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Lopesan and Apollo Team Up & Breaking News on a New Scam

Yesterday Tuesday 14 April the European Commission has given the green light for the acquisition of two hotels in the South of Gran Canaria by the Canarian Hotel Group Lopesan and the US company Apollo Capital Management. The hotels are the Hotel Faro in Maspalomas and the Hotel Buenaventura in Playa del Inglés, two of the main tourist areas of Gran Canaria.

As we already know Lopesan along with their German partners IFA own 50% of the Anfi Group, although they do not have control of the Board of Directors which is the “Golden Share” in the control of Hermanos Santana Cazorla SL. But with the legal battles, the Cazorla Group are currently going through it is only a matter of time before full control may revert to IFA/Lopesan.

Inside Timeshare published this news which was announced on Info Canarias, both articles can be found on the links below.

https://insidetimeshare.com/its-friday-and-the-end-of-another-week-another-macdonalds-horror-story-surfaces/

https://infos-grancanaria.com/2020/santana-cazorla-sl-muss-wohl-in-die-insolvenz-gehen/

Apollo Global Management was founded in 1990 by Leon Black, he was a former banker with Drexel Burnham Lambert. Drexel had closed earlier that year after a securities scandal which resulted in the bank having to pay $650 million in fines. Being unable to repay a $100 million debt it collapsed.

According to the online financial journal The Street, Bloomberg had called Drexel Burnham Lambert “Renegades of Junk”, due to its involvement in the junk bond market. Irene Parker, a writer for The Street and a Diamond timeshare owner herself, believes that this title is more fitting for Apollo Global Management after its acquisition of Diamond Resorts. (follow links below).

Original Inside Timeshare article

https://insidetimeshare.com/700-2/

Links to independent reviews on Apollo

https://www.thestreet.com/opinion/is-apollo-returning-to-its-junk-roots-with-its-acquisition-of-diamond-resorts-13624491

https://de.reuters.com/article/us-diamond-reso-m-a/apollo-global-to-buy-diamond-resorts-for-2-2-billion-idUSKCN0ZF1JV

So what could this mean for Anfi?

At present, there is no indication of how this will affect Anfi and their members, even though we do know that IFA/Lopesan are very interested in taking full control of the Anfi Group. With the legal problems and the possible liquidation of the Cazorla Group, a full takeover is definitely on the cards.

This now leaves the question of what are the intentions of Apollo Global Management, with the deal made with Lopesan on these two hotels could this mean that Apollo may just have an influence on Anfi?

Only time will tell, as and when further information comes to light, Inside Timeshare will publish it here.

Inside Timeshare has just received information on a new “Scam” which timeshare owners are being subjected to, this one is supposedly from the Banco de España and a “court case” in the Malaga Courts against a number of companies.

According to the information received, substantial sums of money have been seized and is waiting to be claimed by the clients who paid them in the past.

Past Clients of these “companies” are now being contacted to inform them that they have been awarded the money by the courts and it is the Banco de España who is dealing with it all. Obviously there is a “tax” to pay to have the money released, haven’t we heard this one before?

It is an obvious “SCAM” and is evident by the email address which is being used to send “clients” the information: 

[email protected]

This is a free Gmail account and is not an official Banco de España email address, just ask yourself the question, why would a national bank use a free Gmail account?

A full article will be published on this in the next couple of days, but in the meantime, if any other readers receive any phone calls or emails with regards to this, please contact Inside Timeshare using our contact page.

Irene Parker: Barclay Card and Timeshare in the USA.

Back in July Inside Timeshare published the article about Shawbrook Bank setting aside around £9 million, to cover defaults in loans issued by timeshare sales staff. It announced that the bank had not carried out its due diligence in accepting these finance agreements.

The article also highlighted the ongoing high court action brought against Barclay Partner Finance for loans issued for timeshare. These were for the so called “investment” packs being sold by Resort Properties / Silverpoint. Many of the agreements were given without the normal checks being carried out in respect of the clients income or the ability to repay the loans, with many of the applications being falsified in order to get it passed.

Another aspect of the article showed the same thing happening in the USA, with people who did not qualify for normal finance, being passed to a Credit Union. In this case the company was Quorum Federal Credit Union, which would then sign them up as members. These loans accounted for around $40 million for Diamond sales.

It has now been highlighted that sales staff in the US are issuing credit cards, again it is Barclays who are in the picture. Irene Parker, sent the following article.

Barclay card by Irene Parker 10/24/16

barclay-card

There is nothing wrong with travel reward credit cards, but when consumers on vacation get locked into timeshare presentations that can last for hours; credit card lending can turn predatory.

Several banks have come under fire for overzealous sales practices. Wells Fargo and Barclays Bank through Barclays Partner Finance, along with other U.K. banks, have come under regulatory scrutiny and been the subject of lawsuits for a host of reasons, including predatory lending through the use of timeshare developer-sponsored credit cards.

Shawbrook Bank in the U.K. has admitted that it didn’t do its due diligence when approving the finance for vacation ownership products. One of its biggest partners is Diamond Resorts International, a timeshare company that has come under fire for its aggressive sales practices.

Diamond offers a Diamond Resorts Barclaycard Master Card with a 0% promotional six month APR if used for a Diamond Vacation Ownership Interest down payment, along with Diamond Resorts International reward points for other purchases. After that, it is a variable APR of 15.24%, 19.24% or 22.24% depending on creditworthiness.

Diamond Resorts International’s primary business segments are hospitality and management services and vacation ownership interest, or vacation points sales, and financing.

It is the financing component that often makes people with vacation brain sign a contract on impulse for perpetuity, not even having used the vacation service at the time of purchase. The decision is often based on how well the buyer likes the resort if they aren’t an existing owner. In other words, they may not use the booking program until the next vacation.

As an example, Arthur Saldana, 55, and his wife Sylvia, 49, have been Diamond Resort International owners for several years. They owned a deeded week at the Sunterra London Bridge Resort in Havasu, Ariz., for about 10 years prior to Diamond Resorts International acquiring Sunterra in 2007.

The couple was persuaded to give up a deeded week, one that came with a deed that has a limited secondary market, in exchange for timeshare points that are non-deeded with no secondary market. During a series of five sales presentations over a five-year period, the Saldanas accumulated 30,000 Diamond Resorts International points that elevated them to gold status in 2013.

Sylvia Saldana said that she and her husband signed many contracts, and they thought they were actually helping their children. “We thought that after we paid off the Diamond mortgage our four children would only have to pay maintenance fees,” she said.

But maintenance fees increased to the point where they could no longer afford to own their points. The family soon found that they had to charge maintenance fees to their credit card in order to pay them.

The Saldanas had already taken out a $33,000 home equity loan from their credit union to reduce the high Diamond Resorts International loan interest rate, typically 14% to 18%.

Worse, the children, now almost grown, say that they have no interest in timeshares.

At their last stay at a Diamond Resorts International resort in August 2015, Sylvia Saldana said that a sales agent tried to convince them to purchase another 10,000 points in order to achieve platinum level, which is 50,000 points (Remember they owned 30,000 points).

The sales agent explained that by being platinum, it would allow the couple to pay their maintenance fees with their points, as only platinum members are allowed to use their points to pay maintenance fees, Sylvia Saldana said.

At the time of the 2015 presentation, Diamond Resorts International’s FAQ indicated that as of that year, only platinum members could exchange points for a monetary credit toward the cost of their annual maintenance fees for their collection membership and points and/or dues for the club.

A Diamond Resorts International representative who gave her name as Pamela — these reps aren’t allowed by the company to provide their last names — confirmed that “only platinum members can use their points to pay maintenance fees. Any member can open a Barclaycard to pay fees.”

When we purchased our Diamond Resorts International contract, we were told that the practice of using points to pay maintenance fees isn’t encouraged due to the point value being reduced to pennies on the dollar if used to pay maintenance fees.

The sales agent aggressively tried to persuade the family to open a Diamond Resorts International credit card to pay for the additional points, despite the fact that they couldn’t afford the fees, Sylvia Saldana said.

Arthur Saldana became so angry, he left the presentation.

Fortunately, the couple realized that the credit card wasn’t a prudent solution to their problem.

Keep Reading

More News From Across The Pond: Bob Massi The Property Man

Following on from some of the articles highlighting the problems timeshare owners have in the United States, Irene Parker sent Inside Timeshare the following link:

 

http://www.foxnews.com/leisure/2016/06/09/tired-your-timeshare-heres-how-to-unload-it-without-losing-money/

 

Bob Massi is a Las Vegas attorney known as The Property Man hosting a show aired by Fox News, who is a very determined advocate of the rights of consumers. In one case Irene points out a couple he helped resolve the issue of their bankruptcy, it took them five years to attempt to buy a house, then they found that the bank had not foreclosed in the first place.

 

He has also highlighted the problems in the timeshare world and as you can see from the video, gives the consumer some sound advice. He points out that unlike real estate, timeshare does not appreciate in value, that many owners if they are able to sell, only recoup a fraction of their original investment.

fox-news

So this is not just a problem we have in Europe, it affects timeshare owners in the US. In his article, he points out how to sell the timeshare or how to just get out, in the interviews with licenced resale brokers they explain how to safeguard yourself from the “scam artists” that promise the earth and deliver nothing. He also explains how one particular scam works, this is where you have listed your timeshare for sale on a marketing website, the next thing you know, a bogus company is in contact with you saying they have a buyer. (Think of the corporate buyer pitch or even the Russian market one, we have many buyers waiting!). Now in order to conclude this “deal” a closing fee is required upfront, guess what? You never hear from them again.

 

According to the video, timeshare is in the top 10 of scams in the US, this is probably the same for Europe. He also interviews the Florida Attorney General Pam Bondi, in this she states they worked with the timeshare industry to enact laws to curb this abuse. She points out that since the laws were put into place they have closed down numerous firms, around 41, in many cases they have also secured convictions.

 

In the US, as we have highlighted before timeshare is regulated by real estate laws, sales staff must be licensed, if not they can’t sell the product. For those in Europe who own timeshares across the pond, the problem of how to get out is even more difficult, mainly because of the differing state laws and the distance involved. There are some companies in Europe who can help to get out of the timeshare, but if you are looking to sell, this article will help. You could also contact The Licensed Timeshare Resale Broker Association, (see link at bottom of the page), it consists of 64 members and works completely within the legal framework, all members must adhere to regulations and the codes of conduct set out by the association. But remember, as stated in the video many timeshares sell for only 10% of the original purchase price, contrary to what you were told at the initial presentation.

ltrba

Irene and her husband have also recorded an interview with Bob Massi, it is hoped that this will be broadcast in the Autumn (fall in American), when it is we will publish the links here. We also look forward to more articles in The Street by Irene, including one she is working on now.

The following link is an article about Bob Massi, it gives a very good insight into the man himself, the type of work he engages in and what it means to him, Hope you enjoy it.

 

http://www.reviewjournal.com/business/longtime-lawyer-sees-himself-advocate-underdogs

 

If you require any further information about this article, or any timeshare matter, contact Inside Timeshare. If we don´t know the answer we will find out for you.