Over the past few months Inside Timeshare has been following the various “fake” law firms operating out of Malaga and targeting former clients of Eze Group. All have the same story, there are substantial funds being held by the Malaga courts seized from a recent trial of Eze Group. For a fee which ranges from 600€ to 2,400€, they can have this money released to your own account. First, we bring you an update on another “fake” firm JSD Group.
Inside Timeshare first reported about this “company” on 10 June and again on 17 June, it does not make good reading. It becomes very apparent that this company has been set up with the sole purpose of depriving unsuspecting timeshare owners of thousands.
The latest email from one lucky reader shows how careful you must be, they received a cold call from someone representing JSD Group informing them they could get a full “refund” for their timeshare. The cost is only 600€.
Our reader informed them they had not owned the timeshare since 2000, that is 20 years ago! Not to worry about that, said the caller, you can still claim the refund.
So who is going to pay the money?
It is also a fact that the purchase of the timeshare was well before the current timeshare laws were put into place on 5 January 1999, so the contracts are not illegal as they do not come under the new laws so could not have even been taken to court.
The website was registered on 25 November 2019 and is due to expire on 25 November 2020, so once again we have a website for a “law” firm registered for only 1 year!
The website itself shows no company details such as company registration numbers, lawyers names or bar association registrations. Our searches have not revealed any company records either in Spain or the UK.
Once again the story is the same as the others, the courts in Malaga have seized assets (vast sums of money) after a recent trial of Eze Group. Morales Maxwell has been charged by the courts to contact Eze Group clients to facilitate the return of in this case over £20,000!
Of course, this is not done for free, in order to get the funds released by the court the client has to pay £2,400 first!
As for the supposed trial, Inside Timeshare is not aware of any trial being held in Spain especially in Malaga against Eze Group. We do know that there was a trial held at Birmingham Crown Court where the O’Reilly’s were convicted. We also know that no money was seized by the cour but an investigation under the Proceeds of Crime Act was launched, As far as we know that is still ongoing.
Have you been contacted by either of these companies or any company with a similar story, if so please use our contact page and let Inside Timeshare know? It is your information that will help others to be aware of the potential scams that are emerging.
Welcome to another Letter from America, This week Irene Parker writes about Americano Beach Resort and the lawsuit that has been filed regarding Foreclosure Proceedings, but first a quick warning to our European readers.
Another warning is being issued to those clients of Eze Group, a new firm has just emerged contacting consumers stating they have been appointed by the court to manage the return of money paid to Eze Group.
The company was incorporated on 19 July 2016, but the filing history shows very little information or filing of any accounts.
As we have stated before, the courts do not appoint private companies or third parties to manage any payouts. No money has been awarded by Birmingham Crown Court to consumers of Eze Group, the O’Reilly‘s are now subject to investigation under The Proceeds of Crime Act, which will take some time to complete.
A Class Action Lawsuit was Filed against ARC Daytona Americano Beach Resort Contesting Real Property Foreclosure Proceedings are being Illegally Applied to Foreclose on Personal Property
By Irene Parker
March 29, 2019
DC Capital Law, LLP filed a class action lawsuit on November 6, 2018, against ARC Americano, LLC and Americano Beach Lodge Resort Condominium Association on behalf of plaintiffs Gerald J Sohasky and Norma J. Sohasky in the Florida Circuit Court of the Seventh Judicial Circuit Volusia Civil Division.
According to the lawsuit, plaintiffs Gerald and Norma Sohasky allege illegal practices that violate the Florida Consumer Collection Practices Act and the Florida Vacation Plan and Timeshare Act by threatening foreclosure on a piece of personal property and threatening to charge up to 40% of amounts owed in collections, where the original contract or law does not authorize charging such collection fee. The ARC lawsuit contends “Floating Week” debt is consumer debt, incurred primarily for personal, household or family use.
Having read or listened to complaints from 746 timeshare members and owners, I am astonished by the level of stress caused by what is supposed to be a stress reducing product.
Comment sent to Inside Timeshare
My parents bought into the Americano in the 90’s. Fast forward to 2017 – my 70 something year old mother, now a widow, had to pay for a service we hadn’t used in ages.
They (Americano) HOUNDED MY MOM about switching to the freedom 365 plan. She was a 13 year widow on a very fixed income and somehow we were pushed into signing for a new plan that would offer us huge hotel discounts and she would be able to stop paying after 5 years.
My mom is going broke! Sara
My husband and I purchased an Ozark timeshare in 1985. A St. Louis native, we enjoyed years of vacations, but after moving to Florida we no longer desired to vacation in the Ozarks. I contacted the resort and talked to the manager I had gotten to know over the years. “Yeah, we had a board meeting and decided we can’t expect loyal owners who faithfully paid maintenance fees for thirty years, now older, to be held hostage,” she said. A few days later I received a one page form to be notarized, sent it back and that was that. We paid $8,000 for the timeshare in 1985. I had no regrets getting nothing in return as we had used the timeshare for many years. Like Sara’s mom, and many in my age bracket, we are losing hips, knees, eyesight and spouses. The thought of going to the Ozarks alone, should something happen to my spouse, is depressing.
Americano is demanding owners, many who have owned at Americano for decades, spend an additional $5,000 to $6,000 to join a Freedom 365 Travel Club in order to be released from their deeded weeks. Making this mandatory for seniors seems unfair. Granted, the resort is in need of funds as Americano is the only Daytona resort still not opened after suffering hurricane damage, but other developers now have voluntary surrender programs for members in good standing. There may be a fee, but the fee is less than $1,000. Don’t forget that we were all told we were buying real estate so no problem selling the timeshare should we need to dispose of it. In a statement made by ARC’s law firm, they assert they will work with owners to find appropriate alternatives but typically for seniors, a Travel Club is the last thing needed. I’m looking at long term care plans.
The issues related to property damage are complicated. When Americano owners contact me, I explain that if they bought a primary residence condo, and the condo is rendered uninhabitable, the assessment fees don’t stop. It would be difficult to sell an uninhabitable condo. I understand ARC’s argument from this perspective.
Due to pending litigation, ARC’s response is from their attorneys. I have found others at Americano willing to listen and weigh in consideration; the harm timeshare exit in general is causing especially seniors. Let’s hope continued dialog will result in some form of relief for angry and frustrated owners.
Below is the response we received from ARC’s attorneys. Contrary to the attorney’s response, this article will not be disseminated to some of the Americano owners. Some Americano owners do read and share our articles. We sent a draft of today’s article to ARC to give ARC an opportunity to correct any inaccuracies, which they corrected. Inside Timeshare is published from Spain. Following ARC comments, are arguments presented by the plaintiffs’ attorney taken from the lawsuit complaint. A legal expert weighs in. Plaintiffs’ attorneys did not respond.
Response from ARC’s attorneys submitted by ARC President Scott MacGregor:
This information is given to correct inaccuracies to be contained in a publication that will be disseminated to some of the owners. Americano is a Legacy resort that was severely damaged due to the recent back to back hurricanes, 2016 Hurricane Matthew and 2017 Hurricane Irma. There was one Special Assessment for $4,348,109, not $15 million, which will correct the incorrect reference in the article. The Association continues to seek insurance from its carriers, but had to pursue litigation to address the claims. The Developer is seeking financing and other options for the remaining restoration of the Resort estimated to be $15 million plus. However, it is imperative that all owners pay the maintenance fees, taxes and assessments as required under the Declaration and Florida law. It is fundamentally unfair to the paying owners for other owners not to pay to operate and restore the resort.
The Association is faced with vigorously defending any lawsuit against the Association, which litigation will only increase fees and costs to all owners, as required under Florida law, at the Resort. While our trial legal counsel has stated that no comment should be made at this time concerning any lawsuits, the Americano Beach Lodge Resort is a real property timeshare under Florida law and actions taken are authorized and required under the Declaration and Florida law.
The Developer and Association continue to try to work with each owner to find appropriate alternatives as discussed before. Owners are encouraged to seek ownership and payment options through the Association and Developer. Lawsuits against the Association will not only increase maintenance fees and assessments for all of the owners due to legal and professional fee expenses, but also may leave those owners with potentially expensive legal bills in addition to their ongoing obligations to the Association. We believe it is much better to work together to resolve the issues that everyone is facing rather than unnecessarily expend owner and Association funds and resources that are needed to restore the Resort, for court expenses.
More from Sara:
They used scare tactics to convince my mom that I would be responsible for the timeshare in the event of her passing, and my children would be responsible after I passed. I have learned this is not true.
The Freedom 365 plan supposedly offered us huge hotel discounts and would allow my mom to stop paying after five years. We attempted to use the Freedom 365 plan. The first two times we used it we did get a good discount on hotel rooms, but after that the deep discount was no longer available. We got a good rate the first time at $93 for a Hyatt room, but when we later tried to book the same week of the year the price was $100 more, about $170 plus tax. I called and asked why it was so much more. They stated they could price match if we got a better price on another website. What good is that? You don’t have to pay any kind of upfront money, financed by a loan, to book a hotel room using an online service. We were promised the best deals. We were promised so much and at what cost? My mom is going broke! The amount financed was $6,000.
Following are allegations made in the lawsuit
Is a “Floating Week” timeshare real estate or personal property?
If the timeshare is defined as personal property, the lawsuit claims foreclosure rights do not legally exist and are in violation of the Florida Timeshare Act.
I’ve had many discussions about timeshare foreclosure questioning whether a timeshare really is real property. I found the requirements governing real vs personal property foreclosure in Texas helpful:
Comparison of Texas Foreclosure Procedures for Real property and Personal Property
Real property and personal property foreclosures are dramatically different. Real property foreclosures are conducted on the first Tuesday of each month between the hours of 10:00 a.m. and 4:00 p.m. at the courthouse door in the county in which the real property is located, with a notice posted at the courthouse door, personal notice to the debtor, and filing of the notice with the county clerk, all 21 days before the foreclosure sale. These requirements are defined by § 52.001 of the Property Code and are unique to Texas law. Personal property foreclosures are conducted under § 9.504 of the Texas Business and Commerce Code, which generally requires a commercially reasonable sale. The requirements of Article Nine of the Texas Business and Commerce Code are followed, with some minor variations, by all states except Louisiana.
According to the ARC lawsuit, plaintiffs purchased only the ability to make a reservation rather than ownership in real property. In the “Floating (or flex use) periods and The Timeshare Plan article of the Declaration, the Declaration makes it very clear that the Warranty deed of an “owner” who switched to Floating time to become a member of a “Right to Use” program renders the deed worthless and provides none of the requisite rights associated with real property.
I asked an expert, as argued in the lawsuit, if switching from a “Fixed Week” to “Floating Week” would render the “Fixed Week” deed worthless.
Purchasers still own that deeded week and it can be found in land records. The purchaser simply surrendered their right to occupy that week and the use rights that went with it in exchange for a floating week use right. Their interest, however, is tethered to an actual real property ownership (even if they cannot legally possess it). If they sold their interest, they would be selling the deeded week they bought which would include the surrender and exchange agreement for a floating week. By the same token, if they are foreclosed upon for non-payment, it would be the deeded week that would be foreclosed and the agreements tied to it (i.e., the floating week right) would be rendered null and void.
As an analogy, let’s say you join a car-sharing group where everyone in the group can use whatever car is available using a reservation system. In order to get into the group, however, you are required to purchase a car to add to the fleet. You don’t buy the car outright; you finance it through the group such that your monthly dues are part car payment and part fees. Even though you hold title to one car in the fleet, you have no more right to use that car than anyone else in the group. If you fall behind in your monthly dues, you will lose your car-sharing membership (i.e., the use rights you bargained for), and the car that you added to the fleet (i.e., the tangible property you hold title to but surrendered possessory interest in) will be repossessed by the group.
Note from Inside Timeshare: Spanish Timeshare Law prohibits Floating Weeks and Points as there is no tangible product and they lack any substance.
My unnamed source is not saying the lawsuit is without merit, in that they feel the underlying real property is illusory, but they feel it may be a tough argument to win.
Timeshare Foreclosure Explained to Lenders
What happens if I stop paying my maintenance fees? Timeshare attorney Mike Finn answers the question in this article:
Proprietors behind Americano are ARC American Resort Collection
We seek to provide timeshare members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.
Thank you Irene, next week in the Tuesday Slot we welcome Mike Kosor with his response to the Wyndham Sr VP Jason Gamel and his testimony to the Florida HB 435 workshop.