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Friday’s Letter from America

Welcome to our Friday’s Letter from America, this week Irene Parker replaces the original article scheduled for today with her take on Are Timeshares Worth the Money in the Long Run by Women Who Money.

Latest news on the Nevada SB 348, the bill has been pulled possibly for a couple of weeks, this is due to the efforts of consumers. From our efforts 35 timeshare members posted comments, lets keep this going and increase that number to 350!

Unless timeshare buyers are given 24 hours to review a contract as ARDA is demanding from timeshare exit providers, we will continue to see consumers being pressured into purchasing there and then. As they say, what is good for the goose, is good for the Gander.

In the lawsuit against Marriott Vacation Club, a Florida Judge has sustained central claims in the class action against Marriott and their points based system. According to the article (see link below), “Consumer Deeds are invalid because they lack any cognizable legal description of a real property interest being conveyed as required by Florida law.”

https://www.nyrealestatelawblog.com/manhattan-litigation-blog/2019/april/florida-judge-sustains-central-claims-in-suit-ag/?fbclid=IwAR2wlVr8NIPBZj9Mcg8vVQI7_yHJvTHkIWTU4NdT9XEC8QANg0rfR9wmZrs#.XKZAISFvVH0.facebook

This is very similar to the reasons that points and floating weeks systems have been deemed illegal under Spanish timeshare law, they lack any substance, allowing only for the right of use, subject to availability.

Could this be the start of points based systems becoming illegal in the US, well we shall have to wait and see. Now for this weeks Letter from America.

Women Who Money

Are Timeshares Worth the Money in the Long Run?

What Timeshare Regulations?

By Irene Parker

April 5, 2019

I enjoyed reading “Are Timeshares Worth the Money in the Long Run?” published by Women Who Money.  I agree with the article’s major points, with the exception of the author’s comment about “regulations being in place to protect timeshare consumers.” Having heard from timeshare members how easy it is for a timeshare sales agent to dodge a contract rescission period, I wonder if there is any foolproof way to prevent being scammed. Some things, like actual availability, cannot be discerned by reading the contract. Also, my contract said, “You can sell your points. We will not assist you.” The part about no buyers was left out.  

House, Senate and Assembly Bills are flying across the country. On Tuesday we published a summary of proposed legislation and asked timeshare members to oppose Nevada Senate Bill 348, unless it can be amended to say timeshare buyers will be allowed 24 hours to review a contract, not just contracts with exit service providers.

There is no need to propose a bill requiring those who seek to buy a car be allowed 24 hours before signing a contract. Typically when buying a car, you shop, and a tag team of three against two doesn’t gang up on you for hours. We ask timeshare members to voice their opinion on NV SB 348 following the link in Tuesday’s article. Timeshare buyers should be at least offered 24 hours before signing a contract.

Timeshares are regulated by states. Since timeshare buyers typically buy a timeshare in a state other than their state of residence, lawmakers have little incentive to react to non-constituents. Lawmakers need to listen to those who bought a timeshare in their state, not just those who reside in their state. While some state Attorneys General seem to be on the side of the consumer, other states follow the mantra, “Verbal representations are hard to prove.”

I found the Woman Who Money article, “Are Timeshares Worth the Money in the Long Run?” on Lisa Ann Schreier’s Timeshare Crusader blog. Having worked in the industry for years, Lisa’s knowledge brings a lot to the table.

From Women Who Money   

Regulations now exist to help protect consumers from high-pressure sales tactics. If you buy a timeshare and quickly regret it, you may have options for getting out of the signed contract.

The most important things you can do if you’re considering a timeshare purchase is to take time to read every word in the contract. You’re given a mandated legal rescission period ranging from 3-10 days.

https://womenwhomoney.com/timeshares-worth-money/?fbclid=IwAR0bYNP97–z3c_zLuiKII59MamwEsSaCA6exdi6GdNOspnL26F88c09eeg

Timeshare expert and author of Timeshare for Dummies Lisa Ann Schreier agrees:

“While it is true that each state has a legally mandated rescission period, the fact of the matter is that 99% of purchasers will not read the contract within that time frame. The days of relying on the sales person for good, solid information are over. Consumers must go into these timeshare sales pitches armed with a litany of questions and be prepared to walk out without purchasing anything if they don’t receive answers that can be pointed out within the contract.”

http://thetimesharecrusader.blogspot.com/

My husband and I used and enjoyed our timeshare for 25 years with no complaints, questions or Facebook posts. The points-based product does offer greater flexibility and the elimination of additional fees imposed by exchange companies. We’re not saying timeshare isn’t good for many, and there are not honest sales agents, but I am convinced, in speaking with timeshare members, current and former sales agents, managers and even an executive or two, “pitching heat” is on the upswing. Having sold everything from pianos to Charitable Remainder Trusts, I have never encountered a term as revolting as “pitching heat” as the industry itself describes the employment of unfair and deceptive sales practices.

Timeshare buyers should record their timeshare sales sessions in one-party states where legal. I would recommend not buying a timeshare in a two-party state. If you can’t record your presentation, proof will be hard to come by. One of our Supporters, Sheila Brust, has in her possession her “Pencil Pitch” that clearly denoted:

$8,631

-8,631

0

There was an arrow pointing to 0 and the word “saved,” indicating she would be able to cover all her maintenance fees using a program that unfortunately did not exist. A second buyer who bought from the same sales agent was also dismissed by the Florida timeshare reviewer. The Florida reviewer told Sheilah that she did not understand the program either until she spoke with the company attorney. What chance does the average consumer have if a Florida timeshare reviewer, who has reviewed hundreds, if not thousands of timeshare contracts, did not understand the program until she spoke with the company attorney?

“Hear no evil, see no evil” seems the norm in some states. As far as proof, 78 Platinum members, who don’t know each other, reported similar to identical complaints, often against repeat offender sales agents. I’m told that constitutes proof as it is a good faith investigation and a reasonable conclusion.  At the very least if Florida demands proof, make Florida a one party state.

Contact Inside Timeshare or a self-help group if you have questions or concerns about your timeshare.

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you Irene for coming up with today’s article at such short notice.

Do you have any comments or views on any article published, if so use our contact page and let us know, we welcome your views.

Have you a problem with your timeshare, you don’t know where to turn or who to trust, again use our contact page and we will point you in the right direction. Remember there are many bogus companies out there, promising the earth and delivering nothing, do your homework before engaging with any company.

Have a great weekend and join us again next week.

The Tuesday Slot

Welcome to The Tuesday Slot, today we look again at the Nevada Senate Bill 348, with the introduction by Irene Parker and comments from Michael Kosor. Once again it looks like the industry is moving to protect itself rather than the consumer, yet the problem is one of their own making.

In Europe a new organisation has been created, EUROC, yes, it is the European version of ARDA ROC, it is being funded by ARDA and RDO, (Resorts Development Organisation) Europe’s timeshare trade body. EUROC is being set up to replace the discredited TATOC, which closed down in 2017. Once again it is a smokescreen to give consumers the illusion of having a voice. According to the press information, the two organisations behind it are only going to fund it for a year, after that it should be self sufficient, well, we shall wait and see.

URGENT AND TIME SENSITIVE

If You Bought a Timeshare in Nevada and Experienced Unfair and Deceptive Timeshare Sales Practices

Nevada Needs to Hear From You

The Next Timeshare Legislative Battle is April 5 in Nevada

Nevada Senate Bill 348 is an identical Bill that follows Florida HB 435

Nevada SB 348:  https://legiscan.com/NV/text/SB348/id/1965282

Introduction by Irene Parker

Comments by Nevada resident and Timeshare Advocate Michael Kosor

April 2, 2019

As part of Nevada SB 348, the timeshare lobby ARDA has proposed that timeshare members seeking exit services wait 24 hours before a timeshare member signs a timeshare exit service provider contract. Given the volume of complaints concerning fraudulent timeshare sales, if anyone needs 24 hours to “sleep on it,” it is the timeshare buyer. Buyers typically sign a perpetual timeshare contract with little to no secondary market. When deceived, contracts signed for even $100,000 or more are worth nothing seconds after the rescission period.  We previously reported how easily a sales agent can dodge the rescission period.

Some states, like Arizona, understand the plight of timeshare victims, especially if lawmakers themselves experienced deceit. The reverse is true in Nevada. Many of the 779 complaints Inside Timeshare received were directed against Nevada sales centers. The Nevada Real Estate Division (NRED) dismissed all with a “You have no proof” letter. It is likely Nevada SB 348 was proposed due to a less than warm reception for the identical Florida HB 435, given the comments made by Florida representatives who themselves experienced negative timeshare experiences. Nevada SB 348 was proposed on the last day a bill could be filed.    

In Florida, spokespersons for the Florida Attorney General’s Office and the Department of Business Practice and Regulation (DBPR) reported Florida received 1,600 complaints each year for the last few years with 700 complaints already received in 2019. Of the 1,600 complaints, it was reported that most complaints are about the initial sales presentation and approximately 50% were reported by seniors. Only 42 complaints were “engaged” and those they said were mostly about resale.

In effect, perpetrators in Florida and Nevada have been given the green light to make up anything to sell points, knowing complaints are likely to be dismissed by the timeshare company and by NRED and DBPR. Florida is a two party state so consumers cannot legally record the sales presentation.             

ARDA lobbyist Don Isaacson opposed the pro-consumer Arizona HB that would have required timeshare buyers be granted 24 hours to review a timeshare contract. His argument was that Arizona only receives 250 annual timeshare complaints.

If you experienced unfair and deceptive timeshare sales practices in Nevada, there is an easy method to comment on pending legislation. If you signed an NDA you can still make a general comment asking the bill to be amended to include the offer of a 24 hour period for the buyer to consider the purchase of a timeshare.

To voice your opinion click on Nevada SB 348 to comment:   

https://www.leg.state.nv.us/App/Opinions/80th2019/

Thousands upon thousands of people across America and in the European Union are reporting unfair and deceptive timeshare sales practices. Just this week Consumer Affairs reported on a couple over the age of 85 sold $250,000 in timeshare points. USA Today and the Arizona Republic reported on a couple nearly 90 years old sold $150,000 in timeshare points. In March I received a complaint directed against the same timeshare company from a couple turning 90, both diagnosed with age-related dementia. They were sold $145,000 additional timeshare points promised a maintenance fee relief program that does not exist. A third complaint against one agent, a sales agent we have on a recording defrauding a veteran a year ago, sold a couple ages 79 and 80, 90,000 timeshare points. The husband is diagnosed with Alzheimer’s; the wife’s first language is Cantonese. They were unsure of the purchase price but a conservative estimate is $240,000.    

There’s more!

If this bill passes, law firms providing timeshare exit assistance and legitimate exit providers would not be allowed to receive payment for services provided until all services have been provided. Timeshare companies have not been forthcoming in even notifying timeshare members that their loan has been cancelled. Many have reported not learning of a loan cancelled until a 1099C arrives in the mail.

We want timeshare buyers to be offered 24 hours to think about their decision to sign a timeshare contract. This could be waived if the buyer chooses, but would allow those unduly pressured to consider their decision, consult an attorney, mom, dad, son or daughter. As things stand, same day sales are demanded after exhausting sales sessions.

The proposed “cooling off period” as stated in the NV SB 348:

A time-share exit assistance or relief services provider shall give the owner who is not a developer not less than 1 business day to review a contract pursuant to this section.

Timeshare exit providers have heard from thousands of timeshare buyers desperate to find release. Voice your opinion – click on SB 348 and demand your 24 hours:

https://www.leg.state.nv.us/App/Opinions/80th2019/

Timeshare members collectively donate approximately $5 million a year to the timeshare PAC ARDA ROC through “voluntary” donations via their timeshare maintenance fee invoice, yet not one of the 779 timeshare members who have contacted us could tell me what ARDA or ARDA ROC stands for. These donations fund ARDA lobby efforts. ARDA purports to be lobbying for the consumer, but what’s wrong with a consumer being allowed 24 hours to think over a purchase that has financially devastated so many families?  

Michael Kosor, a Wyndham owner and Las Vegas resident, responds to Wyndham Sr. VP Jason Gamel who testified at the Florida HB 435 legislative workshop held in Tallahassee March 12

The Nevada Senate Bill 348 denies legitimate attorney representation to responsible consumers desperately seeking to escape the perpetual liabilities of a timeshare contract. Attorneys who provide timeshare exit assistance would not be allowed to charge a retainer or any money upfront until services have been provided. Challenging a timeshare contract can take up to two years or more.  

When I last visited the Nevada Real Estate Division (NRED) and sat down with an investigator on the issue of timeshare complaints I learned the following:

  • NRED continues to be one of the only states that I am aware of, with a large number of timeshare sales, with no dedicated timeshare division. I believe Nevada is #7 in timeshare sales.
  • NRED has no legal staff, thus NRED must forward all legal questions to the Attorney General.
  • The investigator confirmed that NRED produces no public report to anyone, including its own investigators, on the number, type, and/or outcome of timeshare complaints filed. Are there fifty or fifty thousand complaints?

Wyndham Sr. VP and attorney Jason Gamel, who provided testimony at the Florida HB 435 Workshop held in Tallahassee March 12, made some arguably false comments in response to Florida state Representative Newton’s question about Wyndham’s dissolution policies. Mr. Gamel explained that there was no need for owners to contract with an exit service provider because members seeking a loan cancellation due to hardship can apply for a hardship release through Wyndham. Those who were denied release and contracted with an exit service provider, or those with pending litigation, will find the testimony interesting.

When asked about the percentage of owners who would be eligible for release through Wyndham’s dissolution program, Gamel stated “…over 99% of the inventory qualifies and if the owner is current in their maintenance fees and their mortgage is paid off, it’s literally just about everybody. So anybody that has called us in the last few years while this program has been active, we have taken those timeshares back.” He further went on to state, “If they qualify for the program everyone gets out.”

I have talked to those who own Wyndham (as I do), who tried to get out but did not “qualify”. When I researched the program I discovered:

  • A policy to exit a Wyndham contract is only a few years old at best.
  • To my knowledge, Wyndham doesn’t publish any qualification criteria. I am an owner. I have asked. They will not provide the specific policy criteria in writing or in a telephone conversation as to what is sufficient to “qualify”. If anyone has the qualification criteria of any developer, exchange program, etc., I would like to see and share it. It is my assessment “qualification” is a purely subjective determination made by Wyndham.
  • Contrary to my experiences and those I have talked to, more often than not, simply being current on maintenance fees and having no mortgage does not automatically result in the ability to exit/dissolution.
  • In my opinion, the entire effort is primarily a smoke screen created in response to increased consumer issues seen as threatening a very profitable business model while deflecting attention away from fixing the flaws in the product and its lack of a resale market.
  • Florida Representative Newton requested and was promised information to support Gamel’s assertions. I hope it will be made public.

Mr. McKelvey, representing ARDA ROC, also made some questionable comments that need to be rebuked. First, he claimed “most of the developers I know and certainly most of the timeshare managers I know, and I managed timeshare properties for thirty years… every single resort had a dissolution policy, every single (one). There was a way to get out. You had to come to your management company, and based on what the board of directors instructed us (the management company) to do in the terms if they had to pay a fee or if they had to be current, whatever those situations were, we did not have a one that did not have a dissolution policy and a hardship policy….”

Mr. McKelvey’s Defenders Resorts may have had a dissolution policy, but in no way can the statement be supported that all resorts have a dissolution policy.

McKelvey went on to imply dissolution policies are “passed by your board of directors.” These are not developers, these are board members elected to a board that have passed a certain dissolution policy. We send that (dissolution policy) to the directors, but we never get an answer.

There is much to challenge in McKelvey’s testimony:

  • I seriously question the validity of his claims related to the vast proliferation of dissolution policies.  
  • There is a huge difference in “having a way to get out” and getting out.
  • Dissolution policies, contrary to what McKelvey implies, are the developer-controlled boards of the corporations and exchange trusts formed by the developers used in the developer’s affiliation (exchange) programs.
  • I find it incredible that legislators and consumer protection agencies fail to act on the realities encased by prior flawed and outdated legislation that permits the sale of perpetual contracts, on the twin legal fantasies that timeshares represent an interest in real estate, and the equally damaging “constructive notice”- a presumption purchasers are knowing of and accepting of all the contract provisions imposed. I know of no other consumer product that fits these twin categories and have produced so much wealth destruction. As I have said in the past, the properties of real estate have been stripped away from timeshares. Buyers own little more than a “membership” in a strange sort of country club that can cost $100,000 or more upfront with perpetual liabilities.

ARDA’s claim that it represents both the industry and the consumer needs to be debunked.  Who are the true consumer advocates?

Thank you Mike for your opinion. Please voice your opinion on the Nevada link provided. Venting on complaint sites is easy and might make you feel better, but venting affects no change.

Self-help groups we feel are not industry influenced:

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

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

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

https://tug2.com/Home.aspx

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

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

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

The Tuesday Slot

Welcome to The Tuesday Slot, this week we welcome KOALA, a new innovation in Timeshare Rentals & Exchange, with the introduction by Irene Parker.

First another word of warning for those who have had dealings with Eze Group, as we reported on Monday, Dominic O’Reilly has been jailed for 2 years 4 months, with Stephanie O’Reilly receiving 9 months & 18 months suspended for 2 years.

Since this case has been in the public domain several readers have informed us of companies claiming to be working with or appointed by the courts to help “victims” get their money back. The main one that seems to be contacting people with this story is Money Advice Limited.

The latest reader to have been contacted has been told that the money is in the Spanish legal system, that they need to pay £725 in order to get the money. Once this is paid they will receive a cheque within 10 days.

This is a scam, there is no money held by the courts either in Spain or the UK. No court appoints a private company or third party to contact victims. If you had come up in any investigation the authorities would have been in contact before any case, this would have been to provide any evidence and witness statements to strengthen any case they had.

DO NOT FALL FOR THIS SCAM.

Now for this weeks article.

KOALA Provides a New Era for Timeshare Rentals & Exchange

Founded by a team that believes everyone has the right to decide how and when they travel, Koala is empowering owners to utilize their timeshare without limits. There are no upfront costs, no commitments and no hidden fees.

Visit the KOALA website to join their exclusive wait list

www.go-koala.com/owners

March 26, 2019

Introduction by Irene Parker

I met with the founders of Koala last summer when visiting our daughter in New York. Co-Founder Mike Kennedy is a serial entrepreneur and spent 10 years as a Sales Executive at Hilton Club New York. Inside Timeshare has received only two Hilton complaints out of 742 reader complaints. Mike gained valuable insight into the struggles of timeshare owners today and is committed to modernizing and improving the industry.

Co-Founder James Burbridge reached out to Inside Timeshare about a year ago. Since then the two have been laying the groundwork to launch Koala’s modernized timeshare exchange platform. James has spent over 20 years in digital media, business transformation and delivery of cutting-edge technology. He has developed multiple web solutions in the travel, retail and hospitality space.

The two founders met through James’ wife and quickly found common ground when it comes to their beliefs in entrepreneurship – solve a big problem and work with people who focus on solving that problem ethically and efficiently. These core beliefs stem through the company culture at Koala. The company has assembled a team of experts to deliver the website to the market this summer. This is the inventory build-up phase, so contact Koala to become a part of this revolutionary new service. According to Mike, “We have had a great response from our sign-up page. Many owners are signed up and ready to go.” https://go-koala.com/owners/

In a remarkable display of a lack of business ethics on the part of SellMyTimeshareNow (SMTN), when I searched for the new Koala timeshare exchange, I found a link to KoalaSellMyTimeshareNowSalesandRentals. SMTN stole our Inside Timeshare keywords too. When I searched Inside Timeshare the link was to InsideTimeshareSalesandRentals/SMTN. Inside Timeshare has received complaints about SMTN, and there is a RedWeek thread started by people who paid SMTN $1,700 to list timeshares widely known to have no secondary market. On this front Inside Timeshare supports the hotly contested Florida House timeshare Bill 435 and Nevada Senate Bill 348 feeling SMTN should not receive compensation until after a timeshare has been sold. Koala is considering a SellMyTimeshareNowSalesandRentals/Koala link.

KOALA

Koala is a secure, peer-to-peer marketplace for timeshare owners to easily rent unused time to anyone in the world. It is reinventing the way owners use their assets to Go Somewhere New whether you’re a savvy owner ready to embrace innovation, or your timeshare no longer fits your lifestyle, Koala is set to disrupt the status quo.

There is a growing demand from travelers for accommodations that offer more space than a hotel room and more safety than a stranger’s home. Koala connects timeshare hosts to those seeking the value and certainty that timeshare rentals provide.

Transactions that occur between owners and travelers are secure as Koala safeguards both parties. Technology is at the heart of this innovation, ensuring the highest level of certainty and trust.

State of the Industry  

  • Peer-to-peer technology is leading the industry in the rest of the travel sector but timeshare has seen no evolution in this direction.
  • Millions of owners don’t utilize their timeshares and are reaching for new ways to subsidize their unused asset.

Why KOALA?

  • Your Time is Valuable – Your timeshare is rented faster. We put your rental in front of all travelers, not just those looking for timeshares.
  • Free to List – Signing up and listing is totally free. Owners remain in control and can delist at any time. Fees are only charged once a rental is completed and, depending on a few variables, the fee will be 5-10% of the total rental. The fee is collected once your guest has concluded their stay. Owners always see exactly what they’ll earn and exactly what we charge before they list.
  • It’s Simple and Secure – Creating your listing is quick and simple. Our secure network ends your worries and gets the money to your pocket.
  • Safety and Security are at the core of Koala’s Company Culture

With years of timeshare and tech-industry experience, Koala’s founders were driven to build a tool that would grant owners the control and freedom they deserve. Backed by a group of industry experts, Koala is shaping the future of vacation ownership.

The next generation of timeshare buyers expects more control over their vacations. Koala will revolutionize vacation ownership using a peer-to-peer solution the same way Uber & Airbnb have for their respective industries. Koala is set to launch this summer and is currently accepting early members online.  

https://www.go-koala.com/

Be sure to check with your resort to determine any restrictions on renting.

Thank you Irene and Koala for this article, we hope that this is something that will at last be of benefit to owners.

If you have been contacted by any company that tells you money is being held by any court, use our contact page and let us know, it is with your information that we can inform others of the scams that are going on.

Friday’s Letter from America

Welcome to another edition of Letter from America, this week Irene Parker looks at the Nevada Timeshare Senate Bill 348, which along with Florida House Bill 435, allegedly protects timeshare consumers. But as you will see it may just prevent consumers from seeking the legal help they may need. We begin with an editorial by Timeshare Insider.

ARDA ROC responded to our Tuesday Talk article by providing their press releases strongly in support of FL HB 435. ARDA feels the bill does not prevent a timeshare member who feels they were a victim of unfair and deceptive sales practices from seeking legal counsel, but what law firm does not charge a retainer for services that are to be provided.

Inside Timeshare, especially from the EU side, spends considerable effort exposing fraudulent timeshare exit services. It is a never-ending battle which in all likelihood cannot be won without ARDA and the timeshare developers acknowledging the obvious unfair and deceptive practices that have existed on the front end of the sale. When complaints are routinely dismissed because the buyer signed a contract, and Florida and Nevada seconds the ruling by informing the buyer they have no proof, there is in effect nothing to stop unscrupulous sales agents from making up any outrageous claim to sell points.

ARDA has launched a responsible exit program.  For one timeshare company, licensed timeshare resale brokers will not accept a listing to sell the timeshare, or if the broker does accept the listing, the seller is lucky to break even. If the buyer finds they were deceived seconds after the rescission period, which Irene in her article explains can be easily dodged, there is no responsible exit. Amounts of $100,000 or more are not uncommon.https://responsibleexit.com/

We do thank ARDA ROC for responding to Tuesday’s article. It is our hope two opposing sides can come together to stop hard-working citizens in the EU and America from  being financially devastated by the words and actions of timeshare sales agents and timeshare exit service providers. In any profession there are bad apples, but in the case of timeshare sales, bad apples have a tendency to be rewarded.           

Nevada Pot Calls Kettle Black

Nevada Timeshare Senate Bill 348 Purports to Protect Nevada Timeshare Consumers – but in effect Prevents Timeshare Buyers from Retaining Legal Counsel

“What is good for the Goose…, we would love to see a 24 hour waiting period requirement on the initial timeshare sale. Members are never told of the lack of a secondary market if a timeshare member needs to dispose of the timeshare. If a wait is good for consumers on the couple thousand dollar exit contract, it certainly should be necessary for the initial $20,000 to not uncommonly over $100,000 or more a timeshare buyer spends on the initial sale.” An advocate

Proposed Nevada SB 348

https://www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6627/Overview

By Irene Parker

March 22, 2019

In an apparent knee-jerk reaction to Florida lawmakers offering a less than lukewarm reception to Florida House Bill 435, ARDA lobbyists and timeshare developers introduced a nearly identical Nevada SB 348 on the last day a bill could be filed. Democratic Senator and Majority Whip Pat Spearman and Senator James Ohrenschall are the bill sponsors.

This bill if passed would not allow an attorney to charge a retainer if they are known to provide timeshare exit assistance as part of their law practice. Exiting a timeshare contract can take up to three years. In essence, the bill seeks to eliminate attorneys who provide timeshare exit legal advice when timeshare buyers experience unfair and deceptive sales practices or wish to dispute a contract.  

Honest attorneys and legitimate exit providers feel ARDA and timeshare developers seek to throw the proverbial baby out with the bathwater. Legitimate timeshare exit providers feel as strongly as ARDA and the developer that the myriad of scam exit companies are harming consumers, but not allowing a timeshare buyer disputing a contract to retain an attorney is overreaching, according to attorney arguments presented during the Florida HB 435 March 12 workshop held in Tallahassee, Florida.

Like the Florida bill, the Nevada bill if passed would require a 24 hour “cooling off period” that would allow a consumer signing an exit service contract time to think about their decision before signing a contract. A 24 hour cooling off period before signing the initial timeshare contract would be heralded as a huge win for consumers and would provide a level playing field for the timeshare industry and exit providers. Timeshare buyers are typically told that if they walk away from the timeshare sale of the century they will never have an opportunity to purchase at the price point offered again. The reason buyers are demanded to buy the same day is because most will not buy a timeshare if given a chance to think about it.

According to Highlands Resorts’ sales manager Steve Abrahamson, named in a Colorado Attorney General investigation in 2017, “In the eighteen months he worked for Highlands Resorts, not a single consumer returned after their sales presentation to make a purchase. In his fifteen years in the timeshare industry, Abrahamson never saw a consumer purchase a timeshare after leaving a sales presentation.”

https://www.businessden.com/wp-content/uploads/2016/12/5B3AF6808EF5C.pdf

Dr. Amy Gregory, an assistant professor at the University of Central Florida studied the impact of buyer regret-and-remorse on rescission decisions and determined:

A whopping 85 percent of all buyers regret their purchase (for money, fear, confusion, intimidation, distrust and other reasons). Forty-one percent of buyers never thought they would regret their purchase, but they did; another 30 percent were neutral prior to buying, but then regretted it.

https://www.redweek.com/resources/ask-redweek/arda-world-timeshare-owners

There has been a tsunami of complaints from consumers describing predatory, unfair and deceptive timeshare sales practices. Buyers often sign a perpetual contract after being held for hours in an aggressive high-pressure sales session. I have prepared a 126 page report of 75 Platinum members who report similar to identical complaints, up-sold into insolvency by being promised maintenance fee relief programs that do not exist, or the ability to be able to sell points, provided the buyer purchases additional points. The majority of these scams took place in Nevada. Of the 75 similar to identical complaints, 20 were filed against one Las Vegas sales agent allowed to up-sell for over two years, earning $2.4 million in 2016 and $2.4 million in 2017. In a lawsuit filed against the company, he alleges management instructed him to create reasons why existing members needed to purchase additional points.  

In another Nevada incident, an Iraqi veteran recorded a fraudulent sale. The recording was provided to Inside Timeshare January 2018. After the veteran asked for his ID and credit card back for over an hour, when the sales agent left the room, he recorded the second hour of a five hour ordeal that resulted in the disabled veteran, who suffers from TBI and PTSD, taking out a loan the family could not afford. Instead of being fired, ten months later Platinum member Patty Boyak and her husband Brandon, a Navy veteran, were up-sold into insolvency by the same Las Vegas agent. Just recently, an elderly couple, without access to a computer, was up-sold by the same Las Vegas agent that sold Patty. They signed off on a loan of over $100,000, promised the ability to pay maintenance fees. The husband is diagnosed Alzheimer’s and English is his wife’s second language.

If you are just now jumping into Timeshare Wars, these are the links to our articles published last week about Florida HB 435 and our members’ responses to ARDA’s assertion that the rescission period offers adequate time to cancel the contract.

Florida HB 435 Workshop held March 12

Timeshare member response:

According to one attorney I spoke with, the primary problem with the bill is that ARDA has exempted attorneys in Section 12(1) and then in Section 12(2)(b) states attorneys cannot get paid until “all” services are complete. One can only assume when ARDA states “all” services, they mean getting a full release, regardless this is not clear. As attorney Wayne Halper explained at the Florida HB 435 workshop, proof of release has not always been provided by developers.

This bill creates several problems.

  1. First, attorneys bill for their time.  If attorneys cannot bill for time and can only bill upon completion of services, it is going to create cash flow problems and prevent attorneys from taking these cases, which appears to be ARDA’s intent.  Further, given the lack of clarity about what “all” services means; it appears attorneys could potentially be held criminally liable if they billed a client for work performed. The sole effect of this would be to chill representation and is completely anti-consumer.
  2. Given the confusing nature of the drafting, as soon as this bill passes all the timeshare companies have to do is refuse to settle, forcing every attorney to go to binding arbitration and the attorneys would only get paid if they win. Very few if any attorneys are going to take that risk given the deck is already stacked against them at arbitration, which is anti-consumer.  Once again, trying to keep people who have been aggrieved by the timeshare companies, or are struggling financially, from being represented by counsel.
  3. The penalty for breach of this law is a felony. This will further deter representation by attorneys. There is no other area of law, where an attorney can be held liable for a felony based on representation of a Client and the manner in which we legitimately bill. That timeshare companies are already suing attorneys all over the country civilly, to be able to subject attorneys to potential criminal sanctions, is ludicrous and highlights the sole intent of this provision, which is to prevent aggrieved consumers from being represented by counsel.

If you would like to weigh in, contact Inside Timeshare.

We support the following self-help groups we feel are not industry influenced.

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you Irene and all those who have contributed to this and the many other articles published on Inside Timeshare.

Please do use our contact page if you would like to comment on this or any article published.

It is Carnival Time here in Gran Canaria so this will be a very busy weekend, we hope you all have a great weekend and join us again next week.

Carnival Gran Canaria

Canarian Legal Alliance: Benalmadena Office Interview

While attending a meeting on the Costa del Sol, Inside Timeshare took the time to drop in on the new office in Benalmadena Costa of Canarian Legal Alliance. The office manager and senior consultant Sean Thacker was very kind in spending some time explaining what they do and answering a few questions.

The office itself is situated in the center of Benalmadena Costa, a stones throw from the wonderful Parque de la Paloma and the Aquarium Selwo Marina.

It is a modern and spacious office with facilities for conference calls, with a relaxed atmosphere, which will certainly put potential clients at ease.

The Benalmadena Office of CLA

Here is what Sean had to say.

Inside Timeshare.

As we know Canarian Legal Alliance has had a presence in Gran Canaria for many years, the Benalmadena office is a fairly new branch, when did you open and why was this location chosen?

Sean: This office opened in April of 2017, the main point was we understood there were many clients who took vacations on the Costa del Sol, especially as this area is full of resorts associated with timeshare. It was felt that many of these owners would be interested to learn more about their rights and how the judicial system can protect those rights.

In the light of the publicity surrounding the timeshare industry, we believed they would be more comfortable in visiting our office and discuss their concerns in person. The other advantage is we are also able to offer the many mainland European clients who opt for driving holidays a genuine service.

IT: Have you had many clients just walk in seeking advice about their timeshares and what has been the main concern of these clients?

Sean: Yes, we were very surprised at the number of clients who passed and came in for some general advice. We offer this advice free of any charge, explaining the law in Spain and what their rights are under the Spanish Timeshare Laws.

One of the main concerns was the mounting rise in maintenance fees, along with no availability, especially for the points and floating week owners, yet they were increasingly seeing that they could book online in the high season considerably cheaper than what they pay in fees. Another concern was where clients purchased on a rental basis yet they received no rental income.

IT: Are most of your enquiries made by telephone or do you receive more via email?

Sean: Our clients, apart from walkins, are mainly via enquires from the internet or social media and we now find we have a major source from our current client referrals to other owners or even friends and family.

IT: What has been the main nationality of the clients or have they been from all over Europe?

Sean: We deal with clients from all of the major countries, UK, Germany, France, Spain, Belgium/Holland, Scandinavia and we have now found over the last 3 months a big increase in Finnish clients who are interested to understand their rights in Spain.

IT: As you said, many of your clients are now from Finland, which timeshare company has figured the most with these clients and what type of products have they purchased?

Sean:I notice that most of our Finnish clients predominantly purchased with Silverpoint / Excel, The Company Participation Schemes seem to play a major role in most of the purchases.

IT: You mentioned the Company Participations Scheme sold by Silverpoint, would you say that these are now becoming more numerous than the old “investment packs” that were being sold originally?

Sean:Yes, there seems to be a switch from the old investment packs to Company Participation which suggests that companies are trying to look for alternative sales tools to offer to clients while always trying to circumnavigate the Spanish legal system.

IT: How do the “Company Participations” differ from the original “investment packs” and would you say that the average amount spent by purchasers is much higher than before?

Sean:The biggest difference is that customers thought they were buying an apartment as freehold. But they bought between 8 to 52 timeshare weeks, these “apartments” are “registered” as SL or limited companies, this is another ploy to remove them from the strict timeshare laws. On this point, in a recent case held in Tenerife, Silverpoint admitted in court that The Company Participations are timeshare. We are finding that our clients are spending anything between 37,000 and 250,000 euros per purchase. That is a huge amount for a product which is essentially timeshare.

IT: Would you say that most clients are nervous about taking legal action and how do you overcome this?

Sean: Everyone is always nervous in the first place to take any legal action, especially in a foreign country, the most important aspect of our work is to make sure we offer full support and transparency in how the process works, then guide the clients step by step through the whole process. It is important at all times we never apply any pressure techniques. This process is totally in the client’s hands, we are a support vehicle for them.

IT: We know there is always going to be bad press on the internet, much of it made by the industry, which will make prospective clients sceptical, so how do you overcome this problem?

Sean:Bad press is something we deal with daily, it proves to me that we do our job correctly for our clients. If you take the record of CLA and the number of case victories including over 129 Supreme Court wins, this shows to our clients that bad press is the only option certain industry members have. I personally will always go through with clients all good and bad press so they feel comfortable, as I mentioned earlier, transparency is the key .

IT: Roughly, how many cases do you think you have taken on since opening this office and would you say that those which have been to court have lived up to the expectations of your clients?

Sean: Since opening, we have delivered over 500 cases from the mainland office alone, all our client’s expectations have been surpassed using the correct Spanish Laws. Our clients who have had their cases heard have received back the full purchase price, including double the deposit paid within the 14 days cooling off period, in some cases, this has been extended to 90 days, which then doubles any amount paid within that period.

Thank you Sean, you have explained what you do and how you work with your clients, I’m sure that anyone coming into this office is going to be put at ease and be given the facts.

The Benalmadena office is certainly following the success of their parents in Gran Canaria, no doubt we shall hear more of them in the future.


Sean Thacker indicating a Supreme Court ruling against Silverpoint

Sean also pointed out that Diamond has several resorts in the area one is their flagship Sahara Sunset. Diamond has also had rulings against them from the Supreme Court, Inside Timeshare published this in December 2018. Below is a PDF of that ruling.

In another court case, this time held at the Court of First Instance in Barcelona, Restotel SA, MedHotel Group SL and ONA Group (Club Dorada SL), were found to be in breach of the timeshare laws. The contract was declared null and void with the client being awarded 112,724€ including double the deposit paid within the cooling off period. Below is a PDF of that ruling.

Inside Timeshare has highlighted the great results achieved by Canarian Legal Alliance in Gran Canaria for several years now, including all the Supreme Court rulings. Even though the facts speak for themselves, the industry is still in denial, they will not admit they are losing. There are still false statements about Canarian Legal Alliance being posted on the internet, much of it we know is from the industry itself, but the facts are these cases are in the public domain and cannot be denied.

Below are two links to previous articles published by Inside Timeshare on Silverpoint, to find more use the search box on the website.

If you would like further information on this article or any other published, use our contact page and Inside Timeshare will get back to you.

Eze Group Clients the Target for Scammers

Over the past couple of months, Inside Timeshare has been receiving many enquiries regarding money held by the courts for “victims” of Eze Group. As we know Dominic O’Reilly, Stephanie O’Reilly and Eze Europe Ltd are due in Birmingham Crown Court on 21 March for sentencing.

The latest firm to appear with calls telling “victims” they have been appointed by the High Court to contact them to ensure that they receive the money due to them is Money Advice Limited.

This company is newly registered at Company House, being incorporated only on 30 January 2019, so it is not even 2 months old. Company Registration Number 11796746 with the registered address:

10 Adamson House, Towers Business Park, Didsbury, Manchester, United Kingdom, M20 2YY

The registered director is Joshua Rice, born April 1989, with the occupation of Financial Consultant. Also registered at the same address. He has no links to any other directorship or company on Company House records.

The address is one that is owned by Regus PLC, one of the largest office space providers. Part of their service includes rental of office and conference facilities by the day and virtual offices. The Virtual office facility provides a business address at a prime location, call answering service and mail handling. So a very convenient way to provide a company such as Money Advice Limited with the cover of legitimate company.

https://www.regus.co.uk/locations/United-Kingdom/Manchester/Manchester-Didsbury?utm_source=yext_places_gmb&utm_medium=places&utm_campaign=yext_traffic&utm_content=3775

According to our information Money Advice Limited is contacting customers of Eze Group and Regency Shores SL and informing them they are working directly with the courts. That only Money Advice Limited will be able to recover the money paid by the customer. As we know, the courts do not use third party or private companies to contact “victims”.

If during any investigation by the Police, Trading Standards or any other authority, they discover “potential victims” of fraud, it is they who would make contact. They would then be asking for information and statements in order to facilitate their inquiry into the alleged fraud.

So the question arises, how has Money Advice Limited got hold of customer details, knowing what they have purchased and for how much?

The only answers are very simple, either they are ex-employees of the company and have stolen the customer records, or they have purchased them from another ex-employee.

So along with Claims Assistance Bureau Limited and other companies, Money Advice Limited is using genuine court cases to defraud people who have already lost a great deal in the original purchase.

As we have already highlighted, Claims Assistance Bureau Limited, have hijacked a genuine company name to make their calls, all to give them credibility. (see link below)

If you have received a call or unsolicited email from any company claiming they have been appointed by or working with the courts to retrieve any money, whether it is Eze Group or any other timeshare, contact Inside Timeshare using our contact page and let us know the details. We will research them and publish our findings to warn other consumers.

Have you paid for a timeshare or timeshare related product and want to know how to get out or even if you can get your money back, use our contact page and Inside Timeshare will get back to you.

But do remember, you must do your homework before engaging with any company that contacts you or that you have found on the internet or advert in any publication. Only by doing this will you prevent yourself from being scammed.

Update: Silverpoint, Nordic Consulting and the Farhouds

So here we are again, with more information supplied by our readers on the link between Silverpoint Vacations and the Farhoud Brothers, today we highlight a case a client who purchased and “apartment” via the “Company Participation Scheme” from the Silverpoint salesman, Alex Farhoud.

As we know he no longer works for Silverpoint but is a consultant for his brother’s company Nordic Consulting Canary Islands SL, who are now making more money from the very people they sold the scheme to in the first place, this time through dubious legal action against their former employer Silverpoint.

It all began with a visit to Tenerife in 2017 and a subsequent invitation for a return visit with discounted air fares and two week stay at Beverly Hills Club. The only “condition” was they would have to attend an “information” meeting with Silverpoint.

Once they arrived they were contacted by the Silverpoint representative Alex Farhoud. They attended the arranged meeting and were greeted by the friendly Alex. He began in the time honoured timeshare “warm up”, enquiring into their health, how they are enjoying their stay and giving information on the variety of restaurants, trips and attraction that Tenerife had to offer. All designed to put them at ease.

Alex Farhoud

Eventually the conversation switched to a proposal which would be of great interest and benefit to the client, namely how they could purchase an apartment at Beverly Hills Club well below the market value, this equated to about 60% less.

He went on to explain that they would be able to use the apartment for up to half of the year and for the rest rent it out for a considerable income. Although they would have to wait a few years they would receive “compensation” of 4.5% of the the purchase price, around 155,000€

Alex Farhoud explained the business structure with the aid of the tried and trusted “pencil pitch”, (of which Inside Timeshare has a copy).  It shows the workings of the 4.5%, which would equate to 6,975€ which they would receive in the first year as compensation of forthcoming rental income.

This forthcoming rental, was also shown on the hand written “pitch” and showed the proposed income of 21,623.51€, although the amount was actually shown in Swedish Kroner. There would also be a 19% tax deducted from the amount to be paid to the Spanish Tax Authority. This note does have Alex Farhouds name on it.

For the purchase to go ahead a deposit of 5,000€ was payable at that time with the balance of 150,000€ within the next couple of months.

As they had received so much information it was proposed that they would return the following day after looking over the paperwork.

They obviously had many questions they wanted answers to.

According to the paperwork, they would not receive “title” to the property until all the “timeshares” had been freed from their owners, a process that would take approximately 3 years. The paperwork also stated that they were not purchasing “timeshare”.

Moving on to 2018 early 2018, Alex Farhoud makes contact with an important announcement, problems had arisen with the lease. He also announce that he had parted company with Silverpoint, but did not elaborate if he resigned or was dismissed. Now that he was an independent agent he would be able to restore the original terms of the Rental Program Agreement, but this would entail a payment of 2 x 5,000€, paid in two instalments.

It would also appear other “buyers” had received similar information.

Nordic Consulting Canary Islands SL

Step in Nordic Consulting, as we have stated the CEO is Ali Farhoud, Alex Farhoud is the consultant. They announced they had “found illegalities” in the agreements, that what they had purchased was “timeshare”, which as we know is subject to some very strict laws in Spain.

Ali Farhoud

Nordic Consulting explained they had already taken several cases to court where the contracts were cancelled with the client receiving back full payment. They proposed that they would take on the case and help this purchaser. The cost would be over 30,000€ to be paid to Nordic Consulting.

So now we have the very people who sold the scheme in the beginning, making what must have been large amounts of money in “commissions”, contacting the very people they sold it to, claiming they had no idea it was “illegal” at the time. Now making more money from the very same people!

From information received, several formal criminal denuncias have been made against them, with apparently more in process of being filed.

We don’t know about you, but it does appear to us that something is very wrong that these brothers who sold the timeshare and the participations scheme on behalf of Silverpoint for many years are able to operate in this way.

Have you been sold Timeshare with the promise of resale and rental, the Company Participation Scheme or the Overseas Lodging Participation Programme, including by those named here?

If so, use our contact page, let us know what you have purchased, Inside Timeshare will get back to you with information on where you stand and what is open to you on the legal front. Whether you are from the UK, Scandinavia, or any other European country, we can point you in the best direction.

Start the Week: Do I Have a Claim?

Over the past few months, Inside Timeshare has received many enquiries regarding claims and legal action against timeshare companies. As we know there are now many firms contacting timeshare owners informing them they have a claim against their timeshare company. Most are not even law firms, but companies setup to get on the bandwagon of claims since the Spanish Supreme Court strengthened the laws.

Spanish Supreme Court Madrid

From the enquiries received, it would appear that everyone has a claim, unfortunately that is not the case, although the purchase may have been in Spain, unless it can be proved that there is a link to a Spanish entity i.e. an SL or SA company, there may not be a viable case.

For example, one reader contacted Inside Timeshare about a Marriott purchase in Mallorca, the company who contacted them was adamant there was a claim and they could take Marriott to court. This reader contacted Inside Timeshare as they were suspicious that what they were being told was not correct, how could they know there was a claim just by the conversation on the telephone?

This reader sent copies of their documents, unfortunately for them there was no viable claim, all the documentation and payments went via Marriotts Florida headquarters. There was no Spanish link, so no Spanish court would have accepted the case. The contract even though purchased in Spain was essentially a US contract, so it was not covered by Spanish law.

We have even had enquiries from readers who have purchased in the UK, being told they have a valid claim. With many of these they have been told they can do this on a no win no fee basis, then are told they must first pay for the contract to be cancelled. The no win no fee is the enticer, the claim is unlikely to ever be paid out.

Spain has the strongest laws regarding timeshare in Europe, by comparison the UK laws are weak and favour the timeshare companies, it is a fact that the EU has issued directives on the sale of timeshare, but these are not law, they are directives pure and simple. It is down to the individual state to place the basic guidelines into domestic law.

The basic criteria for a valid claim against a timeshare contract in Spain is one or a combination of the following:

  • The purchase must have been made in Spain after 5 January 1999;
  • The contract is over the permitted 50 year duration, i.e no end date known as perpetuity;
  • Contains floating weeks or points systems which also includes fractional and “investments”;
  • Any payments made within the 14 day cooling off period, this is extended to 90 if other infractions such as any of the above are present.

These have been reinforced by the Supreme Court and all lower courts must now follow suite, they have no choice. These are civil cases and it is all down to contracts. Other laws may also be invoked, this is usually done on a case by case basis when the lawyers are preparing the case. They may include Civil Consumer Law and Mercantile Law.

The Supreme Court has also recently ruled that in the case of any payment made during the cooling off period (which includes the 90 day extension) this must be paid back double.

What would be the claim?

  • Double the deposits paid within the 14 day cooling off period, the balance only if paid after, this is the minimum claim amount. If paid within the cooling off period then double that as well. (All double if 90 day invoked), this is the maximum claim amount.
  • Added to the claim will also be the return of legal fees (this is at the judges discretion), but also legal interest is paid from the time the case is presented to court.
  • Maintenance fees may be added to the claim, but again it is the judges discretion if he awards the return.

Obviously, to enable a case to be brought, a competent and genuine lawyer is required, they also should be registered to practice in Spain and have knowledge and experience in this field.

Legal fees are also required to be paid for the work and case to be carried out, these fees are broken down as follows:

  • Translations of all documents into Spanish, interpreters if the client is required to attend court;
  • Lawyers fees, for the preparation of the case and representation in court;
  • Procurator fees, (barrister), they work alongside the lawyer and is responsible for filing the case, submitting and retrieving documents at court;
  • Court fees and taxes.
  • Notary fees for Power of Attorney, if signing in Spain this is included. If the POA is signed in the UK then that must be paid separately by the client.

The fees are calculated on the minimum claim amount, which is the purchase price, they are a one time fee, so if the case has to go to an appeal court, no further fees are requested. This system enables the client to know the cost of bringing a case in advance, unlike most systems in the UK where the legal bill for a civil case is not known until the conclusion.

They do not operate a no win no fee system, in fact even in the UK, no win no fee is not what it seems. This system usually involves a litigation funder who pays the legal bills for the case to be brought. You could say they are gambling on the case, if successful, they will take around 40% of the compensation awarded. If you lose, you could be liable for the oppositions cost, which has happened in several timeshare cases in the UK High Courts. One aspect of these no win no fee offers is they do not advise you to take out a litigation liability insurance in case you lose.

As for the prospect of losing in the Spanish courts on these cases, as long as the correct law firm is employed, which has the experience in these cases and this field of law, that possibility is very remote. Plus the correct firm would not take on a case unless it fulfilled the relevant criteria and breached the laws.

If you would like further information Inside Timeshare would be happy to help, also if you would like to have your case checked as to whether you have a valid and viable claim Inside Timeshare can arrange that free of charge and without obligation.

The documents needed would be scanned copies of:

  • Purchase agreements;
  • Terms & conditions;
  • Any finance agreements if these were provided by the sales staff at the point of sale.

If any finance was taken out and is still being paid, then if you do bring a case this still needs to be continued. Once a ruling and sentence on your case has been issued, then the finance company can be approached to have the contract cancelled and all interest returned. This can only be done at the conclusion of the case, the reason is once the court finds in favour of the client the contract is declared null and void on the grounds it is illegal, therefore, the loan agreement was used to finance an illegal product. A claim for interest may be possible if the loan has been cleared.

Once you know for certain that you have a valid and viable claim, Inside Timeshare can then make a recommendation for the best law firm for your case, they would then be able to go through costs and procedure.

Also if you do not have a case which can be taken through the Spanish courts, but have a finance agreement which you are now finding to be a problem, Inside Timeshare may be able to recommend a firm which specialises in this field.

If you have any questions regarding this article, please use our contact page and we will get back to you.

Thursday Update

Since publishing the news that Meredith Pritchard Claims Consultants Ltd and First Law Solutions Ltd had been wound-up by the High Court, further information has been coming to light.

The perpetrator behind this claims fraud, Stephen Paul Fairclough has seemed to have disappeared, his offices at Regus House are now empty. We do know that he does have links in Portugal and is believed to own a property and lives there. So he may just have fled the UK and is living his life of luxury on the money he has swindled from countless victims.

Apparently from information received by one source, who wishes not to be identified, it looks now like the Police in the UK will not be pursuing the matter against Stephen Fairclough. From the information received the reason is that they do not have sufficient evidence. As we know to secure a prosecution and ensure a conviction in any criminal trial, the evidence must be strong and be of “beyond reasonable doubt”.

Inside Timeshare would love to see Fairclough prosecuted and convicted, so it is now up to you the readers and victims of his fraud to come forward. Inside Timeshare is in contact with one victim who would like to gather together all those affected and form an Action Group.

If you have lost money for services not provided by Fairclough, then use our contact page, send in your details and Inside Timeshare will pass them to the coordinator of the Action Group. It is only with your help that this person will ever be brought to justice.

As an update to the articles regarding Ali and Alex Farhoud and their involvement in the selling of the “Company Participations Scheme” on behalf of Silverpoint , Inside Timeshare has also been informed of “Criminal Denuncias” being filed against them (the Farhouds) with the Guardia Civil.

Our information is that two clients have begun legal proceedings against Silverpoint but they have also lodged the criminal complaints against the two Farhoud brothers who sold them the scheme in the first place. It is believed from our sources that more clients are also coming forward and more “Criminal Denuncias” are going to be made.

It must also be remembered that they are now contacting previous victims via their company Nordic Consulting Canary Islands SL, with the offer of taking legal action against Silverpoint (their former employer) and claiming back what their clients originally paid. They explain that what was sold to them was not legal, yet they are the ones who sold it in the first place, yet they claim they had no idea that it was “fraudulent”.

Now, we also know that they will be charging huge amounts for legal fees to carry out this “service”, so in reality they made large amounts in commission for selling it and are now set to make even more by offering a “legal service”!

If you have purchased these “Company Participations” or any other product peddled by Silverpoint, or have been contacted by Nordic Consulting, then use our contact page to get in touch. Inside Timeshare will then answer your questions and point you to the best solution for your situation.

We also have an update of court cases held in the Courts on Gran Canaria, all these involved Anfi and were brought on behalf of clients by Canarian Legal Alliance.

In total there were seven sentences issued, 3 by the High Court in Las Palmas and 4 by the Courts Of First Instance in Maspalomas. Again all contracts were declared null and void as the contained infringements of the Timeshare Laws as laid down by the Supreme Court. These ranged from floating weeks to perpetuity contracts, the courts awarded over 241,545€ to the clients along with legal fees and legal interest.

Then on Tuesday 5 March, another sentence was issued by the Court of First Instance of San Barlelomé De Tirajana, again this was against Anfi. This quite a significant case as the amount involved is huge.

The client in this instance is set to receive over 212,476€ plus legal interest, along with the contract being declared null and void. This will be one happy client.

The case was conducted on behalf of the clients by the Canarian Legal Alliance lawyer Adrián Diaz-Saavedra Morales, who is another of the young and dynamic team at CLA. So congratulations to them all, and keep up the good work.

Adrián Diaz-Saavedra Morales

If you need any advice with a timeshare problem or paid a company for services which you have not received, contact Inside Timeshare via our contact page. We will point you in the right direction.

The Tuesday Slot: Arizona House Bill 2639

Welcome to The Tuesday Slot, this week Irene Parker continues our articles on the Arizona House Bill 2639, with a contribution from Fran D, a Registered Nurse.

ARDA Timeshare Lobbyist Don Isaacson Opposes Arizona House Bill 2639 – A Bill to Safeguard Timeshare Buyers

ARIZONA TIMESHARE BILL PASSES OUT OF HOUSE COMMITTEE

By Irene Parker and registered nurse, Fran D

March 5, 2019

Arizona has proposed a timeshare bill to protect timeshare buyers, but this bill is being contested by timeshare lobbyists. If Arizona HB2639 passes, it would help to protect consumers from fraud and deceptive sales practices by allowing a 14 day rescission period, among other safeguards. Fran, an Arizona resident, hopes that by sharing her timeshare experience that took place in Sedona, Arizona, and Maui, Hawaii, it will help lawmakers understand what buyers face when purchasing a product improperly presented.    

Timeshare members pay $5 million in annual “voluntary” donations to ARDA ROC. ARDA is the American Resort Development Association and ROC is Resort Owners’ Coalition. Out of 717 timeshare families who have reached out to Inside Timeshare, not one member could tell me what ARDA ROC stands for.

Timeshares have little to no secondary market. ARDA ROC has launched 8 Tips to Navigate the Resale Market. I contacted 22 licensed brokers. Not one would accept a listing for my timeshare points, feeling the restrictions placed on the use of secondary points too restrictive. For the members of my timeshare company, there is no resale market. http://www.ardaroc.org/timeshare-resales-resource-center.aspx

Many of the families affected by the lack of a secondary market for timeshares have been financially devastated. The majority of our readers have reported unfair and deceptive timeshare sales practices.

ARDA – Is this is our voice?

According to ARDA lobbyist Don Isaacson:

But the bottom line, said (ARDA lobbyist) Isaacson, is that the state should not step in to protect people who didn’t bother to understand the nature of the deal.

“You read the documents,” said Isaacson. “And unless there is fraud, you are bound to that particular purchase.”

Anyway, Isaacson argued that too much is being made of the issue. He said the 250 complaints a year to the Attorney General’s Office pale in comparison to the 600,000 timeshare units owned in Arizona.

















What Mr. Isaacson doesn’t understand, is that members are bound by the contract, despite fraud, with the vast majority of complaints alleging deception dismissed with “You signed a contract.” It’s not that buyers don’t understand the product. It’s that they understand the product as it is so often deceptively presented. Three major timeshare companies have received, respectively, over 2,000, 1,000 and 800 Better Business Bureau complaints over the last three years.

When buyers complain, they are typically told they signed a contract. How many people buy cars and houses without relying on reading every word of a contract, relying on the ethics of the real estate or automotive broker? It is only in timeshare that the oral representation clause is so abused and so overused. The industry itself calls deceptive practices “pitching heat,” a term unique to timeshare sales.

There are many ways to deceive, such as:

“This is a new program, so don’t say anything because I could get fired.”

Access to booking is not allowed until after the rescission period, so reading the contract would not help.

Wait until you make a few payments before refinancing – when banks don’t finance timeshares.

Fran’s complaint, recently sent to the Arizona and Hawaii Attorneys General, was dismissed by the company, responding that there were no misrepresentations. You be the judge. She will file complaints with the BBB, the FTC, the FBI at IC3.gov and the Securities and Exchange Commission.

Fran hopes ARDA lobbyist Don Isaacson reads her complaint. She will be reaching out to the following Arizona representatives involved with the bill:

Excerpts from the complaint Fran filed with the Arizona and Hawaii AG offices:

  • We purchased 8500 points in Sedona Arizona April 24, 2017.
  • Purchase price: $29,955.00
  • Down payment: $6,150.00
  • Amount financed $23,805.00

Sales agent Eric told us that we were buying points at a low rate, less than $ 4 per point, and that “at this price the point value can only go up.” We could sell some points at a profit and keep the original base points for travel. Ultimately getting our entire purchase for free, he called it a “401-V”.  He said he would lock the price for one year in case we decided to get more points later to utilize our “401-V”. We have since learned Diamond points are virtually worthless on resale.

The forms were long and extensive. We asked for time to review the documents but were pressured into signing “today” or not get the price per point offered.  After seven hours, my husband got upset and left. Eric followed us to our room insisting that we sign. We thought that Eric must be telling the truth, because if he wasn’t, there would be some sort of regulation. We incorrectly put our faith in Eric.     

We were referred to ARDA. ARDA’s advice leads members to scams, as licensed brokers will not even accept a listing for Diamond points, feeling the restrictions Diamond places on the use of secondary points excessive.

Virginia Beach, August 2017

The sales agents in Virginia were also very high pressure. They told us what we bought in Arizona was not worth it for us and that we had to purchase another 8500 points in order to keep the price of less than $4 per point.  The agent said that after that day the price would be higher. We did not buy. Being deceived into attending the presentation, under the guise that we were getting an education toward our membership was unfair and deceptive. The insistence that we had not purchased enough points made us so angry we did not buy.      

Maui, Hawaii, February 12, 2018

We purchased an additional 5,000 points and switched our US Collection points to the Hawaii Collection to total 13,500 Hawaii Collection points.

  • Purchase price $56,510.00
  • Down payment of $2,731
  • Amount financed $47,713.00

We met with sales agent Sequan R. This again ended up being a hard sell when we told him that we were expecting more of an educational meeting. He said he would give us all the education we need as he had left the company to give independent conferences to teach people how to maximize and exit a timeshare through “Timeshare Confidential Seminars,” but said Diamond hired him back to the sell side of the industry. We were again told “You can’t travel to where you want to go with what you have.” We have since learned that 8500 points were enough points to meet our needs.

Sequan told us we could use a program called Club Combinations at least six times a year to rent out to generate income that would offset the cost of our mortgage. Sequan also told us that we are lucky that the agent in AZ locked in the price because points have already gone up to $8.00 per point so we could already sell points and double our money.  Sequan said that many more high income level people are coming into this resort for the investment which is why the company started the rental program. He said at that income level people want to see a good return on their investment. I told Sequan I did not have time to spend on rentals because I work a lot of hours. Sequan said that the company would appoint someone to help us so we could start to offset our cost right away. I asked Sequan what if they don’t help us. He gave us his cell number and said to call him if that happens. We called Sequan but there was no person by that name.

Later we called and asked how to rent out our club combinations listings.  We were told there was no such program. There was no such thing as a rental program or selling of points for a profit.

Most buyers are on vacation without funds available for a large purchase, so end up signing off on high interest rate loans.  We went into debt to invest in Diamond’s timeshare points.

We had hoped for great vacations and the ability to sell some points for profit as had been explained.  Diamond’s motto “Stay Vacationed” for us means being held hostage. This vacation nightmare has become a major stress in our lives. Filing regulatory complaints is like having a part time job. I am a registered nurse and have spent many years working hard. My husband has worked hard for 40 years. We trusted the timeshare salespeople as we would trust any real estate broker, relying on the ethics of the real estate industry. It was a mistake.

Please do whatever you can to pass this bill and not allow ARDA, a paid lobbyist, to change your minds!

Thank you to Fran for sharing her timeshare experience. Inside Timeshare sent a draft of this article to ARDA. They did not respond. Of the 717 families who have reached out to us reporting unfair and deceptive timeshare sales practices, 99 are veterans and active duty service members. Several of the veterans are disabled, five Agent Orange disabled.

Proposed Florida HB 435, in which developers are worried about members deceived by timeshare exit companies, is supported by ARDA. A recent Florida whistleblower lawsuit was filed on behalf of ten former Wyndham sales agents. The actions of deceptive sales agents also harm honest timeshare sales agents.

IMPORTANT LINKS CONCERNING ARIZONA HOUSE BILL 2639

Press Release: http://insidetimeshare.com/fridays-letter-from-america-43/

To Track Arizona HB2639: Trackbill.com

https://trackbill.com/search/#/direction=desc&page=1&sort=relevancy&tracked&upcoming_hearings&type=bills&state=all&session&query=AZ%20-%20HB2639%20timeshare

Proposed HB Bill 2639

https://www.azleg.gov/legtext/54leg/1R/bills/HB2639P.pdf

Request to Speak for Arizona Residents

https://www.cebv.us/rts.html?fbclid=IwAR2784DcGDTFFg0hoQKi_WPJvhNaz7bvoPylIqRLxoBSStSdlH8Z3qGGD_o

The “Kill Bill” Guide – How it Works

https://drive.google.com/file/d/1Y4w31DQFznxoTDZDru86qzDoku3wuHaW/view

Coalition to Reform Timeshare









Preparing a narration for a governmental agency or a timeshare loss mitigation department is difficult for some due to age related issues or language barriers. We’re here at Inside Timeshare, along with our Supporters, to listen and educate. Contact us or one of these self-help groups we feel are not industry influenced if you experienced unfair and deceptive timeshare sales practices.  

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you Irene and Fran, it is now down to you the readers to do your bit and make your voices heard, this bill is to protect you the consumer, do not let the industry that has walked over you for years do it again.

In Spain, the law is on the side of the consumer, the industry is being taken to the cleaners after years of predatory selling, with many other European Countries with timeshare resorts looking to follow Spain’s lead. This is a result of the European Union issuing several directives on what timeshare is and how it should and should not be sold, which each state having to place this into their own laws, Spain was by far the strongest in its implementation. It took many years to get to this stage, but at least the consumer has the full protection of the law.

LET YOUR VOICE BE HEARD!