Browse Month

July 2019

Anfi Hits Spanish Television News

Following Monday’s article about Anfi Sales and Anfi Resorts hiding assets in an attempt to avoid paying back money awarded to clients in the Spanish courts for the selling of illegal contracts, they are back in the news. This time it is on Spanish national television TVE 1.

They report what we already have published and what was published in El Diario, Inside Timeshare has a recording of the news item to which has been added subtitles it has also been uploaded to Youtube.

https://youtu.be/VOujAX_HS50

The lawyer who is dealing with this case on behalf of Canarian Legal Alliance clients, Eva Gutiérrez is being interviewed outside one of the CLA offices in Arguineguin, with the Anfi Resort in the background. In the interview, Eva explains the reason behind the emptying of bank accounts giving the reporter all the figures. She is also seen working on documents showing the various bank accounts.

Eva Gutiérrez

It is actually quite staggering the amounts which are in the millions of euros that are being diverted from these accounts to avoid court-ordered repayments. It is no wonder that the Provincial Prosecutor’s Office has been taking a very keen interest in this matter.

During the interview, Eva Gutiérrez also explains that CLA and their clients are urging the courts to appoint an independent administrator to oversee the accounts and the investigation. This blatant attempt we are seeing by the Anfi Group, who are also paying members of the RDO (Resorts Development Organisation) the timeshare industry trade body and governed by their code of conduct and ethics, is in the mind of Inside Timeshare possibly a criminal act.

As yet we have not seen any statement from the RDO regarding this and we very much doubt that they will even sanction them over this. So much for the trade body and their code of conduct and ethics.

This story should place no one in any doubt as to the lengths timeshare companies will go to deceive consumers, it should also remove any doubt as to the authenticity of Canarian Legal Alliance which has over the years been smeared by the timeshare industry as a criminal gang and swindlers!

Inside Timeshare knows who the real swindlers and criminals are and now so do you!

Link to the original article by El Diario with English translation in PDF format.

https://www.eldiario.es/canariasahora/tribunales/Anfi-Timesharing-Condenas-Justicia-Deudas_0_922158442.html

If you own a timeshare at Anfi or any other resort and want to know what your legal options are, then use our contact page and we will point you in the right direction.

The Tuesday Slot

Welcome to another edition of The Tuesday Slot, this week we welcome back Shielah Brust with her article on Unfair and Deceptive Sales Practices. It is in response to the industry’s claim that timeshare members are being subjected to “Deceptive Timeshare Exit Practices”, yet we at Inside Timeshare receive many complaints on this subject by the industry’s very own sales agents. If Michael Flaskey wants these exit companies to be regulated then the industry should also take a very close look at itself. We do agree that there are some unscrupulous “Exit” companies, but at the end who is actually to blame for their creation in the first place? 

To: Michael Flaskey, Diamond Resorts CEO

The Unfair in Unfair and Deceptive Sales Practices

Timeshare Exit Companies have little to fear if they are to be regulated like Florida timeshare

“The long term strategy is, if there are (exit) companies out there that really are legitimate, which we haven’t seen yet,” Flaskey said, “then they need to be regulated the same way our (timeshare) industry is regulated.”

                                                             Michael Flaskey, Diamond Resorts CEO

https://www.orlandosentinel.com/business/os-bz-timeshare-castle-diamond-20190719-3zvqhr46yjcnplwm33fyhgm3iy-story.html

Testimony from the Florida Legislative Workshop March 2019

Victoria Butler, from the Florida Attorney General’s Department of Consumer Protection, reported a figure of 1,500 to 1,600 timeshare complaints in recent years, with about 50% involving senior citizens. She said the majority of complaints were in regard to the initial sales presentation. Ms. Butler stated that the Florida timeshare division, the Department of Business and Professional Regulation (DBPR), engaged only 42 complaints, the majority concerning resale.

By Shielah Brust

Tuesday, July 30, 2019

I am writing in response to the article linked above written by Chabeli Herrerra of the Orlando Sentinel. In the article, Mr. Flaskey expresses his concern over timeshare members experiencing deceptive timeshare exit sale practices.  Based on Diamond Resorts complaints reported by many members of our self-advocacy group, and dismissals received from DBPR, there is little to no timeshare regulation in Florida. DBPR backs up Diamond’s “You signed a contract” defence with “Verbal representations are hard to prove.”

While many Diamond members have had disputes resolved, the process requires endless rebuttals and often regulatory and law enforcement filings. In addition, we have sent more than 200 complaints to the timeshare lobby ARDA and ARDA ROC. Mr. Flaskey sits on ARDA’s Board of Directors. 

To take the “un” out of “unfair” timeshare buyers should be allowed to record the sales session. I am one of 101 Diamond Platinum members who have reported unfair and deceptive timeshare sales practices. In our case, we even have our “pencil pitch” that proves we were pitched a nonexistent maintenance fee relief program. One need not read any further than $8631 – $8631 = no maintenance fees. My DBPR investigator, when she first saw my proof, said, “I can’t believe they let you walk out with that paperwork!” Our 2017 “pencil pitch”:  

Three complaints and one lawsuit have been filed against Brad L, a sales agent at Daytona Beach Regency. Only the most recent of the four complaints resolved. A VIP at Diamond corporate told us in 2018 that they agreed Brad L’s explanation was confusing. As a result, they said they changed the way agents present the program. However, a year later, in 2019, the fourth complaining member produced a “pencil pitch” identical to ours. Only the numbers vary.

In 2017, Brad L told us to “wait a few months before turning in points to pay maintenance fees because the website (member page) was being rebuilt so that the member would be able to view a split-screen showing promised double points.” Two years later, in 2019, Brad told complainant #4 to wait a few months before checking because the website was being rebuilt.  

Also unfair is the recording of the QA closing session. The recording is routinely used against the member. Complaints are dismissed because the buyer did not ask questions in regard to what they were promised.

Members often report how they were coached on how to “pass” QA. The member believed the sales agent so did not ask questions. A member can only access the recording by subpoena, meaning the member must retain a lawyer in order to view it.  

This recording of the QA session was sold to the Arizona Attorney General as “enhanced training” after the Arizona Attorney General issued an Assurance of Discontinuance. Their office received hundreds of complaints during 2016 and 2017. From the AOD:

IV Assurances

“Diamond shall enhance its programs, policies and training and continue to instruct and train its Vacation Counselors and Sales Managers to comply with the ACFA (Arizona Consumer Fraud Act). Diamond shall advise all Vacation Counselors and Sales Managers that they may not:

  1. Sales agents should not deviate from sales material
  2. Sales agents should not make oral representations at the point of sale inconsistent with the Purchase document.

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

Since 1994, we have spent over $200,000 on Diamond points, not including maintenance fees. We have been fighting Diamond for over 18 months. Of the 101 Platinum member complaints, approximately half are about members purchasing additional points based on overstated maintenance fee relief programs and the rest the ability to sell points. Diamond points are worthless on resale, and the only program to be relieved of maintenance fees would relieve only $2,000 towards an $8600 maintenance fee, and the member is charged $100 to do so.

  • Mr. Flaskey, consider believing your highest loyalty customers over sales agents that have had multiple complaints filed against them.
  • Allow buyers to record the sales session. Why would you not allow this?
  • Florida needs to become a one-party state so the buyer can legally record an in-person presentation if Diamond will not allow the sales session recorded.
  •  Allow a 24 hour “cooling off” period so buyers can breathe before signing a perpetual contract, easily sold by deceit, accompanied by annual maintenance fees, and no secondary market.

Diamond’s lawyers twisted our written proof to mean what they wanted it to mean and twisted our words to mean what they wanted our words to mean. After Diamond allowed Brad L to answer the complaint his way, DBPR closed my case.

A letter of denial from Julia Russell, Consumer Legal Affairs Paralegal, and Russell Burke, Diamond in-house counsel, corporate headquarters, stated it was their understanding I refused to meet with the DBPR in person. I sent them the email requesting a meeting. I informed DBPR I would be in Orlando on May 16, 2019, and would bring boxes of emails, texts and other information.

I offered to meet with the DBPR reviewers. I told them I would be in Orlando. When I went to their office on May 16, 2019, their door was locked and a security sign was posted on the door.

Hard-working people who had been loyal Diamond members for years now devote a considerable amount of time reaching out to lawmakers, the media, and regulators asking the government to take a hard look at the way timeshare companies are destroying many families financially, mentally, and even physically. I will continue to fight to help others and file complaints with governmental and law enforcement agencies. Here’ how to file with the FTC and the FBI:

https://insidetimeshare.com/fridays-letter-from-america-47/

We advise members to send complaints to ARDA President Jason Gamel, also Sr. Legal VP for Wyndham, ARDA ROC, Apollo Global Management, Diamond Resorts CEO Michael Flaskey, Ashley Moody, Florida Attorney General, and Barclay’s Bank, if a credit card was involved. 

Florida’s Department of Business Practice and Regulation (DBPR) response to our complaint after I asked why the Arizona Attorney General launched an investigation based on a volume and pattern of complaints:

As you are aware, alleged verbal misrepresentations are very difficult to prove in light of the written documents and disclosures.  In terms of evidence, we rely on these documents to prove or disprove the allegations. The actions taken by other state agencies are not evidence of the alleged misrepresentations related to the sales transactions conducted in Florida.  Based on our review, it did not appear that the information provided to you by the sales agents were false and misleading. Lack of clarity could be an issue but that in itself cannot be considered a violation. We are not sure if the sales agent had voluntarily provided the hand-written notes or you had kept them on your own.  If there are discrepancies between the notes and what was actually received in terms of points, we will address that issue.

Brad’s explanation:

Brad said we paid $8,631 in maintenance fees for 50,000 points in 2017.  Following Brad’s logic, we could eliminate $8,000 of the increased $11,252 maintenance fee (due to the purchase of 15,000 additional points), by taking advantage of this new program. From Brad’s notes:

65,000 own                $8,631 current maintenance fees before 15,000

 65,000 given               2,621 maintenance fees on the new 15,000

130,000 points           $11,252 Total maintenance fees with new 15,000

  50,000 if used           8,000 Less reimbursement check

  80,000 left                  $3,252 Maintenance fees still owed        

x $.10 reimbursed

EXCEPT THERE WAS NO 65,000 POINTS GIVEN!

$8,000

Diamond’s Clarity™ promise launched after Mark Brnovich, Arizona Attorney General, issued an Assurance of Discontinuance:  

The CLARITY Promise:

With this clear, concise and consistent information, consumers can easily determine whether the Diamond Resorts hospitality experience is the right decision for them and their families.

https://www.businesswire.com/news/home/20170123005839/en/Diamond-Resorts-Launches-New-National-Customer-Service

Diamond’s Response:

On April 5, 2018, we received a call from a DRI Hospitality agent. They found no wrongdoing. This is part of what she said to us. 

I definitely agree that your confusion of that process is warranted. I have spoken to our legal team and sales team and we agree the double point explanation is definitely something that could have been misconstrued or seen as confusing by members or purchasers.

We have made changes to the way that information is given at the time of sale but we have to say the stance we take on this is: because there may have been some confusion on how you may use those points to create savings for yourself doesn’t make the explanation illegal.

According to the Federal Trade Commission Section 5

An act or practice is deceptive where

  • a representation, omission, or practise misleads or is likely to mislead the consumer;
  • a consumer’s interpretation of the representation, omission, or practice is considered reasonable under the circumstances; and
  • the misleading representation, omission, or practise is material.

https://www.federalreserve.gov/boarddocs/supmanual/cch/ftca.pdf

I hope Ms. Herrerra will write a story for the people’s side.

Sincerely, Sheilah Brust, a Diamond Platinum member in foreclosure

Pictured from left: Anna and Diamond Platinum members Cindy, Patty and Sheilah

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

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Free at Last Facebook

https://www.facebook.com/groups/623703881470577/?ref=share

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: 

https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

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

Inside Timeshare Facebook Group

https://www.facebook.com/groups/2213231165610648/

Thank you Shielah for a very interesting article and for taking the time to write it, you have certainly made some very interesting points. Inside Timeshare will continue to publish the concerns of these practices by the timeshare industry as well as exit and resale companies who use these same techniques.

Tomorrow Inside Timeshare will be publishing more on the Anfi story regarding the intervention of the Provincial Prosecutors Office, we will be publishing a news item aired by TVE 1 News which is Spanish National Television. It includes an interview with the Canarian Legal Alliance Lawyer Eva Gutiérrez.

Breaking News: Prosecutors Office Denounces Anfi

Further to our article about the Anfi partner IFA’s AGM published on 22 July 2019, in this article, it was revealed that IFA was subject to questions regarding all the court cases, the possible cost to IFA and what it would mean to shareholders. The article also explained how IFA is being denied any influence or information on the running of Anfi by their partners Santana Cazorla who owns the “Golden Share”. Today’s article brings in a new dimension to the tale.

The newspaper El Diario has published that The Provincial Prosecutor’s Office of Las Palmas has now filed two complaints against two of the Anfi Group Companies, Anfi Resorts and Anfi Sales. The nature of the denuncias is for hiding assets in order to avoid seizures of money in the execution of sentences issued by the courts against Anfi Group for the numerous infringements of the law in the sales of their timeshare product.

Link to the full report published by El Diario 26 July 2019. (To translate from Spanish open in google and right-click on the article selecting translate)

https://www.eldiario.es/canariasahora/tribunales/Fiscalia-denuncia-Anfi-ocultar-embargos_0_924258398.html?fbclid=IwAR2RFYXoewmBTTWBITZLZcXgTe-nSnEmsBgkz04DVFTqzrXm9czh6dqsx5Y

On 12 July, the Prosecutor Elena Herra signed the papers that send the investigative proceedings opened in January to the Court of San Bartolomé de Tirajana. This follows denunciations by two lawyers Eva González of Canarian Legal Alliance and Miguel Rodriguez Ceballos (formerly of CLA) on behalf of clients following Anfi’s failure to pay the court awarded amounts to the clients by enforcing embargos.

This process is being initiated in all cases and given the refusal of the Anfi Group to comply and voluntarily pay as requested by the courts, the court has demanded a list of all assets in order to embargo and seize the assets.

It is also alleged that since 2014 to the present millions of euros have disappeared from these current accounts with the balances being practically zero. This is despite the fact the activity of the selling of timeshare at Anfi has neither ceased or decreased as stated in the annual statements of the Anfi Group.

The information has revealed that Anfi Resorts and Anfi Sales accumulated more than 13 million euros in sales one month before the Supreme Court made its first-ever ruling establishing that no contract was to be sold for a duration of more than 50 years (Law 42/98). By December 2017 those 13 million euros had been reduced to 400,000€ and that figure has decreased even further within the last 18 months.

In this specific case, five examples of cases in which Anfi have failed to pay on sentences issued by the courts between 2017 and 2018, some of these are for sums in excess of 200,000 euros. This is despite the fact that there are in existence orders and decrees that urge the company to comply with the execution of sentences under severe penalties for serious disobedience.

The Prosecutors Office has requested that preliminary proceedings be opened in the courts regarding these facts and that the legal representatives of Anfi Sales and Anfi Resorts, members of the boards of directors for both companies in 2018, persons responsible for services be investigated as legal entities and the person responsible provide the relationship of the assets to the courts.


Court of San Bartolomé de Tirajana, Maspalomas, Gran Canaria

A second article was also published by El Diario on 28 July, in this article, it was announced that lawyers from Canarian Legal Alliance on behalf of their clients have filed for a court administrator to be appointed to oversee the accounts.

According to El Diario Anfi stopped the first of three applications to the court by immediately settling with the clients and paying them what they were due. However, in the case of other clients, the court has already convened for September to try and reach an agreement to pay them if this is not settled the court will activate the option of the Judicial Administrator and embargo the accounts.

This leaves Anfi in a very precarious position as the emptying of accounts to avoid payment could lead to criminal action against the companies and the responsible persons involved. It leaves us in no doubt that the courts are taking this matter very seriously.

Link to the second article published by El Diario.

https://www.eldiario.es/canariasahora/tribunales/Anfi-Timesharing-Condenas-Justicia-Deudas_0_922158442.html

For those clients with cases yet to be heard or waiting for sentences to be issued this is very good news indeed as it will set a precedent and will lead to quicker payments as ordered.

Inside Timeshare will be watching this latest development very closely and will publish any further news when it comes in.

Friday’s Letter from America

Welcome to another edition of our Letter from America, this week Irene Parker writes about the upcoming Whistleblowers Summit & Film Festival. The term Whistleblower refers to someone who is making public information which they feel morally and ethically to be the right thing to do. It may be highlighting abuses of power by government, unfair working conditions by companies or even abuse of the elderly by care home providers. Whistleblowers are needed and should be thanked for what they do for the general good and not for profit.

The 8th Annual Whistleblower Summit & Film Festival

Washington D.C., July 29 – August 1

http://whistleblowersummit.com/summit_at_a_glance/

By Irene Parker

July 26, 2019

The 8th Annual Whistleblower Summit will be held July 29 through August 1 in Washington D.C. Attending the Summit last year was an eye-opener. I heard from like minds, unafraid to speak truth to power and hold the powerful accountable. This year I am honoured and grateful for the opportunity to participate as a panel participant in a Summit discussion called:

The Resilient Advocate – Elements Ethics and End Results

Panel members will discuss how resiliency skills helped them cope with stressful situations. Concepts surrounding resilience include mindfulness, meditation, gratitude and forgiveness of self and others.

I am listed as Irene Parker, Court Appointed Special Advocate (CASA)

I am not at present, an active CASA, but once a CASA, always a CASA at heart. I first became involved with CASA in Bowling Green, Kentucky in 2009 as a CASA volunteer. Later, I served as a paid CASA supervisor until 2012.

A CASA is a voice for a child in state care, a voice for the voiceless. A CASA’s duties include interviewing the child, the child’s biological parents, foster parents, and others involved in the child’s life. The CASA may not agree with the wishes of the child but assures the child that the court will hear what outcome the child wishes. As supervisor of 27 CASA volunteers, I edited volunteer court reports and wrote court reports for cases unassigned.  

In Florida where I live now, the program is called Guardian Ad Litum.

Skills learned at CASA provided me with the foundation to assist victims of timeshare fraud – timeshare members who wish to voice their concern about unfair and deceptive timeshare sales practices.

As in the case of any family in crisis, explanations are usually confusing and convoluted. I liken it to a witness describing what happened after a serious auto accident. When contacted by a timeshare member, I frequently ask, “What do you mean by that?” or “Can you provide an example?”

I have heard from over 900 families reporting unfair and deceptive timeshare sales practices, including 116 veterans and active duty service members. An active duty service member can lose his or her security clearances, and their career, over a timeshare foreclosure. More than a few families have been financially devastated, including a Navy veteran and retired postal worker forced to seek bankruptcy protection after being up-sold to $2,700 a month in timeshare loan payments. 

The Resilient Advocate – Elements Ethics and End Results

The panel discussion will be led by the founder of Whistleblowers of America, Jacqueline Garrick, and a Department of Justice Whistleblower.

www.whistleblowersofamerica.org

A Navy veteran introduced me to Jackie after the veteran successfully resolved their timeshare dispute following our principles of self-advocacy. An obvious “bait and switch” left the veteran encumbered with a large loan. The purchase was presented as a way to reduce annual maintenance fees, but the opposite occurred. Knowing the veteran, and having received other complaints against the same sales agent, it was not difficult to know who to believe.  

Panel Discussion     

Resilience is the state of mind, body and spirit that allows a person to overcome adversity and experience growth. Therefore, the resiliency skills needed to overcome whistleblower retaliation.

  • There is no denying that whistleblowers face societal stigmas and negative responses for their disclosures
  •  These negative connotations have a psychological impact on ethical people who faced difficult decisions and took the high road to do the right thing
  • Most whistleblowers face years and years of retaliation, harassment and discrimination
  • They are at constant risk of losing financial stability, social status, and family security. Their physical and emotional health is impacted as a result.

Other panel participants include:

Maureen Elias, Deputy Director, Veterans Health Council of Vietnam Veterans

Richard Hill, MD, Retired Primary Care Physician

Ms. Heidi Weber, Associate Producer, Whistleblower on CBS

“Toxic Tactics” of Retaliation that have affected my family:

a.      Gaslighting – challenging the memories or ethics of the whistleblower –  making you question yourself

b.     Mobbing – getting others to conspire against or spy on the whistleblower

c.      Accusing – refocus on the whistleblower as the wrongdoer

d.     Harassment and (in my case a threat of) violence

e.      Emotional abuse, humiliation

f.       Legal and financial challenges 

What advice would I give to others thinking about blowing the whistle?

·        Understand the Pandora’s Box you are opening and the long-term implications to your family when opened

·        Recruit a team to aid in your efforts to ensure your efforts will continue if stifled or delayed due to the above mentioned retaliatory tactics

·         Recognize the extent of loss your family may experience as the result of “poking the bear” in an effort to right wrongs

While the timeshare lobby and political action committee ARDA and ARDA ROC recommends timeshare members contact their state Attorney General in regard to companies that provide exit services, I have suffered retaliation for encouraging timeshare buyers to contact an Attorney General if they feel they experienced unfair and deceptive timeshare practices. Timeshare sales agents are emboldened by the oral representation clause timeshare attorney Mike Finn described as “a license to lie” in a 2016 New York Times article written by Pulitzer winner Gretchen Morgenson.

The Timeshare Developer and Lobbyists Pot Calling the Kettle Black – There are unfair and deceptive practices on both ends of the timeshare transaction.

The rash of complaints and legal proceedings prompted the American Resort Development Association (ARDA) to issue a warning to consumers about these (exit) companies, encouraging owners who believe they have been unfairly taken advantage of or defrauded to contact their state Attorney General, local law enforcement or ARDA directly.

At least 200 complaints from timeshare members in our advocacy group have forwarded their complaint to ARDA and ARDA ROC. To my knowledge, all complaints have been ignored. The Board of Directors of ARDA ROC (Resort Owners Coalition) is staffed with timeshare executives.

(BBB) RECOMMENDATIONS FOR THE INDUSTRY

The link below is a timeshare report warning consumers to beware of unfair and deceptive trade practices prepared by the St. Louis BBB, with input from the Missouri Attorney General’s office.

RECOMMENDATIONS FOR GOVERNMENT

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

For more information about this study, to obtain a Business Profile or register a complaint, contact BBB. 

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

Research and report on scams and fraud using BBB Scam Tracker.

https://www.bbb.org/scamtracker/us/

If you’re in the area, even if not a whistleblower, you will experience one of the most enlightening and inspiring events of your lifetime if you can attend. I’m hoping our Supporters or our timeshare members in distress will consider attending.  

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

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Free at Last Facebook

https://www.facebook.com/groups/623703881470577/?ref=share

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

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

Inside Timeshare Facebook Group

https://www.facebook.com/groups/2213231165610648/

Thank you Irene we hope that you have a very informative time at the summit and we look forward to receiving your report on the proceedings.

Well that is it for this weekFriday is once again here and the weekend calls, have a great weekend and join us again next week.

The Tuesday Slot

Welcome to The Tuesday Slot with another look at some of the many complaints received by Inside Timeshare, this review has been written by Patty Boyak who as we all know has been staging many protests outside some of the resorts. One thing that will strike you the reader is the similarity in the complaints from people who have never met, yet we always hear the same thing “We are not responsible for what our sales agents say”!

Why we need Secret Timeshare Shoppers – Especially in Vegas

Timeshare Buyers Need to Record Las Vegas Timeshare Presentations

Seven Timeshare Complaints against the same sales agent  

 “The long term strategy is, if there are (exit) companies out there that really are legitimate, which we haven’t seen yet,” Flaskey said, “then they need to be regulated the same way our (timeshare) industry is regulated.”

                                                             Michael Flaskey, Diamond Resorts CEO

https://www.orlandosentinel.com/business/os-bz-timeshare-castle-diamond-20190719-3zvqhr46yjcnplwm33fyhgm3iy-story.html

In Nevada, hundreds of timeshare complaints have been dismissed with:

“You Signed a Contract.”

This is regulation?

July 23, 2019

By Patty Boyak, Diamond Platinum Complaint #28 out of 101 

Branden and Patty Boyak 

#2 of 7 Complaints

Jean Paul H, Principal Broker Nevada

This is our complaint sent to the Nevada Real Estate Division July 7, 2019.

A recording of Alaa C defrauding a 28 year old disabled veteran was provided to NRED over a year ago.

Sent To Hospitality, Michael Flaskey, CEO

Our purchases:  

  1. 19 December 2017  – Palm Canyon Resort, Palm Springs, CA
  2.  6 May 2018  – Cancun Resort, Las Vegas, NV Purchase price for 15,000 points:  $55,000 Down payment: $11,075 on a Barclay card Amount Financed: $151,079.65

Trevor W had previously sold us points in Palm Springs promising a maintenance fee relief program if we bought “member” instead of “owner” points. There is no such thing as “member” vs “owner” points.   

Several Diamond members were pitched this:

https://insidetimeshare.com/fridays-letter-from-america-59/

When we next met with Alaa C we were unaware that we had been deceived by Trevor because we had not attempted to sell points back at $.30 per point. We missed the window period Trevor explained – that we had to turn in points by November 30 and had to have 20% of our loan paid to be eligible for the maintenance fee buyback program. In no way would we have 20% of the loan paid in such a short time. The delay avoided the rescission period.  

On 06 May 2018, we went to Las Vegas Cancun Resort where we met Alaa C. C introduced himself as a Platinum Counselor.  Alaa said that as Platinum members we should be using our points at $0.20 each to pay maintenance fees and said there were NO restrictions on the amount of points we could redeem. We brought up that Trevor Wood in California had told us about the $.30 per point to pay maintenance fees, so why was this $.20 a point? C said it’s not $.30. 

Using his phone, he showed us rebate checks we could receive at $0.20 per point.  There were several checks in a row on his screenshot on his phone. We didn’t see the exact amounts, but we had asked about the legitimate rebate program because we were already aware of Diamond’s Travel Reimbursement program. This was not the reimbursement program we knew, C assured us.

C gave us his phone number and said he would be our Platinum counselor. We attempted to call him multiple times. He only called the day after we purchased to ask about incentives we had attended. He never returned calls after that.

C said that by purchasing 15,000 additional points, we would be able to redeem points at $0.20 per point.  C said we would have enough points to pay all our maintenance fees with 50,000 points and still have points to travel. The first time we attempted to use the point redemption program, we were told by Platinum customer service no such program existed.  

Reviewing our files, Alaa informed us that none of our previous contracts had been wrapped and that wrapping them into a single contract would stabilize maintenance fees. C told us the only way to wrap the contracts was by purchasing an additional 15,000 points and if we did, the maintenance fee increase would only go up by 4%, whereas if we had six contracts, the maintenance fees would be much higher, in the 10 to 12% range. This turned out to not be true. It would be highly unlikely for maintenance fees to go up by 10 to 12% just because there were six contracts instead of one. Fees have not decreased. In fact, we incurred an additional $2600 in maintenance after purchasing the additional points.

Patty and Brandon Boyak and another Platinum couple protesting in Las Vegas.  It would be unusual for educated professionals to go to this much trouble over buyer’s remorse.

It is common for Platinum members to have made several prior purchases. Trust ensues. If the member refuses to pay for a recent purchase, they risk walking away from all points purchased; the money spent exceeding $200,000 or more. A 180-page report summarizes 101 Platinum up-sells. The similarities are glaring.   

Alaa C complaint #1 is a 90% disabled Army veteran. He recorded the second hour of a five-hour sales presentation because C refused for an hour to return their credit card and driver’s licenses. Alaa told them that because they did not get “the letter” from Apollo they were not grandfathered in so would have to buy additional points or pay $250,000 in maintenance fees over 10 years. Member complaints frequently begin, “They said we should have received a letter.”

Alaa C complaint #3 A Y, age 79 Platinum complaint #72 out of 101

Mrs. Y’s first language is Cantonese. Her husband, age 80, is diagnosed Alzheimer’s. Typically, Diamond points sell for $4 per point. Buyers are shown a price listing points at $9 and a warning the price will appreciate in the subsequent year. Buyers are not told Diamond points are worthless on the secondary market. Mrs. Y did not know the total amount they spent to buy 80,000 points, but at $4 per points an estimated price would be around $360,000.  Platinum 52,000 points

October 10, 2018, Nevada

In 2018 October we attended a meeting in Las Vegas and met with sales agent Alaa C. We agreed to buy 100,000 points more but ended up buying 90,000 additional points. Alaa C said that if we purchased these points, we could use 50,000 to pay maintenance fees by redeeming points and still have 50,000 to travel. We turned it down. The manager Maher F said we don’t need 100,000 points, maybe 80,000 points.

They said we could trade in points for $15,000 every year. They said you turn in January and it would take 30 days to process. Both Alaa C and Maher F told us this. They said only Diamond has this program.

Alaa C Complaint #4  

An attorney contacted us and asked if we knew of Alaa  C as he has received a complaint against him. 

Alaa C #5 B W, age 57, Platinum complaint #86 out of 101

May 23, 2019

The maintenance fees after 2014 escalated. In California, they kept saying they were going to go public. They told me our kids would have to inherit the points unless I bought additional points. They said, “Your kids won’t be able to have a choice whether to keep it or not if you don’t buy additional points.”

I met with Alaa C June of 2018. He told me everything that happened in CA wasn’t true. In order to give me what I was already supposed to have, I was told I needed to buy 25,000 additional points. I asked C if I could record. He said no.  C told us about a program to pay maintenance fees. If you book through travel services you could get $.30 per point toward maintenance fees. I took a picture of his picture pitch.

Alaa C #6 complaint, age 73, (resolved) Platinum complaint #85 out of 101

Al C sold me 25,000 additional Diamond Hawaii points March 2019 for $90,750.

C said at this new Platinum Legacy level, there would be an option for “travel cash” which I could use to pay maintenance fees.  He even showed me how to calculate it. He said if I bought these points I would be at the highest level and there would be no reason to buy any additional points in the future. However, at my next presentation at the Palm Canyon Resort in California April 26, 2019, Trevor told me I needed to buy additional points.  

At the Palm Canyon April 26 presentation, Trevor told me that there is no such thing as travel cash. I WOULD NOT HAVE BOUGHT THE LAST PURCHASE FROM C IF THIS TRAVEL CASH TO PAY MAINTENANCE FEES HAD NOT BEEN SOLD TO ME as a way to offset maintenance fees. C had multiplied the number of points x 30 cents to illustrate how to pay for maintenance fees.

Trevor showed me a graph of maintenance fees showing maintenance fees increasing. Trevor had said that the way my contract with Al had been written, my maintenance fees were at the higher rate of increase. Al had said my maintenance fees would be at the lower rate of increase. Al did not provide me with a “summary of maintenance fees.” Diamond’s CLARITY promise, which promotes clear, concise, accountable and transparent information says, “You will receive a summary of maintenance fees.”

Al also said I needed to buy additional Hawaii points so that my heirs would not be responsible for maintenance fees. I have learned heirs would not be responsible.

Trevor told me I would need to purchase 75,000 additional points for an additional $125,000 to take care of the mess Al created.  Trevor and Brad also stated that Al sold me 7000 more points than I needed to be platinum.

Al said to put part of the down payment on my own credit union mastercard. If I called the next day he would switch the money to my Barclaycard so that I would have a 0% interest for 6 months.  He put his cell number in my phone. I called him the next day with the required information. Al never responded to my next texts.

Since the meeting on April 28, I go to bed every night worried about my fees, wake up in the middle of the night and think about what to do, and wake up in the morning thinking about fees. This is making me ill. 

Yes, I met with the QA representative, and he may have witnessed Al telling me what to put on the why-did-you-make-a-purchase-today sheet in Cancun. Yes, I bought to have platinum status, but only because I was told this included travel cash, lowest maintenance rates, and the right of my heirs to refuse the points. 

#7 “Al” complaint Leo Gomez, deceased at age 71

Army, Vietnam veteran Agent Orange 100% disabled

September 10, 2018

To: Hospitality

Michael Flaskey, CEO

ARDA

Barclays President’s office

Association of Vacation Owners

We only bought points because we were told ILX went bankrupt.  In March of 2017, I was diagnosed with pancreatic cancer, stage 4.  In September 2018 I was told there was nothing that could be done. I have been given a few weeks to a month to live. I have been approved for Hospice.

We only owed about $6,000 on the loan before Al said we had to convert our PVC points to US Collection. The presentation was exhausting, over four hours. Al knew I had pancreatic cancer and was exhausted because of that. ILX 15 years ago $17,500 was the purchase price 

I have learned it was not necessary to convert our PVC points. They said our maintenance fees were $2,200 for 2018 and would go up to $3,000 January 1, 2019, if we did not convert. They said at Silver the maintenance fees will not go up. Especially under the circumstances, we are upset that we were lied to. We bought 15,000 U.S. Collection points July 16, 2018, at Cancun converting PVC points to U.S. points purchased for $33,000. Amount financed: $28,000.

Leo Gomez

Leo’s last words to us, “I want my story told.” 

https://www.opednews.com/articles/A-Fourth-Agent-Orange-Vete-by-Irene-Parker-Fraud-180917-513.html

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

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Free at Last Facebook

https://www.facebook.com/groups/623703881470577/?ref=share

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

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

Inside Timeshare Facebook Group

https://www.facebook.com/groups/2213231165610648/

Thank you Patty for your time and effort and we hope that your next round of protests goes well. We are also very sorry to hear that your own complaint was turned down. We have with your kind permission attached a PDF of the letter you received from the Nevada Real Estate Division.

That is all for today, if you have any comments, views or just need any information please use our contact page and get in touch.

Anfi Partner IFA Group Holds AGM

On Thursday 18 July 2019 in Duisburg Germany the Annual General Meeting of the IFA Group, which is a publicly owned company and listed on the stock exchange was held. IFA Group which also includes since 2016 via IFA Canarias SL and Anfi Invest AS owns a 50% stake in the Anfi Group which they purchased from the Lyng family for 41.3 million Euros in September 2016.

After a capital increase which is intended along with other things to acquire the remaining 50% share of Anfi, the company has a balance sheet totalling 467 million Euros, it is also now 76% owned by Lopesan Touristik SA of Las Palmas de Gran Canaria. The operating results after adjustment were only €7.4 million before tax due to various special items. With a positive contribution by IFA Canarias SL of €3.8 million including Anfi with € 2.4 million.

Anfi Gran Canaria

Although Anfi is jointly owned with a 50/50 split between IFA and the Cazorla Group, IFA actually has no say in the company as Cazorla has the “Golden Share”. Giving them total control, this is how it looks:

Grupo Santana Cazorla SL has a double vote on all the key decisions, with IFA only having 33% of the voting rights on these decisions. After the acquisition of the Lyng share, it became apparent that IFA is unable to actively participate in any financial and business policy decisions due to company-contractual agreements. Grupo Sanatana Cazorla SL, in fact, excludes IFA any participation in all business decisions, even important business meetings are held and conducted without IFA. But even so, IFA was able to acquire the balance sheets of the Anfi Group.

IFA has basically confirmed that it is being kept more or less in the dark and have no idea what is going on inside Anfi. This does look like Anfi is holding back very important information regarding their position from its own shareholders, this is definitely no way for a company to operate.

During the Annual General Meeting in Duisberg, the most interesting part was the questions and answer sessions. Unfortunately, these are not required to be published unlike the report of the AGM which should be published in around 1 month.

Due to the presence of Anfi insiders (including Inside Timeshares source), the IFA board was totally overwhelmed with questions concerning almost all the problems of Anfi. There was nothing left out and of particular importance were the questions regarding the solvency and the wave of complaints. Our source has limited these to only a few concrete statements:

  1. By 31 December 2018 there were around 1,000 complaints at court;
  2. The complaints would only lead to a deferred resale of withdrawn weeks;
  3. In all cases Anfi claims it looks for agreement out of court;
  4. Anfi has formed a €15.5 million risk reserve for that eventuality, (does this mean that IFA also has to contribute the same amount?);
  5. IFA sees Anfi as solvent with some bearable risk;
  6. A full takeover of Anfi is planned within the next 5 years:
  7. There are also negotiations with the Mogan Community about a hotel in Tauro;

What we also know about this “partnership” is that IFA claims they were not aware of the “Cazorla Golden Share” until after they purchased the 50% from Ragnar Lyng. It was also confirmed by IFA that they have very limited access to the running of the business and information. This poses a very important question, as IFA is a multinational public company spending millions on this purchase, is it conceivable that they did not perform due diligence before committing to the purchase?

It has also transpired that IFA was also unaware of an article published in La Provincia in March 2019 that Anfi was employing delaying tactics with payouts ordered by the courts. Inside Timeshare found out after consulting CLA that there is €57,800,000 worth of claims. This now begs the question if IFA matches the 15.5 million set aside by Anfi bringing the total to €31 million, who will cover the rather large shortfall?

One thing is for sure, IFA is a very valuable company, they have recently spent $481 million on their new resort in the Dominican Republic, The Lopesan Costa Bávaro Resort, Spa & Casino which is a luxury 5-star hotel.


Costa Bávaro Resort, Spa & Casino Dominican Republic

So even with the Cazorla’s transferring funds between accounts to delay court-ordered payouts, IFA is in a very good position to cover these costs. For claimants this means only one thing, claim payouts will be 100% guaranteed.

It must also be pointed out that the number and value of claims set for the court is only the tip of the iceberg, this may yet rise significantly, especially with Anfi attempting to force members into new contracts. We have already seen two attempts with very little response from the membership.

There are many other questions which need answering but the one that comes up though enquiries to Inside Timeshare most often is if IFA does take full control of Anfi, where does this leave the members, will IFA continue with the “timeshare model”?

The answer that question still eludes everyone.

The one thing that is certain with the IFA revelations and this is great news for clients of CLA with cases in court is that they will now get paid when the court orders the return of their money.

Link to La Provincia article on Anfi delaying tactics.

https://www.laprovincia.es/economia/2019/07/13/grupo-lopesan-inaugura-primer-hotel/1192941.html

Link to IFA stock market information.

https://www.finanzen.net/aktien/ifa_hoteltouristik-aktie

Friday’s Letter from America

Welcome to this week’s Letter from America, today Patty Boyak who has been attending court on behalf of Inside Timeshare reports on the verdict in the trial between Candace Czarny and Hyatt for unfair dismissal. Unfortunately, it is not the result that we had all hoped for. We then go on to report on seven more complaints against a Diamond Resorts sales agent in Las Vegas and five against another Diamond sales agent in California. These complaints are becoming all too frequent with Inside Timeshare receiving them almost on a daily basis, yet the timeshare companies do nothing and continue to allow their sales agents to behave in this despicable manner.

Now on with Patty’s report.

Former Hyatt Timeshare Sales Executive Candace Czarny v Hyatt Residential Marketing Corporation and Kent and Allison R. Drysdale

CASE NO.  CV2013-006230

Jury Trial Verdict

Seven complaints against our Diamond Resorts Las Vegas sales agent and five complaints against our California agent 

By Patty Boyak

July 19, 2019

In the trial of Candace Czarny v Hyatt and Kent and Allison Drysdale, the jury ruled in favour of Hyatt. While the verdict was a profound disappointment for Candace, when God closes one door he often opens another.

In 1991 Anita Hill got dragged through the muck of Senate hearings after accusing U.S. Supreme Court nominee Clarence Thomas of sexual harassment. She didn’t want to go public, but knew in her heart she needed to speak out about actions she felt were inappropriate for a Supreme Court justice nominee. A movie was made about her humiliating ordeal. At the end of the movie, the wrap-up listed the positive consequences because of her efforts. Nationwide revisions to antiquated sexual harassment policies and procedures ensued.

To be honest, having listened to a week of testimony, I felt Candace had at best a 50/50 chance. She had only worked in the timeshare industry for 17 months. However, Candace scored a major victory in court for timeshare members, assisted by other witnesses, and Hyatt’s attorneys provided landmark evidence or lack of:

THERE IS NO LETTER!  

The reason this is so important is that so many timeshare complaints begin with, “They said I should have gotten a letter.” This statement is reported by many Diamond members, including a disabled veteran who caught deception on a recording. Understandably, his dispute was quickly resolved. We experienced the same agent but were told another member’s complaints had no bearing on our complaint.

If you listen to the recording, most would conclude this agent should have been fired. Instead, he introduced himself to us a year later as a Platinum Counselor, and just a few weeks ago, our group received complaint #7 against this agent.

Defendant Kent Drysdale was Hyatt’s Director of Training, but some of the deceptive practices described in Candace’s lawsuit (like the letter), were the same practices members complained about during the Arizona Attorney General’s investigation of Diamond Resorts in 2016. Mr Drysdale was the Director of Training for Diamond prior to being recruited by Hyatt. Arizona Attorney General Mark Brnovich issued an Assurance of Discontinuance against Diamond Resorts after the AG’s office received hundreds of complaints from Diamond members.

A “deceptive price freeze” demands the member buy points the same day or loose special pricing. In the case of the veteran who recorded our Diamond sales agent, not only had the veteran repeatedly asked for his driver’s license and credit card back over two hours of a five hour ordeal, he was told that because he “didn’t get the letter” he was not grandfathered in for a special price after Apollo Global Management had acquired Diamond. Alaa stated this meant they would have to pay enormous maintenance fees over the next ten years unless they purchased additional points. As this dispute quickly resolved, we will not identify the buyers or link the article published about their dispute.  

Thank you, Candace!  

Those of us whose families have been harmed by timeshare sales agents, now have proof of deceptive and unfair practices because Hyatt’s attorney could not produce the letter. One of the members of the jury had asked where it was. There were 200 exhibits. Two letters hastily produced at trial, but neither had anything to do with a prior letter the member was supposed to have received.    

I would like to share our Diamond Resorts experience so consumers may understand how the decked is stacked against the consumer. Of the 913 complaints our advocacy group has received, 115 are veterans and active duty service members. My husband is a Navy veteran.

Our Timeshare Accountability Group™  members share experiences in an effort to expose timeshare sales agents that have had multiple complaints filed against them. Including the veteran and our family, a total of seven complaints have been received, directed against Las Vegas sales agent Alaa C, and five complaints against California agent Trevor W. We purchased from both agents!

I have asked Inside Timeshare to publish our complaint submitted to the California and Nevada Real Estate Divisions hoping to reach lawmakers who, in recent Arizona legislation, bent to the will of ARDA lobbyists. ARDA’s position is that a state should not take responsibility for those who did not bother to understand the product and Arizona Senator Michelle Ugenti-Rita was quoted, “These people are adults. There was a meeting of the minds and they signed a contract. They should take responsibility.”

I’d like for ARDA lobbyists and lawmakers to read five complaints against the California agent in today’s article, and the seven complaints against Nevada agent Alaa C (to be published next Tuesday) to understand the kinds of minds that meet.            

Five complaints against California Diamond sales agent Trevor W and Principal Broker Peter M

Trevor W complaint #1 A Senior in her mid-70s

Trevor W complaint #2 Brandon and Patty Boyak

Trevor W complaint #3 A Navy veteran

Trevor W complaint #4 Reported complaint but did not buy

Trevor W complaint #5 A senior age 75, resolved 

Trevor complaint #1 Platinum Member #80 of 101, age 75

April 10, 2019

My mother lost her entire retirement annuity of $350,000, plus maintenance fees are $20,000 so almost $400,000. She was switched back and forth five times over six transactions.  (Highlighted in red are agents Inside Timeshare received multiple complaints against):   

Everything was okay until May 2015 when Rick C transferred her points to the US from Hawaii, which cost $42,000. September 2015 she was switched back to HI by Paul M for $33,000. April 2016 HI points were switched back to the US at Mystic Dunes in Orlando, by Angelica S. In March 2017 she was switched back to HI by Ras for $38,000. November 2017 Palm Canyon Resort $80,000 bought points from Trevor W. October 2018 Billie B and Fred K transferred points back to the US telling her she would be able to pay maintenance fees costing $45,000. In Hawaii, one of the brokers said he has a broker who could help her rent points (which is not allowed for-profit) to get her money back and in the future, her points could be sold back to Diamond. 

She did not buy a second time March 2019 from Paul M. Paul said she should switch back to HI because there was going to be a huge Special Assessment in the US if she didn’t switch back to Hawaii for $63,000. She ended up with 100,000 US Collection points and $17,000 in annual maintenance fees

Trevor complaint #2 Platinum Member #28 of 191

July 6, 2019

Brandon and Patty Boyak

Our complaint is against CA Diamond Resorts sales Agent Trevor W.  

We purchased 17,500 points October 21, 2017, from Trevor at Palm Canyon Resort in Palm Springs, CA for $72,850.

Consumers need to know there is nothing to prevent timeshare fraud without a recording because proof is required. I spoke to attorneys to ask what constituents proof. I was told a pattern of complaints serves as a form of proof.  This is why we are gathering complaints.    

Peter M, Principal Broker California  

Trevor W said if we became Platinum “members” as opposed to “owners” we would be eligible for a program to sell points back to DRI at $0.30 per point. He explained this as a buyback program available only to Platinum members. We had never heard the term “member” before.  Trevor explained that by becoming a member we would lock in our maintenance fees, preventing them from increasing at alarming rates over the coming years. There is no such thing as member or owner points.

We never attempted to sell points back at $.30 because we missed the window period. Trevor explained that we had to turn in points by November 30 and we had to have 20% of our loan paid to be eligible for the maintenance fee buyback program. In no way would we have 20% of the loan paid in such a short time. This avoided the rescission period.  We were already aware of a travel discount program called 30/30. We did not know at the time only Platinum members can pay maintenance fees at $.04 per point, a worthless benefit because 50,000 points turned in at $.04 a point would cover only $2,000 towards an $8,631 maintenance fee bill (in 2018).

Trevor explained that as soon as a buyer makes an initial purchase of Diamond points, they become an owner.  Any new purchaser is considered an owner, but once we became Platinum we would become a Diamond member. He reminded us that we were considered “owners” because of our past Monarch affiliation.

We had five contracts prior to this meeting. This would finally give us true Platinum Member status with DRI.  The contracts were not wrapped.

Trevor Complaint #3 #78 of 101

A Navy veteran (retired), age 69

April 5, 2019

To: Michael Flaskey, CEO

Maria Kalber

ARDA

ARDA ROC

Barclay’s Bank

January 28, 2018

Points purchased: 1,500

We attended a presentation at a hotel on January 28, 2018.  Mr R. He said it would be better if we were to upgrade to Platinum because then we would be able to use our points to pay maintenance fees. I explained that we did not have the resources to upgrade. After several hours we agreed.

September 4, 2018, NV

Points purchased: 16,000

Sales Agent: Mr J Trevor W

Manager: Mr Matthew G

Purchase price: $48,000

September 4, 2018, we met with Trevor W. Mr W went over our account and stated that we were only a temporary platinum member and that we could not use our points towards maintenance fees.

I recall being told several times that if we were to upgrade to Platinum it would be an investment that we could pass to our children. He said if our children did not want the timeshare in the future they would be able to say that they did not want it or that they could sell points to pay maintenance fees.

Mr W asked us how we were able to purchase our existing points at such a low price because the price for points now was much higher.  He left to talk to his manager and came back stating that they would honour the low point price but if we waited the price would be substantially higher, somewhere in the range of 9 dollars and that they would increase soon in the future.  It was again mentioned that we would be able to use our points to pay maintenance fees by selling points. He said we would be able to sell our timeshare points outright in the future, but not at the present time.

Mr W said he would assist me in using Barclay Card points and Platinum exchanged points to pay maintenance fees. Mr W gave me his cell phone number and told me to call him towards the end of the year and he would assist me with the process.  Mr W never returned calls. After contacting customer service I found out that the point conversion was so small it would not make a dent in the liability. I did not find this out until I was billed for maintenance fees and attempted to pay the fees via points.   

 I have learned members are not required to attend presentations unless accepting a promotion. This also is deceptive to be told an update is required when it is not. Diamond points are worthless on resale. 

A senior, age 73, who did not buy from Trevor  

Trevor Complaint #4 Platinum member #85 out of 101

At Palm Canyon CA Trevor showed me a graph of maintenance fees showing maintenance fees increasing. Trevor had said that the way my contract with Al C had been written, my maintenance fees were at a higher rate of increase. Al had told me my maintenance fees would be at the lower rate of increase, but Trevor explained that because of how C wrote the contract I was at the higher level because C wrote the contract as an owner contract and not a member contract. He explained that there is a difference between members and owners in terms of how much you pay in maintenance fees. However, I bought non-deeded Diamond points from Al, so what he sold me was a membership. He said C made more money selling owner points.

Trevor waived the maintenance fee graph in front of me and said, “I know you are telling me the truth because there would be a signature acknowledging receipt in your file”. I asked Trevor for a copy of the contract history he was reviewing, but he said he could not give this to me. Trevor said the only way to fix the problem C caused was to buy more points for $125,000. Had I believed Trevor’s nonsense about buying ownership and not membership points, I would have been driven deeper into debt. I would be another Platinum member-driven into foreclosure.

Trevor also presented the misrepresentation about heirs saying that my heirs would be responsible if I did not buy an additional 75,000 points for $125,000.

Trevor, and a second agent, Brad G, said I could get out of the owner status and go to “member status” if I made the purchase.  Trevor assured me if I bought the points, I would then have the lowest maintenance fees. He told me I would need to do this to take care of the mess C had created.

Trevor and Brad acknowledged that “middle easterners at Cancun” in Las Vegas often made these mistakes. They thought Al was one who had put another person in a bad situation, but they would call Mike B to see if they could help me. Trevor agreed that Al had sold me a bait and switch.  Trevor and Brad also stated that Al had sold me 7000 more points than I needed to reach platinum status.

In the end, I did not feel that I could trust Trevor. I asked Trevor for a copy of his proposal that he had written down so I could talk to my financial advisor. He would not give it to me. I said I had to talk to my family because they had been waiting for hours. My friend and daughter-in-law returned with me and said that I was not going to sign anything. Trevor got nasty and said, “I resent you coming in here at the last minute giving advice.”

I also was told that unless I bought the new points from Trevor I could not sell my points.  If I did buy the points from them, Diamond would give me a list of members to whom I may sell. Diamond points are worthless on resale.

Besides ruining my afternoon with my family for my grandson’s birthday, I was a mental wreck.  When I returned, I told the two men that I didn’t have enough funds to make the purchase. I asked for more time so I could talk to my financial advisor who was not available by phone.  Trevor denied that request. He said I had to sign right then. He said if I signed I had 7 days in CA to cancel the contract. 

Trevor Complaint #5

A senior, age 70, Diamond Platinum member #90 of 101

June 5, 2019

To Michael Flaskey, CEO

Hospitality

Barclay’s President’s office

ARDA ROC

California Real Estate Division

Peter M

Trevor W

On 4/22/19 in Palm Desert, I went to an “Owner Update” with Platinum specialist Trevor W.  I had previously been assured that since I already owned 90,500 points, I was well in excess of the 50,000 points needed to be Platinum. I am 70 years old and have no children. The timespan and need for points are limited. Trevor launched into an explanation of why I had to buy additional “membership” points because the prior Hawaii sales agent had fraudulently, or at least mistakenly, sold me “owner” points due to inadequate training.  

I explained to Platinum specialist Trevor W that my only goal was to find a way to SELL my points, and also to make absolutely sure that Diamond could NOT attach my estate because my heirs did not want the points. 

Trevor explained that my points were essentially worthless, that there was no market for them because of the type of ownership category I held. He explained that the points that I owned, on the secondary market, would have none of the myriads of benefits like travel reimbursement for air and hotel, or access to other features. The buyer could only access specific Diamond-owned properties. 

The Hawaii sales agent said that Hawaii points were the premium to own and in huge demand by buyers. They explained that Hawaii points have a limited supply, so I could use them and then easily sell them. In fact, they said Diamond itself would likely buy them back because they were running out of property in the tight Maui market. 

Trevor pretended to be disappointed that I was sold a pack of lies, and implied that the Diamond rep knew the Hawaii points had no resale value. He said the rep should have disclosed this fact about worthless “ownership” points, worthless even when sold in Hawaii. I was really discouraged. Trevor posed as my friend, sorry to have to explain this to me.

Trevor offered a solution. Apollo owned Diamond, and Apollo was going public in the next couple of months. He said Apollo wanted Diamond to be clean as a whistle to have a stellar rating and reputation. Many owners had complained about not being able to resell, so Apollo had created a new class of ownership called “membership” which entitles a future buyer to all the Platinum benefits of my points. The maintenance fees for “owners” were going to skyrocket, compounding every year. He showed me a horrifying chart showing maintenance fees growing to a million dollars in aggregate over 20 years.  But the “membership” category would be capped. This would result in huge savings over time.

Trevor said the terms of the public offering SEC filing by Apollo mandated that points had to be sold at a base rate of slightly over $11/point. No more bargaining. Trevor said there were scores of Platinum buyers clamouring to buy points, as they would not want to pay the new rate, creating a hot market to sell points to those who had previously purchased “ownership” points like I had been mistakenly sold. Trevor said he would give me a list of buyers with their emails once Apollo went public. Of course, it would be up to me to make a private party agreement.  We had an elaborate discussion about what my average cost per point would be – about $4.50. 

Trevor said he had recently purchased points, knowing he could sell them back at a profit. Being leery, I said I wanted to see his purchase contract, which he said was at home, so on speakerphone, he called his wife to ask her to fax it.  She answered, such a sweet voice, and said she was at the market, but would send it as soon as she got home. So we took a break, as we’d been talking for hours. The break stretched to an hour. When we reconvened Trevor showed me his purchase contract. It must have taken an hour to make the mock purchase contract, backdate it, and have it faxed.

The hook was lowered.  I would be required to buy 25,000 points at $112,500 in order for Diamond to convert all my “ownership” points to “membership” points.  I was shocked at the dollar amount. It was like betting on the come, but it seemed the only way out. In about 2 months, Apollo would go public and Trevor would give me a list of eager existing Platinum owner-buyers. As I stalled, exhausted and discouraged, Sales Manager, Bradley reassured me.

I signed the purchase contract with misgivings, and explained to the contract/quality control guy (who said he was there to protect me from any misleading sales practices), that I was forced to buy points in order to be able to sell points in the near future and at least break even.  He didn’t blink an eye, which was reassuring. 

During this process, a loved one was rapidly sinking into dementia/Alzheimer.  

Members and current and former timeshare sales agents like Candace can help by joining forces with others seeking to reform timeshare. Sign this petition for reform to let your voice be heard, and join one of these self-help groups.

https://www.change.org/p/state-legislators-in-arizona-florida-and-nevada-demand-reform-of-the-timeshare-industry-s-unfair-and-deceptive-practices

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

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Free at Last Facebook

https://www.facebook.com/groups/623703881470577/?ref=share

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

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

Inside Timeshare Facebook Group

https://www.facebook.com/groups/2213231165610648/

Once again thank you Patty for taking the time to attend the trial and submitting your report, itjust unfortunate that it was not the result that Inside Timeshare and our readers had hoped for. We must also give Candace a very big thank you for having the courage to take on the big boys, we all hope that you will now move on and rebuild your life.

If you have any comments or views on this or any other article published, please do use our contact page and let us know.

That is it for this week, have a great weekend and join us again next week.

Latest News: Excel Overseas Holdings Ltd Provisional Liquidation

Today Inside Timeshare has received a copy of an email sent by Kola Advisors and signed by Barry Lynch on behalf of Alex Lawson and Paul Pretlove of Alvarez and Marsal who are the appointed as Joint Provisional Liquidators of EOHL. This letter was apparently sent to “Investors” of the Excel Lodgings Participation Program or ELPP. In his letter, Barry Lynch explains what is happening and it does not look as though this is going to be a quick or simple process.

Alex Lawson and Paul Pretlove

Lynch begins first explains that the company EOHL (Excel Overseas Holdings Ltd) was placed into provisional liquidation on 26 March 2019, this a was put before the High Court of Justice of the British Virgin Islands (Commercial Division). He explains that the application has been brought by a company called Landcastle Holdings Ltd, which as it turns out is a majority shareholder of EOHL.

Lynch then report on the hearing of 13 May 2018 before the BVI Court in order to bring the application to a final hearing. At this hearing, Landcastle Holdings argued that the application should be dealt with in the same way as other similar applications. They were seeking the appointment of liquidators for the benefit of creditors and hoped that the final hearing would be held within 6 to 8 weeks.

This was opposed by another company called Landcastle Capital Ltd who are registered as minority shareholders of EOHL.

Although these two companies have similar names they are in fact separate entities independent of each other and separately owned and managed.

Landcastle Capital is owned by a gentleman in New York who is attempting to block the liquidations.Landcastle Holdings working on information they have available are of the view that this individual is primarily responsible for the issues facing EOHL. This also includes all the problems now facing those “Investors” of the ELPP.

So what do we deduce from this?

It looks like that this is a dispute between the shareholders of EHOL, this means that both parties should be required to lodge their pleadings in full detail on their respective positions of the dispute.

The BVI Court ordered that pleading did need to be filed in the application so they may determine the claim.

Landcastle Holdings filed and served their statement of the claim on 21 June 2019, Landcastle Capitol has until 19 July (tomorrow) to file and serve their defence.

High Court BVI

With the BVI Court’s decision the application will not be a speedy one as was initially hoped, it is believed that the application is not going to be heard until late 2020 or even early in 2021.

The Joint Provisional Liquidators have now taken control of companies which are below EOHL within the corporate group, they are believed to be taking steps to protect and maintain the value of all the assets. Lynch states that the JPL’s “are working diligently to ensure the best possible outcome for EOHL creditors, principally being the ELPP Investment investors”.

Apparently, Landcastle Holdings is continuing to seek the appointment of liquidators to EOHL.

If any of the assets of EHOL be realised then any money collected from those assets will be held in the estate of EHOL purely for the benefit of creditors and to cover any ongoing costs. This will also include costs for the provisional liquidation and any future liquidation. It is not yet know how the distribution to creditors will pan out.

Lynch ends his letter with “the JPL’s will continue to take all necessary steps to protect and maintain the value of EHOL assets. They will also continue to provide creditors with updates on any relevant developments”.

This along with all the other articles Inside Timeshare has published on the tangled web of companies of which Silverpoint is part of, is going to be a very long-running and complicated story. It is one that Inside Timeshare will be following very very closely, so watch this space.

Latest News: The Paramount – Club Paradiso

Over the past few weeks Inside Timeshare has been running a series of articles regarding the troubles around Silverpoint and associated companies. We began with a series of articles in six parts on the truth behind Silverpoint this can be found in the link below. As a result, Inside Timeshare has been receiving many enquiries on this but also many many more from members who have been told their bookings will not be honoured.

https://insidetimeshare.com/?s=exclusive+breaking+news

Our readers have also been sending letters to Inside Timeshare from Excel Hotels & Resorts SA and also from Club Paradiso Ltd outlining their reasons behind all of this. We begin first with the letter one reader was given by Excel while actually on holiday.

In this letter which can be read in full on the link below, explains that on 13 September 2018, Excel Hotels & Resorts SA, had terminated the product marketing agreement with Signallia Marketing Distribution SA, formerly known as Silverpoint Vacation Solutions SA.

The result is that any member who has booked through Signallia to stay at any of the resorts managed by Excel has after that date will not be honoured. They do however say that they did honour some of the bookings to “prevent disruption” being caused to members.

It also transpires that Signallia continued to market the products even after the termination of the agreement without the consent of Excel. Therefore none of these reservations will be honoured at any of the resorts.

The letter also goes on to say that Excel never received any payments collected by Excel and that they are not liable for any sums paid. Now considering that all these companies are interlinked via the parent company which was owned by the late Bob Trotta does make this look very suspicious indeed.

The letter which is unsigned but carries the Excel stamp ends with Excel informing clients that they are informing the relevant police authority, in other words, they are denouncing one of their own companies!

PDF of the full letter

Several other readers have also sent us a letter amounting to 4 pages, with the last 2 being Frequently Asked Questions, from Club Paradiso Ltd another British Virgin Islands company and signed by Alex Lawson who we know is working on behalf of the Trotta family with his company Alvarez & Marsal to liquidate assets to save the Trotta family fortune. (See the link at the start)

The letter dated 12 July 2019 begins with advising members that on 14 May 2019 he was appointed as a director of the company, with the former sole director resigning with effect from 30 May 2019. This now makes Lawson the sole director of Club Paradiso Ltd.

He explains that since his appointment it has become apparent that Club Paradiso is facing a “number of significant issues”, we know and so do all the members who are contacting Inside Timeshare!

He goes on to complain that not all the company’s books, records and documents have been made available to him, it appears that he is unable to do his job because of this. Now the question is what actually is his job?

We know he has been appointed “administrator” of several other Trotta companies including Keys Concierge which we know has also closed down. He is also the administrator dealing with the liquidations of two BVI companies, Limora Investments Ltd the parent company to all the others and also Excel Overseas Holdings Ltd. We also know that a new company by the name of Excel Overseas Holdings is based in Dubai. So we can assume that his job is either to revamp the “Club” or “liquidate it”, we actually believe it is the latter given what his company does.

This letter also goes on to explain under previous management Club Paradiso failed to pay for the contractual agreements and arrangements with other service providers and resorts. Now we also know that all these “service Providers” and “resorts are all part of the same group of companies owned by the Trotta family under Limora Investments Ltd.

Again we see another tangled web of intrigue and dodgy dealings which is resulting in nothing but stress and anguish for the consumers who have paid considerable sums for these products. We know from our readers that they are all worried they are about to lose everything, not just the holidays not being honoured but now having to pay for new bookings after they have already paid their annual maintenance fees!

To Inside Timeshare, this does not seem to be fair, most of these members have initially paid thousands of pounds to purchase the product and also thousands in annual maintenance fees. Now it does not take a lot of working out, but these companies have made millions over the years and this is how they treat their clients. SHAME ON YOU!

The letter from Alex Lawson

Have you purchased any product from Silverpoint, Signallia Marketing or any other company and are worried about all that is going on, then use our contact page and let us know. We will explain what your legal options are and point you in the right direction to get the legal help you need.

Remember, the courts are finding in favour of the clients on all cases going to court, this may be the only way not to lose what you have “invested” in your holidays.

The Tuesday Slot

Welcome to this weeks Tuesday Slot, today Patty Boyak reports on the trial highlighted in Friday’s Letter from America on 5 July between Candace Czarny and Hyatt. The case centres around the wrongful termination of Candace after being forced to use “unfair and deceptive sales practices”.  Branded a whistleblower she found it difficult to find new employment, but she has worked hard to rebuild her life and Inside Timeshare is proud to share her story, after all, that is what these pages are about, to give you the reader a glimpse into the world of timeshare and all that is dirty about it.

Part II Continuation of Whistleblower Wrongful Termination Trial

Candace Czarny v Hyatt and Kent and Allison Drysdale

Part I: The Trial

CASE NO.  CV2013-006230

https://insidetimeshare.com/fridays-letter-from-america-57/

By Patty Boyak

July 16, 2019

I learned a lot this week attending the jury trial of Candace Czarny v Hyatt and Kent and Allison Drysdale that began last week in Maricopa County, Arizona, Superior Court. An Arizona resident myself, I took this opportunity to observe the trial proceedings to better understand the inner workings of timeshare today.    

Candace worked for Hyatt in Sedona, Arizona from November 2011 to June of 2012. She previously worked at Diamond Resorts but left Diamond concerned about what she considered to be questionable business practices. Hired by Hyatt to sell timeshare, Candace alleges in her lawsuit that she was forced to employ unfair and deceptive sales practices or face termination. Hyatt did terminate Candace.

Sedona is a small town, so Candace had difficulty finding work after her termination. She moved to Phoenix. Candace had lived in Sedona for 25 years.

Hyatt’s attorney, Mr Kraig J. Marton, challenged the reasons why Candace had remained unemployed since her termination, insinuating that Candace had not tried very hard to get a job, even after moving to Phoenix.

I reached out to Candace outside of the trial. I had not attended Candace’s testimony in which she explained the difficulty she experienced when she sought employment. Candace said that potential employers were turned off because of her whistleblower stigma. Candace generated income from her rental property and worked on re-stablishing a business she had been involved with previously. She has been generating income from that business since 2017. Prior to that time, she had been paying off debt to re-establish her business.

Candace said in Phoenix, she has been living in a 10 x 10 rented room with a view of a block wall, after living in a beautiful home in Sedona with views of the Red Rocks. Candace said she mitigated her damages by scaling back, but she has not sat around idle since her termination.  

Mr Marton continued to examine Candace’s work history. Candace responded that the reason she did not apply for other timeshare positions is because she did not want to find herself put in another position in which she would be instructed to employ unfair and deceptive sales practices. She felt the obligation of anyone holding a real estate license is to uphold the principles of integrity that holders of a real estate license should abide by. 

Working under the conditions Candace described took an emotional toll. A witness for the Plaintiff, Jackie Garrick, who is an expert in Workplace Traumatic Stress and post-traumatic stress disorders (PTSD), described psychological abuse as a “serious injury” justifying a diagnosis of PTSD. Ms Garrick explained that PTSD can be experienced by anyone, not just soldiers who witness harm against others and suffer a moral injury because it violates their sense of ethics. She compared whistleblower retaliation to domestic abuse in which one spouse manipulates, humiliates, isolates, and bullies another spouse. Defence attorney Mr Marton tried to minimize PTSD as if it only related to combat stress, ignoring all research on emotional abuse and identity disruption.      

Candace’s attorney, Joshua Carden, next called Larry Stokes as a witness for Candace. Mr Stokes is an economist. He testified as to Candace’s loss of income. He calculated her annual wages as follows: 

Loss wages from 8/2012 to 7/2019

$449,186 in back pay

$168,709 in loss front pay

$54,756 in interest on back pay

Grand Total:  $672,651  

Former Hyatt Sales Executive Mark Schmidt, also a witness for the Plaintiff, testified on July 9. Mark had worked as a timeshare sales agent for 15 years. Candace and Mark’s employment overlapped for a period of about two months, prior to Candace’s termination. On cross-examination, Mr Schmidt was asked about his relationship with Candace. He stated they were friendly coworkers. They were asked about emails they had exchanged as to the possibility of an age discrimination lawsuit against Hyatt

Mr Schmidt had also been terminated from Hyatt for being a “bad fit” and for poor performance. Mr Schmidt responded that he had worked three tenures at Hyatt and generated $130,000 in sales the last six working days of a March month. An “eligible for re-hire” letter was placed in his personnel file. Mark said the reason for his short work tenures was because he would leave the company if a bad sales manager was hired and wait it out until the sales manager was fired or left the company.  

Like Candace, Mr Schmidt testified that he had been terminated because he refused to give false statements to potential buyers. He stated that Kent Drysdale in 2012 instructed agents to sell “First Day Incentives” that were deceptive. Agents would threaten potential buyers, telling them that if they did not buy that day, in the future they would have to purchase a two-week timeshare vs only a one-week timeshare. It was not true that buyers could not buy a one-week timeshare in the future.

What Letter?

One fraudulent practice was that Mr Drysdale trained his sales agents to tell existing Hyatt clients that there was a letter sent to the existing member advising them of an advantageous price, but the letter, in fact, did not exist. According to Mr Schmidt, Mr Drysdale instructed the agents to tell the existing member that they would check their file to see if the letter was there. One of the jurors asked if they could see the letter. Hyatt’s attorney seemed to scramble to produce the letter. What was produced, Mr Schmidt said, was a completely unrelated document. It was an Upgrade Document Declaration. This document was discredited because it pertained to the surrendering of points after a member upgraded. Mr Schmidt added that if the letter existed, Hyatt would have produced it during discovery. 

Oh boy, have I heard this “Did you get the letter?” before. I am a member of a 3,300 timeshare member-sponsored Facebook. Many complaints begin, “They said we should have gotten a letter!” If the letter is fictitious, this is unfair and deceptive.    

Mr Schmidt stated that Mr Drysdale used to be the Director of Training for Diamond Resorts. He brought up the Assurance of Discontinuance (AOD) and the $800,000 fine issued by Arizona Attorney General Mark Brnovich after their office received hundreds of complaints from Diamond members. Mr Drysdale had been employed by Diamond Resorts during the period in which the Arizona Attorney General’s office received so many complaints.

In addition to the Arizona complaints, I was aware of former Diamond top sales agent Mary Bowling’s allegations, describing how a deceptive price freeze was employed by Diamond sales agents in Hawaii:

Mary Bowling sued Diamond Resorts, not because of deceptive sales, but because she was terminated when no one else was. She applied for FMLA 2-12-16 and was terminated 2-15-16. 

Case 1:17-cv-00562-DKW-RLP filed in Hawaii District Court

Page 10 of complaint

#43 Owners Update is deceptive because it is to sell points.

#44 Customer is told the current “list price” but the agent has to see someone else.

#48 the sales agent has the customer sign a form indicating they were updated and the agent has to have the manager sign off.

#49 the sales manager has reviewed all prior customer contracts and the manager falsely states the customer was given a “price freeze” but none exists.

#50 because of the “price freeze” only today can the customer buy for the discounted price.

#51 the price given is the real price planned from the outset.

#52 the “price freeze” never existed because (a) The special deal available to this customer only is available to anyone and (b) Urgent to buy only for today

#54 this is lucky news for the customer – brand new information!

#55 the sales agent waits for the customer to “step in”

At one point, Candace had provided an example of an observed deceptive sale: “Say the property is $35,000, but the Director of Sales would say that there had been a default, so we got this new inventory we can get you for $29,500. However, $29,500 had been the intended price all along.” Mark Schmidt explained that the difference between a primary residence negotiation and timeshare, is anyone selling a primary residence doesn’t start with their bottom line price requirement, then issue threats and false consequences if the interested party doesn’t buy at the bottom price that day – or will not be able to buy the house the next day at the low price.

Mr Schmidt further testified that price sheet packages were manufactured by Mr Drysdale: a two weeks package and the standard one week package. Mr Schmidt stated that Mr Drysdale would change the prices at will.

Mr Schmidt was asked to describe Mr Drysdale as Director of Sales.  He said Mr Drysdale was aggressive and physical. He witnessed Mr Drysdale giving a body check to Joey, another sales agent. Mark stated he addressed his concerns with Human Resources regarding Kent’s behaviour that included CIA like intimidation tactics and deceptive practices. He said Mr Drysdale was enthusiastic about the practices and procedures described in the CIA Manual on Human Manipulation.

Next a witness for Hyatt, Theodore “Ted” was called. Ted was the former Director of Sales during Candace and Mark’s tenure. He had hired Candace and supervised Kent Drysdale. Ted said Candace had little sales experience but was hired anyway due to tough hiring times during the years 2010 to 2011. He described Candace as someone who didn’t want to listen and stated that her personality wasn’t “fun” or personable.  He claimed he tried to help her but concluded she was not “coachable” as she did not like to take his advice. He stated she had low performance. 

July 10

Candace returned to the witness stand. In earlier testimony, it was described how Hyatt employee Shelley instructed Candace to create a “First Visit Incentive” document. This document was reviewed by the potential buyer, but never given to a buyer.  

Candace testified that another agent, Scot Steward, did not have a real estate license on file, but was allowed to give tours and transact sales. Mr Steward had been hired by Shelley or Mr Drysdale. Candace took handwritten notes of observed sales and the line rotation, meaning who was up next to meet a potential client. Her notes showed that Mr Steward made a sale, but that Mr Drysdale had limited the number of tours Candace was given, a practice used against an agent who did not play by the rules. There are 3 types of tours: 1) An owner 2) Owns a timeshare other than Hyatt 3) Not a timeshare owner. Candace stated that AM tours always went to the agents on the top of the list (Top Selling Agents).

On Friday I will continue with what happened next. All in all, it was a fascinating experience, and I have a much better understanding of how easy it was to dupe our family. My husband and I experienced deceptive timeshare sales practices. We have joined forces with other timeshare buyers alarmed at the rise in such practices. Deceptive practices seem to be employed industry-wide by some sales agents and managers. That’s my opinion, but the only opinion that counts are the opinions of the nine members of the jury. Join a self-advocacy group if you would like to join our timeshare consumer protection efforts. 

Please sign our petition to reform timeshare:   

https://www.change.org/p/state-legislators-in-arizona-florida-and-nevada-demand-reform-of-the-timeshare-industry-s-unfair-and-deceptive-practices

Candace Czarny has joined our list of just a few of the recent Attorneys General investigations and lawsuits. We’re not making this up.

The NY Attorney General investigation into the Manhattan Club resulted in a $6.5 million settlement. https://www.amny.com/real-estate/the-manhattan-club-settlement-includes-6-5-million-in-restitution-ag-says-1.14048559

Colorado Attorney General sued Highlands Resort, Sedona Pines and twelve other defendants for deceptive trade practices. https://businessden.com/2016/12/07/ag-sues-timeshare-firm-for-deceptive-tactics/

Missourians sometimes are targeted by real estate developers and resort communities to buy vacation timeshares. https://ago.mo.gov/civil-division/consumer/consumer-topics/vacation-timeshares

Arizona Attorney General received hundreds of complaints against Diamond Resorts, fined the company $800,000 and issued an Assurance of Discontinuance. https://azag.gov/press-release/attorney-general-brnovich-announces-800000-settlement-diamond-resorts

Tennessee Attorney General announced a $3 million settlement with Festiva, a network of vacation and timeshare companies, for alleged violations of the federal Telemarketing Act, federal Telemarketing Sales Rule, and the Tennessee Consumer Protection Act. https://www.tn.gov/attorneygeneral/news/2016/2/24/pr16-04.html

Connecticut Attorney General George Jepsen says his office received 58 timeshare complaints in 2018, including concerns about pressure sales tactics, exorbitant fees, and difficulty reselling. https://www.nbcconnecticut.com/news/local/Timeshare-Troubles–What-To-Do-Before-You-Buy-and-Sell-504017151.html

A Florida Whistleblower lawsuit was filed on behalf of ten former Wyndham employees, including eight former sales agents. Plaintiffs allege that they objected to and refused to participate in illegal sales practices.  https://insidetimeshare.com/fridays-letter-from-america-42/

Former Wyndham sales agent Trish Williams, a jury awarded an initial $20 million. https://dolanlawfirm.com/2016/11/wyndham-timeshare-whistleblower-lawsuit/

Candace Czarny v Hyatt and Kent and Allison Drysdale – Former Hyatt timeshare Sales Executives alleged that they were instructed to make certain false statements and omit certain facts when communicating to Hyatt owners and potential clientele in order to make more sales. https://insidetimeshare.com/fridays-letter-from-america-57/

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

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Free at Last Facebook

https://www.facebook.com/groups/623703881470577/?ref=share

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

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

Inside Timeshare Facebook Group

https://www.facebook.com/groups/2213231165610648/

Thank you, Patty, for taking the time to attend the trial and prepare this very interesting report, I am sure that all our readers are rooting for Candace, it is time that justice was done.

If you have any views or comments you would like to share please use our contact page and get in touch.

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