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letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, this week Eron Grant submits her open letter to ARDA (American Resorts Development Association), for those in Europe that is the RDO. She explains her experience at the hands of a sales agent and asks why does ARDA have a code of ethics if these agents and resorts ignore it? Very good point, the same can be said of the RDO.

First a roundup of this week. For August it has been quite a full week for Inside Timeshare considering that the courts are closed so no news on that front. We began with the ongoing story of the fake law firms in operating out of Tenerife, yes, that family called Litigious Abogados, bit of a sorry story this one.

Unfortunately, the gentleman in question didn’t find our previous story in time, he was totally taken in by the documents and smooth legal talking of this crowd. It began with the usual pitch, that his timeshare company had a case against them ready to go to court and he could be part of it. He duly paid the initial Procurador fees, then a few weeks later he got the great news that he won the case and the court had awarded him thousands in compensation, brilliant!

Now it was only a matter of paying 20% of the award to the tax man to release the money, this done he was told his cheque was on the way. The envelope arrived with the court papers, but no cheque, the envelope had been opened and the cheque missing. After contacting the “Law Firm”, another company contacted him saying the court had appointed them to investigate and get his money back, apparently this Romanian gang had stolen the cheque and cashed it. Don’t worry, we will get the money back from the bank. First you have to pay us 10% of the amount.

Compensation_Cheque-page-001

Then in what can only be described as a further insult to injury, he was told he owed the property tax on a property he owned in Spain, his NIE Number had expired plus he had outstanding fines for a traffic offence. But we can sort this out for you and get the money released, for a fee.

This has lost him thousands of pounds and has caused him great stress. So beware, it may sound good and look genuine, but it rarely is.

On Tuesday, we published the ongoing story of Tauro Beach, the flagship project from Anfi, this time it was a couple of independent research journalists, Anders Lundqvist and Rowan Bauer. In their article, published in the UK paper The Guardian, they investigated the importation of the sand for this man made beach, brought in from the Western Sahara in breach of UN sanctions and European Court of Justice rulings.

This investigation is still underway by various authorities, the main one being SEPRONA, the Nature Protection Service of the Guardia Civil.

Wednesdays article was from Irene Parker on the Welk Resorts case against Timeshare Exit Team. It highlights the dire need for a proper secondary market and a fair exit strategy for those who do not wish to sell.

In this article we opened with news that the TATOC Help Line had closed, we also published a link to a very good in depth report on the importation of sand from Western Sahara and a little of the history from that region. This was written by Ed Timon Editor of The Canary News, an english language newspaper in Gran Canaria.

Yesterdays article was entitled, Loyalty: No Such Thing in Timeshare, in this piece we showed that even old friends will attack each other for your money in this business. It told the story of a company owned by an ex manager of another company, who is now in the business of supposedly claiming compensation against his old employers. Unfortunately, his history and publicity is not as squeaky clean as he would like you to believe, we leave that to your judgement.

So on with this week’s letter.

Why does ARDA have a Code of Ethics?

Woman what

Members are beginning to wonder

ARDA’s Answer from ARDA’s website

ARDA and its members are committed to the highest standards and ethical behavior in vacation ownership. To demonstrate that commitment, all ARDA members as a condition of membership must agree to comply with the ARDA Code of Ethics.

The intent is that all member activities subject to the Code are designed to be honest and fair, and are conducted with integrity, dignity and propriety.

By Eron Grant

August 4, 2017

Part I – My letter to ARDA

Part II – ARDA’s Code of Ethics

Part III – List of Inside Timeshare member articles that question the Code

Mr. Clements, General Counsel and Lobbyist for ARDA,

My husband and I feel we have been deceived by Diamond Resorts International, and ask for your assistance in getting justice for our victimization.

In November of 2016 we stayed in one of DRI’s timeshare resorts in Sedona, AZ through our Interval International membership. While there we attended a DRI sales presentation. The hotel concierge gave our family of 4 a $150 gift card to a local restaurant for our thanksgiving meal, and in return we were to attend a 90-minute sales presentation. The presentation ended up lasting 6 hours, with our sales agent becoming agitated when we said we needed to leave due to my husband’s golf tee time. This violates ARDA’s Code of Ethics of “Information”.

The sales agent, Karen Calvano, empathized with us about our inability to stay in resorts unless located close to home which is in Houston, TX. She said she knew Interval International did not have many resorts in our area, but that DRI had many resorts, and we would certainly be able to find resorts in Texas, New Mexico, and Louisiana. As it turned out, DRI’s resorts in our area are owned by affiliate resorts rather than DRI and costs approximately more points than we were sold. This violates ARDA’s “Exchange Program” in which we were over promised on the likelihood to exchange for Diamond’s inventory in our area.

When I looked on the Diamond member website recently, Diamond’s Great Wolf Lodge affiliate property in Texas was available for 26,911 to 66,467 points. If we multiply 26,911 by 20 cents which is the typical cost of maintenance fees, it would cost $5,382 for a one week stay. Booking.com had the same Family Suite available for the same week for $1,700. This is not an unusual scenario. I have searched various times throughout the year.

We attended DRI’s “Event of a Lifetime” in January, 2017 which we were told was our member orientation. The “orientation” turned into a high pressure sales presentation quickly with misleading information regarding redeeming our points for 30 cents per point if we paid to upgrade our membership to platinum. When my husband, Dr. Mark Grant, asked to see the price per point in writing, the sales agent pointed to his own written notes to show us that it was legitimate. My husband pointed out the documented literature which showed the amount at 10 cents per point, and the salesman quickly dismissed us to the next sales agent.

According to the ARDA Code of Ethics, this sales agent violated the ethics standard of “Avoidance of False and Deceptive Statements”.

Mr. Clements, as you can tell from the brief account I have written, we are in a rough situation with devious minded people who have not followed ARDA’s Code of Ethics, and should therefore be forced to let us out of our contractual agreement.

We appreciate your consideration, and assistance!

Sincerely,

Eron Grant

Response from Diamond

I am responding to your concerns regarding availability in Texas and Louisiana. While Diamond Resorts does not own or manage any properties in these states, we do have affiliate agreements with several resorts. These properties offer us limited inventory each year to offer to our members to book with their points. Inventory is typically limited, and prices are set by the properties themselves, and not by Diamond Resorts. These properties are offered on a first come, first served basis in addition to the Diamond Resorts properties covered under your contract.

Diamond Resorts does offer a property in New Mexico, the Villas de Santa Fe. If you would like assistance booking at this property, please let me know and I will be happy to assist.

My Response

My concerns with Karen Calvano stating “DRI has several resorts in TX, LA, and NM” is that when we asked her to show us the properties she said, “Oh we can’t do that right now, but we can do that later.” After 6 hours of being with her, we were exhausted and never did see the properties.

We explained that we are owners with Marriott and members of Interval International already, so affiliate properties through DRI really don’t help us. Plus, the value of your affiliate properties is ridiculous. How does this help us?

questman1

I would like for Mr. Clements or someone at Diamond to explain to me why this does not meet the definition of White Collar Crime: Deceit, concealment, violation of trust and bait and switch. In my opinion, there is no doubt what we were offered and what we received meets this definition and violates ARDA’s Code of Ethics.  

Ethics Code of the American Resort Development Association

adopted by the Board of Directors April 7, 2014

  1. General Ethics Standards.  
  1. Disclosure.

With respect to the sale, resale or marketing of a Vacation Interest, the Member shall:

  1. Provide fair, meaningful and effective disclosure to the consumer regarding the Vacation Interest and all material terms and conditions of the offer of a Vacation Interest.
  2. Provide fair, meaningful and effective disclosure to the consumer of all material terms and conditions of all other products offered contemporaneously with the Vacation Interest, including exchange programs, incidental benefits, financing, short-term products and exit programs.

The Full Code: http://www.arda.org/ethics/

audience

Note from Irene Parker

Inside Timeshare has received complaints from many angry timeshare members, including Bluegreen members. Here are just a few of the many members who have contacted Inside Timeshare wanting their voices heard.

This is our DRI Advocacy Facebook page which respectable sales agents and corporate personnel are allowed to join. We hope the folks at Diamond, Bluegreen and ARDA will take the time to read member stories. We promise you will learn a lot.

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

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

Member articles

Michael Nuwer and Justin Morgan

http://insidetimeshare.com/fridays-letter-australia-no-read-correctly/

Alan and Debbie Callner

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

Detective Lela Renea a Bluegreen member

http://insidetimeshare.com/fridays-letter-america-11/

David Franks Chapter 2 (Chapter 4 upcoming)

http://insidetimeshare.com/fridays-letter-america-10/

Karen Garello Secret Shopper June 22, 2017

http://insidetimeshare.com/works-industries-not-timeshare/

Romeo and Lily

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

Dr. Jeffries

http://insidetimeshare.com/fridays-letter-america-7/

Angela Johnson

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

Neina Orrillo

http://insidetimeshare.com/diamond-in-the-news-again/

Barclaycard and Member stories May 17 2917

http://insidetimeshare.com/timeshare-barlcaycard-us/

Marjorie Menacker

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

Eron Grant May 12, 2017

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

Nancy Callahan April 24, 2017

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

Betty Burmeister and a Filipino Family April 13, 2017

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

Laurie Sabbagh Secret Shopper March 17, 2017 Clarity Review

http://insidetimeshare.com/friday-review-news-across-ocean/

A Military Family March 6, 2017

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

The Hurleys January 25, 2017

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

Irina Allen January 13, 2017

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

Kathie Old December 6, 2016

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

Wyndham Trish Williams $20 Million Whistleblower Jury Award December 5, 2017

http://insidetimeshare.com/wyndham-whistleblower-update/

The Peasant of Venice and the Queen of Versailles November 7, 2017

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

Sylvia Saldana and the Barclaycard October 25, 2016

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

right wrong

Thank you Eron Grant and Irene for this weeks contribution, these are your stories, they are published so you know what is going on in this murky world called timeshare. If you have a story you would like to share or have any comments Inside Timeshare would love to hear from you.

If you have any questions or even need to know if you are dealing with a possible “scam” company, get in touch with us. Even if we don’t know the answer straight away we know where to look and can point you in the right direction. Remember it is better to be safe than sorry, doing your homework is essential, even more so in today’s timeshare world.

So it only leaves us to say, it’s Friday, have great weekend.

fridaycat

half way

Mid Week Report

Following on from the news that TATOC is no more, the latest news is that TATOC Consumer Helpline Ltd has also been wound up, when more comes in we’ll publish it here. If you have tried to access the TATOC website, you will have noticed that it no longer comes up, confirmation that TATOC and Harry Taylor are truly gone, although we wonder if any of his old allies (MacDonald Resorts) will be offering him a job?

job wanted
Contact Harry or is it Henry Taylor?

On the story published yesterday regarding the sand on Tauro Beach, The Canary News has also published a full in depth report. It not only looks at the controversy surrounding the importation of sand from the Western Sahara, it also has a very good introduction to the history of this region.

http://thecanarynews.com/the-shifting-sands-of-tauro-beach-investigation-for-alleged-breach-of-un-international-law/

the-canary-news-views-sunshine-logo-2016-250

Now it is August, the courts have closed down for the month, so there will be no news emanating from there. Good news for the timeshare companies! But it is guaranteed that come September there will be a flurry of sentences being announced.

It is also a time for the new “scams” to start getting ready for the Autumn and Winter season, the new company names and websites will soon be surfacing along with some of the old names that will be resurrected. So be warned, do your homework first, check and recheck, these scams are getting very sophisticated, you only have to see the articles on Litigious Abogados and their family of firms. If in doubt or not sure how to check, then contact Inside Timeshare.

So now on with our Wednesday article from Irene Parker.

Welk Resorts sues Timeshare Exit Team for Racketeering

Right To Use timeshare programs need a secondary market

hear no evil

By Irene Parker

August 2, 2017

Welk Resort of Lawrence Welk fame has sued Timeshare Exit Team for racketeering. Once again, the lack of a secondary market forces beleaguered timeshare members into the nets of alleged unscrupulous transfer agents when a resort provides no exit for members sold a timeshare contract in perpetuity.

First, a hat’s off to Lawrence Welk, a big band great that kept early American households riveted to their seats for over 20 years. To this day the Welk resort is a family friendly resort that knows how to run a business. My husband and I stayed at a Welk Resort in California. It was one of our most memorable timeshare vacation experiences.

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

Inside Timeshare has received a volume of reader responses alarmed that there often is no way out of a timeshare contract. ARDA and the industry have lauded timeshares evolution towards a right to use product and have stated members should not expect value back when they seek release from a right to use timeshare.

The problem with ARDA’s “see no evil, hear no evil” position is – about 90% of the complaints Inside Timeshare has received, have loans attached and many allege they were duped into signing off on high interest rate loans and credit cards. Voluntary surrender or “take-back” programs require the member be free of loan encumbrances. In addition, voluntary surrenders are never guaranteed.

Mr. Howard Nusbaum, President and CEO of the American Resort Development Association (ARDA), was quoted in a June 2014 RedWeek article in reference to the lack of a viable timeshare resale market, “This is a legacy problem. People buying a timeshare today are buying it from multisite clubs that have management forever and sales teams forever, so the ability to recycle inventory will not be a problem in the future.”

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

Timeshare Exit Team Response to the Welk Resort lawsuit

Response from Brandon Reed, founder and CEO of Timeshare Exit Team:

Timeshare Exit Team learned of this matter through a media release distributed by Welk Resorts on July 26, 2017. Following the news being publicly distributed, we were formally served on July 27th, 2017, and intend to present a vigorous defense to these claims. We would also like to inform consumers that the meritless lawsuit and inaccurate accusations therein will not dissuade our team from continuing to advocate for consumers.

I’m proud of the service we offer and of the company we have built. Timeshare Exit Team has built an unparalleled in-house team, leveraging effective outside resources as needed, to assess each customer’s unique situation and to provide them with qualified, thorough, and trusted management of their issues.

The Welk Resort lawsuit v Timeshare Exit Team reported by Business Wire    

“SAN DIEGO–(BUSINESS WIRE)–Welk Resorts, developer of family-friendly vacation resorts, has filed suit in U.S. District Court for the Southern District of California against Reid Hein & Associates, operating as “Timeshare Exit Team,” and law firms in two states for allegedly operating a nationwide racketeering scheme to induce vacation owners to disrupt Welk’s contractual relationships with its vacation owners, causing breach of contracts, delinquencies and defaults that damaged Welk, the vacation owner association and vacation owners.”

“The suit cites fraudulent racketeering activity, intentional interference with contractual relations, and violations of the California unfair competition law, California Vacation Ownership and Time-Share Act, California False Advertising Law and the state “Running and Capping” Law. The latter makes it illegal for non-attorney agents to obtain business for an attorney or law firm for compensation, or solicit others to engage in running and capping.”

Timeshare Exit Team charged fees of $5,000 and more for this “service.”

http://www.businesswire.com/news/home/20170726006103/en/Welk-Resorts-Files-Suit-Timeshare-Exit-Team

Timeshare Exit Team fulfills an HOA Collections Agent’s Prediction – Previously Reported by Inside Timeshare

Kristi, a Home Owners Association timeshare collection agent I interviewed back in March of 2017, complained of lawyers transferring timeshare contracts to fictitious persons or LLCs. Some things are universal. Charles Thomas has been reporting on a recurring “Litigious Abogados” theme. Inside Timeshare is published in Spain.

As reported by Inside Timeshare in our interview with Kristi:

Irene: Are you familiar with Timeshare Exit Team? One of their agents contacted me and asked me to review their program. What is your opinion of this firm?

Kristi: I would never endorse or advise anyone to use their services ever!! They specialize and advertise “Cancellation of Timeshare Contracts” but we don’t have contracts. We have deeds. We have chosen not to do business with Timeshare Exit Team because of their inability to follow our procedures and because of the quality of work previously sent to us.

Timeshare Exit Team has been involved with two other timeshare resale companies and/or timeshare attorneys that were involved with transferring 18 of our deeds since 2014 to four individuals that have never paid the dues and are delinquent in the amount of over $18,000. Out of the four individuals we were able to track, we learned that they are all associated with each other thru business dealings, contract employees or registered agents. They must assume that the association will eventually foreclose or take the property back but it is very costly to foreclose and we do not accept property back.

http://insidetimeshare.com/timeshare-hoa-collections-agent-shares-experience/

Here are ARDAROC’s (Resort Owners Coalition) eight tips for selling your timeshare and how they apply or do not apply to Diamond Resort members. This is what I have learned since trying to sell my Diamond right to use points.

  • Know what you own – Most own non-deeded right-to-use points
  • Consult your resort – Diamond’s Advocacy Department has helped some members but others have had to seek legal assistance when denied relinquishment. Tracking our reader outcomes thus far – 29 out of 77 report positive outcomes.
  • Sell it yourself – member supported Facebook pages seem to be the best option, but complaints abound that “no one wants it.”
  • Get assistance from a Licensed Reseller – not one member of the 64 member Licensed Timeshare Resale Broker Association will accept a listing for Diamond’s non-deeded points due to secondary market restrictions.  
  • Pass it on or gift it to your family – maintenance fees are also passed on
  • Donate it to a Charity – Donate for a Cause is a scam according to Consumer Affairs. A charity has the same problem. They don’t want the rising maintenance fee liability. https://www.consumeraffairs.com/news/timeshare-donation-scheme-is-a-scam-feds-charge-120115.html
  • Generate income by renting. Diamond Resorts does not allow renting through a third party website. “Use by a Member of public advertising or an online website to seek renters shall be deemed a prohibited commercial use.”
  • Beware of scams.

http://www.ardaroc.org/timeshare-resales-resource-center.aspx

Lela Renea, a Bluegreen timeshare member, contacted Inside Timeshare about her battle with Timeshare Exit Team after they appear to have stonewalled her. Since Lela is in the middle of negotiations, she did not want to elaborate on the distress she feels, attempting to resolve her Timeshare Exit Team concerns – suffice to say she had reason to reach out to Inside Timeshare. We will be reporting as to whether Bluegreen will come to her rescue or allow her to fall to the mercy of Timeshare Exit Team.

Despite the customer loyalty and lack of complaints we reported last week among Disney deeded timeshare owners, with access to resale and rental options, right to use non-deeded timeshare programs continue to ignore the growing problems caused by perpetual contracts not able to be sold, rented or relinquished.

Welk Resorts back in the day was a fixed week timeshare but has converted to a right to use non deeded program. A life change like a job loss or illness, rendering the timeshare unaffordable, is as much a problem for members of right to use programs as it is for legacy resorts.

light thought

 We hope someday, someone in the industry or ARDA will see that throwing up roadblocks to a secondary market is a detriment for all. As we reported last week, timeshare attorney Mike Finn has never had a Disney client and it is unlikely Timeshare Exit Team has ever had a Disney client either.

Some answers are so logical and simple, they cannot possibly be understood.

Once again thank you to Irene, who explains the timeshare world across the great lake, as you will have noticed there is very little difference to the problems that owners / members face.

In this Friday’s Letter from America, we have another contribution from Eron Grant. In her Letter to ARDA she asks Why does ARDA have a Code of Ethics? This very question was also asked of the RDO, Europe’s equivalent of ARDA. We still don’t have a genuine answer to that little conundrum!

So there we have it, half way through the week and a couple of hard hitting stories, we’ll be keeping an eye on the Tauro Beach story and will bring you the latest as it surfaces. Remember, beware the scam artists, do your homework, check and check again, it will save you a lot of money and stress in the long run.

 

sits vac 1

CUSTOMER SERVICE AGENT
Experience in Bull Shit Essential
letter from canada

Friday’s Letter From Canada

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

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

bogus clipart

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

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

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

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

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

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

Tenerife

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

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

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

homework

Tauro Beach

The Anfi man made beach project.

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

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

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

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

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

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

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

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

Now on with our latest contributors.

Club Intrawest v. Canada

Club Intrawest (Embarc)Timeshare

Must Pay Millions in GST Back Taxes

Following Recent Federal Court of Appeal Decision

gavel

July 21, 2017

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

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

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

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

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

www.citheownersgroup.org.

Judgment of Federal Court of Appeal:  see link

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

canadian flag

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

Other member sponsored Diamond Advocacy groups include:

DRIP launched by over 1,000 British Diamond members

http://drip.enjin.com/

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

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

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

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

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

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

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

weekend cat

letter from australia

Friday’s Letter from Australia (No, you have read that correctly)

Welcome to Friday’s Letter from (America) now Australia, this is just to confuse our American cousins, the reason is that we welcome our first Antipodean cousin to our pages. Justin Morgan, makes his debut with his first contribution to Inside Timeshare. It is ironic that it happens to be on the first anniversary of Irene Parker’s very first article, which was about the acquisition by Apollo of Diamond.

Since her first article, Irene has been a major contributor and very much a driving force in bringing the problems of owners in the US to the fore. She has also become a very valued friend not just to myself but to all those she met while visiting Gran Canaria.

But enough of that, how about some news of timeshare in Europe?

Diamond Resorts has had a battering in the courts in Tenerife, Canarian Legal Alliance has secured a victory for one of their clients with the High Court declaring their contract null & void, with the return of over 29,000€ plus legal interest. In this case the court stated that the contract did not contain specified information required by law, with the product being the points system which the Supreme Court has deemed illegal due to their lack of tangibility.

This is the fourth verdict delivered against Diamond by the Tenerife courts this year, which our sources indicate is just the tip of the iceberg!

justice2

Anfi, based in Gran Canaria is on the defensive, it would seem they are already sending out new contracts after the vote last Friday 23 June, which coincided with another defeat at the High Court in Las Palmas. In that case the court declared the contract null & void as it was for more than 50 years.

As this is being written, the news has just arrived from our contact at the Court of First Instance in Maspalomas, that another contract has been declared null & void, with the client being awarded over 35,000€ plus legal interest.

At the same court yesterday Palm Oasis / Tasolan, were ordered to repay over 31,000€ and declaring the contract null & void. In this case the court ruled against the points system, which it deemed as selling nothing but promises.

On the Tauro Beach project, which has been the subject of many articles, it seems that the beach is still closed to the public, although many people are ignoring the fences and entering the area. There still seems to be no indication when this area will be fully open to the public, it may not be for sometime yet as there are several court cases pending.

So now on to this weeks article.

Who is Apollo? What is Apollo?

Two Diamond Member Consumer Advocates offer their opinion

Up Down

By Michael Nuwer and Justin Morgan

Introduction by Irene Parker

June 30, 2017

In honor of my one year anniversary writing for Inside Timeshare, it is only fitting to revisit Apollo Global Management’s acquisition of Diamond Resorts as Apollo’s Diamond acquisition was the subject of my inaugural article June 30, 2016.

http://insidetimeshare.com/700-2/

I had been shouting my timeshare concerns from the rooftops since my husband I attended a pathetically aggressive sales presentation July 2015 at Diamond’s Grand Beach Resort, which ultimately led to our appearance on the FOX News show Property Man, interviewed by Las Vegas attorney Bob Massi.

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

The first I heard from Diamond was a year later in reaction to my Apollo article written for Jim Cramer of CNBC’s Mad Money’s investment news service, TheStreet. Diamond contacted TheStreet demanding a rebuttal. Diamond members are still waiting for Transitions, a relinquishment program that must still be in development.

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

Diamond boasted 11 quarters of robust earnings growth until shortly after the Apollo acquisition announcement. A delayed 2016 second quarter earnings report was attributed to accounting irregularities.

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

According to a May 2017 KROLL Bond Report, Diamond’s default rates remain elevated.

The collateral pool of DROT 2014 – 1 has experienced elevated levels of defaults, which similar to certain other vacation ownership companies in the industry, Diamond Resorts attributes to an increase in the number of borrowers who have been solicited by lawyers to get out of their timeshare and/or have sent Diamond Resorts “cease and desist” letters.  

https://www.krollbondratings.com/announcements/3705

A National Mortgage News article appeared indicating the interest rate on the Apollo acquisition was raised due in part to the earnings restatement. Earnings had to be restated back to 2014 resulting in an earnings decline from the prior earnings report. Since the merger was announced as an all cash $2.2 billion deal, I did not understand the comment about the raised interest rate.

advocate 1

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

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

Timeshare Advocate Michael Nuwer explains. I now understand what it meant when Diamond owners were informed Diamond is owned “by an affiliate of an affiliate of funds.” It’s pretty high finance.

Apollo Global’s acquisition of Diamond Resorts was organized as a “leveraged buyout”.  Here’s how the deal worked:

Apollo created a shell company called Dakota Parent. Four of Apollo’s investment funds own this company. Dakota Parent created a wholly owned subsidiary called Dakota Sub. Dakota Sub borrowed $2.2 billion dollars (a big chunk of it, $1.1 billion, from the four Apollo funds) and bought 100% of the DRI shares — 72.7 million shares at $30.25 each. Then DRI merged into Dakota Sub, changed the company name to Diamond Resorts International, and thereby took on all Dakota Sub’s debt. This is the way leveraged buyouts typically work. Former Diamond CEO Cloobeck used the same structure when he bought Sunterra in 2007.

Now that all is said and done, DRI is a wholly owned subsidiary of Dakota Parent. The equity in Dakota Parent is owned by the four Apollo funds. Diamond has $2.2 billion debt on which it must make interest payments. The primary lenders are the four Apollo funds. They are in for $1.1 billion, $500,000,000 at 7.75% and $600,000,000 at 10.75%. The secondary lenders are in for $800 million, and another $200 million is secured by some DRI assets (I think they are consumer loans).

There are two ways Apollo makes money on this deal assuming all goes well. First, the four Apollo investment funds receive interest income out of DRI’s cash flow. They are guaranteed $103,250,000 per year. High profits or low profits, it doesn’t matter, Apollo gets paid. Further, the Apollo investment funds own a claim to all the equity growth of the company (that is all value over $2.2 billion). Thus, if they can sell the 72.7 million shares for $45 each, not an unreasonable number if all goes well, Apollo’s capital gain will be about $1 billion.

Aussie Flag

From Justin Morgan Australia

As a tax accountant, finance planner, part time private equity guy, I completely agree that the Apollo deal will only end in debt being laid upon Diamond members, for the benefit of those who arranged the details of a LBO merger that, when combined with the liabilities of the timeshare structure that utilized Association Board powers and targets them, it becomes a lethal mix that allows financial dealers to write their own checks bigger each year. It seems there is no end to how high they could simply raise their own salaries, pay-outs and ‘returns’ towards simply legally expecting members to pay their share of these increased contributions.

In the economy, we have certain protections such as Trade Practices Acts, Fair Trading Laws, financial regulation, monopoly laws…All this is designed to prevent abuse of market power. In my opinion, I would characterize this Diamond set-up as worse, because there is NO market that is anything other than what DRI, and the timeshare industry in general, allows. It is engaging in practices specifically designed to restrict the market to only it and its approved associates.

I feel this exploits consumers at near will, and I wonder where Apollo will set their ceiling …Looking at how the deal was structured, they see huge opportunity to lend to a membership base locked up in dubious legalities and unfair contracts. All this would not be legal in Australia. I’m amazed at how it turns out to be in the US. And I write this from Mexico, where it is well known what happens when dangerous cartels form and throw their money around here.

Circumstantial evidence is that the proof is in the pudding, but proving it in the US, where the banks and private equity already got away with much…well, I can only hope that the powers that be realize that it won’t get better if they keep allowing the average consumer and householder to be abused by what is, in my opinion, predatory sales and lending.

If the new DRI were to strip assets, it’d be left holding the large liabilities, but that is usually the reason why they then go back to legacy members warning of bankruptcy if they do not buy more points. It looks like the new DRI is just financially ‘creating’ this balance sheet to look exactly how it should look to siphon off more money from members. They already have their interest windfall. Next would be the stripping, and finally, the call for more contributions to boost management revenue…all this whilst the members are forced into more debt.

This is a strategic type play from the banking world, but DRI and private equity were some of the quickest learners out of the Great Financial Crisis. Many learnt how the banks do it. Private equity rushing into timeshare is the new rush to create financial instruments that creates only ‘liability’ for the timeshare owner. The financial guys profit from the creation of liability, which is their ‘debt-holding’. In a near zero interest rate environment, Apollo is looking to create the debt, then shift it across to the membership…effectively, they’ve already done it. Now they must get their $1.1bn back, and the result is just pure profit for the financial players. This could turn out to be a textbook case of why this must be stopped immediately. It will possibly play out over years.  Bravo Irene for taking a stand. I will support your efforts however I can. You’ve struck here what I believe is the actual core of the New Timeshare. The Old Timeshare was less sophisticated, but for those of us who know that private equity in this industry is licking its lips over several recent acquisitions, the old caveat of “buyers beware” may even be too late.

Teacher

Thank you to Michael and Justin for their reader responses which are possibly the most sophisticated reader responses in the history of Inside Timeshare. More and more timeshare Advocates are coming forward bringing their expertise and experience to the timeshare table.

Contact Inside Timeshare or one of our Timeshare Advocacy Group™ Facebooks or websites if you need timeshare assistance or can become an Advocate.   

So there we have it, another week over in the murky world of timeshare, Inside Timeshare thanks Irene for her efforts in bringing so many people together to share their views and experiences.

To our latest addition to the Inside Timeshare family, a very hearty welcome and we hope to hear more from those in the “Land Down Under”, who we do tend to forget share the same experiences as us in Europe and the US.

It’s Friday, the weekend is here, so break out the BBQ’s and let’s PARTY!!!!!!!!

barbie

truth next exit

Anfi CEO’s Letter to Members: Desperation or What!

In a letter to members of Anfi, the CEO Jose Luis Trujillo, looks like he is getting desperate. In this letter he states several “facts” which if you have been following the story of the legal battles involving this company, will find rather hard to believe.

He rambles on about the sales activities of some law firms, none have been named, that they are being aggressive, as if the Anfi sales techniques are not aggressive. That members want Anfi to help them get out of court cases instigated by these law firms.

Well, hang on here, if those people didn’t want to sign up for legal action, why did they, surely they were not subject to the same techniques used on timeshare presentations?

Also, unlike a timeshare, clients are employing the services of the lawyers, and as such can withdraw at any time.

 

He states in one paragraph, “We are sorry that these law firms have been harassing you”, as if in timeshare, clients are never harassed to continually upgrade.

He goes on to state that in addition to “aggressive” sales methods, prospective clients are not being told the truth. Wow, that is the pot calling the kettle black! Anfi not losing cases, so where has all this news come from that they have lost?

As for not trying to fool anyone, what about all the promises made when on the sales presentation, promises which never materialised, promises which clients subsequently found out where false? A typical one heard so often from many readers is the “promise that Anfi would buy back your week at the price you paid, when you no longer need it”! No what they then do is place it on the resale market for a pittance.

tribunal supremo

As for the Supreme Court stating “Anfi acted in good faith when selling perpetuity contracts”, somehow this does not seem possible as this court has continually enforced Article 3. On Duration which clearly states that the contract should be no longer than 50 years. So why would the court declare “acting in good faith” when law 42/98, which they are upholding says different?

This once again reiterates Anfi’s belief that those learned Judges at the Supreme Court misinterpreted that very law! It is quite clear 50 years is the maximum duration, so how could that be misinterpreted?

If this was the case, why is Anfi holding a Special General Meeting on 23 June with a ballot to change contracts to comply? Does this statement by the CEO mean the opposite?

As for the legal fees going up, according to our sources this is a fabrication. From what we have been told by lawyers and clients, the fees paid at the start have never gone up, no matter how long the case lasts. In fact, one only need to ask Mrs Tove Grimsbo, whose case took many years and was the first Supreme Court ruling.

Another point is that clients only have to attend court if Anfi demand it, that said it is their right to do so. But what is the reason behind that? Simple, to prolong the case, to cause disruption and stress to the claimant, all in the hope they will withdraw.

Another “scare tactic” is Anfi state once again that the Supreme Court has accepted the principle that any client whose contract is declared null & void should compensate Anfi for the holidays they have taken over the years of membership. We at Inside Timeshare have never heard of this from the Supreme Court, so show us the written proof from the Supreme Court.

The whole letter is a deception from a CEO whose company is losing millions of Euros for past transgressions of the law. An attempt to divert attention from the known facts that they are losing, the fact that since the very first Supreme Court Ruling in March 2015, they have had a massive 34 made against them! As far as we are aware not one Supreme Court ruling has gone in their favour.

At the end of the day it is your choice, take legal action or not, keep your timeshare or not, it is more of a choice than when you were first coerced into purchasing!

Just read the many article about Anfi published here, they give you the full story from over the years, right up to the debacle that is Tauro Beach!

Inside Timeshare leaves it to you the reader to decide who is actually telling the truth.

Gandhi truth

Right click the following images and open in new tab for enlarged copy.

a  anfi2

latest-news-1

Latest News on Tauro Beach

The debacle that is the Tauro Beach project has taken another turn over the weekend, the high winds, tides and waves have once again taken their toll.

The Anfi project to create an artificial man made beach, has over the past months seen the head of the Coastal Authority sacked and charged with wrongdoing in public office and forgery of official documents. The Mayor of Mogan being investigated for similar offences, along with the Canarian Government instituting legal proceedings to strip Anfi of the franchise to run the beach for the next 50 years.

Back in August 2016, the local residents had their homes flooded, as the high tide flowed over the beach, where once the natural defenses of the pebble beach would have stopped it. We also saw the local people filling sandbags to create a defense against it happening again, alas to no avail.

So what is the problem?

Quite simple, the project was not planned correctly, no account was taken for the fact the natural defence of the high pebble beach stopped the sea encroaching the land, that a lower flat beach would end in flooding. There was no building of a breakwater, like the one seen at Amadores beach, this protects the artificial beach from high waves, especially during the winter storms.

Only a few weeks ago the sea washed away a sizable chunk of the beach, then this past weekend we saw even more washed away, the cost, over 6 million euros, what a waste. Who paid for it? Anfi, with the money you owners paid for your timeshares.

Tauro beach gone
The beach after the weekend weather.
original beach
The original beach

Is it any wonder that the Guardia Civil are conducting a huge investigation into this project, with rumours of corruption abounding, prosecutions pending and untold damage to the environment and protected area, only 300 meters off shore.

Just seeing the damage, it is clear that no real thought had gone into the project. Even local people had warned that the beach would be washed away at the first high tides during a storm. Did anyone take any notice of their concerns? The answer is sadly no. But it is they who will suffer when the really big tides and fierce storms arrive.

Posted by an unkown English woman on The Canary New Facebook page.

This story is not over yet, but Inside Timeshare will bring you the latest as and when it happens.

Follow the links for some of main stories in past articles.

http://insidetimeshare.com/anfi-tauro-beach-project-people-flooded/

http://insidetimeshare.com/tauro-beach-project-latest-news/

http://insidetimeshare.com/nightmare-for-anfi/

http://insidetimeshare.com/first-prosecution-tauro-beach-project-filed/

http://insidetimeshare.com/mayor-mogan-investigation-anfi-tauro-beach-project/

http://insidetimeshare.com/tauro-beach-project-canarian-government-revoke-anfi-concession/

Since publishing La Provincia posted this on their website:

http://www.laprovincia.es/gran-canaria/2017/02/14/fuerte-oleaje-pone-nuevo-jaque/908733.html

 

 

 

tug o war

The Battle Lines have been Drawn.

There appears to be a massive falling out in the timeshare industry, TATOC, the self proclaimed voice of the owners is under fire. Harry Taylor looks to being discredited, not just over the Lakeview debacle but also for his unbridled support of the move by MacDonald Resorts to force fixed week owners to change to the points system.

This being said, MacDonald Resorts have not been members of the RDO since the end of 2005, yet TATOC still supports them. One has to ask why are MacDonald’s no longer members of the industry trade body?

Silverpoint has (reported by TESS 2 February) reduced their membership from Platinum to Silver, so are the industry backers realising this organisation is failing?

Among owners themselves, TATOC has been losing credibility, many comments from readers who have approached them for advice have not been impressed. The number of comments on the different discussion forums also confirms this. Is it not time that a new and more credible independent voice be created, the only way change in the industry is possible is through dialogue with those that keep them in business.

round-table

The industry is in turmoil, the Arizona Attorney General has secured an $800,000 settlement from Diamond Resorts International, with a $1billion suit being filed in Nevada, Wyndham have lost a lawsuit for $20million, brought by an ex-employee.

In Colorado, the Attorney General has sued Highland Resorts for deceptive trade practices and the New York Attorney General has halted sales at the Manhattan Club, with a class action lawsuit underway. Hyatt is also in legal dispute with former sales agents, this has been going on for several years.

It is not only in the US that we are seeing problems, in the past week we have seen SIX, yes SIX Supreme Court rulings against Silverpoint / Resort Properties. In these rulings the product “Club Paradiso” has been declared as falling under the Spanish Timeshare Laws, with purchasers being considered as “consumers” and not “investors”. These judgements have again made legal history.

The length of the contracts have also been confirmed in these rulings as illegal, being for a period of more than 50 years. The courts have also returned double the amount paid on the deposits, these were taken within the stipulated 14 day cooling off period or reflection period, in some cases this has been extended to 90 days where the relevant information has not been supplied. Under this ruling if the balance was paid in this period then the total amount has been awarded double.

Silverpoint seem to have taken over the news from another beleaguered company, Anfi in Gran Canaria. We have seen around 29 Supreme Court ruling made against them since the first in March 2015, which also made legal history.

legal history

It is not only for the sales of the timeshare product that Anfi are suffering, there is also the ongoing problem with the Tauro Beach project that Inside Timeshare has been highlighting. There is at present a case in the court to remove the concession and permissions for Anfi to run the beach for the next 50 years, this is being brought by the Government of Gran Canaria. We are also waiting for the trial of the former head of the Coastal Authority, he has been charged with wrongdoing in public office and forgery of official documents.

The beach itself has been badly damaged by high tides and rough conditions, with major parts being washed away. Also remember that in August 2016, the local residents and their homes were flooded. The residents themselves ended up building defences to stop it happening again.

The sand itself which was imported from Western Sahara, which under UN rules should not have taken place, as this area is deemed under occupation by Morocco and is subject to sanctions. This sand around 70,000tonnes was laid on the beach without first being treated, so this could also have an environmental impact on the area.

So, there is a lot going on in the world of timeshare, we are only reporting the tip of the proverbial iceberg. There is more to come and Inside Timeshare will bring it to you as it comes in.

You can find the articles relating these stories by using the search box, if you have any comments, Inside Timeshare would like to hear and share them with others, it is only through your contributions that the truth will get out.

Here to help

 

taruo-beach-sands-wash-away

Tauro Beach: Latest Development

Nature is now taking its own course on Tauro Beach, La Provincia, has today published the latest in the debacle that is the Anfi Tauro Beach project. The Canary News which is the English language paper in Gran Canaria, has also published the news on their website.

The warnings that were given about the nature of the tides and waves by locals have come to life, a huge chunk of the beach has now been washed away, revealing what is left of the original pebble beach.

The project to create an artificial beach involved importing 70,000 tonnes of sand from the Western Sahara, this was laid after the old pebble beach was removed. It was also laid without first being treated, this say environmentalists, could cause problems due to invasive species being in the sand. It has already had some detrimental effects on the marine area that is protected which is only 300 meters away.

It is now only 5 months since Anfi stated that work was now completed and weeks after the announcement that Anfi was to lose the concession and rights to run the beach for profit over the next 50 years. This was announced by the Canarian Government with the initial proceedings taking place at the Court of San Bartolome de Tirajana.

The beach has been closed to the public since work began and is still fenced off. Canary News also makes reference in their article about the major investigation being conducted for “corruption investigation and accusations of impropriety at the highest levels of the Canarian Coastal Authority”. We have already seen one prosecution of the former head of the authority and are just waiting for the court to complete the trial. The Mayor of Mogan is also currently under investigation and it remains to be seen how many more people end up being prosecuted.

Back in August, we saw the homes of the local people being flooded which ended up with a barrier being built to protect homes from flooding again, now with the sand being washed away, what of the remaining beach, after all we have not yet seen the winter storms or very high tides yet.

 

http://suscriptor.laprovincia.es/gran-canaria/2016/12/13/marea-lleva-parte-arena-playa/889842.html#

Tides take sands from Tauro beach

So the story goes on, as more news comes in, Inside Timeshare will publish it here. If you have any comment or questions about any article published, or if you have some information you would like to share, please use the contact form on the website.

thoughts

My Thoughts Today: End of November

Yes, it is that time again, the end of another month and what a month it has been. Canarian Legal Alliance has now had 36 Supreme Court rulings in favour of their clients, the latest was on 28 November.

In the latest ruling, again against Anfi, the British clients will receive £22,940 plus legal interest and legal fees, with their contract being declared null and void. Once again the Supreme Court reiterated their previous judgements that floating weeks are illegal.

This latest ruling comes just 4 days after the Supreme Court ruled against Palm Oasis /Tasolan, again the ruling was about floating weeks. In this case the Norwegian clients have been awarded 8,810€ plus legal interest and legal fees. Their contract was also declared null and void.

It does make you wonder why these companies are taking these cases, which have already been ruled over at the lower courts, all the way to the Supreme Court?

We know that Anfi, the RDO and others, still believe that the courts have got it wrong, but after 36 rulings in favour of clients, one has think are they just trying to delay?

It has to be pointed out that these rulings cannot be changed, the Supreme Court has unanimously found in favour of the consumer on each case, with lower courts now using them in their deliberations.

Tribunal-Supremo

We have even seen this month the High Court Number 4 in Malaga using these judgements in the case against Leisure Group Ltd. In this case the CLA client has been awarded 12,390€ plus legal interest and legal fees. Their contract has also been declared null and void.

Canarian Legal Alliance has now spread its wings from the Canary Islands and over to the mainland. They have had success in the past at the courts in Fuengirola and also in Barcelona, this latest case in Malaga just goes to prove that any contract sold that is illegal will be ruled against no matter where. CLA are certainly becoming a force to be reckoned with.

We have again this month published articles on the changing face of the TCA, it must also be pointed out that several readers have also noticed that articles published here, are several days later appearing on the TCA website. The content has been juggled around a little, but it can be clearly seen from the style of writing where they did originate.

Inside Timeshare is to be honest, quite flattered that they are using our articles, the only problem is one of acknowledgement. When using articles written or published by someone else, it is normal practise to state where this came from citing the source and usually providing a link.

In another piece regarding the TCA, we published the article on incorrect information, this concerned their post on cold calling. In this they stated that “Cold calling in the UK is illegal as it is considered a breach of privacy”. As we showed in the article, cold calling is not illegal, but there are some very important a rules regarding how it is done. These were published along with a link to the Information Commissioner’s website for the full regulations. (see link below)

https://ico.org.uk/for-organisations/guide-to-pecr/electronic-and-telephone-marketing/telephone-marketing/

data-protect

We also highlighted a problem regarding owners data, in this article and the follow up, we looked at the battle going on between the resorts / developers and owners, as to who controls / owns this data.

One of our readers, Edward, wrote part of the first article, here he showed how his resorts community of owners have been trying to use the members database to contact and inform owners of changes at the club. Even the Spanish Data Protection Agency believe that it belongs to the owners and the resorts / developers are only users and custodians of this information.

We all know that lists of members are sold on to others, as we stated in both articles, even Diamond have acknowledged employees and ex-employees have taken data and sold it on. We even explained that for many on the sales staff, keeping records of clients is like an insurance policy, to be used when they no longer have a job. Remember data is a commodity, it can and will be sold, it has yet to be proven if any of this data has been misused by owners committees, that I very much doubt.

Irene also published many articles this month, one was just after the presidential election, this was titled “Dialogue: The Way Forward”.

In this piece she explained how the divisiveness of the election equates to that in the world of timeshare, owners Vs resorts / developers. In the article we address the problem and the only solution, “Dialogue”. The need to work together to ensure that owners and the industry benefit, it is a long shot but somewhere along the line there must be a coming together, if not there will no longer be an industry.

In the article “Illness: Is not a Reason to Surrender your Timeshare” myself and Irene highlighted a very huge problem, that of the elderly and sick. This is a problem for owners on both sides of the great lake, we have seen this with the ongoing story of Mrs B and MacDonald Resorts. Owners unable to use or travel due to illness yet still paying maintenance and being unable to surrender their membership. In some cases they can, but the financial penalty is quite often a huge one, for instance, MacDonald Resorts want 4 years worth of maintenance, but this is not guaranteed, it is if they “allow” you out. (see link below regarding MacDonalds)

http://insidetimeshare.com/macdonald-resorts-reasonable-recompense-relinquishing/

Tauro Beach also came into the news again this week, with the announcement that the Canarian Government was revoking the concession awarded to Anfi Group for the Tauro Beach Project. This follows the prosecution of the former head of the Coastal Authority, the investigation into the Mayor of Mogan over the permissions and licenses given for the project. This will obviously cost Anfi a fortune, not just what they have already spent on it, but the cost of repairing the damage caused. The question is now who will foot the bill, the company or the members with increased maintenance?

Playa-Anfi-Tauro-Canarias-Ahora_EDIIMA20160716_0223_18

So, that is November, it now remains to be seen what happens in December. Although with the Christmas and new year period, it will be a rather quiet month. Inside Timeshare would like to thank Irene and all the other contributors to the articles published this month. These contributions help to make Inside Timeshare more balanced, they also provide a great source of information which might just get missed.

If you require any information on any article published, or you have something we have missed, Inside Timeshare would love to hear from you. If you have a story you would like to share, contact us and we will work with you to publish it.

new tauro beach

Mayor of Mogan Under Investigation into the Anfi Tauro Beach Project.

Continuing on from the article published on 7 October, regarding the first prosecution of the head of the coastal authority, Nueva Canarias Mogan issued another twist.

 

It now looks like the Mayor of Mogan, Onalia Bueno is now under investigation for granting a licence which apparently had expired. It now looks as if unlawful acts have been committed in the execution of the regeneration work at Tauro Beach. This work is being carried out for the Anfi Group, who have plans to build new hotels and a shopping mall as well as a marina with around 500 berths.

Onalia Bueno laying the first sand (right)

We know that the local residents have bore the brunt of the problems, with homes being flooded by the tides back in August. They have also lodged formal complaints with the Guardia Civil in respect of the damage caused.

 

This whole project to create a manmade beach, does appear to have been beset with what might be called irregular procedures, the granting of licences after the work had started and falsifying documents after the fact. It was the Guardia Civil Nature Protection Unit (SEPRONA), who originally instigated the investigation and made this public.

gc-seprona

It would seem that this is only the tip of the iceberg, with possibly more prosecutions to come as the investigation progresses. Inside Timeshare will keep you posted as this story develops.

 

https://www.facebook.com/Nueva-Canarias-Mog%C3%A1n-185892306754/?fref=nf

 

http://insidetimeshare.com/first-prosecution-tauro-beach-project-filed/

 

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