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Supreme Court

Friday’s Letter from America

Welcome to this week’s Letter from America, this article is based on a report released by the St Louis Better Business Bureau, it is based on their full report published on the BBB website which we have included as a link. The full report carries some very sound advice along with recommendations for Government and the industry. Whether they take note is another matter.

August is the month for Spain to basically close down, so there is no news from the courts, but this little snippet from the RDO website news section and published on 24 July caught our attention.

“We never sleep”

During this particular break-out session the RDO legal panel will provide attendees with an update on a range of issues, including the latest developments in the Spanish Supreme Court rulings and the on-going lobbying programme.

Other issues that will be covered within the session will be ongoing collaboration with UK authorities to take fraudulent individuals/companies to court and new legislation that is being developed to curb the activities of claims companies. Attendees will also learn how ARDA is dealing with similar issues in the US and whether there are lessons for RDO and its members.

Well one thing is for sure, the RDO obviously believe that the Spanish timeshare laws are not good for the industry, with the judges getting it wrong, along with their belief that they will be able to change things in their favour through the lobbying programme. Well somehow I don’t think the Spanish authorities will be looking to changing their laws to return back to the bad old days!

In the end these court cases that are being brought are of the industries own making, if they had abided by the laws in the first place they would not be paying for it now. A very good case to remember is Silverpoint, whose CEO Mark Cushway was at one time also a director of the RDO, this company is being pilloried by the lower courts in Tenerife and the Supreme Court in Madrid.

Why?

Quite simple, they sold a product that flouted virtually every article of Law 42/98, especially with their promise of the “investment” weeks, where unsuspecting purchasers, many of them on the verge of retirement, were sold under high pressure and very misleading sales pitches a promise that these weeks would be sold or rented out. These never materialised and are the subject of many of these court cases. All this while Mark Cushway was one of the directors of the industry trade body, there to ensure that members operated in a legal and ethical manner.

On the legal front, Canarian Legal Alliance has just published their mid year report, it is certainly impressive and really does put the above statement from the RDO in a different light. Follow the link for the full report direct from the lawyers themselves.

https://canarianlegalalliance.com/canarian-legal-alliance-mid-term-successes/

Now on with our Letter from America.

Timeshare is a Highly Regulated Product?

A St. Louis Better Business Bureau Timeshare Report

Released July 24, 2018

Don’t Fall for Deception Pressure and Traps Disguised as Vacations

August 3, 2018

Inside Timeshare has received complaints against Florida, Nevada, Missouri, Hawaii, California, and Virginia sales centers. Missouri is no worse than the other states. We appreciate the St. Louis, Missouri Better Business Bureau taking timeshare complaints seriously.

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

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

From the St. Louis Better Business Bureau report:

https://www.bbb.org/en/us/article/news-releases/18149-dont-fall-for-deception-pressure-and-traps-disguised-as-vacations-a-better-business-bureau-study-of-the-missouri-timeshare-vacation-club-industry?bbbid=0734

RECOMMENDATIONS FOR GOVERNMENT

  • Tougher law enforcement action. Regulatory agencies have reported receiving an increasing number of complaints about the timeshare industry. Bringing action against any bad actors in the industry could help consumers and deter companies from violating consumer protection laws.
  • New laws. BBB hears from many senior citizens who have been affected by the timeshare industry. Missouri legislators should consider special protections for those 65 and older who enter into agreements with timeshare and travel club companies. An extended right of rescission period could help seniors who may not totally understand what they have purchased. All consumers should receive pertinent information – such as access to websites and passwords – at point of purchase so that they can check potential savings and actual values of timeshares on resale market so that if they decide to cancel, they can take advantage of the rescission period.

(BBB) RECOMMENDATIONS FOR THE INDUSTRY

  • More honesty from the industry. The timeshare industry needs to develop and adhere to a set of ethical standards to address widespread reports of high-pressure and deceptive sales practices and to deliver accurate, honest sales pitches to consumers. Reputable companies do not pressure consumers over several hours to purchase services they had little interest in buying or, in some instances, can’t even afford. If presentations are held, consumers should not be detained past the scheduled time or express a false sense of urgency to act immediately. Avoid telling consumers something that will entice them to sign but is later contradicted by your contract.
  • Honor promises. Provide tickets or other promotional items at the time of the presentation. Do not mail them later or make the consumer obtain them from another source.  
  • Do not mislead about timeshare inheritance. Too often misleading statements or scare tactics are used to encourage those who have inherited a timeshare to believe they are liable for it. Don’t misrepresent the law or circumstances for financial gain.
  • Do not require consumers to initial documents “under duress.” Too often, consumers are faced with presentations consisting of long hours; eventually succumbing to high pressure sales tactics.
  • More transparency from the industry. If a consumer is referred  to another company or person to complete the presentation process, be transparent about the process (ie. obligation to sit through a two hour presentation to obtain discounted tickets) and amount of time it will actually take to possibly alleviate someone from their timeshare.
  • Eliminate company mediation. Do not require consumers to mediate through the company’s internal program should a dispute arise. Instead, use neutral, third-party mediation source such as Better Business Bureau or American Arbitration Association.
  • Easier exits. The recent establishment of deed-back programs may be a step in the right direction. More consumers should be able to take advantage of these programs. The establishment of more deed-back programs is likely to lead in a decrease in fraud seen in the resale and exit markets.

Inside Timeshare has received 515 timeshare complaints from our readers, 271 since January 1. All but a handful report their complaint was dismissed with “You signed a contract” or “We are not responsible for what our sales agents say.” Our advocacy efforts have had an effect. After publishing this last statement a few times, the defense has been changed to, “It sounds like a he said, she said” still relying on the oral representation clause. About 200 complaints were copied to ARDA / ARDA ROCbut were ignored.

If “You signed a contract” – is the industry’s official policy, and the regulator’s position in some states, the public needs to be made aware misrepresentations reported by timeshare buyers will be ruled in favor of the timeshare sales agent. In Florida and Nevada, all our readers’ complaints filed with those state Attorney General’s timeshare divisions have been dismissed with “You don’t have proof.” An upcoming article examines proof and why FBI agents and several attorneys don’t buy this response.

Inside Timeshare contributor Sheila Brust reported, “We were given ludicrous advice from a regulator that is clearly out of touch with timeshare consumer reality. I was told to contact a licensed timeshare resale broker, but every agent I contacted informed me my timeshare had no secondary market. By steering complaining members to licensed real estate agents, when turned down, members often end up the contacting a scam that will charge the member upfront money promising to sell or cancel their timeshare. Often that promise falls short.”

Inside Timeshare has received numerous complaints against Branson, Missouri sales centers. Our researchers discovered one Branson timeshare sales manager was selling points at the same time he was working for a timeshare exit company named Mutual Release a suspicious name for a company, as mutual release is the form signed when a timeshare issue has been resolved.

Our Advice

DON’T FINANCE A VACATION or any Luxury Item AT 12% TO 19% and don’t believe a word a timeshare sales agent says. As the St. Louis BBB recommends, check with a member of the Licensed Timeshare Resale Broker Association before buying any timeshare. There you will receive straight answers.

 http://www.licensedtimeshareresalebrokers.org/

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

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

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

https://tug2.com/Home.aspx

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

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

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

Sometimes it’s hard to focus on the positives when it feels like the battle is all uphill. All we can do is reach out to those who feel lost to let them know Inside Timeshare and real advocacy groups are there for them. Consumer and advocacy are two words members should take with a grain of salt, used and abused by scam artists. We are real advocates.   

That’s it for this week, Friday is here and the weekend is about to start, for those in Europe beware the heat wave, especially if you are travelling to Spain, Seville is reported to be facing temperatures of 48º C or 118º F.

Join us next week for more news and views on the world of timeshare, don’t forget if you have any comments, questions or just need to know about any company that has contacted you or you have found on the internet, then use our contact page and we will point you in the right direction.

Have a great weekend and don’t get sunburnt!

Another New Timeshare Claims Company

Once again one of our readers has pointed out another company that is offering timeshare reclaims, they are called Timeshare Redress with the website:

https://timeshareredress.com

With the following address Telephone number and email:

Ground Floor, 22 Vantage Park,

High View Close, Hamilton,

Leicester LE4 9LJ, United Kingdom.

0800 051 1738

[email protected]

The website is very new only being registered on 8 June 2018, with the registrar hidden by redaction for privacy, yet according to the Home page they are “helping clients claim back £thousands”, that they are “One of the leading claim handlers in the UK”, also stating they work on a “no win no fee” basis.

Well, for a website only registered less than 2 months ago these are rather grand claims to be making. So who are they?

The actual company is called Money Redress Limited with the company registration number 10483863 and registered at the above address. The company was incorporated on 17 November 2016 so only just under 2 years old.

The first director was Ian Richard Francis, who resigned on 25 April 2017, being replace by Robert James Jeffrey Ridge on 2 March 2017.

Mr Ridge who is aged around 41, has had a total of 18 appointments, 5 which are still active, 1 in liquidation and the rest are dissolved companies. One company is also registered at the same address which is called Pension Calculator Limited, Company number 08957148.

According to their website, (About us) they are working in partnership with one of the leading law firms in Spain, yet they do not name them anywhere on their website, surely that would be one of the most important points to give credibility?

They do go on to state the following about their Spanish partner:

  • Listed as recommended lawyers with the British Embassy/Consulate, US Embassy and Irish Embassy, as well as being members of regulated legal bodies such as the IBA (International Bar Association).
  • Qualified Legal Representatives: Their legal team are made up of fully qualified and experienced lawyers who can provide you with comprehensive information, detailed estimations of all fees, costs and taxes involved, and clear and concise explanations of the legal process.
  • No language barriers: Their office staff include native speakers from the UK and US, as well as Spain, and staff who can converse with you in English, French, German, Russian and Swedish – so you can be confident of fully understanding the legal process throughout the course of your case.

Inside Timeshare did contact the leading law firm in this field to check if they had any knowledge of this company, but they had never heard of either Timeshare Redress or Money Redress.

The website does emphasise the Spanish Supreme Court rulings and cases brought in Spanish courts against 5 of the major players in the timeshare industry, but again no mention of which law firm is responsible.

The Latest News section shows three reports, all three taken from other sources, one from New Business and the other two from the Telegraph. One of the articles from the Telegraph is extremely dated as it has quotes from the TCA by the late Sandy Grey, who as we know passed away in 2013.

When you check the Services section, you will get a drop box with the list of timeshare companies, each one takes you to a contact form asking for very basic details Name, telephone, email and was the timeshare purchased or upgraded after January 1999 and then a submit button.

So what can we assume from this website?

At first glance is does appear to be a “lead generator”, submit the details and they are then free to contact you and pass you on to another company, thus getting round the new data protection laws.

So what about the no win no fee aspect?

As we know any legal action through the courts in Spain requires a Spanish registered lawyer, it also requires that legal fees are paid upfront, so this rules out the no win no fee aspect. Although the no win no fee could be the success fee payable on completion of the case and a successful payout from the timeshare company through the court. Only one snag here, these cases can take a long time to actually get through to the payout stage, according to cases at court now, they have taken around 12 to 14 months to reach the trial date, this is without the timeshare companies making an appeal when they lose. One just wonders if these people will still be about by then?

Once again we have a new player on the block, with no actual evidence of who is behind it, after all directors are only the front men, not necessarily the owners of the business. We have a website that is very new yet makes some very big claims, a section which is typical of a lead generator and no mention of which law firms they are in partnership with. All this leads us to view them with great suspicion, as we keep saying the timeshare claims business is a very lucrative area and since the first Supreme Court rulings many have jumped on the bandwagon, even though they have no actual knowledge of the timeshare industry or timeshare law.

This is a classic example of why you should be doing your homework, finding out about any company that contacts you or you have found on an internet search, popup advert or even adverts in newspapers and magazines. After all, we even have the story of one reader who answered and advert in the Royal British Legion Magazine, a trusted organisation, then got scammed. As we explained to her, the marketing companies sell advertising space, they don’t do checks on the credibility of advertisers!

If you have any questions are need help in checking any company, then use our contact page and Inside Timeshare will point you in the right direction.

Join us tomorrow for our Friday’s Letter from America, with a Timeshare Report by the St Louis Better Business Bureau, edited by our very own Irene Parker.

The Changing Face of Timeshare Scams Pt 2

Over the years we have seen various changes in the scams surrounding timeshare, from the development of resorts in the beginning then the resale scam to the latest of the fake law firms. Once the timeshare is purchased then the never ending problem of who to trust emerges. Today we have a brief look at how these scams have changed, the only thing that ties them together is they want your hard earned cash.

The first scams to take place in what should have been a good product was the off-plan purchase. In the early days when timeshare resorts were proliferating, those on holiday were lured to the presentation deck or showrooms to be sold “The Dream”. These “UP’s” or “Unit Prospects” as you are known, were usually picked up off the street by the OPC’s or the touts with the scratch cards, every single person given these cards would win the Star Prize. Then taken to the deck to claim it and sit with a “rep” for the presentation.

They would be shown architects plans and artistic impressions of what the resort would look like, what facilities it would have and the standard of the apartments. Usually photos of existing resorts would be shown to enhance the quality that you would expect. It was also sold as an investment, you were buying into property or real estate, which would go up in value. In essence you were buying a share in your very own holiday home.

A proposed date for completion would be given and then the hard sell kicked in, for just a small deposit you can secure the week and apartment of your choice, if you could not afford the full price a payment plan or finance could be arranged. After all it would be some time before you would be able to use the resort as it still had to be built.

Unfortunately, many of these resorts were never actually completed or even started, what you purchased was a hole in the ground and “The Dream”. Many of these sales took place in destinations such as Portugal, Spain and its Islands. This did give these countries a very bad reputation.

It must also be remembered that these schemes tended to be run by criminals who needed to launder their ill gotten gains from criminal activities in their own countries. That was the start of the word “Timeshare” becoming synonymous with scams.

Once timeshare was established, the resale scam began to appear, many of these were based on the Costa del Sol which had many timeshare resorts. Call centers were set up, usually in apartments and hidden, remember there was no internet at that time, so making checks was virtually impossible.

The caller would introduce themselves and ask if you still owned the timeshare, once this was established the question of have you thought about selling, as the prices of timeshares was increasing. After all the purchaser did think they owned property!

After establishing what the owner had paid and what they owned, the agent calling would come up with a wonderful story of how they had sold recently for almost double the original purchase price. Once the owner had been hooked with the greed factor, then the agent would be needing a payment to list the property for sale. That would be the last you heard from them or your money.

The next move in the resale scam was the guaranteed buyer, or the corporate buyer, these tended to be the Discount Members Holiday Clubs, such as Designer Way Vacation Club and Club Class Concierge.

These originally worked in 2 ways, the pick up off the street or cold line, the call center targeting timeshare owners through lists. The cold line didn’t generally target owners, but once at the presentation they would establish that you did own timeshare.

With the telephone targeting of timeshare owners, they would be told that there was a buyer who was looking for timeshares, usually a corporate buyer. Once you agreed that you would be interested in selling they would invite you to their offices in Spain with free accommodation, to attend a meeting.

Once at the meeting the corporate buyer turned out to be a sales agent for the holiday club, they would take the timeshare off your hands but to do so you had to purchase membership into the club. You would get a discount for the timeshare and in many cases what was known as Cashback, which was another con in itself.

It the turned out that the discounts promised never materialised, the excuse was always the same, sorry not available on those dates. It also turned out that in many cases several year down the line the timeshare company started for non- payment of maintenance fees. The timeshare had not been disposed of as promised.

Thankfully the main culprits have been closed down, but there are still some about, resale scams still exist, but from what we have seen they are mainly targeting French and Belgian owners and are based in Marrakech.

We now move on to the claims sector which has really started to take off since the first Supreme Court rulings against timeshare companies.

Some of these are very sophisticated frauds, such as those of the Tenerife based family of fake law firms which we have dubbed the Litigious Abogados Family. Their method is very well put together, they even have some excellent fake court and procurator documents.

First they contact the owner, (in some cases the timeshare is no longer owned), with the story that the timeshare company is about to be taken to court and you can be in on the case. You are likely to receive thousands in compensation, but you do have to pay a fee to the procurator. Once paid, give it a couple of weeks and you are then notified that the director pleaded guilty and you have been awarded a substantial amount. Unfortunately there is a tax to be paid, which is 20% of the awarded amount, to back this up the unsuspecting timeshare owner is sent fake court documents showing the sentence and a photocopy of the cheque they will receive. Yes you guessed it there was no trial and you have just lost thousands.

Another ploy is the so-called firms calling themselves lawyers or claims companies, the pitch is simple, you have a claim which they will do on a no win no fee basis, great no legal fees upfront. There is one snag though, you need to cancel the contract first, but guess what they can do the relinquishment for you. All you have to do is pay upwards of £5000 and you will be out, then they will start the claim for you.

In some cases these companies have also used the “bait and switch” tactic to sell their own product, “Leisure Credits” (think Monster Credits) which is a discount club (very similar to the holiday club), again not worth the paper the contract is written on.

What we have seen with these particular schemes from many of our readers is simple, they have never received any money for the claim and they are now being chase for around 3 years of back maintenance. Their contract have never been relinquished.

We have seen this with one company that has gone out of business, RSB Legal. They operated for about 3 years so must have taken hundreds of people for tens of thousands of pounds. It must also be said that the UK authorities such as Trading Standards as well as the police are investigating many companies.

Yes, for the poor timeshare owner it is a very perilous world, a veritable minefield where thousands are lost on an almost daily basis, with very little hope of ever recovering what has been paid.

There are some genuine law firms and claims companies, these will not tell you that you have a claim if you don’t, it is not in their interest to take on cases which are not valid. As for relinquishments, many resorts will not deal with third parties, Ona Group, MGM Petchey, MacDonald Resorts, Diamond, Club la Costa and many more, they will only deal direct with the member. Then in most case the fee they charge is usually far less than what you would pay these other companies.

It now remains to be seen what form the next phase of scams will take, these crooks will always find an angle, after all they do want your money!

So the moral of this tale is doing your due diligence and plenty of homework, if you don’t know where to start, then use our contact page. We are here to give you free advice and point you in the right direction.

Marriott Admit Losing in Spanish Courts

On 7 July, Market Exclusive published an article reporting on the financial statements issued by Marriott. (See link at the end). After the preamble they began by announcing they had identified Fraudulently Induced Electronic Payment Disbursements”, which resulted in $9.9 million resulting from unauthorized third-party access to their email system. They duly notified law enforcement and relevant financial institutions, commencing an investigation.

They have managed to recover $3,2 million, but are hopeful they will recover the rest. Now this is just a start in their report.

They have also acknowledged they are recording pre-tax litigation expenses of $16.3 million, these are to settle in principle, two actions in their North American business with the Petrick action and an owners action brought by those with fractional interests at the The Ritz-Carlton Club, Lake Tahoe. It will also include actions by owners of Marriott timeshare interests in Spain.

The litigation on their Spanish business is a result of the laws Spain has brought in to protect consumers, this law known as Ley 42/98, was enacted in January 1999 and invalidated many timeshare contracts sold after that date.

Marriott, as many other timeshare operators believed, that by filing a deed of adaptation they would be able to continue as before, but they were sadly wrong. It took many years and court battles to get to the stage Spain is at now, the strongest timeshare laws in Europe.

Marriott Marbella

So what makes these contracts illegal?

Many timeshare operators continued to sell perpetuity contracts, when the law stipulates they should be of a minimum of 3 years and a maximum of 50 years. They also continued to sell the floating weeks and points systems, which gives the purchaser no actual rights apart from the right to use subject to availability. With the fractional ownership, the Supreme Court clearly regarded this as timeshare, as usage was dependent on a points system being allocated. Fractional was designed to “replace” timeshare with the promise of “purchasing shares and investing” in a real estate property, but again in Europe timeshare should never be sold as an investment.

We have seen over the past few years many other companies falling foul of this legislation, Anfi, Palm Oasis, Holiday Club / Puerto Calma and the Diamond run resort Cala Blanca in Gran Canaria, Silverpoint in Tenerife and a host of others all over Spain. Marriott is just the latest to be hit by timeshare owners becoming aware of the laws and finding they now have a way out of the never ending cycle of upgrades and maintenance payments.

Marriott, have also conceded that this litigation is going to cause them to incur considerable and “material and litigation” costs, along with the settlements and judgement costs. They have also admitted that it will have a severe effect on their results in the European sector and will have repercussions on their business and financial condition.

The one thing Marriott along with others in the industry are still saying, is they all disagree with these rulings, that the law as interpreted by the 126 rulings of the Supreme Court are wrong, they are seeking to introduce legislation “that will implement a more balanced approach”. More balance, or do they mean going back to when they believed they could not be touched and did exactly as they wanted.

Although they do go on to say the following “The timeshare laws, regulations and policies in Spain may continue to change or be subject to different interpretations in the future, including in ways that could negatively impact our business”. Negatively impact their business, well they only have themselves to blame, had they sold within the regulations, they wouldn’t have to worry about negative impact!

On this point of Marriott and others in the industry lobbying for a change in the law, this has now been set by the Supreme Court, the only way that the law can be changed now is for the Spanish parliament to pass new ones. This is very unlikely to happen, even if it were to happen, then we would end up with many years of court cases and appeals to the Supreme Court to clarify any new laws.

At present the law firm which is responsible for the clarification of the law with now 127 rulings from the Supreme Court, Canarian Legal Alliance, has many cases upcoming against Marriott. These cases are only now just starting to take place, CLA have at least 2 cases already presented at court with around 30 in the final stages of presenting to court. They are also looking into new clients cases, all these contracts are in perpetuity and use the point system, so this figure is surely set to rise.

On the point of the Supreme Court rulings, Canarian Legal Alliance began seeking clarification from the Supreme Court well over 7 years ago, they eventually received their first victory against Anfi in March 2015. This case involved the Norwegian client Mrs Tove Grimsbo, it was a long drawn out case, but the precedent had been set. Within weeks of this first ruling, many more followed, setting in stone the laws that for many years had been interpreted differently depending on the court and the judge presiding.

It will be interesting to see whether Marriott go the same way as Anfi, Silverpoint and others in constantly appealing against any rulings made against them, or will they just payout and cut their losses?

Only time will tell, we will certainly be keeping an eye on these cases.

Link to the original article:

https://marketexclusive.com/marriott-vacations-worldwide-corporation-nysevac-files-an-8-k-other-events-4/2018/07/amp/

Links to previous Inside Timeshare articles on Marriott:

http://insidetimeshare.com/tuesday-slot-irene-parker-marriott-racketeering-lawsuit/

http://insidetimeshare.com/starting-the-week/

If you need any further information on this subject, whether it be a Marriott, Anfi, Silverpoint or any other timeshare, then use our contact page and we will get back to you and point you in the right direction.

Have you been contacted by a company that tells you that you have a claim, and want to know if it is genuine and they are a legitimate company? Then contact Inside Timeshare for the facts.

Start the Week: Diamond Lose in Tenerife; Latest news on Tauro Beach and Anfi.

Welcome to the start of another week with Inside Timeshare, today we report on two cases Diamond Resorts have lost in Tenerife, but first we look at the disturbing scenes at Tauro Beach over the weekend.

Over the past year Inside Timeshare has been reporting on the debacle that is the Anfi Tauro Beach Project, this has been an ongoing saga, with charges being brought against the former head of the coastal authority along with others and a full blown investigation by Seprona, the Guardia Civil Nature Protection Service.

It has been well reported that Anfi had plans to transform the old shingle beach into a man made one with sand, build a marina and also several hotels with a shopping complex on the land behind. It turns out that part of the investigation into the beach found the sand had been illegally imported from the Western Sahara. (see link to The Guardian Article).

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

Now a company called Desokupa went in over the weekend and began demolishing the homes of those who live there. The reason is the land “belongs” to Anfi, who claim that these dwellings are illegal. Whether they are or not is not the point, considering that there are no planning permissions in place and the fact that the Anfi concession to run the beach is on hold while the Gran Canarian government apply to the courts to revoke the licenses. Should these demolitions have waited until the outcome?

https://www.youtube.com/watch?v=BIHbrdIC_To&feature=share

Was there a court order which allowed Anfi to bring in the bulldozers?

All valid questions which will eventually be answered, but what we have lost is a little bit of old Gran Canaria and a very popular paradise spot, for locals and tourists alike. The bar Pio Pio is one of the most popular venues in the area at the weekend, with a wonderful atmosphere and great music. Is that now in danger!

https://www.eldiario.es/canariasahora/sociedad/Violento-derribo-chabolas-Tauro_2_794790515.html

Since publishing this following has appeared on facebook for Nueva Canarias

https://www.facebook.com/permalink.php?story_fbid=10155352630021755&id=185892306754

It will take you to the link below, this is very disturbing news.

http://canarias-semanal.org/not/23270/un-comando-de-boxeadores-peninsulares-viaja-a-gran-canaria-para-derribar-chabolas-video-/

Now for the court cases against Diamond Resorts and a look at timeshare law compared to other places.

Both these cases were heard at the High Court No 3, Santa Cruz de Tenerife, both were appeals on behalf of the British clients. These cases were originally held at the Courts of First Instance and unfortunately the clients lost those cases. These were heard before the Supreme Court in Madrid issued the numerous rulings (now 126) on how the timeshare laws should be interpreted and applied.

Before these rulings, different courts and judges interpreted the laws differently, no one actually knew how the laws should be applied. This is nothing unusual in legal work, laws are put into place, but it is not until they are tested and challenged are they effective, this is what the Supreme Court has done, issued a definitive interpretation.

In the first case, the client has been awarded over 19,000€ plus legal interest, with the contract being declared null and void.

In the second case held at the same court, over 30,000€ has been awarded plus legal interest, again the contract being declared null and void.

The court found several infringements of Spanish Timeshare Law 42/98, (along with other relevant Consumer Laws), with contracts being over 50 years in duration and the illegal taking of payments within the cooling off period. The court also found as per the rulings from Spain’s Highest Court that the contracts lacked any substance or tangible product as they were points based. These have been declared illegal in Spain. (See PDF’s below for the court sentences).

HC n 3 Diamond 1

HC N3 Diamond 2

So how does Spain’s timeshare laws compare with elsewhere?

During the early days in Europe, timeshare was virtually unregulated, know one actually knew what it was, was it real estate, as that is how it was “sold” to the public, a share in your own holiday home, or was it purely a holiday product which was not an investment?

The free for all lasted some years, then the European Union issued the first of many Timeshare Directives, these were to try and regulate the industry, with the directives supposedly being put into the domestic laws of each member state. Basically all singing off the same hymn sheet!

In some countries, the directives were very much watered down, the industry trade body The RDO and the “representing” owners body TATOC, (now defunct), successfully lobbied the UK parliament and those laws are probably the weakest in Europe, they tend to be in favour of the industry not the consumer.

Spain on the other hand had a very different approach, which in some respects is not that surprising. Spain was one of the major places for timeshare development, they had just recently found freedom and democracy, with the country in dire need of development. The building of resorts and the tourist industry was one of the most important factors in this development.

The unfortunate thing is the free run timeshare developers had, timeshare was being sold even before the resorts were actually started, known as off plan. Many consumers got stung in these enterprises, with the resort they paid for never even getting built.

People on holiday were being picked up off the street left right and center, taken to sales presentations and coerced into parting with huge sums of money. Spain’s reputation as a great holiday destination was being sullied by these practices.

That all changed in December 1998, when the government introduced Law 42/98, based on the EU Timeshare Directives, but stronger. Spain was going to have the strongest laws in Europe and this was going to hurt the industry if they didn’t comply.

The law became effective on 5 January 1999, although they did allow a period where the timeshare companies could get their house in order and comply. One aspect of the law was regarding the duration of the contract, before, these were sold in perpetuity, there was no end date. The law now demanded that contracts be for a duration of a minimum 3 years and maximum of 50 years. Timeshare companies were allowed to place a deed of adaptation to all contracts sold before the law came into place, this allowed the pre 99 perpetuity contracts to remain, but all new sales must conform.

Many ignored this, on advice from their lawyers many continued to sell perpetuity, citing the deed of adaptation as the basis for carrying on. This obviously was one point that needed to be tested in the Supreme Court, but that would be many years ahead.

As a point of interest, there were two countries where timeshare laws only allowed for a maximum of 30 years on contracts, they are Madeira and Malta. Those had been put into place right at the start of timeshare development.

Another aspect of the law which Spain has put into place is the illegality of the Floating Weeks and Points systems. According the the Supreme Court they have ruled the timeshare law clearly states that any contract must have substance and tangibility, in other words the guarantee of the apartment and the week being sold. Floating weeks and points do not do this, you only have a right to use subject to availability.

So how does this compare with our friends experience across the Great Lake in the US?

Well from the many articles we have published on Inside Timeshare, they are sadly lacking any control or real consumer protection, it is pot luck which State you have purchased as to what protection you have. There appear to be no Federal Laws governing the sale of timeshare.

In Europe we have the 14 day cooling off period, where no payments should be taken and the consumer has the right to cancel, in some States we have been informed this can be as little as 3 days!

From what we have published, there are so many different agencies and authorities for the consumer to turn to, from Attorneys General (that depends on which State you are in) to the Federal Trade Commission and the FBI. (See link below on filing a complaint).

http://insidetimeshare.com/the-teusday-slot-with-irene/

We are seeing many complaints coming into Inside Timeshare on the practises of sales agents, which the timeshare companies seem to condone. There needs to be regulations to govern what is acceptable and what is not, these should be right across the board so that no matter which State you purchase in, the rules are the same for all.

Canada is preparing new legislation on the regulation of timeshare, we hope to bring you news of this from our Canadian readers in the near future.

South Africa is also pushing for changes, there have been several high profile cases against the timeshare industry, resulting in jail time and massive fines. It will not be long before they also have some of the strongest laws regulating timeshare in the world.

In Australia, there is also a move to regulate the timeshare industry, we have published in the past a couple of articles on timeshare down under. Again we wait for our Antipedian friends to submit their articles.

There is nothing wrong with the concept of timeshare, it may not suit everybody, after all we are all different, but it is how it is sold and administered that is the problem. For too long the industry has and in many cases, the US in particular, still carries on as though they are untouchable.

Diamond believed this in Spain, these cases highlighted today and those in the past along with the many more waiting to be heard, are letting them know that they are not above the law and will be curbed and brought to justice. Consumer protection is paramount in any industry, after all it is the consumer’s money that keeps any company afloat!

If you have any comments on this or any other article, then use our contact page, Inside Timeshare welcomes them.

Are you being contacted by different companies offering claims or relinquishments? If so and you are not sure if they are genuine and will do what they say, then contact Inside Timeshare, we will help you look for the information and point you in the right direction.

Tomorrow we publish an article by a new contributor, Diane Creager and titled Elder Advocates, so join us tomorrow and welcome Diane.

Friday’s Letter from America

Welcome to another Friday’s Letter from America, this week Irene Parker looks at Whistleblowers of America and their report to the Veterans Affairs Committee. As we have reported in previous articles, we have received many complaints from veterans who have had very bad experiences with timeshare sales agents. These practices are unexceptable and need to be stopped, but that can only come from the top of the timeshare companies, if they have the will to do it!

Now for some news from the Spanish courts, more legal history has been made at the Supreme Court in Madrid, Silverpoint has had another 2 judgements made against them, bringing the total of rulings from Spain’s Highest Court to to 126!

The tally this week is:

2 Supreme Court against Silverpoint;

3 more Court of First Instance against Anfi del Mar;

3 Provisional executions of sentence against Anfi del Mar, (this has secured over 93,000€ for clients with Anfi depositing the funds at the court of San Bartelomé de Tirajana);

2 High Court victories against Diamond Resorts International.

In the Diamond sentences, the clients have been awarded their full purchase price plus double deposit for a total of 19,504€ and 30,000€ respectively. These and the contracts for the clients above have all been declared null and void.

In total the 7 sentences amount to over 370,000€ another expensive week for the timeshare industry in Spain. All these cases have been brought on behalf of clients from all over Europe by none other than those intrepid lawyers at Canarian Legal Alliance.

As we near the end of July, we only have one more week where the courts are working, August is the annual close down, so we will see no new cases being heard until September.

Now on with our Letter from America.

Whistleblower Retaliation against Government Workers, Employees, Timeshare Members and Timeshare Sales Agents

62 out of 500 timeshare complaints we have received are from veteran and active duty members of the military and law enforcement

A Whistleblower Summit in Washington D.C. July 30 – 31

http://whistleblowersummit.com/

By Irene Parker

July 20, 2018

There are several federal and state laws in place to protect government and corporate employee whistleblowers from retaliation, but whistleblowing is never easy and can take a personal toll. A whistleblower friend of mine suggested I attend the Whistleblower Summit linked above, because of threats and accusations our advocates, Charles and I have received over the past two years. I have heard the following false statements made about Inside Timeshare and our advocates through the timeshare grapevine:

  • That our articles are based on false information. Many articles are submitted by our readers, which I edit, or the content provided by our readers.
  • Our advocates are compensated financially for assisting members,
  • Our advocates are practicing law,
  • Our advocates are compensated for soliciting business for lawyers,
  • We’re targeting certain timeshare sales agents (we call repeat offenders)

Articles written by timeshare members describing their timeshare experiences are revealing and important. One of the Whistleblower Summit presentations I am looking forward to attending is titled,

Unleashing the Power of – YOUR – Story

Moderated by Gloria Minott, Public Affairs Director WPFW

“Story is what defines us and set us apart. It’s what allows us to connect with each other. Story is powerful. Story is grossly misunderstood. A good story has conflict, but ultimately resolved. A story is messy and full of confusion, but there is meaning and completeness to it. Stories have natural momentum to them, fueling our passion to find out more from the teller. Stories are laden with bait and intrigue, with suspense and tension. Stories are provocative.” Jeff Goins

Whistleblowers of America is a nonprofit organization assisting whistleblowers who have suffered retaliation after having identified harm to individuals or the public. Founder Jackie Garrick will moderate a panel discussion at the upcoming Whistleblower Summit that will address resilience after retaliation

“My numbers are going up with new reports every day,” says Jackie Garrick, founder of Whistleblowers of America (WoA). Garrick created WoA earlier this year after discovering firsthand how difficult the process of reporting wrongdoing can be, and the personal toll it can take on the people blowing the whistle. By offering up the help and insight of former government insiders and whistleblowers like herself, Garrick is hoping to not only encourage more people to come forward, but also to simply support them once they do so.

http://www.foxnews.com/us/2018/04/10/va-whistleblowers-under-threat-seek-help-from-outside.html

So far the only information available on timeshare whistleblowers concerns a lawsuit in which a jury awarded former Wyndham timeshare sales agent Trish Williams $20 million.  

She is also a rarity: a whistle-blower who has succeeded in bringing to light abuses at a powerful corporation that wanted to keep them hidden.

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

Despite several relatively recent Attorneys General investigations and settlements, lawsuits galore, and a flood of internet complaints, the timeshare industry continues to place blame on their customers and on advocacy groups. In other words, the industry believes Inside Timeshare either invented 500 timeshare complaints or that the 500 members would be happy timeshare members had they not read Inside Timeshare articles or joined one of several members sponsored advocacy Facebooks and websites. Almost all of the 500 members are highly educated, professional, high credit score citizens. At least they had a high credit score until they were sold or upsold into timeshare insolvency.

It doesn’t matter how many millions love their timeshare. What matters is that the majority of the 500 families have alleged they were fraudulently sold a timeshare product. All but a handful received an automatic “You signed a contract” dismissal from the timeshare company.

Whistleblower advice for corporations and agencies from Findlaw.com:

How (Corporations) can Avoid Whistleblower Claims

Here are a few steps that you (a corporation) can take to reduce the risk that your company will be subject to such a lawsuit. In parenthesis are my observations as they apply to timeshare:

  • Don’t retaliate — Try to remember not to treat employees (timeshare members) that have complained about your company any differently than those who have not.
  • Have a complaint policy in place and be sure to use it — It is a good idea to have a complaint policy in place, even if it is not required by law. Train and educate your employees in using the system. Once you have your complaint policy in place be sure to abide by it. (According to member reports, the timeshare complaint policy has been to provide the complaining member with their initials on fine print and dismiss them with, “You signed a contract” or “We’re not responsible for what our sales agents say.”)
  • Investigate all credible complaints — If you receive an internal complaint about alleged wrongdoing, be sure to investigate it, so long as it is credible. If you find that the complaint was truthful, take the steps needed to remedy the situation.(The timeshare member has often reported that they were told they were wrong and the timeshare sales agent judged truthful)
  • Be careful in disciplining whistleblowers for other misconduct — If you have a whistleblower in your company that needs to be disciplined for other conduct you must be very careful. Get evidence to support your claim that you are disciplining for reasons other than the whistleblowing and make sure the employee knows the reason he or she is being disciplined.

 

https://smallbusiness.findlaw.com/employment-law-and-human-resources/whistleblower-retaliation-could-land-you-in-trouble.html

Following the above advice would eliminate the need for timeshare advocacy groups and whistleblowers.

United in Speaking Truth to Power

www.whistleblowersofamerica.org @whistleP2P

601 Pennsylvania Ave, South Tower, Suite 900 Washington, DC 20004

Jackie presented testimony to the House and Senate Committees on Veterans Affairs March 14, 2018. She included Timeshare Advocacy Group’s veteran timeshare fraud report in her statement. Several of the 62 veteran timeshare members we have assisted struggle with disabilities and PTSD as described in the report. Jackie believes that retaliation can cause PTSD.     

  • The veteran population has very complex needs due to unique exposures/injury during military complicated by having two plus significant medical problems in one patient.
  • Veterans experience Traumatic Brain Injury (TBI) and Post Traumatic Brain Disorder (PTSD). According to the CDC, about 40,000 Americans die by suicide each year making it the 10th   leading cause of death. (Several of the veterans we have helped struggle with PTSD and TBI, one is a decorated Marine, and another a Marine who earned two Purple Hearts.)
  • Agent Orange exposure – For example, eye cancers are a continuous issue. (Two of our disabled veteran timeshare members are disabled from Agent Orange exposure)
  • Gulf War Illness – Illness haunts Gulf War veterans. (One of the timeshare members served in the Gulf War and is on 25 meds)
  • Camp LeJeune: Due to water contamination at the Marine Corps Base, Camp LeJeune, increased reports of cancer in veterans and their families have been documented over the last several decades related to the solvents in water.
  • Burn Pit Exposure: Those who served in Afghanistan and Iraq since 9/11 were exposed to a concoction of burning substances on military installations that has caused them to raise health concerns from cancers to respiratory and gastrointestinal disorders. (One of the members we assisted was diagnosed with blood cancer having lived next to a burn pit in Basra)

Statement of

Ms. Jacqueline Garrick, LCSW-C

Executive Director

Whistleblowers of America

Before the

Committees on Veterans’ Affairs

U.S. Senate

U.S. House of Representatives

March 14, 2018

Fraud and Scams Against Veterans:

Although WoA recognizes that it is not inherent within the VA mission to protect veterans from fraud and scams that could cost them their benefits, it suggests that it could be assistive in educating veterans against these unscrupulous tactics. For example, WoA has had multiple complaints from veterans related to timeshare deceit and bait and switch tactics, which are defined by the FBI as fraud for profit.  Often elderly veterans are mentioned as being targeted by the Timeshare Advocacy Group, TM which fights for active duty and retired military who fear losing their security clearance, career, homes or other assets.  Foreclosures and financial distress because of these misrepresented investments are happening every day to elderly disabled veterans and their families. In the past, VA has cooperated with the Consumer Financial Protection Bureau (CFPB) over mortgage and other loan scams that caused financial hardships for veterans.  Home loans and timeshare loans are identical as both are reported as foreclosures. WoA asks that Congress consider a role for the VBA Employment and Economic Initiative (EEI) could play in cooperation with CFPB to educate and protect veterans from unscrupulous financial predators and fraudulent practices.

Jacqueline Garrick is a former Army social work officer who has worked in the Departments of Veterans Affairs and Defense as well as for the House Veterans Affairs Committee.  She is a subject matter expert in mental health and program evaluation. She is an advocate for disabled veterans and the use of peer support to improve resilience in traumatized populations.  She founded Whistleblowers of America in 2017 based on her experience reporting attempted fraud with DoD Suicide prevention funds.

We thank Jackie and Whistleblowers for their support. It is our hope that through public awareness and knowledge, the consumer will be better able to make an informed decision as to whether a timeshare, especially one financed at 17%, is a good idea for the family.

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

That’s it for this week, Friday is upon us and the weekend beckons, on Monday we will be publishing the court cases against Diamond and how Spanish law is protecting consumers, we will be comparing this with what is happening across the Great Lake with our US cousins.

Inside Timeshare would like to thank all contributors to these articles and also to those who supply the evidence and information on the “fake” companies that are trying to rip you off. It is your valuable information which goes to help and save others from these unscrupulous charlatans.

Remember to check, check and check again, doing your homework will save you your hard earned cash. If you are unsure how to check, then use our contact page, we will be happy to point you in the right direction.

Have a great weekend and join us again next week at Inside Timeshare.

Midweek Roundup and Another Dodgy Looking Setup

Important Update: Another reader has identified Lance Steer as one Lance Oakley, an ex-Diamond Sales Rep and also of ex-EZE Group.

Another name has come to the attention of Inside Time share from a worried reader:

Positive Outcome – Contractual Specialists

With the address:

Rural Innovation Center, 10 Street Avenue, Stoneleigh Park, Kenilworth, CV8 2RG

Which is a serviced office rental center where meeting and conference rooms can be hired by the hour.

They use the telephone number:  02476 960 735 which is a coventry code, when this number was called Inside Timeshare was told we had the wrong number. We have susquently found that the telephone number belongs to Coventry Creative, Advertising and Graphic Design , Rover Road, Coventry, CV1 3HT which is Coventry market, a completely different area.

The contacts are: LANCE STEER & JOANNE JOHNSON with the email address:

[email protected]

So far no company with this name has come up on any internet search, using the email address does not link to any website and no information about Lance Steer or Joanne Johnson appear on any search.

So what has concerned our reader?

Very simple, they have paid by bank transfer for a relinquishment of their Diamond membership, yet are still getting demands for maintenance arrears. So it looks like yet again money is paid and the relinquishment is not done.

According to the emails our reader has received, Lance says he has been helping timeshare owners for over 5 years, funny how we have not heard of him before. The other strange fact is that in his emails he goes on to say why he has not been in touch with his clients, listing his illnesses, bereavements and severely disabled Father. Even getting an assistant Joanne, to email clients and explain all his personal problems. (see PDF at the end). Not the sort of information one would normally give. (Looking for sympathy comes to mind).

His emails also go on at length about Spanish Supreme Court rulings, how he has studied many case files and come to the conclusion that all these contracts are illegal. (Which is not surprising considering he sold many of them).

In order to give credibility he mentions Canarian Legal Alliance and places links to their website, even including screenshots attached to his emails. All the details he puts in these emails look as though they have come directly from the CLA website, even using the same phrases.

Another part of his emails go on to tell the clients that Diamond and other timeshare companies have no right to chase for maintenance arrears, or that Daniels Silverman the debt recovery company has no right to chase the debt.

Unfortunately, all this information has convinced our reader to pay for a service which Lance cannot provide, after all we have stated on many occasions in these pages that Diamond, Club la Costa and many other timeshare companies and resorts will not deal with third parties for cancellation of contracts. They will only work with the members directly.

So just from the lack of information on the internet and the lengthy explanations on his illness and private life, plus the fact that Canarian Legal Alliance have never heard of Lance, does get the alarms bells ringing.

Sticking with Canarian Legal Alliance, this week they have announced the following:

Their lawyers have secured another 242,391.46€ on behalf of 6 clients, on the receiving end of this is Anfi Del Mar. These funds have been paid directly to the court of San Bartelomé de Tirajana in Maspalomas. The clients are: 2 from the United Kingdom, 2 from Norway and 2 from Germany.

This comes from the procedure put into place by CLA with a team of their senior lawyers Eva Guitierrez and Judith Diaz Pascual and Cristina Batista, enforcing provisional execution of sentence within 40 days of the judgement being issued. This means that once the judgement is issued the timeshare company must lodge the awarded amount with the court voluntarily or it will be enforced.

There is also another form of securing the funds which has just been enforced by the Court of First Instance No 4 in Maspalomas, which has placed an “Embargo” on Anfi accounts in respect of funds which are due to a German client. These embargoes allow the court to directly take the funds from those accounts and place them in the courts account ready to be paid out to the client.

These moves by CLA have been placed to ensure that funds due to clients are secured, even if the offending timeshare company is appealing. It also stops the timeshare companies from delaying the payouts, which has been the case in the past, now the clients know that their money is secure.

That’s it for today, if you have had any dealings with any company or individual such as Lance Steer, use our contact page and get in touch, we would love to hear from you. You can also contact Inside Timeshare if you require any information relating to your timeshare or any company that has contacted you.

Click below to read the two emails.

Lance Emails

Thursday News

Now we are in July the legal world will start to slow up in Spain, the courts are beginning to wind down for the August break, but there will still be some news as sentences are issued for cases previously heard.

In the Court of First Instance Number 4, in Maspalomas San Bartelomé de Tirajana, Anfi have been on the receiving end of a very severe sentence, this particular one shows the courts are not taking it lightly when timeshare companies break the law.

The Court House Maspalomas

In this case Anfi have been ordered to payback double the amount paid within the cooling off period, this can range from 10 days to 90 days. The law states that no payment shall be taken within this cooling off period even by a third party such as a trustee, which many timeshare companies have tried to use to get around this law.

This follows the Supreme Court rulings which created jurisprudence in 2015 in favour of the clients. This has been confirmed many times in Spain’s highest court and has been followed judiciously by the lower courts.

The clients in this case have also had their contract declared null and void but will now receive over 63,000€ plus legal interest.

The Spanish Timeshare Law 42/98 has been in existence since 5 January 1999, yet until recently the timeshare companies thought they were immune, since March 2015 and the very first ruling by the Supreme Court, they have found they are not as powerful or immune from sanction as they thought. Now with around 124 rulings the odds are firmly stacked against all contracts which have infringed the law, leaving the timeshare companies to pay back millions of Euros to clients. (See PDF below for the full court sentence).

1st N4 Anfi data protected (ves)

In further news from the Supreme Court, they finally issued their ruling in a case against Puerto Calma, in Gran Canaria. They have upheld previous judgement that the contracts which were issued were illegal under Spain’s Timeshare Law 42/98. This follows all other rulings from the highest court in Spain, declaring the contract null and void with the client being awarded over £11,000.

It looks like David Cox may have resurfaced, a new post has just gone up on his website, this lists “cases” won in court for his many clients since July 2017 upto April 2018. At first glance it does all look very impressive with the figure being shown, but it is when you actually start looking at the list the questions then begin.

Every single entry is worded the same, “Mr & Mrs X won damages, interest and costs in the amount of £xxxxx”.

There is no mention of which timeshare company, which court the case was held in and no mention of what the infringements of the timeshare laws had been. There is also no mention of which lawyers or law firm had conducted the cases.

Surely if you were looking for credibility you would show these details and the court sentence papers on at least some of the entries. So could it be as he has claimed of others that these are all Bogus?

Another fact which is rather disturbing is his companies adverts on the forum Timeshare Talk, which is owned by Mark Rowe. The reason this is disturbing is we all know that David Cox had a falling out with his former partner, posting many scathing comment about Mark Rowe companies, then they all disappeared!

Have they now kissed and made up, it certainly looks like it.

As usual we leave you the reader to make up your own mind.

If you want to know about any company that has contacted you or have found on the internet, then contact Inside Timeshare, we will help you get to the truth.

Join us tomorrow for our Friday’s Letter from America where we give you an update on “Sheilah’s Pencil Pitch” article, with an introduction by our very own Irene Parker.

Starting the Week

Welcome to our first article for July, we start this week with some news from the Courts in the UK.

On Tuesday 19 June at the Royal Courts of Justice, The Upper Tribunal, Tax and Chancery Division, sat on hearing brought by the Financial Conduct Authority and Barclays Partner Finance. Presiding over the case was Judge Timothy Herrington.

The case centers around a petition to the FCA by Barclays Partner Finance to issue a validation order for finance agreements made between April 2012 and April 2014 for loan agreements involving timeshare sales in Malta.

It transpired that the company which brokered the finance agreements, Azure Resort Services Limited, were not authorised or licenced by Barclay Partner Finance. They approached the FCA to have these validated and claimed that no consumer detriment had been caused by this.

The FCA did issue a validation order on the evidence it had from Barclay Partner Finance, they then received many complaints from many of those affected, this numbered around 1,444 clients.

On investigation it was found that consumer detriment may well have been caused with the new evidence coming to light. But the FCA felt it did not have the authority to reverse the validation orders and the case went before the Tribunal to have the validation orders reversed.

Canarian Legal Alliance along with other law firms representing clients had representatives in court. In the case of the CLA client, the loan agreements was for the purchase of multiple timeshare weeks. These were upgrades to original purchases in the “investment” packs being sold by Azure Resorts, which is the Malta arm of Silverpoint in Tenerife.

These multiple weeks were sold with a promise that a resale program would be put into place, then after two years they would be sold and the “investors” would be able pay off the loans with the money they would make on the sales.

As we know this ploy has been going on for years in Tenerife by Resort Properties / Silverpoint, which are subject to many cases going before the Tenerife Courts and the Supreme Court in Madrid. These sales have never taken place.

The CLA client was given a loan of over £20,000 to finance the purchase, they were misled into believing that the weeks would be sold and the loan agreement would be only for a two year duration. In fact the agreement was for a 15 year repayment term.

It is also known that the clients who were 75 at the time of signing had the loan approved within days of signing. At no time were they asked for any proof of income versus outgoings reports. These clients also signed the purchase agreements and the loan application forms after more than 5 hours of intense high pressure sales. They also felt they had no choice but to make these purchases so as not to lose out on money previously “invested” for weeks which had not been sold. The excuse they were given was what they had previously purchased were not selling as they were not the type of weeks and apartments which people wanted to buy.

The Judge presiding over the case then adjourned the hearing for deliberation, a verdict is yet to be announced.

If the validation order is reversed by the court, then this leave Barclays Partner Finance in a very difficult position, the upshot is if these agreements are not validated then Barclays Partner Finance cannot pursue the borrowers if they decide not to continue the payments. The lawyer for BPF assured the Court that until the judgement, BPF would not enforce the agreements for those who have defaulted.

This also leaves many other questions regarding finance agreements for timeshares, how many more have been made by unauthorised licenced brokers?

It also poses the question of ability to afford the repayments, especially when these agreements have been approved within days of signing, how many have been granted the loans without showing any proof of income versus outgoings reports?

Shawbrook Bank acknowledged this back in 2016, which we reported in an article in July that year, the CEO also resigned over this matter. (see links below)

http://www.telegraph.co.uk/business/2016/06/28/shawbrook-banks-shares-plunge-on-9m-hit-from-dodgy-lending/

http://www.thisismoney.co.uk/money/markets/article-3663651/Shares-Shawbrook-drop-challenger-bank-reveals-loan-irregularities-cost-9m-finance-chief-quits.html

Now for some news from the Spanish Courts last week.

The Supreme Court in Madrid issued two more rulings against the timeshare industry, number 123 and 124. These once again involved Silverpoint SL in Tenerife, they also lost in two cases in the Courts of First Instance held in Tenerife.  

In cases held at the Courts of First Instance in Maspalomas, Anfi were on the receiving end, with contracts being declared null and void and being ordered to repay the clients their purchase price back.

Diamond were also on the receiving end of a Court of First Instance ruling, again the contract was declared illegal and therefore null and void.

With these 7 cases the timeshare industry has been ordered to repay over 160,000€ and in most case legal fees and legal interest.

The lawyers involved in all these cases are the lawyers from Canarian Legal Alliance.

If you have any comments or questions regarding this or any other article use our contact page and get in touch.

Been contacted by a company or found one on the internet and you are not sure about them, then contact Inside Timeshare and we will point you in the right direction.

Fridays Letter from America

Welcome to our Friday’s Letter from America, Irene Parker continues our theme of “Nightmare on Timeshare Street”, with this latest article about the treatment of “Seniors” by the timeshare industry. This article edited by Irene is from another new contributor Jang Park.

But first the latest breaking news from Europe.

Legal history has once again been made in Spain, the Supreme Court has issued another two judgements, numbers 121 & 122. These cases again involved the Tenerife timeshare operator Silverpoint, who has figured in a huge number of cases in the past year. They are also losing on an almost daily basis in the lower courts in Tenerife, this is a result of years of malpractice in the sales of their timeshare product which has seen hundreds of consumers lose thousands of Euros each. (See yesterday’s article, Silverpoint in the Courts: Criminal Action Vs Civil Action).

This weeks court figures are what can only be described as impressive, along with the two Supreme Court results there has also been the following:

In the Courts of First Instance in Maspalomas, Anfi del Mar has had EIGHT rulings made against them.

Silverpoint have also figured in the lower courts.

In the Courts of First Instance in Arona, Tenerife, Silverpoint has lost FIVE cases.

They have also lost in TWO cases in the High Court in Santa Cruz, Tenerife.

Diamond Resorts Europe Ltd have also lost TWO cases:

In the High Court number 3 of Santa Cruz, Tenerife, this court upheld the previous sentence from the Court of First Instance in Granadilla de Abona, which Diamond appealed.

In the Court of First Instance in Granadilla de Abona, Tenerife the client has been awarded over 24,000€, which also includes double the deposit illegally taken within the cooling off period. This particular case is interesting in that the company named is Sunterra Tenerife Sales SL, but under Spanish law Diamond are liable as they took over Sunterra members when buying out Sunterra years ago.

(See PDF files of the court sentences below).

Diamond 1st Instance

Diamond High Court

As usual all the contracts have also been declared null and void, leaving all clients timeshare free.

In all that is an incredible NINETEEN victories, totaling a massive 851,215.00€. This can only be described as a very expensive week for timeshare in the Canary Islands.

These cases were brought on behalf of these clients by the Gran Canarian law firm Canarian Legal Alliance. This does prove that despite what the industry is trying to tell people, these cases are genuine and the timeshare industry is losing.

Below is a video from a Spanish news program aired in December 2017 by TVE, which is the major state owned television station in Spain. It explains the Anfi appeal at the Supreme Court against a High Court ruling which they lost on the illegal taking of deposits. The Supreme Court rejected the Anfi argument that it did not take the deposits as these were paid to a third party. The Supreme Court rejected this appeal as the law clearly states that no money is to be taken within the cooling off period, even by a third party. (Law 42/98 Article 11 & Law 4/12 Article 13).

The video is in Spanish and is subtitled in English, it also has a short interview with Eva Gutierrez a lawyer from Canarian Legal Alliance.

https://www.youtube.com/watch?v=Of9a5iX3Mmg

In other news, last month the RDO (Resorts Development Organisation) announced that it was working with the Alliance of International Property Owners, to replace the discredited and defunct owners association TATOC.

This association is to be totally independent of the timeshare industry, it does represent those who own outright their properties abroad, so let us hope they will be more effective in protecting timeshare owners and helping to change the industry for the better.

Now for our Letter from America.

Another Senior Couple, Age 82, Driven into Timeshare Foreclosure

By Jang Park

June 15, 2018  

I am 82 years old, a California resident and a Korean American since 1978. I worked for a steamship company as an owner representative.

I submitted my complaint to my timeshare company March 31, 2018. I received a refusal from the company yesterday, June 13, 2018. I have asked Inside Timeshare to help me prepare an article to warn other seniors. I was a deeded owner for almost 20 years.We were happy with our timeshare.

We were willing to remain a timeshare member with this company if our last contract for 5,000 points, for which we paid $20,000, would be cancelled. We strongly feel these points were sold by deception.  Now we have to seek the help of an attorney or foreclose, but will work through Inside Timeshare to make sure we talk to the right people. We understand there are a lot of scams that offer to get you out of your timeshare but don’t. I will be filing the following complaints assisted by advocates. I have been told there is no charge to me for this assistance.

First: California Real Estate Division against the California sales agent  

Assisted by my CA Advocate

Second: Better Business Bureau – Assisted by my NV Advocate

FBI, resubmitted due to now six complaints against this sales agent

Federal Trade Commission

AARPhttp://AARP

I have learned through the advocacy group we are the sixth member to complain against this same California timeshare sales agent. I am #6.

Complaint #1  

RB, a veteran “We upgraded in California ONLY because this sales agent said our heirs would not be liable for maintenance fees if we gave up our deed. The sales agent said he used to be a financial advisor. We bought 15,000 points for no other reason. We now know that the survivor benefit already existed. We lost $13,000.

RB worked as a contract specialist for Consolidated Edison. “I know, but when you buy cars and houses all your life, you don’t expect the real estate agent sitting across from you to be a bold faced liar,” he remarked.  

The agent said he would have to look at our contract, but our heirs would likely be responsible for the timeshare. I told him I would be willing to hire an attorney to fight that. He indicated it would be futile to do so as my timeshare company has top notch attorneys and we would not be able to win the case. He then said if we upgraded by buying 15,000 more points, we could avoid those issues. He also said the contract would be an annually renewable contract that we could walk away from at some future time.  

We were led to believe we could pay all our maintenance fees by opening their credit card and charging purchases. We later learned we would receive only $50 credit for qualified purchased for every $5,000.

Compliant #2 Ages 70 and 68 (resolved)

JM, Disabled Vietnam Veteran

First points purchased June 27, 2012

10,000 additional points purchased for $12,500

15,000 additional points purchased for $13,903

Number of points per contract:  30,000

Original Loan Amount: $49,900 @ 12.2441%

We feel we were deceived by the sales staff.  We had been deeded owners since 2001.

On 1/13/2017, we were asked to purchase a trial package. This sales agent advised us that our additional 15,000 points combined with our original 15,000 points would be worth $9,000.  He stated that the value of our points could be applied to pay our maintenance fees. We learned only some members can pay maintenance fees with points at only $.04 per point. He stated that we could take any points we did not use and apply them towards our maintenance fees. He then spoke of the opportunity to earn an additional $2,700 towards our maintenance fees by using the Barclay Credit Card. We learned we would have to charge over $270,000 annually to earn $2,700 towards our maintenance fees.

The sales agent said that with the few points we owned we would be stuck with the contract as well as our heirs, but said if we upgraded, our heirs would be released. He said there would be a letter in our packet stating this. There was no letter.

We were told that the bank would contact us with an interest rate change to 6% from the contracted amount of 12.2441%. That did not happen.

In a phone call they said they had no reason to cancel our contract and that we never mentioned being told that we could sell our points to pay for maintenance fees.

The 6/26/17 written response from the company not marked confidential.

You were in fact properly advised on the fee structure of your ownership per your contract. The findings also went on to confirm through the use of Barclays and the use of Member benefits you can reduce or apply redemption gained back by your choice to your maintenance cost. They found an area of miscommunication regarding your heirs being liable. The information conveyed (but in contradiction to the sales agent) explained that no one is bound to ownership. The on-going correspondence referenced has been forwarded and we have now provided you with a summary of those correspondences in the details aforementioned. Please feel free again to let any of us or myself of course know any other questions you might have.

Complaint #3 GB

7000 points purchased August 2016

Purchase price: $22,975.20

I told this CA sales agent I wanted to sell our timeshare points online to pay for the maintenance fees and loan payment.  He said it wasn’t allowed but he would privately show me how to do this and gave me his cell number. I called numerous times and he never answered. He told us when we upgraded we would have access to multi-million dollar homes. He said we could rent those for a week @ $10.000 and he would show me how when I called his cell.

Complaint #4 AP

1500 points purchased for $6,975 at an October 2016

The presenter said we were not full members and we should have received a letter to go to full membership. We never received a letter.  He then gave us an option of a deal that would only be good right then but we would have to buy 1500 more points to become full members. He made this seem like a huge deal because upper management would not want to give us this deal but they were working with us so that we would be happy.  He informed us that what we had was worth nothing now and we would have to upgrade to be able to use any benefits.

#5 DT, over 85 years old

40,000 points purchased December 2017 for $116,400

Amount financed: $93,870

Maintenance fees $13,000

At the December meeting we were told we could pay all our maintenance fees turning in points. When we contacted the company we were told that we could only pay $2,000 of the maintenance fees turning in 50,000 points.

We were told we could give it up and walk away if we purchased more points.

I am complaint #6 against this same sales agent

I purchased 5000 points for $20,000. The California sales agent told me I could pay maintenance fees by redeeming points at $.20 per point through the 20/20 program. I confirmed this more than five times with his agreeing when I said there should be some $250 left over after paying our new maintenance fees of about $2,800 with his writing down on the working paper, which he refused to give me after the presentation when I asked.

He said if we get their sponsored Visa Card, they will put $1,000 cash to our credit card account as an Honored Member. When we said we will have two cards, each for me and wife, he said $500.00 of cash will be credited to each account. It was not so important benefit compared with above no. 1, but was found a lie.

The sales agent said we can exit from Timeshare Ownership at any time without any obligation, which his manager confirmed true.

In 2015 we gave up our deeded timeshare. We were told there is no cap on maintenance fees for people who hold a deed. This was not true. We were told there is a 5% cap on maintenance fees increases for points if we gave up our deed. This is not true. We purchased 10,000 points. The sales agent said we could sell the points if we needed to. He gave me the name of a company that could sell the timeshare if we needed to.

The agent said it is almost impossible to sell a deeded timeshare, but timeshare points can be sold easily for about $15,000. He checked with IPhone and gave the following companies to me:

  • Steve Likins – Hilton Head & timeshare sales, 843-816-1900
  • Jimmy ; 706-839-7798
  • Timeshare Resale USA.com; 407 345 9333

We tried to sell our timeshare, and attended about five times, timeshare exit companies’ presentation, but we found all of them asked some fees to get exit.

Thank you to Mr. Park and to all members hoping the public gets the Buyer Beware and do your homework message.

Self-help groups for timeshare members.

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

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

https://tug2.com/Home.aspx

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

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

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

Thank you Jang for your story, it is one we have become so familiar with over the past year or so, ever since we highlighted our first seniors article, we have been receiving a constant stream of similar complaints.

As we have said before, the industry is destroying itself by allowing their employees to lie and cheat, then take no responsibility for those actions. We keep hearing from all quarters, “ We are not responsible for what our sales agent say”. That is the weakest get out imaginable, they are your employees, they are selling your product, they represent your company. It is about time you as an industry took responsibility and changed for the better.

Timeshare could be a good product, the complaints are around the sales not the resorts, accommodation or the resort staff, in this area it looks like the vast majority are happy owners / members.

We are not against business, but we are against business purely for greed, which is what the timeshare industry has turned into.

If you have any comments or questions about any subject in this article or any others published, then use the contact page and get in touch. If you are from the US you will be passed to our team coordinated by Irene. For those in Europe then you will be contacted directly from Inside Timeshare.

As usual we warn you to be vigilant when dealing with any company that contacts you or one that you have found on the internet, do your homework, check, check and check again. If you are unsure how to check, or you are not sure if what you are seeing is true, then contact Inside Timeshare, we are here to help and guide.

That’s it for this week, Friday is here, happy hour is calling, so have a good weekend and join us for more news from the world of timeshare next week.