Browse Tag

Irene Parker

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.  


The Tuesday Slot

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

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

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

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

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

Women Who Money

Are Timeshares Worth the Money in the Long Run?

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

Wait! What Timeshare Regulations?

By Irene Parker

April 30, 2019

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

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

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

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

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

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

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

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

A synopsis of recent Florida, Arizona and Nevada legislation:

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

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

From Women Who Money   

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

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

Lisa Ann Schreier

Timeshare expert and author of Timeshare Vacations for Dummies

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

http://thetimesharecrusader.blogspot.com/

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

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

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

  • $8,631
  • -8,631
  • 0

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

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

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

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

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

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

Friday’s Letter from America

Welcome to this weeks Letter from America, today Irene Parker sets out instructions on how to file complaints with the FBI and the FTC (Federal Trade Commission). Unfortunately, many of the requests for help Inside Timeshare receives fall into the category of fraud, yet the industry still does not recognise that they need to change.

Before we start a bit of news from the Spanish Courts.

The lawyers from Canarian Legal Alliance have been at it again this week with a resounding 25 sentences issued against timeshare companies.

These have been broken down as 3 issued from the High Court and 22 from the Court of First Instance. With Anfi receiving 24 judgements against them and Club La Costa receiving 1. The Club la Costa case was heard at the court of First Instance in Fuengirola, Malaga and is the very first case to involve one of CLA’s Spanish clients. (Click on the PDF below for the court sentence).

The other cases were clients from the UK and Scandinavia, with most receiving double the deposits paid and the return of legal fees, all contract were also declared null and void.

The total amount awarded in all these cases is a staggering 828,329€. So congratulations to the clients and also the entire legal team at Canarian Legal Alliance.

Now for our Letter from America.

Timeshare Accountability Group™

FBI and FTC Filing Instructions and Talking Points

April 26, 2019

By Irene Parker

When timeshare members feel they have experienced unfair and deceptive timeshare sales practices, the member should first reach out to their resort in an attempt to resolve the dispute. If informed, “You signed a contract” or “We are not responsible for what our sales agents say,” file a Better Business Bureau complaint and file a complaint with the Attorney General from the state where you signed a contract.

Unfortunately, some timeshare complaints meet the FBI definition of white-collar crime. If the complaint is of a nature that meets the following description, file with the FBI at IC3.gov or file orally by contacting an FBI field office.

# 1 IC3.gov

Timeshare fraud falls under White Collar Crime/Mortgage Fraud/Financial Institution Fraud/Fraud for Profit. click on the link below to read about mortgage fraud. The general definition of white-collar crime is “deceit, concealment, violation of trust, and bait and switch.”  

Fraud for profit: Those who commit this type of mortgage fraud are often industry insiders using their specialized knowledge or authority to commit or facilitate the fraud. Current investigations and widespread reporting indicate a high percentage of mortgage fraud involves collusion by industry insiders, such as bank officers, appraisers, mortgage brokers, attorneys, loan originators, and other professionals engaged in the industry.

Fraud for profit aims not to secure housing, but rather to misuse the mortgage lending process to steal cash and equity from lenders or homeowners.

The FBI prioritizes fraud for profit cases.

https://www.fbi.gov/investigate/white-collar-crime/mortgage-fraud

To file a complaint with the FBI, select IC3.gov from the three choices available. It’s confusing because IC stands for Internet Crime, but it doesn’t have to be about internet crime. That’s just the name of the portal. You can file a complaint on behalf of someone else. At the end of the form it will ask if you are filing on someone else’s behalf.

https://www.ic3.gov/default.aspx

Some of the information that the IC3.gov online form asks for is not necessary – fields like routing numbers, bank addresses. Don’t worry about having all that information. They are not required fields. Victim bank is the bank from where you made payments or the credit card company. Subject bank is where you send your payments.

If you receive additional information after filing an original complaint, there is a handy box to check that asks, “Is this an update to a prior report?” Start the complaint over, but check that box to add the new information.

Step #2 File an oral FBI report 24/7

You can also file orally by contacting an FBI field office. Contact the field office where you signed a contract. Members have reported some agents have spent one or two hours on the phone with them. One member met with her FBI agent!

When you call the field office, select “Submit a Tip” then wait for the white-collar crime prompt. One person ended up in the wrong pew of the right church told they had to have lost a million dollars or more to file a complaint. That’s not true.

Members report the FBI has been responsive, but the FBI agent needs to be convinced getting a lawyer will do nothing to stop the problem of timeshare fraud for profit. Timeshare companies have armies of lawyers and they can drag a proceeding on forever until the member is broke. It is an understatement to say timeshare attorneys don’t look favourably on the arbitration process.

In Florida call the Tampa Field Office

https://www.fbi.gov/contact-us/field-offices/

Whether filing at IC3.gov or orally, you can provide the name and phone number of other victims, especially if you are aware of similar complaints. That way the FBI can look up other reports directed against the same repeat offender sales agent.

Sheila Brust’s article, “Just the Facts, Ma’am” is about her experience reaching out to the FBI. Sheilah worked for New York Governor’s Office of Employee Relations. The FBI advised Sheila to file with the Secret Service because her allegation also involved credit card fraud.

www.secretservice.gov                                                       

Don’t expect to hear back from the FBI. They don’t work like that. That doesn’t mean they are not listening. It takes volumes of complaints and a pattern of complaints to launch any investigation, whether with the FBI or with an Attorney General.

Filing your own complaint requires dedication and perseverance. Resolutions can be accomplished, empowered with information the member needs to take matters into their own hands. Thinking beyond their own dilemma, members can become one of our volunteer Supporters to help others.

Our Complaint Instructions were revised by a millennial timeshare buyer who followed our complaint instructions to resolve her dispute.

How to File a Complaint revised January 25, 2019

Timeshare member complaints tend to start out convoluted and confusing. We suggest having a friend or neighbor, not familiar with timeshare, read your complaint to see if it makes sense. Provide examples. Expect to be denied. Read the reason for dismissal and respond with a rebuttal.

Saying things like “I can’t afford this” is useless. You can’t go to your home mortgage lender and say “I can’t afford my home mortgage” and expect them to take your house back. You signed a legally binding contract. If there was no deception, you are bound by the contract, although it’s possible to request a contract cancellation due to medical or financial hardship.

We refer to a lawyer about one in ten times when all else fails, or the member does not have the time or energy to follow our process, which is admittedly timeshare consuming. A list of reputable law firms is provided upon request.   

#3 File with the Federal Trade Commission

The FTC online form has a “Timeshare Sales” option. It’s not easy to find. Instructions are in this article. Don’t be discouraged by receiving only a “Here’s some timeshare tips!” response. https://insidetimeshare.com/the-tuesday-slot-13/

Extra Talking Points

You must inform the FBI agent why you experienced unfair and deceptive sales practices. The agent you speak with may know nothing about timeshare basics. Explain the contract is perpetual, there is no secondary market, and when members complain, the company often hides behind the oral representation clause.

Your mission is to convince the FBI that this is not about only a few complaints. This article “Timeshare Foreclosure Explained to Lenders” lists just a few of the Attorneys General investigations and lawsuits, and the St. Louis Better Business Bureau report tells consumers what to watch out for:

Timeshare Foreclosure Explained to Lenders

St. Louis BBB report

https://www.bbb.org/en/us/article/news-releases/18149-dont-fall-for-deception-pressure-and-traps-disguised-as-vacations-a-better-business-bureau-study-of-the-missouri-timeshare-vacation-club-industry?bbbid=0734

Why doesn’t the government do something about this?

  1. There is no federal enforcement,
  2. Timeshare Attorney General Investigations and settlements are usually mere financial speed bumps, comparable to fining an NFL player $10,000. One exception is The Manhattan Club settlement. https://nypost.com/2017/08/17/new-york-ag-reaches-6-5m-settlement-with-manhattan-club
  3. When a member complains, they are shown their initials on the fine print,
  4. Retaining an attorney will not stop unfair and deceptive business practices,
  5. Litigation is time-consuming and expensive,
  6. Arbitration is widely known to be pro-industry. If you lose you can end up paying the resort’s arbitration fees. The resort hires the arbitrators.
  7. The CFPB has been rendered ineffective. Even in the CFPB heyday members could not file a complaint because the borrower often doesn’t even know the name of their lender. You had to select a financial institution from the dropdown menu and timeshare companies are not a choice.
  8. Some lawmakers may be influenced by lobby dollars, as reported by The Daily Courier. https://www.dcourier.com/news/2019/apr/16/opt-out-provisions-timeshare-bill-no-longer-table/
  9. Some state AGs turn a blind eye. At a Florida legislative workshop in Tallahassee March 12 of this year, the spokesperson for the Florida AG reported their office received 1,600 annual timeshare complaints in 2017 and 2018, mostly about the initial sales presentation, 50% seniors, of which the AG engaged only 42 of the complaints, mostly about resales. This spells no enforcement. The Nevada Real Estate Division responded to all our readers with a “You have no proof letter.”
  10. Timeshare members give the ARDA ROC Political Action Committee approximately $5 million dollars annually, often “Opt-Out” donations. We have heard from over 800 timeshare members. Not one could tell us what ARDA ROC even stands for. ARDA ROC vigorously opposed recent proposed pro-consumer changes in Arizona.  

Let us know if you are active duty military, law enforcement, a government worker or a veteran, as we are supported by WhistleBlowers of America. They added timeshare fraud to their March 14, 2018 report before the Committees on Veterans’ Affairs (the Consumer Financial Protection Bureau has since been all but dismantled and we changed our name from TS Advocacy to Timeshare Accountability Group):

United in Speaking Truth to Power

www.whistleblowersofamerica.org @whistleP2P

601 Pennsylvania Ave, South Tower, Suite 900 Washington, DC 20004

Statement of

Ms. Jacqueline Garrick, LCSW-C

Executive Director

Whistleblowers of America

Before the

Committees on Veterans’ Affairs

U.S. Senate

U.S. House of Representatives

March 14, 2018

House and Senate Committee Members:

Whistleblowers of America (WoA) was incorporated in 2017, as a newly focused nonprofit service organization providing peer support to whistleblowers, so we are honored to be able to share our concerns with you today. The majority of our contacts are with Department of Veterans Affairs (VA) employees or veterans who have identified waste, fraud, and abuse, medical errors, denials of care or benefits, discrimination, harassment or bullying.  For doing so, they have suffered reprisal and retaliation. From the report:

Fraud and Scams Against Veterans:

Although WoA recognizes that it is not inherent within the VA mission to protect veterans from fraud and scams that could cost them their benefits, it suggests that it could be assistive in educating veterans against these unscrupulous tactics. For example, WoA has had multiple complaints from veterans related to timeshare deceit and bait and switch tactics, which are defined by the FBI as fraud for profit.  Often elderly veterans are mentioned as being targeted by the Timeshare Advocacy Group, TM which fights for active duty and retired military who fear losing their security clearance, career, homes or other assets.  Foreclosures and financial distress because of these misrepresented investments are happening every day to elderly disabled veterans and their families. In the past, VA has cooperated with the Consumer Financial Protection Bureau (CFPB) over mortgage and other loan scams that caused financial hardships for veterans.  Home loans and timeshare loans are identical as both are reported as foreclosures. WoA asks that Congress consider a role for the VBA Employment and Economic Initiative (EEI) could play in cooperation with CFPB to educate and protect veterans from unscrupulous financial predators and fraudulent practices.

Consider a donation to Whistleblowers of America if you have been helped by Timeshare Accountability Group™

It’s remarkable that a timeshare member must go through this many stressful hoops concerning a product that was sold to be stress reducing. If you have skills that could help others, consider becoming a Supporter. Contact TAG.

Related articles:

3Rs or F of Timeshare

The Timeshare Tax Trap, February 26, 2019

Arizona HB 2639, March 1, 2019

Arizona HB 2639, March 5, 2019

Florida HB 435, March 15, 2019

Florida HB 435, March 19, 2019

Nevada SB, March 22, 2019

Arbitration October 24 2017

Member self-help groups

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you Irene, this information should prove a great help to many of our readers, it is just a shame that we have to resort to this type of action. One day the industry may just realise that it is through their own greed that they are on the receiving end of so many complaints.

Once again the weekend is upon us, whatever you are doing and wherever you are, have a great weekend and join us next week for news and information on the murky world of timeshare.

Friday’s Letter from America

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

A Legislative Scorecard – Nevada Florida and Arizona

How to Connect Lobby Dots

By Irene Parker

April 12, 2019

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

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

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

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

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

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

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

A recent complaint received by Inside Timeshare:

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

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

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

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

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

An overlooked Nevada bill:  

Nevada Assembly Bill 438: Vacation and Timeshare Plans

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

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

Section 1 states:

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

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

Effective Date: 7/1/2019

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

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

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

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

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

From AZ HB 2639

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

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

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

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

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

The American Legislative Exchange Council

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

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

Self-help groups we feel are not industry influenced:

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

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

https://tug2.com/Home.aspx

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

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

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

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

Other related articles:

Arizona HB 2639

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

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

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

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

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

Kwikchex Update: Press Release from ECC

On Monday 8 April in Start the Week, Inside Timeshare published an article on the RDO and Kwikchex, We then received from Sharon Johnston, Public Relations Manager for ECC the following press release which Inside Timeshare is pleased to publish for them.

ECC Timeshare Truth about RDO & Kwikchex

Inside Timeshare wrote a great article produced by lawyers backing up what ECC have been saying about the supposedly independent advice bodies within the timeshare industry and revealing who is behind these organizations and their “REAL” intentions.

The sad truth is that they all have a hidden agenda:

Consumers are given the impression that Kwikchex, Timeshare Taskforce, Timeshare Business Check offer an independent advisory service but their existence in reality, is to protect the timeshare industry. Kwikchex claim that they work with Trading Standards, the Competition and Markets Office, the Ministry of Justice, the Information Commissioner’s office and the Insolvency Service.

Kwikchex.com is run by Mr. Chris Emmins who confirms that his entities are funded by the RDO.

Inside Timeshare reveal the hard truth that Kwikchex funds several entities to discredit companies that do genuinely try to help beleaguered timeshare owners, Kwikchex, Timeshare Taskforce and Timeshare Business Check, are all run by Chris Emmins.   Inside Timeshare also continue to reveal that Chris Emmins background is not a good one with 17 appointments, all companies being dissolved under his directorship.

Chris Emmins

With the timeshare industry having such a tarnished past is it no wonder consumers do not know who to trust and these organizations are just adding to the problem.

You can also read the full article by Inside Timeshare here  http://insidetimeshare.com/start-the-week-19/

Thankfully, there are a few legitimate companies out there who can help you receive honest legal advice about your timeshare.

You can use our contact us page or speak to us live via our online chat facility.

https://ecc-eu.com/

ECC Newsdesk

Than you Sharon, your press release has certainly shown that the article published was factual and shows the RDO and Kwikchex for what they are, run for the benefit of the industry to the detriment of the consumer.

Tomorrow in Friday’s Letter from America, we will be publishing the article A Legislative Scoreboard – Nevada, Florida and Arizona by our very own Irene Parker, so join us for the end of another week.

The Tuesday Slot

Welcome to our Tuesday Slot, this week Irene Parker explains why she is an advocate. As many of our readers will know, Irene has been coming increasingly under attack by the industry for her role in helping timeshare owners with their “Nightmare on Timeshare Street” stories. This replaces the scheduled article which will be published at a later date.

Two Timeshare Developers Want to Depose Me

I asked why? I’m told they probably want to ask:

What personal benefit do you gain by your efforts?

My answer: A reduction in survivor guilt

By Irene Parker

April 9, 2019

Abraham Lincoln described it best. Abe was riding in a carriage. He asked the driver to stop, got out of the carriage, waded through mud, and pulled a stuck pig out of the mud. When he got back into the carriage his driver told him he was a good person to have waded through mud to help the pig. Abe answered back, “No, I am a selfish person because seeing the pig stuck in the mud made me uncomfortable. Pulling the pig out of the mud made me feel better.”

I was losing sleep over being deposed by two timeshare developers’ attorneys over a lawsuit. I’m told these attorneys are aggressive and lose their cool if you don’t give them the answer they want. Timeshare members communicate with this debt collection law firm. An article was published about the lawsuit a while ago. Inside Timeshare and I were mentioned as supporting the law firm being sued. I reread the article yesterday. It sounds like lawyers quibbling. I asked an attorney why they would want to depose me. He speculated that they might want to ask:

What personal benefit do you get out of your efforts?

MY ANSWER

I compare myself to John Walsh, host of the popular American television show America’s Most Wanted. His four year old son was murdered. A tsunami of grief and horror can turn inward and destroy you. If directed outward, you devote your life to helping victims. A detective said you never get over a homicide.

I have only faced pure evil three times in my life. Many have told me I should write a book. This blog will suffice.

My first encounter with evil occurred at age 24. My first husband Raymond was diagnosed at age 24 with “Wilson’s Disease” (hepatica-lenticular degeneration). His sister died of the disease two months after she married. Ray lost his ability to speak, drooled constantly, teeth rotted, fingers turned to pretzels and bizarre personality changes materialized. He had been a caring EMT, but gradually over three years became dangerous and violent due to the disease process.

In the middle of all this my best friend since third grade, Jayme Simmons, author of her version of I-Ching, called. Her husband John almost killed her, her mom and her two year old. Her mom was left with bite marks on her arm. He was jailed for 30 days. There he told everyone he would murder her when released. My friend was in jail with him. Dental students had a habit of not paying their parking tickets.

Jayme lived with me the last two months of her life before he shot her in the face three times in front of her two year old. I was to testify premeditation, but he switched his plea to guilty. The judge sentenced him to seven years. Seven years. Jayme was a songwriter. The song “I’m not Lisa, my name is Julie” is prophetic because the adoptive family had to get her husband’s permission from jail in order to adopt the child. They changed her name to Julie. This happened in 1974.  Jayme was stunningly beautiful. When Jessi Colter turns her head a certain way, she looks just like Jayme. Jayme asked me to look out for Julie. My eyes are blue.

https://video.search.yahoo.com/search/video?fr=mcsaoffblock&p=I%27m+not+Julie+My+name+is+lisa#id=1&vid=e5a006190234c57bb3b5beb102cf4a9b&action=click

Evil #2 happened after I retired from Edward Jones Hawaii in September 2001. We exchanged our timeshare for a timeshare in northern Michigan. The church we attended was embroiled in a horrific controversy over a renovation. The prior priest had received death threats. It was the new priest’s first Sunday. He began, “I know five priests have refused to come here but I’m not afraid of you.” No one played the piano, so I asked the priest if he wanted me to play as we still had another week’s vacation. Father offered me a full-time job that came with a $500,000 pipe organ renovation. The pipe organ renovation sealed the deal.

Three years later, I noticed a headline in our local paper, “Unholy Childhood School of Jesus” about how Notre Dame Nuns at our sister parish had sexually abused Chippewa and Odawa Indian boys from the 1st to the 7th grades. Long story short, since I filled in at the cathedral on the pipe organ, I knew the Bishop at least to say hi. I arranged a meeting between Tribal Peacemaker Paul Raphael and the Bishop. When I wrote to the Bishop, he replied, “I don’t know how to stop it (Catholic sex abuse in general).”

At first Peacemaker, Paul didn’t want to meet the Bishop. He had not been abused. He had been told to turn around and watch TV. The nuns only abused dark-skinned Indian boys. Peacemaker Paul asked me how meeting the Bishop would help them. I said, “It won’t. But it will help the Bishop and maybe stop a child from being abused.” When I met Peacemaker Paul at the Diocese, I could sense how difficult it was for him to face his evil.

I introduced Peacemaker Paul to the Bishop. I held their hands and I prayed to Jesus, Mary, Joseph and Tecumseh. I left them and waited outside with my husband. Don said if it only takes a few minutes, this didn’t work. They talked for over an hour. When Peacemaker Paul left us, it was the first time I saw him smile.

The end result was the Bishop issued a formal apology in the local newspaper. This meant a lot to the tribe. When I first asked about this horror, one priest I worked for said, “There’s no bonafide evidence to prove that happened.” This will sound familiar to timeshare victims, especially in Florida and Nevada.  

The four-part articles about the abuse were published in 2008.

https://www.northernexpress.com/news/feature/article-3760-unholy-childhood/

I was introduced to Whistleblowers of America over a year ago. A veteran I helped introduced me to the organization. Last summer I attended the Whistleblower Summit in Washington D.C.  This summer I have been invited to be a panel participant. I will explain the advocacy “bug” one catches when a troubled life you touch turns calm and I will explain how fighting predators, whether child abuse or timeshare, is similar. I met OpEd News at the summit:

https://www.opednews.com/articles/Catholic-Predators-Compare-by-Irene-Parker-Predator-180901-986.html

The Unholy Child School of Jesus experience led me to become a Court Appointed Special Advocate (CASA) volunteer. I raised enough money through car shows and with the help of a grant writer, to work two years to develop and launch Fostering Futures, a program to assist teens ageing out of foster care.

Evil #3 is predatory timeshare sales. There are timeshare sales agents intentionally harming the young and the elderly. Perpetrators can earn top dollar, sometimes over $2 million a year. I have many horror stories. Leo Gomez last words to me before he died of pancreatic cancer were, “I want my story told.”

I have been described by one timeshare developer to Attorneys General and the Better Business Bureau: “It appears they talked to Irene Parker, a third party, not a lawyer, not a professional journalist, a self-styled “advocate” helping her “clients.” It is of note that the member changed their story after talking to her. She purports to get people out of their legally binding contracts.”

What I do is direct a member like Leo Gomez to file complaints with regulatory agencies if the member describes unfair and deceptive sales practices.

Yes, Leo changed his story after talking to me. I bought the same points Leo purchased. It was not necessary for Leo to give up his points to switch from one program to another. Leo didn’t know he had been duped until he talked to me.

I first told Leo I did not hear anything deceptive, but when he told me he only had 30 days left to live, I was concerned. Leo was 100% disabled due to Agent Orange. He earned two Purple Hearts and was the sweetest man ever. I went to sleep that night but woke with one of my timeshare moments. I asked myself, “Why did Leo switch programs??”  I called Leo the next morning and asked. He said, “They said I had to because my resort went bankrupt.” My next question, “Leo, did the sales agent know you have pancreatic cancer when he told you this?” Leo answered yes. Leo was a victim of financial elder abuse. Leo is one of 102 veterans and active duty service members to report timeshare fraud.

https://www.opednews.com/articles/A-Fourth-Agent-Orange-Vete-by-Irene-Parker-Fraud-180917-513.html

As a result of Jayme’s murder, I was hospitalized three times between the ages of 24 to 28 for symptoms relating to PTSD. My undergraduate degree was financed by Vocational Rehabilitation. I credit my husband with saving my life. I understand why soldiers suffering from PTSD, survivor’s guilt, commit suicide.

I also helped a family who purchased from the developer who wants to depose me. Mom had given birth to a blue baby. The baby had to have open heart surgery in her first week of life and then a second surgery. The timeshare sales agent told the mom when she bought the timeshare that it would be easy to sell. Mom submitted an article about their financial hardship. She sent me pictures of the baby with a smile that broke my heart, the baby smiling with oxygen tubes in her nose.

The parents were stressed beyond words and worried about timeshare foreclosure. I sent a draft of the article to the timeshare company’s media department for comment. They resolved the complaint. The article was scrapped.

I did not remember the mom’s name or the baby’s name. I remembered the media contact’s name because he asked for an additional week to respond due to damage sustained from hurricane Maria. I said two weeks was fine. Right before the article was to be published mom called and said they had resolved their dispute. I recently found mom’s Facebook page and there was the baby. Beautiful and strong, sitting in a flower garden looking at what could be a butterfly, with that same smile.

That’s why I do this. I take calls from timeshare members desperate, angry and confused. When I tell them how to proceed with regulatory complaints, if they are dismissed with “You signed a contract” or “We are not responsible for what our sales agents say,” they become empowered.  

I hope this answers the questions two developers are likely to ask me, “What personal benefit do you gain from your efforts?”

I doubt the lawyers will understand or accept this answer. It’s the truth. I don’t think those so motivated by greed will be able to understand.

Self-help groups we feel are not industry influenced:

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, for all the great work you do for timeshare owners, Inside Timeshare knows that you get a tremendous amount of support from our readers and the members of the facebook groups you have helped to get started. Keep up the good work and let the industry be damned.

Friday’s Letter from America

Welcome to our Friday’s Letter from America, this week Irene Parker replaces the original article scheduled for today with her take on Are Timeshares Worth the Money in the Long Run by Women Who Money.

Latest news on the Nevada SB 348, the bill has been pulled possibly for a couple of weeks, this is due to the efforts of consumers. From our efforts 35 timeshare members posted comments, lets keep this going and increase that number to 350!

Unless timeshare buyers are given 24 hours to review a contract as ARDA is demanding from timeshare exit providers, we will continue to see consumers being pressured into purchasing there and then. As they say, what is good for the goose, is good for the Gander.

In the lawsuit against Marriott Vacation Club, a Florida Judge has sustained central claims in the class action against Marriott and their points based system. According to the article (see link below), “Consumer Deeds are invalid because they lack any cognizable legal description of a real property interest being conveyed as required by Florida law.”

https://www.nyrealestatelawblog.com/manhattan-litigation-blog/2019/april/florida-judge-sustains-central-claims-in-suit-ag/?fbclid=IwAR2wlVr8NIPBZj9Mcg8vVQI7_yHJvTHkIWTU4NdT9XEC8QANg0rfR9wmZrs#.XKZAISFvVH0.facebook

This is very similar to the reasons that points and floating weeks systems have been deemed illegal under Spanish timeshare law, they lack any substance, allowing only for the right of use, subject to availability.

Could this be the start of points based systems becoming illegal in the US, well we shall have to wait and see. Now for this weeks Letter from America.

Women Who Money

Are Timeshares Worth the Money in the Long Run?

What Timeshare Regulations?

By Irene Parker

April 5, 2019

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

House, Senate and Assembly Bills are flying across the country. On Tuesday we published a summary of proposed legislation and asked timeshare members to oppose Nevada Senate Bill 348, unless it can be amended to say timeshare buyers will be allowed 24 hours to review a contract, not just contracts with exit service providers.

There is no need to propose a bill requiring those who seek to buy a car be allowed 24 hours before signing a contract. Typically when buying a car, you shop, and a tag team of three against two doesn’t gang up on you for hours. We ask timeshare members to voice their opinion on NV SB 348 following the link in Tuesday’s article. Timeshare buyers should be at least offered 24 hours before signing a contract.

Timeshares are regulated by states. Since timeshare buyers typically buy a timeshare in a state other than their state of residence, lawmakers have little incentive to react to non-constituents. Lawmakers need to listen to those who bought a timeshare in their state, not just those who reside in their state. While some state Attorneys General seem to be on the side of the consumer, other states follow the mantra, “Verbal representations are hard to prove.”

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

From Women Who Money   

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

The most important things you can do if you’re considering a timeshare purchase is to take time to read every word in the contract. You’re given a mandated legal rescission period ranging from 3-10 days.

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

Timeshare expert and author of Timeshare for Dummies Lisa Ann Schreier agrees:

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

http://thetimesharecrusader.blogspot.com/

My husband and I used and enjoyed our timeshare for 25 years with no complaints, questions or Facebook posts. The points-based product does offer greater flexibility and the elimination of additional fees imposed by exchange companies. We’re not saying timeshare isn’t good for many, and there are not honest sales agents, but I am convinced, in speaking with timeshare members, current and former sales agents, managers and even an executive or two, “pitching heat” is on the upswing. Having sold everything from pianos to Charitable Remainder Trusts, I have never encountered a term as revolting as “pitching heat” as the industry itself describes the employment of unfair and deceptive sales practices.

Timeshare buyers should record their timeshare sales sessions in one-party states where legal. I would recommend not buying a timeshare in a two-party state. If you can’t record your presentation, proof will be hard to come by. One of our Supporters, Sheila Brust, has in her possession her “Pencil Pitch” that clearly denoted:

$8,631

-8,631

0

There was an arrow pointing to 0 and the word “saved,” indicating she would be able to cover all her maintenance fees using a program that unfortunately did not exist. A second buyer who bought from the same sales agent was also dismissed by the Florida timeshare reviewer. The Florida reviewer told Sheilah that she did not understand the program either until she spoke with the company attorney. What chance does the average consumer have if a Florida timeshare reviewer, who has reviewed hundreds, if not thousands of timeshare contracts, did not understand the program until she spoke with the company attorney?

“Hear no evil, see no evil” seems the norm in some states. As far as proof, 78 Platinum members, who don’t know each other, reported similar to identical complaints, often against repeat offender sales agents. I’m told that constitutes proof as it is a good faith investigation and a reasonable conclusion.  At the very least if Florida demands proof, make Florida a one party state.

Contact Inside Timeshare or a self-help group if you have questions or concerns about your timeshare.

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

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

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

https://tug2.com/Home.aspx

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

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

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

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

Thank you Irene for coming up with today’s article at such short notice.

Do you have any comments or views on any article published, if so use our contact page and let us know, we welcome your views.

Have you a problem with your timeshare, you don’t know where to turn or who to trust, again use our contact page and we will point you in the right direction. Remember there are many bogus companies out there, promising the earth and delivering nothing, do your homework before engaging with any company.

Have a great weekend and join us again next week.

The Tuesday Slot

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

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

URGENT AND TIME SENSITIVE

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

Nevada Needs to Hear From You

The Next Timeshare Legislative Battle is April 5 in Nevada

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

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

Introduction by Irene Parker

Comments by Nevada resident and Timeshare Advocate Michael Kosor

April 2, 2019

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

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

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

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

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

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

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

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

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

There’s more!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

There is much to challenge in McKelvey’s testimony:

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

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

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

Self-help groups we feel are not industry influenced:

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

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

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

https://tug2.com/Home.aspx

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

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

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

Friday’s Letter from America

Welcome to another Letter from America, This week Irene Parker writes about Americano Beach Resort and the lawsuit that has been filed regarding Foreclosure Proceedings, but first a quick warning to our European readers.

Another warning is being issued to those clients of Eze Group, a new firm has just emerged contacting consumers stating they have been appointed by the court to manage the return of money paid to Eze Group.

This company name is Egerton Advisory Limited, Company Number 10286171 and the registered address:

Eighth Floor 6 New Street Square, New Fetter Lane, London, United Kingdom, EC4A 3AQ

With an alternative location address registered as:

Q3 The Square Randalls Way, Leatherhead, Surrey, KT22 7TW

The directors are named as:

Victoria Noland Carter Egerton and William Luke Le Beward Egerton, both registered the New Street Square address.

The company was incorporated on 19 July 2016, but the filing history shows very little information or filing of any accounts.

As we have stated before, the courts do not appoint private companies or third parties to manage any payouts. No money has been awarded by Birmingham Crown Court to consumers of Eze Group, the O’Reilly‘s are now subject to investigation under The Proceeds of Crime Act, which will take some time to complete.

Along with Money Advice Limited, Claims Assistance Bureau Limited, Egerton Advisory Limited are fraudulent companies, if you are contacted by them or any other company with a similar story then let Inside Timeshare know and file a report to Action Fraud.

https://www.actionfraud.police.uk/

Now for this weeks Letter from America.

A Class Action Lawsuit was Filed against ARC Daytona Americano Beach Resort Contesting Real Property Foreclosure Proceedings are being Illegally Applied to Foreclose on Personal Property  

By Irene Parker

March 29, 2019

DC Capital Law, LLP filed a class action lawsuit on November 6, 2018, against ARC Americano, LLC and Americano Beach Lodge Resort Condominium Association on behalf of plaintiffs Gerald J Sohasky and Norma J. Sohasky in the Florida Circuit Court of the Seventh Judicial Circuit Volusia Civil Division.

According to the lawsuit, plaintiffs Gerald and Norma Sohasky allege illegal practices that violate the Florida Consumer Collection Practices Act and the Florida Vacation Plan and Timeshare Act by threatening foreclosure on a piece of personal property and threatening to charge up to 40% of amounts owed in collections, where the original contract or law does not authorize charging such collection fee. The ARC lawsuit contends “Floating Week” debt is consumer debt, incurred primarily for personal, household or family use.

Having read or listened to complaints from 746 timeshare members and owners, I am astonished by the level of stress caused by what is supposed to be a stress reducing product.  

Comment sent to Inside Timeshare

My parents bought into the Americano in the 90’s. Fast forward to 2017 – my 70 something year old mother, now a widow, had to pay for a service we hadn’t used in ages.

They (Americano) HOUNDED MY MOM about switching to the freedom 365 plan. She was a 13 year widow on a very fixed income and somehow we were pushed into signing for a new plan that would offer us huge hotel discounts and she would be able to stop paying after 5 years.

My mom is going broke!  Sara

My husband and I purchased an Ozark timeshare in 1985. A St. Louis native, we enjoyed years of vacations, but after moving to Florida we no longer desired to vacation in the Ozarks. I contacted the resort and talked to the manager I had gotten to know over the years. “Yeah, we had a board meeting and decided we can’t expect loyal owners who faithfully paid maintenance fees for thirty years, now older, to be held hostage,” she said. A few days later I received a one page form to be notarized, sent it back and that was that. We paid $8,000 for the timeshare in 1985. I had no regrets getting nothing in return as we had used the timeshare for many years. Like Sara’s mom, and many in my age bracket, we are losing hips, knees, eyesight and spouses. The thought of going to the Ozarks alone, should something happen to my spouse, is depressing.

Americano is demanding owners, many who have owned at Americano for decades, spend an additional $5,000 to $6,000 to join a Freedom 365 Travel Club in order to be released from their deeded weeks. Making this mandatory for seniors seems unfair. Granted, the resort is in need of funds as Americano is the only Daytona resort still not opened after suffering hurricane damage, but other developers now have voluntary surrender programs for members in good standing. There may be a fee, but the fee is less than $1,000. Don’t forget that we were all told we were buying real estate so no problem selling the timeshare should we need to dispose of it. In a statement made by ARC’s law firm, they assert they will work with owners to find appropriate alternatives but typically for seniors, a Travel Club is the last thing needed. I’m looking at long term care plans.

The issues related to property damage are complicated. When Americano owners contact me, I explain that if they bought a primary residence condo, and the condo is rendered uninhabitable, the assessment fees don’t stop. It would be difficult to sell an uninhabitable condo. I understand ARC’s argument from this perspective.

Due to pending litigation, ARC’s response is from their attorneys. I have found others at Americano willing to listen and weigh in consideration; the harm timeshare exit in general is causing especially seniors. Let’s hope continued dialog will result in some form of relief for angry and frustrated owners.

Below is the response we received from ARC’s attorneys. Contrary to the attorney’s response, this article will not be disseminated to some of the Americano owners. Some Americano owners do read and share our articles. We sent a draft of today’s article to ARC to give ARC an opportunity to correct any inaccuracies, which they corrected. Inside Timeshare is published from Spain. Following ARC comments, are arguments presented by the plaintiffs’ attorney taken from the lawsuit complaint. A legal expert weighs in. Plaintiffs’ attorneys did not respond.

Response from ARC’s attorneys submitted by ARC President Scott MacGregor:

This information is given to correct inaccuracies to be contained in a publication that will be disseminated to some of the owners.  Americano is a Legacy resort that was severely damaged due to the recent back to back hurricanes, 2016 Hurricane Matthew and 2017 Hurricane Irma. There was one Special Assessment for $4,348,109, not $15 million, which will correct the incorrect reference in the article. The Association continues to seek insurance from its carriers, but had to pursue litigation to address the claims. The Developer is seeking financing and other options for the remaining restoration of the Resort estimated to be $15 million plus. However, it is imperative that all owners pay the maintenance fees, taxes and assessments as required under the Declaration and Florida law. It is fundamentally unfair to the paying owners for other owners not to pay to operate and restore the resort.

The Association is faced with vigorously defending any lawsuit against the Association, which litigation will only increase fees and costs to all owners, as required under Florida law, at the Resort. While our trial legal counsel has stated that no comment should be made at this time concerning any lawsuits, the Americano Beach Lodge Resort is a real property timeshare under Florida law and actions taken are authorized and required under the Declaration and Florida law.

The Developer and Association continue to try to work with each owner to find appropriate alternatives as discussed before. Owners are encouraged to seek ownership and payment options through the Association and Developer.  Lawsuits against the Association will not only increase maintenance fees and assessments for all of the owners due to legal and professional fee expenses, but also may leave those owners with potentially expensive legal bills in addition to their ongoing obligations to the Association. We believe it is much better to work together to resolve the issues that everyone is facing rather than unnecessarily expend owner and Association funds and resources that are needed to restore the Resort, for court expenses.

More from Sara:

They used scare tactics to convince my mom that I would be responsible for the timeshare in the event of her passing, and my children would be responsible after I passed. I have learned this is not true.

The Freedom 365 plan supposedly offered us huge hotel discounts and would allow my mom to stop paying after five years.  We attempted to use the Freedom 365 plan. The first two times we used it we did get a good discount on hotel rooms, but after that the deep discount was no longer available. We got a good rate the first time at $93 for a Hyatt room, but when we later tried to book the same week of the year the price was $100 more, about $170 plus tax. I called and asked why it was so much more. They stated they could price match if we got a better price on another website. What good is that? You don’t have to pay any kind of upfront money, financed by a loan, to book a hotel room using an online service. We were promised the best deals. We were promised so much and at what cost? My mom is going broke! The amount financed was $6,000.

Following are allegations made in the lawsuit

Is a “Floating Week” timeshare real estate or personal property?

If the timeshare is defined as personal property, the lawsuit claims foreclosure rights do not legally exist and are in violation of the Florida Timeshare Act.

I’ve had many discussions about timeshare foreclosure questioning whether a timeshare really is real property. I found the requirements governing real vs personal property foreclosure in Texas helpful:

Comparison of Texas Foreclosure Procedures for Real property and Personal Property

Real property and personal property foreclosures are dramatically different. Real property foreclosures are conducted on the first Tuesday of each month between the hours of 10:00 a.m. and 4:00 p.m. at the courthouse door in the county in which the real property is located, with a notice posted at the courthouse door, personal notice to the debtor, and filing of the notice with the county clerk, all 21 days before the foreclosure sale. These requirements are defined by § 52.001 of the Property Code and are unique to Texas law. Personal property foreclosures are conducted under § 9.504 of the Texas Business and Commerce Code, which generally requires a commercially reasonable sale. The requirements of Article Nine of the Texas Business and Commerce Code are followed, with some minor variations, by all states except Louisiana.

According to the ARC lawsuit, plaintiffs purchased only the ability to make a reservation rather than ownership in real property. In the “Floating (or flex use) periods and The Timeshare Plan article of the Declaration, the Declaration makes it very clear that the Warranty deed of an “owner” who switched  to Floating time to become a member of a “Right to Use” program renders the deed worthless and provides none of the requisite rights associated with real property.

I asked an expert, as argued in the lawsuit, if switching from a “Fixed Week” to “Floating Week” would render the “Fixed Week” deed worthless.

Purchasers still own that deeded week and it can be found in land records. The purchaser simply surrendered their right to occupy that week and the use rights that went with it in exchange for a floating week use right. Their interest, however, is tethered to an actual real property ownership (even if they cannot legally possess it). If they sold their interest, they would be selling the deeded week they bought which would include the surrender and exchange agreement for a floating week. By the same token, if they are foreclosed upon for non-payment, it would be the deeded week that would be foreclosed and the agreements tied to it (i.e., the floating week right) would be rendered null and void.

As an analogy, let’s say you join a car-sharing group where everyone in the group can use whatever car is available using a reservation system. In order to get into the group, however, you are required to purchase a car to add to the fleet. You don’t buy the car outright; you finance it through the group such that your monthly dues are part car payment and part fees. Even though you hold title to one car in the fleet, you have no more right to use that car than anyone else in the group. If you fall behind in your monthly dues, you will lose your car-sharing membership (i.e., the use rights you bargained for), and the car that you added to the fleet (i.e., the tangible property you hold title to but surrendered possessory interest in) will be repossessed by the group.

Note from Inside Timeshare: Spanish Timeshare Law prohibits Floating Weeks and Points as there is no tangible product and they lack any substance.

My unnamed source is not saying the lawsuit is without merit, in that they feel the underlying real property is illusory, but they feel it may be a tough argument to win.  

Related articles:

Timeshare Foreclosure Explained to Lenders     

What happens if I stop paying my maintenance fees? Timeshare attorney Mike Finn answers the question in this article:

Proprietors behind Americano are ARC American Resort Collection

www.arcresorts.com/about-arc/

Self-help groups we feel are not industry influenced.

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

https://tug2.com/Home.aspx

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

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

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

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

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

Thank you Irene, next week in the Tuesday Slot we welcome Mike Kosor with his response to the Wyndham Sr VP Jason Gamel and his testimony to the Florida HB 435 workshop.

Join us again next week and have a great weekend.