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The Tuesday Slot

Today on The Tuesday Slot we welcome another new contributor Laura Crow with her very own “Nightmare on Timeshare Street”, with an introduction by Inside Timeshares very own Irene Parker. These stories are now becoming all too familiar on our pages, with new “Nightmares” being received on an almost daily basis. It seems that not a single day goes by without another email pleading for help, many of these are from seniors and veterans. We do have to ask when will the industry change the way it works?

It is now only a few days to go before the start of the Platinum Protests in Orlando, the dates are 17 to 19 May, see the link at the end of Laura’s article.

We are timeshare trapped!

By Laura Crow

Tuesday, May 14, 2019

Introduction by Irene Parker

Laura Crow was told the California Attorney General only acts when it is in the interest of the public? Why then, have Arizona, New York, Tennessee, Missouri and Wisconsin AGs, to name a few, launched investigations and negotiated settlements when they received a volume and pattern of timeshare complaints?

Timeshares rank second on the list of complaints to the state in Connecticut in 2018, according to the state Office of the Attorney General

Do you have a story idea? We want to hear from you! Fill out the complaint form on the NBC CT Responds page or call 844-303-RESP, (844) 303-7377. More #NBCCT Responds archive here.

https://www.nbcconnecticut.com/news/local/Timeshare-Troubles–What-To-Do-Before-You-Buy-and-Sell-504017151.html

Each state has a different protocol for filing a timeshare complaint. In California and Nevada, timeshare complaints must be filed with the state’s real estate division against a particular agent. Filers should also file a complaint against the principal broker over all the brokers in the state.

Those who feel they experienced unfair and deceptive timeshare sales practices should also file complaints with the FTC and the FBI at IC3.gov. Inside Timeshare has received reports of unfair and deceptive sales practices from over 800 families. Many members report being financially and emotionally devastated, having believed false claims told to them by timeshare sales agents, like the common complaints voiced today by Laura Crow. Seniors suffer physical harm as many report loss of sleep, weight loss, and symptoms of, or a recurrence of, cardiac and blood pressure problems over the stress of their timeshare nightmare.

There has been no federal enforcement. Attorneys General who have launched investigations and negotiated settlements are appreciated, but investigations and settlements have been mere speed bumps along an enormous revenue stream.

Please reach out to the FTC and FBI if you experienced unfair and deceptive timeshare sales practices:  https://insidetimeshare.com/fridays-letter-from-america-47/

One of the Wyndhamtestimonials by current and former employees Laura discovered:

“Liars liars pants on fire”

Former Employee – Timeshare Sales in Daytona Beach, FL

Doesn’t Recommend

Neutral Outlook

CEO

I worked at Wyndham Destinations full-time (More than a year)

Pros

Free coffee, nice view, some friendly co-workers, company parties were fun, decent discounts

Cons

The timeshare sales department is filled with a bunch of liars. New hires have to sit through specific training on what is and is not allowed to tell customers. You are in no way allowed to tell customers that the timeshares are a good investment, that points can be used to pay the management fees, or that the timeshares can be rented out during peak periods to give them a return on their money. ALL THESE THINGS ARE NOT ALLOWED, BUT TOP SALES PEOPLE SAY ALL THESE LINES AND EVEN MORE LIES TO MAKE SALES. The top sales team are all a bunch of vultures lying to people to make a living. Customers get beaten down during the process. I’ve seen documents forged and old terms given to customers to secure their signature. If you have a conscience, do not work there. If you like lying to people to make money and can obtain a real estate license and have a clean background, lying to people during a timeshare presentation is much more lucrative than lying to people on the phone. If this is the type of scummy person you choose to be, then Wyndham is a great fit. If you are a salesperson who grows a conscience, there are other jobs at Wyndham you can do, so you don’t need to just quit. Just try to transfer to a different department.

Laura Crow’s Nightmare on Timeshare Street

I am a California resident and have found other California residents online in the same leaky timeshare boat as me. We have all filed a complaint with the California Attorney General and were all told that the Attorney General can’t intervene on behalf of individuals. They only act when it is in the interest of the public. Well, how many members of the public does it take to get some kind of action?

After attending a Wyndham WorldMark presentation four years ago, we left believing we could travel anywhere, any time. Europe was the big selling point. The selling point for my husband was that we could make good money by renting out our timeshare. The timeshare would pay for itself! As many have reported, timeshares are worthless. In no way should timeshares be pitched as an income producing investment. I would advise you to run the other way if you ever encounter sales agents spouting such falsehoods.

We are trapped in a contract that has not delivered the financial gains or freedom our sales representatives assured us it would. Instead, it has turned into a financial burden. We are left with the constant stress of this hanging over us, waiting for the next hit to our credit report.

Wyndham and WorldMark could care less. I will send them a draft of this article, but safe to say they will say something like it didn’t matter what our sales agents said. That’s why the public needs to know a timeshare sales agent can get away with saying anything to make a sale. What product would you buy for $25,000 to $100,000 or more that becomes worthless a second after your contract rescission period ended, should you need to dispose of the product?   

Our experiences with Wyndham are the same as so many other timeshare buyers, irrespective of the company. Instead of boring you with our Wyndham narrative, I will draw your attention to the lethargy and inaction on the part of regulatory authorities, authorities who are supposed to have our best interests at heart.

I understand that the BBB is not a government agency and has no power to enforce the law or compel a business to act ethically, but I wonder how it is possible for Wyndham to have such a volume of complaints (over 2000) and bad reviews, yet still maintain a C+ rating. About the time when I filed my BBB complaint, there was a warning from the BBB about a pattern of complaints concerning sales practices. That warning has mysteriously been taken down. How did that happen? My next step is to contact Alexis Castro at the Nevada BBB to find out.

It was the same story with the CDRE (California Division of Real Estate). Mr Aiu of the compliance division has been good enough to communicate with me but told me cases are judged on an individual basis, so no point mobilizing a group to achieve strength in numbers.

Hmm, where have we heard that before? The Catholic Church sex abuse scandal and #metoo comes to mind. This dismissal plays right into the hands of Wyndham. My complaint basically comes down to ‘he said, she said’ but ‘we said, he said’ is needed. Someone, somewhere, a regulator, a lawmaker, a media outlet; something needs to happen. If women followed Mr Aiu’s advice, we would still not be allowed to vote.

ARDA, The American Resort Development Association has been quoted as saying; “Timeshares are a highly regulated product.” Big timeshare paints a portrait of happy timeshare campers idling on the beach, but there are thousands of complaints to be found on the internet. Comments from current and former Wyndham employees, like the comment above and additional comments below, support my allegations. If you would like to test my thesis, compare the number and nature of complaints about a hotel brand, contrasted with the number of complaints directed against that same company’s timeshare brand.   

There are state and federal laws prohibiting unfair and deceptive sales tactics, yet the timeshare industry is going strong. I read about lawsuits and AG cases against Wyndham, like the $20 million a jury awarded to former Wyndham sales agent and whistleblower Trish Williams. Even that has done little to stop unfair and deceptive sales. Wyndham and other companies pay out some money, toss in some media window-dressing dollars, and carry on like nothing happened.

I am in it to win it. I will be reaching out to the media, starting with NBC. I will continue to search out agencies that may intervene or advocate on my and other owners’ behalf. Until the FTC, the FBI, or more state AGs act, public awareness is our only safeguard. That is why I am writing this article. It is not acceptable for timeshare sales agents to lie, deceive, misrepresent and withhold information about their product in order to make a sale.

Here are more Glassdoor.com anonymous reviews by current and former Wyndham sales agents rating the company. Their comments support our allegations of deceptive sales practices.

https://www.glassdoor.com/Reviews/Employee-Review-Wyndham-Destinations-RVW3171503.htm

Here are some reviews by salespeople at Wyndham. You are enabling this behaviour by

Helpful (4)

“If you have integrity – don’t even think to work here”

Cons

You are 100% on commission. The only way to sell is lying to customers, the quota is very high and management is very unprofessional. On an everyday basis, you will hear from current owners how disappointed they are with timeshare product – it makes very hard to sell a product that does not do any good for people.

“In House Sales”

The way to making real $ is if you are okay with lying to people, otherwise, you can make an average living 40K or so. The biggest issue is that upper management acts like they have blinders on, making employees sign statements that they will not say certain things, while direct managers teach the sales techniques that encourage embellishments! Really?

Nov 7, 2018

Helpful (1)

“Sales Rep”

Current Employee – Outside Sales Representative in New Orleans, LA

Recommends

Positive Outlook

CEO

I have been working at Wyndham Destinations full-time (Less than a year)

Pros

I can’t even think of one

Cons

Wyndham Destinations over promises and vastly under delivers on potential income – the possibility for large income prospects are there though minutely small. The fact is it’s very hard to even make a living wage. It’s timeshare sales so very very few leads are actually even viable. Additionally, management regularly and actively encourages sales reps to oversell what clients are actually buying, to mislead, misdirect and ultimately be dishonest with prospects and do anything to get the sale.

Aug 21, 2018

Helpful (1)

“Vacation Ownership Sales”

Former Employee – Inside Sales Representative in Atlantic City, NJ

Doesn’t Recommend

Negative Outlook

CEO

I worked at Wyndham Destinations full-time (More than 3 years)

Pros

Some of the people that work there are nice.

Cons

Being trained to lie to clients to sell them points to travel. If you don’t lie, there is no way to make money. Taking advantage of older people and ripping off their retirement funds is not my idea of how to make a living. The worst thing is that management rewards the biggest liars by sending them off on a beautiful vacation and calls it “President’s Club”. If you ever meet a President’s Club sales rep, RUN! There is nothing they are about to tell you that is remotely close to being true.

Jun 30, 2018

Helpful (1)

May 11, 2018

“Vacation Ownership Sales”

Former Employee – Sales Associate in Clearwater, FL

Neutral Outlook

CEO

I worked at Wyndham Destinations full-time (Less than a year)

Pros

Can make great friends among certain Co-workers, free meals, beautiful office space, earning potential is attainable if you possess the skill sets.

Cons

Favouritism from management, unethical sales process, you should not have to lie about what you’re selling if the product is as good as you say it is. Draw sucks

“Front Line Sales – Not for everyone”

Former Employee – Front Line Sales Representative in New Orleans, LA

Doesn’t Recommend

Neutral Outlook

CEO

I worked at Wyndham Destinations full-time

Pros

I genuinely liked most of the people I worked with.

Cons

Marketing can bring in some completely unqualified tours so when you work on straight commission, it can be extremely frustrating. Management’s take on it is complete oblivion if that marketer meets (and exceeds) their numbers. This job can be emotionally draining – especially when you talk to people about vacationing all day and then get little wiggle room to take your own time off (again, management will bend over … if you are selling). I never sacrificed my morals to make a sale but, unfortunately, I saw many people that did.

“Scam”

Former Employee – Vacation Sales Consultant in Clermont, FL

Doesn’t Recommend

Negative Outlook

CEO

I worked at Wyndham Destinations (Less than a year)

Pros

Work life balance. nothing else is good about this job.

Cons

If you are heartless and enjoy lying to people including elders and single moms, then maybe you can do very well here.

Save the Date!

The Platinum Protest is this weekend May 17-19 in Orlando. Contact Inside Timeshare for more information. On May 17 protesters will meet outside the Florida timeshare division office.

Contact Inside Timeshare if you would like to join Laura Crow’s efforts. Here are some self-help groups we feel are not industry influenced. There are honest sales agents and many who use and enjoy their timeshare. That doesn’t mean sales agents who deliberately mislead should be allowed to continue unchecked, report after report confirms, especially in Florida and Nevada. Thank you, Laura Crow, as we welcome our newest active advocate for change.

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://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/

Well that’s it for today, if you have any comments or would like to share your views with others, then use our contact page, Inside Timeshare would love to hear from you.

Start the Week: Hotel Employees to be Laid off in Hawaii

Welcome to the start of another week in the world of timeshare, unfortunately, we begin with bad news. It has been reported that around 78 employees have been given notice at the Modern Honolulu Hotel, a Diamond Resorts owned property.

Modern Honolulu

The Modern Honolulu is a full-service hotel, purchased by Diamond Resorts in April 2018, it is also one of the 21 hotels and timeshares in the network of Diamond Resorts managed or affiliated properties internationally.

Diamond has expressed an interest in either partially or fully converting the hotel into timeshare use. They have also planned on reducing guest services such as daily room service, banquets, meetings and catering. It has also been reported they have not yet received any timeshare registration approval from the Department of Commerce and Consumer Affairs or any of the relevant permits required to build or renovate hotel rooms for timeshare use.

The layoffs will account for around 30% of the workforce, it will impact many departments such as housekeeping, banquets, pool, in-room dining, reservations and of course the bar, restaurant and kitchens. These workers are being represented by the trade union UNITE HERE Local 5.

According to Gemma Weinstein, President of Unite Here Local 5, “Timeshares have shown over and over again that they hurt Hawaii more than they help. They pay less than hotels, the work is harder, and they provide less jobs. They negatively affect the guests’ experience in Hawaii by charging exorbitant maintenance fees while cutting guest services. Companies like Diamond Resorts are bad for Hawaii.” She also pointed out that this is going to destroy the lives of 78 families.

One worker a housekeeper at the Modern Honolulu expressed her fears that this was going to hurt her family, she holds down three jobs to support them, but the job at the Modern is the only one that provides family medical coverage.

It is also noted that this decision comes very close after Diamond Resorts CEO Mike Flaskey informed Fox News that “his company is benefiting from the Trump administration’s tax cuts and deregulation.” It was also reported that Diamond Resorts in March “failed to issue paychecks to workers on time, resulting in workers incurring fees and penalties.”

Readers of Inside Timeshare are very familiar with the stories of the sales tactics of Diamond Resorts, with the incessant preying on the elderly and the many disabled service veterans we have highlighted. This is just another in the sorry tale of a company that seems to have no morals, just an insatiable appetite for money.

We will keep you updated as and when more information comes in, follow the links below for more on this story.

https://www.hawaiinewsnow.com/2019/05/03/dozens-employees-be-laid-off-waikiki-hotel-converts-timeshare/?fbclid=IwAR1pEMhF0qwr2FAe81n5c5xCUr-f_az49719GUkbvC0Q3F4FWzePHHVwTmY

Tomorrow we continue with the Diamond v Aaronson trial where Irene Parker reports on days 2 and 3 and the early ending of the trial. So join us again tomorrow.

The Tuesday Slot

Welcome to The Tuesday Slot, this week we have another in our series of Secret Shopper reports, but first some news from the UK about ABC Lawyers, one of the Mark Rowe owned companies.

On 8 February 2019, an application to wind down the company ABC Layers Ltd was filed by Mark Rowe with Companies House. The appointed liquidator is David Meany of Quantuma LLP, The Old Town Hall, 71 Christchurch Road, Ringwood, Hampshire.

ABC Lawyers is just one of the companies under the umbrella of Advanced Business Consultants Legal SL,  (formerly registered as Jive Hippo SL), CC Fañabe Plaza 338, Avenida Bruselas, Costa Adeje, 38660, S/C de Tenerife, it is also known as ABC Legal/Other companies are Timeshare Compensation, Timeshare Lawyer, ValueMyTimeshare and Timeshare Advice, all owned by Mark Rowe.

Mark Rowe is also the owner of the following companies registered in the UK, TULOCA LTD (10748107), LANSDOWN FINANCIAL LTD (09742346), STAYCATION LODGES (SCOTLAND) LIMITED (SC549238), STAYCATION LODGES LIMITED (10332646), JIVE HIPPO LIMITED (09863488), MONSTER TEMPCO LIMITED (09855107) and GORLEY VALE FARM LIMITED (09669372). Although he resigned as Director in February 2019, leaving Nicola Helen Rowe as the sole director.

The question being posed now is what will happen to all those clients who have signed up with ABC Lawyers for “compensation claims” and “relinquishments”, are they going to have the work completed?

As we know, several of Marke Rowe’s companies are under police investigation, could this liquidation be a move to prevent yet another of his companies falling under that investigation? Only time will tell.

Now for today’s Secret Shopper Report.

Timeshare Wars!  Deeded Timeshare Owners Fight Back

What kind of business sells points by demanding that if you don’t buy our timeshare points, your children will have to be our customer?

A deeded owner

Marriott Vacation Club Fights Back

Not since the Book of Genesis [1:9-10] has the extraordinary feat of creating land from nothingness been chronicled … and Marriott “saw that it was good” for business. (Plaintiff’s response to motion to dismiss)  

By Another Deeded Week Secret Shopper from Out West

April 23, 2019

Some Vacation Clubs employ predatory and deceptive methods to convince deeded week timeshare “owners” to give up their deed to become a “member” of a points-based timeshare program. Owners are lured to “mandatory” updates designed to convince them why they should join their vacation club.

Last Tuesday a Secret Shopper shared his experience. Shopper owned two continuous deeded weeks at Virginia Beach. He determined that if he had agreed to forfeit his deeds for points, it is unlikely he would have access to the vacation location the family had enjoyed for years.

Some timeshare point members have no “beneficial interest” in actual real estate. Wyndham does sell a point-based deeded timeshare. The (intended pun) point is that just because points are used to identify one’s use interests, does not necessarily make the timeshare a users’ rights product.

In the case of non-deeded points, the point buyer buys points in a “right-to-use” program. Ownership rights are stripped away from the actual real estate. It’s more like buying a membership in a country club than buying a condo, except it’s a country club membership you can’t easily terminate unless the membership is free and clear. If there is no loan and maintenance fees are current, the resort MAY take the timeshare back in return for nothing more than the peace of mind knowing you are done with it.

Charging closing costs for a product that is not real estate was the basis of a class action lawsuit against Marriott Vacation Club.  In a recent ruling,

A Florida Judge has sustained central claims in the class action against Marriott and their points based system. “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

Our Secret Shopper Experience

Throughout our presentation, we were concerned about the sales agent using terms associated with real estate. Our sales agent said points are backed by real estate held in a trust. Agents used words and phrases like “opening escrow” and a 30 to 45 day closing period. One particularly deceptive use of real estate jargon was stating maintenance fees as HOA fees. They are not the same. It would take another article to explain why they are different. They would not disclose the terms of a loan unless we agreed to purchase.

My husband and I went after them from a financial angle. We said we were concerned about the company’s financial health. We felt the thousands of complaints that can be found about this company on the internet, over 1,000 Better Business Bureau Complaints, a government action, and numerous lawsuits would eventually catch up with them. That doesn’t mean all their sales agents are dishonest, but there are a disproportionate number of complaints compared to other timeshare companies.

What seemed to be the craziest comment came from an agent who came over to answer our questions about the budget report. We had asked:

“Is the Club solvent?” “Are they in debt?”

The agent shockingly responded, “Why would that matter to you?”

We asked for their California public report. We showed them that there was a deficit of $9.696 million. We asked why the public report does not show a reserve account. They said it’s typically not shown in a public report. This makes no sense as that is one of the first things to put in a public report to make the consumer feel more secure. The truth is – there is no reserve account based on documents we had analyzed.

Our sales agent seemed a bit dumbfounded. Our session ended without the usual downturn in attitude when a member says no and means no. We don’t think these agents are used to informed buyers. But Vacation Clubs don’t just try to take your deed. They try to take your Resort!

We are longtime owners at one of the resorts that have opposed the Vacation Club’s attempts to take control. Owners realized a few years ago that the Club was rapidly accumulating inventory. Some owners started reporting that they had been to presentations or updates where they had been informed that either the Club already ‘owned’ our resort, or used scare tactics to convince the owner that if they didn’t convert their deed to points, their deed would be worthless and would be subject to a special assessment. Often, especially seniors are falsely told that if they don’t give up their deed and convert to points their children will be required to be club members when the owner passes.

The Vacation Club business model dealing with “Legacy” resorts is well known. I call this model extortion. Here’s how it works:

  1. The acquiring company takes over management,
  2. Substantially higher fees are charged than the resort was currently paying,
  3. Deeded owners’ maintenance fees are raised substantially,
  4. The cost of club operations is shifted to the deeded owners,
  5. Excessive capital reserve projects are imposed in order to collect additional fees from deeded owners,
  6. Availability, especially for desirable weeks, is reduced for deeded owners.
  7. Desirable weeks are rented to the public to increase income to Club managers.
  8. Nuisance fees are added that are applicable to only deeded owners such as parking fee, split week fee.
  9. Benefits deeded owners enjoyed for many years are eliminated, such as day use and bonus time
  10. Information available to deeded owners is reduced in order to force them to attend high-pressure sales presentations or “updates” designed to wrestle the deed away from the owner.
  11. The value of deeded ownership is demeaned by emphasizing the negative aspects of deeded ownership.  Deeded owners are threatened with special assessments, higher maintenance fees, less availability.
  12. Exchange options become limited for deeded owners in order to coerce them to convert to club membership.

Our Club has used unscrupulous Florida title companies to purchase units from deeded owners under false pretext and transfer them to the Club. The Club has pressured management hired by the resort to enact policies beneficial to the Club.  The Club has brought frivolous legal action against the association and board members individually to intimidate vendors and board members so that the Club can gain control of the resort.

The intent of the Club has been to purchase voting power rather than quality ownership. They have done this by acquiring less than desirable units in less than desirable seasons. The units are not used by the Club for occupancy, yet they still pay the dues for these units. As a result, the Club is determined to take control of the resort so that they can better monetize this worthless inventory.

What can be done to keep our resort?

Our resort has taken advantage of social media to increase owner engagement and the free flow of information among owners and between owners, the board of directors and resort management.  The availability of timely information to the deeded owners has empowered our resort to resist the persistent pressure from the Club to take control of our resort.

Our owners and our board are passionate about our resort and determined to maintain the control that allows them to continue enjoying what they purchased. Deeded owners must unite and organize to hang on to what little real timeshare real estate is left. To think the timeshare world will be nothing but points is sad.

We seek to provide timeshare 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://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 to our Secret Shoppers for their report, these do help others to be aware of what actually goes on at these presentations and helps them to be prepared.

If you have any views or comments on any article published, use our contact page, Inside Timeshare welcomes your insights.

The Tuesday Slot

Welcome to The Tuesday Slot, this week we have another of our Secret Shopper Reports, coordinated by Pete Gibbes, these articles have proved to be very popular with our many readers. One thing they all comment on is how similar to their own experiences these reports show.

“Thank God It’s April 15 Day!”

For those in the US, the 15 April is the day when many members will receive a tax liability bill if a loan is cancelled. For us, in Europe, we find this very strange, especially for loans linked to timeshare purchases. At least our European members don’t get a tax bill when their loan is cancelled.

Inside Timeshare has directed many back to their CPA to dispute this tax bill for “phantom income” as the former has not been enriched by the cancellation of the loan as they have retained nothing of value.

Now before we go on with our Secret Shopper article, a little news on the legal front from the leading European law firm in timeshare litigation, Canarian Legal Alliance.

With the Easter Holidays now upon us, the lawyers at CLA are having a well-deserved break, especially after the past two weeks of court cases.

In the past five days alone, there have been 25 trial and 20 sentences issued, many of these were pre-trials, with the judges once again confirming that there was no need for the case to go to a full trial. The reason being, these cases are based on documentary proof, they are based on contracts which according to Spanish timeshare law contain illegalities. This is obviously very damaging for the timeshare companies but very good news for the clients.

So to recap, in the past 2 weeks, there has been a total of 26 victory sentences with 24 against Anfi del Mar, all heard in the Court of First Instance, San Bartelomé de Tirajana, Gran Canaria. With 2 High Court, Santa Cruz de Tenerife against Silverpoint. The total amount awarded is a staggering 931,229€ plus all contracts being declared null and void.

Now for our Secret Shopper Report.

How do you define a “Bad Apple” Sales Agent?

It’s in the Eye of the Beholder

By Secret Shopper

Tuesday, April 16

We have all heard stories of outright deception and deceit employed by timeshare salespeople. Many complaints are from those who were convinced to give up their deeded timeshare week and convert to the points-based timeshare.

Fixed week timeshares may lack the flexibility of points, but if you like knowing what you own, a guaranteed stay may mean more to you than flexibility. With a points program, you can stay more or less than a week and book other resorts at other times of the year. However, many have complained that after giving up their deed, they were not able to access even the resort they had vacationed at for years.

Timeshare companies will say that salespeople who use scare tactics represent only a few “Bad Apples” so are not typical. Timeshare Accountability Group has heard from more than a few members that were frightened into giving up their deed, told their children will be burdened because of their parent’s decision to buy a timeshare. We’re not lawyers, so we defer to timeshare attorney Mike Finn to fill us in on what happens when you inherit an unwanted timeshare. It’s a topic many are interested in, especially as baby boomers age.

Some of the tactics sales agents use to coerce an “owner” to give up a deeded timeshare week to become a “member” are downright predatory and constitute practicing law without a license. This is what happened to Phyllis, age 67, in her own words (unedited):

I am a victim of fraud. I was asked to attend a breakfast to talk about upgrades on a timeshare I own. I was told it would last only 55 minutes. 4 highly pressured sales people took turns on me and held me for 7 hours, bouncing me into 3 different rooms. I told them I didn’t want it and that I already owned the timeshare over and over again. They said I have to buy into the new and I own my timeshare forever, and that I could never get out of it. They said my timeshare went bankrupt and I had to invest with them (the new company) or they would go after my children for payment. I had a panic stress disorder attack. I was tired and hungry.  I was tired. In order to get out of there, I signed under dearest. I am a senior citizen 5 feet tall women and he is a 6 feet tall man standing over me stating he was a child of GOD and he can help me then said to me “I am a friend I can tell you the best thing to do only if I signed”. He added the BARCLAYS BANK CREDIT CARD. I was misled to only use the card for shopping that my points would go up and maintenance fees would go down. I never received the card. I never used the card. Now I have a trial date May 8, 2018, to pay their lawyers in the amount of $3446.04. DRI sent a letter stating the timeshare went into foreclosure and I am out of the contract. Since the timeshare and the bank are together I should be out of paying the bank as well? I need help. Could someone give me advice? Can I get someone to go with me and represent me? I am afraid and stressed. Please email me on what I can so as soon as possible. Thank You.

(Submitted to Inside Timeshare)

Our Secret Shopper Experience        

In mid-summer 2018, we went on a “mandatory” update after attending a Diamond Resorts event in Virginia Beach. We are well versed in timeshare methods and had our “ears up” to catch any of the standard tactics they might use to persuade us to convert our two deeded weeks into points.

Despite being ready for the worst, I will openly admit that our salesperson never told us any OVERT lies during our two-hour presentation. He was friendly, polite, and had a long history with Diamond Resorts at various locations throughout the country. He told us where he lived in Virginia Beach (a very expensive waterfront area).  He did not lie to us.

That being said, his words were very carefully chosen, and of course, what he didn’t tell us was even more carefully chosen. At a minimum, his pitch was misleading, confusing, full of half-truths, and in my opinion quite diabolical.  When someone commits a “material omission” is it a lie? That sounds like a question for attorney Mike Finn.

Let’s see how the game is played

Our salesperson pushed two major discussion points:

1 – Vacation Options:

Our sales agent demonstrated what would happen if we gave up our deeded weeks and purchased 5,000 points. He showed us a world of amazing Diamond Resorts locations on his computer screen. He explained these resorts would be available to us with the 15,000 points in total we would have if we gave up both deeds.

He showed us availability on HIS computer. He said things like “Here, let me show you on MY account” and “the system shows ME availability for these vacations for only 3,000 points… look at all of them!” Yes, many were available on many different dates. Wow, the world would be our Oyster.

Now, all that is technically true, but he presented it in a manner to imply that if we converted to 15,000 non-deeded points, we would see the same availability and options we were shown… but he never actually said that. His online Diamond account is a “Special Sales Double Platinum Account” (a descriptive term as there is no such thing as a Double Platinum loyalty level). It shows everything in the system and probably quite a bit more, but did not display what we would have access to using the proposed 15,000 points (for two weeks).

If the buyer is not allowed onto the booking site until after the contract has been executed, you would not see actual availability at your loyalty level until after the rescission period had passed.

If you knew what to listen for, the agent chose his words incredibly carefully to sidestep the issue. This would have misled us if we were not informed shoppers. In my opinion, it was a shameful sales tactic that almost anyone would likely fall for.

I know that none of the locations available under his sales account would be available to someone with only 15,000 points, especially summer weeks in Virginia Beach, which he was asking us to give up. He repeatedly showed us that Turtle Cay was only 6,500 points for a week vacation in July… which is accurate… if you are one of the handfuls of people in the US with status and connections to get access to that level of availability. It is unlikely at the Silver loyalty level we would ever be able to stay there again even if we were to convert to points. He didn’t mention that.

He also gave us pamphlets describing Diamond Dream Vacations (DDV), also known as Holiday Vacations, which we could take advantage of anytime for 3,000, 7,500, or 15,000 points. Each DDV included two airfares at top-notch accommodations. One package included four days at Diamond’s Mystic Dunes resort along with a five day Caribbean cruise for only 7,500 points.

For those not familiar with points, maintenance fees for Silver level are about $.20 per point so if the Dream Vacation requires 7,500 points, the trip would cost $1,500. Multiply 7,500 points times $.20. Always do your timeshare math. Four nights at Mystic Dunes, two airfares and a five day Caribbean cruise for two for $1,500 is a GREAT deal! It even included rental car discounts.

After submitting this article, Pete explained that these great deals really do exist. I thought they were completely bogus. He said that since these packages are for the purposes of selling points, they are available to anyone who purchases as a “sweetener” or to existing members in an effort to sell more points.  

Apparently, tremendous bargains are always promotions. Our sales agent never said Dream Holidays were promotions that would require a sales session. He said “These packages are available anytime” to use his exact wording. Again, he didn’t lie… he just didn’t present an important fact.

2 – Financial Justification:

He presented a very complex 10-year financial analysis showing how it would cost us far less over ten years if we converted to points, even though he wanted us to drop more than $75,000 for 15,000 points, which would have included giving up our two deeded summer weeks. He did not know that I used to be a financial analyst with IBM. I worked on billion-dollar transactions. His spreadsheet was malarkey, and even I couldn’t follow it. Once again, he was not lying; his analysis was just crappy… which is quite common as financials go. Of course, we were not given a copy of any of his figures. When we tried to take it, he whisked it away.

All told, I doubt other salespeople would consider our sales agent a “Bad Apple” as he didn’t tell any lies. He did not mention any bogus programs (e.g. “you can pay maintenance fees at $.30 per point”) or other false claims. In fact, our sales agent is probably a shining example held up for other salespeople to emulate: nice, amiable, well dressed, 6.5 feet tall with 12 extra teeth in his smile.

After we firmly said no and started to leave, we were sent to a manager to “check out.” This person was quite reprehensible. He showed us further discounts off the $75,000. He spoke about the “investment” we would be making, what our “Equity” would be out of the gate, and how our “Equity” would grow over time. Our “investment” would only go up in value.

I got quite angry and blew up at him at this point, calling him out directly on those misrepresentations. His eyes flew open wide as he backtracked, “When I say Equity I mean your equity in future vacation time and how your vacation time would become more valuable as you learn how to use the system wisely.”

He claimed he never said he was speaking about a financial investment and not to put words in his mouth but he actually said these things with no qualifiers until he was pressed to do so . My wife loudly told him off and we got up to walk out. He asked why she was being so rude. In a sick sort of way, it was funny, really.

As our experience shows, a “Bad Apple” is in the eye of the beholder.

Contact Inside Timeshare if you have a story to share. Our standard disclosure is that we know there are honest sales agents selling the product honestly. Deceptive agents harm honest sales agents too. Our concern is the number of agents “pitching heat” to sell points could lead to a decline in sales unless acknowledged and addressed.

Contact Secret Shopper Coordinator Pete Gibbes through Inside Timeshare if you would like to become a Secret Shopper.

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://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 to our secret shopper and to Pete Gibbes the coordinator for this week’s report, these do help others to be aware and of what to expect when they attend any presentation. As the old saying goes,  “To be forewarned is to be forearmed.”

One thing is certain, purchasers of timeshare in Spain do have the full protection of the law, misrepresentation of the product is not tolerated. We also know that many other European countries are reviewing their own timeshare laws in accordance with EU Timeshare Directives designed to protect consumers, many are also looking to Spain and may just adopt their legislation. For too long the timeshare companies have had the upper hand, but the tide is turning.

If you have any comments or would like to share your experiences use our contact page, we would love to hear from you.

Do you have a problem with your timeshare membership, or need to know about any company that has contacted you or you have found?

Again use our contact page and we will get back to you and point you in the right direction.

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.

Nordic Consulting, Company Participations: More Readers Send Information as a Warning

Further to our previous articles on the Silverpoint Participations and Nordic Consulting Canary Islands SL, today we publish the experiences of one reader from Scandinavia, taken from the many enquiries received in the past two days. It explains how he was sold the these “participations” and has since been contacted by Ali Farhoud from Nordic Consulting. We have slightly changed certain details to keep the identity of our reader private.

Back in 2017, our reader attended a meeting with Silverpoint Vacations, the representative was Alex Farhoud, another brother of Ali. The scheme was explained to him and he was led to believe that he was buying a specific apartment at Beverly Hills Heights, part of the agreement was that he would receive an income from the rental of the said apartment and eventually be able to sell.

After some time, he eventually signed the contract and parted with over 150,000€, along with the purchase contract was a rental contract with Silverpoint Vacations, the client left in the belief that he had a good deal.

Then in 2018, Alex Farhoud made contact, our reader was informed that the rental contract had been cancelled and new less favourable conditions had been presented. In order to fix this Alex Farhoud demanded a further 10,000€ fee. Our reader fearing the loss of his “investment” duly paid. The new rental contract was with Excel Hotels and Resorts. He received an outline of the new rental contract, which to some extent the original conditions that they had initially agreed to.

Nearly a year later he was once again contacted by Alex Farhoud, this time it was stated that the purchase contract they our reader had signed was not valid. The reason being he could not get a title for a product that was essentially made up of timeshares!

Enter Nordic Consulting and Ali Farhoud, Alex Farhoud referred our reader to this company with the proposal that Nordic Consulting would instigate legal proceedings to have the contract with Silverpoint nullified, plus claiming back what they had initially paid, but in double. Obviously there was going to be a fee for this, that was estimated at over 30,000€. Our reader has had repeated calls from both brother to pay and get the process initiated. But our reader has not done so, one reason is that he has received no explanations or clarification in writing.

Our reader has also received a letter from Silverpoint informing him that the process of obtaining title was moving on and that all units had been cleared of timeshare owners. Apparently a “certificate” confirming that all 52 weeks in the unit purchased were clear. Our reader would then be called to Tenerife to sign the title.

Our reader is now so confused, can he believe or trust Silverpoint?

Can he trust Nordic Consulting, his brothers company, especially as it was Alex Farhoud who sold him the product in the first place?

This is why our reader turned to Inside Timeshare, he had nowhere else to turn, he didn’t know who to trust. After lengthy discussions we made a recommendation and our reader is now discussing his options with a leading law firm in this field. It will be sometime before we will be able to give you an outcome, but we are sure that his problem will be resolved to his satisfaction.

Have you had dealings with Silverpoint, either the “investment weeks” or the “company participation scheme”, have you been contacted by Nordic Consulting regarding these?

Have you been contacted by JB Legal / SIM Legal and Jeroen Martijn Brussel, (See article published 28 Jan 19), along with Walker Padron Perez, with a similar story?

If so, get in touch with Inside Timeshare, let us know your experiences so that we can keep these warning going, we will also offer free and impartial advice on what options are open to you.

Start the Week: Latest News

Welcome to the start of another week in the world of timeshare, we begin with some news being passed around various forums regarding Anfi. As we know Anfi is contacting members to change their contracts, but the latest is rather disturbing.

The change in contracts is to try and bring them within the law, the new contracts will be for a maximum of 50 years, with apartment numbers and week numbers being allocated to the floating week contracts, although they will remain “floating”.

According to information received, the new contracts will also penalise the members for “early termination” of their membership. Any early termination of the contract will be seen as a serious breach of contract on part of the member, Anfi will then apply a retrospective charge on the member for “hotel Costs” of around 350€ per night for all weeks used.

They have already used this threat to members who may be contemplating legal action in regard to illegal and missold contracts. This is also the subject of an ongoing legal argument, which has yet to be finally resolved.

Another point that has come to our attention is the number of members who have just ceased to pay their maintenance, especially with the new contracts. It is reported that around 100 members in 10 countries are about to have legal proceedings made against them for recovery of the maintenance fee arrears. Plus to have the mentioned “hotel costs” charged against them.

Another point which is irritating some of the members posting on the forums is the problem of resale. According to many posters, Anfi has the right to refuse the buyer of any timeshare sold privately. Again this is to ensure that all resales go through the resale programme, which we know is not very effective and will only command a very small resale price.

As with any timeshare advertised for sale, the price you see is what the owner believes they will get, remember, when purchased, many were under the impression they were investing in property. The sales staff openly told them it would go up in value, as we know this is definitely not the case.

So what do we make of this change in contracts and the other tactics being used?

Simple, by changing to the new contract, you lose all rights to take them to court, this is what Anfi want, after all it is costing them a fortune in payouts. (Which they will deny).

The threat of the “hotel costs” with legal action against maintenance arrears and making it more difficult to sell privately, is again to stem the tide of a significant loss of membership. This loss hits them in the pocket with reduced income of maintenance fees. After all, they are not selling like they used too, people are very wary of purchasing timeshare today.

Canarian Legal Alliance has issued some figures for the last week of January and the first week of February.

At the Court of First Instance, in Maspalomas, they had 19 (nineteen) victories against Anfi del Mar alone.

There were also 2 High Court wins in Las Palmas, again against Anfi del Mar.

Again at the Court of First Instance in Maspalomas, Palm Oasis lost 3 cases.

Over in Tenerife, The Court of First Instance again found against Silverpoint in 2 cases.

In another First Instance hearing, Club la Costa were the ones on the receiving end of a judgement.

In all a massive 27 victories against the biggest names in European timeshare, the total amount claimed on behalf of clients is over 648,000€ with all contracts being declared null and void.

CLA have also issued this video, which shows their impressive record so far, it was made at the end of 2018.

That’s it for today, join us tomorrow for a very special article, this was received by another timeshare insider after we published the article on the Florida Bill 435, tomorrow we publish Part 1.

If you need any help or advice regarding your timeshare, about any company that has contacted you or you have found either on the internet or advert in any publication, then use our contact page. We will be pleased to help.

Also if you have any comments, views or information you would like to share with other timeshare owners, then again use our contact page, we would love to hear from you.

Friday’s Letter from America

Welcome to the first Letter from America of February, this week we hear another “Nightmare on Timeshare Street” from the Wheat family and their experience with Wyndham, edited by our very own Irene Parker. First a little news from Europe.

Yesterday, Thursday 31 January, at Birmingham Crown Court , Dominic O’Reilly, Stephanie O’Reilly and Eze Europe Limited, appeared for sentencing. As we know they had faced many charges of unfair trading practices, misleading consumers and many more. On checking the courts website this morning, nothing has yet been posted, but Inside Timeshare has emailed the court for confirmation of sentences and we are waiting for a reply. As soon as this comes in we will be publishing on these pages.

News came in this morning regarding another case involving Diamond Resorts in Tenerife, Canarian Legal Alliance originally had a case in which the Court of First Instance found in favour of Diamond. They instantly appealed this decision to the High Court

The High Court reviewed the case and ruled that the First Instance Courts decision was flawed, they immediately overruled the first court’s ruling, as per the Supreme Court rulings. They deemed that all 5 contracts were illegal and declared them null and void, they also awarded the client 100% of the purchase price, plus double the deposit paid within the 14 day cooling off period, all legal fees and legal interest. This client will now be receiving over 25,000€ and can now enjoy a timeshare free life.

Now for this weeks Letter from America.

The ‘Take Away Timeshare Close’

By a Wyndham buyer

February 1

By the Wheat Family

Introduction by Irene Parker

Inside Timeshare has heard from 671 families. Like a broken record, the member reports being told “I can’t believe that last salesperson sold you this!” You should have never bought:

 

  • So few points!
  • The wrong package!

 

Understand that this is a tried and true sales technique. I spent 30 years in sales selling in a number of industries, but can’t recall using this technique unless I felt the sales agent really did sell the buyer a wrong product. For example, as a stockbroker I would run into a young person’s 401K funded with a fixed income product. In timeshare, it’s used as a ploy. If both sides of the supposedly wrong/right product sell against each other, it means no consumer should buy the product. It’s not unusual to hear, on the same day, from two different members, Sales agent A said I should not have bought Product 1 while sales agent B said I should have bought Product 1. It’s called the Take Away Close:

The Take Away Close really takes some time to master. Though it sounds simple at first, the real secret is learning when to use it. The danger is always using the take away close and having a customer agree to purchase a lesser product when they were close to committing to a larger sale. From The Balance Careers

https://www.thebalancecareers.com/the-take-away-closing-technique-2918597

The Wheat Family Explains

The motive behind the ‘Take Away Close’ is to make the customer/prospect feel like they are missing out on something they should have been entitled to and then make them spend the money so they feel they are getting their money’s worth.

We experienced this sales ploy. I wonder how many other people fell for it too.

We bought a Discovery package (200,000 points) for $1,944 at Wyndham’s Great Smoky Lodge at the beginning of 2017. A credit card was opened and the purchase charged. When we tried to use the Discovery package for Florida in July 2017 it did not work. There were restrictions on when we could reserve. In August 2017 we tried to reserve in Myrtle Beach. We tried a third time at the beginning of 2018 for the Smoky Lodge. We were told it was full so we paid for two days ourselves. That is when another salesperson, JR Renteria, said they had 64 vacant rooms so we should have been able to reserve one. He said the problem was because of the Discovery package we purchased. Although Wyndham would not be able to reimburse us, they could give us a free week certificate (which turned out not to be free). Mr. Renteria advised us to upgrade so we would not have this lack of availability problem again.

With an upgrade we were told we would be VIP members and that the original credit card that was opened for our first purchase would be upgraded to a Gold credit card which we could use to reserve when and where we want to go, any day.  They said we could get 50% off cruises and restaurants. Other family members could make reservations in their names. Mr. Renteria said if we upgraded they would roll the original 200,000 Discovery package points over for the next year. Renteria gave us our documents after we signed the new contract, but told us to wait for the Gold Card and the Silver VIP card before we tried to book anything. This effectively dodged the contract rescission period. He told us we should receive the new cards in about a week. It took around three to four weeks before we received the VIP card. We still have not received the upgraded Gold Card. We were told we had six months to pay in full with no interest.

We bit and got bitten for $18,000.

Another strange thing was that Renteria said he wanted us to write a note saying the first reps, Carol Finch and Cyndy Vdaw, did not cover everything properly for the Discovery package. Maybe this was part of a scam, maybe Wyndham actually kept a copy. Either way, we wrote a note saying we did not understand everything on the Discovery package deal.

After the upgrade we tried to reserve a room to attend a wedding in Atlanta. Wyndham told us we would have to reserve two months in advance in order to use our points. (Renteria had said we could book on the day with our new Silver member status.) Wyndham told us that they could reserve a room for $188 on the day we needed it. The sad thing is we could book the same room for the same dates for $108 online.  You would think being a Silver member (VIP) we should have been able to get a better price than a non-member.

Renteria told us we could call him if we ever had any problems getting reservations and he would take care of it.  We tried to contact him but NEVER got a reply to any of our calls or texts.

We called Carol Finch at the Discovery timeshare when Renteria did not return our calls. I told Carol we were not happy and that nothing we were told was true. She said we should not have had to wait two months to reserve a room and Renteria should have combined the two timeshares. She said she would let him know and would call us back that afternoon. We have not heard back. That was the final straw. In this day and age of Expedia, Airbnb and Booking.com, don’t buy a timeshare. That’s my takeaway close.

But that’s not all!

To make things worse, after looking over the credit card application we found that the application had been doctored. There is an annual income noted under both of our names for $100,000 each.  However, $100,000 is what we may make combined, not individually. I have a copy of the credit card application as proof. My writing is very distinctive. I filled out the whole form, yet the only place that was left blank was filled in by someone with a much scruffier handwriting than mine and he wrote another $100,000 to double our annual income. We sent this obviously doctored form to Wyndham, but they did not even acknowledge it. They chose to focus on the parts of our complaint that they could reasonably deny because the lies were verbal and can’t be verified. Wyndham conducted an ‘investigation’ into our allegations of concealment and omission. We were informed, somewhat predictably, that their investigation had found that our allegations were baseless and the contract was properly executed and legally binding. I suppose I’ll go and ask the drunks to guard the bar for my next trick.

Other representations we feel were unfair and deceptive:

  • They did not say we were actually buying a timeshare. They called it a vacation ownership or something like that.
  • They said they would help us rent so we could earn a profit.
  • They said maintenance fees would never increase.
  • They said we could call every six months to continue our interest free rate.
  • They told us our purchase would give us more reservation rights than it actually did.

Do yourselves a favor and stay away from Wyndham. I imagine Wyndham is not alone, so the best advice is to stay away from timeshare altogether.

Thank you to the Wheat family for sharing their experience. Timeshare companies should want their buyers to feel good about their decision to buy a timeshare. Timeshare is not for everyone and we hope by sharing experiences, buyers will be better informed as to whether the timeshare product is right for their family.

Related articles:

Veteran family Wyndham buyer Kleen family article:

http://insidetimeshare.com/fridays-letter-from-america-38/

Veteran family Wyndham buyer Althage family article:

http://insidetimeshare.com/fridays-letter-from-america-37/

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 for your editing efforts and a very big thank you to the Wheat family for sharing their experiences with us. These real life stories that we publish do show how the industry is in dire need of reform, especially in the tactics employed by their sales agents. As we know when high commissions are the motivation, these agent will say and do anything to get the sale.

If the industry does not do anything themselves to curb these practices, then maybe like Spain, the law needs to take control in order to protect consumers. We do know that many other countries in Europe with a large timeshare presence have been watching Spain very closely and are also now in the process of enacting similar legislation.

If you have a “Nightmare on Timeshare Street” story that you would like to share then contact Inside Timeshare, it is through your own experiences that we hope we can make the industry listen and change.

Have you been contacted by any company with a story that sounds too good to be true?

Are you looking to do business with any company you have found on the internet or advertising in the press or magazines?

Do you want to know if they are genuine and will do what they say?

Are you able to find out for yourself or do you need help?

If you answer yes to any of these questions, then use our contact page and we will point you in the right direction.

Remember doing your homework will save you not only money but also a whole lot of stress.

Have a great weekend and join us again next week.

Maintenance Fees: To Pay or Not To Pay

One question Inside Timeshare receives on a regular basis is in regards to maintenance fees, “should we just stop paying them?”. Looking at many of the timeshare forums the general answer from posters is “yes, just ignore the bills, that is what I did, they won’t take you to court”.

It is also one of the main points that the so called relinquishment / cancellation / exit companies tell their clients, “once you sign up with us, don’t pay”.

Unfortunately, that is not quite true.

Many of the timeshare companies will chase for unpaid maintenance, at first through their own collections departments, but eventually they will pass these arrears to a debt collecting agency. Diamond along with other companies tend to use one of the biggest agencies in the UK, Daniels Silverman, based in Liverpool. MacDonald Resorts use Network Credit Services, based in Hamilton, Scotland.

The Ona Group based in Barcelona, Spain, actively chase unpaid maintenance fees, even for resorts they have taken over and the owner ended the contract with the original resort over 10 years ago. Ona Group say they have no record of the contract being cancelled and are taking those people through the Spanish Courts for upto 15 years unpaid fees. They use a law firm based in Barcelona called Punt Blau, who say they are are expert lawyers in the field of timeshare. The worst part of this will be the cost to the “debtor”, once the Spanish court has issued the judgement, it will be passed to a UK law firm and go through the County Courts for execution.

Once the debt has been passed to these agencies, you will be dealing with them not the resort, they will also incur huge amounts of interest and legal fees. You also then risk being issued with a County Court Judgement, commonly known as a CCJ. This will also have a very negative affect on your credit rating, preventing you from getting loans and even a mortgage.

Another question that arises from these enquiries is, “has anyone ever been taken to court, if so can you show us the judgements?”

Nobody has posted on any forum that they have been taken to court and lost”.

Well that is not surprising, would you publicise the fact that you have had a county court judgement made against you?

Agreed, it is not always taken to court, in most of the cases the person will give in to the threats of the debt collectors and pay. After all many of these owners are getting on in years and just want out, but they also have old views on debt, the stigma of being taken to court is a definite NO.

For the past few years Inside Timeshare has been highlighting the case of an elderly lady, now 90 years old, we called her Mrs B. She paid a company over £5000 to get her out of her MacDonalds timeshare at Dona Lola, this was in 2015. She was told the timeshare was no longer her responsibility and not to pay any further maintenance.

Her “debt” has been passed to Network Credit Services, this has now been handed over to a law firm Shepherd Wedderburn based in Edinburgh.

This firm is threatening to take her to court over the “debt”.

In their correspondence they even sent her copies of court judgements of MacDonald Resorts members who have been taken to court and had CCJs issued against them. They literally boast about it, which to an old lady is in our opinion a very serious threat.

They even place in their letter headed “Claims already issued in England and Scotland”, 4 cases along with which courts, case numbers and the names of the people involved, where MRL has won the claim.

  • Manchester County Court, Mr & Mrs S, case number C8QZ5392
  • Elgin Sheriff Court Scotland, Mr & Mrs C, case number ELG-SG24-18
  • Airdrie Sheriff Court Scotland, Mr & Mrs F, case number AIR-SG76-18
  • Gloucester & Cheltenham County Court, Mr & Mrs C, Case number E8QZ399H

These are genuine cases, these people have been ordered to pay and now have the dreaded CCJ on their credit files. All because they believed what they were told or read on various forums by idiots who have nothing better to do than give out bogus information on subjects they know nothing about.

There are ways of being rid of your timeshare, not paying your maintenance fees is not one of them. It may have been in the past when non-payment after 3 years the timeshare was repossessed, it may still hold true for the smaller independents, but for most of the big timeshare companies that is no longer the case.

If you have any questions on this subject and would like to know what your options are for relinquishing your timeshare, then use our contact page and we will point you in the right direction.

Friday’s Letter from America

Welcome to this week’s Letter from America, today’s article is from another new contributor, the Kleen family, who we welcome to our pages. They explain their own experiences and show how the lack of a secondary market can harm families. So on we go with another in the series “Nightmare on Timeshare Street”.

A Wyndham Worldmark Member Offers an Analysis

Families Harmed by No Secondary Market

There is no secondary market for timeshare ownership. No one wants to buy a timeshare, so owners have trouble getting rid of one.

https://thriftylittlemom.com/2015/06/25/should-you-invest-in-a-timeshare/

By the Kleen family

January 18, 2019

There is something inherently wrong with a product that cannot be sold or sometimes even given back, especially a product purchased for thousands of dollars. A lifetime is a long time to live without experiencing an adverse life event necessitating a need to sell. Wyndham states in their annual 10-k report that a viable secondary market is a risk to their investors. There is no mention of the risk to their customer stuck with their product that has virtually no secondary market.

Friends of ours in good standing with Wyndham received a $.36 per point buyback offer from Wyndham Ovations, which they accepted. The Wyndham Ovation program is Wyndham’s voluntary surrender program available to members in good standing. When we initially contacted “Wyndham Cares” about our medical hardship we had hoped for a similar offer, but never heard back. We have an outstanding loan, so are probably not eligible.

Timeshare points dramatically lose value. To compare, think of a house purchased for $100,000 that could only be sold for $11,666. That’s what $.36 per point would translate to for what we paid at $2.50 to $3.50 per point. They tell you think of your timeshare as a second home, but what home purchased for $100,000 would you buy that had a resale value of $11,666?  What would happen to the housing market if virtually no secondary market existed? Too many families are being harmed. If you own a home with a loan, you can still sell the home.

We purchased our Wyndham Worldmark timeshare in 2011.

Our son Matt believes it is imperative that veterans be provided more disclosure. The housing market requires veterans be provided greater disclosure, like on HUD loans. Especially for active duty service members, who can get transferred or sent overseas, the lack of a secondary market is of real concern. “In the case of my parents, they would have been eligible for the Armed Services Vacation Club, which Wyndham runs and operates. This would have been a much better program for them. My father even told the sales agent he was a veteran,” said Matt.   

In 2016 we wanted to help Matt. Matt is totally disabled, now living with us along with his daughter. The fact that not only is this timeshare worthless, but we are held hostage by it, prompted us to write this article hoping others will understand that timeshares are worthless, should you need to sell.        

In 2015 we were looking forward to enjoying our retirement and a timeshare seemed a good way to do it. This purchase fell far short of that. Every time we went to a resort, the staff enticed us with offers of gift cards and money to attend “owner updates” which were just other chances to use high pressure sales. There was never anything presented about updated information.

They always told us that our points would never lose their value. Salesman told us that our previous point level was worthless, and could only be rendered of value by buying more points, explaining we would have a much better chance to get where we wanted to go, when we wanted to go, only if we purchased additional points.

More than eight months ago we contacted WorldMark/Wyndham Resort Development to request a hardship release. We have called and contacted Wyndham several times, but never received any answers. A manager said she was going to do her best and get back to us. Not one word received.

We are full time caregivers for our son and his daughter. We can’t use the timeshare as originally planned.  Our two dependents require financial, medical, and emotional support. Our son needs special furniture. Traveling by car or plane is nearly impossible due to his lack of mobility.  Since they have never contacted us about our hardship request, we add that to our “lack of customer service” complaints.

Sales agents always presented offers in a very confusing way. We had to ask questions again and again and have them repeat their answers as we tried to get clarification on certain things. Sometimes we just gave up. The sales presentations always lasted longer than the promised 60-90 minutes. We would end up leaving because the salesmen wanted us to sign statements about the cost of points in the future if we did not buy right then. They got very nasty when we refused to sign.

The salesmen never told us that upgrading was mandatory, but they pressured us greatly to upgrade. We were able to get away and use the program a few times this year. It is not an easy thing to do because of the responsibilities at home, but we were able to get away for a few days at a time for respite. Most of these stays had to be around when Wyndham had availability, so trips were not always convenient.

We hope our article reaches the eyes of those considering a timeshare purchase. We question why anyone would spend so much money on an “asset” that is really a liability if even the timeshare company does not want it back.

If you know what you are buying is worthless, should you need to sell, and still are comfortable with your purchase, then buy the timeshare. We wish we had known.

Thank you to the Kleen family. We agree too many families have been financially harmed by timeshare’s lack of a secondary market. Contact Inside Timeshare if you have a story to share.

Self-help groups Inside Timeshare feels are not industry influenced.

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/

 

That is it for this week, join us on Monday for news and information on the world of timeshare, have a great weekend.