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A Lesson for Other Timeshare Companies

Over the past few weeks many of the articles have shown some of the worst of timeshare, today however we show what can be good about timeshare.

In the UK there is a certain saying which is normally associated with substandard, shoddy or a bit of a joke, that saying is “Mickey Mouse!”

But in the context of this article it means brilliant!

Irene Parker explores one timeshare product that excels, in the world of timeshare this is rare indeed, Inside Timeshare has also done a lot of investigating and concurs with Irene, we can find no complaints against this “Mickey Mouse” outfit.

Before we published this article we reached out to Bluegreen, they told us they would have a response within 24 hours, that was on Monday, we still have not heard from them. The point is, by reaching out to other companies, we are giving them the opportunity to change, by working with us and our readers they have the chance to put right what is wrong with timeshare.

In Europe and Spain in particular, it is legislation that is forcing timeshare developers to change what and how they sell. The proliferation of court actions has changed timeshare for the better, we are seeing products and sales techniques change. Disney have shown that by having respect for their clients and putting their needs first, they have a product that is worthy of the name “timeshare”.

So on with Irene’s article.

Disney Vacation Club vs The Timeshare Industry

https://disneyvacationclub.disney.go.com/membership/

Why can’t I find any Disney complaints?

disney

By Irene Parker

July 26, 2017

Try as I might, I cannot find complaints about Disney’s timeshare arm, Disney Vacation Club. Searching in vain, it brought up memories of the old Maytag repairman ads describing the Maytag repairman as “The Loneliest Guy in Town”. The point of this long running series of commercials was that the product was so trustworthy and dependable that Maytag repairmen spent their days waiting for the phone to ring.

https://www.youtube.com/watch?v=rXJ0rAyE_mQ

Why does the Disney Vacation Club have so few complaints? Any company has its grumblers, but the best I could find were a few owners complaining about availability. I asked Fernando at the Disney sales call center. Fernando was not allowed to provide his last name but was happy to talk about what makes Disney different and why Disney customers are so loyal.

Fernando attributed such a low volume of complaints to customer expectations met. As far as the complaints about availability, “Some timeshare members plan better than others”, said Fernando. “But it’s all about meeting customer expectations.” Just like hotel bookings, timeshare bookings are subject to supply and demand that fluctuates with peak and off seasons.

I also asked Fernando if he felt a viable secondary market was a benefit for the company as the timeshare owner obviously benefits from access to a secondary market. “Disney does not attempt to control the market. We believe timeshare should be a free market,” he explained.

Members of the Licensed Timeshare Broker Association say Disney has one of the best secondary market prices. Tom Tubbs of Island Consulting Realty told me Disney almost always exercises their Right of First Refusal. A company that exercises its ROFR actually supports the resale price. Island Consulting Realty is BBB accredited with an A+ rating and a member of LTRBA and ARDA.

http://www.licensedtimeshareresalebrokers.org/

The Timeshare Store markets basically only Disney timeshares.

“We don’t charge any upfront fees. A seller pays a commission at the time of closing and $170 in fees to Disney Vacation Club,” explained Jason Erpelding, Licensed Real Estate Broker Associate. Above all, consumers buying or selling a timeshare on the secondary market should work through a licensed broker as timeshare resale and listing scams are common. The Timeshare Store has a Better Business Bureau rating of A.

http://www.dvc-resales.com/

Contrast Disney timeshare resale prices with timeshare resale prices in general. Many timeshare are offered for $1 to $99, originally purchased for thousands of dollars. As demonstrated by The Timeshare Store listings, Disney resales are offered for $10,000 to $30,000 or more. Contact The Timeshare Store or a LTRBA member to find out the benefits or lack of benefits buying resale vs buying directly from the timeshare developer.

https://www.bbb.org/west-florida/business-reviews/timeshare-companies/island-consulting-realty-in-sarasota-fl-18003121/bbb-accreditation

Disney’s website states: You purchase a real estate interest in a Disney Vacation Club Resort. The keywords are real estate. You own something and thus have a beneficial interest. Some timeshare company non-deeded points have been compared to buying air. Lack of availability is a frequent complaint.

Fernando and I talked about Disney’s corporate culture. Ray Kroc of McDonald’s restaurant fame and Walt Disney both drove an ambulance for the Red Cross in World War I. “While we were out chasing girls, Walt was drawing cartoons. All those girls are dead but Walt’s cartoons thrive to this day”, said Kroc.

mickey

Walt Disney and the Walt Disney Corporation were originally motivated by art. Money was the by-product of a pure motivation. Think of a real estate agent who is motivated by finding you the best house as opposed to the real estate agent that has nothing but the vision of a commission check dancing in front of his or her eyes. The purity of Walt Disney’s original motive has had an effect that has carried through the decades. “People buy a Disney timeshare because they know Disney and believe in Disney”, said Fernando. In other words, the strength of the Disney brand, supported by met expectations, has led Disney to become the model for timeshare developers industry wide. “I love what I do here,” Fernando added.

Lisa Ann Schreier, former timeshare sales agent and author of Timeshare Vacations for Dummies, echoed Fernando’s enthusiasm. Lisa worked at Celebration World Resort, right in Disney’s Orlando neighborhood. “Most if not all Disney Vacation Club purchasers/owners are given sufficient information on the product before and after purchase. There’s no feeling of being rushed into a purchase and Disney’s famous Guest Service is no less evident with DVC than at The Magic Kingdom”.  

There doesn’t appear to be any angry owner Facebooks or websites either. Let’s contrast Disney with Bluegreen timeshare. The following are member supported Bluegreen Facebook pages. In parenthesis I have changed the words to be generic as the advice provided is appropriate for any would-be timeshare buyer.

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

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

(Any timeshare company) IS NOT RESPONSIBLE FOR DOING ANYTHING OTHER THAN WHAT IS STATED IN THE CONTRACT. IF YOUR SALES REP CANNOT SHOW IT TO YOU IN WRITING IN THE CONTRACT DO NOT EXPECT TO SEE IT HAPPEN.

YOU HAVE A CANCELLATION PERIOD WHICH VARIES BY STATE AND THAT INFORMATION IS ALSO IN THE CONTRACT.

(Many)  BENEFITS ARE NOT GUARANTEED. THEY CAN BE CHANGED OR CANCELLED AT ANYTIME.

This is a public group accessible to everyone, including Sales and Corporate. You are responsible for your own comments, opinions, etc. I am merely providing this page as a single location for both positive and negative experiences in regards to the sales team. Allowing both them and corporate to better improve how owners and possible new owners are treated, likely increasing sales.”

A Member Sponsored Bluegreen Facebook page:  770 members

This Facebook page seems to be a sort of self-help Facebook for members trying to be released from their contract. A book on how to write a letter to an Attorney General is available.

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

The following internet consumer complaint sites list Bluegreen reviews:

Consumer Affairs rates Bluegreen 1 ½ stars out of 5 stars based on 100 ratings. There were a total of 411 reviews. In all fairness, Disney ranked only 2 stars out of 5. Typically happy customers don’t bother searching for complaint sites to post positive reviews. Consumer Affairs posts a balanced collection of consumer reviews helpful for consumers researching online.

Pissed Consumer rates Bluegreen 1.9 out of 5 stars based on 155 reviews. There were a total of 761 reviews. There were no Disney reviews on this site.

Complaints List – There was only one Bluegreen complaint but the comment was intriguing.

“One federal authority told me they are in violation of the constitution by enslaving people with unending contracts because this is a form of indentured slavery and slavery is unconstitutional…”

Better Business Bureau

TUG Timeshare Users Group noted that Bluegreen lost their rating in 2010 with an F rating.

http://tugbbs.com/forums/index.php?threads/bluegreen-corp-loses-its-bbb-accreditation-with-an-f-rating.132284/

Bluegreen is not BBB accredited but now has a B+ rating.  Keep in mind BBB does not resolve complaints. They rate how effectively a company responds to complaints.

7 positive

4 neutral

67 negative (out of 78 reviews)

Bluegreen had 761 complaints in the last three years.

https://www.bbb.org/south-east-florida/business-reviews/vacation-clubs/bluegreen-corporation-in-boca-raton-fl-8195

Contrast the Bluegreen BBB rating with Disney’s rating:

Disney has been accredited since 1991 with an A+ rating. There was one review:

1 positive

0 neutral

0 negative

Disney had nine complaints in three years.

In my research I found useful timeshare tips provided by the Wisconsin Consumer Protection Division, the most important being:

Oral promises: Make certain all promises made by the salesperson are written into the contract.

https://datcp.wi.gov/Pages/Publications/TimesharesResellers182.aspx

Here is the company response one of our Diamond Resort readers just emailed me in response to their allegations that they were sold by deceit and bait and switch. I have highlighted the oral representation section in red.

“We must advise that legally the contract is binding and as we have previously advised the relevant information could be found in the body of the agreement and was in fact acknowledged by yourself. We must advise that it is specified clearly in the contract documentation that if you relied upon any verbal information given during the presentation you must ask for this to be put in writing. Likewise, if anything was said that was of particular importance to you, but which is not contained in the terms and conditions of the membership, this should have been requested to be implemented in the body of contract before documentation was signed.”

It would certainly save the timeshare company and the timeshare buyer a lot of times and trouble if the paragraph above would be provided to the person about to enter a timeshare presentation. Most, if not all of the complaints Inside Timeshare receives begin with, “The sales agent said…..”

The Finn Law Group maintains approximately 500 timeshare cases. Timeshare attorney Mike Finn told me he has never had a Disney client which led me on this quest to find Disney complaints. Mike Finn has often said the timeshare contract’s oral representation clause is “a license to lie”, used and abused by some timeshare sales agents. Just think. If Disney were the only timeshare company out there, Mike Finn would be Disney’s version of the Maytag repairman.

maytag

So there we have it, not exactly rocket science is it?

Put the customer first, give a good service and bingo, happy all round. A business model that keeps going, a business that people are proud to work for, a business that customers are happy to be members of.

On another note, Canarian Legal Alliance, announced that it had just received another Supreme Court ruling, that now brings the total to a massive 57. You could say that they have just had their “Heinz” moment.

In Spanish legal history this is unprecedented, no other law firm has achieved anything like this, from what our sources tell us this figure is set to rise, as they have many more cases waiting to be heard in Spain’s highest court!

As the news comes in we will keep you informed.

In this week’s Friday’s Letter from America we will be publishing another article on Advocacy, written by one of The Timeshare Advocacy Group. In this analysis of the industry the writer puts forward some very interesting points, so stay with us for the next article, see you then.

flags

Friday Review: News from Across the Ocean

Inside Timeshare once again publishes the Friday article from across the Great Lake (The Pond to our American Cousins). Today a new contributor, Laurie Sabbagh, with additional notes from our senior writer Irene Parker, who is doing a great job in rousing timeshare owners in the US to work together and improve the industry.

Firstly, we are getting more and more information on that outfit operating out of Tenerife, the Litigious Abogados family. The latest addition which we reported on 14 March Abel Garcia, was very interesting. As we said in the article, the website was registered on 5 January 2017, the name of the “law firm” was never heard of, yet the court document showing “Keith Baker” being sentenced, is dated 17 January 2017. Well we have never heard of a case going to court and being adjudicated with sentence being passed within 12 days. Wow, these lawyers are good!

We have also heard from another reader who had dealings with Stephen Fairclough and Meredith Pritchard Claims Consultancy Limited, another figure of just under £6000 has been paid, given the details of Jose Dorta of D&M Lawyers, yet no case or anything. This reader also suspects that the elusive Stephen Fairclough is back in Portugal.

So now on to our new contributor.

A Diamond Resort Member Does Her Timeshare Homework

Timeshare Members Instructing Other Members

Board

By Laurie Sabbagh  

Notes from Irene

March 17, 2017

Diamond Resorts member Laurie Sabbagh is also a member of our Diamond Resorts Advocacy Facebook Page. Our mission statement:

We seek to provide Diamond Resorts 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/

Today Laurie educates prospective and current owners. Not many timeshare buyers comparison shop. Timeshare sales presentations are almost always same day sales. A timeshare sales agent named in the Colorado Attorney General’s investigation of Highlands Resorts explains why:

“According to Highlands Resorts” sales manager Steve Abrahamson, named in the lawsuit, “In the eighteen months he worked for Highlands Resorts, not a single consumer returned after their sales presentation to make a purchase. In his fifteen years in the timeshare industry, Abrahamson never saw a consumer purchase a timeshare after leaving a sales presentation.”

http://insidetimeshare.com/another-us-attorney-general-exposes-deceptive-tactics/

From Laurie:

I recently started reading the invaluable Inside Timeshare articles and web postings of timeshare advocate Irene Parker after joining the member sponsored Diamond Resorts Advocacy Facebook Group. In February I posted that I would soon stay at Diamond’s Los Abrigados resort in Sedona. Irene asked me to attend the “members update” to find out if sales agents were adhering to the Arizona “Assurance of Discontinuance” rules.

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

After more than ten years of dodging the member updates, (i.e., sales pitches), I reluctantly accepted the invitation from the concierge to attend a 55 minute presentation.First, a little background on my Diamond “The CLUB” membership:

My membership started in 2006, when I purchased 8500 points in the Hawaii Collection when it was part of Sunterra. This vacation ownership interest (VOI) gave me a right of use equal to one week at either the Point at Poipu in http://Kauaior the Ka’anapali Beach Resort in Maui that I could reserve 13 months out, plus have access to resorts in the US and California Collections. In 2011 I received notice of a special assessment (SA) for a water intrusion problem at the Point. I scoured the internet to find out what was happening and learned that Sunterra knew about this massive liability when I purchased my vacation ownership, but its salespeople most likely weren’t informing prospective buyers about the problem prior to DRI’s impending purchase.

http://www.tstoday.com/members/magazine/issue123/7-poipu%20point.pdf

I was able to absorb the cost of the SA and considered myself lucky compared to owners who were on the hook for around $6,000 per deeded week for the water intrusion project – as many as 500 owners defaulted on their units because they either couldn’t or refused to pay the assessment. By reading Redweek and TUG I learned that management companies can change the terms of the Vacation Ownership Interest VOI membership agreement at any time, for practically any reason. I also read posts about high-pressure and questionable sales tactics being used to get consumers to buy into the various Collections  – some Hawaii Collection members were being told to get out of that collection by buying more points to transfer into the US Collection to avoid future SA’s, and vice versa. Reading about other people’s’ experiences was a wake-up call that it was not in my best interest to buy any more points.

Note from Irene:

I have received several complaints from people who attended sales presentations (one at Daytona Regency) told they should not have bought Hawaii Collection Points because Hawaii maintenance fees were going to increase dramatically or were encouraged to transfer Hawaii Points into the US Collection because Hawaii real estate is valuable, Hawaii Collection owners only can rent Points and only Hawaii members’ heirs can refuse inherited Points. Each transfer requires the purchase of more Points.   

Now to Laurie’s member update:

Two people

The promised 55-minute update turned out to be about three hours. The first salesperson, with whom I spent most of the time, was courteous and not high-pressure, although she did advise me to buy more Points to bring me into the Silver loyalty level which is 15000 Points. But to upgrade to Silver they were going to charge me over $8.00 a point, which would have cost more than $50,000! She also said the Hawaii Collection maintenance fees were more expensive and that I should join the US Collection. However, the second sales person I spoke with said with my small number of points, it costs only about $100 more per year.

Note from Irene:

According to SIRF Southern Investigative Reporting Foundation, Diamond points historically have sold for an average of $3 to $4 a point through 2014, according to data obtained from lawsuits. In a prior article, we reported Apollo plans to raise the price per point to $10 and then $12 per point.

http://sirf-online.org/2016/03/07/27464/

Back to Laurie’s sales presentation:

The sale’s agent also said that Apollo Global Management, the owners of DRI, would freeze that price for me for 18 months, and that the price was likely to rise soon.

Note from Irene:

Apollo Global Management founder, banker Leon Black, also founded Drexel Burnham Lambert of junk bond fame. Junk bonds did have some value, but a Diamond contract becomes worthless the moment it is signed should an owner need to sell, unless a friend or family member is willing to buy the Points.

Laurie:

I was also told that DRI members can use Points like cash for items such as airline travel, hotels, luxury items, and guided tours and adventures.  For example, Diamond Luxury Shopping enables Platinum and Gold members to apply Points towards products that are 30% off the best market price. But at a redemption point of $.30 per Point, this seems exorbitant to me.

Note from Irene:

I tried to use Points for an airline ticket. The Points we bought for $4 were worth $.07 for travel awards (Platinum $.10) so for $2,300 in equivalent maintenance fees dollars I could buy one domestic US flight. Customer Service told me this benefit is for convenience, not value.

Back to Laurie

Another example is that members can use 1500 points to purchase America the Beautiful – the US National Parks and Federal Recreational Lands Annual Pass.  My 8500 Points cost $1,973 this year, which includes maintenance fees, The CLUB fee, taxes, and mandatory membership in Interval International. That comes to about 23 cents a point.  For me, 1500 Points for the pass equates to $348, not including the $10 processing fee for my “Valued” level of The CLUB membership. I paid $80 for the same pass at a National Monument we just visited. Seniors over 62 pay $10.

At the end of the presentation a third person asked me some questions, including if I was treated courteously. I said yes, but also said I was not interested in buying any more Points with DRI. I declined the $100 Visa gift card, since that was not my reason for attending the update.

All said my elderly parents and I had a wonderful week at Los Abrigados. I was able to secure the historic Stone House, an 1800 square foot property with four separate entrances for only 6500 points. I almost always book weeks for 50 to 75 percent off, within the 59 day discount period, and have experienced good value for my points.  Every year I’ve been forced to vacation or lose my points, and I’ve taken about 18 weeks of vacation at DRI resorts since I bought my membership. If I had not purchased this VOI, I never would have gone to all the places that The CLUB membership has enabled me to visit. However, I advise other members to only use points for timeshare use, not the auxiliary products or non-resort vacation experiences DRI offers.

Thank you to Laurie for sharing her knowledge and experience. Email us at Inside Timeshare if you have a timeshare story you would like to share.

share

Thank you Laurie and Irene, once again Inside Timeshare would like to thank all those who contribute, either through writing articles or supplying information on possibly rogue companies. It is through your efforts that we can inform the timeshare world on what is going on.

On another note Canarian Legal Alliance has been nominated for the Canary Awards which recognises individuals and businesses that make a difference on the Canary Islands.

Canarian Legal Alliance has been nominated in the Real Gran Canaria category for their outstanding services to timeshare consumers and their efforts in the changing of consumer law.

In the Business Person of the Year category is Csilla Nazali, the operational manager of CLA for her outstanding work with all the clients.

Follow the link and vote for them, I’m sure they will appreciate it.

http://thecanaryawards.com/vote/voting-categories-page-1-of-2/

 

europe-usa

Irene Parker: Barclay Card and Timeshare in the USA.

Back in July Inside Timeshare published the article about Shawbrook Bank setting aside around £9 million, to cover defaults in loans issued by timeshare sales staff. It announced that the bank had not carried out its due diligence in accepting these finance agreements.

The article also highlighted the ongoing high court action brought against Barclay Partner Finance for loans issued for timeshare. These were for the so called “investment” packs being sold by Resort Properties / Silverpoint. Many of the agreements were given without the normal checks being carried out in respect of the clients income or the ability to repay the loans, with many of the applications being falsified in order to get it passed.

Another aspect of the article showed the same thing happening in the USA, with people who did not qualify for normal finance, being passed to a Credit Union. In this case the company was Quorum Federal Credit Union, which would then sign them up as members. These loans accounted for around $40 million for Diamond sales.

It has now been highlighted that sales staff in the US are issuing credit cards, again it is Barclays who are in the picture. Irene Parker, sent the following article.

Barclay card by Irene Parker 10/24/16

barclay-card

There is nothing wrong with travel reward credit cards, but when consumers on vacation get locked into timeshare presentations that can last for hours; credit card lending can turn predatory.

Several banks have come under fire for overzealous sales practices. Wells Fargo and Barclays Bank through Barclays Partner Finance, along with other U.K. banks, have come under regulatory scrutiny and been the subject of lawsuits for a host of reasons, including predatory lending through the use of timeshare developer-sponsored credit cards.

Shawbrook Bank in the U.K. has admitted that it didn’t do its due diligence when approving the finance for vacation ownership products. One of its biggest partners is Diamond Resorts International, a timeshare company that has come under fire for its aggressive sales practices.

Diamond offers a Diamond Resorts Barclaycard Master Card with a 0% promotional six month APR if used for a Diamond Vacation Ownership Interest down payment, along with Diamond Resorts International reward points for other purchases. After that, it is a variable APR of 15.24%, 19.24% or 22.24% depending on creditworthiness.

Diamond Resorts International’s primary business segments are hospitality and management services and vacation ownership interest, or vacation points sales, and financing.

It is the financing component that often makes people with vacation brain sign a contract on impulse for perpetuity, not even having used the vacation service at the time of purchase. The decision is often based on how well the buyer likes the resort if they aren’t an existing owner. In other words, they may not use the booking program until the next vacation.

As an example, Arthur Saldana, 55, and his wife Sylvia, 49, have been Diamond Resort International owners for several years. They owned a deeded week at the Sunterra London Bridge Resort in Havasu, Ariz., for about 10 years prior to Diamond Resorts International acquiring Sunterra in 2007.

The couple was persuaded to give up a deeded week, one that came with a deed that has a limited secondary market, in exchange for timeshare points that are non-deeded with no secondary market. During a series of five sales presentations over a five-year period, the Saldanas accumulated 30,000 Diamond Resorts International points that elevated them to gold status in 2013.

Sylvia Saldana said that she and her husband signed many contracts, and they thought they were actually helping their children. “We thought that after we paid off the Diamond mortgage our four children would only have to pay maintenance fees,” she said.

But maintenance fees increased to the point where they could no longer afford to own their points. The family soon found that they had to charge maintenance fees to their credit card in order to pay them.

The Saldanas had already taken out a $33,000 home equity loan from their credit union to reduce the high Diamond Resorts International loan interest rate, typically 14% to 18%.

Worse, the children, now almost grown, say that they have no interest in timeshares.

At their last stay at a Diamond Resorts International resort in August 2015, Sylvia Saldana said that a sales agent tried to convince them to purchase another 10,000 points in order to achieve platinum level, which is 50,000 points (Remember they owned 30,000 points).

The sales agent explained that by being platinum, it would allow the couple to pay their maintenance fees with their points, as only platinum members are allowed to use their points to pay maintenance fees, Sylvia Saldana said.

At the time of the 2015 presentation, Diamond Resorts International’s FAQ indicated that as of that year, only platinum members could exchange points for a monetary credit toward the cost of their annual maintenance fees for their collection membership and points and/or dues for the club.

A Diamond Resorts International representative who gave her name as Pamela — these reps aren’t allowed by the company to provide their last names — confirmed that “only platinum members can use their points to pay maintenance fees. Any member can open a Barclaycard to pay fees.”

When we purchased our Diamond Resorts International contract, we were told that the practice of using points to pay maintenance fees isn’t encouraged due to the point value being reduced to pennies on the dollar if used to pay maintenance fees.

The sales agent aggressively tried to persuade the family to open a Diamond Resorts International credit card to pay for the additional points, despite the fact that they couldn’t afford the fees, Sylvia Saldana said.

Arthur Saldana became so angry, he left the presentation.

Fortunately, the couple realized that the credit card wasn’t a prudent solution to their problem.

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