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Friday’s Letter from America

Welcome to this week’s edition of Letter from America, following on from our previous articles on the timeshare bills put forward by Florida and Nevada, Attorney Mike Finn submits his thoughts on this subject with the introduction by Inside Timeshares very own Irene Parker.

But first, a reminder that today is the first day of the Platinum Protest in Orlando, even if you can’t make it, please enter your support for them on the Diamond Resorts Owners Advocacy page on Facebook. We hope to bring you a report from them next week.

Lawyers and Their Important Role in Consumer Protection

By Attorney Mike Finn

Why You Should Sign our Petition asking a lawmaker to sponsor a Bill in 2021 requiring that timeshare buyers be offered 24 hours to review a perpetual timeshare contract before signing.

By Jordan Raskin

May 17, 2019

Our petition preparing to launch:  

https://www.care2.com/?fbclid=IwAR3w3tungUxAWYjY3fSro_WJBRUKB9pe99LiJ_9ur8T5WZOyC9wHsyswqZc

Provide the timeshare consumer 24 hours to review, at least think about, their decision to sign a lifelong perpetual contract, with no secondary market, often without even having tried the product, and often not allowed access to the booking site until after the rescission period.

This offer could be waived if the buyer chooses, either due to the certainty that the buyer wants the product, or the need to sign because the vacation is ending soon.

This offer should not be buried in the electronic fine print. It should be a separate disclosure presented and signed before the sales presentation. The price per point offer would be required to be maintained for 24 hours.

What’s so unfair about that?  

Introduction by Irene Parker

Never mind a lawyer! We’d settle for our mom, dad, son, or daughter!

Both the Florida and Nevada Bills referenced in Mike Finn’s article below, asking that timeshare exit providers provide buyers 24 hours to review their contract before signing, died in committee: Florida HB 2639 and Nevada SB 348 bill are dead  

SB 1430 Companion Bill to Florida HB 2639 Vacation and Timeshare Plans

http://www.flsenate.gov/Session/Bill/2019/01430

SENATE – Died in Innovation, Industry, and Technology

How do you separate the wheat from the chaff? There are legitimate lawyers and lawyers with questionable business practices. I have contacted a number of exit company providers to inquire about the volume of calls they received. Two of the major exit companies say they receive between 3,000 to 3,500 calls each month from timeshare buyers desperately seeking release from timeshares they were told would be easy to sell. Each company only accepts less than 200 callers as clients, as the member must meet specific criteria of unfair and deceptive sales practices.  

Before we begin with Mike Finn’s article,  

If you are going to be in the Orlando area this weekend May 17-19 Friday – Saturday, please support our Platinum Protestors. Locations and dates provided: https://insidetimeshare.com/fridays-letter-from-america-49/

Now onto:

“Why Kill All the Lawyers?”

By Attorney Mike Finn

“Add to that advantage the fact that the purchaser purchases on the same day they’ve been introduced to the product with no ability to consult with or review the multipage purchase contract with their own legal representative and you can begin to understand the owner/purchaser’s situation years later when they ultimately seek to terminate their arguably lifelong contractual obligations contained within their timeshare purchase contract.”

It’s hard to say anything about lawyers that haven’t already been said. They are both revered and reviled as staunch proponents and champions of justice or as avaricious opportunists. The profession is comprised of all types, from the most learned jurists to the slightly seamier side of humanity. We lawyers share the same spectrum of positive human qualities and negative frailties as the rest of our species.

The import of this article is less related to the issues of lawyers individually, but rather to the role of the attorney as consumer advocate within the legal system. I speak to the issue of what removing lawyers, or significantly diminishing their role to effectively represent their consumer clients, does to strengthen or weaken consumer protection in general, as a matter of national policy.

Currently, there is pending in at least two states with a significant timeshare presence, Nevada and Florida, House and Senate Bills sponsored by ARDA, the timeshare industry’s trade association. Ostensibly, per the statements made by ARDA’s political arm, ARDA-ROC (American Resort Development Assoc.-Resort Owners Coalition), the primary intent of these Bills is to enhance consumer protection. However, to some of us on the consumer side of the equation, we suspect there may be a darker, more industry serving purpose. These Bills seek to regulate two separate and quite distinct groups, lawyers and timeshare exit companies.

There can be no argument that some regulation is warranted, specifically in regard to the unlicensed and unregulated timeshare exit companies; however, this ‘shotgun style’ approach of lumping-in lawyers with this proposed legislation will if passed, create some chilling and decidedly consumer-unfriendly impacts on the timeshare consumer/owner.

To further distinguish these totally disparate entities, lawyers are already both licensed and extensively regulated by their respective State Bar Associations. Additionally, as lawyers, (and unlike exit companies) we are specifically trained and educated to handle matters involving contract disputes, as well as debtor/creditor rights issues and other relevant matters that may well arise in the course of a controversy. Without getting too far into the weeds, I think it’s fair to state that the pending State Bills are clearly designed to severely limit and restrict the involvement of both timeshare exit companies and, from my perspective, more importantly, lawyers, in terms of their ability to provide services to timeshare owners seeking third-party assistance in terminating or modifying their timeshare purchase contracts.

To summarize the owners’ plight, many owners didn’t realize that their purchase contracts did not include a way to terminate their contract when they could no longer utilize their timeshares because of life changes, like aging, job loss, divorce, death of a spouse, or other major life changing events. This issue wouldn’t be so troublesome if it were not for the fact that there exists little to no resale value or market for these timeshare interests, trapping owners who cannot continue to derive any benefit from their ownership, but remain legally bound by their purchase contract, subject to annual rising maintenance fees and other contractual liabilities.

The ‘timeshare exit’ industry sprang into existence to fill the market void created when the timeshare developers themselves were unwilling to offer owners relief from essentially ‘lifelong and perhaps beyond’ contracts. This exit industry includes lawyers who focus on consumer timeshare owner issues as part and parcel of their law practices, and exit companies, non-lawyers who claim industry knowledge and apparent ability to act on behalf of timeshare owners in their negotiations with timeshare developers or property owner associations.

The focus of this article will remain on the lawyer and not the exit company. It’s important to distinguish between these two different kinds of organizations and avoid comparing the two. They are completely and totally unlike and should not be combined or grouped together in these Bills. It’s impossible to make any logical form of comparison beyond stating that each seek to represent the consumer timeshare/owner in dealing with the respective owner’s timeshare situation. Combining the two and treating them as equals in proposed legislation is grossly inaccurate and inappropriate. It only adds to consumer confusion!

Attorneys have undergone extensive education and training and have prepared for and passed a state mandated Bar examination in order to prepare themselves for dealing with contested and controversial legal issues. Our legal system is by definition adversarial in nature. Justice involves a process by which parties on each side of a controversy present, through their selected legal representative, their respective position to an impartial determiner of the facts in order to produce a just outcome. Indeed, our very symbol of justice is a robed and blindfolded woman holding a scale aloft in her hand.

Each side, through its appointed legal representative, presents its best case to the referee, hearing officer, or judge and jury. At the end of the contest, the winning side, through presentation of evidence and persuasion, tipped the scales in its favor. This is our legal system, or at least the portion of it that decides controversies. Add to our justice system the requirement that each side starts off with a level playing field. Neither side has gained an unfair advantage prior to the contest commencement. As a condition of fundamental fairness, may the side with the most compelling case for justice win!

What can skewer the ‘level playing field’ aspect of the justice model, is if one of the players gets to the game before the other side, gaining a one-sided advantage. Arguably, that’s exactly what the Timeshare Developer has been able to do. Since the state requires the Developer to register and apply for a license to market timeshares within that particular state, the Developer has prepared its purchase contracts and other disclosure documentation and submitted them to the appropriate state agency well in advance of its initial sale. It’s probably fair to suggest that these purchase agreements were prepared by an able team of lawyers with the Developer’s best interests in mind. In fact, the only remaining task for the Developer’s sales team at the time of consumer purchase is to fill in the blanks on the preprinted purchase contract with the purchaser’s name and other pertinent information.

Add to that advantage the fact that the purchaser purchases on the same day they’ve been introduced to the product with no ability to consult with or review the multipage purchase contract with their own legal representative and you can begin to understand the owner/purchaser’s situation years later when they ultimately seek to terminate their arguably lifelong contractual obligations contained within their timeshare purchase contract.

Now that you can envision, from the consumer’s perspective, the un-level playing field that the consumer finds themselves on at termination time, and add to that the circumstances that would exist if the Timeshare Developers are successful in passing these new laws. These Bills, if passed, would further restrict the consumers’/owners’/members’ ability to seek justice within the legal system, if the lawyers’ ability to represent the consumer is constrained and restricted.

From where I sit, as lawyer representing timeshare owner/consumers, it appears that the timeshare industry is dissatisfied with its already existing unfair advantage over their consumer and still seeks to tilt the field further in their favor. My advice to them (not that I anticipate them appreciating any of it) is to show a kinder, gentler aspect to your loyal owners by either recognizing and permitting an easier contract termination, or, at minimum, not further attempting to restrict their right to effective legal representation as they seek relief from their onerous timeshare purchase contracts.

Respectfully submitted,

Michael D. Finn, Esq.

Thank you Mike and Irene for this week’s edition of Letter from America, these articles are certainly helping many timeshare owners see exactly what is going on in the murky world of timeshare.

If you have any views or comments on any article published then use our contact page we would love to hear from you. Do you have a story to tell, be it a positive one or a “Nightmare on Timeshare Street”, which you would like to share, then contact us and we will help you to submit an article.

Well, that is all for this week, remember the Platinum Protest and show your support, have a great weekend and join us again next week.

The Tuesday Slot

Welcome to The Tuesday Slot, this week Irene Parker asks the question Wait! What Timeshare Regulations? But first, we have an update on the last 2 weeks of court cases in Spain, these figures came in late Friday afternoon, just a little too late to include in Friday’s Letter from America.

In total, Canarian Legal Alliance has received 38 sentences by various courts in Spain, these have been against 3 of the major players in European timeshare and are broken down as follows.

In one of the High Court sentences against Anfi, they were also ordered to repay the client the in-house finance including interest, this may just be good news for others who purchased their timeshare using in-house finance. It certainly sets a precedent.

The total amount which will be returned to the clients is an incredible 1,310,533.00 €, plus in most of the cases the return of legal fees and legal interest. All contracts were also declared null and void leaving them all timeshare free.

At least in Spain, there are regulations that protect consumers, so now on with our Tuesday article with Irene.

Women Who Money

Are Timeshares Worth the Money in the Long Run?

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

Wait! What Timeshare Regulations?

By Irene Parker

April 30, 2019

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

House, Senate and Assembly Bills are flying across the country. The timeshare PAC ARDA ROC was successful in extracting consumer protection measures out of Arizona HB 2639, as reported by The Courier Daily.

“They’ve got a lobbying presence here and around the country,” added Amanda Rusing who lobbies for the office, “It was very disappointing to have to remove all of the stronger, pro-consumer provisions.”

https://www.dcourier.com/news/2019/apr/16/opt-out-provisions-timeshare-bill-no-longer-table/

Timeshare members “voluntarily” contribute approximately $5 million annually to ARDA ROC via maintenance fee invoices. ROC stands for Resort Owners Coalition. Why would any organization oppose offering a buyer 24 hours before signing a perpetual contract with no secondary market? Buyers are told that they have to buy the same day.

We are asking legislation be proposed that would allow the timeshare member 24 hours to review a contract before signing. We understand a member may not want 24 hours to review, so this offer could be waived. This offer should not be buried in the tap, tap, tap, electronic fine print. Members often report being held under duress for up to eight hours by a tag team of agents. Some sales centers take your driver’s license and credit card and won’t give them back.  

ARDA ROC introduced legislation in Nevada and Florida that would require those contracting with timeshare exit service providers be given 24 hours to review a timeshare exit service provider contract. This was proposed because they care about their members experiencing deceptive sales practices? Give me a break.

We would think it silly if a bill was proposed requiring those who seek to buy a car be allowed 24 hours before signing a contract. Typically when buying a car, you shop, and a tag team of agents doesn’t gang up on you for hours.

A synopsis of recent Florida, Arizona and Nevada legislation:

Timeshares are regulated by states. Since timeshare buyers typically buy a timeshare in a state other than their state of residence, lawmakers have little incentive to react to non-constituents. Lawmakers need to listen to those who bought a timeshare in their state, not just those who reside in their state.

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

From Women Who Money   

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

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

Lisa Ann Schreier

Timeshare expert and author of Timeshare Vacations for Dummies

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

http://thetimesharecrusader.blogspot.com/

My husband and I used and enjoyed our timeshare for 25 years with no complaints, questions or Facebook posts. The points-based product does offer greater flexibility. We’re not saying timeshares aren’t good for many, and we know there are many honest sales agents, but I am convinced after hearing from over 800 timeshare members, current and former sales agents, managers and even an executive or two, “pitching heat” is on the upswing.

Timeshare buyers should record their timeshare sales sessions in one-party states where legal. Florida is a two-party state, so you cannot legally record without the other person aware. How is a victim supposed to obtain proof? All our readers’ Florida and Nevada timeshare complaints sent to the Nevada Real Estate Division and Florida Department of Business & Professional Regulation were dismissed with “You have no proof.”  I would recommend not buying a timeshare in a two-party state.

One of our Supporters, Sheila Brust, has her “Pencil Pitch” denoting the following figures, with an arrow and “save” written alongside:

  • $8,631
  • -8,631
  • 0

According to Sheilah, the three-page pencil pitch describes how she would be able to cover all her maintenance fees through point usage. A second and third buyer bought from the same sales agent. The Florida DBPR reviewer told Sheilah that she did not understand the program either until she spoke with the company’s attorney. What chance does the average consumer have if a Florida timeshare reviewer, who has reviewed hundreds, if not thousands of timeshare contracts, did not understand the program until she spoke with the company’s attorney?

As far as proof, 83 Platinum members, who don’t know each other, reported similar to identical complaints, often against repeat offender sales agents. I’m told that constitutes proof as it is a good faith investigation and a reasonable conclusion. We have prepared a 130-page summary which is available upon request if a lawmaker or regulator is interested. We can hope.       

We are working on a petition. If you would like to become more involved with our efforts, contact Inside Timeshare. Of the 805 timeshare members who have contacted us, 103 are veterans and active duty services members.

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you, Irene, and also Lisa Ann Schreier for your contribution, if you have any comments or views on any article published, please use our contact page, we would love to hear from you.

If you have been contacted by any company with regards to resale, relinquishment or a claim and you are unsure if they are genuine, again use our contact page and let us know. We will point you in the right direction. Remember, doing your homework will save you in the end from losing your money.

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.

Friday’s Letter from America

Welcome to this weeks Letter from America, but before we start the article, a quick update on A K Advisory Limited. As we have reported this is just one company contacting Eze Group clients, saying they can get their money back for a £725 upfront fee, one of our readers has informed us of the “ESCROW” account and the name of the recipient that it should be paid into, these are the details.

The BACS  account is a Lloyds TSB account, Number 37871668, Sort Code 77-13-11, Name of account holder Mr Connor Baker.

This company along with all the others is a fraud, do not pay them anything, you will not get your money back.

Now for todays Letter from America.

It is unlikely Arizona Senator Michelle Ugenti-Rita, R-Scottsdale, quoted below, will bother to read the reports from some of the 80 Platinum members who have been financially devastated because they believed in timeshare programs they say did not exist. Today’s Inside Timeshare describes some of the members financially devastated. We hope timeshare members will recognize how ARDA ROC lobbyists spent some of members’ $5 million in annual $3 to $10 opt-out “donations” and recognize that this organization is not the voice of 1.8 million timeshare members. The comments below from lobbyists and pro-industry lawmakers are appalling.

At least the Arizona Attorney General’s Office and Howard Fischer, a journalist for the Daily Courier, understand. What chance does the consumer have if ARDA and the developers will not even heed the advice of an Attorney General. As we have previously explained, there are many ways to dodge a rescission period. Tuesday’s Secret Shopper explained how easy it is to bait and switch the unsuspecting. Just how out of touch can those in authority be. Imagine how you would react if you learned minutes after the rescission period that you experienced fraud, reading,

“the timeshare industry’s top lobbyist told 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.

From The Daily Courier

Lobbied by the industry, state lawmakers are not going to help those who bought timeshares get out from under what is often a lifetime obligation.

https://www.dcourier.com/news/2019/apr/16/opt-out-provisions-timeshare-bill-no-longer-table/?fbclid=IwAR2cs4PdvFFqQVlvUd_I5-DxOSOUl5U59w_KVEYs1jchViitMMLYzz6PRx0

“We’re disappointed that the timeshare industry killed a lot of the pro-consumer parts of this bill,” said Katie Connor, spokeswoman for the Attorney General’s Office.

“They’ve got a lobbying presence here and around the country,” added Amanda Rusing who lobbies for the office. “It was very disappointing to have to remove all of the stronger, pro-consumer provisions.”

Sen. Michelle Ugenti-Rita, R-Scottsdale, who chairs the Senate Commerce Committee, said the legislation, which now awaits a roll-call vote, does include some additional requirements for what needs to be disclosed to prospective buyers.

“At some point, these are adults that come to a meeting of the minds and want to sign a contract,” Ugenti-Rita said, saying that buyers have some responsibility to know exactly what they are signing.

While the industry claims that “points” are no different than a deed, simply with more flexibility, consumers have noted that points appear to have no intrinsic value because they can’t be resold, making memberships that were purchased for hundreds of thousands of dollars essentially worthless on the resale market.

“Their value comes from using it,” the timeshare industry’s top lobbyist told 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.

According to ARDA lobbyist Don Isaacson:

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

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

Anyway, Isaacson argued that too much is being made of the issue.

Timeshare Insider

Save the Date! Our next Platinum 80 Protest is May 17 – 20

Two Locations:

Friday, May 17 near the Florida DBPR Office

Saturday and Sunday, May 18 and 19 near Disney World

You don’t need to be Platinum to Join Us!

Protesting Unfair and Deceptive Timeshare Sales Practices

By Platinum Protest Organizers

Friday, April 19, 2019

When we protested in March in Las Vegas, where we represented 70 Diamond Resorts Platinum members alleging that we had been intentionally targeted for our loyalty and deliberately up-sold into insolvency. Since then we have grown to 80 Platinum members, many similar if not identical complaints. We believed in programs to pay maintenance fees that do not exist. Others say they were told if they purchased additional points, they would be able to sell points. According to Diamond, we are all confused. We are all educated professionals.

As reported at a legislative workshop in Tallahassee, Florida March 12,

Victoria Butler, from the Florida Attorney General’s Department of Consumer Protection, reported a figure of 1,500 to 1,600 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 engaged only 42 complaints, the majority concerning resale. This fits with our members reporting that all timeshare complaints they submitted, DBPR responded, “Verbal representations are difficult to prove.”  

Based on these numbers, a sales agent can say anything to sell points. At least let the consumer know they should not believe a word a sales agent says. Reading the contract doesn’t always help. Members are often not allowed onto a booking site until after the rescission period has passed.   

The status of 80 Platinum member complaints:

  • 26 Resolved their Diamond dispute so won’t be protesting. Resolved doesn’t mean people didn’t lose a lot of money,
  • 21 Unresolved,
  • 9 Foreclosed with one senior Navy veteran filing for bankruptcy,
  • 18 Unknown outcome because we don’t call to find out what happened,
  • 4 Relinquished which meant they lost everything.
  • 2 In litigation.

Diamond points sell for around $4 a point. Platinum members own a minimum of 50,000 points. In 2018 maintenance fees had increased to $8,631. Out of the 80 Platinum complaints, 42 members report that they were told of maintenance fees relief programs that they later learned did not exist and 16 specifically say they were told they could pay maintenance fees at $.30 per point.

Only Platinum loyalty members can pay maintenance fees at $.04 per points so if a member turned in 50,000 points, redeemed at $.04 per point, it would mean they would be credited $2,000 towards a maintenance fee bill of $8,631 with no points left to travel. Members report that when they file a complaint, the hospitality agent responds describing a legitimate 30/30 program that offers travel discounts. This program has nothing to do with paying maintenance fees at $.30 per point.  

Inside Timeshare told us they do not link prior articles if the complaint has been resolved, but given Platinum complaints are increasing, they said they would allow us to link articles published by 14 of the 80 Platinum members even though some have resolved. They resolved, but not without endless rebuttals and regulatory filings. When you read our 130-page summary report – reports from educated professions who don’t know each other, all reporting similar to identical complaints, it’s unlikely a reader would conclude all our reports are falsehoods.  

We have added the Lusk family to our list of 81, even though they did not submit their complaint through Inside Timeshare. Their experience was published in USA Today. As reported by Rebekah L Sander for the Arizona Republic, Frank and Betty Lusk are retired Christian missionaries, nearly 90 years old. Annual maintenance fees are $19,000.

He told the Lusks buying another $150,000 timeshare with 10 per cent down was “life insurance” that would resolve any debts they had with the resort when they died, a promise they repeatedly questioned, Betty said. The timeshare contract they received is not life insurance and does not pay off debts upon death.

https://amp.usatoday.com/amp/3310015002

Following are 14 articles submitted by our Platinum 80 members:

Article 1 published April 12, 2019 Platinum member #80

The timeshare member is single, over 70 years old. From 2015 to 2018 the member was ping-ponged back and forth seven timeshare times told, “You should not have bought Hawaii points,” and then “You should not have bought US Mainland points,” until up-sold into insolvency. The member has lost their entire retirement savings that were worth almost $400,000. The member also suffered tax consequences due to liquidating a retirement asset.

Since we published the article, the family learned she was only switched back and forth five times over six transactions. These histories can be a nightmare to piece together, worse than your worst tax return.

Article 2 was published by Consumer Affairs March 29, 2019 Platinum #57/80

The FBI website is tricky. One of our three FBI helpers helped Diane through the intricacies of the FBI filing website IC3.gov. It starts off confusing asking if you want to report Terrorism, Missing child or Internet Crime.

Diane’s father had asked Diamond to take back a fully paid timeshare when he was 85 years old. They said no. He was sold five additional contracts between the ages of 85 to 88.

Diamond Resorts still can’t explain why it sold $250,000 worth of timeshare points to an 88-year-old

In late December, Diane Burkhart sent a complaint to the FBI describing how her 88-year-old father agreed to purchase $250,000 worth of timeshare points over the course of 18 months, from 2016 until late 2017. In 2018, he was diagnosed with dementia. He is now 89 and living in a nursing home, Burkhart says. His wife passed away last May.

https://www.consumeraffairs.com/news/diamond-resorts-still-cant-explain-why-it-sold-250000-worth-of-timeshare-points-to-an-88-year-old-032919.html

Article 3 is by Platinum Protestor Patty Boyak Valentine’s Day 2019 #28/80

Patty’s Las Vegas sales agent was recorded defrauding a disabled veteran in 2017. That family was interviewed January 2018, at which time they provided to Inside Timeshare a copy of the highly disturbing recording. An interview Inside Timeshare conducted with the couple was sent to Diamond’s attorney. The dispute was swiftly resolved, but instead of firing this agent, Patty met him October 2018. He introduced himself as a Platinum Specialist. Patty purchased her last contract from him. Just recently Inside Timeshare has heard from a third member sold by the same agent, the husband was diagnosed with Alzheimer’s and English is his wife’s second language. The family is financially devastated.

The very first complaint Inside Timeshare received in 2016 was about being told buying additional points would relive maintenance fees.  

At their last stay at a Diamond Resorts International resort in August 2015, Sylvia Saldana said that a sales agent tried to convince them to purchase another 10,000 points in order to achieve platinum level, which is 50,000 points (Remember they owned 30,000 points). The sales agent explained 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, Sylvia Saldana said.  https://insidetimeshare.com/fridays-letter-from-america-on-thursday/

Patty’s Miracle Mile Protest in March article (pictured above)

Article 4 was submitted by a 100% disabled Army veteran. He was issued a 1099C for $170,000. His is one of now 21 complaints directed against the same sales agent. At least following the advice we provided to his CPA, he successfully disputed the phantom income.

This former Diamond member says DRI sales agent Rick Casper, working out of Polo Towers in Las Vegas, told him to buy more Diamond vacation points to eliminate maintenance fees. He and his wife wanted to talk to someone at DRI because they were struggling to pay maintenance fees on the 50,000 DRI points they already owned. This member is a 100% disabled Vietnam veteran, having been exposed to Agent Orange. The former member did not contact us to complain about Diamond Resorts. He wanted to know if there was anything that could be done about 1099. I did ask why he purchased additional timeshare points from Rick Casper, given Inside Timeshare has received 11 identical complaints about the same Las Vegas sales agent over an 18 month period.   

In 2016 we went to Las Vegas and stayed at Diamond’s Cancun resort and met with Rick Casper. Mr Casper said if we upgraded, we would be able to cover maintenance fees. However, maintenance fees increased after the upgrade to $16,000 a year. After five hours, my blood sugar was at 400. I was recovering from congestive heart failure. Rick Casper said it would cost us $198,000, $2500 a month in payments for the next 10 years but after ten years we would have no maintenance fees and no loan payment. Rick Casper said, “Then the little people will be paying for your vacation.” He said it would take a year to a year and a half to set up but he would personally handle it. He said since we were only paying $3, he had a guy that could sell points for much more than that and the proceeds would pay for the maintenance fees. I ended up paying a company in Branson MO $1500 to get out of this, but now the IRS has issued us a 1099 which has to be claimed as income. It’s for around $170,000. I’m now 71 years old. I would have been better off foreclosing.

Article 5 is by Gad Liebmann and his wife Noreen. They have been protesting outside Daytona for a year. They have had to stop protesting because Noreen was injured in a fall. They are both Army veterans and have many foster children.


From left, Noreen, Irene, a good Samaritan holding sign for Gad and Don

One of the Diamond sales agents told them they should be greeters at Walmart to help pay maintenance fees. Their complaint is identical to Sheilah Brust’s complain. Sheilah and Gad were sold by the same agent. Sheilah attended a presentation as a Secret Shopper and was told this agent was a problem at Wyndham.

Article 6 is Sheilah’s article. The article is called “Sheilah’s Pencil Pitch”

Sheilah is in possession of her “Pencil Pitch” which clearly states $8,631 minus $8,631 = 0 on the first page. There is an arrow and “save” written on the paper. At first, DBPR dismissed Sheilah with, “We don’t know if you were given this paper or you took it.” Sheilah was astonished. The last Sheilah heard from the reviewer is that she didn’t understand the program either until Diamond’s attorney explained it. That alone should have been grounds for dismissal. Here’s the first page of the pencil pitch. Sheilah was impressed her agent could write this upside down.

Article 7 is by Angela Simmons Sandstede. Her dad is one of those switched back and forth between Hawaii and US Mainland programs like the single female described in Article 1.

Roy is a retired letter carrier and Navy veteran, up-sold to $2.700 a month in loan payments. He had been charging loan payments to credit cards. The family had to retain a bankruptcy attorney. They are in their 70s. They had maintained a  high credit score before this.

Roy’s YouTube and March 6, 2018 article:

Article 8 This PhD trained the sales force for Perkin Elmer.

They are caregivers for two grandchildren, one autistic, one Down’s syndrome. They relinquished, losing everything.

Article 9 Filipino seniors with a previous high credit score foreclosed.

Article 10 – An executive VP posted one rental ad on RedWeek, despite hundreds of ads to rent on RedWeek.

Their account was suspended and it was demanded she pay $2,400 a month in loan payments and a $23,000 annual maintenance fee while her account was suspended.

Article 11- These seniors are foreclosed, the husband has Bell’s palsy

We were told “We are real estate agents. You can write off the interest paid and closing costs on these contracts because it is like real estate.” They said the proof was because they have real estate licenses. They are licensed real estate agents, but what they told us was not true. Our accountant said we were not allowed to take any deductions. We were told we had to buy that day so we could not talk to our accountant.

Article 12 This family did not know until they returned home they had purchased $142,000 in timeshare points, $17,000 charged to a Barclaycard.

Their attorney gave up. They submitted this article for comment and resolved their dispute that day. He is a Gulf War veteran, on 25 meds. She has had two knee replacements and a double mastectomy.

Article 13 A 21 year Army veteran, taught biological, chemical and nuclear defence at colleges.

Today we thank Samuel Melendez who spent 21 years in the army training soldiers, working with colleges, teaching chemical, biological and nuclear defence. When a military family is forced into foreclosure because they were lied to about being able to sell back points or finance at a lower rate, they don’t just lose their money. This can jeopardize their security clearance and their job.  

Article 14, A Coast Guard veteran, relinquished so lost all.

Rick Casper told us we should contact him when we needed to sell points because he had people that would buy them. This was the only reason we upgraded from 30,000 points to 50,000 points. When we contacted Rick earlier this year, we learned from Dan Percy (Rick Casper’s immediate boss) that we could not have been told that and we might be able to sell them through a resale third party. We never heard a response from Rick Casper.”

“In addition, we asked Rick about combining our seven previous contracts into one contract covering all 50,000 points. Rick Casper (allegedly) advised us not to do so as it would be easier to sell smaller quantities of points and inferred he could do so easier having contracts in increments, as when someone wants to upgrade from Gold to Platinum requiring only 20,000 additional points.”

“The thought of being able to sell was a relief.”

These are only a few of the Platinum complaints. We have heard from exactly 700 families as of today. We wish there were only a few bad apples, but Inside Timeshare says they have received multiple repeat offender complaints.

St. Louis BBB report warning consumers about timeshare

Don’t Fall for Deception Pressure and Traps Disguised as Vacations

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

We hope you can join us on May 17 – 20! We will publish exact locations soon.

Our Mission Statement

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; 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/

That is it for this week, we look forward to hearing your report on the protests next month and for those who cannot attend we will be there in spirit.

Inside Timeshare would also like to share this little gem from Mahatma Gandhi, it is for Irene Parker, who as we know is under attack from the industry big guns, you have our support Irene.

Have a great Easter weekend and join us again next week for more news and views on the murky world of the timeshare industry.

Friday’s Letter from America

Welcome to another Letter from America, over the past few weeks we have been publishing various articles on Bills which may have a detrimental effect on timeshare consumers. This week Irene Parker shares how she sees the legislation being proposed.

A Legislative Scorecard – Nevada Florida and Arizona

How to Connect Lobby Dots

By Irene Parker

April 12, 2019

VOTE “OPPOSED” TO NEVADA SB 348 UNLESS THE BILL IS AMENDED TO OFFER TIMESHARE BUYERS (NOT JUST THOSE RETAINING EXIT SERVICES), 24 HOURS TO REVIEW A TIMESHARE CONTRACT.

Review means an offer to be able to review a contract 24 hours before signing.

This offer should not be buried in fine print. Timeshare buyers who wished to waive the requirement could do so.

Rescission Period means the 3 to 10 days a member has to review after signing.

Nevada has an easy method to comment on the legislation. Select SB 348 and oppose the bill unless amended to allow a timeshare buyer 24 hours to review a contract:

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

Why would the American Resort Development Association (ARDA), an industry-supported PAC, and ARDA ROC, (Resort Owners Coalition), be so opposed to offering timeshare buyers 24 hours to think about their decision to sign a perpetual contract with little to no secondary market?

A recent complaint received by Inside Timeshare:

The timeshare member is single, over 70 years old. From 2015 to 2018 the member was ping-ponged back and forth seven timeshare times told, “You should not have bought Hawaii points,” and then “You should not have bought US Mainland points,” until up-sold into insolvency. The member has lost their entire retirement savings that were worth almost $400,000. The member also suffered tax consequences due to liquidating a retirement asset.

The timeshare member identified six timeshare sales agents, of which five are repeat offenders, names well known to Inside Timeshare. The sixth is an up-and-comer who up-sold the senior in Hawaii at a prior update. On a subsequent visit to Hawaii, a family member accompanied the senior to a March 2019 “mandatory” meeting. The sales agent informed the senior that there is going to be a huge Special Assessment in the US program so the member needed to switch back to Hawaii from the US program for the eighth time in four years. If agreed to, this would have cost the senior over $60,000, pushing the loss to more than $400,000. The sales agent also told the family member and the timeshare member that he has a broker they could retain to rent and get money back and at some point in time, the points could be sold back. They added that purchasing these additional points would also allow the member to use points to pay maintenance fees.

I am 100% confident the timeshare company will tell the member that they signed a contract. They will file a complaint with the Nevada Real Estate Division (NRED). NRED will provide the senior with a “You have no proof” letter.

ARDA lobbyist Don Isaacson has been quoted, “The state should not be concerned with those who did not bother to understand the product.”

I wish the member’s story was unusual. At the Florida legislative workshop and at the Arizona hearing, lawmakers themselves reported how they had experienced unfair and deceptive timeshare sales practices.

An overlooked Nevada bill:  

Nevada Assembly Bill 438: Vacation and Timeshare Plans

https://www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6835/Text

An OPC is a bird dog, if you will, hanging out at strategic locations, offering incentives to hear about something. NV AB 438 has no single sponsor. Many times I heard a member complain that they were not told it was a timeshare presentation. Nevada Assembly Bill 348 is an act relating to timeshare, providing the following:

Section 1 states:

1. The Administrator may impose a fine or suspend, revoke, reissue, subject to conditions, or deny the renewal of the registration of any representative if the representative has, by false or fraudulent application or representation, obtained a registration or is found guilty of (a) Making a material misrepresentation; (b) Making any false promises of a character likely to influence, persuade or induce another person to attend a timeshare presentation; (d) Must disclose that the promotion is for solicitation of timeshares.   

Florida HB 435: GENERAL BILL sponsored by freshman Representative Wyman Duggan profiled on LobbyTools.

Effective Date: 7/1/2019

At a Florida legislative workshop held March 12 in Tallahassee, the Florida Attorney General’s spokesperson admitted Florida received 1600 timeshare complaints annually in recent years, 700 so far this year, the bulk concerning the initial sales presentation, 50% seniors. “We engaged 42, mostly about resales,” they added.

This is good news for perpetrators as they can be assured oral representation will be dismissed, despite a volume and pattern of complaints.

Arizona ARDA lobbyist Don Isaacson assured those who attended the Arizona HB 2639 hearing that unfair and deceptive timeshare sales practices are minimal because Arizona only received 250 complaints in a year arguing that allowing a buyer 24 hours to review a perpetual contract is not necessary.

The Arizona House Bill 2639 was aimed at alleviating unfair and deceptive timeshare sales practices. The bill included allowing a timeshare buyer 24 hours to review a perpetual contract. ARDA was able to get this item in the bill thrown out.

I wrote “Timeshare Foreclosure Explained to Lenders” so members foreclosed can explain to their lender how when “pitched heat” by unscrupulous timeshare sales agents, they can lose $100,000 or more in a week, one second after the rescission period ends because the resort can fall back on the oral representation clause. By their own admission, Florida’s timeshare division DBPR will fall back on it too.  https://insidetimeshare.com/the-tuesday-slot-18/

From AZ HB 2639

Buyers often enter into timeshare contracts when on vacation, are encouraged to review documents after they return home from vacation, sometimes long after the rescission period has ended – leading to confusion, anxiety and costly fees that can last years.

The timeshare lobby ARDA and the timeshare industry have yet to acknowledge unfair and deceptive sales practices exist on the front end of the timeshare sale. The amount of money lost to timeshare exit companies pales in comparison to the amount of money timeshare members say they lost because they believed a timeshare sales agent, according to our 800 readers.  

When timeshare members receive their maintenance fee invoices, they are asked to make a $3 to $10 donation to ARDA ROC. Timeshare members collectively give ARDA ROC approximately $5 million a year. I have yet to meet the timeshare member who can tell me what ARDA ROC even stands for.

Timeshare members that have contacted Inside Timeshare are not trying to weasel out of their contracts because they can’t afford them. They allege unfair and deceptive timeshare sales practices. Our readers include doctors, lawyers, two private investigators, mortgage loan officers, professors, MBAs, war heroes, law enforcement professionals, criminologists (one a PhD), a detective who worked economic crimes under cover, and a contract specialist for ConEd, all alleging unfair and timeshare sales practices. What chance has the vulnerable?

All we ask is make it a level playing field, by providing disclosure, alerting the consumer – you cannot believe a word timeshare sale agents say because they could be “pitching heat.” Unscrupulous sales agents also harm honest sales agents trying to sell the product honestly. We’ve heard from a lot of them.       

The American Legislative Exchange Council

The reporter in this YouTube describes how lobbyists sit at the table with legislators filling in the blanks crafting desired bills tailored to their wishes. https://www.youtube.com/watch?v=6MHYOB5uptc

Our volunteers answer questions about regulatory filings when members complain of unfair and deceptive timeshare sales practices. Many members have resolved disputes by filing regulatory complaints. Too many families have been financially harmed by their decision to buy a timeshare, a product advertised to reduce stress.

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/

Other related articles:

Arizona HB 2639

http://www.orlandosentinel.com/opinion/os-florida-timeshare-tactics-scott-maxwell-20150411-column.html

https://www.consumeraffairs.com/news/diamond-resorts-still-cant-explain-why-it-sold-250000-worth-of-timeshare-points-to-an-88-year-old-032919.html

https://amp.usatoday.com/amp/3310015002

Thank you Irene, all we can hope for is that these Bills do not get through, timeshare consumers need protection not just from unscrupulous resale and exit companies but also from the industry as a whole. We have often stated that timeshare could be a good product, but as we know it is the way it is sold and the unfair conditions consumers have to put up with that are the problem.

Have a great weekend and join us again next week for more news and views on the world of timeshare.

Start the Week

The RDO (Resorts Development Organisation) is supposedly the trade body for the timeshare industry in Europe, yet it is their very own members who are being taken through the courts for the mis-selling of timeshare. Yet it fails to act against them or even sanction them for their misdeeds. In fact, if you look at their own membership list, it probably only represents about 10% of the industry in Europe, with many of their own members on the receiving end of hundreds of court cases.

Instead, it funds several entities to discredit companies that do genuinely try to help beleaguered timeshare owners, Kwikchex, Timeshare Taskforce and Timeshare business Check, all run by Chris Emmins. This gentleman does not have a very successful track record when it comes to his directorships, with 17 appointments with all companies being dissolved under his directorship.

Kwikchex and Chris Emmins replaced the now discredited Alberto Garcia who with his blog site Mindtimeshare did the RDO’s bidding, using the “Enforcement” program, now renamed Timeshare Taskforce. Granted, timeshare owners do need to know the good from the bad, but as we have seen over the years the good have been lumped together with the bad, all because they do not wish to subscribe to RDO membership or are using legal means against the timeshare industry.

Chris Emmins

So who do the consumers have to turn to?

At one time many believe that it was TATOC, The Association of Timeshare Owners Committees, but as we know that organisation has fallen by the wayside. It was also funded by the industry and the then CEO Harry Taylor instead of protecting timeshare consumers was very much on the side of the industry.

Recently the RDO announced a new organisation for owners, EUROC, or European Resort Owners Coalition. Yes, you have guessed it, the European equivalent of ARDA ROC from the US.

We do know that the RDO and ARDA, (American Resorts Development Association) are very close, in fact, the RDO is very much modelling itself on their US cousin. Lobbying on behalf of the industry to the detriment of the consumer.

UEROC, is being funded by both of these organisations, according to the RDO for at least one year, then it should become self-sufficient. But does that mean it will be funded by timeshare owners, or like we had with TATOC funded by industry membership and associates?

Is this new organisation actually going to represent consumers’ interests against the industry or is it going to be just another sham to make consumers believe they have a voice?

Only time will tell if what we are seeing with the industry in the US, with ARDA supporting bills which destroy consumers rights in Florida and Nevada, it does not bode well for consumers in Europe.

At least in Spain, the law is on the side of the consumer, making perpetuity contracts illegal, banning the sale of floating weeks and points systems, enforcing the cooling off period and forbidding the taking of any payments within that period. These are the basics of many of the court cases consumers are winning, resulting in contracts being declared null and void and the return of all payments.

If you purchased a timeshare in Spain after January 1999 and want to know where you stand legally, then use our contact page and we will point you in the right direction.

The Tuesday Slot

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

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

URGENT AND TIME SENSITIVE

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

Nevada Needs to Hear From You

The Next Timeshare Legislative Battle is April 5 in Nevada

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

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

Introduction by Irene Parker

Comments by Nevada resident and Timeshare Advocate Michael Kosor

April 2, 2019

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

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

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

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

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

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

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

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

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

There’s more!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

There is much to challenge in McKelvey’s testimony:

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

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

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

Self-help groups we feel are not industry influenced:

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

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

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

https://tug2.com/Home.aspx

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

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

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

Friday’s Letter from America

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

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

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

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

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

Nevada Pot Calls Kettle Black

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

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

Proposed Nevada SB 348

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

By Irene Parker

March 22, 2019

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

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

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

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

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

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

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

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

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

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

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

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

Florida HB 435 Workshop held March 12

Timeshare member response:

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

This bill creates several problems.

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

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

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

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

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

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

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

Carnival Gran Canaria

Friday’s Letter from America

Welcome to this week’s Letter from America, today Irene Parker gives her account on the workshop she attended at the Florida House of Representatives, regarding the Florida House Bill 435. As Sunday is St Patrick’s Day for all of our Irish friends, we couldn’t resist using the definition of Blarney in the opening graphic. After watching the recording of the Workshop, it seemed apt to use it, once you watch it for yourselves, you will understand why.

Before we go to Irene’s report some very brief news on the legal front in Spain.

In Tenerife, Silverpoint have been subject to a “cash” embargo, this is a result of a case brought by Canarian Legal Alliance for an execution of sentence on a recent case. Their senior lawyer Eva Gutierrez brought the order to the court to force Silverpoint to lodge the awarded amount with the court. This was done to ensure swift payment of the funds to the client, who will now receive 27,047.11€ plus legal fees and all legal interest.

CLA are now using this enforcement action as soon as the sentence is issued by the court. This stops any delaying tactics by the timeshare companies in making payment. It seems to be working very well.

It has also been published that the Fiscal Prosecutor in Gran Canaria, is looking into the accounts of Anfi Resorts and Anfi Sales, for the possible illegal movement of money to various accounts in order to delay the payment of funds to clients who have won cases against them.

For the Fiscal Prosecutor to be involved in this, shows that it is a serious matter, the full story can be read at the link below. Although it is in Spanish, use google and use the translate page feature.

https://m.eldiario.es/canariasahora/tribunales/Grupo_Anfi-timesharing-condenas-timesharing-insolvencia_punible_0_875612945.html?fbclid=IwAR0NGGZM0o8F8R8ZI3bD_Jsw5fS-HVuRSc0g1ed-lUJOS01GUZC48huO0_c

No for Irene’s report.

Florida House of Representatives

Business and Profession Workshop held in Tallahassee March 12

Florida House Bill 435

Does it restrict the rights of citizens to retain legal counsel?

By Irene Parker

March 15, 2019

Inside Timeshare has received many complaints about timeshare exit companies, in addition to reports from timeshare buyers describing unfair and deceptive timeshare sales practices. Critics of Florida HB 435 feel if passed this bill would restrict the ability of timeshare buyers to seek legal counsel.

Due to disclosures, we will not publish the link to the recording of the Florida HB 435 workshop held March 12, but the recording can be easily found at https://thefloridachannel.org/. Search the workshop by entering 3/12/19 Business and Professions Committee. The first 1 ½ hours is about beer and spirits distribution. The timeshare workshop can be found by fast-forwarding to the session’s last hour.

A panel composed of exit company attorneys and industry attorneys answered questions from Florida state representatives, who clearly seemed on top of the issues. Panel members included:

Jason Gamel, Sr. Vice President, Legal at Wyndham Vacation Resorts, Inc.

Shannon Zetrouer, Outside Counsel, Reed Hein and Associates

Tiffany Kimble, Director of Underwriting, First American Title’s Vacation Ownership Services Division

Wayne Halper, Esq., in-house counsel Wesley Financial Group, LLC

K.L. “Ken” McKelvey, CPA, ARDA ROC Chairman

Boyd McAdams, from the Florida Department of Business and Professional Regulation (DBPR), shed light on the number of consumer complaints filed in the last few years. Previously, our figures reported 2,360 timeshare complaints filed from April 2012 to April 2014. DBPR only acted on 110 of those complaints.

The approximate figures of timeshare related complaints, as I understood the figures, are:

2016        1200 complaints          600 reported misleading information

2017        1300 complaints          700 misleading information

2018        1300 complaints          700 misleading information  

2019        700 complaints            300 misleading information

Victoria Butler, from the Florida Attorney General’s Department of Consumer Protection, reported a figure of 1,500 to 1,600 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 engaged only 42 complaints, the majority concerning resale. This fits with our members reporting that all timeshare complaints they submitted, DBPR responded, “Verbal representations are difficult to prove.”   

Consumer attorneys matched the strength of industry attorneys. I would like to point out and dispute a few of the comments made by panel members Wyndham attorney Jason Gamel and ARDA ROC spokesperson Ken McKelvey.

Reid Hein’s legal counsel, Shannon Zetrouer, described how a buyer, typically held for hours in a high pressure timeshare sales presentation, signs a perpetual contract, often reporting that they were given misleading information.

Ms. Zetrouer argued that Florida HB 435 would infringe on a consumer’s right to seek other legal services, such as bankruptcy, foreclosure, or estate planning advice. She feels the bill, as currently worded, is overreaching in that it would affect timeshare buyers across the nation if they purchased in Florida.  “I specifically have concerns about House Bill 435. First, I think it will actually have a negative impact on consumers…It seems to infringe on the right of contracts and the right of companies to contract with consumers for relief that they [the consumers] are clearly seeking. Otherwise this industry wouldn’t exist,” said Zetrouer. “Simply put, if going to developers was an option for these consumers, then there would be no third party industry,” she added.

Mr. Gamel spoke of the 2012 Transfer Act that addressed disclosure, rescission, escrow and prohibited acts.

Ms. Kimball addressed the problems associated with fraudulent transfers.

Wayne Halper, Esq. described the criteria required to become a client of Wesley Financial Group, LLC. Wesley Financial receives 3,000 to 3,500 calls per week from timeshare buyers seeking relief from timeshare contracts. Of those initial contracts, only 150 to 200 per week are accepted as clients, because they must meet the criteria for fraud. Similar to the complaints Inside Timeshare receives, 100% of Wesley clients report being told the timeshare is an investment and will increase in value and 91% report the ability to rent will offset maintenance fees and provide an income stream in retirement.

Mr. Halper echoed Ms. Zetrouer’s comments, in that 99% of timeshares sold in America have a presence in Florida, and the bill as written would eliminate the right of timeshare members to seek the services of those offering exit services. Later in the discussion, Mr. Halper pointed out that being released from a timeshare contract can take up to three years. He felt it would be unfair to expect a provider not be allowed to charge for services performed until after proof of exit has been provided, proof not always provided.

ARDA ROC Chairman K. L. McKelvey said ARDA ROC represents 1.8 million Timeshare Owners. I have asked 742 families who have reached out to me, feeling they experienced unfair and deceptive sales practices, if they even knew what ARDA ROC stands for. Not one member could answer, yet collectively timeshare members give ARDA ROC approximately $5 million a year, often “opt-out” contributions.  

Mr. McKelvey described ARDA’s Responsible Exit Industry Coalition. For my timeshare, this is nothing more than media spin. I surveyed all 64 members of the Licensed Timeshare Resale Broker Association. Of the 64 members, 22 members responded, saying they would not accept a listing for my timeshare company, feeling restrictions the company places on points purchased on the secondary market excessive.

In response to a question asked by Representative Randy Fine (R), asking the percentage of Wyndham’s marketing costs; Mr. Gamel thought 30 to 40%.

Let’s compare this scenario to the primary housing market. The timeshare buyer sits across from a real estate agent in most states. There is an understandable assumption a buyer would think they have the same rights as a primary housing market buyer.

What would happen to the primary housing market if:

  • The Buyer paid 30 to 40% upfront in commissions,
  • The Buyer is demanded to buy the house the same day,
  • The Buyer learns licensed brokers won’t accept a listing to sell their home should they need to sell.

Committee member Representative Michael Gottlieb asked about “Adhesion” – meaning a timeshare contract cannot be changed, so why should someone need to talk to a lawyer before signing a contract, because you can’t change the contract anyway. The reason is because buyers are exhausted after an hours long high pressure sales session, signing a perpetual contract without being allowed adequate time to review copious and complicated documents. Not only attorneys, buyers are discouraged from seeking advice from a mom, dad, son or daughter. Sales agents are trained on how to defer this request, according to numerous current and former sales agents. Not being allowed 24 hours to think about a perpetual purchase, spending anywhere from $20,000 to $150,000 highlights the unfair in unfair and deceptive practices.

There have been many Attorneys General investigations and lawsuits concerning unfair and deceptive timeshare sales practices. Former Wyndham sales agent and whistleblower Trish Williams was awarded $20 million after reporting deceptive sales practices, and a recent Florida whistleblower lawsuit was filed November 2018 on behalf of ten former Wyndham sales agents and employees, working at Wyndham’s Florida Clearwater Beach Resort. Buyers need to beware of potential deceptive timeshare sales practices.

Buyers sign perpetual timeshare contracts accompanied by rising maintenance fees. Often existing members are sold additional points, promised maintenance fee relief programs that do not exist. The lack of a viable secondary market exacerbates the problem. Wyndham lists a viable secondary market as a risk to their stock market investors in their 10k reports.

Clearly, as Committee Chairwoman Heather Fitzenhagen stated, timeshare is a thorny issue. Let’s hope actual member voices can be heard in future sessions.   

On Tuesday, our reader data can easily address concerns expressed by Mr. McKelvey and Mr. Gamel:

1.     How rescission periods are easily dodged

2.     Why reading the contract does not always help

3.     Why the delay in reporting fraud

Related article: By Wyndham member and Marine Veteran Jim Sherwood, hardship appeal: http://insidetimeshare.com/http-insidetimeshare-com-p5114/


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/

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.

Contact Inside Timeshare to let your voice be heard.  

Inside Timeshare did have trouble locating the recording mentioned in paragraph two of Irene’s report, so Inside timeshare has provided a direct link to it in order to assist readers, the relevant part starts at approx 1:45:50

https://thefloridachannel.org/videos/3-12-19-house-business-and-professions-subcommittee/

Thank you Irene for your time in attending this workshop and writing this report, let us hope that the Florida Representatives see the need to protect consumers from the industry.

All that is left for us now is to wish you all a wonderful St Patrick’s day and to use one of their phrases

‘Bhi craic agus ceol againn’ : We had fun and music.

Join us next week for more news on the world of timeshare.

The Tuesday Slot: Arizona House Bill 2639

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

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

ARIZONA TIMESHARE BILL PASSES OUT OF HOUSE COMMITTEE

By Irene Parker and registered nurse, Fran D

March 5, 2019

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

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

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

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

ARDA – Is this is our voice?

According to ARDA lobbyist Don Isaacson:

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

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

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

















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

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

There are many ways to deceive, such as:

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

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

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

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

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

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

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

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

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

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

Virginia Beach, August 2017

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

Maui, Hawaii, February 12, 2018

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

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

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

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

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

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

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

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

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

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

IMPORTANT LINKS CONCERNING ARIZONA HOUSE BILL 2639

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

To Track Arizona HB2639: Trackbill.com

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

Proposed HB Bill 2639

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

Request to Speak for Arizona Residents

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

The “Kill Bill” Guide – How it Works

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

Coalition to Reform Timeshare









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

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

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

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

LET YOUR VOICE BE HEARD!