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Friday’s Letter from America

It’s Friday and time for another Letter from America, this week another new contributor Elaine L, in her Open Letter to many heads of the timeshare industry explains her “Nightmare on Timeshare Street”. But first some news from Europe.

Yesterday we published the article on SilverpointsCompany Participations” scheme and the fact that they admitted in court that it is indeed timeshare, just after we published we had some more news regarding Silverpoint.

In a case that was won recently the lawyers from Canarian Legal Alliance have had success in securing another “Cash Embargo” against this company, also securing the payout to a German client. This happy client has now received the grand sum of 57,239.67€, which is 15,292€ more than they originally paid to Silverpoint for their timeshare.

Once again this is a tremendous blow to a company that has for many years been making millions from unsuspecting clients, the courts are obviously taking a very dim view of these past transgressions.

Inside timeshare has also received information from another reader regarding timeshare presentations, this time Azure Resorts in Malta, incidentally this is another Silverpoint company. This time it is regarding the QA sessions or what is commonly known in Europe as “button up”. It is the stage where the contracts are gone through with the client and explained.

Apparently these sessions are now being recorded, our reader explained that the person conducting the QA or button up re-words what the sales rep has told the client, such as the timeshare will go up in value and that they can sell it on if they no longer want it. The QA staff explain that they cannot guarantee increase in value or future sale, that is down to market forces. Again this is another attempt to secure the sale and negate any future litigation and complaints.

It must also be remembered that the person conducting these sessions is usually also on a commission for the completion, so it is in their best interest to ensure that the client does sign.

So now on with this weeks Letter from America.

An Open Letter to:

Michael Flaskey, Diamond Resorts CEO,

Robert Clements, ARDA lobbyist and Attorney

Gary Stein, head of Apollo Corporate Communications

Charles Zehren, Apollo Investor Relations

By Elaine L, #83 in our list of veterans, active duty service members, Department of Defense workers who feel we experienced unfair and deceptive timeshare sales practices

November 30, 2017

Timeshare sales can pose a national security risk. Just about anyone can get hired to sell timeshare points, and for those of us with Top Security clearances, our careers could be in jeopardy because we believed a timeshare sales agent. When the timeshare sales agent suffers no consequences, the sales agent has been given the green light to sell by any means knowing all complaints are answered in favor of the sales agent.  

 The public needs to know their complaint will fall on deaf ears before buying a timeshare. No matter what the sales agents said, and with little to no enforcement, the buyer will be held responsible for the contract. Diamond should want the public to know this.

According to Social Media reports, the Nevada Real Estate Division (NRED) also  dismisses complaints with, “You have no proof,” so there is nothing to stop a sales agent from making up reasons existing member need to buy additional points.

Our complaint:

Ages 50 and 49 respectively

I have a Top Secret security clearance

October 13, 2018 complaint

At a December 17, 2017 meeting, we asked Davia H about selling the Diamond/ Sunterra timeshare we already owned. We had tried unsuccessfully to sell our timeshare.  We made it clear that our interest was to sell all our interest in Diamond/Sunterra points.

Davia told us that there was no way to sell the Sunterra timeshare because we did not have “Full Club Member” Diamond benefits. She encouraged us to become “Full Club Members” with the promise of being able to sell the timeshare easier.

She said that the points we owned from our original timeshare were worthless and that we needed to upgrade to a “Full Club Member” to receive “benefits that would increase the value of the timeshare to make it worth buying.”  We were quoted a unit price of $8 per unit. We feel that not disclosing that timeshare points are worthless was a material omission.

Davia showed us Timeshareangels.com (a site selling Wyndham Resorts points and timeshares) – she told us she is also a Wyndham timeshare sales agent and said that people were selling points (units) for $4-$6 per unit. Davia showed us examples of listings for Wyndham timeshares. It has been widely reported Diamond points are worthless.    

Davia also said that she would show us how we could make money off our timeshare, if we bought into Diamond’s “Full Club Member” status. Davia advised us to wait six months before trying to sell because the value of the timeshare would increase. She also told us that she knew someone who helps people sell their timeshares and could give us her contact’s information. Given Davia told us to wait six months before trying to sell, it was too late to rescind the purchase agreement. Repeated calls and texts to Davia went unanswered.

Other claims Davia made:

  1. Our management fees would be locked in as “Full Club Members” so maintenance fees would no longer increase,
  2. The value of the timeshare would appreciate over time because of the affiliation Diamond now has with the Apollo Group. Due to the affiliation with Apollo, Davia said we could recoup our cash outlay and the value of the timeshare would continue to increase over time. Davia said the Apollo Group paid way too much for Diamond so were eager to recoup some of the losses.
  3. We could make our points earn money by selling them – she said we could sell our points for more than the $8/point we were paying.

We did not want to buy more points. We only bought points so we could sell them.

3500 points purchased at Cancun Resort in Las Vegas December 17, 2017

Purchase Price: $15,375

Barclays Credit Card opened and charged $14,000

I have filed a complaint with the Securities and Exchange Commission. I will also be writing to Maureen Farrell at the Wall Street Journal, who wrote of Diamond’s upcoming $4 billion IPO. Wall Street needs to hear our side.

Our original complaint sent March 1, 2018 was ignored. Davia used information asymmetry to make money off people in my position. My job and career are at stake due to her charade due to my top security clearance.   

Diamond used the recording of the Quality Assurance against us. The “Hospitality” agent said my husband had asked two questions. The questions were about an assessment fee and how long is escrow. How could we ask questions about the ability to make money or sell points if we didn’t know Diamond points were worthless?

The recording of the QA was reported in a Diamond CLARITY press release to be for the purpose of enhanced training. Several members have reported the QA recording has been used against them. I would like to know if the QA person is penalized financially if a sale doesn’t go through. Diamond does not allow the recording of the sales presentation. For us, there was no Diamond CLARITY promise of RESPECT for the customer, clear, concise, accountable and transparent information.

I sent our complaint to this list of contacts found on our advocacy Facebook page:

To: Michael Flaskey, CEO

Barclay’s President’s Office

DR PR Firm

ARDA

ARDA ROC

Association of Vacation Owners

Hospitality

If a sales agent can say anything to sell points, and the company response is that you signed a contract, then the public must be warned that they should not believe a word a timeshare sales agent says. There are over 2100 members on our member sponsored Facebook page.     

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

Thank you to Elaine for your contribution this week, we are sure it will be recognised by many of our readers, we can only hope that all those it is addressed to actually take notice, somehow I very much doubt it.

If you have had any experience such as those we publish, or have been contacted by any company telling you they can “exit” you from your timeshare or even get you “compensation”, use our contact page and let us know. Inside Timeshare will point you in the best direction and save you a lot of your hard earned cash.

Have a good weekend and join us next week for more “Nightmares on Timeshare Street” and all the other scams that are out there.

The Tuesday Slot: Arbitration

Today we feature excerpts from  Chris Parker, a writer from City Pages and his article called The Plot to Kill Consumer Protection

Continuing on yesterdays topic of “Bogus” claims companies and “Fake” law firms, Mindtimeshare  has also highlighted another company, European Liquidations.

Again this company uses the @consultants.com email address, which as we have said previously it is just a free email provider just like gmail and yahoo.

[email protected]

The telephone numbers provided are:

0203 384 3999 and Fax – 0872 751 6998

Unfortunately, Mindtimeshare has very little information and we have been unable trace any company with this name at company house. But it is important to inform readers of all companies that crop up along with telephone numbers and their email address, after all to be forewarned is to be forearmed!

As this article was being prepared Canarian Legal Alliance issued another court ruling, this was from the Court of First Instance in Maspalomas against Palm Oasis (Tasolan). In this judgement the court ordered the return of over 15,000€ plus all maintenance fees and legal interest, the contract was also declared null and void.

The court ruled that the contract infringed Law 42/98 in that it was for a period exceeding 50 years, Contract to be valid must be for a period of between 3 and 50 years, this should also be specified in the contract and explained to the client before the contract is signed. It is clear the Supreme Court rulings are having a severe impact on all contracts that do not follow the stipulated laws.

Now on with today’s article.

Part I – Questions a Timeshare Buyer Never Asks

Does this timeshare contract contain an arbitration clause?

arbitration

By Irene Parker

Part II – Class Action Lawsuits – Misunderstood by Timeshare Members

Friday’s Letter from America

Tuesday October 24

Excerpts from “The Plot to Kill Consumer Protection”

By Chris Parker

“Should a dispute arise, arbitration forces consumers out of the court system and into arbitration where appeals aren’t allowed, corporations historically wield a huge advantage—when not outright rigging the system—and details of misconduct are kept private,” writes Chris Parker, a reporter for City Pages

http://www.citypages.com/news/the-plot-to-kill-consumer-protection/451334393

“The right to have your dispute resolved before a jury of your peers is as American as it gets; it’s a fundamental core American democratic principle,” says Minnesota Attorney General Lori Swanson. “To think that millions upon millions of consumers are forfeiting their fundamental right to have their day in court because of fine print in a contract….” “Though arbitration may sound preferable to the expense and anguish of court, it hands a major advantage to companies. The costs savings aren’t much: Arbitrators usually charge $300-$400 per hour minimum, and some bill into the thousands of dollars. But arbitration clauses typically bar the consumer from joining class-action suits. The strategy has emboldened fraud on a massive scale.” “In July, the Consumer Financial Protection Bureau ruled that arbitration clauses can’t bar consumers from joining class-action suits. The GOP Congress intends to repeal the rule.”

Sen. Lindsey Graham (R-South Carolina) told the Wall Street Journal that such clauses are “a windfall for the companies, in terms of how you settle their cheating.”

“Even when someone does challenge them, arbitration rulings are usually private, with no appeals and little documentation. Like a tree falling in a vast forest, Wells Fargo’s customers didn’t hear the millions of other victims, and the press remained none the wiser.”

“With consumer protection increasingly whittled away by keen lobbyists and cunning corporate lawyers, the idea was to build an agency whose sole mission was protecting consumers.”

cfpb1

“During its brief life, the bureau has established itself as the only Washington agency more responsive to consumers than to lobbyists. Since 2011, it’s handled 1.2 million complaints, returning over $12 billion to consumers.”

The CFPB and Timeshares

By Irene Parker

The Consumer Finance Protection Bureau has also been the first line of defense for timeshare buyers alleging they were sold or up-sold by deceit and bait and switch. Given the staggering number of reports of deceit and bait and switch on the front end of the timeshare sale, if the CFPB is regulated out of existence, widely predicted, many timeshare members feel the only court that will be left available to them is the court of public opinion, warning unsuspecting consumers as to the minefield of ways the evolution of right to use timeshare points has opened the doors for unscrupulous timeshare sales.

Our standard disclosure is that not all timeshare sales agents are deceptive and not all timeshare companies are predatory.

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

I asked ever assessable timeshare attorney Mike Finn of the Finn Law Group which timeshare developers have an arbitration clause. Diamond Resorts is the only major developer that I’m aware of that has the arbitration clause,” explains Mike. I spoke with other attorneys who say the same.

Banks and other lenders can pick arbitrators. As Minnesota Attorney General Lori Swanson expressed –

shark

“We heard from arbitrators that were blackballed and essentially told, ‘You’re not going to be an arbitrator anymore because you’re ruling for the consumer,’” she says. “That’s one of the problems with arbitration. The court system is paid by the taxpayers. Judges are neutral and their funding comes from the public.” City Pages “The Plot to Kill Consumer Protection”

A common comment on complaint sites and from 170 Inside Timeshare readers reaching out to us for assistance is, “Let’s get a class action going!?” Timeshare members typically confuse the term and substance of a class action. We’re all used to class action ads on television say, for example, a medical device failure. The difference with timeshare is that damages are not uniform, which is necessary for a class action. Some lawyers may call a lawsuit a class action on behalf of only one or two plaintiff class representatives but they are more like individual lawsuits. Real Class Actions involve hundreds or thousands of plaintiffs. More later,

Part II – Class Action Lawsuits – Misunderstood by Timeshare Members

By Mike Finn of the Finn Law Group this Friday’s Letter from America

Why will timeshare developers not acknowledge the flawed business model?

Out of 170 complaints received, 155 of our readers allege they were sold a timeshare by deceit and bait and switch. The contract is perpetual, accompanied by rising maintenance fees. With some of the more gestapo orientated companies, the member cannot sell or give back their timeshare. The problem is magnified when the buyers succumbed to high interest rate loans and higher interest rate credit cards.

We believe Social Media and media outreach is the tortoise chasing the hare. Timeshare default rates are rising and original buyers (like me) are not getting any younger. Inside Timeshare continues to be there for members and advocacy Facebook pages and websites are on the rise – helping members through the 3Rs or F of Timeshare – resolution, when possibly the member just did not understand how to use the program, refund, relinquishment or foreclosure. In America, there is no debtors’ prison, except in the case of refusing to pay child support.

We ask timeshare developers – What would happen to the primary residential home market if home buyers could not sell their property?

think about

Self-help Facebooks

https://www.facebook.com/timeshareadvocategroup/

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

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

Thank you Irene and Chris, also a big thank you to Tammy for proof reading and editing these articles.

As always if you have any comments or would like to share your experiences, Inside Timeshare welcomes them, contact us through our contact page.

If you need help or advice on any timeshare matter do get in touch and we will point you in the right direction. Remember before engaging with any company do your due diligence and your homework, it will save you a lot of bother in the end.

diligence