Welcome to this week’s Letter from America. Over the years Inside Timeshare has been running this series of articles. We have heard from so many elderly people, veterans, and serving military personnel, all have told similar stories. These revolve around the lies and untruths members allege are told by sales agents employed by Diamond and other developers to sell their product. The initial response to complaints has always been the same, “We are not responsible for what the sales agents say” and “you signed the contract”.
Today’s article was not going to be published, but due to comments made on various social media platforms which Inside Timeshare posts, it was decided that this Open Letter was the only reply. It was one comment made by the Timeshare Crusader which really did spark this change, in the comment Lisa, who we do have a great deal of respect for, calling consumers “gullible”. Considering the horror stories we have published we felt this had to be addressed. Over-reliance on the oral representation sentence, buried in a lengthy contract, implies the consumer is at fault. Only a biased observer will hold deceptive agents blameless.
ARDA has never appeared to address this issue, and as a reminder about oral representations, we do believe that it is too little too late, a case of “closing the stable door after the horse has bolted”. They also do not go far enough to protect consumers from their ARDA members or sanction them when they allow sales agents to say what they like.
An Open Letter to ARDA and Timeshare Crusader Explaining Why the Victim should not be Blamed
- Beth in Arkansas, on behalf of younger people buying timeshares,
- Tiffany, on behalf of her elderly parents,
- Adam, on behalf of veterans and active-duty military,
- Bernadette, on behalf of those experiencing serious medical conditions,
- A timeshare member from 2017 who holds a security clearance
May 7, 2021
If you are considering buying a timeshare for the first time or you are an owner thinking about adding to your vacation ownership portfolio, ARDA-ROC and the Timeshare Crusader recommend that you consider, at a minimum, the following:
If ARDA and Timeshare Crusader would take the time to read our articles, they would learn why the victim should not be blamed. We are disappointed, but not surprised, that neither organization holds deceptive timeshare sales agents and managers accountable. On a short vacation, if promised the ability to sell points, rent points, access “equity” or refinance, no one is going to attempt to do that while on vacation. The rescission period is easily dodged. It is easy for those who have not experienced a predatory timeshare experience to judge.
This inability to fully grasp how emotion or “affect” influences our decision-making is crucial to understanding why fraud occurs… Even victims who are interviewed after the fact, criticize themselves….This is because they are no longer inside the situation – no longer having their emotions manipulated and vulnerabilities exposed. The ether has worn off.
ARDA and Timeshare Crusader talk about how financing a timeshare is like financing a house. No, it’s not. Home mortgage rates in the U.S. are at 2.882%. Timeshares are financed at 12% to 19%. If a Barclay credit card is used, the interest rate after the grace period is over 20%. If you buy a house but then decide you don’t like the house, you can sell it. Timeshares are virtually worthless.
Tiffany: My elderly parents were deceived in 2019. The security clearance holder who shares her similar experience below is not a senior, yet she fell for the same pitch that my parents fell for – you have to give up your deed and buy points. My parent’s “QA” agent kept them for 11 hours. My mother called me during the ordeal. I told her to leave. She said she couldn’t because they had their credit card and driver’s license. They attended because they were told if they didn’t attend, they would be charged for their stay. They were browbeaten into giving up the Gold Key deeds they had owned for years. There was nothing in the contract that would have addressed this falsehood, and after 11 hours without food, water, or necessary medication, they were defeated. Diamond’s response was they sounded just fine on the recorded “QA” closing. They lost the two Gold Key deeds that they had for years, and over $30,000 after being told they had to give up their deed and buy points. The full story:
Tiffany Renee’s parents kept for 11 hours:
Bernadette’s Change.org Petition to remove an offensive YouTube: https://www.change.org/Michael-Flaskey-MO-WA-AG-take-down-YouTube
Why timeshare presentations should be off-limits to active duty military:
Adam, Bernadette Tiffany: Why Buyers Need to Record the Sales Session https://insidetimeshare.com/fridays-letter-from-america-should-sales-presentations-be-recorded/
Beth in Arkansas:
I worked as a Covid nurse during the height of the pandemic. My parents gave me 10,000 Liki Tiki points. At a presentation I attended in Tennessee, I was told I had to give the points up because they were so limited. The agent said I could get 5,000 additional points for $4,500. It wasn’t until later I learned I had a $45,000 loan. That’s more than my student loans. I would have never bought the points. Diamond Resorts blamed me. They said on the recorded closing I was informed of the total purchase price. I certainly did not hear that because I would have never signed. I wanted to listen to the recording but they said I could only do so by subpoena. They only provided a transcript in which the QA agent stated the purchase price. I have to trust that the transcript is accurate. I learned that to listen to the recorded closing, I had to get an attorney to send a subpoena, but to send a subpoena, you have to file an arbitration case. I’m 24 years old. It’s too much. I have no choice but to default. My mother is horrified. She thought giving me her Diamond points was a good thing.
A November 30, 2018 article by a Diamond member with a security clearance:
Timeshare sales can pose a national security risk. For those of us with security clearances, our careers could be in jeopardy if we believe a timeshare sales agent and find ourselves forced to default on a timeshare loan. Since the timeshare sales agent knows they will suffer no negative consequences, if deceptive tactics are employed, they are given the green light to sell by any means, knowing the consumer will be blamed.
Diamond should want the public to know this.
At a December 17, 2017 meeting, we asked Davia H about selling our deeded Sunterra timeshare. We had no loan and had tried unsuccessfully to sell it. Davia said there was no way to sell our Sunterra timeshare because we did not have “Full Club Member” benefits. She encouraged us to become “Full Club Members” so we could easier sell the timeshare. Davia said our Sunterra timeshare was worthless. We needed to upgrade to “Full Club Member” benefits to receive “benefits that would increase the value of the timeshare to make it worth buying.” We feel not informing us that timeshare points are worthless was a material omission.
She used asymmetric information. This is where one party has more or better information than the other.
Davia advised us to wait six months before trying to sell (to avoid the rescission period) because the value of the timeshare would increase. She said she knew someone who helps people sell their timeshares and could give us her contact’s information. Repeated calls and texts to Davia went unanswered.
Diamond used the recording of the Quality Assurance signing session against us. Why would we ask the question of the ability to make money or sell points if we didn’t know Diamond points were worthless? The recording of the QA was reported in a Diamond CLARITY press release to be for the purpose of enhanced training. In my opinion, the recorded closing is used as an entrapment.
I signed Bernadette’s petition. We are proof that if you do call Diamond, you will be told, “Sorry, you didn’t bring it up on the recorded closing.” I sent our complaint to this list of contacts found on our advocacy Facebook page. They didn’t care.
To: Michael Flaskey, CEO
Barclay’s President’s Office
DR PR Firm
This article has been written last weekend and has been set to publish automatically. Inside Timeshare may be back at some point in the next week or so, depending on recovery from surgery.
Have a great weekend.