at any time for any reason?

Diamond stands to make a huge financial gain by forcing owners who relied on rental strategies into foreclosure. This is financially devastating for families because they are required to pay maintenance fees they can no longer afford for the high volume of points these members own. Diamond then “takes back” the points and resells for full value.

muscle

If you or someone you know has a timeshare concern, contact Inside Timeshare or one of our Advocacy Groups.

Bit of a horrendous story, doing only what she was advised, how many times have we heard this type of thing from sales agents? You believe them because you trust them, they sound so genuine, then bingo! You are the one to be made out to be in the wrong. So thanks Irina for that little insight, we look forward to your next article.

Timeshare needs to change, it is not the product most of us thought we were purchasing, the truth is hidden, is any wonder that timeshare has a bad name and reputation?

If you would like to share any of your experiences contact Inside Timeshare and we will work with you.

Have you been contacted or thinking about contacting a company about your timeshare, but don’t know if they are genuine? Then send us an email or comment and we will point you in the right direction, remember it is better to spend time checking than even longer regretting!

 

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, we continue with Chapter Three of David Franks DRI Misadventures, but first more news from Europe.

We started the week with the article about members at Anfi complaining about the lack of availability, trying to book 12 months in advance and still fully booked. It is not just Anfi that we see this problem, it happens at every resort that runs the floating week or points systems, hence the Spanish law making these systems illegal.

Why is there no availability?

The answer is actually very simple, when resorts sold fixed weeks with an apartment number allocated to it, they could only sell 51 weeks in each apartment. Once these had been sold there was nothing left for the sales staff to peddle, the resorts no longer had another source of income other than the maintenance fees. So they came up with points and floating weeks, whereby you became members of a “vacation Club” rather than an owner.

fully booked

In this way they could continue selling, in essence quadrupling their membership base, this also had the effect of increasing the amount of maintenance they receive. The down side is obviously for the members, more members than accommodation or weeks available, do the maths. NO AVAILABILITY!

In our midweek post, Irene Parker explained CASA, Court Appointed Special Advocates and how it could work for timeshare. Irene has personal experience of this as she herself was a special advocate. It certainly is something worth looking at.

Once again, we highlighted another “fake law firm”, Amador Ganeca Abogados, another in the list that make up the Litigious Abogados family. As we stated the website was only registered on 16 June, so it is only a month old, yet according to them they have over 15 years presence on the internet!

The “lawyer’s” shown on the website have been used before, names have been changed and even slight differences in spelling, none of them are registered with the bar association and the photo’s can be easily downloaded from sites such as Google images. Just search for lawyers and you will probably find the same pictures!

justice2

It has also been a very busy week in the courts, with another Supreme Court judgement against Resort Properties / Silverpoint being announced, which brings the number against them to eleven.

According to our sources, the courts in Maspalomas have also had a very busy week, the first to be announced was against Puerto Calma Marketing SL & Vista Amadores SL. This was quickly followed by six judgements against Anfi Sales SL. As yet we have not received any copies of the sentences, or the amounts awarded, but all contracts have been declared null & void.

Now on with our Friday’s Letter from America.

Our DRI Misadventures – Chapter Three

Stand Back. These People are Professionals.

customer cartoon

By David Franks

Friday, July 14, 2017

You might wish to read the first two chapters:

Chapter 1: Vegas, Baby! — http://insidetimeshare.com/fridays-letter-america-5/

Chapter 2: Missouri Loves Company — http://insidetimeshare.com/fridays-letter-america-10/

(You might not. They’re pretty harrowing.)

Once we returned from our idyllic ordeal in Branson, and having—I thought—a better idea of our opportunities and obligations as new members starting in 2016, I set about booking the “Dream Vacation” we had selected: four nights in Miami and a seven-night western Caribbean cruise.

It took me relatively few phone calls—but more than I should have needed to make—to discover the following things:

  1. The prompts in the DRI phone routing system are not particularly helpful.
  1. Even people who work in DRI customer service find the phone system and internal organization confusing.
  1. DRI is not consistent about demanding adherence to “what the paper says”.  That is, they will use what the text of contracts, disclosures and descriptions say to limit the traveler, but they allow themselves a fair bit of latitude in holding up their end.  The best way to find out how weaselly their language is is to hear their interpretation of “what the paper says”.

After talking to a relatively small multitude of vacation professionals, I eventually got the “Dream Vacation” booked.  We would stay at the  on April 5,6,7,8 and cruise the week of April 9-16.  As the “Dream Vacation” leaflet features a photo of the front of the Penguin Hotel, which faces the ocean, I asked about upgrading the room from “standard” to “ocean-view”; I was told that I would have to arrange that with the hotel directly. (I understand that this is standard practice, but I started to wonder what all of those concierges we had accumulated in Branson were supposed to do for me.)

By November 16, I had found it necessary to escalate the room upgrade issue, as the Penguin Hotel had not received notice of our booking and I could not yet upgrade our reservation to an ocean-view room, which has limited availability.  I also found in my conversations with the hotel’s reservations desk that the supposed retail value of the “standard room” included in the package is not nearly what the leaflet claimed, even at peak season; indeed, an ocean-view room at peak season cost less than the claimed retail value of a standard room, which has no view at all.  Neither the people I talked to at DRI, nor the hotel staff (including two managers), could help me with this issue for some two weeks longer.  While there were some communications problems within the hotel’s reservation department, it appears that the problem was largely due to DRI’s delay in informing the hotel of our reservation, their unwillingness to deal directly with the hotel regarding the issue, and their convoluted organizational structure.

During my ongoing e-mail correspondence with DRI, one of the people I had corresponded with moved to a new position, and another person had continued the exchange without her own signature.  This caused a jarring change in tone.  At one point, I called M.W., my self-professed concierge in Branson, and he hung up on me.  After some two months—on January 13,2016—I was finally able to get the room upgraded, and I had both DRI and the hotel confirm that I had booked an ocean-view room.  Their trademarked slogan to the contrary, DRI apparently does not love to say “yes”, and despite my (and the hotel’s) problems with their service and procedures, DRI declined the opportunity to pay for the room upgrade.

Scheduling our flight and dealing with cruise details were relatively straightforward, probably because I was working directly with the airline and with Carnival.  The issues I had raised with DRI over the course of almost two months (!) of calls and e-mails were never fully acknowledged or addressed; my various contacts at DRI simply stopped returning my calls and e-mails, offering website links in lieu of transfers or introductions to the proper people.

Board

Important points so far:

  • The retail value of the hotel accommodation was touted as “up to $2,000”.  One of the reservations people (both available hotels used the same reservation desk) assured me that under no possible circumstances did either a “standard” room in either hotel or an ocean-view room at the Penguin ever go for $500 per night.
  • Dream Vacations” cannot be booked five days before or after Presidents’ Day, Easter, Independence Day, Thanksgiving Day, Christmas Day and New Year’s Day. More often than not, the block around Presidents’ Day blocks Valentine’s Day. According to the reservations department, these blocked holidays are the periods when the retail values of the hotel accommodations are highest—though even then, they didn’t go for $500 per night.
  • The salesman who gave me his personal cell phone number and told me to think of him as my concierge hung up on me the first and only time I called him.
  • The “Diamond Bonus Points” trifold brochure (which is replete with legalese that I was apparently expected to memorize) features a quote, ostensibly from a delighted DRI member: “One of the reasons that we bought with Diamond was mostly for the flexibility … The flexibility is really limitless.” Word to the wise: it isn’t.
  • DRI has trademarked the slogan, “We Love to say Yes™”.  They haven’t said “Yes” to me since we signed the contract.  This is a tragic waste of a trademark.

respect

Inside Timeshare would like to thank David Franks for his article and all those who contributed to previous articles. We also thank those who have supplied information about new companies springing up and the insights into how members feel.

Have a good weekend and beware of any company that promises you anything, check them first, remember doing your homework is vital to save you from being scammed.

weekend02

help1

The Wednesday Post

This week has been a rather quiet week on the legal front, yesterday it was announced that the High Court in Santa Cruz de Tenerife ruled against Resort Properties / Silverpoint yet again. In this case the judge ruled against the points system which the contract contained. The contract was declared null & void with the award of over 44,700€ plus legal interest being made.

As this article was being prepared this latest news came in from the Supreme Court in Madrid, once again it was against the above company Silverpoint. This brings the total against them from this court to 11 rulings. Details at present are not available but the contract was once again declared to be null & void, with the return of over 20,000€ plus legal fees and legal interest.

These cases as usual were brought on behalf of clients by Canarian Legal Alliance, who have now got around 50 rulings from Spain’s highest court. Quite an achievement.

We have also this week received more enquiries about Abogados Amable & Garcia, one of the family of fake law firms which are part of the Litigious Abogados family. Luckily these readers found the article in time and have not parted with any money. It is only a matter of time before a new name appears, so if you have received any correspondence from a law firm in Tenerife which state you can be included in an upcoming trial against your timeshare resort, let us know.

Now on to Wednesday’s article from Irene.

Can the CASA Family Court System Work for Timeshare?

How members helping members can change the timeshare world

hands circle

By Irene Parker

July 12, 2017

Inside Timeshare is honored and proud to be part of a movement. Our Timeshare Advocates deserve a pat on the back as we hear from more and more members either resolving issues concerning their timeshare, so they can continue to use and enjoy their vacation plan, or at least be able to get out from underneath a dream vacation that turned into a financial disaster.

Aristotle Onassis, husband of Jacki O, once said he made the most money on ideas that were very simple – only no one had thought of them before.

Such a plan is logical, effective and offers a cost benefit in that it takes some burden off the courts, the families affected, and most importantly, the trauma and stress resulting when, as NBC Lester Holt described in his Dateline title, “The state steps in”, removing a child or children from their home for often over a year.

Timeshare is not as gut-wrenching as foster care. There is nothing as profound as telling a mom or her children parental rights have been terminated. Money can be replaced, but a child cannot. However, more than once I’ve been told of elderly widows considering suicide because of a vacation plan she could not get rid of and was not able to maintain due to the loss of a spouse. Frantic, desperate, angry, confused and overwhelmed are but a few adjectives that could describe many of the calls coming into Inside Timeshare.

CASA works even better for Timeshare members

Anyone who works for a nonprofit can attest to the challenges of keeping volunteers motivated for an extended period of time. Our Timeshare Advocacy Group™ volunteers are often victims themselves, so we have a built in motivation factor. There is also the empathy and understanding that exists when someone knows exactly what it feels like to be victimized.

casa

What is CASA or Court Appointed Special Advocates?

(CASA in some states is called Guardian ad litem)

CASA is a nationwide movement that started in 1977 when a Seattle juvenile court judge launched a program by recruiting court appointed volunteers to advocate on behalf of a child or children in state care. Examining an often convoluted family tree to decipher what went wrong and how to prove a child has been abused or neglected is a daunting task. A CASA volunteer is trained to be a detective of sorts, gathering information from all facets of the child’s life.

After gathering information, the volunteer prepares a court report letting the judge and interested parties know what outcome the child wants to see happen and what the CASA feels should happen. One judge told me she almost always takes the opinion of the CASA over the opposing counsels.

The CASA sticks with the child, interacting with the biological parents, foster parents, social services, schools, therapists and even medical doctors until permanency is  achieved by returning the child to his or her biological parents, or termination of parental rights and hopefully adoption.

It’s not hard to imagine how this process could be applied towards the timeshare member victimized by deceit, concealment, violation of trust and bait and switch. Some timeshare members have multiple contracts that have been purchased over a period of years. It has been helpful to have a volunteer walk that timeshare member back to the beginning to determine, when and where, in the life of the member, did their vacation plan go so wrong.

The most successful outcome is returning a previously happy customer back to the state of mind they were in before they were deceived so that the timeshare company keeps the customer and the customer can again use and enjoy their timeshare as they did before.

Bluegreen members support other members on this Facebook

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

Diamond members support other members on this Facebook

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

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.

A sharing of information from all Facebooks and from non-timeshare owning Advocates, like attorneys who tend to not buy timeshare, is posted on the Timeshare Advocacy Group™ Facebook, administered by Irene Allen.

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

It is hoped there will come a day when timeshare developers recognize that a product only sold through deception and a same day sale might be a product nearing the end of a maturing life cycle. Companies like Disney work hard to protect their brand and Hilton is known for a somewhat consumer friendly secondary market, although several Advocates will take exception to this statement arguing that no timeshare has an adequate secondary market.

Probably the most common comment we at Inside Timeshare hear is, “At least I know I am not alone.” Proactive action, working with a volunteer towards timeshare resolution, relinquishment, refund or even foreclosure, takes the problem from the unknown to the known. Consultants and behind-the-scenes Advocates add an additional layer of advice and protection. One very important consideration is that many of those we have helped were on their way to the upfront “guaranteed” deed-back firms that often prey on those already victimized. From this standpoint, the developer, the timeshare lobby, and the members are on the same side.      

Once again thank you to all our Contributors. Contact Inside Timeshare if you, or someone you know, needs assistance or would like to share their timeshare story for the benefit of others.

not alone

Inside Timeshare cannot stress enough that doing your homework and due diligence before engaging with any company is paramount. If you need help or advice on how to do this just contact us and we will either find out for you (if we don’t have them on file already), or point you in the right direction.

homework

Since posting it has just been brought to our attention that the Litigious Abogados Family do in fact have a new member, Amador Gameca Abogados, which is a very similar name to a previous article published on 1st June, Armando Gareca Abogados. The website is the same layout as all the others, it even show the same logo a Armando Gareca Abogados. The photos of the lawyers are the same one we have seen on previous incarnations, these you will probably find can be downloaded from the web.

This is their website.

http://amadorganeca.com

So it just goes to show that the above picture is spot on. More on this is it comes in.

letter from america

Friday’s Letter from America

Welcome back to Friday’s Letter from America, last week we did change it to Australia to welcome our Aussie contributor Justin Morgan with his first article, which happened to coincide with Irene Parker’s first anniversary. Today we hear from our first Bluegreen owner, who also happens to be a detective in law enforcement, so this proves that all are vulnerable to the smooth talking sales staff.

Irene reported just as we were about to publishing today’s article, that four Diamond Members have been able to resolve their vacation issues this past week. Members tell us they appreciate having a human instead of a department to talk to. Previously members complained of continually having to start over with seemingly endless departments.

We hope other timeshare developers follow suit as timeshare complaints are widespread.

Now we have a look at what is happening in the European world of timeshare.

The National Police in Spain have busted a major scam being run from the Costa del Sol, they raided several premises and homes in the Velez Malaga – Torre del Mar area. Around 40 were detained, they included a husband and wife, son and daughter-in-law, along with it is reported two lawyers. The detained are mainly British, who have run several businesses in the area over a number of years, these targeted mainly British timeshare owners.

Police raid

The scams involved timeshare resales, holiday packages and discount clubs, this has over the years netted millions of pounds, with the police recovering around 100,000€ in cash, expensive watches, jewels and several high end cars.

It is believed the companies, which are well known by Inside Timeshare and other similar sites, are, Halfmoon Holdings, Excalibur Sales & Marketing, Blue Chip and Rosedale Marketing. The only problem is, when one of these raids takes place and they are put out of business, there are many others ready and waiting to fill the gap. No doubt, we will see a series of companies offering to help victims get their money back, for an upfront fee obviously. So readers beware!

Follow the links to read the stories in the UK tabloids.

https://www.thesun.co.uk/news/3952419/dozens-arrested-over-timeshare-scam-that-saw-500-brits-conned-out-of-life-savings-in-multi-million-pound-costa-del-sol-racket/?utm_source=TWITTER&utm_medium=social&utm_campaign=SprnklrSUNOrganic&UTMX=Editorial%3ATheSun%3ATwImageandlink%3AStatement%3ANews

http://www.mirror.co.uk/news/uk-news/costa-del-sol-cops-uncover-10745713

On the legal front, it looks like those lawyers from Canarian Legal Alliance have been busy this week, with several announcements of cases won.

We started the week with a judgement from Tenerife against Resort Properties / Silverpoint followed on Tuesday with news that the Court of First Instance in Maspalomas GC, awarding a client who purchased at Anfi, over 59,000€ with their contract being declared null & void. Once again the court ruled that the contract was longer than the stipulated period of 50 years.

On Wednesday, the Court of First Instance in Arona Tenerife, again found against Resort Properties / Silverpoint, in this case the judge ruled the contract was missing information which is required by law, the period again was longer than the 50 years allowed, plus deposits were taken within the 14 day cooling off period.

The British client will now receive over £14,000 plus legal interest and has had their contract declared null and void.

On Thursday there were two announcements the first from Tenerife, the Chayofa Golf & Tennis Academy, was ruled against by the Court of First Instance, the contracts signed under the company United Sales 1997 Ltd were declared null & void. Again the infringements were the perpetuity contract and the illegal taking of deposits, the client will now receive over £9,000 plus legal interest.

Malaga Court

The second was from the High Court in Malaga, Club la Costa was found guilty with the contract being declared null & void. One of the main aspects of this case is the company is a UK registered Limited one, Club La Costa Leisure Ltd, which was probably an attempt to bypass Spanish law. As we have seen in the past, some companies have used this along with the clause that “this agreement and contract is subject to UK law and the jurisdiction of UK courts”, but it is evident now that this does not wash, if the timeshare was sold and the contract was signed on Spanish territory, then clearly Spanish law will apply.

Now on with our US Article.

A Bluegreen Member Responds to Timeshare Advocacy Group™

A detective shares her Bluegreen Timeshare experience

Complaint queue

By Irene Parker

Friday July 7, 2017

Typically our Inside Timeshare readers don’t contact us to report positive timeshare experiences so our email inbox often looks like the cartoon above. Today we hear from a Bluegreen member who found promises made did not meet what was purchased. Not as familiar with Bluegreen we checked internet sites and determined Bluegreen is a company that could use a customer satisfaction evaluation.  

Bluegreen members can join a member sponsored discussion Facebook consisting of 770 Bluegreen members. More and more timeshare members are launching sites where members can advise other members.

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

Timeshare Advocacy Group™ is an umbrella organization consisting of volunteers stretching from the EU to the US and beyond including contributors from the Philippines and Australia. A few complaints have little or no effect, but a volume of complaints, especially directed against individual sales agents, can paint a pattern of deception.

A complaint process has evolved over the past year. Working through resort representatives, volunteer Advocates assist other members as we work through the “3 Rs or F of Timeshare” – Resolution, Relinquishment, Refund or Foreclosure.

Here is our advice for those not knowing where to turn:   

  • Prepare a written complaint and request for resolution. Submit to the resort.
  • If the resort denies the request, file first with the Attorneys General of the state where you signed a contract, where you live, and where the timeshare is domiciled. Some Attorneys General are influenced by lobby dollars, so don’t be discouraged if your complaint is denied. There is still merit filing “for the record” because the Attorney General’s lack of concern can be quantified and reported. Some states refer you to a different department.
  • File a complaint with the state real estate division against the agent (ID #) if you feel the sales agent is at fault.
  • File a complaint with the Federal Trade Commission because every state has incorporated some part of the FTC Consumer Fraud Act into their respective state consumer protection act.
  • Report your grievance to ARDA http://www.arda.org/ethics/ – this organization is the American Resort Development Association – Resort Owners Coalition. ARDA ROC does not resolve individual member disputes, but they do have a code of ethics that should be enforced. When the needs of the member and the developer diverge, lobby dollars go to the side of the developer, so think twice about the “voluntary” opt in or opt out donation to an organization that may not always serve your best interest. I have not been able to get the $7 donation removed from my account.   
  • The FBI definition of White Collar Crime – Financial Institution Fraud – is “deceit, concealment, violation of trust and bait and switch”. File a complaint with IC3.gov if this is the case. IC stands for Internet Crime, but your complaint does not have to involve the internet. That’s just the FBI portal for complaints. https://www.fbi.gov/investigate/white-collar-crime
  • File a complaint with the Consumer Financial Protection Bureau, although this agency has been vastly diminished due to the rollback of the Dodd Frank Act. According to a banker I spoke with recently, they are still the regulators. Given the CFPB’s diminished capacity, file with this agency only if a credit card played a part or there is a loan outstanding.
  • Reach out to local and national media. This is by far the most important and effective tool. Typically, timeshare buyers don’t buy a timeshare in their state of residence, so state lawmakers have expressed little interest and can also be influenced by lobby efforts. http://www.orlandosentinel.com/news/taking-names-scott-maxwell/os-gov-rick-scott-signs-bad-timeshare-law-20150617
  • Become an Advocate for change by assisting other members with the process outlined above. Encourage others to stop venting and act. This is one example of a military family that was able to resolve their dispute through Timeshare Advocacy Group™ http://insidetimeshare.com/consumer-protection-week-usa/ and a hat’s off this 4th of July week to all those who serve in the military.
  • Last on the list is the Better Business Bureau. The BBB does not resolve complaints. They merely report how efficiently a company responds to complaints so ratings can be misleading.

None of the above agencies will act on behalf of a specific individual, but a volume of complaints can prompt an investigation. Tennessee, Colorado, New York and Arizona are four states where Attorneys General have opened timeshare investigations       

law enforcement

Our Bluegreen member complainant works in law enforcement. Lela Renea is a detective appalled that, even though she works in law enforcement, alleges she became the prey.   

Lela purchased 6000 Bluegreen points in Las Vegas March 2015 for $8,200. Lela alleges she was a victim of deceit and bait and switch for the following reasons:

  1. Lela was told if she purchased more points her maintenance fees would stay the same. The maintenance fees have increased from $560 a year in 2015 to about $700 a year for 2017.
  2. Lela was told she would receive a free cruise, but after all the fees and charges it cost as much as if she had booked it herself.
  3. Lela was told the Barclaycard had a low interest rate of 5% when in actuality it was 25%.
  4. Lela was not told she was entitled to 4000 bonus points. The points expired before she was aware of them.
  5. Lela was promised availability she says does not exist.
  6. Lela was showed a Presidential Suite that was said to be comparable to all Bluegreen accommodations.
  7. Lela was not aware she had purchased so few points it was almost impossible to find adequate availability.

Lela has sent Bluegreen a demand letter requesting a refund. She will be filing complaints with regulatory and law enforcement agencies if her demands are not met. Lela will become an Advocate.

Lela’s friend and co-buyer contacted Pinnacle Vacation to do a transfer but Lela is worried Pinnacle may be a scam.

https://www.complaintsboard.com/complaints/bluegreen-vacation-club-c4809.html

lawsuit

The following lawsuit was filed against Bluegreen but was dismissed October 2016. It voices many of Lela’s complaints. Again, the problem is the oral representation clause that timeshare attorney Mike Finn of the Finn Law Group has frequently described as “a license to lie”.

The BlueGreen Vacations Timeshare Sales Tactics Class Action Lawsuit is Kyle Miles, et al. v. BlueGreen Vacations Unlimited Inc., Case No. 1:16-cv-00937, in the U.S. District Court for the Eastern District of California.

The plaintiffs are represented by Todd M. Friedman and Adrian R. Bacon of Law Offices of Todd M. Friedman PC.

BlueGreen Vacations Unlimited Inc. has been hit with a class action lawsuit that accuses the timeshare company of using “hard sell” tactics and misinformation to convince consumers to enter into timeshare contracts.

During the timeshare presentation, the plaintiffs were reportedly informed that, if they were not satisfied with the timeshare contracts BlueGreen was selling, BlueGreen would buy back the contracts.

According to the timeshare class action lawsuit, BlueGreen also misled the presentation attendees by representing that the timeshare contract’s maintenance fees would not increase, when in reality, the maintenance fees increase on an annual basis.

However, the plaintiffs allege that the terms that were actually contained in the timeshare contract are different than the terms promised during the timeshare presentation.

They also claim that they were pressured to open two BlueGreen credit cards and to put the entire $5,000 down payment on the cards.

advo

Our local Florida news station today reported vacation rentals, as opposed to hotel bookings, have increased from 50% in 2014 to 70% in 2016. Our readers continually express disappointment and dismay over what they describe as an escalation in deception and overly aggressive timeshare selling. These are mostly members who were happy with their timeshare until deception set in. We want timeshare to be a healthy and robust industry. If the developers and lobby organizations don’t heed the damage being done by sales agents “pitching heat”, one wonders how the industry can survive in the millennial’s world.

Inside Timeshare thanks Lela for coming forward. We look forward to a new collaborator as a lot of what we do requires the skills of a detective. It did not take long to explain the basis of an IC3.gov complaint to Lela.

So there we have it, another week over in the timeshare world, with some good news for many and the start of a judicial nightmare for others. Inside Timeshare thanks all those who sent in the information which helps to form our articles, again thanks to Irene for editing the US contributions, together we are making a difference.

weekend

 

july 4 17

Best Wishes on July 4th

Today is a very important day for our friends Across The Great Lake, July 4th, is Independence Day.

So Inside Timeshare (Europe) would like to take this opportunity to wish all our friends and contributors a very happy 4th July, we shall certainly be cracking open a bottle to help you celebrate.

c2

Yesterday, the week started off with another court in Tenerife finding against Resort Properties / Silverpoint, with the Court of First Instance declaring the contract null & void. In this case the CLA clients will receive back 23,150€, in this instance that is 7,000€ more than they originally paid. The infractions for this case are the contract being a perpetuity one, deposits taken on the day of signing and the lack of information required by law.

It is clear that the courts in Spain are enforcing the timeshare laws, as laid down and clarified by the Supreme Court. We are seeing more and more cases with some very large payouts, often more than the client originally paid, showing the courts will penalise resorts and their sales departments for infractions of the law. The most common ones are the taking of deposits within the 14 day cooling off period, even by a third party, which the courts are awarding double. In some cases this period is increased to 90 days if there is a lack of information required by law, which would then allow the courts to award double any payment made in this period.

Unfortunately, due to these rulings there are many companies springing up purporting to be law firms, stating they have won so many cases. Many are offering a no win no fee case, then need to have a substantial payment upfront to start the case. If contacted by one of these companies, check how long they have been in operation, check the dates of company registration (if any) and the date of any website registration. Remember many of these court cases have taken 3 years or more to go through, as they have been subject to appeals at the High Court or sent to the Supreme Court, so any company that has only just “popped up” could not have had these successes.

icalp coat of arms

Check who the lawyers are, what their Bar Registration numbers are, you can check these through the Spanish Bar Association Register. We are also seeing fake court documents, these can be verified with courts themselves, if you are in doubt contact Inside Timeshare and we can check them for you.

Another aspect to many claims companies and the no win no fee claims, is that they will need to “relinquish” your membership first, this is usually for several thousands of pounds. The no win no fee claim is then an attempt to claim under section 75 of the credit consumer act. Now the important thing to remember is if you have used your timeshare, then you have received the goods and services paid for, so there is no claim. The credit consumer act sec 75 does not pay out because the contract is illegal under Spanish law. There is only one way to make a claim and that is using a legitimate law firm with experience in this field and going to litigation.

If you are in any doubt about the authenticity of any company you are dealing with, or the offer sounds too good to be true, then contact Inside Timeshare and we will check them out for you. Remember, better safe than sorry.

homework1

Happy Independence Day and have a great party.

jul4