Browse Tag

Wyndham

Friday’s Letter from America

Welcome to another Letter from America, this week we welcome another new contributor Diane Smith with an introduction by our very own Irene Parker. This article looks at Bluegreen and their suggestion that Diane donates her points to one of four selected charities. Have we not heard of a scheme like this before?

Bluegreen offers new Pilot Program to Donate Points to Charities 

Diane Smith Responds to “Who’s the Fish?”

Bass Pro Lawsuit v Bluegreen

https://insidetimeshare.com/the-tuesday-slot-38/

July 10, 2019

By Diane Smith

Introductory comments by Irene Parker

I was alarmed when Diane reported that Bluegreen suggested she donate her 5,000 points to one of four select charities. Charities don’t need the liability of a perpetual contract and ongoing maintenance fees. After learning one of the charities was founded by the co-founder of RCI, and other timeshare executives are members of the 18 member Board of Directors, I reached out to industry insiders, puzzled.  

Christel DeHaan, Founder and Chairman of the Board

Co-Founded and sold RCI for $825 million

https://www.forbes.com/profile/christel-dehaan/?fbclid=IwAR3Qn-QE_uDsHYPVo0b9yuh3qb4Y4opDRT7zAiC0wk97D_n0H19_bD7re7k#6d7903079fd0

https://christelhouse.org/our-people/

Olivier Chavy, President, RCI Exchanges

Gordon S. Gurnik Executive Vice President and Chief Operating Officer, Hilton Grand Vacations

Don Harrill, Vice Chairman of Board of Directors, Orange Lake

According to an industry source, who wishes to remain anonymous, the charities will not be liable for maintenance fees or the perpetual contract. If Diane were to donate her 5,000 Bluegreen points, it would prompt a paper transaction known throughout the industry as a “Press and Clean” that will ultimately transfer the points back to Bluegreen. While transferring timeshares is perfectly legal, legal point laundering does not solve the problem when timeshare buyers experience unfair and deceptive sales practices.  

If my source is correct, in this scheme, Bluegreen controls who gets referred to the charity, so you can’t just call up one of the charities and ask them to take your Bluegreen points. Bluegreen benefits because they are not as bothered by calls from people wanting to get rid of their points, as they can refer the member to the charities if there is no loan outstanding.

It is ironic Christel House works with those in poverty, considering Inside Timeshare has heard from 894 timeshare members and more than a few driven into poverty because of unfair and deceptive sales practices that are accompanied by rising maintenance fees and no secondary market.

So why is being allowed to donate timeshare points to a charity, not a good idea? When sold by deceit, the charity becomes a link in the progression described by one former sales agent as a hamster wheel: deceive, force insolvency, take-back, resell – with the charity brokering the points back to the timeshare company.

We hope this isn’t the timeshare lobby ARDA’s idea of a Responsible Exit.

ARDA’s Coalition for Responsible Exit

https://responsibleexit.com/

Diane’s Response to “Who’s the Fish?”

I read Inside Timeshare’s article about the lawsuit filed on behalf of nearly 36 Bluegreen plaintiffs against Bass Pro Shops and Bluegreen with great interest after I received Bluegreen’s response to my complaint. My reports of deception are similar to identical to those listed in the lawsuit complaint.

My concerns were not even addressed. Instead, I received an email suggesting I donate our points to a charity. Given an attorney I contacted was going to charge me $5,000 to get us out of this financial trap, I questioned why a nonprofit would want to accept timeshares.  

Bluegreen responded to my complaint saying that they have no provision to take back a timeshare (even when deceived?), but I could contact one of four selected charities to donate our 5,000 points. The four select charities are listed below. While I applaud any assistance is to a charity, I don’t feel this is appropriate. 

Our family purchased our points in 2011 after we had endured the Joplin, Missouri EF5 tornado that killed approximately 160 people. My father broke his back and ribs, his home was destroyed, and we endured over $40,000 in damages to our home. Shortly after the tornado, we took a trip to Branson to get away for a breather. At Bass Pro Shops we were approached by a Bluegreen representative. The resulting consequences I would describe as a financial tornado.

In the lawsuit Bass Pro Shops filed against Bluegreen, they were concerned about commissions they had not been paid. Bass Pro Shops will be rewarded $40 million, but there is little concern as to the deception described by Plaintiffs in the lawsuit filed on behalf of Bluegreen members. In the lawsuit complaint, Bass Pro Shops mentioned aggressive sales practices that were offensive to their customers, but I’m sure the reason for the lawsuit was to sue for commissions. It’s all about the money with timeshares – our money.

We experienced the following:

  1. The meeting promised to last no more than an hour, lasted for hours,
  2. They explained how we would save money on vacations by buying points. In actuality, most of the places we attempted to book were either not available when we were able to use them, or we couldn’t book them at the time we wanted to book (not in the booking window). We have never been able to vacation anywhere using Bluegreen points but Branson, except for one Florida trip.
  3. We were told we were not buying a timeshare! They provided us with a “deed” explaining that we were purchasing real estate.
  4.  We were told we could sell Bluegreen points at any time and that points would appreciate in value like our home. There is no resale value as evidenced by their suggestion we donate points to a charity.
  5. A credit card was opened to make the purchase and we were advised to transfer the purchase price to a home equity loan.
  6. They explained the benefit of being able to transfer the points to our heirs. We now know what is passed down is a financial liability.

The few trips we did take were a disappointment due to high-pressure sales tactics that made us feel like we could not leave unless we purchased additional points. We have no desire to stay at another Branson property due to our last stay when we experienced soft spots on the bathroom floors, roaches, and the same furniture as 2011. The pool looked nasty, cloudy and full of algae. 

Bluegreen responded to our concerns as follows:

We are sorry to hear that you wish to cancel your ownership. Unfortunately, there are no provisions for you to cancel your contract at this time.

However, we would like to offer you the opportunity to participate in a pilot program we have developed to assist owners like you who have no outstanding loan but would like to separate from the Bluegreen Vacation Club. The program is outlined below:

1.     Donate your timeshare interest benefiting a charitable organization. Please see the attached document regarding worthy organizations.

2.     You will be provided with a donation letter from the charity based on the current third party comparable selling price. With respect to your ownership, this is estimated to be $745. Please note that this letter does not represent proper documentation to support a deduction on your tax return nor is it a substitution for any third-party valuation that may be required by the IRS. We recommend that you consult with a tax advisor regarding requirements for claiming non-cash charitable donations.

3.     You will have the option to utilize one-year’s allotment of (5,000) Vacation Points for up to two years (at no cost to you).

4.     You will be released from any future obligations to the Bluegreen Vacation Club.

Charitable Giving Program – Donation Options 

Junior Achievement of South Florida (JA)

SOS Children’s Villages – Florida is a foster care neighbourhood in Coconut Creek.

Christel House Some things should be handed down from one generation to the next. A life of poverty isn’t one of them.

JDRF is the leading global research organization accelerating medical breakthroughs to cure, prevent and treat Type 1 Diabetes (T1D).

I imagine waves of baby boomers, with children and grandchildren, have experienced the same. We will teach the next generations to avoid timeshares and travel clubs. The existence of unfair and deceptive timeshare sales practices is apparent. See the lawsuits and Attorneys General investigations below.  

Thank you to Diane for informing us of this remarkable timeshare development. Our readers are not just a disgruntled few:

The NY Attorney General investigation into the Manhattan Club resulted in a $6.5 million settlement. https://www.amny.com/real-estate/the-manhattan-club-settlement-includes-6-5-million-in-restitution-ag-says-1.14048559

Colorado Attorney General sued Highlands Resort, Sedona Pines and twelve other defendants for deceptive trade practices. https://businessden.com/2016/12/07/ag-sues-timeshare-firm-for-deceptive-tactics/

Missourians sometimes are targeted by real estate developers and resort communities to buy vacation timeshares. https://ago.mo.gov/civil-division/consumer/consumer-topics/vacation-timeshares

Arizona Attorney General received hundreds of complaints against Diamond Resorts, fined the company $800,000 and issued an Assurance of Discontinuance. https://azag.gov/press-release/attorney-general-brnovich-announces-800000-settlement-diamond-resorts

Tennessee Attorney General announced a $3 million settlement with Festiva, a network of vacation and timeshare companies, for alleged violations of the federal Telemarketing Act, federal Telemarketing Sales Rule, and the Tennessee Consumer Protection Act. https://www.tn.gov/attorneygeneral/news/2016/2/24/pr16-04.html

Connecticut Attorney General George Jepsen says his office received 58 timeshare complaints in 2018, including concerns about pressure sales tactics, exorbitant fees, and difficulty reselling. https://www.nbcconnecticut.com/news/local/Timeshare-Troubles–What-To-Do-Before-You-Buy-and-Sell-504017151.html

A Florida Whistleblower lawsuit filed on behalf of ten former Wyndham employees, including eight former sales agents. Plaintiffs allege that they objected to and refused to participate in illegal timeshare sales practices.  https://insidetimeshare.com/fridays-letter-from-america-42/

Former Wyndham sales agent Trish Williams, a jury awarded an initial $20 million. https://dolanlawfirm.com/2016/11/wyndham-timeshare-whistleblower-lawsuit/

Candace Czarny v Hyatt and Kent and Allison Drysdale – Former Hyatt timeshare sales allege that they were instructed to make certain false statements and omit certain facts when communicating to Hyatt owners and potential clientele in order to make more sales. https://insidetimeshare.com/fridays-letter-from-america-57/

Petition to Reform Timeshare:

https://www.change.org/p/state-legislators-in-arizona-florida-and-nevada-demand-reform-of-the-timeshare-industry-s-unfair-and-deceptive-practices

We seek to provide timeshare members with 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://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Free at Last Facebook

https://www.facebook.com/groups/623703881470577/?ref=share

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

https://www.facebook.com/groups/1639958046252175/

Inside Timeshare Facebook 

https://www.facebook.com/groups/2213231165610648/

Thank you Diane and Irene, this certainly looks like one of those schemes which only benefits the timeshare company, if you have any views, comments or questions on this article please use our contact page and get in touch.

That is all for this week, we hope that you all have a great weekend and join us again next week.

The Tuesday Slot

Welcome to another edition of The Tuesday Slot, This week Irene Parker looks at the Bass Pro Shops and Bluegreen who are both locked in a legal dispute not only with each other but also their own clients. It would look like there is no end to the deceptions, misleading and bad practices that the timeshare industry thrives by. This brings us to ask yet again, when will the industry change its ways and sell a fair and useful product without the bad practices that we see on these pages day after day week after week? Somehow I don’t think we will get an answer any time soon.

Bass Pro Shops v Bluegreen $40 million Settlement

A Separate Lawsuit of Nearly Three Dozen Bluegreen Member Plaintiffs

As reported by The Palm Beach Post June 14, 2019

Boca Raton-based Bluegreen Vacations will pay Bass Pro more than $40 million to continue operating sales kiosks in its stores.

In a separate lawsuit filed this year, nearly three dozen timeshare buyers from around the country sued Bluegreen and Bass Pro Shops. The consumers said they were lured into high-pressure sales pitches, then sold expensive shares in units that they claimed were overpriced or in poor repair.

https://www.palmbeachpost.com/news/20190614/bluegreen-vacations-bass-pro-shops-settle-dispute-over-timeshare-sales-tactics?fbclid=IwAR2T5UbBR9fHwDbyhHIJk0HqhhHqgHYec8Npi2QpcrgE0ufBSEWIkIarxWk

Who’s the Fish?

By Irene Parker

July 9, 2019

Civil Action No. 3:19-cv-54

Excerpts from the Civil Action complaint (my comments highlighted in blue)

In the U. S. District Court for the Eastern District of Tennessee at Knoxville, a third amended complaint was filed April 8, 2019 against defendant Bluegreen Vacation Unlimited, Inc. in Gatlinburg, Tennessee and BPS Direct, LLC dba Bass Pro Shops (BPS), seeking contract rescission and damages on behalf of 16 co-plaintiffs (as of the April 8 filing) for alleged illegal, deceptive and misleading business and sales practices, statutory violations and fraudulent conduct.   

Such practices as described pertain to the Bluegreen Vacations Mountain Loft, Ascend Resort Collection Resort at Gatlinburg. Relevant to this lawsuit, Bass Pro Shop, partially in conjunction with Bluegreen, operated its retail business at its Tennessee-based facilities in Kodak and Nashville, along with 67 other locations across the United States.

According to the lawsuit, Defendant Bass Pro Shops were involved in the offering of a promotion for attending a timeshare presentation, which was solicited through representations made from within Bass Pro Shops, through BPS agents, or at least individuals who appeared to consumers to be acting as agents of BPS, and thus, such actions are attributable to Defendant BPS. The lawsuit Bass Pro Shops filed against Bluegreen seemed to focus on commissions not being paid on any “sampler package” and the “clawing back” of commissions not paid when a member defaulted or cancelled years after the sale.

The lawsuit alleges Plaintiffs were induced to purchase a timeshare interest from Bluegreen by fraud, without knowing the true nature of the presentation, because material information was either intentionally or negligently concealed. Defendants did not disclose material facts concerning the use of points and availability caused by overselling interests, and the right to the Public Offering Statement disclosures, which included rescission rights.

First Basis: Concealment of Rescission Rights and Public Offering Statement

The lawsuit alleges POS disclosures were avoided and/or intentionally hid, including material information about the rescission period. Despite Bluegreen’s legal duty to provide a copy of its POS, not one Plaintiff recalls receiving a copy of such a document. The lawsuit further alleges Bluegreen representatives had a strong incentive to conceal Plaintiffs’ rescission rights and limit access to the information contained in the Public Offering Statement. Plaintiffs were not aware they had a right of rescission or that they were entitled to review the POS before entering the contract.

Violations of the Tennessee Timeshare Act of 1981 include:

  • Public Offering Statement disclosure – The POS must be provided to purchasers “before the transfer of the timeshare and no later than the date of any sales contract,” and that the contract is voidable until the purchaser has received the POS.

Since late 2016, Inside Timeshare has heard from 890 timeshare members reporting unfair and deceptive timeshare sales practices, including 113 veterans and active duty service members. Only in the last six months have I started asking the members about the Public Offering Statement to which the members reply, “A what?” Digging through past paperwork, they find it to exclaim, “It says,” READ THIS DISCLOSURE STATEMENT BEFORE SIGNING ANYTHING!”  The timeshare customer service representative, also a fine print detective, responds to the member with their initials agreeing that they read and reviewed the document. If the closing is recorded, the presentation of the POS should be recorded.

According to the lawsuit, after often five to eight hours of mentally and physically wearing the consumer down, there is a rapid signing of many documents that lasts only about ten to fifteen minutes. The Closer or Quality Assurance Specialist controls the entire process. Consumers are not permitted to read the contract, leave the room, discuss the contract alone, are not permitted to review the contract with an attorney.

Consumers are not permitted to take the contract and come back the next day. 

The lawsuit alleges this constitutes unlawful practice of law, overlaid with fraud and deceit with no meaningful disclosure of contract terms.  

If you think this is unfair, sign the Petition to Reform Timeshare, which seeks a 24-hour “cooling-off” period before signing a contract. This proposed 24 hour cooling off period was hotly contested by timeshare industry lobbyists during the 2019 legislative sessions.

https://www.change.org/p/state-legislators-in-arizona-florida-and-nevada-demand-reform-of-the-timeshare-industry-s-unfair-and-deceptive-practices

Of note is mention of Unauthorized Practice of Law (UPL) in that consumers are told about how they can plan their Estate with the new “asset” to leave a “legacy” to their child or children using a Will while fraudulently concealing a known “successor” clause that forces obligations upon future generations who are all jointly and severally liable for ever-rising debt.

Inside Timeshare has received numerous complaints from consumers falsely told they must convert a deeded timeshare to a point-based timeshare or their heirs will be liable. It is also my belief this constitutes the unauthorized practice of law.

I asked timeshare attorney Mike Finn about this, as I understand it, rarely is an heir forced to assume a timeshare liability. According to Mike, “Although I haven’t studied the so-called “successor clause” I am of the firm belief that unless the children were listed on the original sales contract as co-owners and signed the contract as same (assuming of course that they were of the age of majority on the date the contract was executed), that they cannot be bound by any third-party, to the contract, including their parents. Again, in my opinion, I believe this would be a violation of the “due process rights” of the children.”

How Can I Eliminate my Timeshare Liability for my Heirs?

https://www.finnlawgroup.com/eliminate-timeshare-liability-for-heirs/

Bluegreen is the sole owner of a subsidiary corporation housed within its corporate headquarters in Boca Raton, Florida called “Pinnacle” and the lawsuit alleges Pinnacle is devoted to exclusively keeping Bluegreen owners trapped in the resale market void.

Second Basis: Intentional Misrepresentation: Buy-Back Program

Bluegreen has never operated a program that buys back unwanted VOIs. Pinnacle sells services to VOI owners which purports to help owners sell unwanted VOIs when in actuality there is no viable resale market.

“Owners Meetings” or “Owner Classes” air to sell existing owners additional timeshare interests. Owners are told such meetings are mandatory to teach Bluegreen members how to navigate Bluegreen’s reservation system. In reality, such meetings are an attempt to sell existing Bluegreen members more points. Reported disappointments with the product can be resolved by buying additional points, but the lawsuit alleges promised benefits are rarely if ever, realized.   

Plaintiffs’ Common Factual Allegations

Promised 90-minute presentations lasted typically four to eight hours. Some presentations are timed with the presentation beginning only after completion of a known driving tour that lasts at least three hours, and for two Plaintiffs, the drive lasted eight or nine hours.

After long sales sessions, only 10 to 15 minutes was spent, on average, for the entire contract signing process, which harboured unknown obligations and lacked the use rights, amenities and features that were promised.

Plaintiffs allege they were told:

(a) Bluegreen timeshares are good investments and will always go up in value.

(b) Bluegreen timeshare is a long-term asset that can be resold at a profit.

(c) Maintenance fees do not exist, do not go up, or only go up very little.

(d) Bluegreen timeshares are a valuable asset and “a legacy” to pass on to children.

(d-f) Plaintiffs did not know that, despite any possible future contract to make a Will or Codicil, contracts executed that day would bind all children as “successors’ that are jointly and severally liable for the inter-generational debt.

(g) Plaintiffs have anytime, anywhere “easy booking.”

(h) Rental income can pay the mortgage, fees and sometimes earn a profit. Rental is impossible as represented.

(i) Promises that an “Upgrade” will resolve deficiencies, but were never fixed.

All Plaintiffs have a strong correlation regarding these four rescission-based commonalities:

(a) Plaintiffs did not receive Public Offering Statement prior to signing.

(b) Plaintiffs did not receive proper Statutory Rescission notice.

(c) Plaintiffs were deceived about a Will Asset (vs Successor Liability).

(d) Plaintiffs spend up to $21,000 for a one-week vacation, representing over 1000% of the timeshare’s online market value, accompanied by rising fees.

Third Basis: Intentional Misrepresentation: Points Value Representation

No Plaintiff had access to Bluegreen’s inventory system until after they were contractually-bound as Bluegreen owners for life. Upon access, they discovered availability constraints, insufficient point values, or other cost prohibitions they were not made aware of.

This is another source of a multitude of complaints. Members complain of having been sold too few points to book their desired locations, but they were not allowed access to the booking site until the next year.

In spite of this lawsuit and so many others, the timeshare developers and their lobbyists insist all is well and we are just a disgruntled few. In addition to member complaints, former timeshare sales agents have joined efforts to expose unfair and deceptive sales practices. Our Friday, July 5 article describes former Hyatt Sales Executive Candace Czarny v Hyatt wrongful termination/whistleblower lawsuit and our February 2019 article about a Wyndham Florida Whistleblower lawsuit:

https://insidetimeshare.com/fridays-letter-from-america-57/

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

It is in everyone’s interest to drain the swamp of perpetrators.  

Join one of the self-help groups, organize, and get involved:

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.

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Free at Last Facebook

https://www.facebook.com/groups/314773876071616/members/

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

https://www.facebook.com/groups/1639958046252175/

Inside Timeshare Facebook

https://www.facebook.com/groups/2213231165610648/

Thank you Irene for this weeks article, If you have any questions or comments on this or any article published, then use our contact page and get in touch, we would love to hear from you.

Friday’s Letter from America

Welcome to this week’s Letter from America, we today publish yet another “Nightmare on Timeshare Street” from yet another Veteran, Ron Tzinski. Since we began highlighting these stories, Inside Timeshare has received around 111 complaints from Veterans and how they have been targeted and lied to by unscrupulous sales agents, yet the timeshare companies still allow the deceptions and lies to continue. These are men and women who have given their lives to the service and defence of the country and this is the thanks they receive! Despicable is the only word I can use without the use of profanities.

Part II Timeshare Reinvents Subprime Mortgages

What Wyndham Timeshare Hardship Department?

Veterans Speak Out

Part I Theresa Provides Insights into Wyndham’s Defaults

https://insidetimeshare.com/the-tuesday-slot-35/

http://www.centeronelderabuse.org/veterans.asp

Part III Why centeroneelderabuse.org Suggestions Offer no Help

On July 11, 2018, President Trump signed Executive Order 13844, establishing the Task Force on Market Integrity and Consumer Fraud and identifying the Deputy Attorney General as its chair. The Task Force is part of a government-wide initiative to combat fraud against consumers – particularly the elderly, service members, and veterans – and corporate fraud that victimizes the general public and the government. https://www.justice.gov/fraudtaskforce

By Ron Tzinski, an Army Veteran

June 21, 2019

I am an eleven year Army veteran, retired. I became inactive after Desert Storm when President Clinton decided to reduce the military. I have been inactive since 1993. I have an Honorable Discharge.

I would not be in a dispute with Wyndham had I been told about Wyndham’s Veterans Holidays program. I could have taken advantage of their “Always Low Fees” instead of being driven to foreclosure. I have not made a payment in eight months.  


Always Low Fees, Never Any Pressure

While accommodations are mostly at timeshare resorts, you will not be required to attend a timeshare presentation. Some resorts are already sold out and do not have active sales centers on-site. If the resort is still in sales, at some time during your stay, you will probably be given an opportunity to attend a presentation in exchange for a premium or gift (free dinner, theater/show tickets, amusement/theme park tickets, etc.). Everyone at these resorts is given this same opportunity. If you like the incentive gift and want to attend the presentation, you are welcome to do so. But you are under no obligation and can simply say, “No, thanks.”

Veterans Holidays is a part of Wyndham Worldwide, one of the world’s largest hospitality companies.  https://www.veteransholidays.com/about-us

I bought my Wyndham timeshare in Tennessee October 2016.  October 2017, I talked to someone at the Wyndham Grand Desert about getting out of my timeshare. Instead of getting out, I got talked into buying additional points. They promised that if this purchase was a problem, Wyndham would buy-back the timeshare. They explained the reason for this convenience was because Wyndham self-finances loans. And I was buying a trial product. This made perfect sense.

I am a small business owner on the verge of bankruptcy due to massively decreased income. I have the tax returns to prove it. My family needs dictate that I provide the basic day-to-day necessities for my families now, over a timeshare

I never should have been sold a timeshare in the first place. Even when I bought the timeshare, I made less than $12,000 a year. I’m self-employed. When I bought the timeshare, I wasn’t asked about my income. As Theresa mentioned in her article, she was told a minimum of $75,000 was required to make a timeshare purchase. Also, my wife passed away two years ago, after we had purchased the timeshare. I never even used the points.

I applied for a hardship release. Wyndham started three files on me, but ultimately denied a release. Inside Timeshare sent a draft of this article to Mr Jason Gamel, Sr. VP Legal at Wyndham, and to another Wyndham representative, asking why an annual income of $12,000 a year and death of a spouse would not qualify for hardship. Mr Gamel said at a Florida legislative workshop that Wyndham members need not seek timeshare exit provider services because of Wyndham’s hardship department. You must have to be on welfare to qualify.   

Wyndham does have a release program called Ovations for those without loans:

‘We understand that your situation may have changed since you purchased your timeshare with us and now you’re unable to use it the way you planned. Whether it’s a change in marital status, family needs or vacation preferences, these events impact how and when you choose to travel.’

I just don’t understand the high bar obstacles for release, given Wyndham can take back the timeshare today and sell it to someone else tomorrow for full price. A member can’t even sell the timeshare on eBay for a dollar. Wyndham already has the money I paid until I could no longer afford to make payments. I understand that money is gone. Wyndham is in a win-win proposition, and with no secondary market, the consumer loses.   

‘With Ovation by Wyndham, owners receive the peace of mind that their best interest is being protected, something fraudulent timeshare resale, transfer and cancellation companies cannot offer.’

At least a cancellation company can support you during the demoralizing foreclosure process. Therein lays the rub. You can exit as long as you are paid up. So, what if you are only 2 ½ years into a 10-year loan when your situation changes? And we were told Wyndham self-finances so can easily take back the timeshare. We have no option but foreclosure.

Based on the response we received, Wyndham does not care about me or my situation. I know I am not alone. This Facebook page was started because we need support. At least members deceived can support each other. How sad.

Link to our Facebook: https://www.facebook.com/groups/376743609795740/

I feel that all timeshare companies care about is the money they feel they are entitled to. They care about keeping as many people on the hook as possible. I am sure the units, weeks, and points that everyone is ‘timesharing’ exceed the available inventory. I’m sure that most of the money goes to pay sales presentation incentives and sales staff wages.

We pay a ‘voluntary’ donation to the timeshare PAC ARDA ROC to be our voice, yet ARDA ignores us when we call them out on a violation in their Code of Ethics. Wyndham describes its Ovations program as an award-winning” program. An award was presented to Wyndham by the timeshare lobby ARDA. The president of ARDA is a Wyndham executive.   

I have connected with other veterans. We are now veterans in a different kind of war. The lack of a timeshare secondary market is even more harmful to active duty service members who could lose their security clearances over a foreclosure. Something needs to change, beginning with the non-existent secondary market. It’s a recipe for financial disaster, much like the subprime mortgage crisis.

Afterthoughts by Irene

After reading about Ron’s disappointment with Wyndham’s hardship department, I thought of the legislative workshop I attended in Tallahassee on March 12, 2019. ARDA had proposed a Florida bill that included a provision whereby timeshare exit providers must allow potential customers a 24-hour cooling-off period before signing a contract with an exit company. ARDA and Wyndham were concerned about unfair and deceptive sales practices, yet Ron was told it would be easy to have Wyndham take back the timeshare.

Exit providers and timeshare members wholeheartedly agreed with the cooling-off period as long as timeshare buyers would be allowed 24 hours to consider their decision. This would eliminate the high-pressure “today only or the deal is off” hard sell. The bill ultimately died in committee surely to resurface in 2021.

We are one hundred per cent in agreement that there are many timeshare exit scams, but I’ve been in contact with a few exit service providers who are as sincerely concerned about unfair and deceptive sales practices as we are. “We” are our volunteer Supporters who answer questions for timeshare members filing regulatory and law enforcement complaints for members who feel they experienced unfair and deceptive timeshare sales practices.

Sign this Petition for Timeshare Reform. We are working towards 100,000 signatures by 2021. Over 1,200 have signed. You don’t have to be a timeshare member to sign.

https://www.change.org/p/state-legislators-in-arizona-florida-and-nevada-demand-reform-of-the-timeshare-industry-s-unfair-and-deceptive-practices

Marine veteran Jim Sherwood is a 100% disabled Marine Corp Master Sergeant. Wyndham did resolve Jim Sherwood’s request for hardship, so there is a legitimate hardship department. Mr Sherwood’s article was published on March 8 of this year. We appreciate Wyndham’s response to Jim Sherwood’s request for hardship, but Mr Sherwood was at his wit’s end when he contacted Inside Timeshare, after denials following the VA’s report that he and his wife were unable to travel.   

Thank you to Ron for sharing his experience. Our standard disclosure is that we know there are many happy with their timeshare purchase. That doesn’t make up for thousands of families reporting deceptive and unfair timeshare sales practices. We have organized an outreach committee to seek more disclosure for veterans buying timeshares.

Related article: A Legislative Scoreboard

https://insidetimeshare.com/fridays-letter-from-america-45/

Whistleblowers of America is a nonprofit organization assisting whistleblowers who have suffered retaliation after having identified harm to individuals or the public. Together, we can speak truth to power.

https://whistleblowersofamerica.org/

Self-advocacy groups 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.

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

https://www.facebook.com/groups/1639958046252175/

Inside Timeshare Facebook Group

https://www.facebook.com/groups/2213231165610648/

Thank you, Ron, and also to Irene Parker for her contribution to this article, we would also like to thank all the volunteers who are helping with the advocacy efforts and giving others some hope.

It is such a shame that the timeshare companies act the way they do, they allow their own sales agents to destroy the lives of those who have served, all for what? There is only one word and that is GREED!

Inside Timeshare welcomes your comments and views on this article and any others published, just use our contact page and get in touch with us.

That is all for this week, join us on Monday for Part Six of our exclusive story on Silverpoint Exposed. Have a great weekend.

The Tuesday Slot

Welcome to The Tuesday Slot, this week we welcome another new contributor Theresa Taylor, with her experience of attending a presentation. As you will see from her story, it is one that is very familiar to every reader of these pages, high-pressure sales tactics with plenty of ways to get around a problem of affordability. One of the most disturbing facts of this story is the fact the sales agents found a way to get Theresa finance despite being in the middle of a Chapter 13 bankruptcy. As we already know from other stories, sales agents will do and say anything to get the deal, yet the timeshare companies still allow this to continue.

Part I: I Explain to Wyndham CFO Michael Hug:

Why Wyndham’s Default Rate is higher than he would like

By Theresa Taylor

June 18, 2019

Timeshare Tussle, by Jason Garcia at Florida Trend

There was a cloud over the results, however. During the call, Wyndham also revealed that the number of owners defaulting on their timeshare mortgages climbed during the second quarter, extending what has become a multiyear increase in defaults. The company says the rate of increase in its provision for loan losses has slowed to “under 5%” in the second half of 2018, but in the earnings call Brown said defaults remain “higher than we would like,” seconded by CFO Michael Hug, who added that “loan loss remains a central area of focus.”

Of the company’s nearly 900,000 owners, only 200,000 have loans. However, the company expects to set aside 21% of its gross sales to cover losses in 2018 — meaning it expects not to collect $21 of every $100 it’s loaned.

https://www.floridatrend.com/article/25726/timeshare-tussle

Part II Friday: Timeshare Reinvents Subprime Mortgages by Ron

My friend Ron reached out to Wyndham’s hardship department. He was turned away. Wyndham’s reaction to my friend explains why timeshare members reach out to timeshare exit companies for help. Going through a foreclosure process is not something a timeshare member wants to go through alone.

If Ron doesn’t qualify for hardship, I don’t know who would. Ron is an 11-year veteran. His wife died two years ago after his timeshare was purchased in 2016. His annual income is less than $12,000. He is self-employed.

I decided to attend a Wyndham timeshare presentation. My experience will explain why so many are defaulting on timeshare loans. I don’t think Wyndham is the only company providing loans to buyers who should not be buying, lending through high-interest rate loans and even higher interest rate Barclay credit cards. Undeterred by my bankruptcy, Wyndham’s sales agents explained how they could list me as a foreigner to circumvent the obstacle.

Here’s what happened at Wyndham Grand Desert Resort in Las Vegas:       

It was a family celebration for my son’s 21st birthday. After arriving late, I awoke the next morning to find a card slid under my door instructing me to see Amelia to receive a Welcome Packet. I proceeded to check-in to get my welcome package and before I knew it, I was informed that I had to attend a timeshare presentation the next morning.

Lauren informed me that I qualified for a “no-high-pressure card” to take with me to the presentation. I had to give them a $20.00 refundable fee to hold my spot.  She then discussed income requirements. They required a minimum household income of $75,000. She assumed that my friend Ron was my partner. We explained that he was not, and even if we were together, Ron currently has no income. I told Lauren my income was only $60,000. Lauren kept insisting that Ron was part of my household income.

Once we finally convinced Lauren that Ron should not be involved, she decided I could proceed with $65,000 per year household income. She changed the form from $75,000 to $65,000. When I reiterated that I only made $60,000 Lauren stated that they can actually work with that. She offered me show tickets or a $100 American Express gift card as my reward after I completed the presentation. I elected the gift card.

Red Flag #1 Falsified Income

The next morning I got up to attend the presentation. Ron decided to go with me. They showed us a video of all the places you can stay if you join Wyndham Vacation Resorts. We learned Wyndham owns RCI which is why there are so many places to stay. There are fees involved to use RCI.

Our presenter Eddie did a breakdown of the cost to vacation, explaining the value in buying into Wyndham Vacation Resorts. After the video, Judy took us on a tour of the Grand Desert, showing me the presidential suite. Next, we went to a room where tables were set up with other salespeople talking to other potential customers about the cost to vacation.

Judy showed us a price sheet. After she went over the costs, I asked for a moment to think about it. Visions of beautiful resorts momentarily left my head. I talked to Ron because it dawned on me that I am currently in a Chapter 13 Bankruptcy. I shouldn’t be able to buy anything.

We flagged Judy down to explain that I forgot to mention I was in the midst of a Chapter 13 Bankruptcy. She said she would go talk to her manager.  To be honest, I thought my time there was done. Nope, Judy came back and stated that the Chapter 13 Bankruptcy wasn’t a problem and that they could get me into a program that did not require a credit check or my social security number. Judy indicated that it was their international/foreign (non-US resident) program.   

Red Flag #2 Suitability

I told Judy thanks but no thanks. I thought it best to wait until I am through with the Chapter 13 Bankruptcy. She said fine, gathered up all the paperwork and advised that someone would be over with my gift card.

After about 15 minutes a woman named Sophie came to the table. She stated that she was doing a survey of my experience. She asked me how I liked Judy, how was the presentation. She asked if this was a program that I would enjoy given different circumstances. Trying to be pleasant, I explained that I don’t think the program is right for me at this time given I am in the middle of a Chapter 13 Bankruptcy. Undeterred, she flipped over some paperwork to show me another offer to buy into Wyndham Vacation Resorts.

Red Flag #3 High Pressure

I couldn’t believe it. Here I’m trying to get my financial head above water, and Sophie is convinced I need to buy a luxury item so that I can be driven deeper into debt. This go-round they offered me a “trial period” program which involved 400,000 points for use over two years at a cost of $3,548. She explained I could put down approximately $400 and make monthly payments.

At this point, I remembered my “no-high-pressure card” Lauren was supposed to give me, which seemed like ages ago. I said to Sophie, “Lauren said I was supposed to experience a no high-pressure presentation. She even said she would give me a “no-high-pressure card” (which Lauren forgot to give me), so I would not be pressured into buying something.  Sophie said “A what”?

Red Flag #4 Unfair and Deceptive Sales Practice

There obviously is no such thing as a “no-high-pressure card” so this was unfair and deceptive. First, my income was falsified to qualify, I am in debt up to my ears, I told them no, they will not take no for an answer, and they want to add another layer of monthly payments on top of my bankruptcy payments. Maybe it’s just me, but I think this is high pressure. Note the 6th line down on the left indicating 120 payments at 17.99%. What a great way to start life after bankruptcy.

I brought up the “no-pressure card” again to Sophie and that Lauren had said I was entitled to a “no-pressure card” because I was somewhat related to the person who booked my stay with them. Sophie confirmed my suspicion that there is no such thing as a “no-high-pressure card” by saying she had no idea what I was talking about.  I told Sophie (pretty sternly) that I WAS NOT INTERESTED. She asked if I felt I was being pressured.

This all occurred over  2 ½ hours and I think it ended only because I got stern with her and used the words “high pressure” hoping it would register.

On Friday Ron will explain why he feels the ARDA Code of Ethics doesn’t exist and Wyndham’s hardship department is fictional. I sent Wyndham a draft of this article for comment, but they did not respond. I can put them in touch with Ron if they would like to review his case.

I encourage those who feel they have experienced unfair and deceptive sales practices to join one of the self-help support groups listed below. There’s a new Wyndham Facebook page which is member/sponsored.

New: https://www.facebook.com/groups/376743609795740/

A Petition to Reform Timeshare

https://www.change.org/p/state-legislators-in-arizona-florida-and-nevada-demand-reform-of-the-timeshare-industry-s-unfair-and-deceptive-practices

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

https://www.facebook.com/groups/1639958046252175/

Thank you, Theresa, for your contribution, it is a story that I would think is familiar to all our readers and one that we at Inside Timeshare have highlighted on many occasions. Once again we see sales agents using practices which can only be described as despicable and underhand, yet what does senior management do? Allows them to continue.

That is all for today, join us tomorrow for Part Five of our continuing “saga” of Silverpoint exposed.

Friday’s Letter from America

Welcome to another Letter from America, today Irene Parker has a look at the Coalition to Reform Timeshare and the petition which needs your signatures. This has been a recurring theme on our pages, the timeshare industry needs to change how it works, it is in dire need of reform, yet it seems they are not listening to the hundreds of complaints which are hitting not just forums like Inside Timeshare but many other forums, websites and FB groups that you will find on the internet. Inside Timeshare has received hundreds of emails asking for help, yet that is only the tip of the proverbial iceberg.

The industry needs to change if it is to survive, it has created the problems yet it does not even acknowledge them or admits that there is a problem. It is responsible for the myriad of scam exit and resale companies that exist, all because it fails to police how its own sales force operates. The time for change is here, it is in your own interest to be part of this and sign this petition.

Timeshare Wars Continued

Has Diamond Resorts Offered a Compromise through Transitions?

A Petition and a Coalition to Reform Timeshare

By Irene Parker

June 14, 2019

A Coalition to Reform Timeshare (CRT) was launched to advocate for the rights of more than 9 million timeshare owners in the U.S. CRT is made up of individuals and organizations dedicated to reforming the timeshare industry.

Timeshare developers feel the industry is just fine and doesn’t need reforming. Where do you start when two sides are so opposed? How do you narrow the gap?

Our volunteer Supporters at Timeshare Accountability Group™ (TAG) feel both ends of the timeshare sale need some reform. The Change.org petition already received over 800 signatures.  Sign our petition today to show lawmakers and the Timeshare Industry at large that there is a need for change.

https://www.change.org/p/state-legislators-in-arizona-florida-and-nevada-demand-reform-of-the-timeshare-industry-s-unfair-and-deceptive-practices

After signing the petition, a prompt appears asking for a donation. I questioned how donations are spent. One of our Supporters received this answer from Change.org:

Similar to boosted posts on Facebook or sponsored tweets on Twitter, promoted petitions let you pay to show any petition (including your own) to other potential supporters on Change.org or our distribution which supports our platform as well.

Has Diamond Resorts provided a bridge between members and exit providers?

I’ve heard timeshare exit service providers say, “If the developers would just take back the timeshare, there would be no need for timeshare lawyers or exit service providers!”

Well, Diamond Resorts is taking back timeshares at a record pace. One member reported that she had to wait on hold for five hours at year end. I can’t speak for the entire universe of Diamond Resorts members, but I can speak for the Diamond members on our over 3,000 member-sponsored Facebook page.  I can’t recall one post from a member who applied for Transitions and was not accepted. Many members who successfully exited their timeshare via Transitions remain on our Facebook to advise others.

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

I posted asking members to share their Transitions experience. Six members responded, all positive. Veteran family Cathy McDyer posted, “We applied & were accepted when the fee was only $250. We had points & a deeded week.” One member reminded me that points or weeks purchased on the secondary market are not eligible.  

Diamond Resorts launched their Transitions voluntary surrender program late 2017. Members with no outstanding loan and current on maintenance fees can deed back their timeshare by clicking “Transitions” on their member dashboard.

Inside Timeshare has received complaints from Diamond members who say they paid an exit company to get out of a fully paid Diamond timeshare. Not only did they pay more money than the $1,000 Diamond now charges, the process will likely take longer and some exit companies require the member continue to pay maintenance fees while they try to get you out. To make matters worse, the member is no longer eligible for Transitions if they contract with an exit provider.   

I contacted the Newton Group to ask if they would consider directing their fully paid Diamond member callers to our Facebook. The first representative hung up quickly when I asked. I called back and spoke with JoAnn, who also hung up on me as soon as I asked the question.

In 2018 Wyndham filed a lawsuit listing the Newton Group as one of the defendants. DC Capital Law is also listed as a defendant. DC Capital has filed a lawsuit against the timeshare developer ARC Americano.

https://dockets.justia.com/docket/florida/flsdce/9:2018cv81251/535273\https://insidetimeshare.com/tag/americano-beach-resort/

If Diamond is accepting their timeshare points and weeks back (at least according to our Facebook members), why are some exit providers charging $3,000 or more to get a member out of a fully paid Diamond timeshare rendering them ineligible for the program?

I’ve asked exit providers to test my proposition by referring a few callers to our Facebook page. They would not need to convince the member. It could be a suggestion after, “Have you reached out to the company?” If the member would be denied, it would strengthen the argument as to why timeshare exit service providers are needed. Can you imagine the good will that would ensue if this were to happen?  It would be one baby step to solve this nightmare without dueling lawsuits.

Signing our Change.org petition will also support the establishment of a Timeshare Bill of Rights. My comments are highlighted in red.

1) The right to a 24-hour cooling-off period prior to signing a timeshare contract to allow for the review of all sales and contract information including, but not limited to, other governing documents, public offering statements and covenants that run with the land.

Timeshare buyers also need time to recover after sales sessions that last more than six hours. There have been many reports of driver’s licenses and credit cards confiscated to prevent leaving a presentation, along with other creative techniques. I would add that the buyer could waive this offer if they wished.

In debates over timeshare bills proposed this year, the timeshare lobbyists for ARDA in Arizona strongly objected to allowing timeshare buyers 24 hours to review their decision to sign a perpetual timeshare contract, despite lobbying for a 24-hour cooling-off period in Florida and Nevada when it comes to signing a timeshare exit contract.

There is no other industry that would disintegrate if the buyer were allowed 24 hours to think about signing a contract. It’s because timeshare contracts are perpetual, accompanied by rising maintenance fees, and has no secondary market. Complaints about deceptive sales abound.

2) The right to receive complete disclosure of the true market value of the timeshare, prior to the timeshare being purchased.  

Some timeshare companies do disclose this, but the buyer doesn’t read the contract. The consumer does need to do their part by reading the contract.

A major concern is the lack of a secondary market. If the primary housing market placed restrictions on the ability to sell homes, think of the effect this would have on the housing market. Some timeshare companies list in their annual reports that a viable secondary market is a risk to investors. One private equity firm even described the lack of a secondary market as a reason to buy the stock!

In summary, customers experience a reasonable value proposition tempered by the lack of a secondary market. The secondary market has undoubtedly had its growth stunted because the absence of the market creates an opportunity for the imeshare companies.

Scott Miller, Founder of Greenhaven Road Capital, Latticework

3) The right to be free of any high-pressure sales techniques and verbal misrepresentations intended to circumvent the assessment period. For example, “Today Only” offers or the requirement of any form of advance payment to attend a timeshare presentation. Developers would be prohibited from collecting and withholding a credit card, driver’s license or other items before or during the timeshare presentation.

The verbal representation clause appears in many other contracts but widely reported to be abused and overused by unscrupulous timeshare sales agents.  Three against two tag-teams are skilled at holding attendees hostage. Is the gift worth this?

4) The right to record the entire sales presentation or to require the developer to record the entire sales presentation, including the closing of the sale, and to retain the recording for a period of 24 months with no waiver.

My biggest beef is timeshare companies that record the closing session, and then hold that recording against the member, but do not allow the member to record the sales session. Some states, like Nevada and Arizona, allow recording, but the consumer on vacation mode never thinks to do so. After all, they were told they were just required to hear about a new resort.

5) The right to full transparency during the sales presentation without any waiver of verbal representations during the closing of the sale. This right also prevents owners from being required to attend “update meetings” or similar meetings if a sales presentation is conducted during this meeting.

6) The right to full disclosure of the resort owners’ association financials, as well as disclosure of any and all HOA fees, including indirect resort costs imposed on owners which may increase maintenance fees and special assessments. This right also includes yearly owner roster notifications that disclose the number of weeks or points under developer control with the HOA, not excluding resale and rentals the HOA has control over.

7) The right to have the rescission period for a contract extended to one week after a person returns from their vacation to allow appropriate family and/or legal counsel review. The rescission date would be clearly noted in the contract based on input from the consumer on when they return home.

Unfortunately, even this extension doesn’t help when timeshare sales agents are skilled in dodging the rescission period as evidenced by Tuesday’s Inside Timeshare article in which the buyer was told to wait a few months until they had made a couple of months of loan payments before applying for an exit program. Many are told of maintenance fee relief programs that do not exist. They don’t discover they were lied to until they attempt to pay their maintenance fee invoice in December.  

https://insidetimeshare.com/the-tuesday-slot-34/

8) The right to be free of sales calls from the timeshare developer before or after the sale and the right to be free of attempts by the timeshare developer to have a consumer re-activate a previously rescinded sales contract.

I think this provision is a stretch. Most companies, especially cell phone companies, have customer retention departments.

9) The right to full disclosure of the entire cost of timeshare ownership, including available interest rates, before a consumer signs a contract. This would include projected increases in maintenance fees based on the average maintenance fee increase for the past five years for an individual property.

I think the buyer has the total cost including interest as stated on the purchase agreement.

10) The right to have sales agents and timeshare companies subscribe to an industry code of ethics.

There is an industry code of ethics, but it is ignored, based on hundreds of complaints sent to ARDA ROC which they ignored. The board of ARDA consists of timeshare executives, so the complaining member is complaining to the chief wolf guarding the chicken coop. If the industry doesn’t respond to over 200 timeshare members reporting unfair and deceptive practices, what good is a code of ethics?

11) The right as a timeshare owner or vacation club member to have priority booking of reservations over the general public.

A good idea, but I think it would be hard to prove a member does not have priority.

12) The right to unilaterally terminate an unencumbered, non-deeded timeshare interest with written notice to the developer upon making the current “use year” maintenance fee payment.

To join the Coalition or share your story, go to ReformTimeshare.org. Inside Timeshare also welcomes member submissions. Speak up and speak out. Right now the only enforcement seems to be via the media and the media seems reluctant to take on the mega-money associated with the front end of the timeshare sale, so join our efforts to reach sympathetic lawmakers and members of the media not afraid of big money.    

Other member sponsored advocacy groups:

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.

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

https://www.facebook.com/groups/1639958046252175/

Thank you Irene, let us hope that this petition really does take off, the industry is in need of reform, either they do or the lawmakers have to step in and do it for them just like in Spain.

So that is all for this week in the murky world of timeshare, join us again on Monday with Part Four of our exclusive on the truth behind Silverpoint.

The Tuesday Slot

Welcome to this weeks Tuesday Slot, today we have an article by an Industry Observer, who we have kept anonymous as per their wishes, the question posed is How is a Timeshare Point Valued? Our writer begins with the question “Why does Spain not allow points-based perpetual contracts?” As you read the article the answer to that question does become very apparent.

So on with this weeks article.

How is a Timeshare Point Valued?

June 4, 2019

I created a Spreadsheet after we bought points back in 2004 to see if I was getting my money’s worth. I added in maintenance fees. Not sure if I’m right but the bottom line was the only value the points have is if you use them. I went to numerous free weekends. I figured I should count those. Our bottom line average is around $95 a night. Usually, we could get through painful sales pitches quickly but our last visit to Vegas turned into abduction. I figure they are getting desperate. If you bought thinking these points had value beyond their sales pitch you were sadly mistaken. If the timeshare industry wants to survive and thrive they better create a secondary market and quickly. The competition is fierce. Websites like VRBO provide lots of options for less than your annual maintenance fee. Quality will be all over the map. Tim Dugan’s Facebook post

By an Industry Observer

Why does Spain not allow points-based perpetual timeshare contracts? In America, we think we have a lot going for us. After all, “we” invented the internet after inventing the computer. “We” invented baseball, Mickey Mouse, and McDonald’s. And “we” blessed the world with Bill Gates, Warren Buffett, Harrison Ford, and Clint Eastwood….

Do “we” have the best of everything? No way… We have bad highways. Some of our bridges are crumbling. Our national debt is ballooning. We can’t agree on immigration.  Our politicians constantly bicker.

“We the people” are supposed to have government agencies that protect us from threats inside and outside our borders – like the FAA (air travel), the FBI (crime), FDA (food and drug), DEA (drug enforcement), and CIA (foreign threats), to name a few.  

Do “we” have a Vacations and Timeshare (VAT) agency to protect timeshare buyers? No, we don’t. Timeshare and vacation companies are regulated by individual states. There has been no action on the part of the Federal Trade Commission to step in. It is “buyers beware” on that venue.   

There are some ominous and problematic indicators. Timeshare companies, at least two, are reporting loan loss provisions greater than 20%. If we calculated the actual dollar amount of foreclosed timeshare loans, given enormous revenue streams, the dollar amount would be staggering. This is just an accounting line item to the industry players, but the loan loss number includes a multitude of seniors and veteran families financially devastated after being up-sold into high-interest rate loans and higher interest rate credit cards. For those who maintained high lifelong credit scores, the foreclosure process is demeaning and degrading. Many have reported unfair and deceptive sales practices.  

Wyndham has increased its loan loss provision to 21%, as reported by Jason Garcia at The Florida Trend:

Timeshare Companies and Exit Companies are Blaming Each Other for Rising Default Rates

Of the company’s nearly 900,000 owners, only 200,000 have loans. However, the company expects to set aside 21% of its gross sales to cover losses in 2018 — meaning it expects not to collect $21 of every $100 it loaned.

https://www.tetli-institute.com/scrapping-timeshare-usa-26102018

Diamond Resorts International Inc. has been downgraded to CCC+ on very high anticipated leverage. Their outlook is negative, as reported by AC INVEST.

https://www.ademcetinkaya.com/2019/04/diamond-resorts-international-inc.html?fbclid=IwAR1gO6Z6cI-emaClmHkccP4_8XWyOpJYRgJsN40Pd0ydbr1e7DifJW76PZE

Timeshare CEOs don’t seem very worried about rising defaults touting increased sales and an increase in first-time buyers. A circle of sell, up-sell, foreclose and sell the same points again and again ensues. And points don’t depreciate like a car. It’s a cash cow.

Timeshare operators have been adept at capitalizing on the limited protections afforded their prospects. They’ve adopted:

  1. The same day sale, after a gruelling sales session,
  2. Electronic signing, difficult for even the most technically savvy to read,
  3. Perpetual contracts, accompanied by rising maintenance fees,
  4. No secondary market,
  5. Pitfalls, like availability, that can’t be determined by reading the contract,  
  6. Ways to dodge the rescission period by not allowing access to the booking site until after the rescission period has ended,
  7. Recording the closing, but not allowing the recording of the sales session,
  8. Sales agents that coach buyers on how to “pass” QA,
  9. Over-reliance on the verbal representations clause,
  10. Point “members” stripped of all beneficial rights of real estate ownership,
  11. False scare tactics about heirs inheriting the timeshare if deeded.                                                                                                      

What’s right with timeshare points?

Point contracts do offer the flexibility of being able to stay for more or less than the typical week. They allow for incremental purchases.

What’s wrong with timeshare points?

Refer to Figure A and B below. A look at the original timeshare model shows that developers sold a week or weeks guaranteeing the customer that they would always be able to stay a particular week at a particular location. A common complaint comes from deeded week owners who complain they could not get access to the unit, and sometimes not even the resort they had stayed at for years after they gave up their deed. This is especially true at prime locations, like Virginia Beach during summer months.

On the old real estate system, due to location and seasons, each resort had a quantity of valuable weeks, and also “dog” weeks.  July 4th in Hilton Head would be a valuable week.  So would Christmas in Aspen, Colorado. But winter in Cape Cod would be dog weeks.  Customers knew this and usually didn’t buy into “dog” weeks. In a “weeks” model, a graphic representation of anyone resort might look like Figure A.  The very best weeks would be in the centre of the graph, with value declining until you reach the very outside of the circle. If your resort was in a great location, with great weather year round, like Hawaii, you would be in the bullseye year round.


Figure A

Imagine now, a complete resort system converted into points as illustrated in Figure B.  Instead of red, blue and white weeks, you are now sold loyalty levels. There are no more ‘best red weeks’ in the system. The buyer has lost control. The developer now controls who gets to vacation when and where. Add to this scenario the developer’s ability to rent out inventory and you have an unfair advantage of developer over point buyer.


Figure B

But wait – what is the area outside the second line from the bullseye showing the “good and best” points? That is where the developer can sell points, but the chances of taking a great vacation may not be possible. A fixed week buyer knew they were buying Branson in January, maybe hoping to exchange it. The buyer that buys 2,500 points compared to the Platinum member’s 50,000 points dictates less availability. Certainty is gone.  The “point” to remember is that in a points-based system, the “dog” weeks become part of inventory just like “best” weeks. This puts a load on the “best weeks” inventory. When it comes to booking, somebody won’t get what they want.

In a pure points system, the developer is NOT selling a vacation. The developer is selling the “opportunity” to vacation SUBJECT TO AVAILABILITY.  Two factors determine the success of timeshare owners in a pure points system:

  1. Having enough points to meet your vacation needs, and
  2. Booking at the earliest possible date.

The complaint sites are littered with people, some even highest loyalty members,   complaining about availability. Say a buyer bought 5,000 points because that is what they could afford on a monthly basis. Those 5,000 points might get them a week in Myrtle Beach – in the winter but only two days at Myrtle Beach in the summer, if you’re lucky.  The sales agent can promise anything, “Any place you want to stay, any time you want.”

The first time buyer is scheduled for an orientation in which they are told, “I can’t believe that sales agent sold you so few points! You can’t stay anywhere with 5,000 points!” The member is sadly informed of his dilemma.  BUT, the new and improved sales agent “corrects” the mistake created by the first agent. Buy more points!

As an inducement to upgrade, some systems have early bookings for highest loyalty level members, then advance booking for one tier down, and finally open booking for everyone else. Consider this day and age of the instant internet. Booking vacations over a year out seems antiquated.

Granted, if you have a fluid vacation schedule, as many retired do – and can travel slightly offseason, you might find a pure points system to be of value.  But don’t go to a sales meeting unprepared, facing a tag team of three against two. Be an informed timeshare buyer. Read what existing members have to say on Tug2.net, Redweek and member sponsored Facebooks. The point system can be unfair and have drawbacks, but they can be resources for those who know how to maximize their use.

The informed consumer is the best consumer. Don’t fall for a pipe dream vacation.

Comments by Irene

Thank you Industry Observer. Your article prompted me to search back to 2017 to revisit our “Is This Timeshare Proposal merely Monopoly Money?” https://insidetimeshare.com/timeshare-proposal-merely-monopoly-money/

Self-help groups we feel are not industry influenced including TUG, which consists of a balanced group of members for and against timeshare.

We seek to provide timeshare members with 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://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Bluegreen Facebook

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

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

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

Gold Key Facebook

https://www.facebook.com/groups/1639958046252175/

We began with the question Why Spain does not allow points or perpetuity contracts, the simple reason is availability, with a fixed week system your are guaranteed the holiday time you purchased, you basically own that particular week. With points you own nothing, just a right to use subject to availability, you are a member of a vacation club not an owner. According to the ruling from the Spanish Supreme Court, points and floating week systems lack any substance, you are paying for a promise, or to put it simply you are buying fresh air.

For example we have a resort with 180 apartments, with fixed weeks they can only sell 51 weeks in each, that gives you a total number of weeks available at 9,180, that means you may only have that number of owners, great they all get their weeks. Now let us change this to a points based system, let’s say the vacation club only doubles its membership, we now have 18,360 members. Hang on we only have 9,180 weeks available, that means 9,180 members will not get their holiday at that resort this year.

Along with that, yes, you guessed it, the timeshare company has now also doubled their income in management fees!

They make more money but at the expense of the members who cannot get the holidays they want.

Spain also outlawed the perpetuity contract, this particular law came into force on 5 January 1999, the duration for any contract was to be a minimum of 3 years and a maximum of 50 years and was ignored by the industry. It was also envisaged that the age of the purchaser should also be taken into consideration, for example a couple aged 55, would not really require the maximum of 50 years, so why not sell them 25 years. The law makers also believed that perpetuity was inherently unfair to the children of purchasers, as timeshare was always sold with the idea it was property or real estate and therefore would be inherited. Their motive was why should the children be liable for the ongoing liability of maintenance on a contract they did not instigate.

These points are now the subject of many legal actions going through the Spanish courts and it is costing the industry millions in repayments along with all contracts being declared null and void. Spain is at the forefront of protection for consumers regarding timeshare and how it is sold, it is only a matter of time before others do the same.

The Tuesday Slot

Today on The Tuesday Slot we welcome another new contributor Laura Crow with her very own “Nightmare on Timeshare Street”, with an introduction by Inside Timeshares very own Irene Parker. These stories are now becoming all too familiar on our pages, with new “Nightmares” being received on an almost daily basis. It seems that not a single day goes by without another email pleading for help, many of these are from seniors and veterans. We do have to ask when will the industry change the way it works?

It is now only a few days to go before the start of the Platinum Protests in Orlando, the dates are 17 to 19 May, see the link at the end of Laura’s article.

We are timeshare trapped!

By Laura Crow

Tuesday, May 14, 2019

Introduction by Irene Parker

Laura Crow was told the California Attorney General only acts when it is in the interest of the public? Why then, have Arizona, New York, Tennessee, Missouri and Wisconsin AGs, to name a few, launched investigations and negotiated settlements when they received a volume and pattern of timeshare complaints?

Timeshares rank second on the list of complaints to the state in Connecticut in 2018, according to the state Office of the Attorney General

Do you have a story idea? We want to hear from you! Fill out the complaint form on the NBC CT Responds page or call 844-303-RESP, (844) 303-7377. More #NBCCT Responds archive here.

https://www.nbcconnecticut.com/news/local/Timeshare-Troubles–What-To-Do-Before-You-Buy-and-Sell-504017151.html

Each state has a different protocol for filing a timeshare complaint. In California and Nevada, timeshare complaints must be filed with the state’s real estate division against a particular agent. Filers should also file a complaint against the principal broker over all the brokers in the state.

Those who feel they experienced unfair and deceptive timeshare sales practices should also file complaints with the FTC and the FBI at IC3.gov. Inside Timeshare has received reports of unfair and deceptive sales practices from over 800 families. Many members report being financially and emotionally devastated, having believed false claims told to them by timeshare sales agents, like the common complaints voiced today by Laura Crow. Seniors suffer physical harm as many report loss of sleep, weight loss, and symptoms of, or a recurrence of, cardiac and blood pressure problems over the stress of their timeshare nightmare.

There has been no federal enforcement. Attorneys General who have launched investigations and negotiated settlements are appreciated, but investigations and settlements have been mere speed bumps along an enormous revenue stream.

Please reach out to the FTC and FBI if you experienced unfair and deceptive timeshare sales practices:  https://insidetimeshare.com/fridays-letter-from-america-47/

One of the Wyndhamtestimonials by current and former employees Laura discovered:

“Liars liars pants on fire”

Former Employee – Timeshare Sales in Daytona Beach, FL

Doesn’t Recommend

Neutral Outlook

CEO

I worked at Wyndham Destinations full-time (More than a year)

Pros

Free coffee, nice view, some friendly co-workers, company parties were fun, decent discounts

Cons

The timeshare sales department is filled with a bunch of liars. New hires have to sit through specific training on what is and is not allowed to tell customers. You are in no way allowed to tell customers that the timeshares are a good investment, that points can be used to pay the management fees, or that the timeshares can be rented out during peak periods to give them a return on their money. ALL THESE THINGS ARE NOT ALLOWED, BUT TOP SALES PEOPLE SAY ALL THESE LINES AND EVEN MORE LIES TO MAKE SALES. The top sales team are all a bunch of vultures lying to people to make a living. Customers get beaten down during the process. I’ve seen documents forged and old terms given to customers to secure their signature. If you have a conscience, do not work there. If you like lying to people to make money and can obtain a real estate license and have a clean background, lying to people during a timeshare presentation is much more lucrative than lying to people on the phone. If this is the type of scummy person you choose to be, then Wyndham is a great fit. If you are a salesperson who grows a conscience, there are other jobs at Wyndham you can do, so you don’t need to just quit. Just try to transfer to a different department.

Laura Crow’s Nightmare on Timeshare Street

I am a California resident and have found other California residents online in the same leaky timeshare boat as me. We have all filed a complaint with the California Attorney General and were all told that the Attorney General can’t intervene on behalf of individuals. They only act when it is in the interest of the public. Well, how many members of the public does it take to get some kind of action?

After attending a Wyndham WorldMark presentation four years ago, we left believing we could travel anywhere, any time. Europe was the big selling point. The selling point for my husband was that we could make good money by renting out our timeshare. The timeshare would pay for itself! As many have reported, timeshares are worthless. In no way should timeshares be pitched as an income producing investment. I would advise you to run the other way if you ever encounter sales agents spouting such falsehoods.

We are trapped in a contract that has not delivered the financial gains or freedom our sales representatives assured us it would. Instead, it has turned into a financial burden. We are left with the constant stress of this hanging over us, waiting for the next hit to our credit report.

Wyndham and WorldMark could care less. I will send them a draft of this article, but safe to say they will say something like it didn’t matter what our sales agents said. That’s why the public needs to know a timeshare sales agent can get away with saying anything to make a sale. What product would you buy for $25,000 to $100,000 or more that becomes worthless a second after your contract rescission period ended, should you need to dispose of the product?   

Our experiences with Wyndham are the same as so many other timeshare buyers, irrespective of the company. Instead of boring you with our Wyndham narrative, I will draw your attention to the lethargy and inaction on the part of regulatory authorities, authorities who are supposed to have our best interests at heart.

I understand that the BBB is not a government agency and has no power to enforce the law or compel a business to act ethically, but I wonder how it is possible for Wyndham to have such a volume of complaints (over 2000) and bad reviews, yet still maintain a C+ rating. About the time when I filed my BBB complaint, there was a warning from the BBB about a pattern of complaints concerning sales practices. That warning has mysteriously been taken down. How did that happen? My next step is to contact Alexis Castro at the Nevada BBB to find out.

It was the same story with the CDRE (California Division of Real Estate). Mr Aiu of the compliance division has been good enough to communicate with me but told me cases are judged on an individual basis, so no point mobilizing a group to achieve strength in numbers.

Hmm, where have we heard that before? The Catholic Church sex abuse scandal and #metoo comes to mind. This dismissal plays right into the hands of Wyndham. My complaint basically comes down to ‘he said, she said’ but ‘we said, he said’ is needed. Someone, somewhere, a regulator, a lawmaker, a media outlet; something needs to happen. If women followed Mr Aiu’s advice, we would still not be allowed to vote.

ARDA, The American Resort Development Association has been quoted as saying; “Timeshares are a highly regulated product.” Big timeshare paints a portrait of happy timeshare campers idling on the beach, but there are thousands of complaints to be found on the internet. Comments from current and former Wyndham employees, like the comment above and additional comments below, support my allegations. If you would like to test my thesis, compare the number and nature of complaints about a hotel brand, contrasted with the number of complaints directed against that same company’s timeshare brand.   

There are state and federal laws prohibiting unfair and deceptive sales tactics, yet the timeshare industry is going strong. I read about lawsuits and AG cases against Wyndham, like the $20 million a jury awarded to former Wyndham sales agent and whistleblower Trish Williams. Even that has done little to stop unfair and deceptive sales. Wyndham and other companies pay out some money, toss in some media window-dressing dollars, and carry on like nothing happened.

I am in it to win it. I will be reaching out to the media, starting with NBC. I will continue to search out agencies that may intervene or advocate on my and other owners’ behalf. Until the FTC, the FBI, or more state AGs act, public awareness is our only safeguard. That is why I am writing this article. It is not acceptable for timeshare sales agents to lie, deceive, misrepresent and withhold information about their product in order to make a sale.

Here are more Glassdoor.com anonymous reviews by current and former Wyndham sales agents rating the company. Their comments support our allegations of deceptive sales practices.

https://www.glassdoor.com/Reviews/Employee-Review-Wyndham-Destinations-RVW3171503.htm

Here are some reviews by salespeople at Wyndham. You are enabling this behaviour by

Helpful (4)

“If you have integrity – don’t even think to work here”

Cons

You are 100% on commission. The only way to sell is lying to customers, the quota is very high and management is very unprofessional. On an everyday basis, you will hear from current owners how disappointed they are with timeshare product – it makes very hard to sell a product that does not do any good for people.

“In House Sales”

The way to making real $ is if you are okay with lying to people, otherwise, you can make an average living 40K or so. The biggest issue is that upper management acts like they have blinders on, making employees sign statements that they will not say certain things, while direct managers teach the sales techniques that encourage embellishments! Really?

Nov 7, 2018

Helpful (1)

“Sales Rep”

Current Employee – Outside Sales Representative in New Orleans, LA

Recommends

Positive Outlook

CEO

I have been working at Wyndham Destinations full-time (Less than a year)

Pros

I can’t even think of one

Cons

Wyndham Destinations over promises and vastly under delivers on potential income – the possibility for large income prospects are there though minutely small. The fact is it’s very hard to even make a living wage. It’s timeshare sales so very very few leads are actually even viable. Additionally, management regularly and actively encourages sales reps to oversell what clients are actually buying, to mislead, misdirect and ultimately be dishonest with prospects and do anything to get the sale.

Aug 21, 2018

Helpful (1)

“Vacation Ownership Sales”

Former Employee – Inside Sales Representative in Atlantic City, NJ

Doesn’t Recommend

Negative Outlook

CEO

I worked at Wyndham Destinations full-time (More than 3 years)

Pros

Some of the people that work there are nice.

Cons

Being trained to lie to clients to sell them points to travel. If you don’t lie, there is no way to make money. Taking advantage of older people and ripping off their retirement funds is not my idea of how to make a living. The worst thing is that management rewards the biggest liars by sending them off on a beautiful vacation and calls it “President’s Club”. If you ever meet a President’s Club sales rep, RUN! There is nothing they are about to tell you that is remotely close to being true.

Jun 30, 2018

Helpful (1)

May 11, 2018

“Vacation Ownership Sales”

Former Employee – Sales Associate in Clearwater, FL

Neutral Outlook

CEO

I worked at Wyndham Destinations full-time (Less than a year)

Pros

Can make great friends among certain Co-workers, free meals, beautiful office space, earning potential is attainable if you possess the skill sets.

Cons

Favouritism from management, unethical sales process, you should not have to lie about what you’re selling if the product is as good as you say it is. Draw sucks

“Front Line Sales – Not for everyone”

Former Employee – Front Line Sales Representative in New Orleans, LA

Doesn’t Recommend

Neutral Outlook

CEO

I worked at Wyndham Destinations full-time

Pros

I genuinely liked most of the people I worked with.

Cons

Marketing can bring in some completely unqualified tours so when you work on straight commission, it can be extremely frustrating. Management’s take on it is complete oblivion if that marketer meets (and exceeds) their numbers. This job can be emotionally draining – especially when you talk to people about vacationing all day and then get little wiggle room to take your own time off (again, management will bend over … if you are selling). I never sacrificed my morals to make a sale but, unfortunately, I saw many people that did.

“Scam”

Former Employee – Vacation Sales Consultant in Clermont, FL

Doesn’t Recommend

Negative Outlook

CEO

I worked at Wyndham Destinations (Less than a year)

Pros

Work life balance. nothing else is good about this job.

Cons

If you are heartless and enjoy lying to people including elders and single moms, then maybe you can do very well here.

Save the Date!

The Platinum Protest is this weekend May 17-19 in Orlando. Contact Inside Timeshare for more information. On May 17 protesters will meet outside the Florida timeshare division office.

Contact Inside Timeshare if you would like to join Laura Crow’s efforts. Here are some self-help groups we feel are not industry influenced. There are honest sales agents and many who use and enjoy their timeshare. That doesn’t mean sales agents who deliberately mislead should be allowed to continue unchecked, report after report confirms, especially in Florida and Nevada. Thank you, Laura Crow, as we welcome our newest active advocate for change.

We seek to provide timeshare members with 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/

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

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

https://www.facebook.com/groups/465692163568779/

https://www.facebook.com/groups/1639958046252175/

Well that’s it for today, if you have any comments or would like to share your views with others, then use our contact page, Inside Timeshare would love to hear from you.

The Tuesday Slot

Welcome to The Tuesday Slot, this week we have another in our series of Secret Shopper reports, but first some news from the UK about ABC Lawyers, one of the Mark Rowe owned companies.

On 8 February 2019, an application to wind down the company ABC Layers Ltd was filed by Mark Rowe with Companies House. The appointed liquidator is David Meany of Quantuma LLP, The Old Town Hall, 71 Christchurch Road, Ringwood, Hampshire.

ABC Lawyers is just one of the companies under the umbrella of Advanced Business Consultants Legal SL,  (formerly registered as Jive Hippo SL), CC Fañabe Plaza 338, Avenida Bruselas, Costa Adeje, 38660, S/C de Tenerife, it is also known as ABC Legal/Other companies are Timeshare Compensation, Timeshare Lawyer, ValueMyTimeshare and Timeshare Advice, all owned by Mark Rowe.

Mark Rowe is also the owner of the following companies registered in the UK, TULOCA LTD (10748107), LANSDOWN FINANCIAL LTD (09742346), STAYCATION LODGES (SCOTLAND) LIMITED (SC549238), STAYCATION LODGES LIMITED (10332646), JIVE HIPPO LIMITED (09863488), MONSTER TEMPCO LIMITED (09855107) and GORLEY VALE FARM LIMITED (09669372). Although he resigned as Director in February 2019, leaving Nicola Helen Rowe as the sole director.

The question being posed now is what will happen to all those clients who have signed up with ABC Lawyers for “compensation claims” and “relinquishments”, are they going to have the work completed?

As we know, several of Marke Rowe’s companies are under police investigation, could this liquidation be a move to prevent yet another of his companies falling under that investigation? Only time will tell.

Now for today’s Secret Shopper Report.

Timeshare Wars!  Deeded Timeshare Owners Fight Back

What kind of business sells points by demanding that if you don’t buy our timeshare points, your children will have to be our customer?

A deeded owner

Marriott Vacation Club Fights Back

Not since the Book of Genesis [1:9-10] has the extraordinary feat of creating land from nothingness been chronicled … and Marriott “saw that it was good” for business. (Plaintiff’s response to motion to dismiss)  

By Another Deeded Week Secret Shopper from Out West

April 23, 2019

Some Vacation Clubs employ predatory and deceptive methods to convince deeded week timeshare “owners” to give up their deed to become a “member” of a points-based timeshare program. Owners are lured to “mandatory” updates designed to convince them why they should join their vacation club.

Last Tuesday a Secret Shopper shared his experience. Shopper owned two continuous deeded weeks at Virginia Beach. He determined that if he had agreed to forfeit his deeds for points, it is unlikely he would have access to the vacation location the family had enjoyed for years.

Some timeshare point members have no “beneficial interest” in actual real estate. Wyndham does sell a point-based deeded timeshare. The (intended pun) point is that just because points are used to identify one’s use interests, does not necessarily make the timeshare a users’ rights product.

In the case of non-deeded points, the point buyer buys points in a “right-to-use” program. Ownership rights are stripped away from the actual real estate. It’s more like buying a membership in a country club than buying a condo, except it’s a country club membership you can’t easily terminate unless the membership is free and clear. If there is no loan and maintenance fees are current, the resort MAY take the timeshare back in return for nothing more than the peace of mind knowing you are done with it.

Charging closing costs for a product that is not real estate was the basis of a class action lawsuit against Marriott Vacation Club.  In a recent ruling,

A Florida Judge has sustained central claims in the class action against Marriott and their points based system. “Consumer Deeds are invalid because they lack any cognizable legal description of a real property interest being conveyed as required by Florida law.”

https://www.nyrealestatelawblog.com/manhattan-litigation-blog/2019/april/florida-judge-sustains-central-claims-in-suit-ag/?fbclid=IwAR2wlVr8NIPBZj9Mcg8vVQI7_yHJvTHkIWTU4NdT9XEC8QANg0rfR9wmZrs#.XKZAISFvVH0.facebook

Our Secret Shopper Experience

Throughout our presentation, we were concerned about the sales agent using terms associated with real estate. Our sales agent said points are backed by real estate held in a trust. Agents used words and phrases like “opening escrow” and a 30 to 45 day closing period. One particularly deceptive use of real estate jargon was stating maintenance fees as HOA fees. They are not the same. It would take another article to explain why they are different. They would not disclose the terms of a loan unless we agreed to purchase.

My husband and I went after them from a financial angle. We said we were concerned about the company’s financial health. We felt the thousands of complaints that can be found about this company on the internet, over 1,000 Better Business Bureau Complaints, a government action, and numerous lawsuits would eventually catch up with them. That doesn’t mean all their sales agents are dishonest, but there are a disproportionate number of complaints compared to other timeshare companies.

What seemed to be the craziest comment came from an agent who came over to answer our questions about the budget report. We had asked:

“Is the Club solvent?” “Are they in debt?”

The agent shockingly responded, “Why would that matter to you?”

We asked for their California public report. We showed them that there was a deficit of $9.696 million. We asked why the public report does not show a reserve account. They said it’s typically not shown in a public report. This makes no sense as that is one of the first things to put in a public report to make the consumer feel more secure. The truth is – there is no reserve account based on documents we had analyzed.

Our sales agent seemed a bit dumbfounded. Our session ended without the usual downturn in attitude when a member says no and means no. We don’t think these agents are used to informed buyers. But Vacation Clubs don’t just try to take your deed. They try to take your Resort!

We are longtime owners at one of the resorts that have opposed the Vacation Club’s attempts to take control. Owners realized a few years ago that the Club was rapidly accumulating inventory. Some owners started reporting that they had been to presentations or updates where they had been informed that either the Club already ‘owned’ our resort, or used scare tactics to convince the owner that if they didn’t convert their deed to points, their deed would be worthless and would be subject to a special assessment. Often, especially seniors are falsely told that if they don’t give up their deed and convert to points their children will be required to be club members when the owner passes.

The Vacation Club business model dealing with “Legacy” resorts is well known. I call this model extortion. Here’s how it works:

  1. The acquiring company takes over management,
  2. Substantially higher fees are charged than the resort was currently paying,
  3. Deeded owners’ maintenance fees are raised substantially,
  4. The cost of club operations is shifted to the deeded owners,
  5. Excessive capital reserve projects are imposed in order to collect additional fees from deeded owners,
  6. Availability, especially for desirable weeks, is reduced for deeded owners.
  7. Desirable weeks are rented to the public to increase income to Club managers.
  8. Nuisance fees are added that are applicable to only deeded owners such as parking fee, split week fee.
  9. Benefits deeded owners enjoyed for many years are eliminated, such as day use and bonus time
  10. Information available to deeded owners is reduced in order to force them to attend high-pressure sales presentations or “updates” designed to wrestle the deed away from the owner.
  11. The value of deeded ownership is demeaned by emphasizing the negative aspects of deeded ownership.  Deeded owners are threatened with special assessments, higher maintenance fees, less availability.
  12. Exchange options become limited for deeded owners in order to coerce them to convert to club membership.

Our Club has used unscrupulous Florida title companies to purchase units from deeded owners under false pretext and transfer them to the Club. The Club has pressured management hired by the resort to enact policies beneficial to the Club.  The Club has brought frivolous legal action against the association and board members individually to intimidate vendors and board members so that the Club can gain control of the resort.

The intent of the Club has been to purchase voting power rather than quality ownership. They have done this by acquiring less than desirable units in less than desirable seasons. The units are not used by the Club for occupancy, yet they still pay the dues for these units. As a result, the Club is determined to take control of the resort so that they can better monetize this worthless inventory.

What can be done to keep our resort?

Our resort has taken advantage of social media to increase owner engagement and the free flow of information among owners and between owners, the board of directors and resort management.  The availability of timely information to the deeded owners has empowered our resort to resist the persistent pressure from the Club to take control of our resort.

Our owners and our board are passionate about our resort and determined to maintain the control that allows them to continue enjoying what they purchased. Deeded owners must unite and organize to hang on to what little real timeshare real estate is left. To think the timeshare world will be nothing but points is sad.

We seek to provide timeshare with 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/

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

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

https://www.facebook.com/groups/465692163568779/

https://www.facebook.com/groups/1639958046252175/

Thank you to our Secret Shoppers for their report, these do help others to be aware of what actually goes on at these presentations and helps them to be prepared.

If you have any views or comments on any article published, use our contact page, Inside Timeshare welcomes your insights.

The Tuesday Slot

Welcome to The Tuesday Slot, today we look again at the Nevada Senate Bill 348, with the introduction by Irene Parker and comments from Michael Kosor. Once again it looks like the industry is moving to protect itself rather than the consumer, yet the problem is one of their own making.

In Europe a new organisation has been created, EUROC, yes, it is the European version of ARDA ROC, it is being funded by ARDA and RDO, (Resorts Development Organisation) Europe’s timeshare trade body. EUROC is being set up to replace the discredited TATOC, which closed down in 2017. Once again it is a smokescreen to give consumers the illusion of having a voice. According to the press information, the two organisations behind it are only going to fund it for a year, after that it should be self sufficient, well, we shall wait and see.

URGENT AND TIME SENSITIVE

If You Bought a Timeshare in Nevada and Experienced Unfair and Deceptive Timeshare Sales Practices

Nevada Needs to Hear From You

The Next Timeshare Legislative Battle is April 5 in Nevada

Nevada Senate Bill 348 is an identical Bill that follows Florida HB 435

Nevada SB 348:  https://legiscan.com/NV/text/SB348/id/1965282

Introduction by Irene Parker

Comments by Nevada resident and Timeshare Advocate Michael Kosor

April 2, 2019

As part of Nevada SB 348, the timeshare lobby ARDA has proposed that timeshare members seeking exit services wait 24 hours before a timeshare member signs a timeshare exit service provider contract. Given the volume of complaints concerning fraudulent timeshare sales, if anyone needs 24 hours to “sleep on it,” it is the timeshare buyer. Buyers typically sign a perpetual timeshare contract with little to no secondary market. When deceived, contracts signed for even $100,000 or more are worth nothing seconds after the rescission period.  We previously reported how easily a sales agent can dodge the rescission period.

Some states, like Arizona, understand the plight of timeshare victims, especially if lawmakers themselves experienced deceit. The reverse is true in Nevada. Many of the 779 complaints Inside Timeshare received were directed against Nevada sales centers. The Nevada Real Estate Division (NRED) dismissed all with a “You have no proof” letter. It is likely Nevada SB 348 was proposed due to a less than warm reception for the identical Florida HB 435, given the comments made by Florida representatives who themselves experienced negative timeshare experiences. Nevada SB 348 was proposed on the last day a bill could be filed.    

In Florida, spokespersons for the Florida Attorney General’s Office and the Department of Business Practice and Regulation (DBPR) reported Florida received 1,600 complaints each year for the last few years with 700 complaints already received in 2019. Of the 1,600 complaints, it was reported that most complaints are about the initial sales presentation and approximately 50% were reported by seniors. Only 42 complaints were “engaged” and those they said were mostly about resale.

In effect, perpetrators in Florida and Nevada have been given the green light to make up anything to sell points, knowing complaints are likely to be dismissed by the timeshare company and by NRED and DBPR. Florida is a two party state so consumers cannot legally record the sales presentation.             

ARDA lobbyist Don Isaacson opposed the pro-consumer Arizona HB that would have required timeshare buyers be granted 24 hours to review a timeshare contract. His argument was that Arizona only receives 250 annual timeshare complaints.

If you experienced unfair and deceptive timeshare sales practices in Nevada, there is an easy method to comment on pending legislation. If you signed an NDA you can still make a general comment asking the bill to be amended to include the offer of a 24 hour period for the buyer to consider the purchase of a timeshare.

To voice your opinion click on Nevada SB 348 to comment:   

https://www.leg.state.nv.us/App/Opinions/80th2019/

Thousands upon thousands of people across America and in the European Union are reporting unfair and deceptive timeshare sales practices. Just this week Consumer Affairs reported on a couple over the age of 85 sold $250,000 in timeshare points. USA Today and the Arizona Republic reported on a couple nearly 90 years old sold $150,000 in timeshare points. In March I received a complaint directed against the same timeshare company from a couple turning 90, both diagnosed with age-related dementia. They were sold $145,000 additional timeshare points promised a maintenance fee relief program that does not exist. A third complaint against one agent, a sales agent we have on a recording defrauding a veteran a year ago, sold a couple ages 79 and 80, 90,000 timeshare points. The husband is diagnosed with Alzheimer’s; the wife’s first language is Cantonese. They were unsure of the purchase price but a conservative estimate is $240,000.    

There’s more!

If this bill passes, law firms providing timeshare exit assistance and legitimate exit providers would not be allowed to receive payment for services provided until all services have been provided. Timeshare companies have not been forthcoming in even notifying timeshare members that their loan has been cancelled. Many have reported not learning of a loan cancelled until a 1099C arrives in the mail.

We want timeshare buyers to be offered 24 hours to think about their decision to sign a timeshare contract. This could be waived if the buyer chooses, but would allow those unduly pressured to consider their decision, consult an attorney, mom, dad, son or daughter. As things stand, same day sales are demanded after exhausting sales sessions.

The proposed “cooling off period” as stated in the NV SB 348:

A time-share exit assistance or relief services provider shall give the owner who is not a developer not less than 1 business day to review a contract pursuant to this section.

Timeshare exit providers have heard from thousands of timeshare buyers desperate to find release. Voice your opinion – click on SB 348 and demand your 24 hours:

https://www.leg.state.nv.us/App/Opinions/80th2019/

Timeshare members collectively donate approximately $5 million a year to the timeshare PAC ARDA ROC through “voluntary” donations via their timeshare maintenance fee invoice, yet not one of the 779 timeshare members who have contacted us could tell me what ARDA or ARDA ROC stands for. These donations fund ARDA lobby efforts. ARDA purports to be lobbying for the consumer, but what’s wrong with a consumer being allowed 24 hours to think over a purchase that has financially devastated so many families?  

Michael Kosor, a Wyndham owner and Las Vegas resident, responds to Wyndham Sr. VP Jason Gamel who testified at the Florida HB 435 legislative workshop held in Tallahassee March 12

The Nevada Senate Bill 348 denies legitimate attorney representation to responsible consumers desperately seeking to escape the perpetual liabilities of a timeshare contract. Attorneys who provide timeshare exit assistance would not be allowed to charge a retainer or any money upfront until services have been provided. Challenging a timeshare contract can take up to two years or more.  

When I last visited the Nevada Real Estate Division (NRED) and sat down with an investigator on the issue of timeshare complaints I learned the following:

  • NRED continues to be one of the only states that I am aware of, with a large number of timeshare sales, with no dedicated timeshare division. I believe Nevada is #7 in timeshare sales.
  • NRED has no legal staff, thus NRED must forward all legal questions to the Attorney General.
  • The investigator confirmed that NRED produces no public report to anyone, including its own investigators, on the number, type, and/or outcome of timeshare complaints filed. Are there fifty or fifty thousand complaints?

Wyndham Sr. VP and attorney Jason Gamel, who provided testimony at the Florida HB 435 Workshop held in Tallahassee March 12, made some arguably false comments in response to Florida state Representative Newton’s question about Wyndham’s dissolution policies. Mr. Gamel explained that there was no need for owners to contract with an exit service provider because members seeking a loan cancellation due to hardship can apply for a hardship release through Wyndham. Those who were denied release and contracted with an exit service provider, or those with pending litigation, will find the testimony interesting.

When asked about the percentage of owners who would be eligible for release through Wyndham’s dissolution program, Gamel stated “…over 99% of the inventory qualifies and if the owner is current in their maintenance fees and their mortgage is paid off, it’s literally just about everybody. So anybody that has called us in the last few years while this program has been active, we have taken those timeshares back.” He further went on to state, “If they qualify for the program everyone gets out.”

I have talked to those who own Wyndham (as I do), who tried to get out but did not “qualify”. When I researched the program I discovered:

  • A policy to exit a Wyndham contract is only a few years old at best.
  • To my knowledge, Wyndham doesn’t publish any qualification criteria. I am an owner. I have asked. They will not provide the specific policy criteria in writing or in a telephone conversation as to what is sufficient to “qualify”. If anyone has the qualification criteria of any developer, exchange program, etc., I would like to see and share it. It is my assessment “qualification” is a purely subjective determination made by Wyndham.
  • Contrary to my experiences and those I have talked to, more often than not, simply being current on maintenance fees and having no mortgage does not automatically result in the ability to exit/dissolution.
  • In my opinion, the entire effort is primarily a smoke screen created in response to increased consumer issues seen as threatening a very profitable business model while deflecting attention away from fixing the flaws in the product and its lack of a resale market.
  • Florida Representative Newton requested and was promised information to support Gamel’s assertions. I hope it will be made public.

Mr. McKelvey, representing ARDA ROC, also made some questionable comments that need to be rebuked. First, he claimed “most of the developers I know and certainly most of the timeshare managers I know, and I managed timeshare properties for thirty years… every single resort had a dissolution policy, every single (one). There was a way to get out. You had to come to your management company, and based on what the board of directors instructed us (the management company) to do in the terms if they had to pay a fee or if they had to be current, whatever those situations were, we did not have a one that did not have a dissolution policy and a hardship policy….”

Mr. McKelvey’s Defenders Resorts may have had a dissolution policy, but in no way can the statement be supported that all resorts have a dissolution policy.

McKelvey went on to imply dissolution policies are “passed by your board of directors.” These are not developers, these are board members elected to a board that have passed a certain dissolution policy. We send that (dissolution policy) to the directors, but we never get an answer.

There is much to challenge in McKelvey’s testimony:

  • I seriously question the validity of his claims related to the vast proliferation of dissolution policies.  
  • There is a huge difference in “having a way to get out” and getting out.
  • Dissolution policies, contrary to what McKelvey implies, are the developer-controlled boards of the corporations and exchange trusts formed by the developers used in the developer’s affiliation (exchange) programs.
  • I find it incredible that legislators and consumer protection agencies fail to act on the realities encased by prior flawed and outdated legislation that permits the sale of perpetual contracts, on the twin legal fantasies that timeshares represent an interest in real estate, and the equally damaging “constructive notice”- a presumption purchasers are knowing of and accepting of all the contract provisions imposed. I know of no other consumer product that fits these twin categories and have produced so much wealth destruction. As I have said in the past, the properties of real estate have been stripped away from timeshares. Buyers own little more than a “membership” in a strange sort of country club that can cost $100,000 or more upfront with perpetual liabilities.

ARDA’s claim that it represents both the industry and the consumer needs to be debunked.  Who are the true consumer advocates?

Thank you Mike for your opinion. Please voice your opinion on the Nevada link provided. Venting on complaint sites is easy and might make you feel better, but venting affects no change.

Self-help groups we feel are not industry influenced:

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.

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

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

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

https://www.facebook.com/groups/465692163568779/

The Tuesday Slot: More on Florida House Bill 435

Welcome to the Tuesday Slot, we continue this week with more on the Florida House Bill 435 Workshop held in 12 March, once again written by Irene Parker who attended.

As usual before publication we have sent the article to Wyndham and ARDA for comment, but as always these tend to be ignored. As a matter of course we always send the proposed article as we welcome comments from the industry, as it furthers debate and it can accomplish our goals of consumer protection.

Without this debate nothing will ever be achieved and the consumer will forever be at the mercy of the industry. In this respect the lack of response only says one thing, for that we let you the reader decide what it is!

More on the Florida House Bill 435 Workshop held March 12

In response to ARDA ROC and Wyndham’s testimony:

How Timeshare Sales Agents can Dodge a Rescission Period

Why Reading the Timeshare Contract does not Always Help

Why the Delay in Reporting Fraud

By Irene Parker

March 19, 2019

The Florida HB 435 Workshop held March 12 in Tallahassee:

At the Florida HB 435 workshop held in Tallahassee March 12, Victoria Butler, from the Florida Attorney General’s Department of Consumer Protection, reported a figure of 1,500 to 1,600 timeshare complaints in 2017 and 2018, with about 50% involving senior citizens. She said the majority of complaints were in regard to the initial sales presentation. There have been 700 complaints filed so far in 2019. Ms. Butler stated that the Florida timeshare division engaged only 42 complaints, the majority concerning resale.

This fits with our members reporting that all timeshare complaints submitted to Florida’s http://Department of Business & Professional Regulation (DBPR) were met with “Verbal representations are difficult to prove.” This lack of enforcement gives a green light to perpetrators, knowing their company will dismiss complaints with, “You signed a contract,” echoed by DBPR’s response, “Verbal representations are hard to prove.”

Platinum timeshare member Sheilah Brust, who designed our Timeshare Regret T-Shirt pictured above, and other Platinum members, are organizing a protest in May in Orlando, astonished at the figures reported by Florida’s timeshare division. The oral representation sentence in the timeshare contract stating, “I did not rely on oral representations to make my purchase,” buried in an 80+ page contract, gets a workout. Our goal is to alert the public that they should not believe a word a timeshare sales agent says, which is not fair to timeshare agents selling the product honestly.

Inside Timeshare has heard from 735 families. Of the 735, 100 are veterans and active duty service members. Over 200 of our readers have sent complaints to the timeshare lobby and PAC ARDA ROC. ARDA ROC does not mediate complaints, but they have a Code of Ethics. All complaints sent to ARDA ROC but one were ignored. ARDA ROC responded to one complaint, “This has been resolved,” even before the member, with a top security clearance, had heard from the company. The CEO of the company sits on ARDA’s board.  An active duty service member or a defense department worker can lose their security clearance, their job and their career over a timeshare foreclosure. ARDA ROC purports to be the voice of timeshare members.    

On Saturday, March 16, I heard from Platinum member #74, told that by purchasing additional points, they would be able to sell or rent points to offset rising maintenance fees, now over $10,000 per year. A 126 page summary report I prepared of reader complaints, shows a pattern and volume of complaints, often the sales agent a repeat offender. All the Platinum members report being told of maintenance fee relief programs that do not exist or a program allowing the member to sell points, if they purchased additional points.      

Platinum report submitted by Andrea K, Platinum member #74:

Our family has been emotionally and financially devastated because of the last timeshare points purchased. By 2016 or 2017 our maintenance fees had increased. The sales agents said we were the only deeded owners left and that is why they said our maintenance fees were so high. They said they were not sure if it was too late, but they could try to get us converted to points.

In 2017 we went to Hawaii. We purchased $55,000 worth of more points. They said if we purchased Hawaii points, we could easier sell because Hawaii is so popular. He showed me a magazine listing Hawaii timeshares for sale. I still have the magazine. He also said if I have this many points I can rent, especially in January to pay for the maintenance fees. We have learned our timeshare company does not allow us to rent using the internet, and that their points are worthless on resale.  

In 2018 we stayed at Tahoe in California but purchased in Nevada. In Tahoe they said because we had not purchased at our last stay, we lost our $3 price so that we would have to pay $9 per point if we did not buy additional points that day. He said our price lock was lost, but when he checked our records, he said for some reason the $3 was still there. He said I needed to sign a paper to remove the $3 price and in the future I would have to buy points at $9. He should have told us our timeshare points are worthless on resale. These presentations have taken 6 to 8 hours, despite being told they would only be for 90 minutes.

As years have gone by, we have learned that things we were told are either exaggerated or not true.  Many of the reimbursements promised did not yield what they had said they would yield.

Twenty of the 74 Platinum complaints were lodged against the same sales agent over a two year period. According to a lawsuit the agent has filed against the company, he said he was instructed to create reasons why existing members needed to buy additional points. He reported earning over $1 million in 2015 selling timeshare points, $2.4 million in 2016 and $2.4 million in 2017, before being terminated. His replacements are generating similar to identical complaints.

Mr. Ken McKelvey, ARDA ROC Chairperson, questioned why timeshare buyers wait so long to report deception. Mr Jason Gamel, Wyndham Sr. VP, Legal said exit companies are not needed because Wyndham has a hardship department to address members struggling with high interest rate timeshare loans. Both spokespersons said the rescission period provides enough time to review a contract and rescind. Our reader complaints address these objections:

How timeshare sales agents and timeshare companies can easily dodge the rescission period:

  • The buyer is told, “This is a new program, so don’t say anything to quality assurance because I could get fired.”
  • The buyer is told, “This program will be available after January 1.”
  • The buyer is not allowed onto the booking site until after the rescission period. Several buyers report being told airfare is included when booking. It’s not until they attempt to book they learn this is Blarney.
  • The buyer reports being told loans will be consolidated, but then the loan is not consolidated. The buyer does not learn this until the next loan payment, after the rescission period.
  • The buyer is told to wait a few months before refinancing.

Why reading the contract does not always help:

  • Buyers are shown a booklet of resorts, but the buyer is not allowed onto the booking site until after the rescission period. Actual availability cannot be determined by reading the contract.
  • My contract stated, “You can sell points, we will not assist you.” It left out the part about licensed timeshare brokers will not accept a listing for my timeshare points.

Why there is a delay in reporting fraud:

  • The reason that it may be several years before fraud is reported is because a negative life event triggers the need to sell. It is not until that trigger occurs that the buyer, who was sold on the promise that the timeshare is like real estate, easily sold, learns their timeshare is worthless.
  • It is not until a tax preparer, attorney, or grown child of elderly parents discovers predatory actions, such as the retired Navy veteran, living on a letter carrier’s pension, up-sold to $2,700 a month in timeshare loan payments. There have been numerous complaints involving Alzheimer diagnosed buyers.

We are hoping Marine veteran James Sherwood fell through the cracks at Wyndham, and that Wyndham will reach out to Mr. Sherwood. Mr. Sherwood’s wife broke both hips three years ago and has had a total hip replacement. He is disabled. Neither can travel. Wyndham would not accept that Mr. Sherwood was disabled. They demanded proof he could not travel. The VA provided a letter stating Mr. Sherwood could not travel. This was not sufficient. Mr. Sherwood felt it was an invasion of privacy to demand all medical and financial records, especially since he was told when he purchased the timeshare, that the transaction was a real estate transaction and could easily be sold. http://insidetimeshare.com/http-insidetimeshare-com-p5114/

Timeshare members are deeply grateful to Florida lawmakers, who echoed some of their negative timeshare experiences during the Florida HB 435 workshop. For the first time in memory, lawmakers’ voices talked back to the timeshare industry and to industry lobbyists. A timeshare consumer protection Arizona HB 2639 bill is currently being debated, strongly opposed by ARDA. The Arizona Attorney General’s office received 400 complaints against just one company. After a press release announcing an investigation a few years ago, they received an additional 500 complaints, according to members who spoke with the Arizona AG’s office.  

The question I am most frequently asked:  “How do they sleep at night?”

My answer, “Bernie Madoff had no trouble sleeping at night.”

The comment I hear most frequently, “I feel so stupid.”

I answer that the following have reached out to us describing unfair and deceptive sales practices, in addition to the vulnerable:

  • Three PhD economic and criminal justice professors
  • A Florida detective who worked economic crimes undercover
  • A Consolidated Edison contract specialist
  • Lawyers and mortgage brokers

Can it be, after all this time, the consumer’s voice is being heard?

Contact Inside Timeshare or one of these self-help groups if you need help:

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.

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

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

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

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

https://www.facebook.com/groups/465692163568779/

https://www.facebook.com/groups/1639958046252175/

Thank you Irene and all our advocates for all the hard work you put in on behalf of the consumer, without you there would be nowhere for them to turn.

If you have any comments or views on this or any other article published on Inside Timeshare, use our contact page, we would love to hear from you.