Welcome to the start of another week with Inside Timeshare, we start this week with a press release from Canarian Legal Alliance and their ongoing court cases against the timeshare industry on behalf of their clients, along with news released late on Friday.
The Spanish Courts around the country are going to be very busy this week, in total CLA have 31 cases appearing before the courts, these are a mixture of pre-trial and full trial cases, that is an average of 6 trials per day. It now remains to be seen how many of these pre-trial judges will follow other courts and decide to issue judgements rather than send them for the full trial. If so this will certainly speed up the legal process.
On Friday, the news came in from the courts that Anfi had lost another 4 cases, 3 at the Courts of First Instance and 1 at the High Court. All contracts have been declared null and void. In total Anfi have been ordered to pay out over 100,000€.
In Tenerife, Silverpoint have also been on the receiving end of a High Court judgement, in this case, High Court Number 3 has reaffirmed the sentence of the Court of First Instance, after Silverpoint appealed. The judgement is that Silverpoint must pay out over 24,000€ plus legal interest along with the contract being declared null and void.
It was also announced that in the long running and ground breaking case at the Supreme Court, of Mrs Shirley Wilson versus Silverpoint, she finally has received her award into her bank account. You will remember from previous articles, her case was the first at Spain’s Highest Court against Silverpoint, it took many years of appeals and counter appeals to get this case heard.
Eventually the Supreme Court declared her contract with Silverpoint null and void on the basis she was a consumer and her contract did not meet the requirement of Spanish Timeshare Law 42/98. This long running case was due to Silverpoint insisting that she had not purchased timeshare, but had “invested” in apartments and weeks for resale. This is the basis for many of the cases against Silverpoint, many hundreds of clients were duped into purchasing several weeks and apartments, which would then be placed on the “resale program”.
As we know these “resales” never happened, the clients were told that what they had purchased was not selling, but to secure and save their “investment” they would need to upgrade to better quality apartments and weeks. This scheme went on for years, with many losing tens of thousands of pounds each. The vast majority of these clients were also given Barclay Partner Finance loans to pay for the purchases, all arranged by Silverpoint in conjunction with BPF, no doubt receiving huge commissions for the loan agreements.
Today we are seeing a similar scheme which is trying to circumvent the law, they call it “Company Participations”, in essence the purchaser buys “participations in a “company” which is actually an apartment registered as such. Again there is the promise of profits to be made. But having seen the contracts, they are stacked against the purchaser and in favour of Silverpoint.
First we take a look at the Criminal Action, this was proposed by the law firm Kaehler Abogados, he believed that what Resort Properties / Silverpoint were selling was classified as a fraud. This involved the selling of multiple timeshare weeks as “investments” in property, with a view to renting for an income and eventually going on the resale market with a return of around 15% to the purchaser.
As it turned out, the hundreds of consumers found out too late that what was actually happening was they were being continually upsold to higher standards of apartments / weeks. The reason they were given was what they had originally purchased was not selling as it was not what the market wanted. The only way to secure their “investment” was to pay even more money to upgrade to the better quality apartments.
Many of these transactions were funded with loan agreements brokered by Resort Properties / Silverpoint using Barclays Partner Finance agreements. The promise was that after two years the weeks would be sold and that would then cover the loan amounts and settle the agreements.
In reality this did not happen.
The first cases went to court and a long drawn out legal battle ensued, at the time it was dubbed as the largest fraud in timeshare history.
Unfortunately these cases floundered, Silverpoint successfully argued with the courts that these were property investments and not timeshare, therefore the purchasers were not consumers of timeshare but investors in property. As we know property can go down in value as well as up.
The courts at the time agreed, that these purchasers were buying into property investment, so they believed that no fraud had been committed.
At the same time the other school of thought was beginning to use the civil courts and the timeshare laws to pursue Silverpoint. The most notable case being that of Mrs Shirley Wilson, who instructed the proponent of civil action Miguel Rodriguez Cabellos to fight her case.
Mrs Wilson, argued that she at first believed she was investing in property, but it turned out it was in fact timeshare as there were maintenance fees attached along with other aspects of timeshare.
(Click on the link below to see the original trial)
Again a long drawn out legal battle was underway, with the case eventually going all the way to the Supreme Court.
Then in January 2017, the Supreme Court made its historic ruling, that what Resort Properties / Silverpoint had sold was indeed timeshare. That the purchasers were indeed consumers of timeshare and not “investors”, which also meant they now had the full protection of the timeshare laws.
For the hundreds of clients who had been part of the criminal action this was very good news, it now meant their cases could be converted to a civil action using the now many rulings on timeshare law from the Supreme Court.
Canarian Legal Alliance under Miguel and his team of lawyers were now responsible for representing these clients. They were offered the chance of converting their cases to the civil courts.
One of the first client to do so has now had his case heard and the courts have found in his favour, according to the rulings of the Supreme Court. The Court of First Instance No 5 in Arona, Tenerife has declared this clients contract null and void, his original claim was for 60,000€, the court has awarded him 88,113€.
This is obviously good news for the hundreds of clients who took part in the original criminal cases, they now have the chance to receive the justice they have for so long sought, with many of them having already converted to the civil action. So we can be sure that there will be many more stories such as this in the coming months.
Below is another link to a Youtube video which shows the then Sales Director David Taylor giving another “investor” the run a around.
In another twist, Silverpoint have another product which is very similar to the original “investments” deal, this they call the “Company Participation Scheme”. It is a very clever attempt to bypass the timeshare laws, although looking at the documentation it certainly looks like an advanced form of timeshare. More on this at a later date.
Inside Timeshare would like to thank CLA for the background information used in this article.
If you have any questions or comments about this or any article published, then use our contact page, we look forward to hearing from you.
Welcome to Friday’s Letter from America, the last one for 2017, this week Irene looks at the past year from across “The Great Lake”, while we look at the past year in Europe.
Our first article of 2017 was about the family of fake lawyers from Tenerife, Litigious Abogados, it highlighted a new firm called Abogacia Española, which happens to be the name of the official website to check the validity of lawyers registrations. This was a very good move on the part of this well planned out fraud, as it did give an air of legitimacy when you did a web search.
Since then, we have seen many incarnations of this fake law firm, although the names have changed, one thing hasn’t, that is the nature of the fraud. They are still duping consumers into believing that they have a case at court, then to be part of it you need to pay the Procurator fees. That is only the start, it get even more sophisticated. Search Litigious Abogados for the full story.
This was a great blow to the RDO, as Silverpoint was also a major contributor. Funds this organisation could ill afford to lose. It has since come to our attention that the RDO is to form a partnership with ARDA (American Resorts Development Association). This particular organisation is well endowed with contributions and is very strong in the world of lobbying for its members. So it begs the question is the RDO going to be taking on board the tactics of ARDA?
Staying on the subject of Silverpoint, January was a momentous time on the legal front, with the Supreme Court making their first ruling against this company. This was the case of Mrs Shirley Wilson and her long battle against the selling tactics of Silverpoint.
Within a week the highest court in Spain ruled three times against Silverpoint, opening the doors for many more cases against them. Since then the rulings have been coming in thick and fast, leaving no doubt that what they had been selling was illegal.
February brought the news that Alberto Garcia had “stepped down” from Mindtimeshare and that the RDO would not be renewing the contract with that “Consumer Association”. Alberto Garcia for many years had been running the RDO’s“Enforcement Programme”, attacking any company which threatened the timeshare industry. This has now been given to Kwikchex and the “Timeshare Taskforce”, run by Chris Emmins.
Throughout the year, Inside Timeshare has been following the Anfi “Tauro Beach Project”, this has been a story that has now seen the former head of the Coastal Authority being charged with falsifying official documents and wrong doing in public office. No doubt we will see his trial sometime in the new year.
This project was to build a man made beach at Tauro, with the building of hotels and a shopping center. This was given to Anfi to run for 50 years, the Government of Gran Canaria is now seeking in the courts to remove these concessions in the light of the evidence of malpractice. This story is not over yet.
Anfi have been on the receiving end of many Supreme Court rulings since March 2015, they however have continued to deny any wrongdoing and inform their members that they have not lost any cases. In fact they have embarked on a campaign to attack Canarian Legal Alliance, trying to sow seeds of doubt among their clients. Below is a link to a video showing the National Spanish TV news on TVE 1, in this clip, one of the CLA lawyers explains the Supreme Court rulings. For the National Television to broadcast this item shows that CLA is doing what they say and that Anfi is trying to divert attention from this.
Another story we have been following is that of Los Clavelesin Tenerife and the battle for control of the resort. Again this is an ongoing story which at present seems to be dragging on. It revolves around the selling of Wimpen to ONA Grup, who were the managing company of this resort. Their contract has been ended but they still seem to be trying to run the resort against the wishes of the Owners Committee.
There has been a lot of argument on this issue, with some very nasty consequences, it is clear that this issue is not going to be resolved in the near future. It may also end up being a rather costly one with only the lawyers benefiting.
In July we published a rather different article on the timeshare world, this was a positive one, featuring a company that we have not been able to find any adverse comments or complaints. It is off course Disney.
This is a shining example of how the timeshare industry should operate, fair, truthful and with the consumer in mind. There again, it is what we expect from an organisation which prides itself on putting people first.
After a long reign TATOC finally went into liquidation, with Harry Taylor and TATOC being totally discredited. For years this organisation has duped not only timeshare owners but also organisations such as Citizens Advice Bureau. Any owner that went to CAB with a problem would be recommended TATOC as the place to go. Little did CAB know that this organisation was funded and basically run by the industry. All we can say is good riddance to a very bad and foul smelling egg!
There have been so many articles it is difficult to review them all, but Inside Timeshare has highlighted some of the most dodgy companies that have emerged over the course of the year. These articles have saved many readers considerable sums of money, we intend to continue with this.
But before we go on with Irene’s roundup of the year from the US, we finish with the news of yet three more sentences issued by the courts. On 27 December the Court of First Instance in Maspalomas declared yet another Anfi contract null and void with the client being awarded over 29,000€ plus legal interest.
On the same day the High Court in Tenerife announced another ruling against Silverpoint, with the contract being declared null and void and the client in this case being awarded over £9,000 plus legal interest.
There then followed on the 28 December another Supreme Court ruling from Madrid, this was number 82! Again the company was Silverpoint, with the contract being declared null and void and an award of over £23,000 plus legal fees and legal interest.
These cases were brought on behalf of clients of Canarian Legal Alliance, so this does show this law firm is doing what they say.
Now for the year from a US perspective.
What Timeshare Members Can Look Forward to in 2018 and what
I wrote looking forward to 2017 on December 26, 2016
Our Advocacy Group did not have a name one year ago, or a Facebook page. Our advocacy Facebook page was launched February 2017 and Timeshare Advocacy Group™ April 2017. As I write this, our advocacy Facebook page has 706 members. We encourage industry observers, as long as they are respectful.
Back in February, I remember scrolling down my Facebook feed, a pianist, waiting with nervous flute, oboe, trumpet, and bassoon middle school students for our competitions to begin, when I suddenly saw a post called “Diamond Resorts Owners Advocacy” launched by an economics professor. This Facebook page was launched in response to a draft article I had written and distributed, requested by a few former timeshare sales agents who felt the practice of “pitching heat” to sell vacation points needed to be addressed and brought to the attention of the general public. Based on reader responses, only Disney Vacation Club seems to disavow this sordid selling technique.
Our professor also prepared this mission statement for our DRI advocacy group, but as our Inside Timeshare readers started to reach out to us asking for help with timeshare issues concerning other timeshare companies, I borrowed our DRI mission statement and generalized it to apply to all timeshare companies.
We seek to provide timeshare members and owners 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.
April 2017, a former Diamond sales agent contacted me, urging me to write a press release as she was worried Diamond members were not aware of the Arizona Attorney General’s $800,000 DRI settlement and the Assurance of Discontinuance announced December 23, 2016. There was a May deadline to file a complaint.
This former timeshare sales agent said we needed a Facebook page so that readers had somewhere to respond. I didn’t even know how to use Facebook until I got mad at timeshare July 2015, but I struggled through the establishment of a Timeshare Advocacy Group™ page, delighted to find a butterfly with a “Knowledge Speaks, but Wisdom Listens” quote by Jimi Hendrix. My first concert I attended in high school was Jimi Hendrix, second row, in front of the mic.
I expected my new creation to last for a month or two, until the press release ran its course, but it continues to receive views. We consider this Timeshare Advocacy Group™ Facebook a clearinghouse of articles written about all timeshare companies and are grateful to all our volunteer admins for both Facebook pages.
Now a look back to what I wrote December 26, 2016 with updates
Timeshare Lawsuits 2017
By Irene Parker, December 26, 2016
Our Inside Timeshare mission is to offer timeshare owners accurate reporting on both the good and bad aspects of timeshare today. While we admit we bear more to the negative side of timeshare reporting, this thirteen page report from the US Department of Justice listing timeshare scams explains why:
The other reason is because the industry is not well regulated. Timeshare owners do not have the level of organization or funds necessary to compete with timeshare developer lobbyists. Lobbyists used to primarily direct their efforts towards influencing lawmakers, but more and more efforts are now being directed towards influencing US Attorneys General:
Looking to 2017, we need to look back and reflect on timeshare’s unresolved and continuing legal battles. Timeshare developers, former timeshare sales agents and solicitors, timeshare owners, federal and state regulators and advocates continue to weigh in on possible changes that will make timesharing more owner friendly and less predatory.
Will the final piece of this legal and regulatory puzzle result in a less aggressive and deceptive industry – or will practices continue unabated and unchecked resulting in more of the same?
WestgateUpdate 12/29/17: After the presidential election the CFPB dropped the Westgate investigation. President Trump is close friends with the Siegels, Westgate owner David Siegelwas seen campaigning next to the candidate in 2016. That’s Mr. Siegel to the left of Trump. Charles Thomas reported on the timeshare the Trump family is launching in Scotland, reported as a golf course in the US during the campaign.
“Westgate is facing lawsuits in several jurisdictions and a Consumer Financial Protection Bureau Investigation. Allegations include fraudulent and deceptive business practices ranging from high pressure sales tactics, failure to honor timely rescission requests, elder abuse, illegal debt collection practices and impermissible telephone solicitations.” The Capitol Forum June 27, 2016
Former Wyndham sales agent Trish Williams was awarded $20 million for exposing deceptive sales practices. While the amount will probably be reduced on appeal, it sends a message that courts and juries are listening.
The Manhattan Club Update: Remarkably, New York AG Eric Schneidermanmanaged to ban the owners of The Manhattan Club from working in the timeshare industry and achieved a $6.5 million settlement. Rarely is wrongdoing admitted. However, attorney Douglas Wasser, representing TMC owners, said “Hundreds of members will be helped, but there are over 14,000 members.” Even a settlement this size will do little to curtail predatory marketing and sales practices. The investigation took years.
Back in 2016
Attorney Douglas Wasser represents 30 Manhattan Club defendants.
“To my knowledge there has been no dismissal of any Manhattan Club proceeding at this point. The NY Attorney General investigation is proceeding, and the motion to dismiss a currently pending class action suit has been adjourned to January 5, 2017 for now. Three prior class action suits at the Manhattan Club have been dismissed. But, at least for the time being, the current class action still survives,” Mr. Wasser reported November 15. 2016
Marriott Vacation Club Racketeering Update: Most disturbing of all, political and legislative maneuvering in Florida resulted in a change in the definition of timeshare, seemingly in an attempt to circumvent the merit of the case, according to attorneys involved with the case. That was not the end of it. We will hear more about this case in 2018.
“The Marriott racketeering lawsuit seeks to abolish Marriott’s points program, which attorney said is unique among timeshare companies. It also seeks the return of fees and costs paid by buyers.”Paul Brinkmann reported October 13, 2016 for the The Orlando Sentinel.
Diamond Resorts Update:A judge ruled in favor of arbitration in the billion dollar lawsuit filed against the company, and Congress reversed the CFPB ruling that would allow class actions. Diamond Resorts is one of the only timeshare companies to have a class action ban in their contract, forcing arbitration. Arbitration is binding and private. Lawsuits filed are public record.
A recent class action was filed against Diamond Resorts:
Matt Daniel Finazzo, et al. v. Diamond Resorts International Club Inc., Case No. 5:16-cv-02256, in the U.S. District Court for the Central District of California.
I don’t mean to be the Grinchess that stole Christmas, so to end on a positive note,
People are listening!
Charles Thomas and I are hearing from people all over the world who are joining forces to work towards:
⦁ A legitimate secondary market
⦁ Less aggressive and deceptive selling
⦁ Less predatory lending
Thank you from timeshare owners to our regulators and lawyers working to protect us. Since last year we have found a few more self-help groups we are confident are on the side of the timeshare member and are not industry influenced.
So that is 2017 in a nutshell, if this coming year is anything like the last we will be seeing many more stories like these.
Inside Timeshare thanks all those who have contributed to the articles and also to all the readers and those who have contacted Inside Timeshare for help and advice. If you require any information on any company that has contacted you or you may be thinking of using but need to know about them, contact Inside Timeshare and we will point you in the right direction.
We wish you a prosperous New Year, enjoy your celebrations and we will be with you in 2018.