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Richard Cordray

The Tuesday Slot with Irene Parker

The Consumer Financial Protection Bureau after Richard Cordray

Timeshare Developers and ARDA vs the Timeshare Consumer

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ALEC – What’s a Corporate Bill Mill?

Part I – The Manhattan Club

Part II – Marriott and Florida legislation Tuesday, November 28

By Irene Parker

November 21

Is the Consumer Financial Protection Bureau an agency that overreached or a necessary protection for consumers?

The Consumer Financial Protection Bureau’s Director Richard Cordray recently announced his resignation. Timeshare members not familiar with the CFPB may remember 3.4 million Wells Fargo customers receiving restitution from unauthorized credit card accounts being opened that allowed Wells Fargo representatives to meet incentive targets. CFPB conducted that investigation.

https://www.politico.com/story/2017/11/15/richard-cordray-resigns-consumer-financial-protection-bureau-24493/

Timeshare today seems as polarized as Democrats vs the GOP. Given the corporate driven political climate in Washington DC, it is unlikely Cordray’s replacement will bolster the agency’s power or recourse for timeshare consumers.

Timeshare members have not benefitted from the CFPB like the Wells Fargo victims. The opening of an unauthorized credit card is annoying, but probably not financially devastating. The majority of our 209 Inside Timeshare readers, reaching out to us for advice, are often financially devastated by their decision to purchase a timeshare or continuing to own one. The perpetual contract, accompanied by rising maintenance fees and little or no secondary market can spell disaster, especially if sold by deceit.

Still, timeshare members appreciate the CFPB’s interest in hearing timeshare complaints. The CFPB did initiate a Westgate timeshare investigation that lasted two years, only to be dropped after the 2016 presidential election. Call me suspicious, but seeing Westgate owner David Siegel pictured left of Mr. Trump on the stump during the campaign, while the Trump organization simultaneously launched a timeshare in Scotland, seems beyond coincidental.

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Former Florida Attorney General Bill McCollum’s name was mentioned in the Politico article linked above as a possible Cordray replacement. Given Florida’s current legislative and timeshare enforcement climate, timeshare members have little to cheer should a former or current Florida elected official be named director. In our opinion, Ms. Bondi has done little to address deceit on the front end of the timeshare sale. As Inside Timeshare previously reported, the Florida Timeshare Division only acted on 110 out of 2,360 timeshare complaints received from April 2014 to April 2016.

In contrast, New York Attorney General Eric Schneiderman achieved a $6.5 million settlement for The Manhattan Club members, Arizona Attorney General Mark Brnovich $800,000 for Diamond Resort members, Attorney General Herbert H. Slatery III $3 million for Festiva members, and other smaller settlements by Colorado, Wisconsin and Missouri Attorneys General.

Despite AG settlements that seem mere financial speed bumps in the life of a timeshare corporation, timeshare members are hopeful our grassroots efforts to educate lawmakers will someday bear fruit.

The Manhattan Club investigation was one member vs developer battle over lack of availability and other concerns that led to the $6.5 million settlement. TMC owners were banned from the timeshare industry as part of the agreement. While the settlement was hailed as a significant accomplishment, Douglas Wasser, an attorney involved with the investigation is not so sure:

The $6.5 million was set aside for the benefit of “hundreds of purchasers” as a restitution fund.  But The Manhattan Club has upwards of 14,700 unit owners.  So, the pool of Manhattan Club owners entitled to a purchase refund may be a very small one.

The forced divestiture by the current sponsor of control over the Manhattan Club could be a lift for the entire community. Given the lack of confidence in the current reservation system and the many complaints that the reservation system was heavily tilted to benefit the sponsor, this seems like a significant positive to the Manhattan Club community.  It may restore confidence, perhaps drive up market value of the units and allow those who want to leave to do so, and bring in new and willing participants.   

Will it be uplifting for all timeshare members?

Inside Timeshare and other advocates expect little improvement given the polarity that exists between member advocacy groups and ARDA, the American Resort Development Association. I have personally forwarded close to 100 complaints to ARDA, prepared by members alleging timeshare sales agents violated ARDA’s Code of Ethics, which have been ignored.

The two resorts which seem to have the highest volume of complaints each give ARDA ROC, the supposed owner’s arm of ARDA, $1million dollars a year through “voluntary” opt out donations. It took until November to have my $7 removed. When I contacted my resort to have the donation removed, it was instead moved to another account and reported as a delinquency on that account. When members ask what ARDA ROC is, members are told it is a nonprofit that helps members. However, ARDA seemed to be on the side of TMC developers.

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The picture above shows two ARDA attorneys observing a TMC meeting and taking notes. The notes may have later turned into an amicus brief written by a high ranking executive member and attorney for ARDA attempting to defend TMC.  In the brief, Robb Webb described the company’s practices as “routine industry transactions” and, according to one source, drafted some TMC original documents.

Our readers would agree false promises and shady sales tactics are often routine industry practices or transactions, but members are alarmed ARDA defended such practices. In the settlement, the Manhattan Club defendants acknowledged that they misled buyers about availability and the ability to sell back the timeshare.

“The owners of the Manhattan Club lured thousands of timeshare buyers with false promises and shady sales tactics that violated New York law,” Schneiderman said.

https://ag.ny.gov/press-release/ag-schneiderman-announces-65-million-settlement-midtown-manhattan-timeshare-scammed

What’s a corporate bill mill and does such an entity play a role in timeshare?

On Friday in Part II we will examine how politics played a role in the Marriott racketeering case, as lawyers involved with the case suspect. It’s been reported backdoor politics contributed to a bill signed by Florida Governor Rick Scott that, in effect, rendered the Marriott case non-meritorious.

Unsure of the allegations, I researched lobby efforts and their influence on legislation and the possibility of timeshare participating in an ALEC type endeavor. Georgia Senator Nan Orrock described ALEC as “a corporate bill mill.” ALEC stands for American Legislative Exchange Council.

According to Senator Orrock, ALEC is an organization that gets money from lobbyists and gives the money to legislatures and it is considered charity. Three lawmakers, mentioned in this video, received $22,000 in “scholarships” from ALEC, considered an educational charity. The YouTube is disturbing.

https://www.youtube.com/watch?v=sNA0-GBuunc

The timeshare PAC ARDA also has a charitable educational organization called AIF ARDA International Fund. I don’t know enough about AIF to parallel it to ARDA, but the legislative action in the Marriott case seems similar.

http://www.arda.org/foundation/

Open Secrets list ARDA’s contributions to political candidates:  

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

So where do we go from here and why can’t we all just get along? Has greed so permeated timeshare and American politics that a working relationship between timeshare members and developers or between the rich and the not rich, is as unlikely as Bernie Sanders and President Trump coming to terms over health care?

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Fortunately, the court of public opinion is still open as long as the first amendment stands while timeshare members keep coming forward filing regulatory complaints and reaching out to the media if they feel they have been harmed. Someday, somewhere, someone will listen. Until then, we build our case brick by brick.

If you or someone you know needs help with a timeshare, contact Inside Timeshare or a self-help advocacy Facebook.

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

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

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

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

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

Thank you Irene, as usual you explain things in a way that is easily understood, we look forward to Part II next week.

Start the Week

Welcome to another new week in the world of timeshare, tomorrow Irene Parker has prepared an article following the news that Richard Cordray has stepped down from the Consumer Financial Protection Bureau. Part I is about the Manhattan Club, She begins with what the CFPB has done, including the investigation into Westgate, which was conveniently dropped after two years. But more on that tomorrow.

tribunal supremo

In Friday’s Letter from America, we began with the usual roundup from Europe, with the latest court cases. At the end of the day the news came in, too late for publishing, of yet another Supreme Court ruling being issued from Madrid.

In this case, Silverpoint have been ordered to return over £61,000 plus legal fees and interest to another client. The contract was also declared null and void, at present we do not have the full details of the sentence, but it would appear that the contract breached the timeshare law on several points.

As usual the main point will be the length of the contract, the law states that contract must be no longer than 50 years in duration, so the perpetuity contracts sold by Silverpoint contravene this. Once again the Supreme Court has made its point.

los claveles logo

On the story of Los Claveles in Tenerife, Inside Timeshare has received some comments from other members who do not appear to be in agreement with the Committee. They are either neutral or feel that Wimpen has acted in good faith.

Well, there are always two sides to any story or dispute, not all will agree, Inside Timeshare is happy to publish opposing views. We will also be looking into this and preparing a full article in due course.

In the meantime there is a link below which will start the ball rolling in bringing another side to the story and hopefully a little balance.

Inside Timeshare does try to get other views, quite often other parties do not respond, many emails are sent but no reply is ever received. Telephone calls are terminated, usually with you are through to the wrong department or even we don’t know anything about that. So thank you to those who did send in information.

http://www.losclaveles-alt.eu

 

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You have any comments or views on any article published, send them in using the contact form, we will either post them in the comments section or include them in any article.

Want to know if a company is genuine, once again contact Inside Timeshare and we will point you in the right direction.