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Diamond Platinum

Is This Another Nightmare on Timeshare Street?

Just before publication Inside Timeshare received this news:

Nancy and Dan Callahan had been denied what they demanded until Inside Timeshare sent a draft of Nancy’s article to Diamond Resorts for comment. The company has since worked with the family to reach a positive outcome. The problem is, Inside Timeshare has received information from four other Platinum members voicing the same complaint as Nancy, from the same Las Vegas sales center, claiming they were told things like “people will be standing in line to buy your Legacy points” when not one member of the Licensed Timeshare Resale Broker Association will even list Diamond’s non-deeded points. All the respondents have credit scores in the 800 range and in the 60s or 70s, but considering foreclosure due to variations on Nancy’s theme.We have also heard from lessor loyalty level members and from other sales centers, especially in Virginia and Ka’anapali Hawaii where one side of the ocean will sell US Collection points while the other side claims the member should not have bought Hawaii points due to special assessments or the anticipation of rising maintenance fees. They are then instructed to buy more points to go from one side of the ocean to the other. As one former Diamond Resorts sales agent told Inside Timeshare, “It’s a Hamster Wheel.”

Nancy and Dan Callahan Share their Timeshare Experience

Why don’t corporations admit wrongdoing?

Grabbing hand

By Nancy Callahan

Without our Diamond Resort’s Advocacy Group, my husband Dan and I would not have known where to turn. Even though, as in our case, Diamond Resorts turned their back on us saying we lied and their sales agent at Polo Towers told the truth, we know where we stand and we know we are not alone.

I am 69 years old and my husband Dan is 67. We are both disabled and we both retired from civil service. Dan is a retired army Lt. Colonel and a combat Vietnam and Desert Storm veteran.  

We are Diamond Platinum members. We feel our most recent Diamond purchase was made under deceptive and extremely high pressure selling techniques. We had been struggling with two loan payments of $329 and $121 but the most recent purchase we did not even realize we made, will drive us into foreclosure.

Diamond sales agent Rick Casper in Las Vegas on January 22, 2017 sold us 50,000 Diamond points bringing our total number of points up to 106,000. Our new loan payment is $2,133 a month which we cannot pay.

We did not realize we made this $142,000 purchase until we returned home and checked our credit cards. Prior to this purchase we owned 56,000 Diamond points which cost approximately $101,000.  As I have had a double mastectomy, undergone cancer chemotherapy, radiation and have had two knee replacement surgeries, buying more vacation points was in no way our intention. Dan has had two minor strokes and a mild heart attack. He has chronic pain and is on 25 medications prescribed by the VA and our doctors. Dan also suffers from PTSD.

The $142,400 purchase price for the additional 50,000 points purchased from Rick Casper included:

  • $121,025 loan
  • $17,000 charged to a DRI Barclaycard
  • $4,375 charged to our Hilton VISA Card which is being disputed
  • $142,400 total plus our prior $101,000 purchase totals $243,000 in DRI points.

The current balance on the loan is $142,850 financed at 12.93% plus a monthly collection fee of $6.

Our credit score before this fiasco was 825. It has dropped 50 points since we disputed our Hilton VISA charge. We have received harassing calls for several weeks from Diamond.

We were not provided a truth and lending statement. The copy we have has has no signature or initials by a Diamond representative.

How in the world could anyone make a $142,000 purchase without their knowledge?

multi arm

It’s not as difficult as you might think.

We were invited to attend a presentation at Red Rock Casino in Las Vegas to learn about new and exciting ways to use our Diamond points. Rick was there when we showed up and said, “I thought you were supposed to come to Polo Towers and not Red Rock Casino in Vegas.” Rick had arranged a conference room for the day.

Rick said we should join the new “Legacy program” that allows members to sell blocks of Diamond points to a third party with all Diamond benefits intact. This was said just to us as Rick took us to a private presentation because we were Platinum members. The benefits Rick talked about involved selling Diamond points and those benefits could only be obtained if we became part of the Legacy Program. He said if we joined the Legacy program “people would be standing in line to buy our points.” One of the biggest complaints from members is that you can’t sell Diamond points. “You will have enough points to travel to even Dubai Paris and London,” Rick said. Rick said if we joined the Legacy Program we would receive as Platinum members 50,000 bonus points.

I was in terrible knee pain that day as I had not brought my pain killers with me. Rick provided me with two glasses of wine in a-Styrofoam cups with plastic lids because alcohol is not allowed at presentations.

Rick also talked about how using Diamond’s Barclay MasterCard to make purchases was a wonderful way to offset maintenance fees through purchase credits. We signed up for the Barclaycard for this purpose. Rick, however, used the card to charge $17,000 worth of Diamond points. He did not explain that, when the card is used to offset maintenance fees, the offset is only 1.5%.

Six hours went by and we had still not decided on the Legacy Program. As the hours wore on, my pain increased and I became more and more confused. I walk with a cane so it was an effort just to walk to the restroom and back as it was some distance. I was exhausted. Dan is diabetic and needed to eat so Rick ordered room service. Dan was confused due to diabetic symptoms. We were so overwhelmed by the time we were signing contracts, we did not even realize we were buying points. Rick kept saying we would be receiving 50,000 DRI bonus points.

When we returned home we were shocked to see the charges to our credit card. We were signing things just to get out of there thinking we were just joining the Legacy Program and opening the new Diamond Barclay Credit Card that would pay for our maintenance fees through purchase credits.

Diamond Resorts has a new Consumer Advocacy Department which “Promises to help Diamond owners with their membership from Day One!” Aaliah Moore, one of Diamond’s Consumer Advocacy “Hospitality” agents has denied that Rick Casper made any misrepresentations and determined we were aware of what had transacted. We have learned from our Advocacy Facebook, there have been numerous complaints filed against Polo Towers with at least four directed against this same sales agent. All the families are financially devastated.

We were told hardship surrenders are reviewed and considered on a case by case basis but we would be denied based on deception and misrepresentations. The amount of money we would lose is too much to walk away from just so Diamond can take back our points and resell them for full value.

We will be filing a complaint with the FBI at IC3.gov alleging Financial Institution Fraud under the FBI White Collar Crime division. As credit cards were charged, we will be filing with the Consumer Financial Protection Bureau.

We are notifying the timeshare lobby ARDA ROC that Diamond is violating ARDA’s Code of Ethics, the FTC because Diamond is one of the only major timeshare companies that cannot be listed with a member of the Licensed Timeshare Resale Broker Association due to restrictions the company places on the use of points bought second hand more restrictive than Diamond’s competitors.

We would have never agreed to buy 50,000 points. We were struggling with the two loans we already had outstanding with Diamond and our home mortgage as we bought at the height of Las Vegas real estate and are underwater on our home mortgage. We sent Aaliah a spread sheet explaining our situation thinking she would realize it was obvious we would never buy $141,000 worth of vacation points given our medical condition, medical bills and home mortgage! We would have cancelled the contract immediately if we had known.  

The maintenance fees due on the new points are $6,830 in addition to the existing $9,554 or so paid for 2017 maintenance fees which we prepay each month on a credit card.

At prior presentations other deceptive tactics were used. We were told we had to buy Hawaii points in order to get availability on Maui. Then at the next presentation on the US mainland on March 1, 2014 we were told we should not have bought Hawaii points because it is dangerous to own Hawaii points due to special assessments at Diamond’s Poipu property.  We were told we had to transfer back to Diamond US Collection points. They said Hawaii point owners were charged a onetime fee of $9,000 for Poipu assessments. We had to purchase additional points to bring the Hawaii points back to the US Collection to get out of the Hawaii Collection.

Another reason we would not have purchased more points is because we have not been happy with the points we owned before this new purchase.

There have been many resort properties that we have never been able to make a reservation for. When we are able to book a reservation, these presenters wear us down with their high pressure tactics. When we say no to one salesman, another one appears with an even harder pitch. We check into Diamond properties with a sense of foreboding.   

We have notified the National Timeshare Owners Association that they need to warn existing owners about the harm Diamond Resorts is doing to many of their members.

The Arizona Attorney General’s officeAssurance of Discontinuance

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

A billion dollar class action Albright Stoddard Warnick & Albright in Nevada

http://insidetimeshare.com/1billion-law-suit-diamond-resorts-international/

A Diamond Advocacy member sponsored Facebook

We seek to provide Diamond Resort 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/groups/DiamondResortsOwnersAdvocacy/

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

advocate 1

At least in this case Diamond has reached out to this couple, and come to a positive outcome. Although there is still a long way to go before we no longer have stories like this coming in, it does seem as if Diamond are starting to take notice of these complaints, they are too similar to be isolated incidents.

Inside Timeshare welcomes any dialogue with the industry if it improves thing for the better, but it is your experiences that will make them look again at how they operate. If you have an experience, good or bad, you would like to share contact Inside Timeshare or one of the advocacy groups that we work with.

 

Timeshare Advocacy

On Monday 23 January we published “And So It Begins”, it was about freedom of speech and the press. This was in response to Irene Parker being banned from the Diamond Resorts Members Facebook Page, which is a members page for Diamond owners. Irene is a long standing Diamond owner. She campaigns for greater clarity in the sales process and for the secondary market, also for those who wish to surrender their ownership. In this she has engaged with Diamond in meaningful dialogue and has achieved some results.

Irene did managed to sneak in one Diamond owner’s testimony before she was banned from her Diamond Members Facebook page.

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

Irene caused an escalation in negative comments so was banned from the Diamond Members Facebook page, although the charge was because she posted our Inside Timeshare article about Attorneys General in the US working for timeshare owners, compared to Attorneys General who seem to be on the side of the timeshare developers. She was told she had been warned. When she posted her previous article on this topic, the article had been removed, but protest resulted in the article being re-posted. Irene erroneously  interpreted this as an approval of free speech.

The article banned and reposted was about timeshare dividing down party lines with Attorney General Eric Schneiderman halting sales at The Manhattan Club for a “bait and switch” scheme, compared to Attorney General Pam Bondi seeming to be on the side of the timeshare developers.

President Trump has a golf resort in Belmedie in Scotland with plans for around 900 timeshare apartments, which is set to double under new plans. In America this was reported to be only a golf course, they had no idea of the plans for timeshare to be built along with a 450 room hotel and 500 homes. Not to forget a second 18 hole course. We will of course be closely following developments in Belmedie and President Trump’s new golf and  timeshare resort.

Irene was accused of being political. Most timeshare owners don’t know that their voluntary $7 donation to ARDA ROC goes toward the timeshare developer’s lobby efforts. Lobby efforts in 2015 resulted in a law being passed making it more difficult for timeshare owners to be released from contracts due to “immaterial errors” as reported by the Orlando Sentinel. Is this not “political”? We reported on this in the October article “More News from Across the Pond”.

http://www.orlandosentinel.com/news/taking-names-scott-maxwell/os-gov-rick-scott-signs-bad-timeshare-law-20150617-post.html

For today, free speech still exists in Spain, Europe and in America. Free speech will always exist at Inside Timeshare or we will die trying. Without it you a will not know what is happening.

Today Irene´s article is about “Advocacy”, even Diamond agree this is needed and they have created a “Consumer Advocacy Department” to resolve consumer problems.

How Timeshare Advocacy Works

Update on Arizona Attorney General’s “Assurance of Discontinuance”.

 Retired Canadian Army Family’s Diamond Resorts Advocacy Experience.

By Irene Parker January 24, 2017

Support

For years timeshare owners and prospective owners have been clogging the complaint sites, complaining about what the Arizona Attorney General’sAssurance of Discontinuance” or AOD describes as Diamond Resorts:

Deception, deceptive or unfair acts or practices, fraud, false pretenses, false promises, misrepresentations or concealment, suppression or omission or material facts violating the Arizona Consumer Fraud Act.

Arizona Attorney General Mark Brnovich has issued Diamond Resorts an Assurance of Discontinuance and announced an $800,000 settlement.

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

Diamond Resorts, while not admitting wrongdoing, despite hundreds of complaints filed, takes owners concerns seriously. The company has announced a new Clarity program. Next week we will publish an article on Clarity offering owner feedback as to how they feel about the new program. At least it’s a step in the right direction.

Diamond has also created a Consumer Advocacy Department. It is my belief that owners need an advocate not employed by Diamond, interacting with Diamond’s Advocate until the owner’s concern is resolved or the decision is made to seek legal recourse.

In today’s article we examine one family’s advocacy experience. Terry and Roxanne Hurley were prepared to sign their Diamond relinquishment papers until they got to the part about not being able to say anything negative about Diamond.

“We put everything we had for our retirement into this, and we are gutted to know our many years in the Canadian Military (Army), planning and saving for our retirement over 40 years, is most likely lost,” said Roxanne.

Not knowing where to turn, the Hurleys contacted me and asked if there was any way they could recover any of their life savings. Most people would have contacted an attorney, but we contacted Diamond’s Advocacy Department. The reason they invested all their savings was because the Diamond sales agent (Vacation Counselor) said buying Diamond vacation points was like buying a second home. He neglected to tell the family it was like buying a second home without a secondary market.

The Hurleys chief complaint was availability. “Ash painted a beautiful picture of Diamond and even gave us a beautiful book and said these were all the places we could go. He said we would have access to over 2500 resorts through Interval International,” Roxanne explained. “We were getting ready to retire from the Canadian Army and we thought what a wonderful way to spend our retirement! He showed us a beautiful suite we would be able to get if we wanted to stay at Mystic Dunes.”

Terry and Roxanne Hurley recently retired from the Canadian army.

Hurley

Terry and Roxanne twice bought Diamond vacation points from DRI sales agent Ash Hanting at Mystic Dunes in Orlando. They bought points a second time when they discovered they did not have enough points to book the following year after their first purchase. The Hurleys have spent 50,000 Canadian for 15,000 points.

Armed with 15,000 points, they tried to book Myrtle Beach but it was not available so they had to book through Expedia. Booking one year out they were able to book Arizona.

 Terry and Roxanne approached Ash on a third visit to Mystic Dunes asking how they would go about selling their points because the vacation plan they bought was not turning out to be what they had been promised. Ash told them they would need to get a broker.

Unfortunately, not one member of the 64 member Licensed Timeshare Resale Broker Association will market Diamond points because they feel Diamond points are worthless on the resale market due to restrictions Diamond places on points purchased resale. LTRBA members will buy and sell any major timeshare except Diamond Resorts; although I’m told only one of the members will market Westgate.

http://www.licensedtimeshareresalebrokers.org/

The Hurleys told Ash the level of quality of their current accommodation was nowhere near the standard of what they were showed when they were sold their initial points. Their complaints were ignored. Roxanne wrote to Founder Stephen Cloobeck and Victor McElroy about what they felt were deceptive business practices, but no one responded.

The Hurleys are coping with Roxanne’s mother who is very ill and who lives about 2000 miles from them in Ontario. “It is very difficult to scrimp up the money to get to her. And my husband is dealing with medical issues as well,” Roxanne added.

I contacted Maya Pogoda, Diamond’s Public Relations Representative helping to launch Diamond Advocacy and Clarity. While the Hurley’s concerns about availability and the burden of rising maintenance fees, exacerbated by the Canadian exchange rate, have not been resolved; Diamond’s Advocate was able to offer the Hurleys a little “time out” in the midst of the family’s medical crisis in order to allow the family some time to weigh their options. I had suggested someone from Diamond contact the Hurleys to see if someone could help them find better availability. That is not the role of the Vacation Counselor, so Mr. Hanting cannot be of help.

Timeshare Needs a CASA,  

CASA

Court Appointed Special Advocates, (CASA) is a national association in the United States that supports and promotes court-appointed advocates for abused or neglected children in order to provide children with a safe and healthy environment in permanent homes.[1]

The CASA is a volunteer who need not be an attorney, whose role is to gather information and make recommendations to the judge.[3]

Judge Soukup in 1977 formulated the idea that volunteers could be dedicated to a case and speak for children’s best interests.[5]

Fifty volunteers responded to his idea, which started a movement.[7]

A Proposal for our Attorneys General

Appointed Special Advocate for Timeshare Owners (™)

Here to help

CASA provides a voice for the voiceless. The Hurleys are not alone. I have talked to dozens of owners who don’t know where to turn or who to talk to.

Other advocates pictured above include Sylvia Saldana. The Saldana family is left with a $33,000 home equity loan and no vacation points.

http://insidetimeshare.com/irene-parker-write-barclay-card-usa/

Kathie Olds and her husband were told to buy more points because Apollo would be coming up with a new program that would allow them to “cash in” points at $.50 a point to pay for maintenance fees. Points sell for about $2 to $4 a point.

http://insidetimeshare.com/call-change-us-timeshare-industry/#more-1397

BL, Our Devil’s Advocate saying positive things about Diamond having signed a non-disclosure statement.

Roxanne Hurley

Irina Allen (featured in last week’s article)

http://insidetimeshare.com/timeshare-news-across-atlantic/

As a former CASA supervisor, I wrote court reports and attended hearings and trials on behalf of foster children and teens aging out. Victimized timeshare owners need a voice for the voiceless. Just like foster care, there is a need for advocates who understand the system. The Arizona Attorney General’s “Assurance of Discontinuance” is 37 pages long. It’s a lot for me to plow through.

Here is one reason why the Arizona AOD has encouraged DRI agents to stick to the script rather than make oral representations offering benefits not in existence. DRI Sales agent Wajdi’s promise below wandered far afield:

We (C and P) purchased an additional 60,000 points from Wajdi at Cancun Resort on July 25, 2016 based on our ability to sell half of our points back to DRI to pay maintenance fees. We have contacted Wajdi a few times, but still do not know how to pay our MF with points.

Through advocacy, C & P’s concerns were resolved. They will remain Diamond Platinum members because of their positive outcome. They ceased legal action.  

A lot is happening in Timeshare.

get-involved

This is what freedom of speech really means, without it nothing will change, Inside Timeshare will report what it finds, whether it is good, bad or ugly. We will continue to publish Irene´s articles on what is going on in the timeshare world in America. We also hope to start publishing news from timeshare owners in Australia in the very near future. The problems facing timeshare are not confined to Europe or America, they are worldwide.

Inside Timeshare welcomes those with news and views on timeshare worldwide, we will endeavour to publish and keep all informed on events and news which affect you the owners.

 

Call for Change in the US Timeshare Industry

Continuing with our US timeshare theme, Irene Parker today highlights some of the problems that beset consumers in the USA, she asks the question who do consumers go to when they have a problem or complaint?

In this article she tells the story of an elderly couple Kathie and Wes Olds, who are Diamond Platinum members, 50,000 points, the concerns they raise about the constant upgrades and how they were encouraged to open a Diamond ResortsBarclaycard”. By using this card for purchases they could earn a 1.5% cashback award that could be used towards maintenance fees. As they found out later, it was not going to be that easy.

Irene also explains how the Olds, were told they could use their points towards the $8,200 a year maintenance fees at $0.50 a point, only problem is to be eligible they would need to purchase more points. As Irene put it previously the Olds were now part of the “Continuous Money Making Machine”.

Enjoy the article, it is certainly an eye opener.

FTC = Federal Trade Commission

FBI = Federal Bureau of Investigation

Is the FTC or FBI an avenue for Change for Diamond and other Timeshare Owners Devastated by Little or no Secondary Market?

By Irene Parker

Inside Timeshare

December 5, 2016

burglar

Timeshare today has been reduced to high pressure, often hours long sales presentations demanding prospects sign a perpetual contract today or lose incentives and perks that will be gone forever. The contract language often includes, “Heirs, successor trustees and personal representatives bound by the contract obligations.” Throw in the limited or nonexistent secondary market and you have a recipe for disaster.

Inside Timeshare previously told the story of the Saldana family. The family has since surrendered their Diamond contracts due to rising maintenance fees. Remaining is a $33,000 home equity loan. With legal help, they quite possibly could have been released from a timeshare loan. Timeshare buyers are often encouraged to obtain a home equity loan due to timeshare’s 14% to 18% loan interest rate. This conveniently lets the timeshare developer off the hook when the owner can no longer afford the rising fees.

http://insidetimeshare.com/irene-parker-write-barclay-card-usa/

The Saldana family was encouraged to open a Diamond ResortsBarclaycard” to become a Diamond platinum member so that they could charge their maintenance fees. A Diamond “point” historically costs $2 to $4 a point, but if used for maintenance fees, is worth only a few pennies on the dollar. They declined.

The Olds Family did open a Barclaycard.

Kathie and Wes Olds, ages 68 and 69, acquired enough Diamond points to become Platinum members. Like the Saldana family, the maintenance fees have become cost prohibitive. The Olds family own 50,000 Diamond points.

At their last Diamond “Owner’s Update” at Mystic Dunes in Orlando, Wes and Kathie expressed their concern over rising maintenance fees. The sales agent said they were in luck. Apollo Global Management, the private equity firm that purchased Diamond in a $2.2 billion buyout this past September, said effective February 2017 owners could “cash in” their points for $.50 a point and use them to pay maintenance fees, but they would need to buy another 10,000 points for $37,000. The sales agent suggested a home equity loan. Remember, we said points historically have sold for $2 to $4 a point.

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