Browse Tag

John Kim

The Tuesday Slot with Irene

Welcome to the Tuesday Slot, this week we have another “Nightmare on Timeshare Street”, involving another serving member of the armed forces, USAF First Sergeant John Kim, on his experience with Bluegreen. John is not the first serving member or veteran of the armed force or law enforcement that have been in contact with Inside Timeshare, all their stories are the same, with some likely to lose their security clearance and therefore their jobs. This “Nightmare on Timeshare Street” must end, not just for these people but also the elderly we have highlighted, but all consumers. The industry needs to get their act together and reign in the lies and untruths of their sales agents.

At the end of today’s article is a report and a link to the breaking news that Bluegreen have had their stock downgraded by Bank of America Merrill Lynch. Apparently this is due to underperforming in the sales sector, well, what do they expect, the truth is getting out, new purchasers have heard the horror stories and are voting with their wallets. Yes folks, the timeshare industry really does need a severe shakeup or it will collapse!

We now issue another warning on a dubious company that has just come to light, cold calling timeshare owners: General Legal Associates, with the website https://generallegalassociates.com

Their contact details are:

Telephone:01274 792844

Address: 82 Horton Grange Road, Bradford, York’s, BD7 3AQ

According to Google streetview this address is a pharmacy

https://www.google.es/maps/place/82-84+Horton+Grange+Rd,+Bradford+BD7+3AQ,+UK/@53.7881897,-1.7782203,3a,16.9y,340.7h,87.81t/data=!3m6!1e1!3m4!1shM_j9C-Rff7Vf9ZsHRKImQ!2e0!7i13312!8i6656!4m5!3m4!1s0x487be6c777f11505:0xf23dda2c0d4c8979!8m2!3d53.7881719!4d-1.7776776

Email on the web: [email protected]

The website shows very little information regarding timeshare, the about section is to say the least, looking a little far fetched. It was registered only in September 2017, yet some of the testimonials go back to February 2017?

According to the callers named as Lisa Reid and Emma Newton, a court case has already taken place against a bogus company the timeshare owner has had business with in the past (scammed). The court has awarded them a huge amount in compensation, even though the owner did not even know they had a case in court. As usual, to release this money a huge percentage needs to be paid by bank transfer to APS Bank in the name of Universal Consulting.

This is obviously another “scam”, there is no company with this name registered at company house, there are no court cases where consumers haven’t instigated the proceedings and the courts do not operate in the way this company suggests. So beware these type of calls, if in doubt contact Inside Timeshare for further information on any company that makes contact with such claims.

This company was first highlighted by Mindtimeshare.

Now on with our main article.

Why Military Lending Oversight should not be Weakened and why Timeshare Lending Practices can Pose a National Security Risk

Air Force First Sergeant John Kim’s Bluegreen Experience

August 21, 2018

The Trump administration is planning to suspend routine examinations of lenders for violations of the Military Lending Act, which was devised to protect military service members and their families from financial fraud, predatory loans and credit card gouging, according to internal agency documents.

New York Times, August 10, 2018

https://www.nytimes.com/2018/08/10/us/politics/mulvaney-military-lending.html

The already weakened Consumer Financial Protection Bureau has taken the next step towards becoming the Corporate Financial Protection Bureau. Volunteer staffed Timeshare Advocacy Group™ has heard from 535 timeshare members, of which 70 are veterans or active duty members of the military or law enforcement alleging timeshare fraud.

If an active duty member of the military falls for a deceptive timeshare sales presentation, the after effects can include the loss of his or her security clearance. This is due to a foreclosure being reported on their credit report. Sometimes this can also lead to the loss of a career. One Marine lost his security clearance and his air unit command due to a timeshare foreclosure. It is not uncommon for a timeshare foreclosure to involve amounts of $100,000 or more.   

Air Force First Sergeant John Kim made this YouTube hoping to warn others not to fall victim to high pressure same day timeshare sales and to encourage readers to become involved with others who face foreclosure.

https://www.youtube.com/watch?v=izC_RzfD788

According to the Federal Trade Commission’s 2017 fraud report, these figures include all travel scams,

Travel, vacation and timeshare fraud reported losing the highest individual loss amount and the report also stated the median fraud loss reported by members of the military were more than 44 percent higher than the general population, a median loss of $619 compared to $429 for the general population.

https://www.ftc.gov/news-events/press-releases/2018/03/ftc-releases-annual-summary-complaints-reported-consumers

Unfair and deceptive trade practices are defined by Section 5 of the Federal Trade Commissions Unfair and Deceptive Trade Practices Act. Predatory and deceptive timeshare sales practices include:

  • High-pressure and aggressive sales,
  • Unaffordable loans, after being told it would be easy to refinance,
  • Unauthorized opening of credit card accounts,
  • Unauthorized credit card charges,
  • A perpetual contract,
  • Little or no secondary market

If a timeshare is sold properly, it is of great benefit to a family, but if the timeshare is grossly oversold in terms of being an investment, or being easy to sell, the decision to buy can spell financial disaster. Accompanied by annual maintenance fees and the lack of a secondary market, the buyer can find himself stuck with a timeshare they don’t want or can’t afford, facing foreclosure for the first time in their life. No one can guarantee a release from a timeshare contract. The foreclosure process is demoralizing and stressful. Scams abound, so do not pay anyone upfront money to get out of a timeshare without checking with Inside Timeshare or one of the self-help groups listed below.     

Air Force First Sergeant John Kim and his wife Glory, of South Carolina describe their battle with Bluegreen Vacations. John has joined TAG as a volunteer to advocate on behalf of other active duty service members, and to help guide disgruntled buyers through the regulatory filing process.   

“My wife Glory and I realized our mistake when we filed our 2017 taxes. We purchased about $60,000 worth of Bluegreen vacation points financed at 16.99%.  The first purchase was in April 2017 at The Fountains in Orlando, and the second purchase June, 2017. We had been told the June meeting would be an orientation meeting, but it was just an attempt to sell us more points.  We were told at both meetings we could go to our bank and refinance as you would any mortgage. We have learned banks don’t finance timeshares,” explained John. In addition, John reports being told,

  1. Bluegreen points are an investment, like a mortgage. It was emphasized that we were purchasing deeded property (which it is not), so an investment. We have learned Bluegreen vacation points are a right-to-use product, like joining a fitness club. Managers assured us we were making a sound “financial investment” and in years to come, we would be able to sell our portion of Bluegreen for a profit because we would have a deed to Bluegreen Vacations properties.
  2. We could deduct the interest from the loan on our taxes, as you could with any mortgage. This was not true.

Bluegreen previously reported nonpayment of timeshare loans as foreclosures, but no longer does so. Bluegreen and credit reporting agencies Equifax and Experian entered into a settlement in a class action lawsuit brought by the Finn Law Group on behalf of Bluegreen owners that resulted in 11,000 former Bluegreen members’ negative accounts being deleted from their credit reports.  Bluegreen, Equifax, and Experian also agreed not to report foreclosures in the future for Bluegreen members. Some timeshare companies do report a loan default as a foreclosure.

“We bought in Florida. I understand the Florida Timeshare Division, DBPR, will in all likelihood, echo Bluegreen’s defense with, ‘You need proof and verbal representations are hard to prove.’ With no real regulation, we want our voice heard. Don’t believe a word a timeshare sales agent says. I filed complaints with the Attorney General for the States of South Carolina and Florida, as well as the Federal Trade Commission, the Better Business Bureau, the Fraud Officer of Orlando Florida Police Department, Department of Defense investigative services for the Air Force, Army, Navy and Coast Guard and the AARP Fraud Watch Organization. Nothing happened. Our message – buyer beware.”

If you, or anyone you know has a timeshare concern, contact Inside Timeshare or a self-help group.

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

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

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

Bluegreen Vacations Corp (NYSE: BXG) reported second-quarter earnings Aug. 2 that fell short of analyst expectations. Bank of America Merrill Lynch’s Shaun Kelley downgraded Bluegreen Vacations from Buy to Underperform and decreased the price target from $26 to $19.

Total Q2 revenue of $195 million was beneath Kelley’s forecast of $208 million. Bluegreen reported 8-percent lower tours, while vacation ownership interest sales were up only 3.4 percent year-over-year when the analyst was expecting a 10.4-percent increase.

https://finance.yahoo.com/news/bluegreen-vacations-interrupted-sell-side-190725946.html

Once again a very hard hitting story, it is obvious to everyone, except that is the timeshare industry, that change is needed, no longer should sales agents get rich by telling lies to gain a sale. The companies that employ them should be held accountable, it is no longer acceptable for companies to use the phrase “WE ARE NOT RESPONSIBLE FOR WHAT OUR SALES AGENTS SAY”, they are responsible, they are the employers, it is their product that these agents are selling!

If you have any comments or questions regarding this article or any other published, then use our contact page, Inside Timeshare welcomes your input.

Been contacted by a resale, cancelation or claims company, found one on the internet and you are not sure if they are genuine, then contact Inside Timeshare and we will point you in the right direction.

Relinquishment and Claims: A Quick Guide

Over the past few weeks, Inside Timeshare has received many enquiries from readers regarding cancellation of their timeshare contracts, known as relinquishment and making a claim. Today we give you some very basic information on these subjects.

Many owners are now getting on in years, their circumstances have changed, for instance they have retired and no longer want the expense of the maintenance fees. For some it is how they holiday that has changed, no longer using the timeshare or the exchange programs available.

Getting out of the contract is a minefield, there are many companies out there who promise to do this for you, some are genuine some are not. But all have one thing in common, the cost!

Before you even think about engaging a company to do this for you, it is always advisable to contact your timeshare company or resort first, just to check if they have a system in place which allows you to surrender your timeshare. This may just save you a lot of money and also gives you the piece of mind it has been done correctly.

Beware the companies that use the “bait and switch” methods, either promising a sale or cancelation, only to attempt to sell you another product when you attend the meeting, these will either be a holiday club or lifestyle package, promising huge discounts. All you will be doing is swapping one product for another, at a very considerable cost.

Then we have the proliferation of “claims” companies, many of these will offer a “no win no fee” claim. This is to get you interested in attending a meeting, then you will be subjected to a lengthy pitch as to how the claim will be processed. Then comes the crunch, the only way you can do the “no win no fee” claim is to pay them considerable sums to “cancel” your timeshare first.

The claim itself may never materialise and in many cases the owner finds out that nothing has been done and they are still liable for maintenance fees. Their particular timeshare company or resort does not recognise the company and will not deal with them. They are only interested in getting your money!

Club la Costa has issued numerous warnings about this subject, they have categorically stated they will not deal with these third party claims companies, only with the member direct. In fact CLC has a program in place whereby they will let out members for free. Maybe this is a move to stem the tide of claims that are now going through the Spanish legal system. But at least they are offering a way out which will not cost their members a fortune.

If you are unable to do this yourself then using a reputable law firm may be the only answer, but first you should always do your due diligence.

As for making a claim, in Spain the law is very clear, if the timeshare was purchased or upgraded after January 1999 and it falls foul of the timeshare laws, then you have the right to take it to litigation. The main points for a claim are:

  • Contracts which are longer than 50 years, commonly known as perpetuity;
  • Points or floating week systems, in may cases this also includes fractional.
  • Deposits or any payments taken within the 14 day cooling off period, in many cases the courts have now extended this to any payments within 90 days of signing.

These are just the basics, there are many more points which a good lawyer will also use to bring the case to court, not just the timeshare laws, but also Consumer Law and Mercantile Law.

The process for making a claim is the Spanish Courts is not a quick procedure, it can take upto 18 months for a case to reach conclusion. Then this may be delayed due to the timeshare company lodging an appeal, this is all done to add frustration into the equation.

By taking a case to litigation through the Spanish legal system also requires the use of a competent registered lawyer, who also has the experience in this field. Not all lawyers will understand the complexities of timeshare contracts. A good example is one German client who decided to use a German lawyer registered to practice in Spain, just because he was German. This lawyer did not know timeshare laws, but because of the rulings by the Supreme Court he thought it would be easy.

This particular lawyer informed his client to stop paying the maintenance as soon as he took on the case. When the case eventually came up at the court in Maspalomas, he lost. The timeshare company argued before the court that the member was now in breach of contract as they had not paid the maintenance. The court agreed.

This particular client has now paid the original law firm which they rejected , to take proceeding against the lawyer for wrongful advice, plus to make an appeal using the relevant laws. A very costly experience for this client.

Over the past few years we have also highlighted several “fake” law firms, these tend to inform the owners that their timeshare company is about to be taken to court and you can be part of this. First they need an amount to file the case at court, using the “fake” procurador who has to be paid.

Then a few weeks later you get the good news that the director of your timeshare company pleaded guilty and you have been awarded a substantial amount. Firstly, ask yourself this question, when is a director of a timeshare company going to plead guilty?

Now there is the matter of paying “tax” to get your money, this will usually be around 20% of the awarded amount, this is alway inflated to bait you in. Many of the documents we have received from readers who started to believe it, have been nearly three times what they originally paid.

If you believe that you have a claim and want to know more, then use our contact page, we will go through it with you and check if you do actually have a possible case. We will also let you know what the procedure is, the breakdown of the legal fees and what they are for. These do need to be paid to take a case to court, you will not find any Spanish law firm that will take these cases on without these costs.

Just want to cancel your timeshare, then again use our contact page, let us know what timeshare you own then we will be able to explain how you can do it yourself.

Remember, not all companies that contact you or you find on the internet are genuine, many have been set up with just one goal, to take your money and run. Do you homework, check, check and check again, not sure, then ask us. We will point you in the right direction.

In the Tuesday Slot tomorrow, we tell the story of US Air Force First Sergeant John Kim and his experience with Bluegreen. It is another of those “Nightmare on Timeshare Street” stories involving either Veterans, serving military or law enforcement personnel.