Browse Tag

ANFI

News from the Canaries: Tauro Beach; Nordic Consulting

Over the past few years Inside Timeshare has been following the story of the Anfi Tauro Beach Project. This was the creation of a manmade beach along with the development of the land to build a commercial centre and hotels. As we know there has been much controversy over the project, with the Head of the Coastal Authority José María Hernández de León being sacked and charged. His trial has now begun.

The former head is being prosecuted for illegally authorising the creation of an artificial beach at Tauro. The project was being financed by Anfi, who saw this as their flagship project, it would also involve the illegal importation of sand from the Western Sahara, which is banned by International law as well as Spanish and European law.


José María Hernández de León

On the first day of the trial, the charges are of prevarication and falsehood, which Hernández denies vehemently, stating he always proceeded within the law. The Environmental Prosecutor has called for a jail term of three and a half years.

This trial is set to open up a can of worms, especially if it turns out that Anfi had influenced the passing of the plans and the starting of the work without the correct permissions and licences.

The Mayor of Mogan Onalia Bueno was also being investigated for authorising the work to start before the permissions were signed, several months after the fact. That investigation is still underway.

We shall bring you the latest news on this trial as it emerges.

Link to the news report on the first day

https://cadenaser.com/emisora/2019/05/15/ser_las_palmas/1557931479_570338.html?ssm=fb

Link to all articles relating to this story published by Inside Timeshare.

https://insidetimeshare.com/?s=tauro+beach

Information has been received by Inside Timeshare that Nordic Consulting Canary Islands, based in Tenerife and run by the Farhoud brothers is now targeting Dutch clients of Silverpoint.

The calls are being made by a former sales agent Geert de Greef, in the call, he is offering the client the chance to take legal action through the courts against Silverpoint, the cost 15,000€, but he then drops the price to 10,000€.

Geert de Greef apparently is also sending out a POA (poder) without the agreement of the client. In the agreement all the client’s details including passport numbers are present, this only leads us to believe that he is working from the official client data held by Silverpoint. So does this mean that they are cooperating with Silverpoint or have the details been stolen?

This is something we leave you the reader to decide, whichever it is, it certainly is not ethical and may even be in breach of data protection laws due to the information that they are holding such as passport details.

If you have been contacted by Nordic Consulting and especially Geert de Greef, contact Inside Timeshare and we will point you in the right direction, remember it may not be illegal to cold call but holding personal information without your knowledge or permission is.

Friday’s Letter from America

Welcome to this weeks Letter from America, today Irene Parker sets out instructions on how to file complaints with the FBI and the FTC (Federal Trade Commission). Unfortunately, many of the requests for help Inside Timeshare receives fall into the category of fraud, yet the industry still does not recognise that they need to change.

Before we start a bit of news from the Spanish Courts.

The lawyers from Canarian Legal Alliance have been at it again this week with a resounding 25 sentences issued against timeshare companies.

These have been broken down as 3 issued from the High Court and 22 from the Court of First Instance. With Anfi receiving 24 judgements against them and Club La Costa receiving 1. The Club la Costa case was heard at the court of First Instance in Fuengirola, Malaga and is the very first case to involve one of CLA’s Spanish clients. (Click on the PDF below for the court sentence).

The other cases were clients from the UK and Scandinavia, with most receiving double the deposits paid and the return of legal fees, all contract were also declared null and void.

The total amount awarded in all these cases is a staggering 828,329€. So congratulations to the clients and also the entire legal team at Canarian Legal Alliance.

Now for our Letter from America.

Timeshare Accountability Group™

FBI and FTC Filing Instructions and Talking Points

April 26, 2019

By Irene Parker

When timeshare members feel they have experienced unfair and deceptive timeshare sales practices, the member should first reach out to their resort in an attempt to resolve the dispute. If informed, “You signed a contract” or “We are not responsible for what our sales agents say,” file a Better Business Bureau complaint and file a complaint with the Attorney General from the state where you signed a contract.

Unfortunately, some timeshare complaints meet the FBI definition of white-collar crime. If the complaint is of a nature that meets the following description, file with the FBI at IC3.gov or file orally by contacting an FBI field office.

# 1 IC3.gov

Timeshare fraud falls under White Collar Crime/Mortgage Fraud/Financial Institution Fraud/Fraud for Profit. click on the link below to read about mortgage fraud. The general definition of white-collar crime is “deceit, concealment, violation of trust, and bait and switch.”  

Fraud for profit: Those who commit this type of mortgage fraud are often industry insiders using their specialized knowledge or authority to commit or facilitate the fraud. Current investigations and widespread reporting indicate a high percentage of mortgage fraud involves collusion by industry insiders, such as bank officers, appraisers, mortgage brokers, attorneys, loan originators, and other professionals engaged in the industry.

Fraud for profit aims not to secure housing, but rather to misuse the mortgage lending process to steal cash and equity from lenders or homeowners.

The FBI prioritizes fraud for profit cases.

https://www.fbi.gov/investigate/white-collar-crime/mortgage-fraud

To file a complaint with the FBI, select IC3.gov from the three choices available. It’s confusing because IC stands for Internet Crime, but it doesn’t have to be about internet crime. That’s just the name of the portal. You can file a complaint on behalf of someone else. At the end of the form it will ask if you are filing on someone else’s behalf.

https://www.ic3.gov/default.aspx

Some of the information that the IC3.gov online form asks for is not necessary – fields like routing numbers, bank addresses. Don’t worry about having all that information. They are not required fields. Victim bank is the bank from where you made payments or the credit card company. Subject bank is where you send your payments.

If you receive additional information after filing an original complaint, there is a handy box to check that asks, “Is this an update to a prior report?” Start the complaint over, but check that box to add the new information.

Step #2 File an oral FBI report 24/7

You can also file orally by contacting an FBI field office. Contact the field office where you signed a contract. Members have reported some agents have spent one or two hours on the phone with them. One member met with her FBI agent!

When you call the field office, select “Submit a Tip” then wait for the white-collar crime prompt. One person ended up in the wrong pew of the right church told they had to have lost a million dollars or more to file a complaint. That’s not true.

Members report the FBI has been responsive, but the FBI agent needs to be convinced getting a lawyer will do nothing to stop the problem of timeshare fraud for profit. Timeshare companies have armies of lawyers and they can drag a proceeding on forever until the member is broke. It is an understatement to say timeshare attorneys don’t look favourably on the arbitration process.

In Florida call the Tampa Field Office

https://www.fbi.gov/contact-us/field-offices/

Whether filing at IC3.gov or orally, you can provide the name and phone number of other victims, especially if you are aware of similar complaints. That way the FBI can look up other reports directed against the same repeat offender sales agent.

Sheila Brust’s article, “Just the Facts, Ma’am” is about her experience reaching out to the FBI. Sheilah worked for New York Governor’s Office of Employee Relations. The FBI advised Sheila to file with the Secret Service because her allegation also involved credit card fraud.

www.secretservice.gov                                                       

Don’t expect to hear back from the FBI. They don’t work like that. That doesn’t mean they are not listening. It takes volumes of complaints and a pattern of complaints to launch any investigation, whether with the FBI or with an Attorney General.

Filing your own complaint requires dedication and perseverance. Resolutions can be accomplished, empowered with information the member needs to take matters into their own hands. Thinking beyond their own dilemma, members can become one of our volunteer Supporters to help others.

Our Complaint Instructions were revised by a millennial timeshare buyer who followed our complaint instructions to resolve her dispute.

How to File a Complaint revised January 25, 2019

Timeshare member complaints tend to start out convoluted and confusing. We suggest having a friend or neighbor, not familiar with timeshare, read your complaint to see if it makes sense. Provide examples. Expect to be denied. Read the reason for dismissal and respond with a rebuttal.

Saying things like “I can’t afford this” is useless. You can’t go to your home mortgage lender and say “I can’t afford my home mortgage” and expect them to take your house back. You signed a legally binding contract. If there was no deception, you are bound by the contract, although it’s possible to request a contract cancellation due to medical or financial hardship.

We refer to a lawyer about one in ten times when all else fails, or the member does not have the time or energy to follow our process, which is admittedly timeshare consuming. A list of reputable law firms is provided upon request.   

#3 File with the Federal Trade Commission

The FTC online form has a “Timeshare Sales” option. It’s not easy to find. Instructions are in this article. Don’t be discouraged by receiving only a “Here’s some timeshare tips!” response. https://insidetimeshare.com/the-tuesday-slot-13/

Extra Talking Points

You must inform the FBI agent why you experienced unfair and deceptive sales practices. The agent you speak with may know nothing about timeshare basics. Explain the contract is perpetual, there is no secondary market, and when members complain, the company often hides behind the oral representation clause.

Your mission is to convince the FBI that this is not about only a few complaints. This article “Timeshare Foreclosure Explained to Lenders” lists just a few of the Attorneys General investigations and lawsuits, and the St. Louis Better Business Bureau report tells consumers what to watch out for:

Timeshare Foreclosure Explained to Lenders

St. Louis BBB report

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

Why doesn’t the government do something about this?

  1. There is no federal enforcement,
  2. Timeshare Attorney General Investigations and settlements are usually mere financial speed bumps, comparable to fining an NFL player $10,000. One exception is The Manhattan Club settlement. https://nypost.com/2017/08/17/new-york-ag-reaches-6-5m-settlement-with-manhattan-club
  3. When a member complains, they are shown their initials on the fine print,
  4. Retaining an attorney will not stop unfair and deceptive business practices,
  5. Litigation is time-consuming and expensive,
  6. Arbitration is widely known to be pro-industry. If you lose you can end up paying the resort’s arbitration fees. The resort hires the arbitrators.
  7. The CFPB has been rendered ineffective. Even in the CFPB heyday members could not file a complaint because the borrower often doesn’t even know the name of their lender. You had to select a financial institution from the dropdown menu and timeshare companies are not a choice.
  8. Some lawmakers may be influenced by lobby dollars, as reported by The Daily Courier. https://www.dcourier.com/news/2019/apr/16/opt-out-provisions-timeshare-bill-no-longer-table/
  9. Some state AGs turn a blind eye. At a Florida legislative workshop in Tallahassee March 12 of this year, the spokesperson for the Florida AG reported their office received 1,600 annual timeshare complaints in 2017 and 2018, mostly about the initial sales presentation, 50% seniors, of which the AG engaged only 42 of the complaints, mostly about resales. This spells no enforcement. The Nevada Real Estate Division responded to all our readers with a “You have no proof letter.”
  10. Timeshare members give the ARDA ROC Political Action Committee approximately $5 million dollars annually, often “Opt-Out” donations. We have heard from over 800 timeshare members. Not one could tell us what ARDA ROC even stands for. ARDA ROC vigorously opposed recent proposed pro-consumer changes in Arizona.  

Let us know if you are active duty military, law enforcement, a government worker or a veteran, as we are supported by WhistleBlowers of America. They added timeshare fraud to their March 14, 2018 report before the Committees on Veterans’ Affairs (the Consumer Financial Protection Bureau has since been all but dismantled and we changed our name from TS Advocacy to Timeshare Accountability Group):

United in Speaking Truth to Power

www.whistleblowersofamerica.org @whistleP2P

601 Pennsylvania Ave, South Tower, Suite 900 Washington, DC 20004

Statement of

Ms. Jacqueline Garrick, LCSW-C

Executive Director

Whistleblowers of America

Before the

Committees on Veterans’ Affairs

U.S. Senate

U.S. House of Representatives

March 14, 2018

House and Senate Committee Members:

Whistleblowers of America (WoA) was incorporated in 2017, as a newly focused nonprofit service organization providing peer support to whistleblowers, so we are honored to be able to share our concerns with you today. The majority of our contacts are with Department of Veterans Affairs (VA) employees or veterans who have identified waste, fraud, and abuse, medical errors, denials of care or benefits, discrimination, harassment or bullying.  For doing so, they have suffered reprisal and retaliation. From the report:

Fraud and Scams Against Veterans:

Although WoA recognizes that it is not inherent within the VA mission to protect veterans from fraud and scams that could cost them their benefits, it suggests that it could be assistive in educating veterans against these unscrupulous tactics. For example, WoA has had multiple complaints from veterans related to timeshare deceit and bait and switch tactics, which are defined by the FBI as fraud for profit.  Often elderly veterans are mentioned as being targeted by the Timeshare Advocacy Group, TM which fights for active duty and retired military who fear losing their security clearance, career, homes or other assets.  Foreclosures and financial distress because of these misrepresented investments are happening every day to elderly disabled veterans and their families. In the past, VA has cooperated with the Consumer Financial Protection Bureau (CFPB) over mortgage and other loan scams that caused financial hardships for veterans.  Home loans and timeshare loans are identical as both are reported as foreclosures. WoA asks that Congress consider a role for the VBA Employment and Economic Initiative (EEI) could play in cooperation with CFPB to educate and protect veterans from unscrupulous financial predators and fraudulent practices.

Consider a donation to Whistleblowers of America if you have been helped by Timeshare Accountability Group™

It’s remarkable that a timeshare member must go through this many stressful hoops concerning a product that was sold to be stress reducing. If you have skills that could help others, consider becoming a Supporter. Contact TAG.

Related articles:

3Rs or F of Timeshare

The Timeshare Tax Trap, February 26, 2019

Arizona HB 2639, March 1, 2019

Arizona HB 2639, March 5, 2019

Florida HB 435, March 15, 2019

Florida HB 435, March 19, 2019

Nevada SB, March 22, 2019

Arbitration October 24 2017

Member self-help groups

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you Irene, this information should prove a great help to many of our readers, it is just a shame that we have to resort to this type of action. One day the industry may just realise that it is through their own greed that they are on the receiving end of so many complaints.

Once again the weekend is upon us, whatever you are doing and wherever you are, have a great weekend and join us next week for news and information on the murky world of timeshare.

Mid Week Roundup

Over the past few weeks Inside Timeshare has been highlighting the growing rise in EZE Group customers being contacted with stories of companies being “appointed” or “retained” by the courts to help them get their money back.

Well, it hasn’t stopped, Inside Timeshare is still receiving many enquiries from concerned coustomers who have been contacted. Today we published the company names and adresses along with some of the names that have been supplied from our readers.

First we begin with Money Advice Limited, this company is newly registered at Company House, being incorporated only on 30 January 2019, so it is not even 2 months old. Company Registration Number 11796746 with the registered address:

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

Telephone number 061 505 0398

Names of callers supplied are: Mark Spalding, Thomas Jones and Irene Golding.

Again the story is the same, they have been “appointed or retained” by the High Court in Madrid and can get back the money, but a processing fee of £725 is required. One reader was also told that they had to travel to Tenerife and get a “Spanish Tax Number” which would cost £1595.

The next one is Claims Assistance Bureau Limited, Company registration Number 06832938

Ty Glen, 1 Brecon Court, William Brown Close, Llantarnam Industrial Park, Cwmbran, NP44 3AB

Tel: 02920099129

This particular company has also gone one step further, they highjacked a genuine company name to give themselves credibility, Claims Advice Bureau (UK) Ltd, with the Company Registration Number 05518043 and the registered address:

128-130 Whitworth Road, Rochdale, OL12 0JJ

This company was informed and have reported this to the authorities.

The next one on our list is Egerton Advisory Limited, Company Number 10286171 and the registered address:

Eighth Floor 6 New Street Square, New Fetter Lane, London, United Kingdom, EC4A 3AQ

With an alternative location address registered as:

Q3 The Square Randalls Way, Leatherhead, Surrey, KT22 7TW

Telephone number 0203 745 2315

The directors are named as: Victoria Noland Carter Egerton and William Luke Le Beward Egerton, both registered the New Street Square address. With the caller being named as Sarah Elliot.

One reader was emailed by Sarah Elliot within an hour of speaking with Mark Spalding of Money Advice Ltd, in her email she reiterated what Mark Spalding had told our reader, although she did refer to him as Mr Smith.

So it is obvious these are all working together, either they are ex-employees of Eze Group or have purchased the data from an employee.

The courts do not “appoint or retain” private companies, plus the trial against Dominic O’Reilly and Stephanie O’Reilly was at Birmingham Crown Court and nothing to do with the High Court in Madrid.

If you are contacted by any company with a similar story, then it is going to be a scam, use our contact page and let Inside Timeshare know, that way we can warn others.

Staying with the courts, Canarian Legal Alliance has this week 25 cases being heard in various courts around Spain, that is an incredible 5 per day.

We have also just received the news that so far this week they have received an astounding 14 sentences, full details have yet to be released but we have been told of these three:

Court of First Instance, Maspalomas, Anfi have been ordered to return over 5,775€ plus the contract has been declared null and void.

At the same court Anfi once again has been ordered to repay over 117,000€ plus double the deposit and the contract being declared null and void.

The same Court of First Instance has also ruled that Anfi repay over 7,000€ plus double the deposit and another contract declared null and void.

Again the truth is the timeshare companies are losing despite what they and the industry report, consumers now have the backing of the law and the courts. If you have been sold a timeshare in Spain after 5 January 1999, it is for a period greater than 50 years or known as perpetuity, you have floating weeks, points or fractional and you also paid any money within the cooling off period and you would like to know if you have a valid and viable claim then contact Inside Timeshare and we will point you in the right direction.

Thursday Update

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Adrián Diaz-Saavedra Morales

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

Start the Week: Latest News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Mid Week Report

Welcome to The Mid Week Report, today we highlight a some of the breaking news in the world of timeshare, the trial of the late  John “Goldfinger” Palmer associates at the Audiencia Nacional, National Court in Madrid, highlighted in previous articles, (links below).

It appears that the Anti Corruption Prosecutor’s Office has reduced the highest penalty of imprisonment to 24 months, a far cry from the 8 to 12 years originally called for. The reason is that the Prosecutor’s Office applied a mitigation of undue delays as the investigation which actually began 20 years ago.

However, the defendants will be liable for a subsidiary civil liability of 1,890,000 euros. A rather paltry amount considering the millions that was scammed from their victims.

The defendants in court

The largest sentences of 24 months were given to Richard Cashman, Palmer’s lieutenant, for illicit association, fraud and money laundering.

Darren Morris was hand 10 months for unlawful association, 10 months for fraud and 4 months for money laundering. He was also handed a further 1 year for a firearm with the serial number erased, which was found in his home.

Paul Murry, Keith Peter Davies, Neil Campbell Lockie and Dean Wells, all involved in supporting Palmer’s business when he was jailed in the UK, face 10 months for illicit association and 10 months for fraud.

Christine Ketley who was jailed for 2 years on 2001 in the UK along with palmer and the lawyer Ramón Solano seem to have been spared sentence.

The prosecutor had also asked for a sentence of 8 months for Jacobba Visscher who ran the headquarters of Dinastia Resorts for 44 charges of fraud, this is reduced from the 8 years originally requested.

In the end although they have finally been brought to court, somehow the victims will not think that justice has actually been served.

Link to news report in Canarias7.

https://www.canarias7.es/siete-islas/tenerife/la-fiscalia-rebaja-a-24-meses-la-pena-maxima-por-el-fraude-de-la-multipropiedad-de-john-palmer-en-canarias-IC6510831?fbclid=IwAR093WufWmxBrdd8-pAd7sbEmeubBSdeDvPviPvruPS6CgSKNNJB90rN_t8

Links to previous articles.

http://insidetimeshare.com/start-the-week-associates-of-john-goldfinger-palmer-now-in-court/

http://insidetimeshare.com/update-the-john-goldfinger-palmer-saga/

Canarian Legal Alliance has announced the following, which will be good news for their clients.

In Gran Canaria the Judges in Maspalomas have been consistently declaring there is no need for cases against Anfi to go to a full trial. These Judges have decided to pass their resolutions at the preliminary hearing, yesterday 5 January, 5 preliminary hearings took place with all 5 having results announced without the full trial. For the clients this will mean no travelling for the trial and a much speedier resolution to their case.

In Tenerife a cash embargo has been placed to the value of 44,494.20€ against Silverpoint. Great news for this particular client, as the original claim was 32,791.75€, 11,702.45€ more. They will also get legal fees and legal interest.

Back to the courts in Gran Canaria, Another embargo has been placed against Anfi to the value of 12,882.79€ on behalf of a German client. The enforcement team consisting of the lawyers Judith Diaz Pascual and Cristina Batista are obviously doing a fantastic job on behalf of their clients.

In January the state of play was:

    • 76 trials in all Spanish courts 
    • 18 appeals
    • 28 appeals from the opposition
    • 1 supreme court hearing
    • 21 provisional executions
    • 9 provoked interventions
    • 1 cash embargo against Anfi
    • 47 sentences all in favor of our CLA clients
  • 1.600.000 € in claim amounts

Once again this does go to show that contrary to some posters on various forums and websites that have an axe to grind that CLA does not do what it says and along with the timeshare resorts and RDO who deny they are losing, or that the courts have got the law wrong,  that is certainly not the case. These are all a matter of public record and can be verified.

If you have any comments or questions about this or any article published then use our contact page, we welcome the feedback.

Also if you have had dealings with any company or are about to with regards to a possible claim against your timeshare resort, but are not quite sure if it is genuine, then again use our contact page and we will give you the best advice possible.

The Tuesday Slot

Welcome to The Tuesday Slot, this week we welcome another new contributor, known only as “Industry Observer” as he wishes to remain anonymous. The introduction is once again by our very own Irene Parker, who was very excited to have this published, as it is from someone who has watched the industry for many years even though he has never purchased. It is certainly a very welcome independent insight into the timeshare industry and sales presentations.

Firstly a little news provided by Canarian Legal Alliance, they are certainly going to be keeping the courts busy over the next month.

At present they have in various courts around Spain 75 pre-trial scheduled, the three main timeshare companies are Anfi on Gran Canaria, Silverpoint on Tenerife and Club la Costa who have resorts on mainland Spain and the Canary Islands. Pre-trials are basically a formality and a last chance for a settlement to be reached before the case goes to a full trial. At the Courts in Maspalomas, Gran Canaria, 4 judges have been dealing with cases at this stage and issuing sentences without the need to go to a full trial. They have sat on so many cases now that they feel it is a waste of the courts time to set full trials. This has certainly speeded up the process for many clients.

Along with the pre-trials, the are 26 trials to he heard against the same timeshare resorts, again at various courts around Spain. We hope to bring you news of the conclusions as and when the cases are concluded and the judges issue their judgements.

One of the many complaints that Inside Timeshare receives from readers about their timeshares is the number of resorts that are advertising on the internet and the various booking websites.

This was sent to Inside Timeshare from one very angry reader, (see link below), it is for Select Marina Park, Mijas, Costa Del Sol. This is a Club la Costa Resort, which as we know is not a cheap timeshare to buy. It also uses the points system, which has been deemed illegal by the Supreme Court on many occasions, the reason is that it lacks any substance.

What that means is that you do not actually have any guarantee of booking your holiday accommodation, it is subject to availability. Yet this resort is being advertised on hotels.com for a fraction of the cost of the exorbitant maintenance fees that owners / members are required to pay annually, on top of the original extremely high purchase price. Is it any wonder that so many timeshare purchasers want out of their contracts!

https://uk.hotels.com/ho278895/?q-check-out=2019-02-24&tab=description&q-room-0-adults=2&YGF=14&q-check-in=2019-02-17&MGT=7&WOE=7&WOD=7&ZSX=0&SYE=3&q-room-0-children=0&fbclid=IwAR1grWTKZjEyb8FbVqjn5cSw_7EABpY-akPpfUEq9Z51wfQ_LSmrzDgiTVs

Now for our Tuesday article.

Why at Age 70 I Have Never Attended a Timeshare Presentation

Introduction by Irene Parker

Timeshare members are always grateful when a member who has been through the complaint or foreclosure process, thinks beyond their own Nightmare on Timeshare Street to support others. There is nothing more frustrating than groveling before timeshare customer service representatives who dismiss complaints of unfair and deceptive sales practices with, “You signed a contract” or “We are not responsible for what our sales agents say.” Our deepest gratitude to the author of today’s article who has been keeping Charles and me informed of industry developments over the past two years so we can in turn pass that information on to our readers. He has never owned a timeshare.  

By an Industry Observer

January 22, 2019

I have been a timeshare industry observer since 1985. I have concluded that timeshare is not for me. I shun contracts (especially perpetual ones) and I don’t plan very well in advance. For those with disposable income and the ability to plan, timeshare may be a rewarding experience. However, I would advise looking to the resale market for the best bargains. And, I would study the industry before dipping my feet in the resort pool.

In 1985 my wife and I were at North Myrtle Beach, South Carolina on our first beach vacation. Upon leaving the supermarket, I noticed a flyer underneath our car’s windshield. Similar flyers were under all the out-of-state car windshields. The flyer offered a $40 gift to preview a new resort in North Myrtle Beach. Husband and wife were required to attend. A minimum income of $30,000 was required, as well as a driver’s license and credit card. Military couples with a certain minimum grade level were also welcome. I thought, “Why do they have to pay people to go see something for sale?”  People don’t get paid to look at houses or condos, and condos were quite the rage in Myrtle Beach in 1985.

I filed this experience in the back of my mind. It would reemerge numerous times in the future. On subsequent vacations to Myrtle Beach, Virginia Beach, Charleston, Orlando, Branson, and of course, Las Vegas, I would become more than aware of the smiling faces of OPCs who wanted to be my friend to get me to attend a tour, open house, remodel, new resort – whatever. Each approached us at a boardwalk or a booth, often a hyped-up boy or girl who had something special to share with me for only a few minutes of my time (90 minutes). I always reacted poorly to these solicitations since #1: I was on vacation and #2: I am not a real estate guy.

Fast forward to 2012 – I was in the midst of closing a company that I had run for 24 years. The economy had been unkind to the printing industry. I had to close the doors to my tiny empire and move to an early retirement. Fortunately, I could afford to do so. In 2013, finding myself with time on my hands, I decided to study the timeshare industry which had been in the shadows of my vacations. Three of my friends owned timeshare in different systems. I had quizzed them on their experiences. One loved his relationship.  The other two had mixed feelings about whether the process was worth it.

I began to google the names of timeshare operators along with keywords – problems, complaints, regrets, and lawsuits. Come to find out, there were a lot of people who bought timeshares that either didn’t want them or felt they had been duped into buying them. As mentioned, many are satisfied with their purchase, but it appeared many families had been financially harmed by their decision to buy a timeshare.

I have spent five plus years spending an hour or two a day on sites like TUG, RedWeek, Inside Timeshare, Inside the Gate, YouTube, and complaint sites. I developed a theory as to how the timeshare companies succeed in plying their trade.

Here are my simple conclusions:

First:  It starts with a bribe. It may be money, food, gambling, discounts, shows, or trips. Prospects are offered something of value by an OPC (outside person contact) for attending a presentation.  David Siegel, Jr. of Westgate timeshare fame, has termed prospects “mooches.”

https://www.youtube.com/watch?v=Y_gFaO11sNY

Second:  It is seldom the promised 90 minutes. The goal is to play a game of attrition. The longer the interview, the better the chance of capitulation – the customers will buy SOMETHING even when there may be an agreed upon pact not to buy. There is a good possibility that the prospects will break down and sign just to get their gifts and get out the door.

Third:  There will be more than one presenter. First is the “greeter” who will become your friend. They need to see your driver’s license and credit card. The driver’s license is to verify the family relationship and the credit card is to run a credit check. The credit check may be an unwanted surprise. The first sales agent will extol all the virtues of membership. If there is no bite, he/she will get approval to lower the price. After the initial sales agent, comes the manager or “closer.” He/she is out to make sure a sale happens. The friendliness will have worn thin. Prices will be reviewed and maybe lowered again. The sale needs to be made. If no sale has ensues, then comes the “survey person.”  He/she will review the presentation, the offers, and reasons for not buying. He/she will try one last attempt to sell an exit package. It may be a “discovery” “trial” or “sample” package. This will allow the prospects the chance to check out the resorts in the system, but requires another presentation. Trial packages are limited in scope and availability.

Fourth:  The whole job of the sales team is to make a SALE and that sale needs to be made TODAY. They know no one comes back later to purchase a timeshare. The sales team is on commission. They don’t eat if they don’t sell.

Fifth:  Truth may take a back door to the need for a sale. There is a clause in most, if not all timeshare contracts, that says the prospect did not rely on verbal representations to make their purchase. How many of us have relied on the ethics of the salesperson sitting across from us when buying a car, boat, condo or house? In Florida timeshare sales agents are licensed sales agents but they are exempted from the ethics requirement! It’s pretty scary if you can’t rely on ethics.

The terms of the contract are in the contract – not in the words of the salesman. The salesman may say that the company will buy back your timeshare. They won’t. He/she may say that the timeshare will go up in value. It will not.  He/she may say that you can go anywhere at any time. Complaints about availability abound. Attorney Mike Finn called this verbal representation clause a “license to lie,” and the beleaguered buyer unwittingly signs voluminous documents containing this one toxic sentence timeshare companies over-rely on.

Sixth:  Most timeshare contracts are perpetual. Once the three to ten day state contract rescission period is up, the buyer may have no other option but to pay the mortgage and maintenance fees if they cannot convince the timeshare company to break the agreement. It can be sold or given away, but the marketplace is almost non-existent. A default can have dramatic consequences on one’s credit score.

Seventh:  Sales people will make sure that no hand-written notes leave the room. False promises are not in the contract. The contract is long and initialed in many places. There are three things to be especially aware of.

  1. There is often a clause that says the company can change the terms and conditions of the contract whenever they want. Why even have contracts when benefits can be changed at any time?
  2. Accommodations are subject to availability. There are many complaints about lack of availability. Actual availability often cannot be verified until the buyer has access to the booking site, conveniently after the rescission period has expired.    
  3. These days contracts are often signed electronically, meaning your initials are stored and then tapped, tapped, tapped on a cheap tablet even tech savvy buyers find hard to read.

Eighth:  Timeshare contracts have a rescission period, which varies by state. It may be three to ten days. There are creative ways sales agents and their company can dodge the rescission period. A new program to be relieved of maintenance fees (that doesn’t exist) won’t be available until after the first of the year. While on vacation, sometimes with the kids, reviewing complex contracts can be a difficult chore. Sadly, even reading the contract doesn’t always disclose some of the pitfalls, like availability.

Ninth:  Roughly 50% of the cost of a timeshare purchase is the marketing, promotion, and commission costs. Think about it. If you list your house for sale, you pay 6% or 7% commission. What would happen to your home price if you had to pay a 50% commission to buy? Add that to the false promise that your timeshare is easy sell and you have a disaster waiting to happen. Sellers are lucky to get 10% of their initial investment back, thanks to the lack of an adequate secondary market. Timeshare developers don’t even want the timeshare back. You may even have to pay the developer a fee to take the timeshare back.

Ten:  Timeshares can be purchased on the resale market for pennies on the dollar. Sites like Tug2.net, Ebay, and Redweek have real people selling real timeshares for bargain prices. You can check with a member of the Licensed Timeshare Resale Broker Association to find out if your timeshare has a secondary market value. They can explain the pros and cons of buying from the secondary market compared to buying directly from a timeshare sales center. Plus LTRBA members have knowledge of all timeshares.

Don’t jump. Don’t believe you have to buy TODAY. Research the company. Research the industry. Social Media is here to stay. Chances are there is a member Facebook page out there for the timeshare you are considering, with members reporting positive and negative experiences you can evaluate. Do your timeshare math to calculate the purchase price, borrowing costs, and annual fees, not to mention special assessments. Check the resale market.

Vacation Smart!

Thank you to our Industry Observer for his observations. Here are a few member sponsored sites to check with to determine if you are jumping into your vacation dream so that you don’t end up one of our Nightmare on Timeshare Street authors:

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you Irene for the introduction and a very big thank you to our industry observer for this article and all your information over the past two years.

If you have any comments on this or any other article, please use our contact page, we welcome your insights.

If you need any information about any company that has contacted you, that you have found on the internet or from an advert in a publication, then again use our contact page and we will help you do your credibility checks. Remember, doing your homework is one of the most important ways of saving you from losing your hard earned cash.

 

Canarian Legal Alliance Announce End of Year Results

What a year 2018 has been for the lawyers at Canarian Legal Alliance, they have recently announced their end of year results and it is impressive to say the least.

They have ended the year with 131 Supreme Court rulings, this is unprecedented in Spanish legal history, the last 2 rulings being made against Diamond Resorts. These judgements reinforced the previous ones by Spain’s Highest Court that contracts over 50 years, floating weeks and points systems along with the taking of any payment, even by a third party within the cooling off period are in breach of Spanish Timeshare laws 42/98 and 4/12.

In another landmark ruling from the Courts of First Instance in Tenerife, Silverpoint and their lawyers admitted that their “Company Participations” were indeed timeshare. This has now opened the way for many more clients who have been sold these “participations” as “investments” to now lodge claims against Silverpoint. This will result in the contracts being declared null and void plus the return of all money paid. (See previous article)

http://insidetimeshare.com/silverpoint-company-participations-is-timeshare/

Here are some key figures for the past year:

  • 3669 clients
  • 1380 live cases in various stages at court
  • 679 court hearings in 2018
  • 516 new claims presented to the Spanish Courts
  • 327 favorable sentences for clients
  • 12.3 million Euros have been awarded (2018 only) to clients by the Spanish Courts
  • 2.8 million Euros in payouts to clients
  • 728.000 Euros in bank guaranteed funds secured for clients
  • 4.5 million Euros are currently in process of being converted into bank guarantees

As the year drew to a close and the courts recessed for the Christmas break, Canarian Legal Alliance also managed to sneak in 10 more results in favour of their clients against the following:

  • Anfi                                   Court of First Instance             26,400€
  • Anfi                                   Court of First Instance             55,994€
  • Anfi                                   Court of First Instance               9,795€
  • Anfi                                   Court of First Instance             12,400€
  • Anfi                                   Court of First Instance             12,800€
  • Anfi                                   Court of First Instance             18,376€
  • Anfi                                   Court of First Instance             39,590€
  • Holiday Club                 Court of First Instance                4,500€
  • Silverpoint                     Court of First Instance                5,400€
  • Club la Costa                 Court of First Instance              29,768€

This is an incredible 214,590€ secured for these clients, with all contracts being declared null and void.

These figures speak for themselves, no other law firm in Spain has achieved anything near to this, so for those who continue to post on various forums that these are all fake, check your facts before you post. These cases can all be verified through court documents, they are in the public domain.

It is quite clear that 2019 is also going to be a record breaking year, especially now that all courts are subject to the rulings of the Supreme Court. Inside Timeshare will bring you the latest news on cases as and when they happen.

If you require any further information on this subject or would like to know if you have a legitimate and viable case, then use our contact page and Inside Timeshare will get back to you.

Other news which has just come in involves the ongoing case against Eze Groups Dominic O’Reilly and Stephanie O’Reilly at Birmingham Crown Court.

December 21st was the final day of a Newton Hearing in the case against Stephanie O’Reilly, Mr O’Reilly was not in attendance as he had earlier pleaded guilty to 27 charges of breaches of consumer legislation and aggressive selling amongst other things.

The reason for the Newton Hearing was that Miss O’Reilly had to explain why she pleaded guilty to Fraud but not as charged. The defense argued that Eze Group had employed the services of a Legal Advisor to ensure that they were compliant with UK law and that this advice was wrong which ultimately led to the mis-selling of the product.

This argument was vigorously rejected by the prosecution, who were also able to produce documentation refuting the argument. This was accepted by the court and a date of 11 January 2019 has been set for what we believe will be sentencing. We will bring you this news as and when it happens.

If you have any comments on this or any other article, use our contact page, Inside Timeshare welcomes your comments.

Friday’s Letter from America

Welcome to another Letter from America, the original article which was going to be published today has been replaced, this is due to the timeshare company reaching out to the members. As always, Inside Timeshare sends a draft copy to the timeshare company for comment, we do not always get a response, but on this occasion the company did respond. It may have been at the eleventh hour, but we congratulate the timeshare company concerned for their reaching out and we hope that they are able to resolve the matter.

As a last minute replacement we publish a revised version of The Peasant of Venice and the Queen of Versailles, by Irene Parker, originally published in November 2016.

This week has been a rather quiet one as far as the courts are concerned, there have been many cases going before the judges, but the sentences are unlikely to be announced until the New Year. Although we did get news of two sentences issued this week.

The first was from the Court of First Instance No4 in Maspalomas, Gran Canaria, the judge in this case declared the contract with Anfi null and void. The reason was the length of the contract which exceeded that allowed by Spanish Timeshare Law 42/98, which states that perpetuity contracts or contracts with no end date and exceed the 50 years maximum are illegal. The client in this case has been refunded over 61,000€ plus legal Interest.

At the High Court No4 in Tenerife, Silverpoint was on the receiving end. The contract was declared null and void as it did not include any tangible product. Again under Law 42/98, a timeshare must include specific information such as a set apartment or an exact time of year. The client in this case has been refunded over 10,000€ plus legal interest.

Once again these cases were brought on behalf of the clients by Canarian Legal Alliance, contrary to what some forums run by some very dubious characters will tell you, these are genuine cases and are a matter of public record.

     

Now for this week’s replacement article.

The Peasant of Venice and the Queen of Versailles Revisited

    Jackie Siegel, Queen of Versailles  

By Irene Parker

December 14, 2018

“The Peasant of Venice and Queen of Versailles” article was first published November 6, 2016. I wrote the article because I wanted to explain how I went from being a 30 plus year timeshare owner without a timeshare complaint, question or post, to a full time volunteer whistleblower.

In July of 2015 I experienced a pathetically aggressive timeshare sales presentation in Florida. We had previously purchased points in Virginia because the company said they were adding New York properties, only to learn it would take about $10,000 in equivalent maintenance fee dollars to stay at the same hotel, same week that could be booked online for $1,000 plus tax. When I checked December 1, 2018, it would have cost $12,000 using our timeshare points. I don’t blame the sales agent. He may not have known about the poor value. It was the response from the company to the Attorney General listing all the times we had used our points prior to that purchase that bothered me. Eventually I was offered our money back for that purchase, but could not bring myself to sign the non-disclosure agreement.       

Rosa Parks said, “I was just trying to get home from work.” In my case, we were trying to get to our new home, moving from Bowling Green, Kentucky to Venice, Florida. It was my intention to return to my first love – teaching piano lessons. That all changed after the revolting timeshare presentation we experienced in Florida.  Disgusted, I returned to our unit, turned on the television and witnessed the jaw dropping house pictured above, being built by Westgate timeshare owners Jackie and David Siegel. I could not resist.

It was a hot July summer day in Orlando when my retirement turned upside down.

We entered the hospitality area where we were invited to attend a 55 minute “information only” presentation for existing owners. “Will we be paired with a commissioned sales agent?” I asked three times. “No”, Julie replied, “Only if you have questions in the last ten minutes. I attended and I learned a lot! We have group presentations now because we had so many complaints about high pressure aggressive sales sessions.” We did not sign the form agreeing to the 55 minute meeting because the fine print said we would be robo-called if we did. We were robo-called anyway. There was no form to be signed for the three hours that followed the 55 minutes.

A Diamond Resorts member recently sent me this comment from a former Diamond concierge describing an unfair and deceptive practice:

Concierge (Former Employee) – Virginia Beach, VA 23451 – December 3, 2018

A typical day of work consisted of misleading current owners and their guests in order to persuade and entice them to attend a timeshare meeting that could last well over what was initially disclosed….The hardest part of this job was knowing I was intentionally misleading owners/guests of the length of time for their timeshare meeting, as well as not disclosing it as a timeshare meeting as instead it was mandatory we refer to it as simply an “update on their current status” or “ways you can stay here and affiliated businesses in the future”. The most enjoyable part of this job was the interaction with varying people and the connections I gained therein.

https://www.indeed.com/cmp/Diamond-Resorts-International/reviews

Our Nightmare on Timeshare Street begins:

The next day we entered the reception area to be greeted by an attractive young lady. “Hello,” Donna greeted us. “Are you a commissioned agent?” I asked.  Puzzled, she took us by the arm and escorted us to the 55 minute presentation, retrieved us immediately after, and led us to her den.

I told Donna, “My husband is 77 years old. We do not want to invest in vacation plans because we need to investigate long term care plans.” “Why, we have many in their 90’s who come and enjoy our resorts!” she cried. “But we are in the middle of building a house and have no permanent residence at this time,” I countered. Kneeling and looking up, she gazed into my eyes and confessed she was a single mother and had to resort to her Diamond points when she divorced. “I know you didn’t put all your money in that house though,” she added. I kept saying over and over, “We don’t want to travel. We like our new house.” Frustrated, the manager ended by advising me to go to the website if I want to find out what’s new. Three hours and three sales agents and managers later, we returned to our unit.

I checked my email and learned the 4,500 points we had been promised for our Port Elsewhere Ozark timeshare deposit was credited only 3,000 points. Sure enough, I learned later the 4,500 points promised could be changed at any time for any reason. It’s all in the fine print.

I then decided to take my mind off this disturbing revelation by watching television. I turned on the FOX news show Property Man show hosted by Las Vegas Attorney Bob Massi, and there she was – The Queen! The King and Queen of Westgate timeshare were building a 90,000 square foot home that defied the imagination. Jackie’s clothes closet is 5,500 square feet!

http://www.realtor.com/news/trends/queen-of-versailles-q-and-a/

Thinking about the pathetically aggressive timeshare sales presentation we were deceived into attending, and the worthless points specifically purchased to stay in New York City, I wrote to Mr. Massi at Property Man never dreaming I would earn a response. Copying the letter to Diamond customer service, they credited the correct amount promised for our Port Elsewhere week.

A few months later a FOX producer called. I was asked if I would be willing to be interviewed by Mr. Massi. The producer told me the Queen of Versailles show wasn’t even about timeshares. It was about their house, but FOX had been flooded with timeshare complaints. She said I was the only viewer they asked to interview because I was the only respondent who said I wanted to talk about the positives in addition to the negatives of timeshare. I told her I was sorry, but I had just accepted a position as interim music director for a large church and could not participate, but I offered to research timeshare to help them with their talking points.

I started digging. The deeper I dug, the more alarmed I became. Wyndham, Westgate, Bluegreen and Diamond seemed to have the most complaints, with Disney, Hilton and Marriott far fewer. I submitted my research to FOX and returned to the choir. Six months later, after arranging a flight to Phoenix to stay at  a Diamond resort in Sedona, I received a call from the FOX producer, asking if we would agree to be interviewed by Mr. Massi in Phoenix as they had interviews scheduled that weekend. Some things are meant to happen.

The FOX producer told me David Cortese of Magical Realty had also been interviewed by Mr. Massi about timeshare resales. David is a member of the Licensed Timeshare Resale Broker Association (LTRBA). After viewing David’s segment, I contacted him to see if he would sell our Diamond points. I was told their company would not accept a listing to sell Diamond points. I surveyed all 64 LTRBA members and 22 responded also saying they felt Diamond points were worthless on the secondary market. “We feel Diamond has placed too many restrictions on the use of secondary points to be of any value to a buyer,” they sadly explained.

One of the LTRBA members asked if I would speak with a Hispanic family. Since this first October 2016 complaint, the calls and emails have not stopped. I have heard from 646 timeshare members.

Timeshare members want straight answers but straight answers are in short supply at some timeshare customer service desks. Callers or emailers explain how a sales agent lied to them, but when they contacted the timeshare company they were told, “You signed a contract.” Some described how the rescission period was dodged. Some things, like over promised availability, can’t be determined by reading the contract. I feel I was deceived by reading the contract which stated, “You can sell your points but we will not assist you.” They left out the part about no buyers.

From the October 2016 article describing what happened to the Hispanic family:

Maintenance fees increased to the point where they could no longer afford to own their points. The family soon found that they had to charge maintenance fees to their credit card in order to pay them. The family had already taken out a $33,000 home equity loan from their credit union to reduce the high loan interest rate, typically 14% to 18%.

In August 2015, when they complained about maintenance fees, they said that a sales agent tried to convince them to purchase another 10,000 points in order to achieve Platinum level. He said that by being Platinum, it would allow the couple to pay their maintenance fees with their points, as only Platinum members are allowed to use their points to pay maintenance fees. Then and now Platinum members can pay maintenance fees at $.04 per point, so if all 50,000 points were tendered, it would pay $2,000 towards a 2018 $8,631 maintenance fee bill.

If the family had agreed to the additional 10,000 points, they would have gone further into debt with little recourse. Based on hundreds of reported responses, if they had purchased the points, they would have been told, “You signed a contract” or “We are not responsible for what our sales agents say.” They have a daughter who just graduated from high school and has started college.

I spoke to the family not long ago. They relinquished their $60,000 worth of points that they had accumulated. They are still paying off the home equity loan.

Contact a member of the Licensed Timeshare Resale Broker Association to find out if your timeshare has resale value.

Property Man was preempted due to the 2016 election coverage, so our segment aired April of 2017. The Florida DBPR timeshare division only acted on 110 out of 2,360 timeshare complaints from April 2012 to April 2014, so ignore Pam Bondi.  Bob Massi and his advice on timeshare resales:

https://www.facebook.com/RealBobMassi/videos/1041694629230338/

From FOX I stumbled onto Jim Cramer of Mad Money’s investment news service TheStreet, where remarkable editors, possessing the patience of Job, provided a crash course in editing.

https://www.thestreet.com/author/1684637/irene-parker/all.html

A member who submitted an article to Inside Timeshare introduced me to Whistleblowers of America https://whistleblowersofamerica.org/. Accepting an invitation to attend a Whistleblowers Summit in Washington DC this year, I was introduced to OpEd News:

https://www.opednews.com/articles/Witness-to-Las-Vegas-Octo-by-Irene-Parker-America-181030-359.html

And of course, there’s Charles Thomas at Inside Timeshare in Spain and Wayne Robinson in Malaysia and Wayne’s book.  I was honored to edit and write the Forward. Everything About Timeshare, Before. During and After the Sale

https://www.barnesandnoble.com/w/everything-about-timeshares-wayne-c-robinson/1129749757?ean=2940161600962

So all in all, I’m getting great value from my timeshare points measured in the people I’ve met, readers who read my articles, and the gratitude from members who are grateful for straight answers. We especially appreciate our Facebook administrators and our growing team of members helping other members. I do believe we are a disruptor and hope our efforts will benefit sales agents who sell the product honestly, as well as forestalling new buyers and existing members from making a decision that has financially devastated more than a few families. When sold honestly, timeshare provides years of fun for friends and family.

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you Irene for getting this article out to us so quickly, it is difficult to replace an article at such short notice, but at least the timeshare company did respond and for that Inside Timeshare was happy to replace the original one.

That’s it for this week, join us again next week our last one before Christmas.

To all our readers have a great weekend and remember to do your homework before engaging with any company that contacts you or that you have found on the internet.

Friday’s Letter from America

Welcome to our Friday’s Letter from America, this week Wayne Robinson explains why it is often very difficult to cancel after purchasing a timeshare, but first a quick look at Europe.

Earlier this week it came to our attention that one of the largest tour operators TUI had been advertising weeks at Anfi Emerald for 1000€ p.p.p week, this was for a 1 bed deluxe apartment and included flights, transfers and breakfast. Now when we consider that members have paid thousands for their floating weeks along with the annual maintenance fees, yet we constantly hear from them that there is no availability, it makes you wonder what is going on?

This is not just a problem with Anfi, we have heard from many timeshare members that they are constantly having trouble booking, yet they see their own resorts being advertised on the various booking websites. Is it fair that these people pay thousands for what they are told is exclusive to members and find they can in many cases book cheaper than their maintenance fees, without having to pay the initial purchase extortionate price.

In another twist, mindtimeshare which formerly under the now discredited Alberto Garcia, was funded by the RDO (Resorts Development Organisation), has just published what can only be described as a rebuke of their former paymasters.

It revolves around the liquidation of Enduria Travel, also known as the Travel Shop and was based in Gran Canaria, they were also affiliate members of the RDO. In their article, mindtimeshare explained that they actually expressed concerns to the RDO about this company, but the RDO still accepted their membership. All we can say is how things have changed.

Today is what everyone is calling Black Friday, but at the start of the week it was for Anfi BLACK MONDAY!

Canarian Legal Alliance received on that day alone 12, yes 12 sentences against Anfi in favour of their clients, with over 900,000€ awarded, plus all contracts were declared null and void. They also received another sentence from the High Court in Tenerife against Silverpoint. In all this year CLA have secured over 11 million euros in awarded claims.

Now for this weeks article.

5 Strategies Timeshare Resorts Use To Prevent Cancellations

By Wayne Robinson

Black Friday November 23, 2018

Today is Black Friday in America, celebrated by standing in long lines at shopping malls to be followed by Cyber Monday, when stay at home shoppers shop the internet. I hope you will add my book Everything About Timeshares: Before, During and After the Sale onto your Cyber Monday shopping list.

Available through Barnes and Noble:

https://www.barnesandnoble.com/w/everything-about-timeshares-wayne-c-robinson/1129749757?ean=2940161600962

Many timeshare buyers do not even think about the contract they signed until after the rescission period has passed. Given that buyers are often not allowed onto the booking site until after the rescission period, the product the consumer bought is for the most part bought sight unseen and untried. Anything we can do shed light on these important rescission days could save the timeshare buyer untold grief and money, should they come to regret their purchase.

The Rescission Period     

The rescission period is the time allotted by local governments for consumers to review their purchase and legally cancel their timeshare. The length of time varies by state, but is typically three to ten days. In Aruba, and in some American states, there is no rescission period.

If the timeshare buyer cancels their purchase during the rescission period, the government requires timeshare companies to give purchasers a full refund of any monies they have received. There is nothing more frustrating for a sales team than to spend 6-8 hours making a sale that later cancels. Sales agents and their managers will do everything they can to prevent new owners from cancelling their timeshare purchase during the rescission period.

Here are 5 strategies that many timeshare resorts use to prevent new timeshare owners from cancelling during the rescission period.

  1.      Sales agents will avoid the rescission clause that is included in the documents.

Although the rescission clause is clearly written in the documents, many timeshare agents or Legal Verification Officers (VLO) will avoid mentioning this very important item. Many reps will discuss other matters to avoid the clause that outlines the rescission.

The resort’s management will not allow sales reps to mention the rescission period during the sale presentation.  Mentioning it could lead to disciplinary action or being fired.

This is how many timeshare sales reps avoid having their sales cancelled.

Most timeshare buyers will not review the paperwork during the rescission period. After a 6-8 hour grueling sales presentation, the last thing the new owner wants to do is review all the legal jargon included in the documents.  If the rescission period is not mentioned by the staff, too often the buyer is not even aware of it. In some states trial products have no rescission period.

Each state rescission period is listed in this chart provided by ARDA, the American Resort Development Association.  There have been more than a few complaints from timeshare members who were denied release, despite being only a half day late. Instructions on how to rescind are buried deep within the contract, and sometimes instructions are vague.

http://arda.org/uploadedFiles/ARDA/Government_Affairs/Government_Affairs_Call_Out_Boxes/RescissionPeriodsDec2012.pdf

  1.      They will follow-up to overcome Buyer’s Remorse

Photo by Samantha Hurley by Burst

It is important for the timeshare sales staff to keep in touch with their new clients shortly after the sale to prevent them from cancelling.  Most clients will have buyer’s remorse and reconsider their purchase after the buyer has taken the time to think about their purchase, research the company that they just spent $21,000 on (on average), to ensure that they did the right thing. For this reason, sales reps need to be available just in case the client wants to cancel. After all, it might have been a very expensive and unexpected purchase that was sold on emotion

According to a Redweek article, Dr. Amy Gregory, assistant professor at the University of Florida has been studying the impact of buyer regret and remorse and rescission decisions. She says that most timeshare buyers regret their decisions.

A whopping 85 percent of all buyers regret their purchase (for money, fear, confusion, intimidation, distrust and other reasons).”

Dr. Gregory’s findings are as follows:

  • The average rescission rate is 15% – essentially identical to the daily average percentage of people who buy a timeshare following a sales presentation.
  • 85% of all buyers regret their purchase, citing reasons including money, fear, confusion, intimidation, and distrust.
  • 41% of buyers never thought they would regret their purchase but ended up doing so; 30% were neutral prior to buying, but came to regret their decision.
  • 95% of all buyers go back to their resort and sales team for more information after the sale, usually within one to three days, seeking more information about maintenance fees, resale options, and pricing alternatives.

Some sales reps will treat their new owners out for a nice dinner to help “bond the relationship.”  This tactic works well as the new owners are getting to know the sales agent on a personal basis rather than as a sales person.  After all, the salesperson used their own money and time to take the new owners out for dinner. Why would they consider canceling with “their new friend?”

  1.      They will follow-up by phone.

If the new timeshare owners are on vacation some resorts will require the sale staff that made the sale to meet with the new clients the next day, or call them within 24 hours. This is to overcome buyer’s remorse, and to answer any questions or provide clarifications.  Often, the new owners forget the verbiage made during the presentation.

  1.      The resort may reduce the sales price.

If the new timeshare owners decide that they want to cancel, the resort can offer to reduce the price. Often this “second round” rendezvous could require another 2-3 hours of negotiations. Many take the bait and purchase at the lower price, or some keep the original agreement.  Unfortunately, the timeshare company may not change the original rescission period, and the new owners now have less time to reconsider their purchase.

Consumers need to be aware that the “today only” price will always be available the next day, week, month or maybe even years later.

  1.      The resort may offer more gifts.

If the resort offered gifts, there are hundreds or thousands of additional monies that was left on the table because the sale did not exceed their “bottom line” price.

If the new owners want to cancel, the management can offer more gifts to “sweeten the deal.”  These free gifts might include free accommodations, free meals, free activities, free or discounted RCI weeks or other options.

New owners must be aware of the new terms that might have entered the contract.  These terms could include paying rack rates for the free accommodations or paying the highest advertised prices for any gifts just in case they decide to cancel the deal. This action could add into the thousands of dollars if they decide to cancel.

Timeshare resorts will use every strategy that they can, including embarrassment and condescendence to keep the sale, but it’s the consumer’s final decision to end the relationship or move forward. Therefore, it is imperative to read all the documents thoroughly before signing, or present it to an attorney during the rescission period.

Wayne C. Robinson is the author of Everything About Timeshares:  Before, During and After The Sale. He is a former timeshare executive who is advocating with consumers to assist them their timeshares problems, and to help consumers better understand the timeshare business from an “insider’s” perspective.

For more information, visit his website at www.everythingabouttimeshares.com

Related article: About Wayne Robinson

http://insidetimeshare.com/fridays-letter-from-america-21/

Self-help groups we feel are not industry influenced:

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you Wayne for your contribution this week, it is certainly an eye opener.

If you have any questions or comments about this or any other article, then Inside Timeshare would love to hear from you. We hope that you have a great weekend and join us again next week.