The Tuesday Slot with Irene: Lawsuit Filed Against Diamond Resorts

Welcome to the Tuesday Slot with Irene Parker, as this is breaking news and an important story,  we go straight into her article and will catch up with Europe in Wednesdays publication.

Class Action Lawsuit Filed Against Diamond Resorts

This action alleges Defendant’s sold unregistered securities in violation of the Securities Act of 1933 that requires that any securities sold in the United States be registered with the United States Securities and Exchange Commission

Factual Allegations of False Representations

(i) DRI points appreciate in value

(ii) DRI points can be readily sold

(iii) DRI points are a hedge against inflation

(iv) DRI points constitute an appreciating asset that DRI members can pass along to heirs.

By Irene Parker

February 13, 2018

A class action lawsuit has been filed against Diamond Resorts. It’s not easy to make your way through a 43 page complaint, so after I digested it, I cut and pasted the complaint so I can understand it.

Inside Timeshare has received 292 Diamond Resorts complaints, 48 since the first of the year. Diamond has implemented a Diamond Resorts Consumer Advocacy Department to address member concerns, and has implemented a CLARITY™ program designed to promote “transparency, accountability, and respect for the customer.” Attorney General Mark Brnovich issued Diamond an Assurance of Discontinuance in 2017 after his office received hundreds of complaints from Diamond members accusing the company of violating the Arizona Consumer Fraud Act. The company did not admit wrongdoing.

To follow the progress of the case, Diamond members or industry observers are encouraged to join our member sponsored Diamond Resorts Owners Advocacy Facebook established February 17, 2017.

Case 2:18-cv-00247 filed February 9, 2018 in United States District Court, District of Nevada

Wolf Haldenstein Adler Freeman & Herz LLP

Albright, Stoddard Warnick & Albright

Plaintiffs:  Joseph M Dropp, Mary E Dropp, Robert Levine, Susan Levine, and Kaarina Pakka, Individually and on Behalf of All others similarly situated


Diamond Resorts International, Inc.;

Diamond Resorts Holdings, LLC;

Diamond Resorts Corporation;

Diamond Resorts International Club, Inc., a/k/a “THE Club” Operating Company

Diamond Resorts U.S. Collection Development, LLC;

Diamond Resorts U.S. Collection Members Association

Diamond Resorts Hawaii Collection Development, LLC

Diamond Resorts Hawaii Collection Members Association

Apollo Management VIII, L.P.,

Apollo Global Management, LLC

Michael Flaskey

Kenneth Siegel

Excerpts from the complaint:

The lawsuit alleges almost none of the Class members are aware that they have purchased an unregistered security under the Security Act of 1933.

  1. The arbitration clause does not apply

The entire Agreement – including the arbitration clause – is void and unenforceable under federal securities law. 10

Class Action Allegations

Common questions of law and fact include, without limitation, the following:

  1. Whether the points in a U.S. Collection Members Association, the Hawaii Collection and/or THE Club constitute securities under the Securities Act;
  2. Whether DRI violated the registration provision of the Securities Act;
  3. Whether a common practice of DRI employees and/or agents to potential investors was to make representations that “points” are investments that will appreciate in value due to the efforts of DRI as set forth herein; and
  4. The nature of relief that may be granted to Plaintiffs and the Class under the Securities Act.

Similarly situated persons:

All persons who purchased “points in THE Club and membership in a Diamond Resorts U.S. Collection Members Association or in the Diamond Resorts Hawaii Collection Members Association on or after three years prior to date filing of this complaint. Excluded from the Class are Defendants and any of their affiliate’s current and former employees, officers and directors.

  1. A “Pricing History and Location Growth for DRI” shows how the DRI points have increased and will increase in value over time.  A recent version states that between January 26, 2013 and January 1, 2017, DRI points in the U.S. Collection:  “15% Price per point increase in less than three years” with an “average” increase of 25%. Finally, the document states that points purchased “today” at $8.61 per point will be “worth” $10.76 per point in one year, and $13.45 in two years.


9. The Securities Act, passed in response to the stock market crash of 1929, was caused in part by issuers selling stock or other investments based on false representations, without disclosure of material information, and/or without and continuing reporting obligations.

10. Defendants are selling purchasers investment contracts, and hence securities, even if they are not explicitly described as such and even though the written contracts contradict in part the promises of the sales pitch.

Lead Plaintiffs

The Dropp Plaintiffs, New York residents, were initially owners of an unrelated timeshare purchased in Virginia Beach, Virginia and Kill Devil, North Carolina, through Gold Key Resort, subsequently acquired by Diamond Resorts on or about August 4, 2016. At an “update meeting” the Dropps were told that failure to purchase DRI points would render the Dropp’s existing timeshare membership useless or worthless.  The Dropp’s purchased points:  

8,500 U.S. Collection points purchased for $25,710 in Virginia August 6, 2016

A few hours after this purchase, they received a phone call from DRI insisting they were required to schedule an “orientation” with DRI that would take place in Las Vegas.

50,000 additional U.S. Collection points purchased for $140,000 in Las Vegas November 9, 2016

According to the complaint, a DRI salesperson took Plaintiffs to a private office, and made, inter alia (among other things), the following representations if they purchased DRI points:

  • He described DRI points as an investment.
  • He stated the Dropps would own an interest in real property.
  • He said that these additional points in DRI, plus the 8,500 points already owned, would be worth approximately $700,000 of “equity.”
  • He said that the value of the points would increase over time due to the improvements and updates that DRI continuously made to their properties.
  • He indicated that the points (and the “properties”) should be added to the the Dropp’s wills and could be bequeathed to their children and grandchildren.
  • He stated that the points could be sold for a profit in the future.
  • He informed the Dropps that they could use their DRI credit card for purchases and earn (wholly separate) points, which could be applied to their maintenance fees. Contrary to the DRI salesperson’s representations, in no way do purchases made on the DRI credit card offset or absolve the Dropp’s obligation to pay their annual maintenance fees.  

The Levine Plaintiffs, California residents

The Levines had acquired 35,000 US Collection points by 2016.

Purchased 35,000 Hawaii Collection points for $84,650 in Kona, Hawaii October 25, 2016

A DRI sales agent represented to the Levine Plaintiffs that:

  • They should convert all of Susan Levine’s points in the U.S. Collection to the Hawaii Collection because points in the Hawaii Collection would appreciate faster than points in the U.S. Collection due to the fact that there is limited real estate in Hawaii, causing real estate values to continue to rise.
  • Their points could be passed down to heirs and heirs could sell points at a profit.
  • They would have to purchase more points to convert their U.S. Collection points to Hawaii Collection points.
  • If they purchased points in the Hawaii Collection immediately, they would purchase at a “low price” because the price per point was steadily increasing.

Purchased 25,000 U.S. Collection points for $71,250 in Miami May 11, 2017

A DRI sales agent represented to them:

  • Points in the U.S. Collection are actually more valuable than points in the Hawaii Collection because the U.S. Collection requires the payment of lower maintenance fees.
  • Points purchased in the U.S. Collection are steadily increasing in value and could be sold at a profit in the future.
  • However, in order to convert their points in the Hawaii Collection to points in the U.S. Collection, they would need to purchase additional points in the U.S. Collection.

Purchased 50,000 U.S. Collection points for $144,000 in Las Vegas at Polo Towers July 11, 2017

A DRI sales agent represented to them:

  • DRI was implementing a new “Legacy Program” designed to operate as an estate planning device beginning January 2018. Through the Legacy Program, DRI itself would sell up to 20,000 of the Levine’s points at a price of $8.79 per point, generating a total sale price of $176,000, minus an estimated escrow fee. The profit would be passed along to the Levines, and they would not have to do anything other than contact DRI to commence the selling of points. However, in order to participate in the Legacy Program, the Levines would have to purchase 50,000 additional appoints in the U.S. Collection.
  • If the Levines or their heirs wished to sell all of their points in the future, DRI would “handle” the sale and sell the points at a price of $8.79 per point for a total amount of $1,230,000 minus closing costs.
  • Additionally, if the Levines purchased 50,000 additional points in the U.S. Collections that day, they could covert up to 80,000 of the DRI points to a credit on this Diamond credit card and could use that credit to pay their annual maintenance fees.
  • Again, the Levines were told that prices per point in the U.S. Collection were constantly increasing and they had to purchase points that day in order to reap the benefits of this investment.

When the Levines attempted to sell points, they were informed that no such program existed, and that DRI would not make any attempts to sell points.  In addition, no program existed by which the Levines could convert some of their points to a credit card and sue that credit to pay their maintenance fees.

The Pakka Plaintiff, original Sunterra owners, converted to 30,000 U.S. Collection points.  

Purchased 50,000 Hawaii points for $175,356 in Maui on November 16, 2016

A DRI salesperson represented to Plaintiff Pakka that:

  • DRI points were an “investment” that would increase in value over time. Plaintiff Pakka was provided with a “Pricing History and Location Growth for Diamond Resorts International” document which projects how much value the points will gain over time.
  • The value of her points “can only go up.”
  • She would have “no problem” selling her points.
  1. Diamond is in the business of selling “points”, which are marketed to prospective purchasers as an investment which will appreciate in value and can be easily resold. Diamond sells points to new point purchasers, as well as existing owners, in person, at sales centers in several Diamond resorts throughout the United States.
  2. Prior to the 60 to 90 minutes sales presentation, no contract or other official DRI document describing the terms of the point investment is provided to the prospective purchasers until the time of closing.
  3. Vacation counselors’ sales presentation exceed 90 minutes and often last five to six hours in length or longer. Moreover, DRI tells prospective purchasers that they will forfeit their benefits if they leave the sales presentation before the respective sales people agree that the presentation is over. Prospective purchaser are not permitted to take any contract, information sheets, Purchase and Security Agreements, Credit Sales Contracts, notes, or other written materials with them off premises prior to closing, nor are prospective purchasers given time to consult with their own advisors, attorney, or any other person during the sales presentation.
  4. DRI pitches its points as an investment that will appreciate in value due to continuing improvements made by Diamond in the quality and number of its resort and hotel properties, the general appreciation of real estate in the future and the managerial skill that DRI provides in operating the properties. The unwitting targets are told that by purchasing points “now” the purchasers will receive a discounted purchase price that is only available on the day of the sales presentation; they are investing in their future; their points will increase in value; they can use points to pay annual maintenance fees, they can bequeath the points to their heirs as an inheritance and they can sell their points – at a profit – at any time. Thus, these points are actually investment contracts and therefore securities, under the United States securities laws.
  5. Once the purchasers agrees to purchase points, they are individually shepherded to a sales center “quality control” person, whose job it is to obtain the purchaser’s signature on a lengthy, densely worded sales contract (the PSA) and to instruct the purchaser to initial numerous items on a lengthy information sheet. (Often the initials are generated electronically by the sales people for the purchasers’ “convenience”).  The closing documents contradict parts of what the prospective purchasers are told and/or shown during the sales presentations.
  6. Points can cost hundreds of thousands of dollars, and the purchases are often financed by DRI at credit card interest rates. Maintenance fees have risen at a rate far higher and faster than ordinary inflation despite the economies of scale that DRI has in place to manage its properties.  Existing point purchasers are often induced to purchase additional points in order to reach “preferred” thresholds. DRI tells these point purchaser or members that if they buy more points, the DRI member will no longer be required to pay “maintenance” fees. By way of example, DRI investors are told that by becoming platinum members (50,000 point owners) the investors may redeem their points at the rate of 30 cents each to pay for maintenance fees. Since maintenance fees are currently approximately 18 cents each, the DRI investor is told that he or she can actually profit “off the spread” by purchasing more points. However, when DRI investors try to redeem points, they discover that there is no such program in place.
  7. Sales pitches regarding the investment value of the points are false. DRI points do not increase in value, there is no viable secondary market for them, and DRI severely restricts the resale of points. Moreover, DRI contracts or PSA last in perpetuity.

The amount in controversy exceeds the sum or value of $5,000,000, excluding interest and costs.

Business Model

VOI Vacation Ownership Interest Points

DRI does not refer to itself as a timeshare company

Nevada law protects timeshare owners of traditional timeshare that were fixed weeks, by prohibiting timeshare companies from selling more than 365 use-days in any particular property in any particular year.

  1. Investor-members purchasing points in Nevada are provided a form stating that the DRI salesperson is licensed real estate agent who has a fiduciary duty to disclose all facts material to the transaction, DRI points are in no way tied to the value of any real estate.
  2. The Convoluted Relationship between DRI, the Club, and the U.S. and Hawaii Collections
  3. The investor-member has no direct ownership interest in any real property. The real property is owned by or held by the trust, for the benefit of a Home Owners Association, in which the investor is a member solely by virtue of his or her ownership of points.
  4. DRI controls the votes electing the boards of directors for each Association. The board of every Association has hired DRI to provide management services for the Association – services for which DRI receives substantial fees.

III Points have no Intrinsic Value

IV The Onerous, Ongoing Cost of DRI Points and its Relationship to DRI’s Business Model

  1. DRI collects a property “management fee” of 10-15% per year of the costs of operating any resort in a Diamond Collection.
  2. Between January 1, 2011 and December 31, 2015, DRI financed 74.5% of all its Membership sales. According to the restated financial statements, in the DRI 10k, DRI sold $624,283,000 of vacation interests in 2015.
  3. DRI relies upon a $100 million loan sale facility with Quorum Federal Credit Union.  “In the past, we have sold or securitized a substantial portion of the consumer loans we originated from our consumers.”4
  4. Unlike an interest rate for a home mortgage, affordability measures like debt to income ratios do not apply.
  5. In 2015 DRI sent IRS Form 1098 to investors setting forth the amount of mortgage interest (which is generally deductible) paid in a particular year.

IV The High-Pressure Sales Process

  1. 61 sales centers around the world, with a full in-house sales and marketing team at 49 locations, including Polo Towers.
  2. “Mini Vacation” packages lure prospective investors. If the target fails to attend the sales presentation, or leaves before the presentation has completed, the individual is told that he or she is responsible for paying the cost of the entire package.
  3. Points are being sold to them at a discount, so that they will have “equity” because they own interests that are worth more than the purchase price.

B DRI Salespeople State that there is a market for points, and DRI will help investor-members find buyers for their points.  

  1. DRI salespeople represent that they will help an investor-member sell their points which contradicts THE Club “Legal Documents” which state that “THE Club Operating Company has no obligation to assist a Member with the resale, lease or rental of his or her Qualifying Interest.”
  2. Timeshare Exit companies advise investor-members to simply stop making payments on their maintenance fees and/or loan. DRI then terminates the membership, recaptures the points (as recycled inventory) and then resells to new purchasers. The net result is that the purchasers lose their entire investment.

V Terms of the DRI Purchase and Security Agreements

A. The Member-Investor’s Right to Rescind the Agreement is Illusory

Click on the PDF file below to see the full document:

Complaint (JT Demanded) 2 9 18 A Filed #1

This is certainly a major story and Irene will be keeping us posted on any further news and developments.



  • Pete

    February 13, 2018

    We were defrauded by Diamond Resorts for $15,500 on 11/18/2016 in Charlottesville, Virginia. What happened is that their salesperson made representations to us which were not in the written contract we signed. We found out later that virtually nothing he represented to us at the sales presentation in order to induce us to buy was true. Details follow.

    We only went to the presentation to receive the ‘attendance reward’. After a few hours of listening to the usual hard sell spiel trying to get us to buy more anyway even though it made no sense for us because we wanted to “sell” what we already owned (for zero, which I have always known as the industry standard practice) , we made our position clear and started to leave. At this point our salesman offered us this “great new deal” Diamond could offer members who bought more points to become ‘silver’ members. The deal was that if we became silver members, after three years we would have the option to sell all our points back to diamond for $108,000. He also put this phoney deal in writing (which I have). I was extremely skeptical because I had never heard of a timeshare buying back points. However, after he repeated this ‘new deal’ for about 5 times we finally decided that he couldn’t possibly be flat out lying to our face, (or if he worked for a reputable company they would rescind the contract), so we signed. When we later (6 months) found out that the deal he had offered us was totally fraudulent, we asked Diamond (repeatedly, orally and in writing) to rescind the contract because we had been defrauded. Their response….”it doesn’t matter” what the salesman told us or even wrote down. The only thing they care about is that we signed their written contract. So they don’t stand behind whatever the salespeople are claiming. Basiclally, we were told over and over again that “well, you signed the contract”, even though the only reason we signed was because of what their salesperson told us which turned out to be a fairy tale. We are talking about major phoney representations, not minor. Obviously when salespeople know that when their company doesn’t care if they make up a pack of lies to elicit a sale, if they are unethical they will say anything to get a commission. These people are totally unethical if not criminal. We want our contract rescinded and our money back!

  • Kevin

    February 20, 2018

    I was convinced to purchase 3000 additional points for $14,100 on Jan 15, 2017. We were told that we would be Platinum at 5k points, not 50K, but 5k. We were told we would be able to sell back our unused points every year at a rate of $.50 per point. We were told that Diamond would buy back out points package in 1 years time if we were not happy. All Lies. and yes, the sales agent compared it to an investment. He said this stuff would not be in the paperwork we were signing because it was all new programs being introduced by Apollo who had just bought Diamond. He even gave us a timeline for when Apollo would be rolling out those programs. All verbally of course. This happened at Grand Beach Resort, Orlando Florida. I have submitted a complaint to Diamond, asking for my money back, it was denied of course.

  • o'mara

    February 20, 2018

    I am genuinely thankful to the holder of this web site who has shared
    this great article at here.

  • Billy Seah

    March 3, 2018

    We experienced almost all that is reflected in this class action. We were original owners with Sunterra and over the years had succumbed to similar sales tactics. Regrettably not once, but twice more.

    First time round was being persuaded in an owners update that we would be doing the right thing to convert our original ownership with Kanaapali @ Sunterra to a US mainland collection. All those promises of higher value, averaging out costs, etc.. were made to us. This involved purchasing more points, which we bought. Similar to everyone else, we saw our maintenance fees ballooning.

    Again, like what most other owners complained, we were always unsuccessful in making reservations in Hawaii, our preferred vacation venue, which was also where our original ownership was located. In a subsequent ‘update’ presentation in another location, we were told that we should have kept the Kanaapali ownership if we had wanted to be ‘assured’ of making reservations with the property. Reasonings such as demand and supply mechanics, Hawaii being the most sought after location would be offered first to higher status members and members with Hawaii ownership, and other reasons were thrown in.

    So we were offered the opportunity to correct the error by trying out the 18 month Sampler program, where we were assured that it does not cost much. We were told that it is a ‘no brainer’ –

    i. that we will be able to sample DRI service at a higher level than our current status – like being able to book our favored Hawaii venue – and

    ii. that we could use the Sampler purchase money to pay for maintenance fees – if we find ourselves not being able to utilize the points purchased in the sampling program.

    We shared at that presentation that we were taking up a 2 year work assignment out of the country and that we may experience difficulty utilizing the Sampler. We were assured that the decision to utilize the Sampler money towards maintenance fees would be a simple process.

    Funny thing was that the sample program was not even available for us to utilize in the immediate 12 months from the purchase date. It did not even appear in our membership until we highlighted it to DRI (12 months from the purchase date when we were making payment towards the annual maintenance). This was subsequently corrected by DRI – the Sampler points became available in our account. But we only had the remaining 6 months to utilize the Sampler program despite our protest that we had signed and paid for the use of the Sampler program available over 18 months.

    When we tried to give up on the use of the Sampler program by inquiring about using the money paid toward maintenance fees, we were told that there was not such provision in the contract. Going back to the Sampler paperwork, we realized that our pressured manner of signing off the paperwork after almost 3 hours of update did not do us justice – the paperwork did not reflect a provision that we could use the money towards maintenance fees, and it mentioned that the money paid could only be used towards payment of a further upgrade of our membership. The alleged promise was only made verbally by the sales staff. We were lost in search for another word for ‘scam’.

    We did enjoy the vacation that we had – made under duress to utilize the Sampler points and membership points that were paid for over the years. It’s just the constant dishonesty that we are faced with during updates that puts a very sour and unhappy note to the ownership. The ballooning maintenance fees is also creeping up on us – making it less affordable each year. The irony is that each time when we utilize the points at the various locations, you can almost always compare the ‘market rate’ of the rooms against what we had paid for using points. Rooms seems to be almost always available online to the public over the same dates that we utilize the resorts, and at rates lower than what we paid for in points utilized for those stays.

    This really has been a big WIN (for DRI) and and ever increasing LOSE (for its members) situation spirally out of our ability to mitigate. We hope this class action suit could provide an out for many owners experiencing similar dismay with DRI – and prevent future owners from being placed in the same situation.

  • Stuba

    March 6, 2018

    We just had an owners update today at Sedona Summit. We are original Sunterra deeded owners that converted to points. Moving ownership from Branson, Missouri to Grand Villas, Florida and now Platinum owners in the Hawaii Collection. Our timing was terrible as we upgraded in Maui just in time to take part in the water intrusion project at Poipu Point. the big push today was to purchase more points in another collection 8,500 for 75k. This would allow us to move our Hawaii Collection points to another collection that would have lower maintenance fee, giving our points greater value to use them to offset the annual fees. We declined the offer and awaited the next pusher to come in.

    The next push was an old contract opportunity that we had not signed off on, it was left over from our upgrade to Platinum in Maui and unfortunately, if we wanted to exercise it they would have to allow us to buy additional points at the rate offered in 2014. This amounted to about half of what they had just offered us to buy the 8,500 points for, or $4.6 a point. Now this is the second time this technique had been used on us. The first being when we upgraded to platinum in Hawaii. The interesting thing was as part of our upgrade purchase we had received several travel opportunities one of which was a 10 day vacation to Kauai and Maui including airfair. We used that offer and travelled to Kauai, had booked a few days on the front end at Poipu and a week in Maui on the tail end. We sat in on an update in Kauai, standard push to purchase more points, second push was the existing 18 month or next update window to take advantage of the same price we bought. We declined, they asked us to sign that document that we were declining the offer. We did so and moved on. When we arrived in Maui, we got a big push to attend an update there, I asked what about the rules of only attending an update once a year. We were told not to worry about that, they would get us in and get us some incentives for attending. We did and met with them again only 6 days after we had done so in Kauai. It was the same push and the second push was actually the same also, after declining again. They asked us to sign the document declining the offer again so they had it for their files as the Point must not have updated it in our records. So today was 3rd time signing the same document. I can’t wait for the next update we attend.

    I’m hoping something will come from this pending action. In reading all about Apollo and the involvement with loans to the Trump empire I’m not very confident the future holds any positives for Diamond

    We really are fed up with all this, we have $110k invested and are actually at the point where if we could walk away, I think we would.

  • Debbie Favinger

    March 12, 2018

    This is a letter I sent to DRI, filled with my complaints of the issues my husband and I have been through with them (and in a little less than a year). If there is ANY hope of getting out of this nightmare, I want to be on-board!

    My husband and I were at a “60” minute mandatory marketing pitch when we stayed at Mystic Dunes in Kissimmee, FL back in April of last year (2017). We stupidly, after 2 hours of this 60 minute pitch, agreed to increase our points to bring us to a “Silver” membership level. Once we got home and I spent too many sleepless nights worrying about the money we’d just committed to, I found the clause that allowed us to back out within 10 days, and did so.

    About a week later, we started getting calls from another Diamond Rep who had a “deal” to offer that wouldn’t cost as much… talking of all-inclusive resorts that Diamond had in Aruba and Cancun that would be at our disposal and how beautiful they were, blah blah blah. After several days… weeks?… of this sales pressure, we went with the less money deal, excited about the possibility of going to an all-inclusive with the points we were now getting. It wasn’t until we received our membership credentials that we were able to even attempt to book anything, and of course, this was after the 10 day retraction period. I immediately tried to book something in Cabo, had the points to do so and the available time – just to find out that there was an additional charge starting at $125 per person per night for the all-inclusive part!!!! And if booking in Aruba, the fee started at over $200/pp/night! This was only one of the eye opening issues I started to realize… We had so many points at this point that we had to use by the end of the year, we had to start booking locally, close to work, so we didn’t lose these points that we didn’t have vacation time to use by the end of the year!

    In August of the same year we had booked time at the Daytona Regency to use some of these points, and we decided to go to an “update” (as it was called – we’ve since learned what that really means) that offered to give us $200 to attend (at this point, we needed the $$$)… we explained that we were NOT interested in increasing our membership, and actually were very up front about just wanting the $200. As they looked at what we had recently agreed to with our previous agreement, they became “concerned” and acted like they felt we’d not been given good direction… blah blah blah They offered to increase our points so that we were truly at a Silver level, which would allow us to “NEVER have to attend one of these “updates” again” (quoted here… by Greg who officiated our bogus paperwork with a Sampler). The catch was, we would pay $40/month for a total of $4,000 over the next 2 years, and if at the end of this 2 years of Silver membership we weren’t happy with what this level of membership provided us, they would give us back the $4,000 (yes, again, this was exactly what Greg at Regency told us!!) and just leave our points at the level they were. Here comes the real kicker… the word “Sampler” (a bi-product of Diamond) was NEVER mentioned… but when we received our paperwork, that was what it indicated we had purchased. This meant that when we used these points, we would HAVE to attend these “60” minute / 2++ hour updates or whatever they call them, or they would charge us for the full price of the room!!! Not only that, but we found out that we could not offer others to use the Sampler points (and call me stupid, but wouldn’t they be the better opportunity to get to buy into Diamond???)… only our Silver points! SO!! WE are the ones that have to endure these “updates” (which, as angry and upset as we are, there isn’t a snowball’s chance we will put any more $$ into Diamond!!) and anyone we might let use our silver points will be treated at the level in which we thought we paid for and were promised, basically making this 2 year silver membership status a total bust!

    Lastly, although I really doubt it will be the last debacle we’ll face over the next 2 years until we part ways with Diamond Resort… on Tuesday, Oct. 3, my husband returned to our room at Liki Tiki to find that his key did not work. Upon waiting in line at the front desk, he was told that their records showed we were checked out as of that morning… we actually were not suppose to be out until Thursday. I can’t begin to express how angry I was at this point, and I’ll leave it at that.

    This has caused my husband and I to have to forget about retiring next year, as we are now in-debt to pay this off over the next 2 years. Not only that, but we won’t have enough vacation time to use these points to vacation anywhere!

    3 mos. later… January of 2018
    OK, so to continue my deception/outright lies rant… we managed to figure out paying this off (by refinancing our home and paying off all other debt), and additionally, were talked into upping our membership all the way to Silver. After figuring out how to pay for the first half of becoming Silver, we realized that those $$$ would be for nothing if we didn’t commit all the way. PLUS… the fact that we were told Diamond had just acquired a resort in the Destin area (something we’d been looking for from the beginning), helped to convince us to commit to this. In fact, the rep we were working with at the time said something about DRI being in the process of wrapping up this “deal”… HOWEVER! I called on Wednesday, Jan. 10 to have someone help me to book a stay there (because I wasn’t finding any such resort on the website), and although the rep was trying hard to also find it (because she had heard/knew that Diamond was suppose to have one), she was told it was NOT Diamond property, but an affiliate’s and only their members were allowed to book there… WTH??!!!

    I can’t even begin to tell you how angry I was, but it only got worse when I then started to look for some places to book on our trip to VA in June… wanting to spend a couple days in-between, taking advantage of our “new, special” Silver membership. Can you guess what I might have found? NOTHING!! I’m getting the same BS I’ve always gotten with timeshares (and believe me, Diamond definitely has taught me the lesson to never ever get involved in timeshares or anything even resembling them again… they have, by far been the worst!)… I could not find any availability where or when I needed it between Orlando and Norfolk, VA the first 2 weeks of June.

    This has been the most stressful debacle I have ever had to experience in this timeshare membership… such deception, misrepresentation and downright lying!! Unbelievable!!

    An incredibly disappointed, but stuck-with-it member!

  • Irene Parker

    March 13, 2018

    Thank you O’mara, Stuba, Debbie (I believe the others are already Facebook members)
    Debbie Favinger – No one is stuck with it! This is America and there is no debtor’s prison except for failure to pay child support. I will carefully review all the complaints posted above. Remember, EXTREMELY IMPORTANT! We thank you for sharing your complaint, but file regulatory and law enforcement complaints, join our Diamond Resorts Owners Advocacy Facebook launched by an economics professor. We are not all dummies not smart enough to know how to use our points. We are victims of a crime. According to six FBI agents I’ve talked to, having spent hours on the phone, you and others are victims of White Collar Crime, fraud for profit. You can find our complaint form in FILES on our Facebook Please join. This is the only way to stop predatory and criminal actions. Timeshare Advocacy Group now has teams of members helping other members. The problems are bigger than any one timeshare company so our TAG Facebook posts articles about all timeshare companies, good and bad. So far Disney Vacation Club is the only clean slate. Our Mission: “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.” Get involved. We love turning desperate, angry, overwhelmed voices into empowered voice. It’s easy to hear the difference.


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