Browse Tag

Diamond Resorts

Friday’s Letter from America

Welcome to this weeks Letter from America, today we publish the final report by Irene Parker on the Platinum Protest in Orlando which was held on 17 to 19 May. This report also includes their brief stories which helps to explain why they are protesting. In the case of Patty and her story, we have received many complaints which have named the same sales agent. Inside Timeshare has read these complaints and it is surprising that for people who have never met how close their stories are. This can only lead us to conclude there is something very wrong in what this sales agent is doing.

What Happened at the May Platinum Member Protest in Orlando

Save the Date for the next Platinum Protest in Arizona:

Veteran’s Weekend November 9 – 11


From left: Anna, Cindy, Sheilah and Patty

By Irene Parker

May 24, 2019

Many have expressed admiration for the efforts of four Diamond Resorts Platinum families protesting on behalf of 85 Platinum members who have reported that they were told to buy additional timeshare points for reasons they say do not exist. Of the 85, 43 reported that they were told they would be able to offset maintenance fees only if they purchased additional points. Others report they bought points told that they must buy additional points to be able to sell points.

What happened to Sheilah and Gad (a protestor not pictured), is why Friday’s location was at the Florida state building housing the Florida Attorney General’s timeshare division, the Department of Business and Professional Regulation (DBPR).  Sheilah, Gad and a third buyer all bought from the same Daytona agent.  They each have their “pencil pitch” which is what agents scribble as they talk. Near the top of Sheilah’s three-page pencil pitch appears:  

8631 (Now) – 8631 (Save) = 0

What could be clearer?

1) (Now) (Save)

2) Redirect savings to help offset costs (to 0)

The complete explanation is in Sheilah’s article:

https://insidetimeshare.com/fridays-letter-from-america-11/

Diamond Sales Agent pencil pitch

Diamond’s response, from the company promoting a CLARITY promise of “Clear, concise, accountable and transparent information” was, “We admit this was confusing, but it was not illegal,” according to Sheilah.

“Talking to the Florida Timeshare Division DBPR was the same as talking to Diamond Resorts,” Sheilah said. At first, I was dismissed with “We don’t know if you were given this evidence or if you took it.” Their point I believe was that evidence obtained illegally is not admissible. When I questioned the logic of this statement, the reviewer called back several days later reporting that she spoke with Diamond’s attorneys. “I didn’t understand the program either until I spoke with Diamond’s attorneys, but now I do,” she reported to Sheilah. It’s not difficult to understand why someone would be so angry they would fly 1,000 miles to protest.

Florida’s DBPR has dismissed all our readers’ complaints with, “Verbal representations are hard to prove.” While Arizona, New York, Tennessee and other states have launched timeshare investigations based on a volume and pattern of complaints, Florida will not. When Sheilah asked why, the DBPR supervisor responded, “How they do things in other states is not how we do things in Florida.” By their own admission, Florida dismisses timeshare complaints, despite a volume of complaints. The timeshare lobby ARDA has been quoted as saying, “Timeshare is a highly regulated product.” Apparently regulation means dismissing all complaints.

Florida’s dismal statistics:

As reported at a Florida legislative workshop in Tallahassee 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.

Nevada is another state that dismissed all our readers’ complaints with, “You have no proof.” At least in Nevada, you can record a conversation without the other person aware. Florida is a two-party state meaning it is illegal to record without the other person aware.

How in the world is a timeshare buyer expected to obtain proof?

Three of our protestors were able to speak at length with one individual inside the state building. In fear of retaliation, we will not identify this person, but their advice was to have the protestors protest every Friday. Logistics preclude this, but we appreciated their support and knowledge of unfair and deceptive practices.

Inside Timeshare has heard from 831 families describing unfair and deceptive timeshare sales practices. ARDA and Diamond’s CEO Michael Flaskey argue that the vast majority of timeshare buyers are happy with their timeshare.

Fair enough, so I checked facts and figures. I contacted law firms and timeshare exit companies throughout the United States. There are many. Two exit companies reported that each receives 3,000 to 3,500 calls per month. They accept less than 200 as clients. Just two of the many law firms and exit providers receive over 6,000 calls per month from families seeking timeshare release! An entire industry of law firms and timeshare exit providers has sprung up catering to timeshare members waking up to the realization that the timeshare they were told would be easy to sell, or sell if they bought additional points, has no secondary market.

I have to admit I was not looking forward to a weekend of sign holding, but the reward we felt by the number of horn honks, thumbs up and, especially on Sunday, a steady stream of members stopping by to express their concerns, made it all worthwhile. Here we met Platinum member #84.

I’m not a Platinum member, but wanted to support the Platinum Protestors’ efforts. Patty and Cindy have their stories. The second day of the protest I heard from a Diamond member who contacted me infuriated. She had bought points from the same agent Patty bought points from, becoming #43 of 85 Platinum members who say they were pitched maintenance fee relief programs that do not exist. This will make six complaints against Patty’s agent; the third complaint against this agent was from a couple ages 79 and 80, the husband diagnosed with Alzheimer’s disease. We even have a recording of the agent provided by a veteran from over a year ago who experienced a similar up-sell.

Rather than show concern for 85 of their highest loyalty members who have reported unfair and deceptive practices, Diamond and the timeshare industry as a whole insists there are few complaints. There is not enough space in an article to list all the law firms, timeshare exit companies, lawsuits, including whistleblower lawsuits, and Attorneys General investigations concerning timeshare sales.

All protest participants had been timeshare owners and members for decades. They liked timeshare. The Platinum members had purchased points a number of times, so with the ensuing trust did not expect to be blindsided by programs that they say do not exist.

We’re not saying there are not honest timeshare sales agents trying to make a living selling timeshare points properly. But when top liars, who eventually get fired for pitching too much heat, are put up on a pedestal for new hires to emulate, the result fosters deceit.    

Many have wondered if this industry could exist without deception. One timeshare insider reported that Diamond Resorts has the highest loan loss provision of all major timeshares. As reported by Wall Street:

Diamond Resorts International Inc. Downgraded To ‘CCC+’ On Very High Anticipated Leverage, Outlook Negative

The negative outlook on Diamond reflects our expectation for minimal cash flow generation and very high leverage in 2019. The outlook also incorporates our belief that the company is vulnerable to possible future operating missteps or an unexpected downturn in the economy over the next two years, which may render its capital structure unsustainable despite our assessment of adequate liquidity.

https://www.ademcetinkaya.com/2019/04/diamond-resorts-international-inc.html?fbclid=IwAR0N7Sc0Dld_LFlK8F2sv0-t4gIzAr-yd5HngEyWb6JLnVcW_OA0hfvSPPU

Many of the 85 Platinum members have resolved their dispute, but resolution required several rebuttals and regulatory filings. Some relinquished their points, meaning they walked away from all the money spent. Diamond points sell for around $4 per point so we’re talking about Platinum members with 50,000 points or more walking away from $200,000 or more. A recorded QA closing is routinely used in the dismissal, but recording the sales session is not allowed. As mentioned, recording without the other person aware is legal in some states, but not Florida.   

Given a reluctant regulatory environment, the Courts of Public Opinion seem the only courts open. Holding up signs is not easy, but the rewards are great. A realtor stopped by clearly upset that he could not sell a Westgate timeshare for his client. I gave him my contact information. Within a few hours, his client called from Brazil. Out of about 60 licensed timeshare resale brokers, only one I am aware of will accept a Westgate listing. If there are no takers, I advised the member to speak Portuguese when the maintenance fees collectors call. He can no longer afford the timeshare. Fortunately, there is no loan outstanding. His relief at hearing straight answers was palpable, even from that far away.    


Grateful listeners

Two new Facebooks have been launched by Wyndham and Starpoint Sapphire Inside Timeshare contributors. Through Social Media and grassroots protests we little by little are letting the consumer know timeshare sales can be a quagmire of debt and deceit. These are the support groups we feel are not industry influenced:

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

https://tug2.com/Home.aspx

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

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

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

Thank you Irene and a very big thankyou to those who were able to make it to the protest, also thanks must go out to all those who showed support in whatever way they could. The next Platinum protest is scheduled for 9 to 11 November which is Veterans Weekend in the US and is being held in Arizona. If you are able to make it, you will be most welcome.

That is all for this week, use our contact page if you have any views or comments on any article published, or if you just need a little help or advice we are here to help.

Have a great weekend and join us again next week.


The Tuesday Slot

Welcome to The Tuesday Slot, today we welcome another new contribution from the Valdibieso Family, with their “Nightmare on Timeshare Street”. These features are becoming all too commonplace, so it does beg the question, When will the industry take note and change?

Our very own Irene Parker has reported that the Platinum Protestors, protesting out front of Diamond Resorts Cypress Pointe Resort in Orlando over the weekend, especially on Sunday, had a steady stream of horn honks, thumb’s up, and members who talked about their experiences, and many who asked questions about their concerns. On Friday, May 17, they protested outside the Florida Timeshare Division. One person who works inside the state facility, who asked not to be identified, suggested they protest every Friday. Unfortunately, since the protestors live in NY and AZ, it would be difficult to commute. All in all, it was a major success. A full report will be presented in Friday’s Letter From America.

Don’t Buy a Timeshare Without Checking Good and Bad Reviews

By the Valdibieso Family

May 21, 2019

Our nightmare began after we purchased a Sapphire Resort timeshare in Las Vegas in October 2017.  From the start, our timeshare experience has been one of anger and frustration.

We have joined efforts with Vanessa Hernandez who purchased a Sapphire timeshare the day of the Las Vegas mass murder. Her article is linked below. Vanessa was uncomfortable after signing her contract, so planned to review her contract that evening, but attended the concert that devastated her life. She could not even get out of bed for a long time due to the trauma. Even a horror like witnessing a mass murder did not move Starpoint Sapphire to cancel her contract, despite reported misrepresentations.  

I found 221 Starpoint Sapphire complaints on file with the Better Business Bureau, in addition to a host of complaints on other complaints sites. Starpoint has an A+ BBB rating. The BBB basically assigns a rating on how efficiently a company handles complaints. As you can see, Starpoint Sapphire is quick to respond that you signed a contract so you’re stuck.  

https://www.bbb.org/us/nv/las-vegas/profile/resort/starpoint-resort-group-inc-1086-66568/complaints#176983305

Vanessa and I have joined forces to get the word out to let others know the timeshare you buy is worthless if you need to sell it. Not only is it worthless, it is accompanied by rising maintenance fees. I know of no other product that holds the buyer hostage, making sure they stay vacationed or else.

This is the link to our Facebook:

https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Join our consumer protection efforts. If you bought a timeshare and are happy with it, we understand. Not all sales agents are deceptive. We intend, like so many other timeshare buyers who feel they experienced unfair and deceptive sales practices, to build our Facebook group and start a RedWeek and Timeshare Users Group thread.

Until the timeshare industry wakes up to the fact that they are financially destroying family after family by allowing unfair and deceptive sales practices, and restricting the secondary market to the extent you can’t dispose of it, consumers will be harmed. Publicly traded timeshare companies even warn their stock investors that a secondary market is a risk to THEM. What about us?

Our Timeshare Nightmare

Our Sapphire sales presentation dragged on for hours. To seal the deal they offered us a free trip to Hawaii or Cancun but said we had to sign quickly because they were only giving one free trip to our group.

After we signed a contract, something didn’t feel right. We decided to cancel the contract. When we talked to them about cancelling, we asked how the timeshare could be transferred to someone else and – boom! That’s when we found out about maintenance fees and all the fees that would be needed if we wanted to sell the timeshare. They also informed us that if we could not sell it, we did not have the right to cancel. None of this was mentioned in the presentation. A company representative suggested we put it on Craigslist and hung up. We have tried to contact Sapphire, to no avail. They could care less about misrepresentations.

We were told we would be allotted 5,000 points annually that would allow us to go anywhere. This was not the case. The Sapphire points are not good everywhere. They can only be used at certain places and then only thru RCI. This was crazy because I did not even sign up for RCI. When we attempted to reserve a stay, we were informed that our points would expire on July 10, 2018. We could roll them over, but we could only roll them over one time. The points eventually expired.

All the locations listed in a book that was given to us required over 5000 points. We were also informed we could purchase trips for only $269. That was not the case, because again, we could only book through RCI and they have different rules. This had not been explained.

The free trip to Hawaii turned out not to be free. The sales agent failed to mention all the fees that we would have to pay, or that we would have to fly out from a specific airport, one we did not have easy access to. We would have to pay for plane tickets to the required airport and back. The free trip to Hawaii was what eventually sold us. If we knew about the costs associated with the “free” trip, we would not have signed the contract.

We have never used our timeshare.

This has literally been one of the worst experiences we have ever had in terms of deception and aggressive sales tactics that seem geared to wear you down. They brainwashed us and have caused our marriage to fall apart due to the stress of this purchase.

Only false promises accompanied our purchase.

Excerpt from Vanessa’s Starpoint Sapphire Resort article

October 30, 2018

To be honest, I don’t remember as much as I’d like about the purchase of our Starpoint timeshare October 1 of last year. That night Rogelio and I went to the concert that flipped Vegas upside down. We hid and ran for our lives, hoping to make it out alive. Thankfully we did. We cut our trip short, so I didn’t look over the paperwork as I told myself I would. I couldn’t get out of bed or eat for a month.

I remember feeling pressured and pushed into buying the timeshare, which was why I told myself I needed to look over the paperwork as soon as I got home. The reasons I felt uncomfortable with my decision:

  • They said the timeshare was prime real estate,
  • I was not aware the credit check was being run,
  • They told me to wait 30 days before booking,
  • They promised a free trip (which never materialized).

If you would like to join Mari and Vanessa’s Advocacy Facebook, contact Inside Timeshare and we will put you in touch with two more timeshare regret consumers dedicated to warning the public about the negatives of timeshare, to counterbalance timeshare developers and lobbyists insisting few regret their purchase.

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/

New: https://www.facebook.com/groups/376743609795740/

https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

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

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

That’s all for today, thank you to our latest contributors for their story, if you have a story that you would like to share, whether it be a “Nightmare on Timeshare Street” or a positive experience (which we would love to hear about just to make a change), use our contact page and get in touch.

Friday’s Letter from America

Welcome to another edition of our Letter from America, this week we ask for your support to the protests planned for May 17th to 19th, this is another in a series of protest that disgruntled timeshare owners have staged. The protest centres on “Unfair and Deceptive Timeshare Sales Practices”, this is a subject of many of the complaints received and also of the many “Nightmare on Timeshare Street” articles we have published.

Following on from our Tuesday Slot and the lawsuit between Diamond & Aaronson here is an editorial by Timeshare Insider.

Irene Parker is not under the jurisdiction of the court over the lawsuit Diamond Resorts filed against attorney Austin Aaronson, so she is not obligated to keep terms of the settlement of Diamond Resorts v Austin Aaronson confidential, as requested by Diamond’s outside legal counsel, attorney Richard Epstein of Greenspoon Marder. However, Irene wishes to respect the wishes of Judge Dalton.

Suffice to say this is what Diamond CEO Michael Flaskey reported to the media:

https://www.prnewswire.com/news-releases/diamond-resorts-pleased-to-announce-settlement-with-timeshare-exit-attorney-in-efforts-to-protect-customers-300846745.html

This is what eye-witness Irene Parker reported:

You decide

Inside Timeshare received Diamond Platinum member complaint #82 yesterday, yet another Diamond Platinum member alleging they were up-sold into insolvency, promising maintenance fee relief programs, or programs that would allow the ability to sell points, programs that do not exist.

Hence, Diamond Platinum Member 82 Protest in Orlando next Friday, May 17 to 19. You don’t have to be Platinum to join.

Save the Date! Our next Platinum 80 Protest is in Orlando

May 17 – 19 Two Locations:

Location 1: Friday May 17 from 10 a.m. to 5 p.m.  

Florida Timeshare Share Division DBPR Office

400 West Robinson Street, Orlando

Location 2: Saturday Sunday May 18 and 19 – 10 a.m. to 4:30 p.m.

Near Disney World

535 S Apopka Vineland Road and Palm Parkway, Orlando

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

Protesting Unfair and Deceptive Timeshare Sales Practices

By Platinum Protest Organizers

Friday May 10, 2019

When we protested in March in Las Vegas, we protested on behalf of 70 Diamond Resorts Platinum members alleging that they had been intentionally targeted for their loyalty and deliberately up-sold into insolvency. Since then we have grown to 81 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.  

By their own admission, Florida’s Attorney General’s Office and the timeshare division, Department of Business and Professional Regulation (DBPR) will take no action unless a member can produce proof. Given Florida demands proof, Florida should change from a two-party state to a one-party state, meaning make it legal to record a timeshare sales presentation without the other person aware. Otherwise, how can there ever be proof? They don’t even let you take what sales agents scribble on paper.

There are many things that cannot be determined by reading a timeshare contract.  One member reported that he was shown at a Virginia sales centre a “Special Sales Double Platinum” booking site, but if he had given up his deed he would no longer be able to book the weeks he had owned for years at the Silver loyalty level. He would not have found this out until after the rescission period, as members report not being allowed onto the booking site until after this period to cancel has passed.

His online Diamond account is a “Special Sales Double Platinum Account” (a descriptive term as there is no such thing as a Double Platinum loyalty level). It shows everything in the system and probably quite a bit more, but did not display what we would have access to using the proposed 15,000 points (for two weeks).     

As reported at a Florida legislative workshop in Tallahassee 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.”  

Diamond points sell for around $4 a point. Platinum members own a minimum of 50,000 points. By 2018 maintenance fees had increased to $8,631. Out of 81 Platinum complaints, 42 members report that they were told of maintenance fees relief programs that they later learned did not exist and 16 specifically report that they were told they could pay maintenance fees at $.30 per point.

Only Platinum loyalty level members can pay maintenance fees at $.04 per point. 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 complain about being told they can turn in points to pay maintenance fees at $.30 per point, Diamond 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.

Platinum 81 Complaint Statistics:   

Seniors:  54 out of 81 member complaints are seniors, 65%

21 out of 81 are Veterans, Active Duty Service Members, Law Enforcement, 20%

Other Reports of Unfair and Deceptive Practices

  1. If you buy the additional points, you will be able to sell your points. Contact me when you want to sell points. When the member contacts the agent, the email or call goes to the VP who responds that there is no program to sell points.
  2. If you purchase these additional points, you will be part of the Legacy program and your heirs will not be liable for the points.    

We want consumers to Beware and Be Aware. Similar complaints have been directed against other timeshare developers and sales agents as well. Understand:

  • You may be browbeaten for hours by a tag team of three against two,
  • You can record in some states like Arizona and Nevada,
  • Most contracts are perpetual, and,
  • There is no secondary market.
  • Points may list a retail price of $9, but this does not mean points are worth $9. It has been widely reported timeshare points are worth nothing.
  • You don’t have to give up a deeded timeshare for any reason,
  • If you insist on 24 hours to review documents, you can still buy tomorrow.

Diamond members involved in the 2017 Arizona Attorney General’s investigation report that the Arizona AG’s office received over 900 complaints accusing Diamond of violating Arizona’s Consumer Protection laws. Diamond settled for $800,000 and was issued an Assurance of Discontinuance, essentially keeping Diamond under state supervision for six years.

We all actually liked Diamond Resorts and enjoyed using our points. We had built up trust over the years adding to our points. We feel 81 of a company’s highly loyal members, reporting similar to identical complaints, is proof. The fact that Diamond has dismissed us all as misunderstanding is telling. Bear in mind that we are only banding together as Platinum members. There are many similar to identical complaints reported by Silver, Gold, and lower level Valued members.

T-Shirts will be on Sale for $25 to help defray signage expenses.

Thank you Charles Thomas for being our Voice!

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/

If you are able to join them or are in the area, please go along and give them your support, for those of us unable to attend, we will be with you in Spirit. We also look forward to publishing your report on the protest.

That’s it for another week, the weekend is upon us and it is time to relax, have a great weekend and join us again next week.


The Tuesday Slot: Diamond v Aaronson Trial

Welcome to another edition of The Tuesday Slot, today Irene Parker reports on days 2 and 3 of the Diamond v Aaronson Law Firm trial, which ended 3 days earlier than expected with a settlement.

Yesterday Inside Timeshare published the article about the Modern Honolulu Hotel and the redundancy of workers, this has already prompted many comments from our readers. The one factor they all share is their disgust at the lack of compassion and sheer greed of Diamond Resorts. Well, this is a fact we are all too well aware of at Inside Timeshare, as our “Nightmare on Timeshare Street” stories have shown.

So now for Irene’s report on the trial that has kept our readers in suspense.

Diamond Resorts v Aaronson Law Firm Trial

Lawsuit Resolved by Settlement

Anatomy of a Timeshare Trial:  A Summary

By Irene Parker

May 7, 2019

Day 1: https://insidetimeshare.com/fridays-letter-from-america-48/

The lawsuit Diamond Resorts filed against Austin Aaronson resolved by settlement Thursday, May 2nd on day three of what had been anticipated to be a six-day trial.

The crux of the lawsuit seemed to focus on a man in a grey suit that appeared in a video on Austin Aaronson’s website alleging that Diamond misappropriated maintenance fees. Diamond Resorts owns 10 to 15% of outstanding points. Currently, there are over a billion points outstanding. Members own approximately 85% of the outstanding points. Mr Charles Meltz, attorney for Mr Aaronson, presented the following figures:  

Member assessments budgeted: $141 million

Actual member assessments paid: $146 million

Developer assessments budgeted: $8.6 million

Actual developer assessments paid: $4.8 million

Plaintiff’s witnesses included Steven Wolf who testified that he conducted a forensic examination of 120 Diamond members who had stopped paying loans and maintenance fees. Diamond sells timeshare points as Collections. Diamond’s US Collection, Hawaii Collection and Diamond Resorts International Points were examined, in addition to an examination of maintenance fees and Club Fees that had not been collected.

Each group was broken down into three periods of time:

  • Period A consisted of the period of time from when a Diamond member had retained Austin Aaronson, going forward to July 31, 2018
  • Period B 30 days prior to retaining Mr Aaronson, and
  • Period C, the period of time beyond 30 days, prior to retaining Mr Aaronson.

For example, concerning the US Collection:

Period C beyond 30 days: $242,365,904 in uncollected funds

Period B 30 days prior to retaining Mr Aaronson: $295,455 in uncollected funds

Period A from the time Mr Aaronson was retained: $2,365,904

Total for the four groups in uncollected funds: $4,578,838

Judge Dalton asked if this amount had been reduced to summary judgment. It had not. He ruled that this amount was speculative.

Plaintiff’s witness Steven Wolf is with Capstone Advisory Group, LLC

http://www.mondaq.com/p/873000/Steven+Wolf/Capstone+Advisory+Group%2C+LLC

Mr Wolf’s firm was paid $250,000 for the forensic analysis and $475 per hour to observe the trial from 10 a.m. to 5 p.m. April 30 and May 1 through his testimony that continued through Thursday morning May 2.

Three former Diamond members testified as witnesses for the Plaintiff.

Witness 1 testified that buying additional points did not improve availability. He had purchased a total of 26,500 points. Diamond had sued witness 1 for $170,000, which included arbitration fees. The judgement against witness 1 was wiped clean in exchange for his testimony. Witness 1 confirmed that he was aware of Mr Aaronson’s website that stated the firm had leverage over Diamond resorts due to misappropriated maintenance fees and a breach of fiduciary duty.

Witness 2 testified on behalf of his mother about his contacting Aaronson Law Firm and that he was told Aaronson Law Firm had leverage over Diamond because Diamond was not handling maintenance fees correctly.

Witness 3 was role played, reading a prior deposition. The wife had testified at an earlier deposition. Her husband was retired Army, 100% disabled, exposed to Agent Orange. He suffers from PTSD. She testified that they went to a Branson sales centre and purchased 3,000 points for $16,030.  They wanted to learn how to use the system but were told to come back within 90 days for an orientation. They attended an orientation in November 2015. At the orientation, they were told by Branson sales agent Kimberly that they had not purchased enough points. They ended up buying 27,000 additional points for $72,850 which they could not afford.

This brings to five, the number of Agent Orange disabled veterans harmed by their decision to purchase Diamond points:

  1. 70% Disabled Agent Orange exposed Army Veteran George Yamada who reported he purchased Diamond points as an investment. George is a pension administrator. https://www.opednews.com/articles/Let-s-Honor-our-Veterans–by-Irene-Parker-Fraud-180908-59.html
  2. A 100% disabled veteran, up-sold by a Diamond sales agent Inside Timeshare has received 21 complaints against. This veteran was issued a $170,000 1099 C after his loan was terminated. We pointed him in the right direction so his CPA could resolve the 1099.
  3. Leo Gomez was told he must switch from Premier Vacation Club to US Collection because his resort went bankrupt. Leo only had 30 days left to live when he contacted me, suffering from pancreatic cancer. He did not call to complain. He wanted to know what he could do about the loan. It was not true Leo needed to switch from PVC to US Collection. I own the same points. Leo was 100% Agent Orange disabled. His last words to me were, “I want my story told.” Leo earned two Purple Hearts. https://www.opednews.com/articles/A-Fourth-Agent-Orange-Vete-by-Irene-Parker-Fraud-180917-513.html
  4. A 100% disabled Agent Orange veteran earned a Purple Heart because he had been shot in Vietnam. His dispute has been resolved.

These veterans put their life on the line to protect me. I will do all I can to do my part to reform timeshare because of the 806 families who have contacted Inside Timeshare, 103 veterans and active duty service members. Five Agent Orange veterans so stressed because they purchased too many timeshare points are five Agent Orange disabled veterans too many.

Attorney Charles Meltz asked about the likelihood of someone age 88 meeting the obligations of a ten-year loan.

Diamond’s attorney Richard Epstein of Greenspoon Marder responded,

“Are old people allowed to take vacations?”

This comment follows recent publications describing how the Lusk family, nearly 90, were sold $150,000 worth of timeshare points, as reported by USA Today and Diane Burkhardt’s father sold $250,000 worth of Diamond points between the ages of 86 to 88, after Diamond refused to take back the timeshare that her father had purchased and paid for free and clear at age 85, reported by Consumer Affairs.

Inside Timeshare has heard from way too many seniors who purchased a timeshare from several developers. These seniors are stressed beyond words. Most have maintained a high credit score their entire life, now bracing for timeshare foreclosure. They signed off on high-interest rate loans and sometimes higher interest rate credit cards.

Seniors don’t need this.    

Lawsuit details:

Diamond Resorts International Inc, Diamond Resorts U.S. Collection Development, Hawaii Collection Development LLC, and Diamond Resorts Management Inc, filed a lawsuit against Austin N. Aaronson and Aaronson, Austin, PA.

Case No. 6:17-1394-ORL-37-DCI

Attorneys Richard W. Epstein, Jeffrey A. Backman, and Olga M Vieira of Greenspoon Marder LLP are plaintiffs’ attorneys. Mr Aaronson is represented by Charles J. Meltz of Grower Ketcham, Eide, Telan & Meltz, P.A.

As reported by ABA Journal January 30, 2018:

Diamond Resorts had claimed Aaronson and his law firm solicited timeshare members in an advertising campaign that weaves a false narrative, causing timeshare members to stop contract payments and subjecting Diamond Resorts to baseless arbitration proceedings.

Aaronson had claimed his firm’s advertising was not false or misleading because it constituted opinion or puffery.

http://www.abajournal.com/news/article/judges_refuse_to_toss_suits_claiming_law_firms_interfered_with_timeshare_co

Mr Meltz, attorney for Aaronson, reported how Diamond maintenance fees had more than doubled from 2007 to 2015 from $.07 per point to $.145 per point and that there is no secondary market for Diamond points.

After Thursday’s lunch break, Judge Dalton would not allow Diamond’s next witness to testify. After a consultation, attorney Richard Epstein announced that they had reached a settlement. He then asked Judge Dalton to instruct me not to report details of the settlement. Judge Dalton kindly said to me that I could report that the lawsuit was resolved by settlement.

Two additional Plaintiff witnesses had testified. The first was Kathleen Wheeler, who serves on several Diamond Resort Boards. She is one of four asset managers. The second was Lisa Levere, VP of Operations and Financial Services. Both testified as to the audited care and attention taken to ensure maintenance fees are not misappropriated. Due to the settlement reached, the defence did not have an opportunity to call any of their witnesses to support their allegations that Diamond misappropriated maintenance fees. I was looking forward to hearing how witnesses called by the defence were to support their claims.

I was employed by CASA, Court Appointed Special Advocates for children in foster care. For three years I wrote court reports and edited our volunteers’ CASA reports. I attended all hearings and trials. I miss Family Court, so I have to admit I am a courthouse buff. Following are the trials remaining for the rest of 2019:

Westgate v. Mitchell Sussman, Esq. – 6:17-cv-1467 (MD FL)

July 1, 2019 trial before Judge Dalton (cross-MSJ’s pending)

OL v. RHA 17-cv-1542-Orl-31DCI (MD FL)

August 5, 2019 trial before Judge Presnell (cross-MSJ’s pending)

Wyn v. Totten Franqui Law Firm 9:18-cv-81055 (SD FL)

September 10, 2019 trial before Judge Middlebrooks

I will be there

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, Inside Timeshare and our readers really appreciate you giving up your valuable time to attend the hearing and covering this story. One thing is certain, Inside Timeshare will continue to report on Diamond Resorts and any other timeshare company, we do this in the interest of our readers and all consumers. We make no apology about it and do not really care if it upsets the industry!

If you have any comments on this or any article published, please use our contact page, we welcome and value them.

Have you had a “Nightmare on Timeshare Street” if so, we would love to hear from you. If you would like your story to be shared with our readers lets us know and we will be happy to publish.

Start the Week: Hotel Employees to be Laid off in Hawaii

Welcome to the start of another week in the world of timeshare, unfortunately, we begin with bad news. It has been reported that around 78 employees have been given notice at the Modern Honolulu Hotel, a Diamond Resorts owned property.

Modern Honolulu

The Modern Honolulu is a full-service hotel, purchased by Diamond Resorts in April 2018, it is also one of the 21 hotels and timeshares in the network of Diamond Resorts managed or affiliated properties internationally.

Diamond has expressed an interest in either partially or fully converting the hotel into timeshare use. They have also planned on reducing guest services such as daily room service, banquets, meetings and catering. It has also been reported they have not yet received any timeshare registration approval from the Department of Commerce and Consumer Affairs or any of the relevant permits required to build or renovate hotel rooms for timeshare use.

The layoffs will account for around 30% of the workforce, it will impact many departments such as housekeeping, banquets, pool, in-room dining, reservations and of course the bar, restaurant and kitchens. These workers are being represented by the trade union UNITE HERE Local 5.

According to Gemma Weinstein, President of Unite Here Local 5, “Timeshares have shown over and over again that they hurt Hawaii more than they help. They pay less than hotels, the work is harder, and they provide less jobs. They negatively affect the guests’ experience in Hawaii by charging exorbitant maintenance fees while cutting guest services. Companies like Diamond Resorts are bad for Hawaii.” She also pointed out that this is going to destroy the lives of 78 families.

One worker a housekeeper at the Modern Honolulu expressed her fears that this was going to hurt her family, she holds down three jobs to support them, but the job at the Modern is the only one that provides family medical coverage.

It is also noted that this decision comes very close after Diamond Resorts CEO Mike Flaskey informed Fox News that “his company is benefiting from the Trump administration’s tax cuts and deregulation.” It was also reported that Diamond Resorts in March “failed to issue paychecks to workers on time, resulting in workers incurring fees and penalties.”

Readers of Inside Timeshare are very familiar with the stories of the sales tactics of Diamond Resorts, with the incessant preying on the elderly and the many disabled service veterans we have highlighted. This is just another in the sorry tale of a company that seems to have no morals, just an insatiable appetite for money.

We will keep you updated as and when more information comes in, follow the links below for more on this story.

https://www.hawaiinewsnow.com/2019/05/03/dozens-employees-be-laid-off-waikiki-hotel-converts-timeshare/?fbclid=IwAR1pEMhF0qwr2FAe81n5c5xCUr-f_az49719GUkbvC0Q3F4FWzePHHVwTmY

Tomorrow we continue with the Diamond v Aaronson trial where Irene Parker reports on days 2 and 3 and the early ending of the trial. So join us again tomorrow.

Friday’s Letter from America

Welcome to another edition of Friday’s Letter from America, this week Inside Timeshares Irene Parker reports on day 1 of the trial she attending in Orlando, Florida. This is a case between Diamond Resorts and Aaronson Law Firm, this is yet another law firm being taken to court by the timeshare industry.

So unlike our usual Friday editions, we will forego news from Europe and go straight to Irene’s report.

Diamond Resorts v Aaronson Law Firm Trial

Day 1 of 6: Jury Selection and Opening Arguments

Anatomy of a Timeshare Trial

By Irene Parker

May 3, 2019

Having recently experienced Part I of a deposition that lasted six hours against another law firm that provides timeshare exit assistance, I was motivated to attend a six-day timeshare trial in Orlando District Court that began Tuesday, April 30. The cost of a deposition or a six-day trial is staggering. Ultimately, the timeshare member pays. It’s too bad we can’t just sit down and talk to each other, but I guess attorneys have to make a living.

Diamond Resorts International Inc., Diamond Resorts U.S. Collection Development, Hawaii Collection Development LLC, and Diamond Resorts Management Inc, filed a lawsuit against Austin N. Aaronson and Aaronson, Austin, PA.

Case No. 6:17-1394-ORL-37-DCI

Attorneys Richard W. Epstein, Jeffrey A. Backman, and Olga M Vieira of Greenspoon Marder LLP are plaintiffs’ attorneys. Mr Aaronson is represented by Charles J. Meltz of Grower Ketcham, Eide, Telan & Meltz, P.A.

As reported by ABA Journal January 30, 2018:

The Florida suit was filed against Orlando lawyer Austin Aaronson and his firm Aaronson, Austin. In a Jan. 26 ruling, U.S. District Judge Roy Dalton Jr. of Orlando tossed RICO and malicious prosecution claims by Diamond Resorts but allowed claims for false advertising under the Lanham Act, tortious interference with contract, trade libel and deceptive trade practices.

Diamond Resorts had claimed Aaronson and his law firm solicited timeshare members in an advertising campaign that weaves a false narrative, causing timeshare members to stop contract payments and subjecting Diamond Resorts to baseless arbitration proceedings.

Aaronson had claimed his firm’s advertising was not false or misleading because it constituted opinion or puffery.

http://www.abajournal.com/news/article/judges_refuse_to_toss_suits_claiming_law_firms_interfered_with_timeshare_co

Opening day started with jury selection. Six of the eighteen potential jurors reported a negative timeshare experience:

  1. Lots of pressure from a timeshare presentation in the 80s,
  2. Purchased Marriott 30 years ago, lots of pressure,
  3. Westgate was difficult to exchange and was unsellable. An attorney was contacted. The attorney said Westgate is not sellable. Timeshare is a waste of money.
  4. Negative experience,
  5. Agents are pushy and don’t give up,
  6. An engineer said he had a negative bias.

Judge Dalton explained that Plaintiffs are required to convince the jury that Austin Aaronson is guilty by a preponderance of evidence. Criminal trials require a stricter standard – beyond a reasonable doubt.

The four claims against Austin Aaronson are:

  1. False advertising that harmed the reputation of Diamond Resorts and caused damages,
  2. Tortious interference,
  3. Intentionally publishing disparaging information on a website,
  4. Deceptive and unfair practices.

There are a total of 134 joint exhibits.

Mr Epstein, attorney for Diamond Resorts stated that there are few complaints against Diamond Resorts. He alleged Aaronson accused Diamond of wholesale unsavoury conduct.

Mr Meltz, attorney for Aaronson, reported how maintenance fees had more than doubled from 2007 to 2015 from $.07 per point to $.145 per point and that there is no secondary market for Diamond points. He explained how Diamond Resorts controlled Board of Directors hires Diamond Resorts managers to manage Diamond properties. As to the claim that Diamond misappropriated maintenance fees, both sides will bring in accounting expert witnesses to prove or disprove how maintenance fees were misappropriated.

In a lighthearted moment, Judge Dalton asked one of the Plaintiff attorneys if she was chewing gum. She was. She was asked to leave the courtroom to dispose of her gum.

Judge Dalton instructed the jury not to read newspapers, Facebook posts or blogs about the case. He said in the old day’s reporters attended the trials, but these days they just talk to those who attended as they exit the courtroom. He said he was amazed that when he reads an article about one of his trials, how little of what was reported actually happened in the courtroom. I was proud that Inside Timeshare will be in attendance for the duration of the trial taking copious notes.

Inside Timeshare and our readers just want the timeshare industry to admit that unfair and deceptive sales practices exist on the front end of the sale. I have always said half a problem goes away when confronted, but I doubt this will happen.

I have contacted four timeshare exit providers. Two of the larger firms report receiving 3,000 calls a month from members desperately seeking release from a timeshare contract. These firms only accept 100 to 150 cases as they require a strong case of unfair and deceptive practices. This stay vacationed or else strategy has created a timeshare exit industry timeshare developers want to crush, but Social Media is not going to put this Pandora back in her box. The lack of a secondary market is financially devastating family after family.

Greenspoon Marder contends all is well because Diamond Resorts has 460,000 timeshare members with few complaints. I feel 6,000 families reaching out to just two timeshare exit providers monthly is a real problem. There is no other product that has spawned an entire industry devoted to responding to customers with nowhere to turn, desperately seeking release from unused and unwanted timeshares. Many report they learned they were duped just days or minutes past the rescission period.

In Florida, timeshare division reviewers received 1,600 complaints in 2017 and 1,600 complaints in 2018, mostly about the initial sales presentation, 50% seniors. The AG engaged 42, mostly about timeshare resales. That means 1,600 families annually feel they were duped by a timeshare, there is no secondary market, maintenance fees doubled in seven years for at least one timeshare company, and this is not a problem.

Yes, it is.   

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/

Than you Irene, we look forward to further reports on this trial and I’m sure that all Inside Timeshare readers are hoping that the outcome will be in Favour of Aaronson. One thing is certain, Diamond does not like criticism, but Inside Timeshare will continue to publish the “Nightmare on Timeshare Street” stories of our readers, be they Diamond or any other timeshare company.

In Spain, Diamond has lost in the courts for selling illegal contracts, along with other timeshare companies, many of them are the big players in Europe. Spanish timeshare law is based on the European Timeshare Directives but has been strengthened to protect consumers of unfair, misleading, predatory sales tactics and illegal contracts. It leads the way in Europe and we may see other countries following suit.

If you have any comments on this or any article or have a “Nightmare on Timeshare Street” story of your own, then use our contact page and get in touch we look forward to hearing from you.

Have a great weekend and join us again next week.  


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.

The Tuesday Slot

Welcome to The Tuesday Slot, this week we have another of our Secret Shopper Reports, coordinated by Pete Gibbes, these articles have proved to be very popular with our many readers. One thing they all comment on is how similar to their own experiences these reports show.

“Thank God It’s April 15 Day!”

For those in the US, the 15 April is the day when many members will receive a tax liability bill if a loan is cancelled. For us, in Europe, we find this very strange, especially for loans linked to timeshare purchases. At least our European members don’t get a tax bill when their loan is cancelled.

Inside Timeshare has directed many back to their CPA to dispute this tax bill for “phantom income” as the former has not been enriched by the cancellation of the loan as they have retained nothing of value.

Now before we go on with our Secret Shopper article, a little news on the legal front from the leading European law firm in timeshare litigation, Canarian Legal Alliance.

With the Easter Holidays now upon us, the lawyers at CLA are having a well-deserved break, especially after the past two weeks of court cases.

In the past five days alone, there have been 25 trial and 20 sentences issued, many of these were pre-trials, with the judges once again confirming that there was no need for the case to go to a full trial. The reason being, these cases are based on documentary proof, they are based on contracts which according to Spanish timeshare law contain illegalities. This is obviously very damaging for the timeshare companies but very good news for the clients.

So to recap, in the past 2 weeks, there has been a total of 26 victory sentences with 24 against Anfi del Mar, all heard in the Court of First Instance, San Bartelomé de Tirajana, Gran Canaria. With 2 High Court, Santa Cruz de Tenerife against Silverpoint. The total amount awarded is a staggering 931,229€ plus all contracts being declared null and void.

Now for our Secret Shopper Report.

How do you define a “Bad Apple” Sales Agent?

It’s in the Eye of the Beholder

By Secret Shopper

Tuesday, April 16

We have all heard stories of outright deception and deceit employed by timeshare salespeople. Many complaints are from those who were convinced to give up their deeded timeshare week and convert to the points-based timeshare.

Fixed week timeshares may lack the flexibility of points, but if you like knowing what you own, a guaranteed stay may mean more to you than flexibility. With a points program, you can stay more or less than a week and book other resorts at other times of the year. However, many have complained that after giving up their deed, they were not able to access even the resort they had vacationed at for years.

Timeshare companies will say that salespeople who use scare tactics represent only a few “Bad Apples” so are not typical. Timeshare Accountability Group has heard from more than a few members that were frightened into giving up their deed, told their children will be burdened because of their parent’s decision to buy a timeshare. We’re not lawyers, so we defer to timeshare attorney Mike Finn to fill us in on what happens when you inherit an unwanted timeshare. It’s a topic many are interested in, especially as baby boomers age.

Some of the tactics sales agents use to coerce an “owner” to give up a deeded timeshare week to become a “member” are downright predatory and constitute practicing law without a license. This is what happened to Phyllis, age 67, in her own words (unedited):

I am a victim of fraud. I was asked to attend a breakfast to talk about upgrades on a timeshare I own. I was told it would last only 55 minutes. 4 highly pressured sales people took turns on me and held me for 7 hours, bouncing me into 3 different rooms. I told them I didn’t want it and that I already owned the timeshare over and over again. They said I have to buy into the new and I own my timeshare forever, and that I could never get out of it. They said my timeshare went bankrupt and I had to invest with them (the new company) or they would go after my children for payment. I had a panic stress disorder attack. I was tired and hungry.  I was tired. In order to get out of there, I signed under dearest. I am a senior citizen 5 feet tall women and he is a 6 feet tall man standing over me stating he was a child of GOD and he can help me then said to me “I am a friend I can tell you the best thing to do only if I signed”. He added the BARCLAYS BANK CREDIT CARD. I was misled to only use the card for shopping that my points would go up and maintenance fees would go down. I never received the card. I never used the card. Now I have a trial date May 8, 2018, to pay their lawyers in the amount of $3446.04. DRI sent a letter stating the timeshare went into foreclosure and I am out of the contract. Since the timeshare and the bank are together I should be out of paying the bank as well? I need help. Could someone give me advice? Can I get someone to go with me and represent me? I am afraid and stressed. Please email me on what I can so as soon as possible. Thank You.

(Submitted to Inside Timeshare)

Our Secret Shopper Experience        

In mid-summer 2018, we went on a “mandatory” update after attending a Diamond Resorts event in Virginia Beach. We are well versed in timeshare methods and had our “ears up” to catch any of the standard tactics they might use to persuade us to convert our two deeded weeks into points.

Despite being ready for the worst, I will openly admit that our salesperson never told us any OVERT lies during our two-hour presentation. He was friendly, polite, and had a long history with Diamond Resorts at various locations throughout the country. He told us where he lived in Virginia Beach (a very expensive waterfront area).  He did not lie to us.

That being said, his words were very carefully chosen, and of course, what he didn’t tell us was even more carefully chosen. At a minimum, his pitch was misleading, confusing, full of half-truths, and in my opinion quite diabolical.  When someone commits a “material omission” is it a lie? That sounds like a question for attorney Mike Finn.

Let’s see how the game is played

Our salesperson pushed two major discussion points:

1 – Vacation Options:

Our sales agent demonstrated what would happen if we gave up our deeded weeks and purchased 5,000 points. He showed us a world of amazing Diamond Resorts locations on his computer screen. He explained these resorts would be available to us with the 15,000 points in total we would have if we gave up both deeds.

He showed us availability on HIS computer. He said things like “Here, let me show you on MY account” and “the system shows ME availability for these vacations for only 3,000 points… look at all of them!” Yes, many were available on many different dates. Wow, the world would be our Oyster.

Now, all that is technically true, but he presented it in a manner to imply that if we converted to 15,000 non-deeded points, we would see the same availability and options we were shown… but he never actually said that. His online Diamond account is a “Special Sales Double Platinum Account” (a descriptive term as there is no such thing as a Double Platinum loyalty level). It shows everything in the system and probably quite a bit more, but did not display what we would have access to using the proposed 15,000 points (for two weeks).

If the buyer is not allowed onto the booking site until after the contract has been executed, you would not see actual availability at your loyalty level until after the rescission period had passed.

If you knew what to listen for, the agent chose his words incredibly carefully to sidestep the issue. This would have misled us if we were not informed shoppers. In my opinion, it was a shameful sales tactic that almost anyone would likely fall for.

I know that none of the locations available under his sales account would be available to someone with only 15,000 points, especially summer weeks in Virginia Beach, which he was asking us to give up. He repeatedly showed us that Turtle Cay was only 6,500 points for a week vacation in July… which is accurate… if you are one of the handfuls of people in the US with status and connections to get access to that level of availability. It is unlikely at the Silver loyalty level we would ever be able to stay there again even if we were to convert to points. He didn’t mention that.

He also gave us pamphlets describing Diamond Dream Vacations (DDV), also known as Holiday Vacations, which we could take advantage of anytime for 3,000, 7,500, or 15,000 points. Each DDV included two airfares at top-notch accommodations. One package included four days at Diamond’s Mystic Dunes resort along with a five day Caribbean cruise for only 7,500 points.

For those not familiar with points, maintenance fees for Silver level are about $.20 per point so if the Dream Vacation requires 7,500 points, the trip would cost $1,500. Multiply 7,500 points times $.20. Always do your timeshare math. Four nights at Mystic Dunes, two airfares and a five day Caribbean cruise for two for $1,500 is a GREAT deal! It even included rental car discounts.

After submitting this article, Pete explained that these great deals really do exist. I thought they were completely bogus. He said that since these packages are for the purposes of selling points, they are available to anyone who purchases as a “sweetener” or to existing members in an effort to sell more points.  

Apparently, tremendous bargains are always promotions. Our sales agent never said Dream Holidays were promotions that would require a sales session. He said “These packages are available anytime” to use his exact wording. Again, he didn’t lie… he just didn’t present an important fact.

2 – Financial Justification:

He presented a very complex 10-year financial analysis showing how it would cost us far less over ten years if we converted to points, even though he wanted us to drop more than $75,000 for 15,000 points, which would have included giving up our two deeded summer weeks. He did not know that I used to be a financial analyst with IBM. I worked on billion-dollar transactions. His spreadsheet was malarkey, and even I couldn’t follow it. Once again, he was not lying; his analysis was just crappy… which is quite common as financials go. Of course, we were not given a copy of any of his figures. When we tried to take it, he whisked it away.

All told, I doubt other salespeople would consider our sales agent a “Bad Apple” as he didn’t tell any lies. He did not mention any bogus programs (e.g. “you can pay maintenance fees at $.30 per point”) or other false claims. In fact, our sales agent is probably a shining example held up for other salespeople to emulate: nice, amiable, well dressed, 6.5 feet tall with 12 extra teeth in his smile.

After we firmly said no and started to leave, we were sent to a manager to “check out.” This person was quite reprehensible. He showed us further discounts off the $75,000. He spoke about the “investment” we would be making, what our “Equity” would be out of the gate, and how our “Equity” would grow over time. Our “investment” would only go up in value.

I got quite angry and blew up at him at this point, calling him out directly on those misrepresentations. His eyes flew open wide as he backtracked, “When I say Equity I mean your equity in future vacation time and how your vacation time would become more valuable as you learn how to use the system wisely.”

He claimed he never said he was speaking about a financial investment and not to put words in his mouth but he actually said these things with no qualifiers until he was pressed to do so . My wife loudly told him off and we got up to walk out. He asked why she was being so rude. In a sick sort of way, it was funny, really.

As our experience shows, a “Bad Apple” is in the eye of the beholder.

Contact Inside Timeshare if you have a story to share. Our standard disclosure is that we know there are honest sales agents selling the product honestly. Deceptive agents harm honest sales agents too. Our concern is the number of agents “pitching heat” to sell points could lead to a decline in sales unless acknowledged and addressed.

Contact Secret Shopper Coordinator Pete Gibbes through Inside Timeshare if you would like to become a Secret Shopper.

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 to our secret shopper and to Pete Gibbes the coordinator for this week’s report, these do help others to be aware and of what to expect when they attend any presentation. As the old saying goes,  “To be forewarned is to be forearmed.”

One thing is certain, purchasers of timeshare in Spain do have the full protection of the law, misrepresentation of the product is not tolerated. We also know that many other European countries are reviewing their own timeshare laws in accordance with EU Timeshare Directives designed to protect consumers, many are also looking to Spain and may just adopt their legislation. For too long the timeshare companies have had the upper hand, but the tide is turning.

If you have any comments or would like to share your experiences use our contact page, we would love to hear from you.

Do you have a problem with your timeshare membership, or need to know about any company that has contacted you or you have found?

Again use our contact page and we will get back to you and point you in the right direction.

The Tuesday Slot: Secret Shopper Report

Welcome to The Tuesday Slot, this week we welcome back Laurie Sabbagh with her second Secret Shopper Report, this was edited by the Secret Shopper Coordinator Pete Gibbs, with the introduction by Irene Parker. But first some Breaking News from the Spanish Supreme Court in Madrid.

British clients being represented by lawyers from Canarian Legal Alliance has just received the news that the Supreme Court have found in their favour against Club La Costa Leisure Limited. Initially their case was heard at the Court of First Instance in Fuengirola, Malaga, unfortunately this court found in favour of Club La Costa.

The CLA lawyers promptly lodged an appeal with the High Court of Malaga, this court overturned the First Instance verdict, finding in favour of the clients. Club La Costa launched an appeal with the Spanish Supreme Court in Madrid.

The Supreme Court rejected the case and the verdict of the Malaga High Court stood firm. The contract was declared null and void with the client being awarded over 28,000€ plus legal fees and legal interest.

This is a significant case as the offending company was Club La Costa Leisure Limited, a UK registered entity. This may just bode well for other similar contracts, more news on this legal aspect as and when we receive it.

The Team at Canarian Legal Alliance

Now for our Secret Shopper Report.

My Secret Shopper Report

By Laurie Sabbagh

Edited by Secret Shopper Coordinator Pete Gibbes

March 12, 2019

Introduction by Irene Parker

Inside Timeshare has received many complaints from timeshare members told they need to switch to a different program within the same company because they should not have purchased what their last sales agent sold them. In other words, sales agents within the same company sell against each other.

Heartbreaking is the experience of Navy veteran Roy Simmons and his wife Lillian Simmons. A retired letter carrier, living on a letter carrier’s pension, he ended up switching back and forth between programs until he reached $2,700 a month in Diamond Resorts loan payments. The foreclosure process took a tremendous physical and emotional toll on the family. They sought legal advice from a bankruptcy attorney as Mr. Simmons felt he had no choice but to charge loan payments to credit cards. Roy and daughter Angela’s YouTube explains how this happened. In her research Angela discovered the FBI website, which is why she expresses her opinion that her mom and dad’s allegations meet the FBI definition of white-collar crime. Roy and Angela’s February 26, 2018 YouTube:

Roy and Lillian Simmons, ages 69 and 70, Minnesota residents published March 6, 2018

Arizona representatives proposed House Bill 2639 offering protections for timeshare consumers. My experience over the last three years, reading emailed complaints and listening to 730 families report unfair and deceptive timeshare sales practices, has left no doubt in my mind as to the need for protection. I wrote an article, “Timeshare Foreclosure Explained to Lenders.” that foreclosed members can provide to future lenders. The article offers support to my assertion, listing just some of the Attorneys General investigations and settlements and lawsuits. http://insidetimeshare.com/the-tuesday-slot-18/

Bill sponsor Representative Shawnna Bolick and others who supported Arizona HB 2639, thank you. The timeshare lobby ARDA opposed the bill.   

Laurie Sabbagh’s Secret Shopper Report

I can’t believe it has been two years since my first Secret Shopper report was published March 17, 2017. I attended an update this month in Arizona thinking it had gone well until I was informed that the need to switch from my current Hawaii program to the US mainland program was likely proposed under false pretenses, based on the opinion of an ocean engineer. I want to state at the outset that I enjoy my Diamond points, find good value and absolutely love Sedona. As they say, God created the Grand Canyon but He lives in Sedona.

My first Secret Shopper report:  http://insidetimeshare.com/friday-review-news-across-ocean/

Diamond sales agent Paul said that he had worked in the industry for 22 years and had previously sold timeshares in Las Vegas. Paul and a second sales agent, Justin, asked me about the Hawaii special assessment I paid for the Point at Poipu water intrusion damage, which all right-to-use point owners and deeded week owners were assessed after Diamond bought out Sunterra. I told them that my portion of the assessment was much smaller than those of deeded week owners, who ended up being assessed about $5,800 per week owned.

Later Paul tried to convince me that the beach erosion problem at Ka’anapali Beach Club (one of four resorts part of Diamond’s Hawaii Collection), is putting me at risk for another special assessment. Paul further told me that if I were to switch to the US Collection, I would never be charged a special assessment because the US Collection is part of a trust. He insisted that this provision is in writing, but I was not provided documents to backup that claim.

One of our member-sponsored Diamond Advocacy Facebook members is an ocean engineer. He explained why beach erosion is not the responsibility of a resort, but the responsibility of the state or federal government. In a RedWeek post, a Diamond member had been advised to switch due to a 2020 special assessment:

My suggestion would be to ask Diamond for documentation to support the additional charges. For instance, it is reasonable to ask if the funding is for future flood protection that might be afforded by a beach nourishment project. If the assessment is intended for a beach nourishment project, it is likely that arrangements are in place for cost sharing between local stakeholders and government entities.  The cost and scope of government efforts are a matter of public record, and learning the particulars is typically as easy as calling the project managers.

In addition, 2020 is too far out to predict with any sort of fidelity. Concrete financial planning numbers at this stage are unlikely. I have not heard of a federal project in Hawaii. It could be state, but most major beach nourishment projects are underwritten in part by the federal government. I have not heard of a state paying for damages from a flood.  The member needs to know what the assessment is for, in more detail than just beach erosion. Is it for protection or for damage that has already occurred? One is flood damage expense, the other is flood protection afforded by beach nourishment projects.

Justin told me that Diamond bought out Sunterra but I was still an owner of Sunterra points. Justin said that I could apply my equity in Sunterra to the purchase price of 6,500 additional US Collection points to get me to the Silver level and bring the price per point of $9.33 to about $4 per point. We went back and forth. The last offer was for 2,000 points for $5 per point. I declined.

Later Quality Assurance representative Mark told me he used to be with Sunterra until Diamond bought them out, and my Sunterra points were automatically converted to Diamond’s “The Club” points, so I was indeed a Diamond member. This contradicted what Justin told me.

Mark offered me 20,000 points to be used within 24 months at $3,995. He said this offer is only valid to Diamond members. First, I thought it odd a Quality Assurance person was trying to sell me points, and second, the Sampler is a trial product, so available to anyone.

As I said in the beginning, I use and enjoy my Diamond points. I stayed a week at the Celebrity House in Sedona, two bedrooms, two baths, full kitchen, using “Point Saver” at 8,250 points. With all expenses considered, it averaged $260 per day. Best Western in Sedona during the same period was $300 per night for a standard room so this ended up being a huge bargain for me.

I am disappointed that the pressure to sell points is so great that agents feel forced to misrepresent. I feel Diamond has a product, and when sold properly, members benefit. It must be the pressure to produce sales that prompts sales agents to mislead in order to make a sale, but that is just my opinion.

We appreciate Laurie’s second Secret Shopper report.

Timeshare is a product in which the sales agents demand the buyer buy the same day, even though most have no intention of buying the product prior to the day of purchase. Unlike buying a car, there is little frame of reference, especially for first time buyers. Buyers usually sign a perpetual product without even having had a chance to use the product, except to stay at a resort property. Numerous members have reported not being allowed onto the booking site until after the rescission period has expired.

Learn to ask the right questions. Unfortunately, it’s advisable to not believe a word a timeshare sales agent says, based on my experience and the experience of many.

These are self-help groups we feel are not industry influenced. Social Media is here to stay, so consumers can now share experiences. Contact Inside Timeshare if you would like to share your timeshare experience, good or bad.

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 to Laurie, Pete and Irene for your efforts with this weeks article, we certainly look forward to more Secret Shopper Reports.

The breaking news today from the Spanish Supreme Court was very welcome news indeed, what a start to the day.

If you have been contacted by any company or found one on the internet or advert and want to know if they are genuine, use our contact page and we will help you find out.

Do you feel that you were mis-sold your timeshare in Spain and would like to know if you have a claim, then contact Inside Timeshare, we will check to see if you have a valid and viable case and point you in the right direction. This service is done free of charge and under no obligation.

The Tuesday Slot: Manifesto Part 1

After we published our interpretation of Florida HB 435, Inside Timeshare received the following Manifesto written by an Industry Insider. Part I examines the history of exit companies. Of note is the mention of the role private equity plays in today’s timeshare industry. Private equity firms played a major role in the junk bond debacle of the 80s and the subprime mortgage crisis of the 90s, so it is of no surprise to find private equity firms directing timeshare today. A junk bond or a subprime mortgage had some value for the borrower, but a timeshare contract, often adding up to $100,000 or more, is worth next to nothing should the borrower need to sell.

We look forward to Part II in which today’s author hopes to, “draw public comment for a new Business Proposal to remedy and resolve the issues.”

Florida HB 435 addresses timeshare exit services

https://www.flsenate.gov/Session/Bill/2019/435/BillText/__/PDF

MANIFESTO

Timeshare Exit Companies and the Future of Timeshare

WHAT DO THIRD PARTY TIMESHARE EXIT COMPANIES (“TPE”) TELL US ABOUT THE FUTURE OF THE TIMESHARE INDUSTRY?

Part 1.

By Anonymous.

Our Questions;

 

  • Are Third Party Exit (“TPE”) companies selling a product that is largely undeliverable?
  • If the product is undeliverable are all remaining TPE’s simply exhausted Ponzi schemes awaiting implosion and bankruptcy?
  • How many Customers in the last 12-48 months have paid thousands of dollars for services yet remain unresolved, un-exited, un-refunded, and are still on the hook for their timeshares?
  • How large is this Exodus?

 

In this manifesto we shall attempt to break down into layman’s terms the causes and effects on the Timeshare Industry at the hands of the so-called third-party timeshare exit companies or “TPE’s” and eventually in Part Two, draw public comment for a new business proposal to remedy and resolve some of the issues.

We shall also reminisce at some of the more notable examples of earlier ill-fated timeshare exit businesses, all of whom reveal the starkest of similarities. In doing so, we will also be commenting on the chest-beater from the Industry in the form of a Sept 17th 2018 public release. Sadly, we shall also be debating the unconventional elephant that still sits in the room.

  • Why is there such resistance to owners exiting a Timeshare?  
  • Why is there no organized, unionized, “brand supported” exit & secondary market offering that satisfies the disposal needs of owners who are aged, retired, unwanted beneficiaries of, no longer travel or are on Federal poverty levels?  

 “On Sept 17th 2108 the Timeshare industry, the American Resort Development Association (ARDA) and ARDA Resort Owners’ Coalition (ARDA-ROC), have united to stop the misconduct of those deceiving timeshare owners into paying for illusory timeshare exit services through fraudulent means”.

I applaud the Industry on the use of the word “illusory’ as defined as: based on illusion; not real.” In what appears to be a long overdue case of karma, the timeshare industry is altruistically defending its long suffering, desperate “exiting and cancelling” owners from paying for illusory exit & cancellation services.  

(We don’t know who is more naïve; the Resorts for expecting that no one can ever get out of a Timeshare, or the deluge of Owners who paid upfront to try to get out!)

We speculate that in the last 36 months a crescendo aggregating to millions of owners had the audacity to want to end their Timeshare experience and as a result many hired Lawyers and Advocates and spent tens of millions of dollars in an attempt to get rid of their timeshares. Most of these fees were paid upfront, and most were promised that fees were 100% refundable if the exit contract expires and one still owns one’s timeshare assuming the Lawyer or Advocate is actually still in business!

Customers are asked to pay $7500 or more ‘upfront’ to be represented or advocated. Most marketers claim that there are magical back passages into resorts that take back the timeshares quietly in a forbidden black market open to only the special few. Marketers support this notion by suggesting that if the resorts were to publicly announce that they take back timeshares there would be an immense exodus of cancellations. No present evidence supports this tall tale.  

The Timeshare Industry is familiar with the exiting, canceling or generally getting out of a timeshare scam. As we can see Timeshares are complex and very sticky to get rid of. The Industry continues putting TPE lawyers and advocates out of business and into bankruptcy, yet the Industry cannot find a solution to the real problem – an evident immense Exodus.

Nothing, other than Moses leaving Egypt could be compared to the TPE Companies assault on popular branded timeshare owners in 2015 – 2018. All the major brands had rolled out vacation club programs with all types of new generation upsells and exchanges. Publicly traded companies in the hotel, recreation, leisure and timeshare industries had begun curiously separating their timeshare divisions into new public companies. Yet at conventions, the Resort Owners, Lawyers and Administrators all reported that their biggest headaches were the Exit firms. Their disruptive activities caused added administration issues, defaults, millions in lost revenues, angry customers all dealing with these flimsy cancellation letters from dozens of Lawyers and hundreds of Advocates interrupting contractual obligations and communication with the customers. They all knew where this would end…owners were paying thousands upfront for services that weren’t going to happen. Owners were routinely signing and notarizing Powers of Attorney to exit companies like they were signing Christmas cards! This wasn’t a cottage industry any more. It was an epidemic that had to be eliminated.

Apollo Global Management, owner of privatized Diamond Resorts (who as Merchant Bankers were possibly the first well-known brand to recognize the sudden disparity in results and the probable cause), began aggressively suing TPE Lawyers & Advocate Company’s in 2015. Apollo has made it known that they are preparing to re-IPO Diamond Resorts

  • The cause; The Timeshare Developer/Owner HOA true concerns are the financial effect that an immense Exodus of Owners and the sudden loss of payment of residual annual fees would have on the bottom line.
  • The effect; The Timeshare Industry has adopted a widely “illiquid” stance based on the capture of customers annual fees. The Timeshare industry survives in a very large part from customers annual maintenance fees.

Where did this idea of how to bilk the Timeshare Industry come from?  

In 2004, Uri Fried, an Israeli businessman and so-called inventor of the Third-Party Exit (TPE) business sent millions of postcards to timeshare owners inviting them to get rid of their timeshares for an upfront fee. Uri had formed over 50 straw buyers LLCs and began transferring thousands of unwanted timeshares per month into his LLCs. For several years Uri’s activity went relatively unnoticed by developers and resorts. Along the way Uri sold timeshares on eBay for $1 thus cementing the perceived market value of second-hand timeshare at one-dollar. None of Uri’s LLC’s ever paid a cent in maintenance to any resorts. Uri ended up serving a couple of years for $1.9m tax evasion.

In 2017 Uri settled all misrepresentation charges with the State of Wisconsin for $132,000 and received a lifelong ban from ever handling timeshares again. None of Uri’s ill-gotten gains were ever recovered.

Uri Fried woke the Industry up to the vulnerability of the Viking Ship LLC exit scam. The Resorts & HOAs were so fragmented. Collectively, they had no clue what Uri was up to. Uri’s customers owned everything and anything. Uri knew he was never going to pay a penny in dues or maintenance, so he stuffed them all into his defaulting LLCs. If the Resorts grew suspicious of the LLC name(s) Uri would simply create new ones.

Eventually the resorts smartened up and unilaterally responded by refusing to honor or acknowledge transfers to certain suspicious names and eventually certain transfer companies. The Developers had falsely believed that some level of organic secondary market had been occurring. As the industry is so hugely fragmented the major developers were fooled for a while.

As we shall see, the Viking Ship LLC model grinds slowly to a halt when the resorts block or refuses customer re-registrations and transfers. However, the TPE’s marketing machines continue “in almost every case” to sell new Customers on getting rid of their timeshares, in order to continue to collect thousands in what surely become ill-gotten fees, thus becoming a Ponzi scheme; whereby new monies pay off older refunds.

After the failure of Uri Fried’s business, an alternative Viking ship business became strongly marketed; Attorneys claiming to ‘cancel’ a timeshare.

On behalf of Owners who retained the firm, Castle Law (and others similar) wrote to the HOA’s and Resorts and in some cases Lenders, a series of scalding, lawyerly stamped, heavily embossed, important looking letters accusing and maligning the Resorts with allegations of much malfeasance, misrepresentation and fraud in the inducement.  

Owners were claiming any or all of the following:

  • Told that this offer is good for today only.  
  • Told that timeshare is in hot demand
  • Told that timeshare is a great investment
  • Told that timeshare – like all real estate will appreciate over time.  
  • Told the timeshare presentation is only going to be 90 minutes.
  • Told the timeshare is in such demand it could always be RENTED for a profit.
  • Told that you are buying pre-construction and this timeshare can be SOLD for a profit after the next “phase.”  
  • Told that this week/resort is such a valuable week to all of the exchange companies that you can trade for “anytime, anywhere.”  
  • Told that this maintenance fee will not increase over time
  • Told you will be attending an “update” to discuss questions (also called a policy change, owners update, etc.… – later it was actually a sales presentation).  
  • Told that this is not timeshare but Vacation Ownership or Vacation Property.  
  • (You) were subjected to high pressure sales tactics or felt that you could not leave the presentation without purchasing timeshare.
  • The timeshare sales agents plied you with champagne (or other alcohol or drugs).
  • The timeshare sales agents assured you, you could cancel if we had second thoughts/buyer’s remorse.  

Attorneys and Advocates, armed with Limited Power of Attorney, filed cease and desists on behalf of owners. Attorneys were demanding that the Resort have no communication with the aggrieved customer (s). Simultaneously, customers were instructed not to communicate with their resort, and to forward any communication from the resort to the attorney or advocate.

It wasn’t long before far less scholarly ‘advocates’ caught on to the jolly wheeze and suddenly millions of timeshare data records were for sale and hundreds of thousands of robo dialed calls an hour were being made to every timeshare owner looking for people who wanted to get out of their timeshares.

Unbelievably, millions of owners wanted out.

In the words of ReedHein dba Timeshare Exit Team CEO & timeshare exit Advocate Brandon Reed;

The reality behind the recent litigation is that resorts are leaving millions of consumers with no other options. Timeshare Exit Team exists because the resorts have created a problem without providing a solution. We hear countless stories from customers who were unable to even give back their ownership. Others have found that their timeshare investment was actually worthless when  they tried to resell it. Owners must have a way to safely and legally end their ownership when it no longer fits their lifestyle. Until that happens, we want to make it clear that we will not be dissuaded from continuing to advocate for consumers.”

Reed Hein are the guys advertising on TV. Estimates show that ReedHein is now the largest timeshare cancellation firm in the USA. We wonder what ReedHein is doing differently from Uri Fried, The Macmillan’s, ACC and other notable predecessors.       

Ok, why isn’t there a secondary market for Timeshare?

The Timeshare Industry publicly abhors any notion of a secondary market almost as much as the Wicked Witch of the West abhors water.

Why? …It’s so simple.

Let’s say you buy a Westgate ‘second hand’ at 90% off current Westgate prices from eBay.

  1. Westgate gets no new dollars from that exchange, Westgate gets a new Customer, the perception of “secondary market” timeshare true value is realized,
  2. Westgate takes on the risk that you will or won’t pay its annual fee’s.

Unlike the auto business, the timeshare core product is the same in “both Primary & Secondary Markets,” the most glaring disparity is price.

All the frontloaded exorbitant sales commissions, fees, marketing expenses and popping champagne are in the primary market versus a vast global array of venue choices at huge discounts available in the Secondary Market.

Sadly, developers use punitive measures to hamper and deter secondary market purchases of Points based/Club, Right to Use contracts by restricting further points accumulation (s), restricting booking access or exchange, restricting access to deed back and contract back programs, voiding visiting guest rental certificates and other contractual privileges. Certain developers’ restrictions have been described as downright draconian!   

The Industry publicly states in countless SEC filings that a Secondary Market would cut deeply into the Industries profitability. We can see why they would be worried.

In SEC filings:

  • “…the resale market for VOI’s (vacation ownership interests) could adversely affect our business” (Bluegreen)
  • “the sale of vacation ownership interests in the secondary market could negatively impact our sales” (Wyndham)
  • “the sale of vacation ownership interests in the secondary market by existing owners could cause our sales revenues and profits to decline” (Starwood)

Source – EDGAR.

In loosely translated SEC language that means the entire industry agrees with the notion that a secondary market should not exist, and they will stamp on the windpipe of any attempt to conjure a secondary market.  

This cannibalistic, illusory industry has a bone through its nose! As the industry makes sweeping, ubiquitous, cannibalizing, business decisions we urge serious consideration to the real threat to the future bottom line. As the Industry has discovered, there is a serious flaw to timeshare. Having built these lavish, illusory, granulated palaces, one must continue to sell to new mug punters who are still naive enough to sit through a bruising several hours long presentation and then when sufficiently punch drunk, pick up a pen and sign complex contracts that one has never read nor had the opportunity to do so, nor to many if read would actually comprehend. This is the sales model of the Primary Timeshare market? Is this the best they’ve got?

Possibly that’s the reason behind the aforementioned public company players in timeshare creating new public companies for their Timeshare only assets. Maybe they also see the writing on the wall of this woeful sales channel and are protecting their other core assets from devaluation.

After all, how many mug-punters could there possibly be?   

In a 2017 Orlando Sentinel News story, Mr. & Mrs. Morrison stated they are horrified by what they did on their last vacation to a Wyndham Resort in Orlando. They paid $25,000 to buy a timeshare, after a four-hour sales pitch that wore down the couple’s resistance and skepticism. Now they’re being hounded by people promising to get them out of the contract — if they pay an up-front fee. They don’t want to pay out any more money and aren’t sure who to trust. “We can’t afford this,” said Morrison, 69, who lives near Ottawa, Ontario. She says Wyndham offered to put them in a program that will eventually allow them to sell their timeshare, but they aren’t sure how long it will take. “Why won’t someone help us and put a stop to this?” she said. Wyndham didn’t respond to questions about the Morrisons’ case.

As if the Industry abandoning its aged, non-using, beneficiary owned and generally unwanted/unaffordable owners wasn’t bad enough, the Industry thwarts every attempt to stop an immense Exodus creating a need for Lawyers, Advocates and evidently miscreants and swindlers.

If Timeshare is an investment in making memories in people’s lives then shouldn’t it know when it has outstayed its welcome?

This of course is all karmically comical as the Timeshare Industry has cut its teeth on brutally sharp practices of high-pressure selling techniques, flogging its wares in well documented grueling four or five hour long “90” minute information breakfasts.

The Industry is undeniably infamous for pitching heat. Sales offices manned with trained professionals are often well trained in manipulative sales techniques. These timeshare hit-men pitch to the giddy, all too often inebriated, vacation-minded unaware prospects. It has been alleged that commission driven sales people often misrepresent overly complex customers contracts, agreements, loan documents, mortgage addendums all of which are tragically packaged by Closers, TO’s (Take Overs), Hail Mary’s and Managers at a table somewhere in a Timeshare sales room. Their only compensation is the commission from a sale.

Can you hear the champagne popping corks now?

The Supreme Court of Tennessee disbarred attorney Judson Wheeler Phillips, founder of the Castle Law Group, on a myriad of charges relating to consumer fraud complaints. In the past few weeks, Castle Law Group has ceased business operations following federal lawsuits brought by developers against Castle Law Group and those acting in concert with the firm.

Wyndham’s pursuit of American Consumer Credit (“ACC”), ACC’s principal, Dana Micaleff and attorney, Michael Saracco, resulted in ACC filing bankruptcy on September 7, 2018. Attorney Michael Sarocco, stated that Canadian entrepreneur Micallef always had “good intentions”, however things fell apart when developers and resorts wouldn’t allow ACC’s clients to break their contracts.

Castle Law & Judson Phillips were among the pioneers of the timeshare law firm and the cancellation business. Castle law had dozens of tertiary businesses who were marketing Castle Law services. These marketing firms fed Castle Law with thousands of desperate owners who were willing to pay $7500 or more “upfront” to exit their contracts.

In order to understand the scale of timeshare in the USA, the Timeshare Industry does about a $9billion a year in gross revenue. About 9.4million ownerships exist. There are approximately 1600 resorts. Average maintenance is approximately $900 a year. The Industry aggregates approximately $8.5billion from maintenance annually.

A typical single resort’s simple deed math would look like this:

  •         Typical Timeshare Resort – Individual Condo Units Per Resort: 500 units
  •         Weeks for Sale Per Unit: 50 weeks 500 x 50 = 25,000 Weeks for Sale
  •         Average sales price per week: $ 25,000
  •         25,000 weeks’ x $25,000 = $ 625,000,000 developer receipts
  •         Plus 25,000 weeks x $900 maintenance p/a = $22,500,000 per year.

In a new improved version of Uri Fried’s Viking LLC scheme; David and Cindy Macmillan sent millions of solicitation postcards and letters to Timeshare owners enticing them to attend informational meetings that led to “exiting their timeshare with 100% money back guarantee.”

The MacMillans ran a bunch of Viking Ship LLCs and their own transfer company in a timeshare transfer operation that resort owners alleged was bilking the industry out of hundreds of millions of dollars over a period of about nine years.

In 2008, spurred on by a failing economy and the USA housing crisis, the MacMillans operated over 65 straw buyer LLCs claiming that in exchange for several thousand dollars upfront, owners could be released from any timeshare contract. The MacMillan’s prize-winning company based in Torrance, California held sales meetings for owners by the bus load. Hundreds would cram in waving their credit cards in readiness. The MacMillan’s charged $6000 or more and allegedly mishandled over 120,000 timeshare contracts before becoming the target of the Attorney General of California. RICO allegations from Plaintiff Wyndham Hotel & Resorts proved undefendable. The MacMillans were banned from the business. They didn’t pay a single cent to the resorts in maintenance. Most of MacMillan’s eager customers found they were still on the hook for their timeshares. David MacMillan filed bankruptcy in 2016. Once again millions of dollars in ill-gotten gains went unrecovered. In a karmic twist of fate, Macmillan’s own transfer agent transferred thousands of the Macmillan’s Viking LLCs timeshares back into the original owners’ names before leaving the scene of the crime and left the Macmillans to take the fall.          

By 2014 Timeshare Exit marketing companies had mushroomed up all over central and south Florida, Tennessee and Missouri. Most of the new crops were marketing firms owned and run by seasoned telemarketing recidivists or by ex-timeshare sales people, some of whom had access to valuable owner data. The marketers, mostly acting as advocates, fed a variety of attorneys and both shared in the customer fees.  

In call center parlance this new business represented a new ‘data’ vertical. Call centers that had previously run ‘data’ looking for mortgage consolidation or debt relief were suitably adaptable for Timeshare Exit marketing. The busted timeshare Resale/Rental telephone scams that had left many recently unemployed in south and central Florida simply redeployed themselves. Some sales people told sad stories of repenting for all the lies they had told while selling Timeshare.    

In Phillips’ case, the Tennessee Supreme Court disbarred Phillips after reviewing upwards of 18 client complaints, many of which made similar allegations of fraud, highlighting a pattern and practice of misconduct. In its ruling, the Tennessee Supreme Court found that Phillips “poses a threat of substantial harm to the public.” Central to the series of complaints were allegations that Phillips and his business partners misled and/or defrauded consumers by taking exorbitant fees from timeshare owners for purported timeshare exit or cancellation services based upon fraudulent and misleading representations.

The ACC case is based on various legal theories, some of which are founded in Federal law, known as the “Lanham Act of False Advertising”. The case remains pending against Micaleff, individually, and Saracco, individually, although an automatic stay has been issued relative to ACC in the U.S. District Court action as a result of the bankruptcy filing. That, however, has not deterred the prosecution of the case. As of today, there is a motion pending against Micaleff and Saracco to punish them for, among other things, failing to appear for a deposition.

The Industries press release further commented;

“The constant pressure that our member companies, owners and federal and state agencies are putting on disreputable timeshare exit companies has again produced a positive result for the consumer,” said Robert Clements, ARDA Vice President of Regulatory Affairs.

“We are committed to protecting our owners to ensure they aren’t taken advantage of,” said Michael Brown, President and CEO of Wyndham Destinations.”

Diamond Resorts implemented an aggressive litigation strategy in pursuit of third-party exit companies for their nefarious and unlawful conduct in an effort to protect the interest of their members who were promised outcomes that could not be legally accomplished.

The number of customers who “wish to exit” an owned, fully paid up timeshare is an immense Exodus. Far higher than was ever imagined or projected by the industry. The elephant in the room is that there is still no safe exit from unwanted timeshares and no robust market with which to capture and reposition the unwanted timeshares.

In light of the recently filed Florida House Bill 435, one must question the fates of the remaining exit and cancellation firms including; Resort Release LLC, The Newton Group & Reed Hein AKA Timeshare Exit Team amongst others.   

It is obvious by the recent advertising budgets expended on TV, Radio and all other assorted media, along with the number of employees and general expenses to run these TPE’s that there are probably millions of Owners who have already paid Fees to exit or dispose of a timeshare in the last 12-36 months that are as-yet unresolved and may begin actions suing for refunds. The Term of a TPE’s contract generally offered is 12-18 months. We are sure many contracts have now been extended far beyond their legal limits. All the previously named TPE’s and Law firms offered a 100% refund upon eventual nonperformance, assuming they were still in business.

By monitoring the largest TPEs on social media and by paying particular attention to present and past customers reviews, it is evident that satisfaction is extremely low and that refunds are aggressively being sought. How many hundreds of complaints like these does it take before another AG steps in or another exit company gets driven to bankruptcy by an aggrieved resort or the FTC?

Here’s what we know.

Exit firms can’t get rid of your timeshare unless the resort ‘wants them back.’ Most Timeshares are indeed worthless. All timeshares come with some form of annual cost. In light of 2018’s vacationing and travelling popular habits, the notion of paying an annual fee is not popular or appears economically attractive.  

It may well be true to say that all TPEs charge upfront fees for truly illusionary services because they now know within a moral certainty that their customers will get nothing for their money.

One would have imagined that Timeshare Developers, being an enterprising bunch, would have figured out how to ‘selectively take in’ enough exits & cancels to quell this Exodus problem. This sensible move would have made the TPEs redundant and quickly ended the third party exit business by allowing worthwhile and fitting exits for owners, for a small fee.  

This, however, further highlights the possible size of the immense Exodus problem.

Thank you to our new contributor, at some point he will reveal himself, but we look forward to Part Two of the Manifesto.

Remember if you are unsure about any company that has contacted you, or that you have found yourself on the internet or from an advert, then contact Inside Timeshare.

If you purchased your timeshare in Spain or upgraded after 5 January 1999 and would like to know if you have a valid and viable claim then Inside Timeshare can point you in the right direction.