Over the past few months Inside Timeshare has been receiving many enquiries about two companies based in Tenerife and operated by names well known to Silverpoint clients. We refer to the Farhoud Brothers, along with their respective companies, Viking Real Estates & Consultants and Nordic Consulting Canary Islands. One thing that is common to all the enquiries is that the clients were originally sold their “timeshare products” by the Farhoud Brothers or ex-Silverpoint salesman who now work for them. So what are they now offering their “old clients”?
Firstly let’s look at Viking Real Estates & Consultants, this company was founded by Mike Farhoud around one year ago and is based at C.C. Palm Beach Local 19 Avda Rafael Puig LLuvina 38660 Playa de las Americas Tenerife. According to the website they have the CIF number B76689603.
Mike Farhoud
When checking company records originally, that CIF number brought up the record for a company called Tuscan Garden SL, located at a different address, but the Administrator is one Mike Farhoud. So it looked like he was using another company to operate Viking Real Estates, although recent checks do now show the record for Tuscan Garden SL has now been amended through a change of company name to Viking Real Estates & Consultant.
No problem there, but it is when you look at the sector the company is registered to operate in is where it gets interesting. According to the records, the sector of trade is Restaurants and Food Stalls, nothing to do with Real Estate or even timeshare claims.
Surely, when a company is formed and its purpose is registered in a particular sector, it should be working in that sector, not doing something which it is not registered as doing. The question is, why is the original purpose of the company still restaurants and food stalls yet not being changed to the purpose now, real estate and timeshare claims, is there something to hide?
Let us now move on to Nordic Consulting Canary Islands SL, this company was registered on 17 October 2018, so is only just under one year old. The registered administrator is Ali Farhoud, another ex-Silverpoint salesman, who is now contacting Silverpoint clients with the promise of the return of double their money and cancellation of contracts. All for products he originally sold with his brother Alex Farhoud who is one of Nordics consultants.
Ali Farhoud
One email we have received tells us the clients story, it begins in October 2017,
“when we received a letter under the door from Alex Farhoud (at that time he was working for Silverpoint), that he wanted to see us the next day”.
The purpose to sell them an apartment, or so they thought. What they had actually purchased was the “Company Participation Scheme”.
At the Silverpoint office, Alex probed the couple about their finances and told them he thought there would be no problem for them to afford the purchase. They looked at two apartments and decided on the one being refurbished.
Going back to the office with Alex, he explained all the possibilities open to them, that they would receive 4.5% interest until they were given the title deed, this could take around 3 years before it was ready. But once they received the deed the apartment would be rented out for them with a return of 47.5% of the rental income. Doesn’t sound too bad really!
The cost was over 240,000€, no cooling off period and a down payment of around 5,000€ with the balance to be paid as soon as possible. This was paid within a couple of months.
The next part of the story is where it now gets interesting, in around May 2018 Alex contacts the clients and informs them that Silverpoint was facing “financial problems” but there was a solution.
Alex Farhoud
If they paid Alex10,000€ he would help to get their money out, they duly paid. They were also told that if Silverpoint called:
“We must not say that he (Alex) called us, but we called him”.
This couple then became very suspicious indeed, well I think most of us would with a response like that.
It must also be pointed out that the 4.5% they were to receive for 2017 due in 2018 was not forthcoming, they eventually received it at the end of 2018 after a lot of pressure on their part.
At the end of 2018, they received another call from Alex who told them:
“That they would not be getting the title deed because what they bought was (hidden?) TIMESHARE”.
But low and behold there was a great solution in the wings, Alex’s brother Ali could help them to get all their money back double plus all expenses. All they needed to do was pay over 29,000€ to Nordic Consulting, Ali’s company and all would be well.
Needless to say, the couple’s suspicions were again aroused,
“first Alex sells to us” (this “dodgy” product), “then his brother Ali will help us to get back our money”.
Well, this couple did not fall for it, they are now waiting for their court dates to be announced being represented by an experienced law firm in this field.
It must also be noted that both companies are using court documents especially the Supreme Court Rulings giving the impression that they are theirs, having seen the documents and made the relevant checks they belong to another law firm. This law firm is also the only one to have had any rulings from the Supreme Court.
This story based on email testimony is just one of around eleven received so far.
After much research in the Spanish Courts Inside Timeshare has not yet found any cases related to these companies in either the High Court or the Supreme Court. So the question is do they actually have any cases and doing what they have been promising their clients?
Do you want to know where you stand legally with any timeshare product purchased in Spain, if so use our contact page and Inside Timeshare will point you in the right direction.
Welcome to another edition of The Tuesday Slot, following on from last Friday’s Letter from America on Wyndham’s Canadian Resorts Carriage Hills and Carriage Ridge, Irene Parker highlights the first 30 complaints received by Inside Timeshare. So far we have received 110 which we expect to rise as more and more owners find these articles, one thing is certain they are all telling a very familiar story, deceptive practices by the sales agents.
Wyndham’s Canadian Carriage Hills and Carriage Ridge Unfair and Deceptive Business Practices
An Open Letter to:
Jason Gamel, Wyndham Sr. VP, Legal, and ARDA President
By Irene Parker and 30 of 110 + Carriage Resorts Victims of Unfair Practices
August 20, 2019
After publishing our August 8 article challenging ARDA’s Coalition for Responsible Exit program, I reached out to a Canadian friend asking about Canadian Legacy owner Simon D’s Carriage Resort complaint. The article described six out of eight fully paid Legacy owners not allowed out of their contracts. A seventh, homebound, contacted us, so seven resorts out of nine single-site resorts in the U.S. are not being allowed voluntary surrenders. Lawmakers are not hearing the whole story. Shockingly, in the case of Wyndham’s Carriage Resorts, owners are required to pay maintenance fees or be sued.
While the Canadian Consumer Product Safety Act may seem more geared towards manufacturing, those who take the time to read 110 reports of those held hostage in a timeshare trap, will understand Wyndham and Carriage’s draconian and predatory policies can cause adverse health effects too. Seniors in their 70s and 80s, and even their heirs if deceased are being sued for maintenance fees. These fully-paid owners have watched their maintenance fees double over the years, while their income in retirement decreased.
Carriage Resorts may be domiciled in Canada, but U.S. based Wyndham acquired Carriage Resorts from Shell Vacation Club several years ago. Despite Wyndham promoting their Ovations voluntary surrender program, Carriage owners are held in a predatory grip even when they can no longer travel.
Please take the time to read through over 110 complaints submitted by Carriage Resorts owners, beginning with complaints 1 through 30. Reports 31 thru 60 we will publish Friday. Timeshare buyers were routinely told their timeshare would be easy to sell because the timeshare is real estate.
August 8 article:
ARDA”s Coalition for Responsible Exit Fails Legacy Owners
Mr.Kenneth McKelvey, founder of Defender Resorts and Chairman of the timeshare PACARDA ROC, testified at a legislative workshop held in Tallahassee Florida March 12, 2019, that attorneys and timeshare exit providers are not needed.
“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 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 one that did not have a dissolution policy and a hardship policy …”
ARDA’s position is that the problem of the lack of a secondary market has been solved. A quote from an ARDA lobbyist:
“Their value comes from using it,” the timeshare industry’s top lobbyisttold ConsumerAffairs in January, admitting that points have no resale value while claiming that consumers don’t mind this because the value comes from the experience.
The first 30 of 80 complaints:
Any delinquent owners are being sued for unpaid maintenance fees. Many of the aged owners are finding themselves in a real bind with health problems and limited from travelling anymore. The last thing they need is to be sued. Don and JoAnne
Over the last 10 years, we have approached and been approached by several companies offering to transfer our units. We have probably lost about $30,000 trying to exit. Colin and Mimi
While Wyndham’s CEO Michael Brown is bragging about putting $1 Billion into expanding their timeshare business. If that is not the epitome of corporate greed, I don’t know what is! Cheryl
I wrote and told them they were heartless. I have to take my blood pressure daily and my Family Physician asked why it fluctuates so much, as high as 160/80 recently, I told him the financial burden this timeshare is and the nightmare it has become. He has warned me the next stroke might be fatal. This timeshare is like having a noose around my neck. No one in my family wants it. Jeanne
#1 Doug M
Twenty plus years ago we bought into what seemed to be an exciting package of vacation opportunities. Through the years, our maintenance fees kept climbing and climbing. Now our fees have climbed so high it’s no longer a viable option as they (Shell and Wyndham) have adjusted and changed the rules giving us less and less time with our timeshare.
I am now retired with failing health. I just had open heart surgery and my kidneys have stopped working. I’m on home dialysis. With this, my wife and I have lost the desire to travel. I can no longer swim or use many of the facilities. It is almost impossible to sell. It seems I have to pay someone to take it. Thank you for representing our views.
#2 Greg and Christiana
Hi Irene,
My wife and I have been owners at Carriage Hills Owner since 1999 and have enjoyed many vacations that we shared with friends and family. A few years ago we moved to British Columbia. We can no longer use the resort with any frequency so looked into selling. Much to my surprise, I came to the realization that there are zero markets for these timeshares. There are 100s listed for sale! Some are even willing to pay a lawyer’s fees for the transfer and others offer a year or more paid maintenance fees. People are willing to walk away from their investment, in my case, around $17,000. We are willing to pay lawyer’s fees and also pay a few thousand in maintenance fees just to walk away. Very few owners have been able to get out of this. I have spoken to the Board of Directors, people at Shell Resorts and Wyndham without any solution.
This desperation has fueled scam agencies that are willing to take our money with false promises that they can get rid of it. People are getting scammed out of $1,000s of dollars.
It seems that no one is willing or able to help owners. Couple this with the rising maintenance fees and, to my horror, the knowledge that our Board, overseen by Wyndham, is actively suing elderly owners in arrears on fees who cannot use the resort due to health or sell due to no market. They can’t give it back to Wyndham because they don’t want it.
Please, we need help. This is a major crisis just waiting to explode.
Sincerely,
Greg and Christina
#3 Stefan J
I have been a Carriage Resorts owner for 20+ years. We converted our weeks to points a few years ago. At first, the annual fees were quite reasonable. We used the weeks yearly as our boys grew up. I have divorced and can’t use the points anymore. I am 68 years old and about to retire. The maintenance fees are $1,500 a year. It seems impossible to exit. I don’t want my boys (who did not even sign the contract!) to worry about this liability. I don’t mind spending some $$ to get out but I have heard all exit companies are scams.
#4 Lori and Roy
My husband and I bought our timeshare at the beginning of our relationship seeing it as a great investment. Our situations changed when I went back to school and became a teacher. I now do not travel very much as I don’t enjoy travelling on the March or Christmas break. I need that downtime for sanity. We were also given my uncle’s timeshare so we now own two.
Last year we were in arrears. I called the resort to ask about selling. In the past, at Carriage timeshare presentations, we were offered timeshares that were ‘returned’ so I assumed they would help me get rid of the timeshare.
I do not have the money to travel or pay my dues. Wyndham and Carriage have made it impossible. That just seems crazy. “We have a great option for you, but you cannot know what it is or how much it costs unless you spend some money to come and hear us tell you about it.” I am not spending more money. That is insane.
I followed all of the information on their site about resale but did not find any help. Lots of organizations offered to help if I gave them a couple of thousand dollars upfront – really?! I have listed everywhere and tried to give it away and I still can’t get rid of it. I have no idea what to do. I borrowed the money to pay off the dues for this year, but still have not paid that loan back. By the time I do, the next dues will be due!
#5 Mel and Anth
Good afternoon Irene!
My husband and I own at Carriage Hills. We bought an every other week (red) November 2000. While we did have some really nice vacations we haven’t been happy with our exchanges in close to a decade. We’ve listed it with timeshare exit sales companies and lost money. We’ve purchased another timeshare with the promise (in writing) that they would take Carriage Hills off our hands. Later we found out that Carriage Hills could not be sold to a Corporation and we were still on the hook and now we have another timeshare to boot!
We’re frustrated and at a loss. We thought about walking away but learned that it affects the rest of the owners and our credit, so we know that’s not an option. We reluctantly pay our dues and exchange for a place that is worth far less.
We dread the idea of passing this burden onto anyone else. If it wasn’t a lifetime (and beyond) deed, it may be worth owning, but as a lifetime deed, it’s a curse.
Thank you for listening. I pray that you’re able to help us all find a way out.
Melissa
#6 Don BG
We bought a timeshare from Carriage Hills. We have a liability, not an assist. We can’t give the timeshare away or sell it because Wyndham will not approve any transfers. It is taking up to six months to make a decision. No other business in the world is this slow. As we age we would like to get rid of this liability we paid big bucks for. Wyndham could resell but instead insists on sending collection agencies to older people who no longer use the resort or can afford it, yet they rent it out to non-owners telling us that it is all sold out.
In the US some resorts take back timeshares or resell. We just get grief. I buy a car and yes I take a loss when I resell it but I can still resell. A timeshare is worth nothing the moment you buy it because no one wants to deal with these crooks. How this is allowed to happen in Canada is beyond me. Where are the people who will stop this evil?
Any help you can give is greatly appreciated.
#7 Lillian
Hello Irene – my husband and I own at Carriage Hills and at Carriage Ridge. We had the opportunity to use the facilities from time to time but that has changed since we now live in Prince Edward Island, a 19-hour drive.
What I am learning is frightening.
When we bought in 2001 we were assured that when we no longer were able to use our timeshare, there would be no problem – the company would purchase the unit back from us at fair market price – which was predicted to skyrocket – and we would have had all the travels we wanted in the interim.
Exchanging is getting more difficult.
The maintenance fees have skyrocketed to the point where it is cheaper to stay in a hotel or Airbnb. Communication from the resort has been spotty at best and basically non -existent from Wyndham.
We would feel much more comfortable not to have to worry about our children, upon our death, being responsible for our purchase made so many years ago, sold to us as being a wise, wonderful investment.
It does not feel like an investment with the maintenance fees that are now well over $1,000 per year plus additional SVC/RCI required membership. We set aside money every month so we aren’t hit with the huge maintenance payments due in November – just short of Christmas.
I believe the timeshare owners are entitled to an exit strategy as a first step in making the situation not so worrisome for owners who want to move on or whose travelling days are over.
Thank you.
Lillian L
#8 Leslie W
Good Day Irene
We purchased our unit back in 2000 and have had some nice vacations.
We were advised by the salesperson that this was just like investing in real estate. We could sell our unit at any time (and the implication was that it would be at a profit).
With escalating Maintenance Fees and changes in life conditions, we no longer wish to own this. None of our children would be interested in it, nor could they afford it.
I have had many sleepless nights trying to figure out how we can get out of this. I and many others are willing to WALK AWAY. We certainly DO NOT want to burden our heirs with this ridiculous responsibility. I only hope we can find a resolution.
Best Regards,
Leslie W
#9 June R
Hello Irene. I want to support your advocating for a timeshare exit plan. I have been a deeded owner since 2002. I enjoyed my experiences but I am significantly older and my circumstances won’t enable me to continue paying maintenance fees into infinity. I have paid my fees every year without fail.
Thank you.
#10 Bill S
I have two deeds. I would like to get rid of one of my years.
#11Natasha C
My husband (at the time) and I purchased our first deed at Carriage Hills back in the late 90’s. We were told it was an investment that could be willed, resold or deeded back if we no longer wanted or needed it.
After a couple of years, we received a call to come to the resort for a sales presentation of the points program. We attended with the idea of selling it back because we were under the impression we could. Our maintenance fees increased yearly.
In 2011 we had our first child. Our priorities changed. I started to feel that we should consider deeding it back. We divorced in 2019. I am now desperately trying to get out of my deed.
I called Wyndham when I learned of the Ovation Program. I was informed by the Representative that Wyndham was not taking back Carriage Hill deeds but I could look at posting the deed for sale as a listing on Kijiji or our Carriage Hills Home Owners Association Website. The majority of the postings were for $1. I was gobsmacked with the sudden reality of my situation.
I believe that Wyndham must be renting Carriage Hills units out on various external travel websites and at a fraction of the cost, it would be for me to list to rent or sell my unit. I also now start to question that if my timeshare is not-for-profit but owned and managed by Wyndham, is that not a conflict of interest?
I’ve tried reading and understanding the Time Share Agreement and other contracts that hold me bound in perpetuity to this fractional ownership but that honestly make my eyes crossed. Delinquent accounts are taken to court and then not only have to pay the fee but also the costs to have the litigation due to delinquency. I’m considering bankruptcy but being self- supported and with an 8-year-old daughter, I simply do not want to go that route. Some members have written local MPs but it seems to go nowhere.
I’m thankful that I’ve found an ear to listen to my situation. This timeshare is literally the first thing on my mind when I wake and the last thing on my mind before I go to sleep. I feel ill that I’ll need to go another $1300 in debt just before Christmas so I don’t get myself in “trouble” with Wyndham. The hardest part is that I know they are a huge entity and could take my deed back and benefit from it more than the trouble it causes me.
Thank you for your time,
#12 Natalyn
What do we need to do?
#13 Irene B
Hello Irene, My Carriage Hills Deed I purchased in May 2002. I was so very proud of this purchase, but now very upset, sad and anxious. I don’t know what I own, except a piece of junk no one wants. I wanted to sell as my life has changed as is the case with many. In the past year, I have seen people giving them away or paying to give them away. Our maintenance fees have increased from $568 to $1368.
I’m worried for my daughter who has to take on this burden. I feel I was very misled by the sales team back in 2002. So much has changed and not for the better. I just want help to exit my timeshare. This is creating lots of anxiety for me.
Irene B
#14 Anne C
Dear Irene
The Carriage Hills/Ridge exit situation for our family is terrible. My husband suddenly became extremely ill in 2005 and has been living in a nursing home ever since.
The purpose of purchasing the 3 timeshares was mainly for vacations in retirement. Now that we are senior citizens, we are unable to fulfil this dream because he is unable to travel. He was unable to work from the time he was age 60. We could not save money for retirement. Once he got sick we had to pay the nursing home fees in addition to my living expenses. Therefore we cannot afford the maintenance fees which have increased drastically. We need to exit from the timeshares immediately to avoid having to pay maintenance fees.
Is there a way to give away the timeshares and not have to pay any more fees?
Sincerely,
Anne C
#15 Sharon H
Hi Irene,
I read your article on the non-existent exit strategies at our resort. We bought into Carriage Hills over 20 years ago. We were told that as deeded owners, the property would increase in value as we would OWN the property. We paid our maintenance fees but rarely used it.
My husband has been diagnosed with cancer and we are just realizing there is no way to get out of this mess. Our children don’t want anything to do with it but they will be saddled with the payments. How can this be? I thought that when we died, that would be the end of it. I am worried about the future and how I will manage the maintenance fees, especially for something we don’t use. I have tried to rent it out at prime time but was unable to do so.
Thank you so much for raising this issue. There has to be a solution out there. How can the law allow you to own something in perpetuity (with no secondary market)??
Sharon H
#16 Liz A
I bought at SVC Carriage Ridge in 2003 when I was close to retirement & able to travel. Now I am 77 years old, single, disabled – cane, walker, wheelchair in airports, on pension. I know that EXIT is a must in the next 5 years.
Systematically, unit value has been eroded. Terms have been changed without consultation or notification. Access to available exchanges has been poorly served by SVC web & RCI & II. Calling to book always involved up-selling. Stays at resorts often involved “updates” & the agents clearly are trained to focus on SALES & Up-Selling. My experience at Wyndham Panama City reached a new LOW – check-in delayed & parking tag withheld until we agreed to attend when we clearly stated that we would NOT buy anything new.
In addition, Wyndham competes with Owners underselling rental opportunities on the open market because they have marketing access; pockets revenues and bypasses accounting for local revenues & is not held accountable by our Boards. They avoided “late payment” fees when maintenance fees on the units they hold missed the payment deadline – paid a single $100 late fee when they should have paid $100/unit. The By-law has been changed to % late fee which harms all the other owners. Their reps at AGM glibly stated that “if there was money to be made they would have maintained the Sales Office.”
The Ovation (exit) available to other owner groups has been withheld to CR & CH Owners. They bought back defaulted deeds at the time of the purchase of SVC to increase their holdings from 4% to 10% & assure “control” AND they (in theory) claim “developer” 4x voting power although they claim they do not exercise that option. How can a secondary owner claim developer: status when all developer units had been sold? It seems they may have been selling points & other locations memberships from our sales centre and closed quickly – No notice to local members.
* SVC (Shell) abandoned owners at CR & CH to Wyndham’s cavalier attitude & exploitation of OUR resorts. Yes, they bring management expertise, but they have used their access to line their own pockets; they do not serve local Owner Member interests.
Our local Boards have taken the position that they only “manage” the resorts on behalf of Member-Owners. They have done very little to defend Owner interests in relation to the parent companies – SVC & now Wyndham. Customer/Owner Services is a farce; all the reps are Wyndham employees defending Wyndham interests.
#17 Julie S
Owner, Purchased: July 2004, Mortgage: $14,931.00 at 13.65% interest is paid in full
My complaints are numerous. The inept team at Carriage Hills couldn’t coordinate anything with Shell Vacations Club for years. The last time we used ours was 2010 because it was no longer worth it. We started to sell it back but got vague messages about lawyers’ fees etc., and more invitations to come to sales presentations. We were warned by others it was another sales pitch.
We’ve been “upgraded” to Interval but could never book anything. The cost to work through RCI was more than $200 Canadian, making it more costly. My husband called the office and spoke to someone about the Ovation program – Carriage Hills was not invited to participate.)
The original Purchase was to include a yearly fee of $619 for Annual Basic charge due to the association. Yearly fees are up close to $2000 with both “membership” and “maintenance”.
I looked on websites to book our White Week:
Expedia: Dec 7 – Dec 14, 2019
Studio / no kitchen: $105 per night / $735 week (1250 points)
One Bedroom w kitchen: $153 / $1073 (2300 points)
Two-Bedroom w kitchen: $206 / $1443 (3550 points)
If I didn’t have a $15K investment in Carriage Ridge, I could spend only $1443 Canadian for a 2 bedroom instead of just shy of $2000 each year. There are many parts to why this doesn’t work but it boils down to an “investment” that costs us more per year than someone who didn’t invest.
This was bought with the idea that it could be traded for a vacation anywhere at a great price. The $619 per year “Membership Fee” was going to allow a trade to the equivalent of a two-bedroom in Hawaii.
We haven’t pursued selling after learning how many want to sell.
Thanks for listening.
#18 Don A
Hi Irene,
My wife and I own at the Carriage Hills and Carriage Ridge Resorts near Barrie, Ontario for about 20 years. We have enjoyed our ownership and travelled to many destinations but we are now both seniors. I am 74 and my wife is 67.
When we purchased we were told that these resorts were special in that we would have titled deeds and as such, they could be passed on to our children or could be sold for a profit since they would surely appreciate in value.
Our children have no interest in them. There was a sales office on-site up until about 3 years ago. Apparently, these units have no value to Wyndham so we are stuck. Most units are being sold for as little as $1.00. Our maintenance fees have increased by about $1,000. Delinquent owners are being sued for unpaid maintenance fees. Many of the aged owners are finding themselves in a real bind with health problems. The last thing they need is to be sued.
Wyndham had an Ovation program available to owners of the US timeshare properties, but we seem to not be eligible. We are hopeful that you can bring attention to this dilemma, and that a resolution can be found. Thank you so much for taking up the cause to right this wrong.
Respectfully yours,
Don and Jo-Anne A
#19 Colin and Mimi S
Hello Irene,
My wife Mimi and I have been owners at Carriage Hills for about 15 to 20 years. We have never been satisfied with it because we were given incorrect information when we joined and despite many efforts have never been able to exit.
Over the last 10 years, we have approached and been approached by several companies offering to transfer our units. We have probably lost about $30,000 trying to exit. Carriage Hills management has been unhelpful, even when we showed letters about the miss-information we were given when we first signed up.
We are retiring next year and the exorbitant maintenance fees are just too much.
Hopefully, this can be of help to you and to us.
Thank you so much,
Colin and Mimi
#20 Cheryl C
Good afternoon,
Thank you for hearing our voices! I am a 20+ year owner. We enjoy, use and can afford our timeshare. Over the years the fees rose way more than we wanted and exchanging got harder.
For the first time ever, I attended an AGM in 2017. WOW! What an eye-opener! I had no idea that Wyndham had so much power and we had so little. Wyndham closing the sales office rang some alarm bells as well as owners selling (giving) away for free.
As we became more informed about our situation, I became desperate to find a way out for myself, but especially the elderly owners, those who’ve become sick and those who’ve had financial hardships. It was apparent that not only was it near impossible to give these away but that many owners were falling prey to exit teams who essentially stole their money.
Our Board of Directors has very little power as the cards are stacked in Wyndham’s favour. That situation only seems to get worse every AM as they put their 10% concentrated vote on the candidate of their choice while we scatter our votes among candidates.
Last AGM we were proudly told that we regained our Gold Crown Status with RCI and the next representative from SVC said there is “no market for CH/CR and if there was they’d be selling!”
The attached article is about an 80-year-old couple from Wainfleet, ON. It is almost unbelievable, but this is one of many, many sad stories. We are all in a scheme that means if one owner doesn’t pay, we all foot their bill so we have no option but to send owners to collections for something they cannot use or sell while Wyndham’s CEO Michael Brown brags about putting $1 Billion into expansion. If that is not the epitome of corporate greed, I don’t know what is!
We have pleaded for Ovation but are told it is not available. They referred us to Fidelity (which does not take an upfront fee), but they haven’t sold one of our units in years.
We are desperate and angry and need a solution.
#21 Laura F
Hi Irene,
There needs to be an exit available as circumstances change. There should be some method to sell or turn back the property. We were not advised of this.
How I can support efforts to address this issue?
Regards
#22 Jeanne B
My husband and I bought October 2003 for just over $13,000 at Carriage Ridge. At a meeting, the sales team was excited to tell us that if we bought an opposite year for another $13,000+ we could automatically become Shell Vacation Owners and could change from weeks to points. For ten years it was great even though maintenance fees increased as well as Shell membership yearly fees and exchange fees. We all get older and there comes a time to retire and live on pensions. In the last 15 years, Maintenance Fees have doubled to about $1,200 a year.
I suffered a Thalamic Stroke over two years ago. I am in constant pain on my right side and my blood pressure has been as high as 195/100. My memory has been greatly affected, from spelling, completing tasks, anxiety, depression, etc. I had to leave work. The only income I have is CPP Disability and my husband is on CPP and OAS.
I contacted Wyndham about Ovation. I was passed from one person to the next. Finally, I was told that our Board of Directors does not allow us to use this program. Our Board of Directors denied it and said that it was Wyndham’s decision. I don’t know who to believe. This year someone was interested in buying my timeshare. The buyer wanted to join Shell Vacation and have points instead of weeks but that is no longer an option.
I have been communicating for 8 months now with Wyndham Staff at Carriage Ridge as well as our Board of Directors. I told them I really can’t afford to pay the maintenance fee. I was told I would be sued. The fees were $1,325.11 and it was not in my budget. I wasn’t able to pay. I received a letter from Derek Beaudoin, Canadian ICR Ltd, a collection agency. Finally, I saved up enough money to pay it and was hit with an additional fee. I asked if this could be waived this was the reply I received from Derek.
Mrs. Boisvenue,
The resort has received your e-mail (below) and forwarded it to us to respond. The Home Owners Association will not be waiving any of the remaining balance, $341.26.
Please be aware your arrears continue to accrue interest at $0.28/day.
I wrote again explaining my health and financial situation and this is the email I received from Nanci Shepard, Chairman of our Board of Directors on February 22, 2019,
Hi Jeannie,
After lengthy discussion with my fellow board members, we have unanimously decided to NOT waive your late fees. We are very sorry for your health and personal issues but as you state you have been an owner for 15 years so you are well aware that we put these policies in place for a reason.
We are responsible to make sure the resort runs to above industry standard and we count on every owner to pay their maintenance fees in a timely manner in order for us to do just that.
There will be no further discussions on this matter and we will wait until Derek advises us you are paid and back in good standing.
Nanci
I wrote and told them they were heartless. I have to take my blood pressure daily and my Family Physician asked why it fluctuates so much, as high as 160/80 recently, I told him the financial burden this timeshare is and the nightmare it has become. He has warned me the next stroke might be fatal.
This timeshare is like having a noose around my neck. No one in my family wants it. My adopted son suffers from mental illness and lives on ODSP so he can never afford this.
To sum this up, there is no longer a sales office, our maintenance fees more than double in 15 years, late fees 30% in my case, suing delinquent owners, there is no Ovation program, non-owners pay less, rules change without our knowledge, we pay the Wyndham staff, they make it hard to sell, our kids are being forced to inherit a timeshare, ownership/leadership changed, NOOSE AROUND MY NECK.
#23 Trish M
Good evening
I like many others have been an owner at both Carriage Hills and Ridge for 20 plus years.
The stories we started to hear about people desperate to get out of their timeshare were heartbreaking – the elderly, the sick, the unemployed. And we as owners were suing them for their maintenance fees through the office.
The rates have soared, we paid a huge investment in the beginning and continue to pay maintenance fees – there just isn’t any value in it anymore. Anyone can book off the street while we pay for the upkeep!! Those who cannot afford the fees are being sued!! It is atrocious in my opinion. Our children do not want it left to them. What young person could afford it?
Many thanks!
#24 Jeff M
Hi Irene
My wife and I purchased our timeshare in 2008 at 24 and 23 years old. We were basically sold on the premise that we could “get out of it” at any moment. We are stuck paying over 1000 $ annually for something that has no value. This has been the worst financial decision we have made in our lives.
Thank you,
Jeff M
#25 Wenda M
My husband and I purchased at Carriage Hills Resort in January 2000. We were told that we could sell the units when it became the time that we could no longer utilize it. Now as we age and have developed health issues our travel time has been curtailed. We need a viable exit plan. Our costs of annual maintenance fees and membership fee in 2018-19 amounts to almost $5600. This is not sustainable. No way is our son interested in inheriting our mistake. Our debit is ours not his and he is not on the deed.
We need an EXIT – not just words but an actual plan.
Wenda M
#26 Sue R
Hello
We own 6 deeds at Carriage Ridge and Carriage Hills Resorts. We purchased our units so that we could travel when retired. We use our points well, able to vacation about 10 weeks a year! Our maintenance fees for both the Ridge and Hills are approximately 8,000.00 yearly, plus our SVC club fees at approximately 800.00. Now, knowing we may never be able to “get out” makes our stomachs turn! Never, ever, did we think our children could end up carrying our burden! We are not ready to sell but want to know how we can eventually get out of our commitments without having to go bankrupt.
We would appreciate an acknowledgement that you received our email. Thank you.
Sincerely
Sue R
#27 Tom K
To be provided
#28 Ana N
Good Evening,
I, too, am a long-time owner (15+ yrs) who was swindled into this so-called investment. We were sold this timeshare that was supposed to be something that could give joy to our family. Instead, it has caused us grief and stress when maintenance fees have doubled. This is not something that we would like our children to inherit and they have made it clear that they don’t want it.
In addition, it is not something that I can continuously sustain with my husband who was diagnosed with advanced-stage cancer last year and has been in treatment since.
It seems impossible to sell or even give away. I’ve been looking into selling or disposing of these and reached out to a member of the board who did not even bother responding to me.
We need a solution. We need an exit plan. We need help.
Thank you.
Ana N
#29 Jill M
Irene, I am writing to you with regard to my ‘ownership’ at Carriage Hills. I recently purchased resale time – what a horrible mistake! Not only was I completely misinformed by the seller and lawyer, but Wyndham provided zero information or assistance. My greatest concerns are the heavily increasing maintenance fees and the lack of an exit plan. I cannot and will not pass this disaster on to my executors or trustees.
If there is anything that can be done to assist the owners, we need to know now. Ownership falling into default is only going to continue to harm those of us that can’t get rid of our shares.
Thank you for your time,
Jill
#30 Rocky P
Hello Irene, my wife and I purchased a timeshare 20 years ago at Carriage Ridge thorough Shell Vacation Club. Over the years we have had great use but over the last few years have not been able to use it for financial reasons. We are both almost 70 with no pensions. We contacted the new owners Wyndham regarding an exit and we’re told of the Ovation program but have since found out that we are not eligible. We are also told that our children will inherit this increasing debt. This just can’t be right we can’t even give it away. We are lost at to what we can do.
Anthony and MaryAnn P
In America, parents were paying $600 for an Epi-pen, a life-saving device for children who experience acute asthma. Public outcry resulted in a $200 generic version almost overnight. The draconian policy Carriage Resorts has imposed on loyal customers, who faithfully paid maintenance fees for decades, suing seniors experiencing the stress that comes with ageing, is predatory and unfair. Who would not agree with my statement? Let’s hope lawmakers come to this realization.
Thank you to Carriage owners for speaking up and speaking out. Inside Timeshare will do all in our power to keep this out front to support advocacy efforts.
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.
Thank you Irene, once again we witness disgusting practices by sales agents and the timeshare company fails to recognise that they have a severe problem. It is not just the deceptive practices it is also the age of many of these victims, as we have seen in many cases highlighted by our US colleagues as well as with many of the clients of Silverpoint’s “investments and company participation schemes” this can be clearly defined as “Elder Abuse”. If the timeshare companies are unable to change their practices then is it not time that the law is changed to force them to improve and protect consumers, especially the elderly.
If you have a timeshare problem and would like to know what options are open to you, then use our contact page and get in touch, Inside Timeshare will point you in the right direction.
Welcome to another edition of our Letter from America, this week Irene Parker explores the problems surrounding some Canadian Timeshare owners at Resorts taken over by Wyndham. The article also looks at how Quebec is leading the way to protect consumers in Canada. Much of the legislation is very similar to that instituted in Spain, which as we already know has the strongest timeshare laws in favour of consumers in Europe. It does look as though lawmakers in other countries are looking at and using the Spanish model in their bid to protect consumers, this can only be for the best as the industry has failed miserably in this area.
The Hypocrisy of ARDA’s Coalition for Responsible Exit and Wyndham’s Ovation Program for Carriage Resorts Owners
Wyndham’s Carriage Hills and Carriage Ridge Canadian Resorts
By Irene Parker
August 16, 2019
A follow-up to Legacy Resort owners’ lack of a responsible exit
It’s been over a year since Quebec passed a law in June of 2018 challenging the perpetual nature of non-deeded timeshare contracts. It is hoped Quebec’s model legislation will be expanded to include other Canadian provinces. The law does not apply to deeded intervals, which are considered real property in Canada.
Legislative Revision to Quebec Timeshares
A contract related to timeshare accommodation rights is considered a service contract. You may resiliate your contract for other reasons, and you have other rights and recourses (187.13). The verb resiliation means “To draw back from a contract.” Cambridge dictionary (de résilier un contrat cancelling, termination)
Carriage’s draconian policy surpasses anything I have encountered in America. Wyndham acquired Carriage Resorts from Shell Vacation Club several years ago. Carriage Resorts lack of an exit policy is even more disturbing, considering the new president of the timeshare lobby ARDA, is Jason Gamel, Senior VP, Legal at Wyndham. ARDA’s position is that the problem of the lack of a secondary market has been solved by programs like Wyndham’s voluntary surrender program Ovations, and ARDA’s Coalition for ResponsibleExit. A quote from an ARDA lobbyist:
“Their value comes from using it,” the timeshare industry’s top lobbyisttold ConsumerAffairs in January, admitting that points have no resale value while claiming that consumers don’t mind this because the value comes from the experience.
A RedWeek post from a Carriage Resort owner found on the internet (unedited):
I was duped into a gifted timeshare from my father. The story is sad…he is retired and was desperate to get out as he lost most of his retirement money in 2007. So he misleads my husband and I. I contacted Ovation to take the deed back from Carriage Hills resort in Canada and they said NO. Referred to Fidelity who advised THEY HAVE NOT SOLD a Carriage Hills unit IN YEARS! 31 units are listed on Carriage Hills website for $1. Many owners are offering $400 gift certificates. Wyndham is the ring-leader. They should offer Ovation.
As reported by a Carriage Resort member to another Carriage member:
By coincidence, I own at Carriage Hills which is the “sister” resort to Carriage Ridge (Simon’s resort) north of Toronto. Both these resorts are deeded timeshares (not points) and unless Wyndham changed their policy and allowed Ovations to take back Carriage deeds, the owners at both these resorts are “stuck” and obliged to pay their fees unless they manage to sell.
The board of Carriage Hills (and I believe Carriage Ridge as well) takes delinquent owners to court to oblige them to pay through a court ruling. The only way out currently is to sell. They are even taking “delinquent” heirs to court for payment of the late fees and say they have been successful. Simon will not be “foreclosed” – they don’t take back any timeshares at all. The owners’ associations at both timeshares cannot “own” any units and Wyndham is uncooperative.
Wyndham took over these resorts from Shell Vacation Club several years ago and at that time also closed the sales office because they alleged they could not sell the units. Since that time they also have stopped taking back units from owners wanting out. This is a Facebook group which could be helpful (https://m.facebook.com/groups/152117225452689) for Ridge and Hills owners. They discuss “exit” strategies and appeals to the board to find a solution for owners who want to exit, amongst other topics.
Unfortunately, I don’t have a good answer for you – at Embarc, because it is points and we are members who own no “real estate”, and because Diamond still takes back points to resell, a member has the choice of 1) Selling at around $10 per point (a fraction of the purchase price), 2) asking Diamond to take back the points or, 3) If they refuse, simply not pay one’s fees and points will be eventually forfeited.
Carriage Hills/Ridge has no such choices – right now, the only thing one can do is attempt to sell to someone else – on Redweek.com, tug2.com or local Kijiji pages. I myself have listed my unit on the Carriage Hills website and am attempting to sell… There doesn’t however, appear to be a similar website for Carriage Ridge owners.
Excerpt of email to Irene Parker at Inside Timeshare from Simon
August 5, 2019
I reached out to Ovations as you suggested. Wyndham Ovations will not accept our Carriage Ridge Resort in Canada. We purchased this floating week timeshare May 2004 for approximately $13,750. We were told at purchase there would be no problem reselling the timeshare.
Under Quebec Bill 178, a service contract can be cancelled under liberal conditions if the purchaser is not getting the benefits of ownership due to medical conditions, availability, or a host of other reasons.
Introduced 18 April 2018 Quebec National Assembly
Passed 6 June 2018
Excerpt from the bill: “You may resiliate your contract for other reasons, and you have other rights and recourses.”
187.13 A contract relating to timeshare accommodation rights is deemed to be a service contract
Quebec’s consumer protection act is not the first time Canada has ruled on the definition of a timeshare. According to a 2017 ruling, the Canadian Court of Appeals defined a timeshare more like a country club than real property.
Spain was the first country to rule that perpetual timeshare contracts are illegal. In Spain timeshare contracts purchased in perpetuity, floating weeks, and points-based timeshares have been deemed unlawful by the Supreme Court.
I attended a Florida legislative workshop in Tallahassee March 12 of this year. Hearing lobbyists explain responsible exits and hardship departments, I learned of two parallel timeshare universes – what lobbyists and developers portray to lawmakers – and what over 900 families report is really happening.
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.
Thank you Irene, one thing this article does show is at least some lawmakers are taking an active interest in curbing the excesses of the timeshare industry and giving them some rights under law. I don’t know of any other industry where the consumer has no protection with the laws in favour of the industry, this must change and we are slowly seeing that happen.
Inside Timeshare would also like to apologise for the lack of articles over the past few weeks, August is usually rather quiet so Inside Timeshare has taken the time to have a well earned rest. All will be back to normal in the next week or so.
Welcome to the latest edition of The Tuesday Slot, as we know Irene Parker has received a subpoena to disclose emails and other documents which she lists in the article. This is a blatant attempt by Diamond Resorts to attack a volunteer who works hard to help others resolve their timeshare disputes, as we all know Irene receives no payment whatsoever for the work she does, neither do any of the other volunteers who have stepped forward to take some of the pressure away from Irene. Please support Irene in whatever way you can.
One thing that Inside Timeshare finds very sad with all this is that a company wants to subpoena one of their own customers, especially to silence one that refused to sign a non-disclosure agreement.
The Subpoena Diamond Resorts sent to me, a volunteer
By Irene Parker
August 9, 2019
Instead of Diamond Resorts, and other developers, acknowledging that they may have a few bad apples, the timeshare lobby ARDA, in cooperation with several developers, has raised $50 million to crush timeshare exit companies, legitimate law firms providing timeshare relief services, and my 81-year-old husband and me.
As a hotel owner and operator, and as an attorney who has represented hotel owners and operators since 1988, I am a regular reader of your publication. At the end of the Mike Flaskey opinion piece, [which appeared in the July 15 issue], you requested comments.
While Mr. Flaskey provides helpful advice for avoiding scams, he and ARDA have chosen to ignore the underlying problem. People wouldn’t become prey for scammers if the companies selling timeshares provided them with a reasonable means of exiting.
There are many reasons people want to sell or otherwise exit; it could be age, changed financial circumstances, changed family circumstances, or simply dissatisfaction with the product that was represented at the time of the high-pressure sales pitch.
(Inside Timeshare article – Six out of eight Legacy Resorts owners have no exit, even for those over the age of 80. A seventh contacted me just before publication, over 80 and disabled, unable to travel.) https://insidetimeshare.com/fridays-letter-from-america-62/
For Mr. Flaskey to end his opinion piece with the claim, “When people invest in vacations, they invest in happiness and a lifetime of memories,” is to be disingenuous. If timeshare ownership is as picture-perfect as he portrays it, people wouldn’t be getting scammed; people are getting scammed because of their desperation over the inability to find a means to sell or exit their timeshare. – Bill Bowen
I work over 40 volunteer hours per week providing straight answers to about 35 callers per week. I have never been compensated and I have nothing whatsoever to do with a lawsuit Diamond Resorts filed against a Florida law firm. Diamond attempted to subpoena the documents listed below.
This is evidence of extreme retaliation because I listened and responded to over 700 Diamond Resort members as they reported unfair and deceptive sales practices. In 2016 and 2017, the Arizona Attorney General’s investigators listened to over 900 complaints from Diamond members, according to what an investigator told one of our member-sponsored Diamond Facebook members.
At last year’s Whistleblower Summit and Film Festival held in Washington D.C., I learned that I am a whistleblower. Most whistleblowers are employees, offered some protection thanks to whistleblower laws. At this year’s Summit, I learned laws protecting whistleblowers often fall short. As an individual, I have no protections, save my readers and supporting members of the legal community.
On Tuesday Charles published my highlights from the 8th Annual Whistleblower Summit & Film Festival held the last week of July. My panel discussed ethics and resiliency after retaliation. https://insidetimeshare.com/the-tuesday-slot-42/
There is no question in my mind Diamond’s intentions are to file a SLAPP lawsuit against me. I am guilty of four of the six points below. According to ACLU Ohio:
A large, well-funded organization may be SLAPPed, but more often, individuals with fewer resources are the victims of SLAPP suits.
Examples of Actions Which Have Resulted in SLAPPs: 2
This example of retaliation goes beyond the call of Pro Bono legal representation so I will be launching a GoFundMe as soon as I receive the narrower in scope subpoena. I have already received a multitude of pledges of support.
Subpoena directed to: Irene Parker who is not a party, to produce the items listed at the time and place specified in the attached Subpoena.
DATED this 10th day of July 2019.
Filing # 92298657 E-Filed 07/10/2019 09:16:51 AM
YOU ARE NOTIFIED that after ten (10) days from the date of service of this notice, if service is by facsimile or hand delivery, or fifteen (15) days from the date of service, if service is by mail, and if no objection is received from any party, the undersigned will issue or apply to the Clerk of this Court for issuance of the attached Subpoena directed to: Irene Parker who is not a party, to produce the items listed at the time and place specified in the attached Subpoena.
Brandon T. Crossland, Esq. Fla. Bar No. 0021542 Primary email: [email protected] Secondary email: [email protected][email protected] Christa C. Turner, Esq. Fla Bar No. 0076627 Primary email: [email protected] Secondary email: [email protected] BAKER & HOSTETLER LLP SunTrust Center, Suite 2300 200 South Orange Avenue Post Office Box 112 (32802) Orlando, Florida 32801 Telephone: 407.649.4000 Telecopier: 407.841.016 8 Attorneys for Plaintiff
CERTIFICATE OF SERVICE
I hereby certify that on July 10, 2019, I electronically filed the foregoing document with the Clerk of the Court by using the Florida Courts E-Filing Portal, which will send a Notice of Electronic
DEFINITIONS AND INSTRUCTIONS
1. The term “document” or “documents” refers to any printed, written, taped, recorded, graphic, electronic, computer materials, or other tangible or intangible matter, from whatever source, however produced or reproduced, whether in draft or otherwise, whether sent or received, or neither, which contains information or from which information can be obtained and which is in Your possession, custody or control, including, but not limited to, the original, a copy (if the original is not available), and all non-identical copies (whether different from the original because of notes made on or attached to such copy or otherwise) of any and all writings, correspondence, letters, telegrams, cables, telexes, facsimiles, emails, text messages, contracts, proposals, agreements, minutes, acknowledgments, notes, memoranda, analyses, projections, work papers, books, forecasts or appraisals, papers, records, reports, diaries, statements, questionnaires, schedules, computer programs or data, books of account, calendars, graphs, charts, transcripts, tapes, or recordings, photographs, pictures or film, ledgers, registers, work sheets, summaries, digests, financial statements, pictures, videos, audio recordings, and all other information where data, records or compilations can be obtained, including all underlying, supporting or preparatory material now in Your possession, custody or control. The term “document” or “documents” specifically includes documents kept by individuals in their desks, at home or elsewhere.
2. The term “computer materials” shall mean any and all files from any personal computer, notebook or laptop computer, file server, minicomputer, main-frame computer, or other storage device, including, but not limited to, hard drive disk drives or backup or retrieved electronic information, including, but not limited to email. All relevant files that are still on the storage media, but are identified as “erased but recoverable,” are to be included.
3. The term “copy” when used in reference to a document means any color, or black or white facsimile reproduction of a document, regardless of whether the facsimile reproduction is made by means of carbon papers, pressure-sensitive paper, xerography or other means or process.
4. The term “communication” or “communicate” means any writing, or oral conversation, including, but not limited to, telephone conversations and meetings, letters, emails, text messages, emails, telegraphic and telex communications, and includes all information
relating to all oral communications and “documents” ( as hereinabove defined), whether or not any such document, or the information contained therein, was transmitted by its author to any
other person.
5. The term “person” means any natural person, any employer, any business entity (whether a corporation, partnership, or other business association), any government or political
subdivision thereof, or governmental body, commission board, agency, bureau or department.
6. “Lawsuit” means the lawsuit filed by DRC against Finn Law Group, P.C., Finn Law Group, P.A., and Michael Finn in the Circuit Court in and for Orange County, Florida and
bearing Case No. 2017-CA-006199-O.
7. “You”, “Your”, and “Parker” means Irene Parker and your agents, representatives, directors, officers, members, employees, attorneys, accountants, predecessors, successors, assignors or assignees, and anyone else acting on its behalf or subject to your control.
8. “DRC” means Diamond Resorts Corporation and its agents, representatives, directors, officers, members, employees, attorneys, accountants, predecessors, successors, assignors or assignees, and anyone else acting on its behalf or subject to its control.
49. “Finn” means Finn Law Group, P.C., Finn Law Group, P.A., and Michael Finn and their agents, representatives, directors, officers, members, employees, attorneys, accountants, predecessors, successors, assignors or assignees, and anyone else acting on their behalf or subject to his control.
10. “Diamond Customers” means any individual(s) and/or entity that purchased, owns and/or holds a Vacation Ownership Timeshare Interest with Diamond Resorts Corporation, or
one of its separately named and operated affiliates, parents, or subsidiaries.
11. To the extent that You consider any of the following requests objectionable, respond to so much of each Request and part thereof, as is not objectionable in Your view and separately state that part of each Request as to which you raise objection and each ground for
such objection.
12. If You object to the identification of any document on the basis of attorney/client or work product privilege, identify the privilege claimed as well as each document for which such privilege is claimed, together with the following information with respect to each such document: a. Date; b. Sender; c. Addressee; d. Subject;
e. The basis on which the privilege is claimed; and f. The names of persons to who copies of any part of the document were furnished, together with an identification of their employer and their job titles.
13. You shall produce the documents requested herein as they are kept in the usual course of business or You shall organize and label them to correspond with the categories in the request.
SCHEDULE “A”
1. Produce any and all contracts, agreements or any other arrangements between you and Finn.
2. Produce any and all contracts, agreements or any other arrangements between you and Finn regarding Diamond Customers.
3. Produce any and all engagement agreements between you and Finn wherein Finn agrees to provide you with legal services.
4. Produce any and all invoices, bills, or other requests for payment from Finn to you since January 1, 2015.
5. Produce any and all documents, checks, or bank statements evidencing any payment from you to Finn since January 1, 2015.
6. Produce any and all documents, checks, or bank statements evidencing any payment from Finn to you, whether direct or indirect, since January 1, 2015.
7. Produce any and all communications and emails between you and Finn regarding Diamond Customers from January 1, 2015, through December 31, 2018.
8. Produce any and all communications and emails between you and Finn regarding Finn’s solicitation of, a referral to Finn by you, or Finn’s potential representation of Diamond Customers from January 1, 2015, through December 31, 2018.
9. Produce any and all communications and emails between you and any Diamond Customers from January 1, 2015, through December 31, 2018.
10. Produce a list of Diamond Customers that were referred by you to Finn from January 1, 2015 through December 31, 2018.
11. Excluding communications where you were requesting that Finn provide you with legal advice regarding articles, blogs, or social media posts that you have written, produce any and all communications and emails between you and Finn that relate to DRC, timeshare, or timeshare owners from March 1, 2015, to December 31, 2018.
12. Produce any and all communications and emails between you and Finn regarding the Lawsuit.
13. Produce all blogs, articles, editorials, commentaries, exposes, FaceBook posts, or other social media content written, in full or in part, by you from January 1, 2015, through the date of the Subpoena.
14. Produce any and all communications and emails between you and Inside Timeshare regarding Diamond Customers from March 1, 2015, through December 31, 2018.
15. Produce any and all communications between you and Greg Christ regarding DRC, timeshare, or timeshare owners from March 1, 2015, through December 31, 2018.
4826-7592-6394.1
Page 7
Our Diamond Member-Sponsored Facebook has over 3,400 members.
We seek to provide Diamond Resort 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.
What the Diamond Resort Owners Advocacy Facebook is not:
If members join our Facebook only to express displeasure, they are better served by posting on Trip Advisor. While venting may make a person feel better, ranting on a complaint site will do nothing to change what we feel are unfair and deceptive business practices, as defined by the FTC and the FBI.
Timeshare Accountability Group™
https://www.facebook.com/timeshareadvocategroup/
Timeshare Advocacy Group™ was launched by a small group of advocates concerned about the volume of timeshare complaints found on the internet directed against Wyndham, Bluegreen, Diamond Resorts, Westgate, Vacation Village and a few others. Disney Vacation Club has almost no complaints. Hilton and Marriott have few complaints.
We hope the lessons learned by consumers who purchased a timeshare product they did not understand will reach the general public so prospective timeshare buyers know what questions to ask before buying or upgrading a timeshare.
We hope the lessons learned by consumers who purchased a timeshare product they did not understand will reach the general public so prospective timeshare buyers know what questions to ask before buying or upgrading a timeshare.
TAG hasalsoreceived Sell My Timeshare Now complaints. It has been widely reported Diamond pointshave no resale value, yet SMTN charges already financially distressed members $1499 to $1699 for ads to list points.
We don’t mind if industry insiders or Diamond employees join our Facebook as long as they are respectful. In fact, we encourage this hoping they will confront the serious problems we have uncovered.
Other Member-Sponsored Facebook pages and resources
Thank you Irene, I am sure that once you launch the GoFundMe campaign many of our readers will be donating. What Inside Timeshare will say is this, Irene has worked tirelessly giving up her free time for this cause, please show your support and make a pledge now. Use our contact page and show your support.
Welcome to this week’s edition of Letter from America, but first some breaking news from Tenerife. As we already know several companies owned and operated by Mark Rowe, are under investigation in the UK by the Regional Organised Crime Unit, Somerset & Avon Police following raids in the UK and Tenerife. We also know that his company ABC Lawyers Ltd is also in liquidation, now Inside Timeshare has heard that the authorities in Tenerife have now raided his offices in Fanabe. One of the companies based there is Timeshare.Lawyer under the umbrella of Advanced Business Consultants Legal SL. It certainly looks like time is running out for Mark Rowe.
Now for today’s Letter from America, this is not the article we had scheduled as we have delayed publishing the subpoena Diamond Resorts attempted to issue Irene until Tuesday. As you will read in today’s article, Howard Nusbaum, the former president of ARDA, is also a former senior partner at Baker Hostetler, Diamond’s outside counsel in their case against a Florida law firm. This gave us pause. Irene will be doing a little more digging as this adds support to our belief this subpoena is a less than subtle form of harassment. Today’s article offers proof that there is no responsible exit for many fully paid timeshare owners. Baker Hostetler explains why.
When ARDA’s Coalition for Responsible Timeshare Exit Fails:
What Happens Next?
Six out of Eight Legacy Resorts have no Responsible Exit, according to eight “Free at Last” participants, reporting what happened when they sought a responsible exit
August 9, 2019
This is the first of four articles summarizing 21 timeshare members piloting the Free at Last Online Timeshare Support Course, sponsored by the nonprofit Straight-A Guide. The next three articles will report on Travel Clubs, timeshares purchased in foreign countries, and point-based timeshares.
I direct callers seeking timeshare release to reach out first to ARDA’s Coalition for Responsible Exit, or to the timeshare company if the timeshare company does not participate in ARDA’s responsible exit coalition.
Straight-A Guide helps 100,000 prisoners a year transition back to society through self-advocacy. Their customers are prisons. Our Free at Last participants learn how to self-advocate.
Legacy Resorts are single-site, older resorts. Of our eight Legacy owner participants, so far only two were able to work with their resort to take back their unwanted timeshare. One owner was able to deed back to Colorado River Adventures and one owner was able to deed back to Festiva.
There is no responsible exit for Legacy Resorts owners at Eagle Crest, Broadway Plantation, Lehigh Resort Club, and Wyndham Carriage Ridge in Canada, The Seasons in Vermont, or Bellavista. Six out of the eight Legacy resorts have no responsible exit! The only choice for these owners is foreclosure if the resorts will not provide a responsible exit. Three of the owners are over 80 years old and have been paying maintenance fees for decades, two only using the timeshare once or twice over the decades.
Mr. Kenneth McKelvey, founder of Defender Resorts and Chairman of the timeshare PAC ARDA ROC, testified at a legislative workshop held in Tallahassee Florida March 12, 2019, that attorneys and timeshare exit providers are not needed. He made these comments at the Florida legislative workshop:
“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 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 one that did not have a dissolution policy and a hardship policy …”
We hear from many seniors forced to endure the demeaning foreclosure process, despite maintaining a high credit score their whole life. Lately, there have been complaints from millennial buyers, as the industry is targeting that demographic. Some seniors tell me they don’t care anymore about a drop in their credit score as they are set, but those in their 30s see their credit score ruined along with their chances to buy a home. The foreclosure process can be overwhelming without support.
The industry calls the vehicle used when a timeshare contract is transferred to fictitious individuals or a fictitious LLC a “Viking Ship,” so-named because Vikings used to stack their dead on a ship, set it on fire, and send it out to sea.
ARDA and the law firm Baker Hostetler published these comments about Legacy Resorts:
COVER STORY • Many legacy timeshare resorts are struggling to survive: why?
Vacation Ownership WORLD contacted some of vacation ownership’s leading figures, as well as experts on the subject, and asked them about a much-discussed matter within the industry: why are so many legacy timeshare resorts having such a tough time and what can be done about it? Many of these resorts are failing due to an assortment of problems that include: a lack of professional management; a lack of adequate reserves; a resistance by the HOA board of directors to impose an adequate assessment for operating expenses; an underperforming or non-existent external exchange relationship; an aging owner base that no longer uses the resort or that wants to exit ownership but is generally unable to; and, diminishing resort maintenance standards. ARDA President and CEO Howard Nusbaum and senior partner in the Orlando office of Baker & Hostetler and ARDA treasurer and Board member Rob Webb offer their viewpoints on this issue. This is the first of a two-part story; the second article on the subject will appear in the next issue.
“Their value comes from using it,” the timeshare industry’s top lobbyisttold ConsumerAffairs in January, admitting that points have no resale value, while claiming that consumers don’t mind this because the value comes from the experience.
Based on complaints from over 900 families, this lobbyist is out of touch with reality. Just two exit companies I spoke with received 3,000 to 3,500 calls per month from desperate timeshare members seeking release.
Legacy Owner reports by Free at Last participants
#1 Unresolved – Robert Kennedy is 81 years old. He seeks release from Eagle Crest in Oregon. In 2017 I published an article in which I interviewed an Eagle Crest collection agent. The interview was in regard to problems Eagle Crest owners experienced when they contacted a fraudulent timeshare transfer company. It’s no wonder Eagle Crest owners are going through this.
At age 81, I have a credit score of 819 but now must face a foreclosure. At our age, we no longer are able to travel as we once could. We will not continue to pay maintenance fees for something we no longer want or need.
Robert sent his request for release to the following individuals:
After Eagle Crest said they would not help me, I contacted Irene Parker at Inside Timeshare. Ms. Parker told me to contact ARDA’s Responsible Exit program. I went to ARDA’s Responsible Exit Website, but Eagle Crest does not participate. We purchased a floating week 33 years ago and have faithfully paid maintenance fees for 33 years. https://responsibleexit.com/
I would like to ask Mr. Andres why Eagle Crest does not have a responsible exit program. I have grandchildren, great-grandchildren, and great-great-grandchildren. As a result of my experience, they have learned not to get involved with timeshare.
I contacted members of the Licensed Timeshare Resale Broker Association. They said they were not interested in helping us. Others need to be warned about the dangers of becoming involved with timeshare.
Robert Kennedy
#2 Unresolved Simon D, Canada
Carriage Ridge Wyndham
To Irene Parker at Inside Timeshare
August 5, 2019
I reached out to Ovations as you suggested. Wyndham Ovations will not accept our Carriage Ridge Resort in Canada. We purchased this floating week timeshare May 2004 for approximately $13,750. We have no loan.
We were told at purchase there would be no problem reselling the timeshare. Ovations will not take it back so isn’t it false advertising to say that they have a program for fully paid members when they don’t? I tried selling the timeshare. No one wants it. Availability has been an issue.
Why are consumers put in the position of being held hostage with no choice but to foreclose? Who, understanding that buying a timeshare is something you can’t get out of unless foreclosed, would buy one? Especially when the buyer is told, like we were, it would be easy to sell.
I will no longer pay maintenance fees. I will be contacting the Canadian Vacation Ownership Association as you suggested. They should know that many Canadians are being harmed and Wyndham should not falsely advertise that the problem of no secondary market for timeshares has been solved. It’s not true. Thank you for the websites you provided. At least I know others are experiencing the same.
I was duped into a gifted timeshare from my father. The story is sad…he is retired and was desperate to get out as he lost most of his retirement money in 2007. So he misleads my husband and I. I contacted Ovation to take the deed back from Carriage Hills resort in Canada and they said NO. Referred to Fidelity who advised THEY HAVE NOT SOLD a Carriage Hills unit IN YEARS! 31 units are listed on Carriage Hills website for $1. Many owners are offering $400 gift certificates. Wyndham is the ring-leader. They should offer Ovation. https://www.redweek.com/forums/messages?thread_id=20770&page=last
#3 unresolved – a Medical Doctor
We purchased a Broadway Plantation timeshare in Myrtle Beach, a floating week, a long time ago for about $17,000. I have never used it. I have paid maintenance fees for many years. We were told the timeshare would be easy to sell.
I reached out to ARDA as they say timeshare now has a Responsible Exit program. When I contacted Broadway Plantation they said they do not take back timeshares. If there is a responsible exit, why doesn’t Broadway Plantation have one?
I feel defrauded, cheated and abused by the timeshare industry. Having an every other year timeshare for a single week has been a waste of money. When I tried to use it, there was no availability. I have no intention of ever paying you any more money. I am 70 years old.
#4 Unresolved S E
July 20, 2019
I am helping my father. He is age 83. Bellavista was purchased six or seven years ago. We are current with maintenance fees, no loan. He was delinquent with maintenance fees, he settled for about half what he owed..
#5 Inez
At age 87, I have been paying maintenance fees since 1991. I only used the timeshare a couple of times. We purchased Lehigh Resorts in 1991 in Florida. We have no loan. I’ve only used it twice since 1991. When I first bought it the maintenance fees were $300. Now they are $670. They said they would not take it back.
#6 Melissa
I purchased a timeshare a long time ago at The Seasons in Vermont. They will not take back the timeshare. I have filed a complaint with the Vermont Attorney General.
Melissa was provided with the following in writing at the time of purchase, statements in printed literature and in an email Melissa received from a Sugarbush manager dismissing her complaint:
Our current owners are renting for premium dollars and receiving a very high rate of return on their investment, because of supply and demand.
If you rent your unit for less than 15 days/year, the rental income will not be includible in income–thus the income is tax-free and you would still be able to deduct your interest payments.
The timeshare won’t be difficult to resell due to the lack of accommodations in the Sugarbush area (supply and demand).
Don’t listen to family & friends because it is an investment and a guarantee that we would take a vacation every year.
In addition to our 21 Free at Last participants, Inside Timeshare has received many complaints from AmericanoARC owners. They are required to spend $5,000 to $6,000 for an RCI points-based Travel Club called Freedom 365 in order to be released from their timeshare they bought decades ago. We will address their concerns on Friday when we look into Travel Clubs.
I have grouped our 21 callers into the following groups:
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.
Well, that is all for this week, as you will have noticed Inside Timeshare has been a little sparse this week, August tends to be rather quiet as it is the main holiday month, very little news coming from the courts and elsewhere. But keep on checking, we never know when another story will break and as it does we will bring you the news right here.
Welcome to this edition of The Tuesday Slot, this week Irene Parker reports on the Annual Whistleblowers Summit held in Washington DC last week. Irene, as we all know, has been working tirelessly on behalf of many owners who have contacted Inside Timeshare for help. Irene does this work free of any charge and has never received any payment for the advice or help she has given. Inside Timeshare has been working with Irene for around 4 years now publishing the many articles she has submitted, no payment has ever been made in regards to this. Inside Timeshare publishes articles from many contributors who just want to get their story and views to others, no one has ever been paid to submit an article that we publish.
Highlights from the 8th Annual Whistleblower Summit
Resiliency after Retaliation
Why the Need for a $200,000 GoFundMe
From left: Ethics and Resiliency panel members Richard Hill, MD, Maureen Elias, Vietnam Veterans of America, Jackie Garrick, Whistleblowers of America, and me
By Irene Parker
August 6, 2019
The 8th Annual Whistleblower Summit& Film Festival was held last week in Washington D.C. Our panel pictured above was well attended. We discussed resiliency after retaliation as a quality necessary for those who discover and report fraud, waste or abuse.
Prominent whistleblowers like Sharron Watkins and Eugene Ross spoke at our luncheon. Ms. Watkins exposed Enron, and Eugene Ross exposed fraud at Bear Stearns. “Every fraud victim’s best friend is a whistleblower,” stated Mr. Ross. Despite the efforts of Mr. Ross that resulted in the recovery of millions of dollars for investors, he was forced to declare bankruptcy. Mr. Ross was critical of mandatory arbitration and industry self-regulation. My peers are critical of the timeshare industry’s self-regulation and forced arbitration.
Other Summit Highlights
July 30 is “National Whistleblower Appreciation Day”
Michael McCray is a federal whistleblower who disclosed over $40 Million in waste, fraud and abuse at the U.S. Department of Agriculture:
“A whistleblower often doesn’t know they are a whistleblower until they are in the middle of their whistleblowing.”
Consumers don’t wake up in a morning and think they will buy a timeshare today. Whistleblowers don’t initiate their efforts thinking they will be a whistleblower. They see wrong and make a vow to make it right. By the time the whistleblower is made aware that they are a whistleblower, they have reached their point of no return.
Others spoke of how a whistleblower cannot live in peace if they see wrong and don’t try to right it. “They will be haunted the rest of their life. It will be like a cancer in their soul,” said Tim Mak, NPR national security and politics reporter.
Timeshare fraud is orchestrated and sophisticated. Honest sales agents and managers are as alarmed as the more than 900 timeshare members who have reached out to Inside Timeshare and to me toreport unfair and deceptive sales practices. About half of the members report that they had been scammed by a fraudulent exit company.
My resiliency and motivation comes from their voices turned empowered. I am motivated by 119 veterans and active duty service members who sacrificed their health and life to protect even those who seek to do them harm, especially two-time Purple Heart recipient Leo Gomez. Leo spent the last 30 days of his life battling pancreatic cancer and his timeshare company. His last words to me were, “I want my story told.”
The first family to reach out to me in 2016 was a Hispanic family. They attended a Diamond Resorts timeshare presentation because they were struggling to make loan and maintenance fee payments. They said they were told of a maintenance fee relief program, but no such program existed. Fortunately, they did not buy additional points. https://insidetimeshare.com/irene-parker-write-barclay-card-usa/
I contacted Diamond’s attorney on their behalf. He arranged a relinquishment, but the family is probably still paying off a $33,000 home equity loan. I liked this attorney. He worked with me to resolve my dispute. I was offered our money back but refused to sign a non-disclosure agreement. I had been writing articles as a contributor for TheStreet, Jim Cramer of Mad Money’s investment news service. I could not sign because I wrote articles about several timeshare companies.
Since Inside Timeshare published my first article about a timeshare family in distress, October of 2016, the complaints about maintenance fee relief programs have not stopped. Expecting retaliation, I prepared a 180-page report of 101 just Platinum Diamond members who have complained about maintenance fee relief programs they learned did not exist. Platinum maintenance fees in 2018 were $8,631 for 50,000 points. Points can only be turned in to pay maintenance fees at $.04 per point, contributing only $2,000 towards the 2018 $8,631 maintenance fee.
Back then maybe one or two families a week would reach out to me. Now three to five calls or contacts a day are not unusual. A team of volunteers lends their support by answering questions that arise when filing regulatory and law enforcement complaints. My resiliency and strength also comes from our volunteers and members digging in to fight. All are whistleblowers.
In 1998, Dr. Matthew Fogg, Chief Inspector U.S. Marshal, retired, won a landmark $4-million jury award, promotion to Chief Deputy US Marshal, and a finding that the US Marshals Service nationwide was operating a racially hostile environment for all African American Deputy US Marshals.
“After my training, at the duty station, I was told ‘Forget what you learned. This is how we do things.”
We have heard this from timeshare sales agents and managers also alarmed over deceptive practices that are endorsed and encouraged.
Why the need for a $200,000 GoFundMe
Diamond Resorts demanded so many documents from me, it would be humanly impossible for one individual, working from the corner of her living room, to produce. Diamond has not sued me. They sued a law firm in 2015 over a matter I had nothing to do with. Diamond’s demands include emails from their customers who have reached out to me through our member-sponsored Facebook page and Inside Timeshare.
I have repeatedly asked attorney after attorney if I am doing something wrong by listening to member complaints in an effort to gather data documenting multiple complaints made against the same agents. They have assured me I am doing nothing wrong. It appears a judge or jury will ultimately decide. On Friday Charles will publish the list of Diamond’s demand. This demand for documents follows a six-hour deposition, pertaining to the same lawsuit.
Like others on our 3,400 Diamond member-sponsored Facebook, I referred to this law firm when a member requested an attorney, or I was asked a legal question I am not qualified to answer. Our Facebook Files now provides a list of six law firms we respect.
Four attorneys have been assisting me without charge. It’s time for them to be paid. They filed a motion on my behalf that narrowed the scope of Diamond’s demands, but the task I expect will still be formidable and beyond the call of pro bono. I have retained my neighbour who worked as a former legal assistant to help me with the task.
A portion of my $200,000 GoFundMe will be earmarked for a purpose suggested by a person of influence I met in Washington D.C. this past week. This person was referred to me by another person of influence whose family has been harmed because of points they say they purchased for a reason that does not exist.
I will not launch the $200,000 GoFundMe me until I receive the narrower in scope subpoena. In the meantime, I seek pledges of support. Groundwork is being laid for our strategic and tactical plan following the advice of our person of influence. I am not at liberty to publish details but contact Inside Timeshare if you would like to learn more.
Some causes require a sacrificial lamb.
I doubt there are many that know Mark Twain considered his book Personal Reflections of Joan of Arc his finest work. He spent twelve years researching this child of a French peasant family:
I like Joan of Arc best of all my books, and it is the best; I know it perfectly well. And besides, it furnished me seven times the pleasure afforded me by any of the others; twelve years of preparation, and two years of writing. The others needed no preparation and got none.
— Mark Twain
Personal Reflections of Joan of Arc should be required reading for any peasant attempting to hold the powerful accountable. I’m no virgin and I’m no saint, but like Joan, I may be burned at stakes for my efforts. Had Joan been told of this likely conclusion to her advocacy efforts, I’m confident Joan, like me, would have replied, “D’accord.”
Whistleblowers at the Summit convinced me this comes with the territory.
We seek to provide Diamond 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.
Thank you, Irene, it is obvious from your report that you have made some significant contacts while at the summit and one thing is very certain, everyone must work together if we are going to see any change.
On the point of the GoFundMe campaign which Irene will shortly launch, please use our facebook pages or the Inside Timeshare contact page to pledge your support. Irene has helped so many it is now time for her to receive our support. Thank you all.
Following Monday’s article about Anfi Sales and Anfi Resorts hiding assets in an attempt to avoid paying back money awarded to clients in the Spanish courts for the selling of illegal contracts, they are back in the news. This time it is on Spanish national television TVE 1.
They report what we already have published and what was published in El Diario, Inside Timeshare has a recording of the news item to which has been added subtitles it has also been uploaded to Youtube.
The lawyer who is dealing with this case on behalf of Canarian Legal Alliance clients, Eva Gutiérrez is being interviewed outside one of the CLA offices in Arguineguin, with the Anfi Resort in the background. In the interview, Eva explains the reason behind the emptying of bank accounts giving the reporter all the figures. She is also seen working on documents showing the various bank accounts.
Eva Gutiérrez
It is actually quite staggering the amounts which are in the millions of euros that are being diverted from these accounts to avoid court-ordered repayments. It is no wonder that the Provincial Prosecutor’s Office has been taking a very keen interest in this matter.
During the interview, Eva Gutiérrez also explains that CLA and their clients are urging the courts to appoint an independent administrator to oversee the accounts and the investigation. This blatant attempt we are seeing by the Anfi Group, who are also paying members of the RDO (Resorts Development Organisation) the timeshare industry trade body and governed by their code of conduct and ethics, is in the mind of Inside Timeshare possibly a criminal act.
As yet we have not seen any statement from the RDO regarding this and we very much doubt that they will even sanction them over this. So much for the trade body and their code of conduct and ethics.
This story should place no one in any doubt as to the lengths timeshare companies will go to deceive consumers, it should also remove any doubt as to the authenticity of Canarian Legal Alliance which has over the years been smeared by the timeshare industry as a criminal gang and swindlers!
Inside Timeshare knows who the real swindlers and criminals are and now so do you!
Link to the original article by El Diario with English translation in PDF format.
If you own a timeshare at Anfi or any other resort and want to know what your legal options are, then use our contact page and we will point you in the right direction.
Welcome to another edition of The Tuesday Slot, this week we welcome back Shielah Brust with her article on Unfair and Deceptive Sales Practices. It is in response to the industry’s claim that timeshare members are being subjected to “Deceptive Timeshare Exit Practices”, yet we at Inside Timeshare receive many complaints on this subject by the industry’s very own sales agents. If Michael Flaskey wants these exit companies to be regulated then the industry should also take a very close look at itself. We do agree that there are some unscrupulous “Exit” companies, but at the end who is actually to blame for their creation in the first place?
To: Michael Flaskey, Diamond Resorts CEO
The Unfair in Unfair and Deceptive Sales Practices
Timeshare Exit Companies have little to fear if they are to be regulated like Florida timeshare
“The long term strategy is, if there are (exit) companies out there that really are legitimate, which we haven’t seen yet,” Flaskey said, “then they need to be regulated the same way our (timeshare) industry is regulated.”
Testimony from the Florida Legislative Workshop March 2019
Victoria Butler, from the Florida Attorney General’s Department of Consumer Protection, reported a figure of 1,500 to 1,600 timeshare complaints in recent years, with about 50% involving senior citizens. She said the majority of complaints were in regard to the initial sales presentation. Ms. Butler stated that the Florida timeshare division, the Department of Business and Professional Regulation (DBPR), engaged only 42 complaints, the majority concerning resale.
By Shielah Brust
Tuesday, July 30, 2019
I am writing in response to the article linked above written by Chabeli Herrerra of the Orlando Sentinel. In the article, Mr. Flaskey expresses his concern over timeshare members experiencing deceptive timeshare exit sale practices. Based on Diamond Resortscomplaints reported by many members of our self-advocacy group, and dismissals received from DBPR, there is little to no timeshare regulation in Florida. DBPR backs up Diamond’s“You signed a contract” defence with “Verbal representations are hard to prove.”
While many Diamond members have had disputes resolved, the process requires endless rebuttals and often regulatory and law enforcement filings. In addition, we have sent more than 200 complaints to the timeshare lobby ARDAand ARDA ROC. Mr. Flaskey sits on ARDA’s Board of Directors.
To take the “un” out of “unfair” timeshare buyers should be allowed to record the sales session. I am one of 101 Diamond Platinum members who have reported unfair and deceptive timeshare sales practices. In our case, we even have our “pencil pitch” that proves we were pitched a nonexistent maintenance fee relief program. One need not read any further than $8631 – $8631 = no maintenance fees. My DBPR investigator, when she first saw my proof, said, “I can’t believe they let you walk out with that paperwork!” Our 2017 “pencil pitch”:
Three complaints and one lawsuit have been filed against Brad L, a sales agent at Daytona Beach Regency. Only the most recent of the four complaints resolved. A VIP at Diamond corporate told us in 2018 that they agreed Brad L’s explanation was confusing. As a result, they said they changed the way agents present the program. However, a year later, in 2019, the fourth complaining member produced a “pencil pitch” identical to ours. Only the numbers vary.
In 2017, Brad L told us to “wait a few months before turning in points to pay maintenance fees because the website (member page) was being rebuilt so that the member would be able to view a split-screen showing promised double points.” Two years later, in 2019, Brad told complainant #4 to wait a few months before checking because the website was being rebuilt.
Also unfair is the recording of the QA closing session. The recording is routinely used against the member. Complaints are dismissed because the buyer did not ask questions in regard to what they were promised.
Members often report how they were coached on how to “pass” QA. The member believed the sales agent so did not ask questions. A member can only access the recording by subpoena, meaning the member must retain a lawyer in order to view it.
This recording of the QA session was sold to the Arizona Attorney General as “enhanced training” after the Arizona Attorney General issued an Assurance of Discontinuance. Their office received hundreds of complaints during 2016 and 2017. From the AOD:
IV Assurances
“Diamond shall enhance its programs, policies and training and continue to instruct and train its Vacation Counselors and Sales Managers to comply with the ACFA (Arizona Consumer Fraud Act). Diamond shall advise all Vacation Counselors and Sales Managers that they may not:
Sales agents should not deviate from sales material
Sales agents should not make oral representations at the point of sale inconsistent with the Purchase document.
Since 1994, we have spent over $200,000 on Diamond points, not including maintenance fees. We have been fighting Diamond for over 18 months. Of the 101 Platinum member complaints, approximately half are about members purchasing additional points based on overstated maintenance fee relief programs and the rest the ability to sell points. Diamond points are worthless on resale, and the only program to be relieved of maintenance fees would relieve only $2,000 towards an $8600 maintenance fee, and the member is charged $100 to do so.
Mr. Flaskey, consider believing your highest loyalty customers over sales agents that have had multiple complaints filed against them.
Allow buyers to record the sales session. Why would you not allow this?
Florida needs to become a one-party state so the buyer can legally record an in-person presentation if Diamond will not allow the sales session recorded.
Allow a 24 hour “cooling off” period so buyers can breathe before signing a perpetual contract, easily sold by deceit, accompanied by annual maintenance fees, and no secondary market.
Diamond’s lawyers twisted our written proof to mean what they wanted it to mean and twisted our words to mean what they wanted our words to mean. After Diamond allowed Brad L to answer the complaint his way, DBPR closed my case.
A letter of denial from Julia Russell, Consumer Legal Affairs Paralegal, and Russell Burke, Diamond in-house counsel, corporate headquarters, stated it was their understanding I refused to meet with the DBPR in person. I sent them the email requesting a meeting. I informed DBPR I would be in Orlando on May 16, 2019, and would bring boxes of emails, texts and other information.
I offered to meet with the DBPR reviewers. I told them I would be in Orlando. When I went to their office on May 16, 2019, their door was locked and a security sign was posted on the door.
Hard-working people who had been loyal Diamond members for years now devote a considerable amount of time reaching out to lawmakers, the media, and regulators asking the government to take a hard look at the way timeshare companies are destroying many families financially, mentally, and even physically. I will continue to fight to help others and file complaints with governmental and law enforcement agencies. Here’ how to file with the FTC and the FBI:
We advise members to send complaints to ARDA President Jason Gamel, also Sr. Legal VP for Wyndham, ARDA ROC, Apollo Global Management, Diamond Resorts CEO Michael Flaskey, Ashley Moody, Florida Attorney General, and Barclay’s Bank, if a credit card was involved.
Florida’s Department of Business Practice and Regulation (DBPR) response to our complaint after I asked why the Arizona Attorney General launched an investigation based on a volume and pattern of complaints:
As you are aware, alleged verbal misrepresentations are very difficult to prove in light of the written documents and disclosures. In terms of evidence, we rely on these documents to prove or disprove the allegations. The actions taken by other state agencies are not evidence of the alleged misrepresentations related to the sales transactions conducted in Florida. Based on our review, it did not appear that the information provided to you by the sales agents were false and misleading. Lack of clarity could be an issue but that in itself cannot be considered a violation. We are not sure if the sales agent had voluntarily provided the hand-written notes or you had kept them on your own. If there are discrepancies between the notes and what was actually received in terms of points, we will address that issue.
Brad’s explanation:
Brad said we paid $8,631 in maintenance fees for 50,000 points in 2017. Following Brad’s logic, we could eliminate $8,000 of the increased $11,252 maintenance fee (due to the purchase of 15,000 additional points), by taking advantage of this new program. From Brad’s notes:
65,000 own $8,631 current maintenance fees before 15,000
65,000 given2,621 maintenance fees on the new 15,000
130,000 points $11,252 Total maintenance fees with new 15,000
50,000 if used8,000 Less reimbursement check
80,000 left $3,252 Maintenance fees still owed
x $.10 reimbursed
EXCEPT THERE WAS NO 65,000 POINTS GIVEN!
$8,000
Diamond’s Clarity™ promise launched after Mark Brnovich, Arizona Attorney General, issued an Assurance of Discontinuance:
The CLARITY Promise:
With this clear, concise and consistent information, consumers can easily determine whether the Diamond Resorts hospitality experience is the right decision for them and their families.
On April 5, 2018, we received a call from a DRI Hospitality agent. They found no wrongdoing. This is part of what she said to us.
I definitely agree that your confusion of that process is warranted. I have spoken to our legal team and sales team and we agree the double point explanation is definitely something that could have been misconstrued or seen as confusing by members or purchasers.
We have made changes to the way that information is given at the time of sale but we have to say the stance we take on this is: because there may have been some confusion on how you may use those points to create savings for yourself doesn’t make the explanation illegal.
According to the Federal Trade Commission Section 5
An act or practice is deceptive where
a representation, omission, or practise misleads or is likely to mislead the consumer;
a consumer’s interpretation of the representation, omission, or practice is considered reasonable under the circumstances; and
the misleading representation, omission, or practise is material.
I hope Ms. Herrerra will write a story for the people’s side.
Sincerely, Sheilah Brust, a Diamond Platinum member in foreclosure
Pictured from left: Anna and Diamond Platinum members Cindy, Patty and Sheilah
We seek to provide timeshare members with a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market, and to educate prospective buyers.
Thank you Shielah for a very interesting article and for taking the time to write it, you have certainly made some very interesting points. Inside Timeshare will continue to publish the concerns of these practices by the timeshare industry as well as exit and resale companies who use these same techniques.
Tomorrow Inside Timeshare will be publishing more on the Anfi story regarding the intervention of the Provincial Prosecutors Office, we will be publishing a news item aired by TVE 1 News which is Spanish National Television. It includes an interview with the Canarian Legal Alliance Lawyer Eva Gutiérrez.
Welcome to another edition of our Letter from America, this week Irene Parker writes about the upcoming Whistleblowers Summit & Film Festival. The term Whistleblower refers to someone who is making public information which they feel morally and ethically to be the right thing to do. It may be highlighting abuses of power by government, unfair working conditions by companies or even abuse of the elderly by care home providers. Whistleblowers are needed and should be thanked for what they do for the general good and not for profit.
The 8th Annual Whistleblower Summit & Film Festival
The 8th Annual Whistleblower Summit will be held July 29 through August 1 in Washington D.C. Attending the Summit last year was an eye-opener. I heard from like minds, unafraid to speak truth to power and hold the powerful accountable. This year I am honoured and grateful for the opportunity to participate as a panel participant in a Summit discussion called:
The Resilient Advocate – Elements Ethics and End Results
Panel members will discuss how resiliency skills helped them cope with stressful situations. Concepts surrounding resilience include mindfulness, meditation, gratitude and forgiveness of self and others.
I am listed as Irene Parker, Court Appointed Special Advocate (CASA)
I am not at present, an active CASA, but once a CASA, always a CASA at heart. I first became involved with CASA in Bowling Green, Kentucky in 2009 as a CASA volunteer. Later, I served as a paid CASA supervisor until 2012.
A CASA is a voice for a child in state care, a voice for the voiceless. A CASA’s duties include interviewing the child, the child’s biological parents, foster parents, and others involved in the child’s life. The CASA may not agree with the wishes of the child but assures the child that the court will hear what outcome the child wishes. As supervisor of 27 CASA volunteers, I edited volunteer court reports and wrote court reports for cases unassigned.
In Florida where I live now, the program is called Guardian Ad Litum.
Skills learned at CASA provided me with the foundation to assist victims of timeshare fraud – timeshare members who wish to voice their concern about unfair and deceptive timeshare sales practices.
As in the case of any family in crisis, explanations are usually confusing and convoluted. I liken it to a witness describing what happened after a serious auto accident. When contacted by a timeshare member, I frequently ask, “What do you mean by that?” or “Can you provide an example?”
I have heard from over 900 families reporting unfair and deceptive timeshare sales practices, including 116 veterans and active duty service members. An active duty service member can lose his or her security clearances, and their career, over a timeshare foreclosure. More than a few families have been financially devastated, including a Navy veteran and retired postal worker forced to seek bankruptcy protection after being up-sold to $2,700 a month in timeshare loan payments.
The Resilient Advocate – Elements Ethics and End Results
The panel discussion will be led by the founder of Whistleblowers of America, Jacqueline Garrick, and a Department of Justice Whistleblower.
A Navy veteran introduced me to Jackie after the veteran successfully resolved their timeshare dispute following our principles of self-advocacy. An obvious “bait and switch” left the veteran encumbered with a large loan. The purchase was presented as a way to reduce annual maintenance fees, but the opposite occurred. Knowing the veteran, and having received other complaints against the same sales agent, it was not difficult to know who to believe.
Panel Discussion
Resilience is the state of mind, body and spirit that allows a person to overcome adversity and experience growth. Therefore, the resiliency skills needed to overcome whistleblower retaliation.
There is no denying that whistleblowers face societal stigmas and negative responses for their disclosures
These negative connotations have a psychological impact on ethical people who faced difficult decisions and took the high road to do the right thing
Most whistleblowers face years and years of retaliation, harassment and discrimination
They are at constant risk of losing financial stability, social status, and family security. Their physical and emotional health is impacted as a result.
Other panel participants include:
Maureen Elias, Deputy Director, Veterans Health Council of Vietnam Veterans
Richard Hill, MD, Retired Primary Care Physician
Ms. Heidi Weber, Associate Producer, Whistleblower on CBS
“Toxic Tactics” of Retaliation that have affected my family:
a. Gaslighting – challenging the memories or ethics of the whistleblower – making you question yourself
b. Mobbing – getting others to conspire against or spy on the whistleblower
c. Accusing – refocus on the whistleblower as the wrongdoer
d. Harassment and (in my case a threat of) violence
e. Emotional abuse, humiliation
f. Legal and financial challenges
What advice would I give to others thinking about blowing the whistle?
· Understand the Pandora’s Box you are opening and the long-term implications to your family when opened
· Recruit a team to aid in your efforts to ensure your efforts will continue if stifled or delayed due to the above mentioned retaliatory tactics
· Recognize the extent of loss your family may experience as the result of “poking the bear” in an effort to right wrongs
While the timeshare lobby and political action committee ARDA and ARDA ROC recommends timeshare members contact their state Attorney General in regard to companies that provide exit services, I have suffered retaliation for encouraging timeshare buyers to contact an Attorney General if they feel they experienced unfair and deceptive timeshare practices. Timeshare sales agents are emboldened by the oral representation clause timeshare attorney Mike Finn described as “a license to lie” in a 2016 New York Times article written by Pulitzer winner Gretchen Morgenson.
The Timeshare Developer and Lobbyists Pot Calling the Kettle Black – There are unfair and deceptive practices on both ends of the timeshare transaction.
The rash of complaints and legal proceedings prompted the American Resort Development Association (ARDA) to issue a warning to consumers about these (exit) companies, encouraging owners who believe they have been unfairly taken advantage of or defrauded to contact their state Attorney General, local law enforcement or ARDA directly.
At least 200 complaints from timeshare members in our advocacy group have forwarded their complaint to ARDA and ARDA ROC. To my knowledge, all complaints have been ignored. The Board of Directors of ARDA ROC (Resort Owners Coalition) is staffed with timeshare executives.
(BBB) RECOMMENDATIONS FOR THE INDUSTRY
The link below is a timeshare report warning consumers to beware of unfair and deceptive trade practices prepared by the St. Louis BBB, with input from the Missouri Attorney General’s office.
RECOMMENDATIONS FOR GOVERNMENT
Tougher law enforcement action. Regulatory agencies have reported receiving an increasing number of complaints about the timeshare industry. Bringing action against any bad actors in the industry could help consumers and deter companies from violating consumer protection laws.
New laws. BBB hears from many senior citizens who have been affected by the timeshare industry. Missouri legislators should consider special protections for those 65 and older who enter into agreements with timeshare and travel club companies. An extended right of rescission period could help seniors who may not totally understand what they have purchased. All consumers should receive pertinent information – such as access to websites and passwords – at point of purchase so that they can check potential savings and actual values of timeshares on resale market so that if they decide to cancel, they can take advantage of the rescission period.
For more information about this study, to obtain a Business Profile or register a complaint, contact BBB.
If you’re in the area, even if not a whistleblower, you will experience one of the most enlightening and inspiring events of your lifetime if you can attend. I’m hoping our Supporters or our timeshare members in distress will consider attending.
We seek to provide timeshare members with a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market, and to educate prospective buyers.
Welcome to The Tuesday Slot with another look at some of the many complaints received by Inside Timeshare, this review has been written by Patty Boyak who as we all know has been staging many protests outside some of the resorts. One thing that will strike you the reader is the similarity in the complaints from people who have never met, yet we always hear the same thing “We are not responsible for what our sales agents say”!
Why we need Secret Timeshare Shoppers – Especially in Vegas
Timeshare Buyers Need to Record Las Vegas Timeshare Presentations
Seven Timeshare Complaints against the same sales agent
“The long term strategy is, if there are (exit) companies out there that really are legitimate, which we haven’t seen yet,” Flaskey said, “then they need to be regulated the same way our (timeshare) industry is regulated.”
A recording of Alaa C defrauding a 28 year old disabled veteran was provided to NRED over a year ago.
Sent To Hospitality, Michael Flaskey, CEO
Our purchases:
19 December 2017 – Palm Canyon Resort, Palm Springs, CA
6 May 2018 – Cancun Resort, Las Vegas, NV Purchase price for 15,000 points: $55,000 Down payment: $11,075 on a Barclay card Amount Financed: $151,079.65
Trevor W had previously sold us points in Palm Springs promising a maintenance fee relief program if we bought “member” instead of “owner” points. There is no such thing as “member” vs “owner” points.
When we next met with Alaa C we were unaware that we had been deceived by Trevor because we had not attempted to sell points back at $.30 per point. We missed the window period Trevor explained – that we had to turn in points by November 30 and had to have 20% of our loan paid to be eligible for the maintenance fee buyback program. In no way would we have 20% of the loan paid in such a short time. The delay avoided the rescission period.
On 06 May 2018, we went to Las Vegas Cancun Resort where we met Alaa C. C introduced himself as a Platinum Counselor. Alaa said that as Platinum members we should be using our points at $0.20 each to pay maintenance fees and said there were NO restrictions on the amount of points we could redeem. We brought up that Trevor Wood in California had told us about the $.30 per point to pay maintenance fees, so why was this $.20 a point? C said it’s not $.30.
Using his phone, he showed us rebate checks we could receive at $0.20 per point. There were several checks in a row on his screenshot on his phone. We didn’t see the exact amounts, but we had asked about the legitimate rebate program because we were already aware of Diamond’s Travel Reimbursement program. This was not the reimbursement program we knew, C assured us.
C gave us his phone number and said he would be our Platinum counselor. We attempted to call him multiple times. He only called the day after we purchased to ask about incentives we had attended. He never returned calls after that.
C said that by purchasing 15,000 additional points, we would be able to redeem points at $0.20 per point. C said we would have enough points to pay all our maintenance fees with 50,000 points and still have points to travel. The first time we attempted to use the point redemption program, we were told by Platinum customer service no such program existed.
Reviewing our files, Alaa informed us that none of our previous contracts had been wrapped and that wrapping them into a single contract would stabilize maintenance fees. C told us the only way to wrap the contracts was by purchasing an additional 15,000 points and if we did, the maintenance fee increase would only go up by 4%, whereas if we had six contracts, the maintenance fees would be much higher, in the 10 to 12% range. This turned out to not be true. It would be highly unlikely for maintenance fees to go up by 10 to 12% just because there were six contracts instead of one. Fees have not decreased. In fact, we incurred an additional $2600 in maintenance after purchasing the additional points.
Patty and Brandon Boyak and another Platinum couple protesting in Las Vegas. It would be unusual for educated professionals to go to this much trouble over buyer’s remorse.
It is common for Platinum members to have made several prior purchases. Trust ensues. If the member refuses to pay for a recent purchase, they risk walking away from all points purchased; the money spent exceeding $200,000 or more. A 180-page report summarizes 101 Platinum up-sells. The similarities are glaring.
Alaa C complaint #1 is a 90% disabled Army veteran. He recorded the second hour of a five-hour sales presentation because C refused for an hour to return their credit card and driver’s licenses. Alaa told them that because they did not get “the letter” from Apollo they were not grandfathered in so would have to buy additional points or pay $250,000 in maintenance fees over 10 years. Member complaints frequently begin, “They said we should have received a letter.”
Alaa C complaint #3 A Y, age 79 Platinum complaint #72 out of 101
Mrs. Y’s first language is Cantonese. Her husband, age 80, is diagnosed Alzheimer’s. Typically, Diamond points sell for $4 per point. Buyers are shown a price listing points at $9 and a warning the price will appreciate in the subsequent year. Buyers are not told Diamond points are worthless on the secondary market. Mrs. Y did not know the total amount they spent to buy 80,000 points, but at $4 per points an estimated price would be around $360,000. Platinum 52,000 points
October 10, 2018, Nevada
In 2018 October we attended a meeting in Las Vegas and met with sales agent Alaa C. We agreed to buy 100,000 points more but ended up buying 90,000 additional points. Alaa C said that if we purchased these points, we could use 50,000 to pay maintenance fees by redeeming points and still have 50,000 to travel. We turned it down. The manager Maher F said we don’t need 100,000 points, maybe 80,000 points.
They said we could trade in points for $15,000 every year. They said you turn in January and it would take 30 days to process. Both Alaa C and Maher F told us this. They said only Diamond has this program.
Alaa C Complaint #4
An attorney contacted us and asked if we knew of Alaa C as he has received a complaint against him.
Alaa C #5 B W, age 57, Platinum complaint #86 out of 101
May 23, 2019
The maintenance fees after 2014 escalated. In California, they kept saying they were going to go public. They told me our kids would have to inherit the points unless I bought additional points. They said, “Your kids won’t be able to have a choice whether to keep it or not if you don’t buy additional points.”
I met with Alaa C June of 2018. He told me everything that happened in CA wasn’t true. In order to give me what I was already supposed to have, I was told I needed to buy 25,000 additional points. I asked C if I could record. He said no. C told us about a program to pay maintenance fees. If you book through travel services you could get $.30 per point toward maintenance fees. I took a picture of his picture pitch.
Alaa C #6 complaint, age 73, (resolved) Platinum complaint #85 out of 101
Al C sold me 25,000 additional Diamond Hawaii points March 2019 for $90,750.
C said at this new Platinum Legacy level, there would be an option for “travel cash” which I could use to pay maintenance fees. He even showed me how to calculate it. He said if I bought these points I would be at the highest level and there would be no reason to buy any additional points in the future. However, at my next presentation at the Palm Canyon Resort in California April 26, 2019, Trevor told me I needed to buy additional points.
At the Palm Canyon April 26 presentation, Trevor told me that there is no such thing as travel cash. I WOULD NOT HAVE BOUGHT THE LAST PURCHASE FROM C IF THIS TRAVEL CASH TO PAY MAINTENANCE FEES HAD NOT BEEN SOLD TO ME as a way to offset maintenance fees. C had multiplied the number of points x 30 cents to illustrate how to pay for maintenance fees.
Trevor showed me a graph of maintenance fees showing maintenance fees increasing. Trevor had said that the way my contract with Al had been written, my maintenance fees were at the higher rate of increase. Al had said my maintenance fees would be at the lower rate of increase. Al did not provide me with a “summary of maintenance fees.” Diamond’s CLARITY promise, which promotes clear, concise, accountable and transparent information says, “You will receive a summary of maintenance fees.”
Al also said I needed to buy additional Hawaii points so that my heirs would not be responsible for maintenance fees. I have learned heirs would not be responsible.
Trevor told me I would need to purchase 75,000 additional points for an additional $125,000 to take care of the mess Al created. Trevor and Brad also stated that Al sold me 7000 more points than I needed to be platinum.
Al said to put part of the down payment on my own credit union mastercard. If I called the next day he would switch the money to my Barclaycard so that I would have a 0% interest for 6 months. He put his cell number in my phone. I called him the next day with the required information. Al never responded to my next texts.
Since the meeting on April 28, I go to bed every night worried about my fees, wake up in the middle of the night and think about what to do, and wake up in the morning thinking about fees. This is making me ill.
Yes, I met with the QA representative, and he may have witnessed Al telling me what to put on the why-did-you-make-a-purchase-today sheet in Cancun. Yes, I bought to have platinum status, but only because I was told this included travel cash, lowest maintenance rates, and the right of my heirs to refuse the points.
We only bought points because we were told ILX went bankrupt. In March of 2017, I was diagnosed with pancreatic cancer, stage 4. In September 2018 I was told there was nothing that could be done. I have been given a few weeks to a month to live. I have been approved for Hospice.
We only owed about $6,000 on the loan before Al said we had to convert our PVC points to US Collection. The presentation was exhausting, over four hours. Al knew I had pancreatic cancer and was exhausted because of that. ILX 15 years ago $17,500 was the purchase price
I have learned it was not necessary to convert our PVC points. They said our maintenance fees were $2,200 for 2018 and would go up to $3,000 January 1, 2019, if we did not convert. They said at Silver the maintenance fees will not go up. Especially under the circumstances, we are upset that we were lied to. We bought 15,000 U.S. Collection points July 16, 2018, at Cancun converting PVC points to U.S. points purchased for $33,000. Amount financed: $28,000.
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.
Thank you Patty for your time and effort and we hope that your next round of protests goes well. We are also very sorry to hear that your own complaint was turned down. We have with your kind permission attached a PDF of the letter you received from the Nevada Real Estate Division.
