Browse Tag

“Nightmare on Timeshare Street”

The Tuesday Slot

This week’s Tuesday Slot is an update by Teresa Laird first published on 23 March 2018 in Friday’s Letter from America, it tells the story of Double Purple Heart recipient Raymond Mori and his wife’s “Nightmare on Timeshare Street”. This article has also been published by OEN, opednews.com with an introduction by Irene Parker.

https://www.opednews.com/articles/Raymond-Mori-83-Two-Purp-by-Irene-Parker-Fraud-180828-295.html

At the moment Europe and especially Spain is very quiet on the timeshare front, mainly because we are in the middle of the summer holidays, with the courts in Spain on close down. But one reader did pass on a piece from one of the Anfi members forums, it poses a very interesting question on liability when it comes to private renting of timeshare apartments and weeks.

The writer starts by mentioning that members can’t help noticing that apartments are being privately rented at Anfi and the question arises of who would be liable if that renter had an accident in the apartment?

Would the resort be liable or would the person renting it out be liable if any legal action were to be brought, a very interesting point as the resort could claim that as they are not members but have rented from a private individual they are not covered by their public liability insurance. That would mean the owner of that week and apartment would theoretically be liable, but as an owner renting it out for whatever reason, be it no longer using themselves but covering the maintenance fees, they are unlikely to have any insurance cover for this eventuality.

The writer also goes on to say that this wholesale renting was not what was originally intended, it was for the sole use of members and their families, he believes this is just another nail in the timeshare coffin and would not be surprised if Anfi became a hotel in the future leaving members with little redress.

On that last point, we do know that IFA Lopesan has set aside millions of euros with the intention of buying the Cazorla shares giving them full control. It is also a known fact that IFA Lopesan have no interest in the timeshare model, they favour hotels which are mainly all inclusive and of a very high standard.

If you are an Anfi member what are your feelings on these points, Inside Timeshare would like to hear from you, now for this Tuesdays article.

Retired Marine Raymond Mori, Two Times Purple Heart Recipient, Alleges Timeshare Fraud at Age 83

An update since my original article March 23, 2018

http://insidetimeshare.com/fridays-letter-america-42/

Tuesday Talk Member’s Forum August 28, 2018

  

By Teresa Laird,  

Purple Heart 9/29/68

“I am writing this at my parent’s last Diamond Resorts update March 13, 2018, I am convinced my parents, at age 83 and 79, would have purchased 30,000 additional Diamond vacation points for $234,295 had I not been with them. This offer required a down payment of $69,993. I kept the paper of these terms under the table because members are not allowed to walk out with hand written notes. My dad was not feeling well. He falls asleep in his wheelchair and had spent six months in the hospital after a heart attack. The stress over this expense has caused my parent’s health to deteriorate further.”

Raymond Mori before being shot down twice, a gunner,  earning two Purple Hearts.

I changed their phone number to avoid Diamond’s collection calls. My mom still shakes when she hears the phone ring. She has never been late on paying a bill in her life, so this has caused her to lose weight and lose sleep. I learned my mom’s entire Social Security check goes to pay the Diamond mortgage. We have learned Diamond points have no secondary market value, so unlike your home, you can’t sell the points if you have a loan.

My parents today, Lillian and Raymond Mori, married 61 years

I have reached out to Angela Sandstede as her parents are going through exactly what we are going through. Roy Simmons is a Navy veteran. His Diamond mortgage payment is $2,700. He is a Navy veteran and a retired letter carrier.

Roy Simmons and Angela Sandstede Simmons

https://www.youtube.com/watch?v=j_nca6lMA4U&feature=youtu.be

Like many, my parents used their Monarch Grand Vacation timeshare for years without complaint. They said they were told they had to give up their deed and buy points. I’ve learned they did not have to do that. Since Diamond acquired Monarch, their annual maintenance fees have increased from $2,600 to $4,600.        

I first learned of their purchase when my mom told me they had purchased an investment. She said they had invested in property. I called Diamond Resorts when my dad said they wanted to sell some points. When I asked how to go about selling points, the DRI hospitality agent laughed at me.

What they bought

4,000 Diamond points 3/12/2013 for $20,416  

2500 Diamond points 6/25/2013 for $8,325  

2500 Diamond points 7/29/2013 for $8,616

5000 Sampler points 5/4/2014 for $2,995

At ages 79 and 75 they were sold a Sampler trial program?

I called Diamond and told them that they needed to take back this last Sampler purchase at the very least. They said they would work with us but had to talk to my parents directly. What did they do – they sold my parents 17,000 more points over the phone at then ages 79 and 73 for $49,492. My parents said they were told they cannot cancel the Sampler, but the points could be added to something else. This is why they are in foreclosure. The caller said they would attach the Sampler points to another program. I could not believe it. Their new maintenance fees are $4,780.

My mom worked as an interpreter for the Ontario California liaison. She speaks Spanish. My dad is diagnosed with early Alzheimer’s. To think their lives have been financially ruined by this company is unforgivable. I am an advocate now. I am a veteran. I am working on a graduate degree and am active in the Veteran’s Resource Center. There is a Veteran’s Resource Center in every university. As soon as I finish my degree, I plan to make it my life’s work to warn veterans about predatory timeshare sales that can financially ruin the lives of those who served to protect us, including those who intend to do us harm. I am one of 72 veterans and active duty military and law enforcement who have reported alleged timeshare fraud.  https://www.csun.edu/vrc

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

Thank you Teresa for the update, it is despicable that the timeshare industry allows its sales agents to behave in this manner, we have said it before and will continue to say it, you as an industry

ARE RESPONSIBLE FOR WHAT YOUR SALES AGENT SAY AND DO!

It is your products they are selling, you employ them to represent your companies, the buck stops with you. If the industry can’t change its practices, then maybe it is time for major legislation forcing them to change. We have seen this in Spain, consumers there are now given the full protection of the law, the strongest in Europe, with other countries starting to follow their lead.

If you have any comments or would like to share your own “Nightmare on Timeshare Street”, then contact Inside Timeshare, remember you are not alone.

Have you been contacted by a company offering resale, claims or relinquishment and are not sure if the company or what they are offering is genuine, then use our contact page and we will point you in the right direction. Doing your homework before engaging with any company dealing with timeshare will save you money and a whole lot of stress.

Friday’s Letter from America

Welcome to another Letter from America, this week Meryl Reyman gives her insights on the timeshare industry, or as we prefer to call it Nightmare on Timeshare Street.

Inside Timeshare and Timeshare Advocacy Group™ has received 285 timeshare complaints since January 1, in response to our articles, from timeshare members angry about purchasing a product, most allege they were deceived into buying, signing a perpetual contract with no secondary market. We received 257 complaints for all of 2017.

Given the dramatic increase in the volume of complaints, Irene will only be posting our Friday’s Letter from America to allow more time to respond to our readers. In addition, Irene is working on a research project with a team of advocates.

We hope other contributors who have previously submitted articles, will continue to submit articles and we encourage new submissions from others who would like to contribute to our cause – educate the public to prevent or at least slow the volume of complaints from angry timeshare buyers, tired of the deception.

WHY IS NEVADA THE “WE SEE NOTHING” STATE

AND MISSOURI THE “SHOW ME” STATE

By Meryl Reyman, a Nevada resident

August 24, 2018

Our most vulnerable and valued citizens—elderly, disabled and military—are often defrauded by the timeshare industry.  Since there is no federal protection in the U.S., victims must rely on the states they live in to protect their interests. However, timeshare buyers typically buy a timeshare in a state other than their state of residence, so must file a timeshare complaint in the state where they purchased the timeshare. Some state Attorneys General are listening. Nevada is not one of them.

Nevada seems to be under the thumb of the timeshare industry and is profiting from the millions of dollars that are taken out of the pockets of the victims of timeshare fraud.  Despite repeated complaints of a very serious nature, and high ticket sales, the Nevada Attorney General, via the Nevada Real Estate Division and the Nevada BBB, deny consumers cavalierly by stating “you have no proof” even when a pattern of deceit and bait and switch tactics are its own proof. The volume of similar complaints is compelling and compounding. In timeshare Mecca Florida, proof is even harder to come by because it is a two party state, meaning both parties must be aware of an in-person meeting being recorded.  

Recently the Better Business Bureau of Missouri published a report detailing a pattern of predatory practices by timeshare sales agents and “Get you out of your timeshare scams” in Branson.  

Consumer Tips from the St. Louis BBB:

Don’t Fall for Deception, Pressure and Traps Disguised as Vacations: A Better Business Bureau Study of the Missouri Timeshare / Vacation Club Industry

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

Look on the secondary market first. If you are interested in buying a timeshare, you may save thousands buying on the resale market. Be fully aware of what you are purchasing and from whom you are buying to ensure a smooth transaction. Make sure you have in writing the terms of the sale and what each side is responsible for paying at closing. Read the contract carefully and ask questions of the seller.

  • Don’t bow to pressure. Take time to think about your decision. Ask the salesperson to send you written information about your possible purchase, including a contract that you can review. There is nothing that says you have to sign the first thing that is shown to you. Let the deal breathe before you figure out if it is right for you.
  • Do your research. Compare travel savings with online travel services or local travel agents. Also, check out the company with bbb.org.
  • Act fast if you are not satisfied. If you sign a contract for a timeshare or travel club, you have a short window to cancel the contract if you don’t like what you purchased. Don’t wait until after you get back from your trip to take a second look at the contract and research the company you are dealing with or it may be too late. Also, always pay with a credit card so you can challenge the charge should something go wrong with the purchase.
  • Do it yourself. If you want to get out of a timeshare commitment, do the work yourself. First, turn to the property from which you purchased the deed to see if there is a deed-back program in place. If that does not work, you may have to turn to the resale market. You likely will have to make a deal with a buyer to sell the timeshare. That option often is still cheaper than dealing with a resale or liquidation company that may charge you thousands of dollars to do the same work for you.

The Message as we interpret it:

Given the perpetual nature of the timeshare contract, the lack of a viable secondary market, and rising maintenance fees, consumers can find themselves stuck – with points eventually foreclosed or taken back, only to be sold again to the next unsuspecting vacationer.

DON’T FINANCE A VACATION or any Luxury Item AT 12% TO 19% and don’t believe a word a timeshare sales agent says. As the St. Louis BBB recommends, check with a licensed secondary market resale broker. We recommend contacting a member of the Licensed Timeshare Resale Broker Association before buying any timeshare.   http://www.licensedtimeshareresalebrokers.org/

Timeshare is a multi-billion dollar industry propelled by powerful lobby dollars. The media needs to help their public by shining a light on the deceptive practices so that the consumer can make an educated decision as to whether the timeshare product makes sense for them.

Inside Timeshare, and Timeshare Advocacy Group™, whose mission is to shine a spotlight on the timeshare industry, has received about the same high number of complaints directed against Florida, Nevada, Missouri, Hawaii, California, and Virginia sales centers. Of these states, only Nevada and Florida have routinely dismissed the customer by falling back on the oral representation clause.

For more information, please contact me at: [email protected] or Timeshare Advocacy Group™: https://www.facebook.com/timeshareadvocategroup/

Meryl Reyman is a retired attorney and former senior executive of a large marketing/advertising agency located in New York City. Meryl is now a resident of Henderson, NV. She successfully rescinded a timeshare contract after learning little of what the sales agent said was true.

Thank you to Meryl for your advocacy efforts. If you or someone you know needs help with a timeshare concern, contact one of these self-help groups that Inside Timeshare feels is not industry influenced.

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/

This week Inside Timeshare has received many more complaints from disgruntled US members, these have been passed on to our Advocacy teams who are now working with them to sort out their problems. We have also been receiving many requests for information from our European readers, the bulk have been from the UK and all revolve around the growing claims and cancellation business. Most of the requests are about the many companies that we have already highlighted, but it will not be long before a few new names start to emerge.

The unfortunate thing is that there are some genuine law firms working very hard to help owners who are stuck in the timeshare rut, but how do you sort out which is which?

If you have been contacted by any company or have found one on the internet and want to know the truth about them, use our contact page and we will point you in the right direction. Remember doing your homework will always save you a whole lot of stress, plus it will also keep your money where it should be, in your bank!

Join us next week for more on the murky world that is timeshare, have a great weekend and if you are going to a timeshare resort, beware the “update” meeting!

The Tuesday Slot with Irene

Welcome to The Tuesday Slot, this week we publish another Veterans “Nightmare on Timeshare Street”, with the introduction by Irene Parker. As with many of the other articles published on Inside Timeshare this is a story from the Veterans own personal experience, these stories have become all too familiar with us at Inside Timeshare, not just from Veterans but also serving members of the armed forces and law enforcement. But first some other news.

It looks like Diamond Resort International have yet another legal action filed against them, this was filed by Labaton Sucharow LLP, on 23 July 2018, on behalf of their clients Local 705 International Brotherhood of Teamsters Pension Fund, under the Securities Exchange Act 1934.

Once again this is a Class Action lawsuit, which others who may be affected being invited to join, further details can be obtained from: www.labaton.com. (See link below).

https://globenewswire.com/news-release/2018/07/25/1542302/0/en/Labaton-Sucharow-LLP-Files-Securities-Class-Action-Lawsuit-on-Behalf-of-Diamond-Resorts-International-Inc-Investors.html

There is another new name has come up on the radar, Martinez Notarias with lady called Victoria Holmes contacting consumers who had dealings in the past with our old friends Ramirez and Ramirez. She claims that they can recover along with compensation what the consumer paid, now the worrying aspect is she knows exactly how much was paid, which only leads us to conclude that she is either working with Ramirez or has managed to get hold of all his old records. We actually believe that she is working with Ramirez.

She sends out to those interested Non Spanish residents tax exemption form, which is downloaded from the internet, once the form is completed it then has to be faxed not posted back. There is no website but there is an email [email protected] which is just a normal Gmail free account,  the telephone numbers being used are:

(+34) 603208693 Spanish mobile

Fax: 070 1197 2107 The code 070 is a personal number.

Personal numbers allow a person or businesses to give out a single phone number, then redirect their incoming calls to different locations as and when they choose. 070 numbers can also be used as temporary numbers. For example, somebody selling a car through classified adverts could set up an 070 number to receive enquiries then disable the number after the car has been sold, rather than publishing their real home or mobile number. So this is not a very good sign!

Another new “fake” Procurador has also been flagged, CARLOS RIHOM IGRAIM, with the website:

http://procuradores-igraim.com

The website was only registered on 25 June 2018 so is only just over a month old, yet according to the website they have been established since 1973 and have over 40 years experience. The email they use is [email protected] which again is not linked to the website but is another free email provider such as gmail or yahoo.

The address they give  Calle Yamun 23, Edif. Ifuami, Oficina 328D, Santa Cruz, 38009, Tenerife, when checking this address on google maps, guess what, nothing comes up!

It appears that this “Procurador” is also part of the Legalidades Abogados setup, (Litigious Abogados family). Remember unless you have instigated any legal action, any call to tell you that your timeshare company is about to be taken to court and you will be in for substantial compensation, it is all a lie, they are after your money and that is all.

Now for this weeks article.

Timeshares Affecting the Lives of our Veterans

Another Veteran Family

A Tahiti Village Timeshare Experience

July 31, 2017

Introduction by Irene Parker

Inside Timeshare reached out to Tahiti Village. I talked to a Tahiti reservation agent. He was very nice, explained Consolidated was bankrupt, and that we would need to contact Soleil Management as to their response to this article submitted by a Tahiti owner, who wishes to remain anonymous. The Tahiti agent took my information and said he would forward to Soleil.  We did not hear back.

By a Discouraged Tahiti Village Member

Inside Timeshare can forward comments to this Tahiti member requesting anonymity.

Nevada and the businesses and agencies operating within it have no intention to do anything about timeshare fraud, so I hope the court of public opinion will be more effective. Please Share my article on your Facebooks to let people know about timeshare business practices and to seek answers to questions you should ask before signing any timeshare contract. If you don’t, you may find yourself stuck in a timeshare trap as we are.

I am writing this article to let people know about our Tahiti Village timeshare experience. I hope to warn other people to ask the right questions, so they don’t find themselves saddled with a timeshare they can’t get rid of. We made our last payment December 2017. I last heard from Tahiti Village in April. We have always had good credit, but now, as seniors, we face foreclosure.

I retired from a ATT & T, so I understand customer service. Our experience with Tahiti customer service has been disappointing. When I wrote good comment cards, Tahiti would respond, but when I submitted our concerns, Tahiti ignored those comments.  

When searching the internet, I found this email address from a member seeking other members who wish to pursue a class action lawsuit against Tahiti Village:  [email protected]

https://www.ripoffreport.com/reports/tahiti-village-scam/las-vegas-nevada-89119/tahiti-village-scam-shannon-deceptive-sales-lies-and-misrepresentation-of-facts-l-1432118

Tahiti Village has a Better Business Rating of A+ despite two of two negative reviews.

https://www.bbb.org/southern-nevada/business-reviews/resort/tahiti-village-vacation-club-in-las-vegas-nv-77371/reviews-and-complaints?section=reviews&reviewtype=negative

We have been Tahiti Village timeshare members since 2008. We enjoyed our Tahiti experience for several years until 2015 when we were steamrolled into purchasing an upgrade. By 2012, things had changed. Once when we checked in, we discovered our unit was nasty, the carpets were worn, the couches ripped. One year there was a bad smell in the master room. They just sprayed deodorizer, which did not help. The next year the microwave did not work. As we were checking out they brought the microwave. This is what our maintenance fees are supposed to cover.

Pressure to upgrade ensued. After one presentation, we felt like we had been held hostage after a four hour sales. We ended up upgrading from a fixed to a floating week with RCI. Since then, many things have happened that have turned what was a bearable irritation into an unbearable nightmare. In addition to seeing the fees rise, we now realize we were pressured into purchasing a timeshare product that we never really wanted in the first place. It is a timeshare product not worthy of what we are paying.

My husband, a Navy veteran, served his country for 20 years. Our Armed Forces Vacation Club benefits far exceed this timeshare. We paid Tahiti our hard-earned money for a product that has never lived up to its billing and has been a source of much stress.

As we explored ways of getting rid of our timeshare, it became apparent that many things we were told were not true, including

  1.    The timeshare is an investment that would appreciate in value,
  2.    We would be entitled to tax breaks,
  3.    We could rent the timeshare to pay maintenance fees,
  4.    The timeshare would be easy to resell, assisted by Tahiti.

So, after 10 years of paying for a timeshare that we were told would appreciate in value, could be rented and could be sold for a profit, we are left disappointed and angry. You can sell a house, even with a mortgage, but it seems there is no way out of a timeshare trap.

At times I stayed at Tahiti without my husband. If he was not with me I was treated markedly poorer. I felt that this is because they would always try to upgrade us if we were staying there together. When my husband was not with me, the customer service was worse, and the rooms were of a lesser quality. If we had a problem, even when staying together, reception would tell us they would look into our concern without ever doing so. One time,I asked for a first floor room because my daughter was on crutches and we ended up with the furthest room on the fifth floor. It seemed the only time we were treated with respect was when they wanted more money. This has been a source of irritation through the years, but not enough to warrant action.

When I wrote directly to Tahiti Village Resort asking to be released from this timeshare, I received no reply. I wrote to Soleil Management. They told me that they were not responsible for any misrepresentations that may have happened at the presentations because they were carried out by Tahiti Village Resort and they were merely the managing agent. Tahiti Village Vacation Club also said they were not responsible for any wrongdoing.

I wrote to ASNY, who claimed to be the developer and seller of the resort, as well as the managing agent for Tahiti Village Vacation Club. They said they were not responsible for any complaints about the quality of our stay and we should contact Soleil Management. They then proceeded to give me the usual spiel about how I signed the contract and they were innocent of any wrongdoing perpetrated by the sales staff. They also said that because we had been customers for 10 years, we had no case so would no longer correspond with us. (Inside Timeshare comment: Where have we heard this before?)

According to Ripoff Report, Tahiti is also known as Consolidated Resorts but have learned Consolidated filed for bankruptcy protection:

https://www.ripoffreport.com/reports/tahiti-village-consolidated-resorts-soleil-llc/las-vegas-california-89145/tahiti-village-consolidated-resorts-soleil-llc-tahiti-village-soleil-management-awsuit-479999

Why is the length of time we owned the timeshare be relevant if we always believed our timeshare was an investment that could be sold if need be? It wasn’t until we wanted to get rid of the timeshare did we learn we had been lied to. If you are in a dead-end relationship and your partner decides to go one step further and punch you in the face after 10 years, should you have no recourse?

So far, we have filed a complaint with the BBB and had our complaint dismissed before any real dialog took place. The Nevada AG referred us to the Real Estate Division. We filed with the Real Estate Division, who said they could not help.

In my opinion, Nevada, and the businesses and agencies operating within it, have no intention to do anything about this so I’m hoping the court of public opinion will be more effective. Please share my article on Facebook to let people know about our Tahiti Village experience and to warn potential buyers to do their homework before buying any timeshare.

Comments from Irene

The public, especially the military, need to be aware that a decision to sign a timeshare contract means signing a contract in perpetuity, often with no secondary market. Maintenance fees have a tendency to increase, so the timeshare can easily become cost prohibitive, even when there is no loan outstanding. Attorneys General investigations and settlements are appreciated, but seem to be only financial speed bumps in the life of a timeshare company. There has been no federal enforcement.

When a timeshare has little to no secondary market, even if you spend $100,000 or more, there is a good chance you might not be able to sell it or even give it back. Scams abound, promising to get you out of your timeshare or your money back. A few of these companies are legitimate, but several readers have reported they did not receive their money back, even when the timeshare returned to the developer due to foreclosure.    

Inside Timeshare has received timeshare complaints from 63 active duty and retired military and law enforcement personnel. Some of the active duty members are concerned about losing their security clearance due to timeshare foreclosure.   

Whistleblowers of America is an organization dedicated to seeking justice for veterans and Active Duty military. WoA presented a Timeshare Advocacy Group™ report to a Joint Committee on Veterans Affairs March 14, 2018. We hope lawmakers will wake up and do something about this. If a timeshare member is helped by our efforts, we encourage a donation to Whistleblowers of America.

www.whistleblowersofamerica.org @whistleP2P

601 Pennsylvania Ave, Washington, D,C.

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

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™ 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.

Thank you to our Veteran for their story, they also wished to remain anonymous, also thanks to Irene for the hard work you put in to edit and write the introductions for many of these articles. In Friday’s Letter from America we will be publishing the Better Business Bureau Timeshare Report, which also has some very interesting recommendations to the industry.

If you have any questions, comments or even would like to have your experiences shared with others, then contact Inside Timeshare using our contact page.

Have you been cold called by a company offering any service from resale, claims or relinquishment, or even found one on the internet and want to know if they are genuine, then use our contact page and Inside Timeshare will point you in the right direction.

Remember doing you due diligence and homework will save you your hard earned cash.

Marriott Change Contracts to Bypass Spanish Timeshare Laws

Since January 1999, when Law 42/98 came into force, many timeshare companies continued to sell their product as they had before, this all change when these laws were challenged and the Supreme Court ruled on the definitive interpretation. This interpretation made many contracts illegal, especially on two main points, the duration of the contract was limited, allowing only for a minimum of 3 years and a maximum of 50 years, the Supreme Court also ruled that floating weeks and points systems were also illegal as they lacked any substance or a tangible product.

The unfortunate thing is that many timeshare companies still sell floating weeks and points, one company Anfi, has added a week number and apartment number in an effort to get around this, but the courts still rule that it is floating as the contract actually states that. Others are using another ploy to get around Spain’s strict timeshare laws.

Inside Timeshare has received from one of our German readers a new contract that Marriott tried to get him to sign in May, to replace his existing contract for Marriott Vacation Club Destinations Exchange Program.

This would not be a problem if it were to comply with the law as it applies to Spain, but as we explain it is not designed to do this, it is purely a way to circumvent the strict laws on duration, points and floating weeks.

What Marriott have done has already been tried with contracts sold by Diamond Resorts and Club la Costa, in the past these two companies have used UK, Isle of Man, British Virgin Islands or other offshore havens and registered as  Limited Companies. The contracts also have a clause which states that the laws of the United Kingdom and the Jurisdiction of UK courts applies. Even if the contract was sold, signed and paid for in Spain.

With the case of Marriott, they now use a United States Florida address on the contract, 6649 Westwood Boulevard, Orlando, Florida, 32821-6090. They have also included in the terms and conditions a very unfair clause, this relates to the possibility of taking any legal action against them. This clause is placed in section 8 on page 5 of the contract we have seen, below is a translation from the German contract.

“By joining this program, you waive your right, under applicable law, to go to court for any legal action or lawsuits that may be brought by or against MVCEC or its affiliates in any way as to its interpretation, design, validity, enforceability, or instruments, related to the program (including replacement procedures)”.

The original in German.

So what does this mean?

You as a purchaser will no longer have any recourse to take legal action against Marriott, when you find out that your contract is illegal in Spain and would be declared null and void in a Spanish Court.

This is obviously a blatant attempt to surpass the laws of Spain, which have been put into place to protect consumers from unfair contracts and purchases.

Points which are the basis of many timeshare contracts are illegal in Spain, but they are still legal elsewhere, the duration of the contract is limited to a maximum 50 years in Spain but perpetuity is still allowed elsewhere. By using this method to bypass the laws of the country where the purchase is made, does not protect the consumer. It goes back to lock them into never ending contracts and a points system that most find are unusable due to no availability.

This can be born out by many comments on various forums, below are just a couple found on Tripadvisor; (spelling mistakes are from the originals).

“Unless you live in the US, forget about investing in a Marriott timeshare. I have bought one weeks ownership in in the resort in Phuket. The resort as such is beautiful and it seems well managed. However if you dont want to go to your home-resort every year exchanging it through Interval becomes extremely difficult especially if you are looking at resorts outside the US. Interval has very few properties of similar standing in Europe or Asia, even the Marriott property in Marbella Spain is almost impossible to obtain in exchange.

I am so frustrated with the investment that iI am considering selling the ownership. Marriott offered my app. 15% of what I originally paid inspite of the fact that property prices in Thailand have gone up considerably. I can only say that buying ownershi at Marriott Vacation in Phuket was the worst investment I have ever made in my life.”

“It is difficult to give feedback on the use of it when the places you want to go are never available unless you book 13 months in advance. That is ridiculous. I don’t know anyone who books their vacations that far in advance. So, I’ve only used it once in Florida (Panama City Beach) which is on the bay side. It was nice, but not convenient being I wanted to be on the beach. I agree with the others, it’s not worth the money. I can stay in places just as nice for the $ and book closer to the date which is convenient for me.”

So for those who have in the past purchased in Spain, if your old contract shows that it was signed in Spain and indeed comes under Spanish law, you have a right to claim the purchase price back and have your contract declared null and void in a Spanish Court. If you sign the new contract you will lose this right, if you are a new purchaser, then the advice is don’t bother as you will have no consumer rights at all.

If you have any questions or comments on this subject or wish to know if your contract is illegal under Spanish law, then use our contact page and get in touch, we will get back to you as soon as possible.

In tomorrow’s Tuesday Slot we publish yet another Veterans “Nightmare on Timeshare Street”, this highlights their Tahiti Village Timeshare Experience. Inside Timeshare has been receiving many such stories from Veterans, serving members of the military and law enforcement officers, some of these have been published others have just related their stories and asked for help. The author of tomorrow’s story has requested anonymity we have complied with their request. So join us again tomorrow.

The Tuesday Slot with Irene

Welcome to this weeks Tuesday Slot, today Margaret Chandler shares her “Nightmare on Timeshare Street”, with an introduction and editing by Irene Parker. This story focuses on the problems being faced by senior citizens at the hands of unscrupulous sales agents, this is being commonly called Elder Abuse.

We were actually hoping that this article was going to be pulled, but unfortunately we have not had any answer or reply from Wyndham, so on with the article.

For the Benefit of the Consumer and the Benefit of the Industry,

Timeshare Consumer Education is Important

Margaret Chandler shares her Wyndham disaster

Introduction by Irene Parker

If you buy a house and have a loan, you can still sell your house.

Inside Timeshare has heard from 443 mostly angry and desperate timeshare members, many seniors with 800 credit scores, facing foreclosure in their 70s and some even in their 80s. All report they were told their timeshare would be easy to sell or that the company would buy the timeshare back. Margaret contacted two licensed timeshare resale brokers. They both told her there was no demand for timeshare points.

I contacted Tom Tubbs of Island Consulting Realty. Tom has been in the timeshare resale business for 32 years. Tom said Wyndham points can be listed for a penny or a penny and a half a point. So, for example, 300,000 points could be realistically listed for $4,500. That’s quite a hit from a likely initial purchase price of $60,000. http://www.timesharestogo.com/

Margaret has filed complaints with the appropriate regulatory agencies, but chances are nothing will happen. Timeshare members tell us the Florida Attorney General’s timeshare division will say, “You should not have relied on verbal representation,” the Nevada Real Estate division will say, “You have no proof,” and the Texas Attorney General will advise legal assistance. With virtually no timeshare regulation, and few understanding at purchase the limited secondary market, more and more timeshare members have been contacting Inside Timeshare seeking straight answers. Do not pay anyone upfront money to get you out of your timeshare without checking with Inside Timeshare or one of the self-help groups posted below. Scams abound. We sent a draft of this article to Wyndham. They said they are looking into it.       

Elder abuse is “a single, or repeated act, or lack of appropriate action, occurring within any relationship where there is an expectation of trust, which causes harm or distress to an older person.” Wikipedia  

June 5, 2018

By Margaret Chandler

My name is Margaret and my husband is Edward. We are both 70 years old and Florida residents.  Edward is an Army veteran, E6 at discharge. Our timeshare nightmare started with Wyndham in 2012. I want to detail some of the lies we feel this company told us so that others can be forewarned. We have filed a complaint with the Florida Attorney General’s office, the Nevada Real Estate Division and the Texas Attorney General. We have also filed with the Better Business Bureau.

We purchased Wyndham points several times.

We bought 125,000 points in Las Vegas, Nevada in 2012.

We bought points a second time in San Antonio, Texas in 2013. We were told buying more points would increase our original point value to get more availability. This did not improve availability.

We could only find availability in less desirable locations.

We went to Hawaii in 2014 and bought what they said was deeded property.

We were told at Pompano Beach in November of 2014 we would be better off with non-deeded points. They took our Hawaii points. They said there would be higher maintenance fees with the deeded points because deeded points are tied to real estate. The maintenance fees did not go down.

We bought additional points in Atlantic City December of 2014. They kept telling us we would have better benefits at a higher loyalty level.

We bought more points at Daytona Beach January of 2017. They took two contracts and traded those in and added more points. Now all we own is points.

We still have the Nevada and the San Antonio contract in addition to Daytona.    

We are financially devastated.

Our experience started out fine, but got worse and worse. We ended up paying more and more money to fix a situation that never improved.  I imagine it’s something like a drug dealer hooking a new junkie. The first hit is for free. After that you have to pay more and more to get something that gives you less and less satisfaction.

Wyndham’s salespeople have always told us that they have our best interests at heart and that they are there to make our experience better. One salesperson even called me ‘mom’ and another invited us to her son’s wedding. Others were ex-teachers like me or said they had military connections when they found out Edward is a veteran. As a result, we have signed six contracts between 2012 and 2017 that have been upgrades, trades or merges.

The problem is we now feel that that the sales agents were not truthful about pretty much everything. We are both being treated for high blood pressure worrying about the money that we feel they have taken from us so dishonestly. Edwards’s face turns red and I can see the stress level increasing every time the topic of timeshare comes up. We cannot even talk about using it anymore, as he stresses too much. He wants us to be able to enjoy our remaining lives without the threat of bad credit, missed payments or annoying phone calls from Wyndham all day long. I keep telling Edward not to answer calls, but he forgets and answers anyway….then he becomes annoyed all over again.

Edward was working a part time job during 2016-2017 but gave it up because his blood pressure was increasing due to the worry over these timeshare loan payments. He has not been sleeping well which is another factor that is leading to his declining health.

Wyndham promised us the vacations of our dreams, an investment that would be something we could pass onto our children. One salesperson, Zadith, even offered to contact us in a year to help us deed it to our children. They said the Las Vegas location’s value would rise, Hawaii would always be in demand, and Bonnet Creek was a great one because it’s near Disney.

We had to book 13 months in advance to get a place in Hawaii and it has become harder and harder to find availability. Wyndham said there was no availability when we tried to book six months ahead in San Antonio, but online booking sites showed River Walk Wyndham was available. Now how does that happen that owners cannot get a room, but the rooms are available to the general public??

The Wyndham sales agents told us to go to the bank to get a line of credit after we returned home, using the properties as collateral, but we learned timeshares are not considered properties so we can’t refinance. We are stuck with a high interest loan.

Wyndham told us the contract would pay for itself with rentals and they would help us do that but when we tried to rent they told us it would cost 40% of the fee of the booked room to put it in the rental pool and if it was not rented we would have to cancel or lose our points. No one helped us with this complicated process. It was completely left to us.

They told us we could resell the timeshare with ease because timeshares are in demand but when we called Wyndham to do this they said we couldn’t because we still owed money on it. They didn’t tell us those were the conditions at the presentation. If you buy a house and have a loan, you can still sell your house. We were referred to two licensed resale companies that wanted to charge us 10% and 15% of the sale but told us there really was no market for timeshares because the market was flooded.

This was the turning point. Wyndham lied and pressured us into paying more and more money, each time telling us they would fix the problems, but each time we were saddled with more debt. Our ‘personal reps’ were never available. The latest one Zadith, from Daytona Beach, has not been in touch at all.  I tried texting her several times.

We are on a fixed income and we cannot keep up with the increasing costs. We are near the end of the money that we saved all our working days just to pay for these purchases. How can their sales people sleep at night after taking advantage of people that are hardworking souls and are honest and simple folks? They don’t have to lose sleep over our bills that are not being able to be paid. They are not worried about our blood pressures or our health. They just move on to the next victim.

We have written to Wyndham and they have offered to cancel our latest contract from 2017 but not the first two. We have tried to explain that the only reason we have so many contracts in the first place is because they told us the new contracts would fix the problems with the old ones. We are tired and exasperated and just want to be done with Wyndham.

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/

Thank you Margaret and Irene, once again it is a story we at Inside Timeshare are becoming very familiar with, it is a great shame that a once superb product is being destroyed by nothing more than greed.

If you have had a similar experience to Margaret or just want to comment, then use our contact page and get in touch with us. Inside Timeshare is here to give you a voice.

 

The Tuesday Slot with Irene

Although this is the Tuesday Slot with Irene, we welcome a new contributor, Greg Jennings with his “Nightmare on Timeshare Street”, once again Irene Parker was the editor. As usual we will have a quick roundup of some of the news in Europe.

Yesterday we published the article on Silverpoint and their announcement that they had stopped the resale programme of Club Paradiso, today we received another Newsletter. This one is from Club Paradiso and is slightly different from the last in that they now claim they are looking at alternative “Marketing Agencies” to begin the “Resale Programme” for Club Paradiso members.

The question is now, will this be a company set up by Silverpoint, or will it be an already existing company?

The other question is regarding the resale market itself, where is it?

That question we leave you the reader to answer.

Last week Canarian Legal Alliance announced their 96th and 97th Supreme Court victories, this is an amazing achievement, making yet again Spanish legal history. These cases were against Puerto Rico SA (Puerto Calma) and Silverpoint respectively. Both contracts being declared null and void and the total awarded in both cases 56,600€ plus legal fees and legal interest.

CLA also published in their news section a letter from one of their clients, Mr Rolf Ingvar Høyer, (Professor Emeritus (BI Norwegian Business School, Oslo). In this letter he explains his dealings with CLA in the long running case against Anfi.

This began in 2009 and ended up with the case being heard at the Supreme Court, with 131,000€ being transferred to his bank account at the end of last year. For his full story follow the link to the CLA website.

https://www.canarianlegalalliance.com/celebrating-victory-mr-hoeyer/

With all the negative spin being put out by Anfi against CLA, this should leave you the reader in no doubt that timeshare companies cannot be trusted with the truth.

So on we go with another readers experience at the hands of Diamond sales agents.

My Name is Recycled Inventory

Geek

By Greg Jennings

Diamond complaint #58 out of 94 Inside Timeshare received since January 1

March 20, 2018

How I became a victim of Diamond Resorts

The first year: They said that there was a meeting I should have been invited to, but if I wrote a note to the sales manager stating that I was not aware of this meeting, I could buy additional points at the reduced sale price.

2017:  I attended yet another Owner Update, unhappy with my Diamond ownership.  I was in way too deep and my employment situation was not secure. During this meeting, Las Vegas DRI sales agent Jeff Regier asked why I was unhappy, and then proceeded to tailor his sales pitch accordingly. I told Jeff that the outstanding loan was unaffordable, and that without full time work, my savings had been depleted in order to keep my Diamond loan current.

That’s when he offered what appeared to be the perfectly tailored pitch:

If I purchased 4000 additional points, I would be at a level where I could use the points to pay maintenance fees, would qualify for a lower interest rate on the mortgage, and most importantly, if I was unable to continue, I could pursue the “Exit Strategy”, where Diamond would buy back my ownership at a reduced rate. Jeff said these benefits wouldn’t be accessible until after January 1, 2018. This is how they dodge the rescission period.

The following link and comments are from a Ripoff Report against Jeff Regier written by Jonathan Brown, July 8, 2016:

https://www.ripoffreport.com/reports/diamond-resorts/nationwide/diamond-resorts-diamond-resorts-international-timeshare-scam-hostage-liar-las-vegas-n-1315868

If you want to actually take a vacation and enjoy it without being forced to sit in an office for 7 hours then AVOID DIAMOND INTERNATIONAL. I had 2 specifically bad Sales reps here Andrew Fernando, wouldn’t let us leave even when my Son needed food. Went and got food so that we could STAY. My son needed a Nap, he said, go give him a nap and then COME BACK!

Right, because that’s what I want to do on vacation, spend time with Andrew Fernando all day. Then Jeff Regier got involved. He actually corrected Andrew 4 times in front of me for not clearly explaining what was going on. Once I figured out that they wanted me to spend 30K More, I was out.

Back to my nightmare

lightening cash

My story begins 2006 or 2007. I was in a bad place in life. Most of my records had been lost. Talking about this is uncomfortable, because I feel stupid for falling for the scam I now understand this timeshare sale was. I’m embarrassed and ashamed. I only hope my story helps others understand the predatory nature of this industry and just how worthless the product is in relation to what it cost me.

I had originally purchased a timeshare from Monarch Grand Vacations believing I had purchased a retirement travel lifestyle for just under $10, 000. The sales pitch was impressive. Monarch owned eight premier resorts in the western United States and was affiliated with Interval International. In addition, Monarch owners could enjoy “unlimited Day Use” at any Monarch property, without using points.

My grandmother had recently died, leaving me with a small inheritance. I was drinking and gambling. In my depression I think I just wanted to secure some part of normalcy. I attend a convention in Las Vegas every year so assumed this ownership would make that more affordable. I had been suffering with a disability due to a chronic back injury. With no support base, dependent on narcotic pain medication, I was an easy mark for the timeshare sales team.

The first year was pleasant enough. I was able to travel to Las Vegas using the points, but was disappointed to learn Monarch would be going through bankruptcy.

The second year I exchanged my points through Interval International.

The third year in Las Vegas, I attended a Diamond “Owner Update” where I encountered the hard sale. They said due to bankruptcy, Monarch inventory was being transferred to creditors. With inventory dwindling to zero, there would eventually be no availability so my only option to preserve the value of my investment was to purchase into the Diamond Resorts family, as DRI was the largest creditor. This was accomplished with a separate loan, monthly payments, and an increase in maintenance fees.

Over the next few years, the owner updates were roughly the same. Apollo Global Management acquired Diamond and point values had been adjusted. I was told that in order to continue to attend my annual conference I would need to purchase additional points in order to find available inventory. These updates often exceeded three or four hours. My need for pain medication made me susceptible to doing whatever I could to end the updates. I panicked thinking everything I had been paying for would be valueless as Diamond reduced inventory in order to escalate demand for DRI points.

In 2016, I made what I thought would be my final purchase. I had just made Silver Level, but DRI sales agent Paul said that I was not financially viable unless I became Gold. I left with a new $374 monthly payment on a 15 year loan. I had been struggling to make the prior loan since my second accident that happened in 2011. I had lost my home to foreclosure while on temporary disability.

In 2017, I attended yet another Owner Update now seriously unhappy with Diamond. I was in way too deep and my employment situation wasn’t secure. I told Jeff  the loan was unaffordable and that my savings had been depleted. I had been trying to sell my timeshare on the secondary market but there was no demand for Diamond points. The $3000 maintenance fee cost more than 10 days in many hotels. The only way I had been able to secure DRI availability was in response to marketing emails which required another sales meeting.

During this update, DRI sales Jeff Regier asked why I was unhappy, and then proceeded to tailor his sales pitch accordingly: If I purchased 4000 additional points, I would be at a level where I could use the points to pay maintenance fees, would qualify for a lower interest rate on the mortgage, and most importantly, if I was simply unable to continue, I could pursue the “Exit Strategy” – Diamond would buy back my ownership at a reduced rate. These new benefits wouldn’t be accessible until after January 1, 2018. This is how they dodge the rescission period.

This “exit Strategy” was what I believed would be my way out. I of course didn’t need or want more points. Jeff Reiger knew I couldn’t afford more points. I only bought points because I was desperate to end my relationship with DRI. He used that to hook me. He also said he would act as my point of contact for all future DRI dealings, getting me discounted bookings and that I wouldn’t have to deal with any more sales people. After almost 4 hours, I needed to be done.

As it turned out, the interest rate was essentially the same, the loan was now 10 years, and part of the balance needed to be on a Diamond branded Barclays credit card offered at 0% interest. Jeff said if I called him in January he would get the 0% extended, and that I could use the card to pay down principal on the note. The loan required direct access to my checking account for approximately $560 per month. I went online in January with the tablet I had been given as instructed by Jeff, but could find no promised, “Exit strategy”, the ability to pay maintenance fees with points, or any form of buyback program. I had been duped.

I called Jeff in January and asked him to extend the zero percent interest on the credit card, and transfer some of the loan balance to the Barclaycard. He said I needed to call the credit card issuer myself, because he couldn’t do it without my personal information. He said if they would not extend it I could apply for a new card with a promotional interest rate. He then said he would be unavailable because he was going on vacation. This was the final straw. This was when I realized what a fool I had been to believe anything these people told me.

With my remaining 2017 points, I booked a trip to Hawaii by responding to a promotional email for Kona Village Resort. During the mandatory update, I refused to buy more points. I was then accused of illegally recording the meeting. The sales manager demanded I sign a blank form. When I refused, he said he’d “take care of it” adding that I’d never get a discount booking again. They also refused the promised resort vouchers for attending the presentation. This was a breach of the timeshare practice offering compensation for attending promotional meetings without obligation to purchase.

Sales agents claim points have value. They told me to preserve value I had to buy more points. They told me they would make ownership more affordable. They told me I could use points to pay maintenance fees. They told me if I couldn’t continue, they would buy back my ownership – LIES – every one of them. When I sent a letter to Diamond requesting information on the promised “Exit Strategy” I received an email stating no such strategy exists.

I have run out of money. The automatic payments have drained my account. I have come to terms with the fact that I have wasted over $60,000 over the last ten years trying to preserve what I was told was an investment in retirement travel.

As I sit here today, I am unemployed, struggling with a disability, and financially devastated. Diamond collection agents call every day. When they call, I ask if they are offering me employment. At first, they told me I needed to confirm my contact information for security purposes. When I refused, they told me they couldn’t discuss my account, so I ended the phone calls. They still call but no longer ask for verification. When I ask about the exit strategy, or if they are aware of promises made by their sales staff, they tell me they are only going to discuss my account. So I end the call.

I have no idea how to proceed, but I cannot pay with money I don’t have. I am sure they will find many ways to ruin what was left of my credit having bled me of my finances. They don’t care. I see them as predators. They will move on to new victims, and the cycle will continue. But I will no longer participate.

I am recycled inventory.

Comments from Irene: Greg is not stupid. We have heard from doctors, lawyers, a contract specialist for Consolidated Edison, professors, 34 active duty and retired military including Raymond Mori, recipient of two Purple Hearts. His daughter Teresa Laird submitted an article for this coming Friday’s Letter from America. I have an MBA and a CFP. We all signed DRI contracts. We all say we were told things that were not true. With 338 Diamond Inside Timeshare reader complaints received since late 2016, Greg is not alone. Unresolved complaints:

Josh Parker

https://www.youtube.com/watch?v=ezkJ7GlJN4U&feature=youtu.be

Eron Grant

https://youtu.be/-FMk_45zRzk

Roy Simmons

https://www.youtube.com/watch?v=j_nca6lMA4U&feature=youtu.be

Kevin Hopkins

https://www.youtube.com/watch?v=zAkBlfyhVYQ&feature=youtu.be

 

We seek to provide Diamond Resort 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/

We’re here for Greg

coloured hands

Thank you Greg, your story is truly up there with the worst of “Nightmare on Timeshare Street”. Also thanks to Irene and all the volunteers who are helping people like Greg. These stories are becoming all too familiar at Inside Timeshare, with readers contacting us on an almost daily basis.

If you have any questions or comments about anything in this article or previous one published, contact Inside Timeshare, using our contact form for a private message or post a comment on the relevant article.

Have you been contacted by a company offering you a service such as resale, claims or relinquishment, or are searching the net for one, then remember to do your homework before engaging with them. If you require any help in checking their validity, then use the contact form with your questions, we will then get back to you and point you in the right direction.

It pays to be diligent so do your homework and save your money!

give us money

The Tuesday Slot with Irene

This week’s Tuesday Slot with Irene has been submitted by Angela Simmons Sandstede, as you will see the story of what her parents have been through is not a happy one, it is another “Nightmare on Timeshare Street”.

First some European timeshare news.

Yesterday, the Court of First Instance Number 3 in Maspalomas announced yet another Anfi Contract null and void, the judge sitting on the trial was new and this was his first ever timeshare case. He awarded the UK clients £11,923 for the purchase price along with £13,248 for double the deposit paid within the cooling off period. The clients have also been awarded their legal fees and legal interest. Again this judge was following the rulings by the Supreme Court.

The case was brought on behalf of these clients by Canarian Legal Alliance, the lawyer representing them is one of their newest and youngest lawyers Eduardo Álamo, who only obtained his law degree in 2014, he then went on to study extra courses in 2015 and became a member of the Las Palmas Bar Association in 2016. Definitely a lawyer to keep an eye on.

eduardo

Over the past few weeks Inside Timeshare has been receiving enquiries about a company called RSB Legal, these readers have paid this company for relinquishment and to lodge a claim on a no win no fee basis. Unfortunately they are are unable to contact them.

In another twist it has just come to light that another company Stanton Mortimer which we believe are linked to RSB run by Ricky Walker, Kevin Walker, Kevin O’Connor and Matt Lowe have now shut down and seem to have disappeared with many clients making criminal complaints.

RSB have also been the subject of many discussion forums, the one below goes back to late 2016.

http://forums.moneysavingexpert.com/showthread.php?t=5510732#topofpage

If you have dealt with either of these companies contact Inside Timeshare and we will give you information on what you can do.

Now for this weeks article.

March 4 – 10 is NOT Consumer Protection Week for Timeshare Members – Part I

An Extraordinary Diamond Investment Opportunity that Wasn’t

Part II – Friday “Earth to ARDA” by Eron Grant

couple

By Angela Simmons Sandstede on behalf of my parents

Please help my Mom and Dad Diamond Resorts, AARP, ARDA, Minnesota Attorney General Lori Swanson, and Hawaii Attorney General Doug Chin

March 6, 2018

I am writing this article because my mom and dad had to sign a non-disclosure agreement. When my mom, who is diabetic, started slipping into a diabetic sugar shock during a sales presentation, the Diamond “Hospitality” representative at Mystic Dunes, Randy Siegel, told my parents to sign papers to lock in a price per point. What they really signed October 2017 was a purchase agreement to buy a Sampler (trial) package for $3,995. They already owned 78000 points. Why would they need a trial program? Diamond refunded all but the down payment. For this they had to sign an NDA? But guess what – this was nothing compared to what happened next. If you do the math, there is no alleged about what happened.  

Roy and Lillian Simmons, ages 69 and 70, Minnesota residents

My dad is a Navy Veteran

Our YouTube: You have to listen to the YouTube for this to make sense

https://www.youtube.com/watch?v=j_nca6lMA4U&feature=youtu.be

My parents, Roy and Lillian Simmons, had been loyal and happy Diamond Platinum members for almost 20 years. By 2014 they had purchased three or four US Collection Diamond vacation point packages ending up with 27000 US Collection points. In 2014 they bought 25000 Hawaii points transferring their US Collection points to the Hawaii Collection now owning 52000 Hawaii points. Everything was fine up to this point.  

The horror began in 2015 when they were told they needed to transfer from the Hawaii Collection to the US Collection, buying 25000 more points for $151,192.  Now they owned 77000 US Collection points. Why back to the US Collection?

In Orlando Florida Diamond sales agent Rafael Cabrera told my parents they should not have bought Hawaii points. They were transferred from the Hawaii Collection back to the US Collection. The reasons:

  • Maintenance fees will go up because Hawaii is so expensive
  • They have hurricanes in Hawaii so they can have special assessments

March 31, 2016 they went to Diamond’s Ka’anapali Beach Resort in Hawaii. There they met with DRI sales agent John Jessup. Mr. Jessup told my parents they should transfer the US Collection points back to the Hawaii Collection to take advantage of a remarkable investment opportunity my dad described on our YouTube. It was remarkable, but it didn’t exist.

Transferring 77000 US Collection points back to the Hawaii Collection involved a weird 1000 Hawaii point purchase and transfer fee costing $32,840 or over $32 per point. You have to buy some points to transfer from one side of the ocean to the other. In other words, they were charged $32,433 for the non-existent investment opportunity. Diamond points, according to member reports, sell for $3 to $4 per point. Sales agents are quick to point out the list price is $9 going up to $11.     

According to my dad, he was told:

“Hawaii real estate is so valuable! Diamond can’t buy any more property. The “shares” are going to split! You can double your profits! You can get $3000 or $4000 a week for renting out your points!” said Mr. Jessup. “Being able to pay for maintenance fees and rent points is what sold us,” explained Mr. Simmons.

“I don’t know anything about Hawaii special assessments?” Mr. Jessup added.  

http://www.poipuowners.org/News.html

YOU CAN’T SELL OR RENT DIAMOND POINTS UNLESS YOU RENT TO FRIENDS OR FAMILY. DIAMOND DOES NOT ALLOW RENTING FOR COMMERCIAL PURPOSES. THERE IS NO SECONDARY MARKET FOR DIAMOND POINTS.

My parents are about to lose their house over this! Their monthly Diamond loan payment is $2,750 per month.  

My mom and dad live mostly on my dad’s pension from the US Post office plus Social Security. My mom teaches piano part time. My dad works part time as a substitute in a school kitchen. They were able to manage 52000 points before the last fraudulent up-sell but can in no way afford 78000 DRI points.

Three Barclay cards were opened – two in my mom’s name and one in my dad’s name to charge the down payment. The interest rate jumped to 13.9% for the Hawaii points, but was 9% or 10% previously. When filling out the Barclaycard application, the sales agent crossed off with a black marker all their credit card/Diamond loan expense information, I assume so they would qualify. “We don’t need that information. We just need your home mortgage and car,” he said. I just found this out as well. Mr. Jessup also suggested my dad pay off the Diamond loan by taking the money out of his retirement plan. “I worked as a Financial Advisor. This would only be an 8 to 9% penalty,” Mr. Jessup advised. When my dad spoke to a real Financial Advisor, he was told taking money out of his government retirement plan would have cost over 40% in taxes and penalty.  

My mom is so stressed over this pathetic attempt to make them STAY VACATIONED she is losing her health and so upset she could not participate in our You Tube. Her sugar levels are worse, affected by stress.

Through Social Media I have learned this “ping pong” upsell is a common and deceptive false claim – sales agents working for the same company telling members you should not have bought this or that collection, depending on what side of the Pacific Ocean you are on. You don’t have to be a senior citizen to get confused about the back and forth transfer up-sells.

hands in hand

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

Diamond at first acted like they cared. I reached out to Diamond Resorts Consumer Advocacy January 8, 2018. They asked for income verification because of the up-sell dispute. My dad sent income verification three times, but they couldn’t find it even though it was faxed. Each time Diamond’s hospitality agent would say they didn’t receive it, but then would say they did. Then they told my parents they were making over $100,000 a year. My parents did not even make that much money when my dad worked for the US Post Office.

A Better Business Bureau report was filed the end of February. A few days after filing, the Better Business Bureau closed out the complaint because Diamond responded, “They signed a contract.”

The FBI advised a recent Diamond member, those who feel they have been a victim of deceit and bait and switch to file a complaint with the Federal Trade Commission in addition to filing at IC3.gov and orally through the FBI’s public access line calling your local FBI field office (#4 then prompt #3 white-collar crimes). Contact Inside Timeshare if you have questions.

With all the complaints Inside Timeshare is receiving and passing over to the US team, this is only the tip of the iceberg. Irene and her other volunteers are inundated with formulating complaints ready for filing with the FBI, as we get results we will be informing you on these pages.

Remember, if you don’t know what to do whether it is similar to the above story, or you have been contacted by any company or just found a company on the internet and want to know if they are genuine, then contact Inside Timeshare for the best advice available. It will also help if you let us know if you are US or European based, this way we can point you to right team.

us-eu-coop

Friday’s Letter from America

In today’s Letter from America, Scotty Black another service veteran tells his own story of his “Nightmare on Timeshare Street”. These stories are becoming all too common at Inside Timeshare, with readers contacting us on a daily basis. But first we have a look at what is happening in Europe.

As we have reported on many occasions, Anfi deny that they are losing cases and that no one is getting paid out, well we would like to share with you a press release from Canarian Legal Alliance.

One of their clients won their case at the High Court in las Palmas, Anfi appealed to the Supreme Court, the judges in Spain’s Highest Court confirmed the sentence and ordered Anfi to pay back double the amount of the deposit paid during the cooling off period, which is prohibited by law.

This particular client has now received into their own bank account the sum of 37,979€, this leaves us in no doubt that regardless of what Anfi claim, they are losing and clients are being paid.

c2

CLA also issued the following figures on cases for this past week.

  1. In the Courts of First Instance in Gran Canaria and Tenerife there have been 5 rulings in favour of their clients against Anfi and Silverpoint.
  2. In Tenerife, the High Court ruled once again against Silverpoint.
  3. There were also 3 Rulings in favour of their clients at the Supreme Court in Madrid, these were again against Silverpoint.
  4. In total, CLA clients have been awarded a massive 402,552.19€ Not bad for just one week.

Staying with Anfi, several of our readers have enquired about another letter sent by the Anfi CEO, in this he stated that any contract signed between January 1999 and January 2001 had a 2 year window for adaptation. The law referred to is 42/98, this was passed in 1998, it became effective on 5 January 1999, so the question is why would  resorts and developers be given a 2 year period to change?

Surly the period between the law being passed and coming into force is the window to change?

What would be the point of setting a date for the enforcement and then allowing things to continue as before?

These are questions that need to be answered, Inside Timeshare has asked for clarification on this and is waiting for an answer. We will publish in full when it is received.

More readers have informed Inside Timeshare that they have received a letter from the Police regarding the following Mark Rowe companies:

  • Monster Travel (known as Monster Group/Monster Rewards)
  • SellMyTimeshare
  • Complete Internet Solutions
  • Hollywood Marketing

These are being investigated as we reported previously by the South West Police, it looks like a major criminal investigation, if you have had any dealings with any of these companies you can contact the Police at the address below.

South West Police ROCU. DC 4624 Katie Andrews. PO Box 37, Valley Rd, Portishead,Bristol. BS20 8QJ

Now on with our Friday’s Letter from America.

A Letter to Timeshare Developers and ARDA

Law Enforcement, Military and Lawmakers

Our Mission to Stop Timeshare Crime – Front and Back

EW

February 9, 2018

By Scotty Black, M.S. Criminal Justice, former Navy

Promissory Note $65,741.14 @ 14.4309%

How I got here

  • Purchased 5000 timeshare points October 2014 Scottsdale AZ CA Collection
  • Purchase price $13,000
  • October 13, 2016 in Hawaii we bought 15,000 additional points
  • Name of sales agent Brian Holmes
  • Purchase price is $75,710
  • $4500 on a resort issued Barclaycard used for the down payment
  • Monthly payment $1,037.84
  • Maintenance fees $4,006.22

I am one of 22 active duty, retired military, law enforcement agents, feeling victimized by timeshare. For my family, I would describe timeshare as a parasite killing its host. Like Amanda and George Jones, I’m worried about losing my security clearance. Like, Lela Renea, I work in law enforcement. Like Kevin Hopkins, I am military trained in Electronic Warfare. I never imagined we would need that training to fight in a Timeshares War. Kevin is retired Air Force. I served in the Navy. My primary job was Electronic Warfare, but partly due to my attitude, I was sent often to security, so I ended up assigned to the Special Security Force, Battleship Missouri. The fact that this is the second complaint in a matter of weeks from an electronic warfare veteran and that there are 22 of us working, or having served to protect our country, filing timeshare complaints, is telling.

Kevin was featured in this article on January 30 unidentified, but as Kevin has since received his automatic knee-jerk, “Sorry, you signed a contract” denial, Kevin has been identified and has joined the ranks of Inside Timeshare Contributors.

http://insidetimeshare.com/tuesday-slot-irene-8/

Kevin’s sales agent managed to work in every oral misrepresentation possible into one presentation. He’s working on an upcoming article about his experience.  

Timeshare companies have negatively affected national security with their fraudulent sales practices. Active duty Navy Technicians George and Amanda Jones could be forced into foreclosure. They say they were assured by two sales agents in two separate states they could lower their 18% loan interest rate by contacting finance companies offering a lower rate or a military rate. “Just Google it,” their sales agent said. Banks do not finance timeshares. Consumer credit issues can cause a revocation of security clearance. Jeff is in the process of writing to the Commandant of the Marines.

Jeff Diehl, former Marine, purchased a timeshare at Vacation Village

http://insidetimeshare.com/fridays-letter-america-30/

Lela Renea, a detective, who purchased a Bluegreen timeshare

http://insidetimeshare.com/fridays-letter-america-11/

Amanda and George Jones, active duty Navy, purchased a Diamond timeshare

http://insidetimeshare.com/tuesday-slot-irene-3/

We have summarized our reports from our 22 unit members and have reached out to Whistleblowers of America, an organization that seeks justice for military and government employees. If you are not drowning in timeshare loan payments, credit card payments and maintenance fees, consider a donation.

https://whistleblowersofamerica.org/

Here’s what happened

In Hawaii, October 2016, we asked our timeshare sales agent Brian Holmes what would happen in the event we could no longer make payments. As we were told in Arizona, we were told again points could be rented and that we would be able to sell the points, likely at a profit, especially since we purchased them at such a low price – a price so low because “a sales staff member forgot to file the declination of purchasing more shares in a previous presentation…!”

meet

We were told Hawaii points are a good investment. This sticks in my mind because my wife had to write a statement to that effect, so the purchase at such a low rate could go through. As for the potential of profit, we were told there is a land-usage moratorium on how many places and percent of the land can be built on in Hawaii so this would also make the points appreciate, even with a speculation of over $10 per point. We were told we would need to sell points through the secondary market but that would be easy.

We have since learned our vacation points have no secondary market and that renting points through a third part website is not allowed. I contacted members of the Licensed Timeshare Resale Broker Association. Not one I spoke with would even accept a listing for our Diamond points feeling the restrictions placed on the use of secondary points renders the points worthless. Since LTRB members, unlike some scam timeshare exit companies, do not accept an upfront fee, it’s a waste of their time to accept a listing.  

In Scottsdale, at an “owners update” early September 2017, long after the issuance of the Arizona Attorney General’s Assurance of Discontinuance, we experienced yet another highly aggressive sales presentation. The length of the presentation was a violation of the AOD. We complained repeatedly that we wanted to leave. We were told it was not a sales presentation and they would not try to sell us points, but after the 55 minute presentation we were paired with a sales agent for at least two hours.  My wife had broken her foot on resort property the prior day and was in pain. She had to keep her boot elevated. They still did everything they could to keep us from leaving. I still was experiencing symptoms from a car wreck that had required a hospitalization. We were both on painkillers.  

Ultimately, I contacted Irene Parker and our Timeshare Advocacy Facebook group.

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

Irene suggested I contact Diamond’s Consumer Advocacy Department, which I feel has nothing to do with consumers. The “hospitality” agents are fine print detectives, in my opinion.

Irene explained about Diamond’s new Quality Assurance program, CLARITY, launched after the AOD was issued. CLARITY is reported to be about accountability, transparency and respect for the customer, but as Irene predicted, our Hospitality agent referred us to the oral representation clause. I ask what purpose CLARITY serves, other than a piece of paper to hand out to provide a false sense of security, making it seem like the company cares about false promises made by sales agents.

Researching timeshare in general, I have come to believe many timeshare sales agents employ tactics that meet the FBI’s definition of white-collar crime, Financial Institution Fraud, defined as “deceit, concealment, violation of trust and bait and switch.” Timeshare buyers who feel they were victimized should file complaints with the following agencies:

  1. The Better Business Bureau
  2. The Attorneys General (The AGs where you signed, where the firm is headquartered, and where you live)
  3. State Real Estate Divisions against the individual agent
  4. The Consumer Financial Protection Bureau
  5. The FBI (if as serious as mine at IC3.gov and orally through a field office public access line #4 prompt, then #3 white-collar crime prompt)
  6. The FTC if you have any energy left

Other agencies that investigate multinational and cross-border financial institutions

We know criminal actions on the part of timeshare sales agents extend beyond any one resort, except for Disney Vacation Club. Somehow they manage to show a profit without resorting to deceit.

mickey mouse

Hopefully, timeshare executives and lobbyists will read this. We know one lawmaker has.

http://insidetimeshare.com/lesson-timeshare-companies/

If you need help, call us.

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/

 

Thank you Scotty for sharing your “Nightmare on Timeshare Street”, we find it appalling that veterans are being treated like this, facing foreclosure and ultimately losing the valued and hard earned security clearance after years of loyal service. All we can say is shame on the the sales agents and even more so on the developers for allowing their sales agents to behave in this despicable manor.

News has just come in from Madrid, the Supreme Court has issued another sentence this morning against Silverpoint, this is now 89 rulings made against various timeshare companies by Spain’s Highest Court.

The latest ruling has awarded British clients of CLA a massive £36,000 including £8,000 which is double the deposit paid within the mandatory 14 day cooling off period, plus legal interest. The contract has also been declared null and void, so congratulations the these happy ex-timeshare owners and great well done to the staff and legal team at CLA.

Today we have received another email from yet another victim of Ramirez and Ramirez, it seems he is upto his old tricks again. The last we heard from him was in April 2016, (see link below).

The pitch is the same, the consumer is contacted and told that their claim has gone through, there is a substantial amount, in this case over £31,000 waiting for them at the court. All they had to do was pay £1,498 to Ramirez to get the payment underway, then they were told they had to pay £2,560 Tax  to the Agencia Tributaria (Spanish Tax Office) and the money will be released.

Please be aware this is one experienced conman, there is no money waiting for you at court, there is no tax to pay to release this ficticious money. Unless you have instructed a lawyer to act on your behalf through the courts then there is no claim.

The Resurrected!

That’s it for this week, a very big thank you to all who sent in valuable information which will always help others and to those who have contributed to the articles from our Cousins across “The Great Lake”.

Remember, if you have any questions about any article published or just need advice on whether to do business with any company, contact Inside Timeshare and we will point you in the right direction.

Have a good weekend.

weekend

 

Friday’s Letter from America

In this week’s Letter from America we welcome the first article from Ken Silva, with his Nightmare on Timeshare Street story. This is also made more complicated due to the involvement of Barclays, as this is considered as a separate agreement to the timeshare. But first we look at the news from Europe.

It has now been confirmed that the enterprises owned by Mark Rowe, are being investigated by South West Police, this follows the report at the beginning of January of the raids conducted by Trading Standards at several premises used by these companies. This followed after an investigation by the “Scambuster Team”.

The Police are contacting clients who either have lodged complaints with Trading Standards and the Police in the past, or from records seized in the raids. If you have had any dealings with any of his companies (a full list can be found at the link below), then contact:

South West Police ROCU. DC 4624 Katie Andrews. PO Box 37, Valley Rd, Portishead,Bristol. BS20 8QJ

Police ROCU UK

http://insidetimeshare.com/monster-credits-associated-companies-summary/

Could this now be the end to the Mark Rowe Enterprises?

If we thought that things could not get any stranger in the world of timeshare, then you would be wrong.

For now on with today’s Letter from America.

A Warning to Anyone Thinking About Buying a Timeshare

Our Diamond Resorts International nightmare

Fri Doh!

By Ken Silva

February 2, 2018

Timeshare Consumers, take my advice and do due diligence before buying a timeshare.

Protect your family. Do not get your family into the mess we are in. Do your research. There’s a reason there are so many timeshare members on Facebook and websites seeking to dump their timeshares. I’m sure there are sales agents selling the product honestly, but you decide about our sales agent after reading what happened to us. All you have to do to prove we are telling the truth is to get on our booking site and try to find a vacation based on what we were sold.

Attorneys General, please, do not dismiss our experience. We are fighting to get our money back, as we still owe $10,000 on a Diamond Resorts Barclaycard credit card. We hope to escape the “ironclad” STAY VACATIONED contract.  

Here’s what happened

saleman

In May of 2016 my wife and I purchased a Diamond Resorts International (DRI) Sampler (trial) package for $2,995 in Las Vegas.

Using our Sampler points we booked a stay at Diamond’s Ka’anapali Resort. We purchased 2,500 Hawaii Collection Diamond points for $13,000. Our sales agent was Karen Cossettee. Ms. Cossette told us we would be able to book one to three weeks of vacation anywhere. Our son Jacob, age 3, has a serious medical condition so we need to vacation close to home as we have to be near medical facilities. We had to cut both our Hawaii and Las Vegas trip short because our son experienced a medical emergency back home.

After we returned home, we got on the booking site, but found no locations meeting our requirements. About the only bookings you can get with 2,500 points are for places like Branson Missouri or Gatlinburg, maybe a one bedroom in Orlando. It is impossible to stay one to three weeks in a one bedroom in California near a major medical facility.  

Jacob has cerebral palsy. He has been diagnosed failure to thrive and is on a feeding tube. He requires 24/7 care and he is a case study at Stanford University Medical School. We cannot fly because of his condition. We booked Tahoe recently, but cancelled that trip because even Tahoe is too far.  

Using our Sampler points requires a sales presentation, so we booked a trip to

Las Vegas November, 2017. We stayed at DRI’s Cancun resort. There the Diamond sales agent, Davia Hunsicker said, “Hawaii lied to you! You can’t go anywhere on 2,500 points.” We were told Hawaii Collection points are expected to be slammed with assessments and 10-14% increases in maintenance fees because Hawaii is so expensive and subject to weather damages. However, in Hawaii they told us maintenance fees increase only 6%. They went on to explain that Hawaii was going to have a $1,000 plus assessment for damage to shores.  Ms. Hunsicker told us U S Collection maintenance fees increase only 2% on average.   

The Vegas agents told us the only way out of this situation was to move our Hawaii points to the US Collection and to do that we had to buy 4,500 points for $18,000 to own 7,000 U S Collection.

Like in Hawaii, we were shown several places we could stay that met Jacob’s needs. Again, when allowed on our booking site (again after the rescission period), it was a different inventory. I called DRI and reached a Platinum agent who said, “I’m with the Platinum desk. I can pull strings.” She found a desirable option, Pacific Grove in California. This was one of the locations we were shown in Vegas, only in our inventory it would require 22,000 points.

Timeshare companies can dodge the rescission period by not allowing access to the booking site until after the rescission period. In our case, I tried to log on two days after signing but was told my account was in escrow. The rescind period is seven to ten days, but it takes nearly 30 days before you can access the booking site.

DRI sales agents are so good at having all the answers and they will promise you the moon. Ms. Hunsicker also said we could get an extra 8500 “ghost” points that would upgrade us to Silver by saying we owned an RCI week. She instructed us to just nod to the QA person when they ask about RCI and we would be able to get the extra points, but not to say she told us because, “You might get me fired if they find out, but that way you’ll get another 8500 points.” She advised us to purchase an RCI week at Sam’s Club for $500 – $600 and then trade it in to Diamond for 8,500 points. She said with Silver benefits we could have food stocked and luggage forwarded. This was a tremendous benefit because of Jacob’s needs. However, when I read about these benefits the luggage benefit costs additional funds and the food service was not available at the Silver level.  

We asked about what would happen if we could no longer use the points and were told DRI will work something out and were informed DRI has a website where you can sell points. DRI points are virtually worthless on the secondary market.

We would have rescinded our contract immediately if I had been able to see that we could not use our points as promised. Diamond salespeople will offer their cell and promise to be available and act like they genuinely care about you (like ours did concerning Jacob), but then disappear after a few days of friendly texts.

I work for a faith based non-profit. We teach anti-bullying and leadership skills. Our credit score is over 800. I am 33 years old and my wife is 31, caring for our son’s severe medical issues. To think that timeshare companies allow these practices and hides behind the fine print is astonishing.

I published a review on Trust Pilot.

Reply from Diamond Resorts International

Published Monday, January 15, 2018

We regret to hear of your experience as we are known in being forthright and delivering top notch service. Please email us at [email protected] for further assistance.

My response to Diamond’s response

Edit: Diamond Resorts reached out, as seen below, however, they have not responded to my email to them as of 1/25/18. Also, they are not known for their top notch service. In fact, look on Facebook for the various groups of people who are in positions like mine, or the many other reviews on Trust Pilot. It often takes DRI 45 or more days to get back to you and many are ignored. When you call customer service, they tell you there’s not much they can do to help.

If Diamond was forthright and delivering top notch service, they would refund victims their money. I’m glad I have a background in Social Justice and Social Media.

I hope our pain will save others.

Notes from Irene

Since Ken submitted this article a week ago, Inside Timeshare received five more complaints directed against this same sales center, one against the same agent Ken complained about.  Especially in California, there have been complaints from Monarch owners of deeded weeks, coerced into giving up their deed and buy points, only to find out they did not have access to the week they had used and enjoyed for years.

http://www.monarchowner.com/p/opt-out.html

https://monarch-grand-vacations.pissedconsumer.com/lawsuit-against-monarch-grand-and-diamond-resorts-20150428628300.html

All timeshare resorts have non-member inventory that always guarantee non-members can spend the money but members often cannot find availability. Diamond is not the only resort with complaints like this. New York Attorney General Eric Schneiderman settled with The Manhattan Club for $6.5 million. Clearly, there is a problem industry wide.

https://ag.ny.gov/press-release/ag-schneiderman-announces-65-million-settlement-midtown-manhattan-timeshare-scammed

Timeshare deception and “bait and switch” is not a practice limited to Diamond, but in the case of DRI, licensed resale brokers will not even accept a Diamond listing. It’s bad enough if you can sell a timeshare if you were lied to, (often a timeshare is worth only pennies on the dollar), but with Diamond it is worse because it has been widely reported Diamond has virtually no secondary market. Try calling some of the members of the Licensed Timeshare Resale Brokers Association and see what they have to say.

http://www.licensedtimeshareresalebrokers.org/

ethics scale

We really do hope timeshare developers will work with us to stop predatory timeshare sales.

Thank you Ken and Irene for today’s article, it is with these stories that everyone becomes aware of what is happening, including the developers. Let us hope that they take note and start to change how they operate.

Inside Timeshare has just been informed from one of our German readers that Marriott is sending out emails to clients with the following statement (part of email translated from German):

An important commentary has been published in the press regarding letting restrictions on tourists (especially in the Balearics and in Catalonia) in 2017.
We would like to point out that MVCI Management, S.L. the only licensed company that has the right to rent properties in MVCI Resorts in Spain for themselves or their owners.
Weekly owners who rent their time-share weeks either by themselves or through third parties face fines of up to € 400,000.
Due to the complex nature of the legislation in question in Spain, we recommend that you obtain legal advice on your individual circumstances before renting your weeks outside the MVCI rental program.
If you have any questions, please do not hesitate to call us or send an e-mail to [email protected]com.
Best regards,
Marriott Vacation Club
We will obviously bring you more on this as we get more information as and when we get it.

If you have any questions or require any information on this or any other article published, contact Inside Timeshare, we will be pleased to help and point you in the right direction.

So that is it for another week, Friday is upon us and the weekend beckons, have a good one.

friday-again

Friday’s Letter from America

This week’s Friday’s Letter from America is not the one we originally planned from Michael Kosor, this will be published in due course.

First a little news from Europe, only last week we told of the calls from HMRC informing people that they have money from the Spanish courts, one reader has sent us this information.

They were called by a Kipp Stuart from HMRC Accounting, this was with reference to a ruling at the Malaga courts, Kipp informed them that they were holding over £22,000 on their behalf, unfortunately as there was no paperwork then the funds could not be released. They were given reference numbers along with the following telephone numbers:

08713 581033 to confirm with HMRC

0034 602489947 for the Malaga Court

Wonderful, only problem, the 08713 number is not used by HMRC and also carries rather hefty charges.

The 0034 number is a Spanish mobile number and no court will issue mobile numbers for confirmation.

As we published before

HMRC DO NOT CALL PEOPLE WITH NEWS THEY ARE HOLDING MONEY ISSUED BY THE SPANISH COURTS!

On the subject of courts, it has been a rather busy, that lot at CLA have announced six more wins. There have been five in Tenerife, four of these against Silverpoint, with one of the largest awards we have seen for sometime. In this case the client was awarded over 67,000€ including legal interest and second instance legal fees with the contract being declared null & void.

The other case involved European Coast & sun Holidays SL, the judge of the Court of First Instance declared the client’s contract null & void, along with the return of over 15,000€, then as a double whammy he also ordered back payment of over 16,000€  double the deposit paid.

Then in Fuengirola at the High Court the judges reaffirmed a sentence from the Court of First Instance against Petchey Leisure, by awarding over 14,000€ plus interest and legal fees.

Back to Gran Canaria and the Court of First Instance in Maspalomas once again declared an Anfi contract null & void with the return of 21,000€ plus legal interest.

These are just some of the cases announced this week, it is certainly an expensive one for those companies.

Now on with this week’s letter.

The Deep, Dark, Dank, Obscured From View, But Very Lucrative Timeshare Developer Revenue Stream: Are Its Days Numbered?

money tree

By Mike Finn, Finn Law Group

Originally published by Inside the Gate

https://www.finnlawgroup.com/learning-center/timeshare-developer-revenue-stream-days-numbered

Clarifications in blue added by Irene Parker for non-legal minds (like mine)

September 14, 2017

We as consumers, with a certain level of understanding of business, probably attribute the lion’s share of timeshare resort revenue to two central factors: timeshare sales and timeshare rentals. As it turns out, there is a third major revenue stream that’s related to sales, but is an entirely separate source of revenue, and it’s a significant one. Depending on the nature of the initial purchase, whether it was a deeded interest, or more commonly over the past fifteen years or so, a “right to use” amalgamation of points, this shrouded revenue source may indeed also be in violation of certain state consumer rights statutes, including the Uniform Commercial Code.

I’m speaking to the universally accepted resort practice of the resort retaining every dollar received from a defaulting purchaser, even if the entire purchase price or an amount close to the total was paid over to the resort prior to the owner’s default. This would include a cessation of paying the purchase price, maintenance fees or capital assessments.

It’s not considered relevant, at least if one believes the purchase contract, to factor in the sometimes quite significant amount paid in up to the moment of default, in terms of any form of accounting back to the sum of money paid by the defaulting purchaser. It’s all retained by the resort pursuant to the purchase contract, as “liquidated damages”.

In other words, an unwitting purchaser could have paid in say $18,000 of his/her $20,000 purchase price (not to mention the additional payments of interest and annual maintenance fees), defaulted for any number of reasons and still be pursued by the resort as a debtor for the unpaid balance! Well, isn’t that appropriate, you may retort! After all, the purchaser has defaulted on a perfectly legal (on its face) promissory note obligation of $20,000 when only $18,000 has been paid? Well maybe, but let’s examine what happens next.

Foreclosure of real property and disposition of personal property are governed by different bodies of law. Real property foreclosure sale varies dramatically among the states. Personal property disposition is governed by each state’s versions of Article Nine commercially reasonable disposition.

I found this explanation of the difference in real property foreclosure compared to personal property distribution in Texas helpful:

Texas Real Property Foreclosure

Section 51.002, et seq. of the Texas Property Code defines the minimum statutory procedure that must be satisfied to properly foreclose upon real property. In addition to the minimum statutory requirements, the deed of trust executed by the debtor-mortgagor details the agreed contractual terms and conditions for foreclosure of real property.

Personal Property Disposition in Texas

Article Nine of the Texas Business and Commerce Code defines the minimum statutory procedures that must be satisfied to foreclose upon personal property. In addition to the Article Nine requirements, the security agreement executed by the debtor-mortgagor defines the contractual terms and conditions for foreclosure of personal property. Generally, personal property disposition must be commercially reasonable.

Commercially reasonable is the key concept here. We can all relate to selling a car. According to NOLO, there is no hard and fast rule on what “commercially reasonable” means. What is commercially reasonable depends on a number of factors.

The procedure, not the price, ultimately determines whether the sale is commercially reasonable. Whether a sale is commercially reasonable depends on four factors, the:

  • manner
  • time
  • place
  • terms of the sale.

Perhaps Mike’s concern as it pertains to timeshare foreclosure being commercially reasonable, as it applies to car sales, also applies to timeshare.

“There are times, however, when a private or “dealer only” sale may not be commercially reasonable”, such as in the following instances provided by NOLO. Two of the six points they mention seem to apply to timeshare:

  • the creditor has the ability to sell the car on the retail market
  • the creditor buys back the vehicle then resells it a significantly higher price.

What If I Believe the Sale Was Not Commercially Reasonable?

If you can demonstrate that the creditor did not sell your car in a commercially reasonable manner, you can raise that as a defense against any lawsuit brought by a creditor looking to collect on the deficiency balance. In some instances, if you can prove the sale was not commercially reasonable, the court may reduce or even eliminate your obligation on the deficiency balance.

http://www.nolo.com/legal-encyclopedia/car-repo-sale-was-commercially-reasonable.html

Back to Texas

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.

Thus, real property foreclosures in Texas are very defined and structured procedures unique to Texas law which do not require the sale to be commercially reasonable. On the other hand, personal property foreclosure sales are not structured by statute, but they must be commercially reasonable as to every aspect of the disposition, including method, manner, time, place, and terms. The apparent conclusion is that although the legislature has specifically defined the procedures that must be followed to dispose of real property, personal property may be disposed of in any manner the secured party elects, as long as the sale is in all respects commercially reasonable.

The differences between real and personal property foreclosure procedures and requirements have had interesting effects upon lenders and borrowers. The notice provisions for real property foreclosures mandate procedures known to both the lender and the borrower. The procedures provide certainty as to the mechanics of the sale. Both lender and borrower are offered an opportunity to dispose of property, with each fully understanding when, where, and how the sale or purchase will occur.

In contrast, the nebulous standard of a commercially reasonable sale leaves both the lender and the borrower uncertain as to the ultimate and satisfactory sale or purchase procedure for personal property. Article Nine attempts to place the burden on the secured lender seeking a deficiency to sell in a commercially reasonable manner, whatever that may be in the particular circumstances found by the lender. Likewise, the debtor has no knowledge of how the lender will proceed with foreclosure and has the burden of proof, if attacking the sale, to show that the sale was not commercially reasonable. The more certain real property foreclosure procedures seem to work more effectively for both the lender and the borrower.

http://www.lenders360blog.com/2008/10/real-estate-foreclosure-vs-ucc-personal-property-commercially-reasonable-disposition/

Commercially reasonable according to Cornell Law School: A disposition of collateral is made in a commercially reasonable manner if the disposition is made:

(1) In the usual manner on any recognized market;

(2) At the price current in any recognized market at the time of the disposition; or

Wait a minute here!

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“At the price current in any recognized market at the time of disposition” means my Diamond Resorts points should be sold for nothing. Not one of the 64 members of the Licensed Timeshare Resale Broker Association will even accept a DRI listing and even Howard Nusbaum, CEO of the timeshare lobby ARDA, has been quoted as saying modern timeshare is a right to use product so the member should not expect any value back. I think Mike really is onto something!  

Other timeshare companies may argue that they do have a secondary market, but even those fortunate to be able to sell their timeshare, frequently sell them for pennies on the dollar of their original investment.

(3) Otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.

https://www.law.cornell.edu/ucc/9/9-627

Now on the edge of my seat, we continue with Mike’s narration:

In our original example, is the developer out the missing $2,000?  Ask what happened to the object of the $20,000 purchase? Well look at that, the actual property never, even for a moment, left the possession of the developer! My goodness, the developer just re-sold the interest to another brand-new buyer for a fresh new $20,000! So now are you still comfortable with the original purchaser being pursued for the missing $2,000? Perhaps sued, almost definitely having derogatory credit reporting, not to mention harassment from bill collectors? So what exactly happened to the first purchaser’s $18,000 paid to the resort? Is any of it accounted for with maybe a portion returned to the guy who ended up with nothing except perhaps a lawsuit?

Not a chance in Hades! The so-called ‘extra revenue stream’ is now actually an extension of the existing stream to the developer from sales, and sales, and maybe still more sales. How many times can the same unit interest (or bloc of points) be resold over the life of the project?

The distinction (and thus a portion of the reason for my overly dramatic title) is that typically sales revenue in say a condominium project is recorded once, and the revenue is, of course, offset by the cost of acquisition of land, construction costs, marketing costs, etc. and the net amount remaining after those costs is the developer’s profit. However, in the case of the timeshare developer, the original buyer covered those costs in their initial transaction, therefore the new additional piggy-back to back transactions didn’t come with any more land acquisition or construction costs, and therefore essentially came only with very little new or fresh costs of sale beyond the re-marketing costs.

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Well wait, you might say, this can’t be right! You sure this practice is universal? Yes? Well then, are you sure this unconscionable practice is even legal? Good question, and one wherein the answer to that question may be evolving and it’s not necessarily the laws in place that are changing, it’s the timeshare product changeover, the newer form of the property that is being marketed by the developer that is creating a change in which already existing laws are now perhaps becoming relevant to the timeshare purchase, and by doing so may be enforced by the previously out of luck defaulting purchaser. In fact, it may well be that the same old existing law pendulum may be swinging back in favor of the consumer!

I reference the fact that over the past decade plus a few years, there has been a change in the product that the timeshare industry is selling. Just after the turn of the century, the industry has backed off of selling of the deeded weekly timeshare product, which was indisputably a real estate product, in favor of a product they tout as being more user flexible: a product called a “right to use” product. Setting aside the differences in the actual ability to use the two very different types of timeshare “ownership,” the focus of this article is on the migration of the timeshare product from a real estate based product, morphing into what we attorneys refer to as “personalty”.

In our lawyer’s world, everything not legally defined as real estate is personalty (the only other option in the law). Presumably a ‘right to use’ timeshare product (points based) is not considered by the law as real estate, (if it no longer possesses any attributes of real estate and therefore as ‘personalty’, is subject to differing state laws particularly including the universally adopted, in some form in every state, Uniform Commercial Code).

Additionally, state laws regulating the real estate within its boundaries, do vary from state to state. Personalty, however, is a commodity of a different color. The Uniform Commercial Code (UCC), as its title suggests, is nearly uniform in its textual content, and from an applicability standpoint, every state in the Union has adopted, with minimum exceptions not applicable to this article, a version of the UCC almost identical with its neighboring states. In other words, as we discuss the law of personality (again, all that is not deemed real estate) we can speak to it across the board. These laws apply everywhere within the USA.

As a Florida lawyer, you may have seen other articles where I either cite specific Florida statutes or have issued a cautionary statement that the principles I was espousing may not apply in other jurisdictions. Contrast this article where I do not constrain my statements. Also, rather than cite state specific portions of the UCC, I, in places, simply refer to Articles within the UCC and in others the ‘pure code provision’.

Further, this article is not intended for an audience of lawyers or jurists. It’s intended for consumers to get a grasp of a relatively new set of laws, including the Uniform Commercial Code, that now may begin to play a much greater role in the laws governing timeshare projects and correspondingly, the developers who operate these projects.

I would like to ask Mike at this point about another universally accepted practice – advising borrowers to go home after purchasing their dream vacation plan and arrange financing with their bank or credit union. Perhaps it’s the subject of another article, but the majority of complaints received by Inside Timeshare say their sales agent advised them to seek a home equity loan to lower timeshares usury type timeshare lending rates. Many have done just that. My husband and I were told we could get lower rate financing, “No one should finance at our rates,” warned Donna. (Grand Beach, FL July 2015) I guess buyers that follow that advice are just out of luck, like Sylvia Saldana, now stuck with a $30,000 home equity loan after Diamond Resorts “took back” $60,000 worth of timeshare points. To make matters worse, Sylvia said she was aggressively encouraged to open Barclaycards, told buying more points would lower their maintenance fees. Had she succumbed to that suggestion, Sylvia and her husband would have lost even more money.

http://insidetimeshare.com/irene-parker-write-barclay-card-usa/

Back to Mike

Consumer rights may also get a major boost by the applicability of the UCC as well, since, to the extent that a contract provision contradicts an applicable statute, that contractual provision will be rendered null and void.

So, for example take the typical contractual provision that, “all monies paid will be retained by the developer as ‘liquidated damages.’’’ Essentially, the amount of damages fixed must be reasonable ‘in light of actual or anticipated harm’ and a term fixing an ‘unreasonably large amount’ is void as a penalty.

Therefore taking a contract, say with a 10% down payment and then adding subsequent monthly payments, the sum total could easily become ‘unreasonably large’, particularly in light of the quick turnaround on the “use rights” for which there has been a default, assuming which I think is fair with on-site sales team (ARDA’s Mr. Nusbaum calls them forever sales centers), that the interest will be promptly re-sold.

Another example of a UCC provision that may well change the way defaulted buyers are treated is as follows. The included reference to the specific UCC provision is the actual textbook unadulterated Code provision number, and may well differ from numbered state specific statutes. The developer or secured party is under a duty to notify debtors of the disposition of collateral under UCC Section 9-611. Further, the disposition must be done in a commercially reasonable manner.

Of particular importance, the secured party/lender is required to apply proceeds of any disposition to the underlying debt once expenses have been taken.

Is this where we end up with money back to the debtor? Can we go back to our original example?

I paid $20,000 and default at $18,000. For sake of discussion I am current on maintenance fees (which is probably not the case). The developer sells to the next hamster my forfeited points for $20,000. I am relieved of the $2,000 still owed, but if the developer sells for $23,000, I will be relieved of the $2,000 owed plus get $3,000 from the surplus amount? This next sentence sounds like the answer?

Also of notable significance is the duty of the secured party to pay the debtor any surplus which results from the disposition of collateral.

Additionally, the secured party/developer is liable for any damages caused by its failure to comply with Article 9.

In summary, a new day in the life of an unhappy timeshare owner is dawning. Existing laws never before applied to timeshare purchases may well now apply and particularly those timeshare interests that are non-real estate based like the ‘right to use’ interests that are now the mainstream of the timeshare community! Stay tuned for future developments on our website as we begin to apply the theories and applicable state statutes referenced hereinabove.

Respectfully submitted,

Michael D. Finn, Esq.

www.finnlawgroup.com

[email protected]

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Whew! That was exhausting. It’s a good thing we have legal eagles to figure these things out because Charles Thomas and I get pretty depressed at times listening to “Nightmare on Timeshare Street” stories. We have heard enough to fund a series. The question I am most frequently asked is, “How can they sleep at night?”

Thank you to Mike Finn for the chance to publish this and also to Irene to add her clarifications for those without legal minds.

It now only remains to say be careful who you do business with, check and check again, if you need help, then contact Inside Timeshare. Have a good weekend.

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