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Diamond Clarity

Friday’s Letter from America

It’s Friday and time for another Letter from America, this week another new contributor Elaine L, in her Open Letter to many heads of the timeshare industry explains her “Nightmare on Timeshare Street”. But first some news from Europe.

Yesterday we published the article on SilverpointsCompany Participations” scheme and the fact that they admitted in court that it is indeed timeshare, just after we published we had some more news regarding Silverpoint.

In a case that was won recently the lawyers from Canarian Legal Alliance have had success in securing another “Cash Embargo” against this company, also securing the payout to a German client. This happy client has now received the grand sum of 57,239.67€, which is 15,292€ more than they originally paid to Silverpoint for their timeshare.

Once again this is a tremendous blow to a company that has for many years been making millions from unsuspecting clients, the courts are obviously taking a very dim view of these past transgressions.

Inside timeshare has also received information from another reader regarding timeshare presentations, this time Azure Resorts in Malta, incidentally this is another Silverpoint company. This time it is regarding the QA sessions or what is commonly known in Europe as “button up”. It is the stage where the contracts are gone through with the client and explained.

Apparently these sessions are now being recorded, our reader explained that the person conducting the QA or button up re-words what the sales rep has told the client, such as the timeshare will go up in value and that they can sell it on if they no longer want it. The QA staff explain that they cannot guarantee increase in value or future sale, that is down to market forces. Again this is another attempt to secure the sale and negate any future litigation and complaints.

It must also be remembered that the person conducting these sessions is usually also on a commission for the completion, so it is in their best interest to ensure that the client does sign.

So now on with this weeks Letter from America.

An Open Letter to:

Michael Flaskey, Diamond Resorts CEO,

Robert Clements, ARDA lobbyist and Attorney

Gary Stein, head of Apollo Corporate Communications

Charles Zehren, Apollo Investor Relations

By Elaine L, #83 in our list of veterans, active duty service members, Department of Defense workers who feel we experienced unfair and deceptive timeshare sales practices

November 30, 2017

Timeshare sales can pose a national security risk. Just about anyone can get hired to sell timeshare points, and for those of us with Top Security clearances, our careers could be in jeopardy because we believed a timeshare sales agent. When the timeshare sales agent suffers no consequences, the sales agent has been given the green light to sell by any means knowing all complaints are answered in favor of the sales agent.  

 The public needs to know their complaint will fall on deaf ears before buying a timeshare. No matter what the sales agents said, and with little to no enforcement, the buyer will be held responsible for the contract. Diamond should want the public to know this.

According to Social Media reports, the Nevada Real Estate Division (NRED) also  dismisses complaints with, “You have no proof,” so there is nothing to stop a sales agent from making up reasons existing member need to buy additional points.

Our complaint:

Ages 50 and 49 respectively

I have a Top Secret security clearance

October 13, 2018 complaint

At a December 17, 2017 meeting, we asked Davia H about selling the Diamond/ Sunterra timeshare we already owned. We had tried unsuccessfully to sell our timeshare.  We made it clear that our interest was to sell all our interest in Diamond/Sunterra points.

Davia told us that there was no way to sell the Sunterra timeshare because we did not have “Full Club Member” Diamond benefits. She encouraged us to become “Full Club Members” with the promise of being able to sell the timeshare easier.

She said that the points we owned from our original timeshare were worthless and that we needed to upgrade to a “Full Club Member” to receive “benefits that would increase the value of the timeshare to make it worth buying.”  We were quoted a unit price of $8 per unit. We feel that not disclosing that timeshare points are worthless was a material omission.

Davia showed us Timeshareangels.com (a site selling Wyndham Resorts points and timeshares) – she told us she is also a Wyndham timeshare sales agent and said that people were selling points (units) for $4-$6 per unit. Davia showed us examples of listings for Wyndham timeshares. It has been widely reported Diamond points are worthless.    

Davia also said that she would show us how we could make money off our timeshare, if we bought into Diamond’s “Full Club Member” status. Davia advised us to wait six months before trying to sell because the value of the timeshare would increase. She also told us that she knew someone who helps people sell their timeshares and could give us her contact’s information. Given Davia told us to wait six months before trying to sell, it was too late to rescind the purchase agreement. Repeated calls and texts to Davia went unanswered.

Other claims Davia made:

  1. Our management fees would be locked in as “Full Club Members” so maintenance fees would no longer increase,
  2. The value of the timeshare would appreciate over time because of the affiliation Diamond now has with the Apollo Group. Due to the affiliation with Apollo, Davia said we could recoup our cash outlay and the value of the timeshare would continue to increase over time. Davia said the Apollo Group paid way too much for Diamond so were eager to recoup some of the losses.
  3. We could make our points earn money by selling them – she said we could sell our points for more than the $8/point we were paying.

We did not want to buy more points. We only bought points so we could sell them.

3500 points purchased at Cancun Resort in Las Vegas December 17, 2017

Purchase Price: $15,375

Barclays Credit Card opened and charged $14,000

I have filed a complaint with the Securities and Exchange Commission. I will also be writing to Maureen Farrell at the Wall Street Journal, who wrote of Diamond’s upcoming $4 billion IPO. Wall Street needs to hear our side.

Our original complaint sent March 1, 2018 was ignored. Davia used information asymmetry to make money off people in my position. My job and career are at stake due to her charade due to my top security clearance.   

Diamond used the recording of the Quality Assurance against us. The “Hospitality” agent said my husband had asked two questions. The questions were about an assessment fee and how long is escrow. How could we ask questions about the ability to make money or sell points if we didn’t know Diamond points were worthless?

The recording of the QA was reported in a Diamond CLARITY press release to be for the purpose of enhanced training. Several members have reported the QA recording has been used against them. I would like to know if the QA person is penalized financially if a sale doesn’t go through. Diamond does not allow the recording of the sales presentation. For us, there was no Diamond CLARITY promise of RESPECT for the customer, clear, concise, accountable and transparent information.

I sent our complaint to this list of contacts found on our advocacy Facebook page:

To: Michael Flaskey, CEO

Barclay’s President’s Office

DR PR Firm

ARDA

ARDA ROC

Association of Vacation Owners

Hospitality

If a sales agent can say anything to sell points, and the company response is that you signed a contract, then the public must be warned that they should not believe a word a timeshare sales agent says. There are over 2100 members on our member sponsored Facebook page.     

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

Thank you to Elaine for your contribution this week, we are sure it will be recognised by many of our readers, we can only hope that all those it is addressed to actually take notice, somehow I very much doubt it.

If you have had any experience such as those we publish, or have been contacted by any company telling you they can “exit” you from your timeshare or even get you “compensation”, use our contact page and let us know. Inside Timeshare will point you in the best direction and save you a lot of your hard earned cash.

Have a good weekend and join us next week for more “Nightmares on Timeshare Street” and all the other scams that are out there.

OPC´s in Europe and the USA.

Today’s article begins with a recent press release from the Arizona Attorney General, it then goes on with an article on OPC´s or Off Premises Canvassers. We begin with how they are regulated in most of Europe, then Irene´s article, where she has interviewed an Ex- Diamond OPC.

arizona-ag-seal

Arizona Attorney General Brnovich Announces $800,000 Settlement with Diamond Resorts – Forewarned by a Diamond OPC

For Immediate Release: December 23, 2016
Contact: [email protected]

Attorney General Brnovich Announces $800,000 Settlement with Diamond Resorts
Settlement Agreement Resolves Allegations of Consumer Fraud Act Violations

Follow the link for the press release.

https://www.azag.gov/press-release/attorney-general-brnovich-announces-800000-settlement-diamond-resorts

Diamond’s Response

The following response is from Maya Pogoda, DRI Public Relations Spokesperson

By Irene Parker

Diamond Resorts seeks to put its members first and provide the best customer experience possible and already has – and had – policies, procedures, training and a quality assurance program in place to provide a positive sales experience.  Nevertheless, anytime a member believes we fall short of that goal, we take that concern seriously and try to remedy the situation and do better going forward.

As part of our continual effort to improve, we have been working on a new national program that we will be rolling out later this month. This program, called Diamond Clarity, goes beyond the requirements of the AOD and includes policies and procedures that will create greater transparency for the consumer and accountability for sales agents and quality assurance officers nationwide.  Diamond Clarity will enhance our policies and procedures and improve the overall customer experience when purchasing vacation ownership.”

According to the Assurance of Discontinuance agreement,

“The provisions of this Assurance shall be limited to Diamond’s Business with Consumers at Sales Centers in Arizona and with Arizona-domiciled Consumers who attend Sales Presentations with Diamond outside of Arizona.” 

However, certain provisions regarding sales presentation should be applied throughout the organization and the industry like:

  1. Sales agents should not deviate from sales material
  2. Sales agents should not make oral representations at the point of sale inconsistent with the Purchase document.

The latter has been described by timeshare attorney Mike Finn of the Finn Law Group as “a license to lie”. Even this one change would radically improve the seedy side of timeshare. Read the document for complete terms. 

The Guys on the Street.

opc

In Europe the OPC´s or Off Premises Canvasser are in most cases subject to certain controls, the extent of this depends on the country.

On the Canary Islands the OPC must be badged and licenced, working from booths set up with the resort name for which they are working. According to the authorities they are not allowed to wander more than a few meters away from that booth and any attempt to coerce people who have made it obvious they are not interested, can be viewed as harassment. There can be some severe penalties from fines and the removal of the badge and licence.

On mainland Spain many do not adhere to the regulations and on many occasions you can see them dodging the Local Police. The Costa del Sol is particularly bad for the heavy handed approach and over the years there have been many complaints.

 

Malta has recently instituted some very strict regulations regarding OPC´s, this has resulted from the huge number of complaints made to the Malta Tourist Authority. Many of the comments made by people on holiday regarding the continual harassment from the street touts, have included that they love the island but would never return because of them.

The MTA has seen the damage that this is doing to the tourist industry and decided to act, this is not surprising as tourism accounts for a very large part of their economy.

They have instituted licences and are planning to outsource security patrols to police the timeshare touts. In a very clever move the MTA is requiring the timeshare companies to pay a 3000€ bond for each one they employ, allowing them to work in a regulated way. In the event of any breach of the regulations, rather than have the trouble of going through the courts, the companies will be fined direct from the bond. They will then have to make this up immediately. In another move, for very serious breaches, large fines will be given with licences removed and the culprits deported.

https://www.captchasolutions.com/article/89668/malta—tackling-the-timeshare-reps/

Back to Spain, many of the OPC´s are not directly employed by the resorts sales and marketing team, but work for a marketing company contracted by the resort. In this way the resort can deny any responsibility for the actions and pitch of the OPC. Diamond is one company who does not directly employ OPC´s and have done so for many years.

The tactics used to get you into the resort for a presentation are the same wherever you go, the lure of prizes and the promise that it will only last a short while. It has also been known for the OPC to pay the “UP” 50€ to attend the presentation as the pay per couple can be very good, in most cases around 150€ with a bonus if they actually purchase.

As you will see from the following, there is little difference between Europe and the U.S. in respect to the “scratch card touts”.

By Irene Parker, January 5, 2017

puzzle-pieces-and-people
Timeshare is a puzzle built by relationships between consumers, timeshare developers, timeshare sales agent and solicitors known as “scratch card” agents or OPCs. One OPC recently contacted Inside Timeshare concerned he might be leading people into – a Timeshare Trap.

The timeshare sale begins as a circle that starts with the prospects strolling down the street and a person greeting them with a bright smile and good news! We don’t often think about the important role the OPC plays at the beginning of the cycle that will end with happy vacations or a desperate attempt to get out of something the consumer did not understand due to high pressure, deception, lack of due diligence and vacation brain.

animated-questWho and what is an OPC

OPC stands for “Off Premises Contact” and here’s what they do and how they do it. It’s not an easy job, but it can be fun and exciting.

According to Simple Sales and Marketing Solution:

http://www.simplesalesandmarketing.com/2008/02/opcs-you-either-love-them-or-hate-them_12.html

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