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Diamond Resorts

Signing Contracts for Services and the Latest Anfi Loss in the Courts

Over the past few months, Inside Timeshare has been receiving many inquiries regarding contracts being signed with some rather disreputable companies for “legal services” such as “claims and exits”. According to our readers, once they have signed the contract they are then told that the deposit paid is non-refundable and there is no cooling-off period as they have paid for a “service”. As you will see this is not actually the case. We also report on the latest case involving Anfi in the courts of Gran Canaria and another expensive loss for them.

First, we have a look at the signing of contracts for “services” and the claim that the deposit is non-refundable and that no cooling-off period is required by law.

As many of you are aware there has been a huge proliferation in the number of companies emerging claiming they can get you a full refund or “compensation” for your “mis-sold” timeshare and also have the contract cancelled. These tend to come by way of “cold calls” with some of our readers stating they are receiving around 5 per week.

Some have been taken in by these “companies” and have then received a “Zoom” meeting to discuss their case with their so-called “legal consultant”. These “meetings” have followed the old timeshare sales technique of high pressure and urgency to sign up today.

One of our readers did fall for this and duly paid a deposit by credit card, fine, at least they were then protected under Section 75 or were they. More on this point in a moment. But, when they had second thoughts after the meeting and felt that something was wrong they began to investigate the company involved. They were obviously not happy with what they found out and duly contacted the company to cancel. This is where the problem started.

The company who we will not name at present but are working in association with several others informed them that the contract clearly states the deposit is non-refundable and that no cooling-off period exists as they are providing a “service” not a product.

Well, luckily enough for our reader, Inside Timeshare did a little checking and this claim is not true, there is a cooling-off period in UK law and also in Spanish law.

These regulations actually cover contracts that are signed in your own home or as we have seen due to the pandemic, signed on line. In the UK these laws stem from the old “doorstep” sales and now encompasses “cold calls” by telephone and internet video meetings. In Spain, they are part of the regulations to protect consumers.

These can be found at the following links:

Spanish Regulations From Citizens Advice Spain

The full Spanish Rules from BOE

PDF of the relevant BOE page and a translation.

After receiving this information our reader then contacted their bank who at first declined to intervene, after around 90 minutes, the bank has refunded the amount paid and is now set to retrieve the money from the company, well, good luck with that one.

On the point of paying by credit card, yes, you are covered under Section 75 of the Credit Consumer Act 1974, but, as always there is a but, you may not be covered under the “third party” rule.

This particular section is when you pay one company who then passes on the work to a third party and that party fails to carry out the work. For instance, you pay company A to exit your timeshare contract, they pass this to company B, this company does not do the job. You then make a claim with your credit card provider under Section 75 for goods or services not provided.

Your card provider will dismiss the claim against company A as they will state that they did their job by providing you with a company “experienced” in that work. It is not their fault that company B has not done the work. Claim denied.

So what can you do to protect yourself?

First, before signing any contract, which you should not do at the time of the call or zoom meeting, check the clauses, do they provide a cancellation period of 14 days and is the deposit refundable. If not, don’t sign the contract.

Second, check that the company you are dealing with is the company that will carry out the work, if they say they “contract” the work out to their associate and partner companies then don’t sign the contract.

These are the basic signs of a possible scam operation and these companies should be avoided at all costs.

Court of First Instance Number 5 of San Bartelóme de Tirajana

Latest News from the Courts.

In another case brought on behalf of a German client by the law firm Canarian Legal Alliance, the Court of First Instance Number 5 of San Bartelóme de Tirajana, has declared yet another Anfi contract null and void. The court has also ordered that Anfi repay the client 33,911€ plus legal interest and legal costs.

In this case, the Court of First Instance also recognised the Supreme Court ruling that any payment taken within the statutory cooling-off period is illegal and is repaid in double. This is broken down as 16,249€ paid for the contract with an additional 17,662€ which is double the amount taken illegally as a deposit.

The case was prepared and conducted by the CLA Lawyers Eva Gutierrez and Christine Ihmann, with Claims Consultant Evi Richter assisting the client throughout the process.

That is all for today, in tomorrow’s edition of Friday’s Letter from America we have an update from Tiffany titled:

Why the Buyer is Blamed if a Sales Agent Lies 


The slogan Stay Vacationed is used by Diamond Resorts and is, to be honest, a bit of a joke, but more on this tomorrow.

Friday’s Letter from America: Hilton Acquisition of Diamond


The Radio 4 program You and Yours will not be broadcasting the MacDonald Resorts segment today as planned, this is due to MacDonald Resorts contacting our reader and making an offer of settlement. Hopefully we will be able to publish a successful conclusion in the future.

Back now to our Letter from America.

Welcome to the end of another week with Inside Timeshare, today’s Letter from America is from an old friend, Irene Parker. It needs no introduction apart from it is a subject that has sparked many conversations, the acquisition of Diamond Resorts by Hilton Grand Vacations. Here Irene explores what this means to Diamond Members.

What does Hilton Grand Vacations Acquisition of Diamond Resorts Means to Diamond Members?

How Private Equity has Influenced Timeshare

By Irene Parker

March 26, 2021

Several Diamond Resorts members have expressed bewilderment by the announcement this month that Hilton is acquiring Diamond Resorts. Former deeded owners of resorts purchased by Diamond – Monarch, Gold Key, Sunterra, ILX, Amber and others, were told that they had to give up their deed and convert to points. It is likely they will once again be told they must upgrade to have access to Hilton properties. Overall, Diamond members seem to feel Hilton’s acquisition is a welcome development. The transaction is expected to close by summer.

According to HGV CEO Mark Wang:

But when you think about the power of putting the Hilton brand on …. it will, number one, create a tremendous amount of credibility. It’ll allow us to attract customers, higher-quality customers than Diamond was able to attract.

We’re going to be– we’re launching a new brand called Hilton Vacation Club. And Hilton Vacation Club will be positioned just below Hilton Grand Vacation Club, which is an upper upscale brand. And Hilton Vacation Club will be an upscale brand. And the entry price points are significantly lower, about $20,000 lower to– to enter the system.

What does it mean? How will it work?

According to Hilton’s website: 

Accelerates launch of HGV-branded trust product offering: rebrand Diamond’s properties over time to drive revenue growth in a new customer segment

My Comment: Trust-based means properties are owned by a Trust, but that is of no benefit to timeshare members who don’t “own” anything. Buyers of non-deeded points purchase a right-to-use product. They have no beneficial interest in a Developer’s Trust any more than a member of a Country Club or gym club has a beneficial interest in their club’s brick and mortar buildings. 

My question: Diamond’s properties are already in Diamond’s Trusts. Does Hilton plan to buy legacy (older) resorts, modeling Diamond’s business model?

  • Combining HGV’s points-based deeded product with Diamond’s points-based trust structure will allow the Company to cater to a wider audience, attract more new buyers and drive incremental growth in a capital-efficient manner.
  • HGV’s deeded product provides premium pricing, inventory sourcing flexibility, and the ability to pre-sell projects to support strong project-level cash flow, while giving buyers and owners the value of guaranteed availability.

My question: How is availability guaranteed? According to Hilton members I spoke with, availability is guaranteed by means of an advanced booking window. It’s not the same as owning a fixed week that is a true guarantee.     

  • The introduction of a trust product allows for lower barriers to ownership, reduced inventory delivery volatility and inventory recycling, enabling smoother sales and upgrades while providing buyers and owners network and pricing flexibility.

The biggest question on the minds of many Diamond members is – will there finally be a resale value. Rules change, but at last check if you buy Diamond points on the secondary market, you must buy 50% of the number of points you bought on the secondary market, directly from Diamond to be eligible for The Club, to be able to exchange. Will Hilton be so restrictive?   

Inventory delivery volatility reduction must be because points are of almost unlimited supply and eternal. 

Inventory recycling means foreclosing or taking back points. 

“Smoother sales and upgrades” is something Diamond members are very used to and many are wary of. 

One Diamond member expressed Diamond’s pricing flexibility: 

Kona 11/6/18 – Our agent tried to convince us to purchase Hawaii collection points for $11.40 per point, as opposed to $4.79 presented on Oahu the week before. Manager Brett asked us where the $4.79 came from. We shared the paperwork we had been given. He became rude and threatening saying, “it is illegal for you to have these papers.” The papers had been given to us.   

  • Integrates Diamond’s innovative Events of a Lifetime® experiential sales and marketing platform that drives strong engagement and Volume Per Guest (VPG) premiums with HGV’s owner base

My Comment: It is hoped Hilton will do a better job of informing the person presented with an EOL that it is a solicitation. 

Volume per Guest is a metric that is often used to show efficiency in sales. Total sales volume divided by the number of tours “guests” that each site has. 

Ex. Site sells 200,000 on a day with 25 guests = 8,000 VPG – This is the expectation for existing owners. (Figures provided by an industry insider)

Many on our Diamond member-sponsored Facebook have questioned how this remarkably high VPG has been achieved.

DRI 7,000-12,000 VPG 

Wyndham 3,000-4,000

Bluegreen 3,000-4,000

Marriott 3,000-5,000

Hilton 4,000-5,500

The History and Effect of Private Equity on Diamond Resorts and Timeshare 

It’s not your Grandmothers’ Timeshare

Leon Black founded Apollo in 1990 with partners from Drexel Burnham Lambert, the junk-bond shop led by Michael Milken that collapsed in a scandal.

Apollo took Diamond Resorts private in 2016 for $2.2 billion and made a bid to buy Hilton Grand Vacations three years later for about $40 a share.

In 2018 – Private-equity firm Apollo Global Management LLC is preparing to take Diamond Resorts public …. Apollo could seek a valuation for Diamond Resorts of around $4 billion and aim to raise in excess of $500 million in the offering, though price expectations are moving around, according to people familiar with the process.

HGV, spun out of Hilton Worldwide in 2017, will buy the Las Vegas-based Diamond Resorts (for $1.4 billion) from funds managed by affiliates of Apollo Global Management Inc., Reverence Capital Partners and others in an all-stock deal.

Private Equity v Hedge Funds (Investopedia)

Private equity funds more closely resemble venture capital firms in that they invest directly in companies, primarily by purchasing private companies, although they sometimes seek to acquire controlling interest in publicly traded companies through stock purchases. They frequently use leveraged buyouts to acquire financially distressed companies. Once they acquire or control interest in a company, private equity funds look to improve the company through management changes, streamlining operations or expansion, with the eventual goal of selling the company for a profit, either privately or through an initial public offering in a stock market. 

History Repeats Itself

The first Diamond member to submit an article about their timeshare experience to Inside Timeshare was in 2016. A family of five, with their firstborn off to college, they alleged that they were told if they became Platinum they could offset maintenance fees. The most recent Inside Timeshare article is about a Diamond member who received a $95,678 judgement contesting a $3,995 Sampler trial product. He alleged that he was told he could offset maintenance fees at $.20 per point by charging purchases to a Diamond Barclaycard.

Many Diamond members have reported that they were told that if they did not give up their deed their heirs would be liable for the timeshare. There have been 157 Platinum members who have reported allegations that they were promised the ability to be relieved of maintenance fees, unlock equity, or be able to sell points if they became Platinum loyalty level or bought additional points. 

Do your timeshare math when purchasing a timeshare or upgrading.  Seniors especially need to amortize the buy-in price over their expected lifetime to determine if the outlay is worth the price.   

Thank you, Irene, as usual, you have given us much to think about, let us hope the industry itself wakes up and take notes from what their own members are saying.

Join us again next week as we explore and report on the murky world of timeshare, have a great weekend.

More Breaking News

On Monday Inside Timeshare will be publishing the latest on the Cazorla Group, the majority shareholders of Anfi, it has been announced that the courts have declared the Cazorla Group bankrupt.

Thursday Round Up Plus a Peek at Tomorrow

Today we have a quick round-up of the news this week, tomorrow we welcome back Irene Parker to Friday’s Letter from America slot, we also remind you of another You and Yours program on MacDonald Resorts going on air tomorrow, but more of that shortly. We begin with our round-up of this week so far.

On Monday, we brought you another “Nightmare on Timeshare Street” involving MacDonald Resorts. This story involves another reader who is currently experiencing the full wrath of MacDonald’s use of the law.

He is at his wits end, he feels he has nowhere to turn and is unable to get the legal help he needs due to cost. Once again, we see the bullying tactics of the timeshare companies against the most vulnerable and the law allows it.

This I personally believe is criminality in itself, a form of legalised extortion, tactics the Godfather Don Corleone would love!

Following that story we brought you news of cases heard in the High Courts, these involved two Anfi and one Silverpoint.

As usual with cases involving Anfi, they did not accept the rulings of the Court of First Instance and immediately lodged an appeal with the High Court of Las Palmas. It is something the lawyers and Inside Timeshare has come to expect in every case.

The High Court as they have done in every previous case has upheld the lower court’s decision and denied the appeal returning it back for the execution of sentence.

Silverpoint did the same thing in Tenerife, they appealed to the High Court of Santa Cruz, once again that court dismissed the appeal and upheld the original sentence. In this case, it has now been lodged with the Mercantile Court for the execution of sentence due to the liquidation process.

Tuesday it was once again Anfi in the frame, this time with the Supreme Court.

They lost at the Court of First Instance, then lost at the High Court, so decided in their wonderful wisdom to appeal to Spain’s Highest Court!

Yes, you guessed it, they lost!

We do have to ask the question, yet again: Why do they continue on this course of action?

Yesterday, we published information on a new company that has come to our attention, Theodora Consulting Ltd.

At present we don’t have that much information, but what we did publish certainly gives cause for concern.

Tomorrow we welcome Back Irene Parker with her Letter from America, which covers the ongoing news of the Hilton acquisition of Diamond Resorts. Irene has spent a great deal of time and effort in researching this article, Inside Timeshare is proud to welcome her back with such an important subject for Diamond members.

Following on from our MacDonald Resorts article, tomorrow at 12:20 pm on BBC Radio 4, the consumer affairs program You and Yours will be highlighting the stories of our readers over the past week or so.

Inside Timeshare will be listening to the broadcast and we hope you will be able to find the time to listen as well. For members of MacDonald Resorts, this is a very important item and will show you that you are not alone.

That is all for today, please do join us tomorrow for Irene’s article and do tune in to Radio 4 at 12.20 pm.
Hilton Acquisitions by Irene Parker
Broadcast on MacDonald Resorts