Gregory Crist the CEO of the NTOA (National Timeshare Owners Association), will be making a presentation at the TBMA (Timeshare Board Members Association) in Tucson AZ, on 16 to 18 October.

The presentation will be about Combating Fraud in the Changing Timeshare Environment, this is an area which affects timeshare owners worldwide, from dubious resale companies to false claims and law firms. In the USA there is a very severe problem of as he puts it “bad actors” who are taking advantage of owners and severely damaging the reputation of the entire secondary market (resale).

He states that these fraudulent companies who operate what is commonly called the “Viking Ship” programme, cause considerable harm to owners and resort associations alike. Regulators have been attempting to close down fraudulent transfer and resale companies who use unfair and deceptive trade practises, but Greg believes there is a great need for owner education and consumer protection.

On another matter, Greg also informed Inside Timeshare of a Senator who managed to block a bill which would have restricted owners access to HOA (Home Owners Association) rosters. These are the list of all members who own timeshare and are members of the association.

The bill would have made it impossible for the HOA to be able to communicate with other members, which would have had a considerable effect on informing them of board policies and HOA issues.

The bill was sponsored by ARDA (American Resort Development Association), and was a means of protecting owner confidentiality. In other words stopping a legitimate use of these lists thereby controlling any form of owners coming together for the common good.

According to ARDA this bill was to protect owners from predatory rogue transfer and resale companies. It transpires that ARDA did not even show any evidence that these rosters had ever been sold or misused.

Again this is a blatant abuse by the industry to prevent any dissemination of information which would be of use to owners. This is not just a problem in the US, we also have the same problem in Europe, whereby information is hidden or denied. Only recently we have found that one resort, Anfi, is contacting owners and denying any buyout of the Lyng family shares by IFA Lopesan and also denying any legal action being taken against them. All this even though it has been widely circulated in the European press. (Search Anfi for previous posts).

For the full articles see the PDF below.

more-from-greg-crist-at-the-ntoa

Once again a very big thank you to Greg and Irene for all the information they pass on, it is through collaboration that we all can find out what is going on. Without this we will be kept in the dark, it also helps to see what “scams” and other “schemes” may just be lying in wait, after all what happens here may happen there next year and vise versa.

The post More from across the Pond: Information from the NTOA. appeared first on Inside Timeshare.

Once again those intrepid and tenacious lawyers from Canarian Legal Alliance have struck again, this week has seen another 4 victories for their clients in the Spanish lower courts and Supreme Court.

The week started off with a victory at the High Court number 5 of Las Palmas, 10 October, in this ruling the court upheld recent Supreme Court rulings on contracts involving “Floating Weeks”. As these weeks are sold without a fixed date or apartment number the contract has been declared “null & void”.

The judge in this instance has ordered Anfi to return to the English client over £10,192 plus interest, they will also receive back all their legal fees.

In another victory this time against Club Class (Great British Marketing SL), the Court of the 1st Instance of Arona in Tenerife, 12 October,  has ordered the repayment of 13,722€ plus interest. The contract has also been declared “null & void”.

On 13 October CLA announced their 24th Supreme Court victory, once again it was against Anfi.              

In this ruling the court ordered the return of 49,791€ plus interest and the return of all legal fees, they also ruled that the contract was “null & void”. Again the court reiterated its stance on the selling of “Floating Weeks” by any timeshare company as illegal. The criteria they used was that these weeks do not have a date for use or have an apartment number allocated, thereby the client is not guaranteed the holiday as they are subject to availability.

Then on Thursday 13 October, it was also announced that Resort Properties / Silverpoint must return over 20,000€ including interest and legal fees. The judge at the Court of 1st Instance Number 5, in Tenerife also declared that the contract was also “null & void” in accordance with all the Supreme Court rulings. So now the courts in Tenerife are following the judgements of the highest court in Spain.

Inside Timeshare has also had enquiries from Anfi members who have said that Anfi are contacting them and denying any court rulings having been made against them. They have even stated that no buyout by Lopesan has taken place, all this even after being plastered all over the Spanish and European press.

It must also be asked why the trade body the RDO is also taking the same stance as Anfi in regards to Supreme Court rulings?

As a trade body, they do have a duty to their members, but they also have a duty to the owners of their members products, ensuring that all laws and regulations are complied with. If the RDO had sanctioned their members in the past for disregarding the rules, then somehow I don’t think we would have the situation we see today.

So it is congratulations to the clients and the legal teams who worked so hard to achieve these results for their clients. With still over 100 cases waiting to be heard at the Supreme Court, we will see even more cases such as these in the coming months.

If you have any questions about this or any other article published, Inside Timeshare will be pleased to help. Contact us through the comments section and we will get back to you. Have a good weekend.

The post What a Week for CLA and Their Clients! appeared first on Inside Timeshare.

Last week the Orlando Sentinel published a story that Marriott Vacation Club and First American Title Co. the trustee for Marriotts, are facing a class action lawsuit which alleges racketeering.

It involves their points system which they started in 2010, to replace the traditional weeks system, which is governed by real estate law. The suit filed by Anthony and Beth Lennen claim they had to pay fees associated with real estate, such as closing costs and recording fees, title policy premiums and real estate taxes.

They also claim they were forced to purchased title insurance. First America claim that the Lennens purchased this insurance of their own volition, they have also filed their own 27 page motion to have the case dismissed.

Marriotts attorney has also filed a 50 page reply to the lawsuit, and claims that the plaintiffs have misread the statutes they believe have been violated. He also states that the allegations are unfounded and the Marriott system complies fully with the law. Marriott are also seeking to have the dispute transferred to a state regulator to be reviewed, Greg Crist of the NTOA said he would welcome a review of the allegations by a state regulator.

The term racketeering is usually associated with organised crime, so these allegations are very serious indeed, especially as Marriott do have a reputation as one of the good guys in the timeshare industry, especially in Europe.

Inside Timeshare’s American colleague Irene Parker wrote the following:

Timeshare and the Definition of Racketeering

October 14, 2016

By Irene Parker    

The Orlando Sentinel yesterday reported on the proposed class action lawsuit against Marriott charging racketeering. The charges stem from a lawsuit that began May of this year claiming Marriott charges fees associated with real estate without actually owning real estate.

The charge of racketeering is intriguing. According to Investopedia, racketeering is often associated with organized crime. The example used described a group of people slashing tires in a neighborhood only to have a second group, composed of members from the first group, sell protection.

There is a clear parallel to trends in timeshare. Timeshare used to be real estate when “fixed weeks” were sold. The trend towards a points based “currency” has led to cloudy definitions as to what a timeshare really is these days.

Timeshare contracts are perpetual, meaning they are designed to extend beyond the owner’s lifetime. Contracts in perpetuity are not in essence bad, according to timeshare attorney Mike Finn of the Finn Law Group. “Perpetuity can apply to real estate or personalty. Personalty simply means personal property – something as simple as a new shirt. A primary residence or vacation home is a perpetual contract. By definition, there’s nothing wrong with that. The problem comes about in timeshare when no secondary market exists.”

This leads us back to the definition of racketeering. There is a wide assortment of timeshare scams. The practice has become so widespread, Wyndham actually provides owners with a “Scambuster’s Hotline”.

Timeshare transfer agents charge timeshare owners seeking a way out of a timeshare contract an upfront fee offering them a form of “protection” by releasing owners from timeshare contracts. The fee often ranges from $3500 to $7000 but provides a “guaranteed deed-back” of the timeshare. Transfer agent companies often have lofty sounding names like “Redemption and Release”.

What happens to the timeshare after it is transferred out of the owner’s name? The contracts are bundled 25 to 50 and sold back to developers. Some timeshare companies offer owners voluntary surrender, but the surrender is not guaranteed so owners denied are forced into the nets of transfer agents.

In an ironic twist of fate, there are double racketeering schemes in which the deed taken back is transferred to a dummy company that disappears. Thus, the timeshare resort rightfully does not honor the transfer and the surprised owner receives an invoice for maintenance fees because the transfer did not take place. The owner is out thousands of dollars while still owning the timeshare. At least in racketeering, real protection is given. It’s a sad day when timeshare becomes less honorable than racketeering.

For the original article published in the Orlando Sentinel follow the link:

http://www.orlandosentinel.com/business/brinkmann-on-business/os-marriott-timeshare-racketeering-20161013-story.html

If you have any questions or need any information about any article published, contact Inside Timeshare and we will try to answer them.

The post Marriotts Face Charges of Racketeering. appeared first on Inside Timeshare.

Last week ended with another ruling from the Supreme Court, this week has seen yet another, bringing the total to 25. This is unprecedented in the Spanish Legal system, the latest is once again against Anfi, bringing the total against this one timeshare operator to 20 rulings in favour of the purchasers of their product.

The latest victory for the clients of Canarian Legal Alliance have had their contract declared “null & void”, with Anfi being ordered to repay 29,544€ including legal fees and interest.

Then at the High Court number 2 of Las Palmas, another CLA client will receive back over 25,460€ including interest and legal fees. In this instance the court made its decision on the basis of the Supreme Court rulings declaring that “floating” weeks are illegal. This is yet another bow for the resort Anfi.

These cases and the previous ones have been highlighted in 2 Spanish newspapers, El Diario and Maspalomas Ahora. They explain that since the start of this year, Anfi have had to repay 1.5 million euros to purchaser of their products, with 1 million having been paid out so far. This is for just 50 cases brought this year and that figure is estimated to be around the 8 million euro mark with the 200 active cases CLA have in the courts. With 300 claims waiting to be filed this sum will be around 20 million Euros

So far Canarian Legal Alliance has won around 120 cases against Anfi, with many more against other timeshare operators. So the question must again be asked why do Anfi the RDO and other companies still maintain that the decisions by the judges at the Supreme Court are in error?

Anfi themselves are still trying to deceive their own members by telling them that there are no cases against them, that they have not lost and that the buyout of the 50% Lyng share by Lopesan has not happened. Not only do they deny selling illegal products and peddling lies to their customers, but they are also insinuating that the news media are also telling lies. It is unfortunate that some owners are actually believing this, not realising it is a continuation of the misinformation they received when purchasing originally.

Along with all the investigations into the Tauro Beach project, which has taken another twist, with the Mayor of Mogan now under investigation for granting a licence which had apparently expired, (new article on this coming soon), these court rulings are certainly eating into the reputation of Anfi.

http://www.eldiario.es/canariasahora/tribunales/Anfi-condenas-Supremo-contratos-timesharing_0_566594345.html

http://maspalomasahora.com/not/38882/el-grupo-anfi-acumula-en-2016-condenas-por-valor-de-1-5-millones-de-euros-por-irregularidades-en-el-timesharing-/

Once again it is congratulations to the clients and the whole CLA team for these results, the champagne corks will certainly be pooping. If you require any information about this or any other article, contact Inside Timeshare and we will be pleased to help.

The post Twenty Five Supreme Court Rulings and Rising. appeared first on Inside Timeshare.

Continuing on from the article published on 7 October, regarding the first prosecution of the head of the coastal authority, Nueva Canarias Mogan issued another twist.

It now looks like the Mayor of Mogan, Onalia Bueno is now under investigation for granting a licence which apparently had expired. It now looks as if unlawful acts have been committed in the execution of the regeneration work at Tauro Beach. This work is being carried out for the Anfi Group, who have plans to build new hotels and a shopping mall as well as a marina with around 500 berths.

We know that the local residents have bore the brunt of the problems, with homes being flooded by the tides back in August. They have also lodged formal complaints with the Guardia Civil in respect of the damage caused.

This whole project to create a manmade beach, does appear to have been beset with what might be called irregular procedures, the granting of licences after the work had started and falsifying documents after the fact. It was the Guardia Civil Nature Protection Unit (SEPRONA), who originally instigated the investigation and made this public.

It would seem that this is only the tip of the iceberg, with possibly more prosecutions to come as the investigation progresses. Inside Timeshare will keep you posted as this story develops.

https://www.facebook.com/Nueva-Canarias-Mog%C3%A1n-185892306754/?fref=nf

http://insidetimeshare.com/first-prosecution-tauro-beach-project-filed/

The post Mayor of Mogan Under Investigation into the Anfi Tauro Beach Project. appeared first on Inside Timeshare.

For many timeshare owners the belief is that the trustees who hold their ownership in trust are independent, but this does not appear to be the case.

Information is coming to Inside Timeshare from various sources and our own research, which show there is a possible conflict of interest between one major trustee and the resorts management companies. If this is indeed the case, then there is no independence, the trustees are part of the industry and a conflict of interest does actually exist.

One example is the Alanda Club Marbella SL, one of the directors is Phillip Broomhead, who also happens to be a director at FNTC (First National Trust Company). (see pdf links) This club is also part of the Alanda Group of companies which the ONA Group acquired around 2011.

alanda-club-marbella-sl_-datos-identificativos-y-financieros-_-infoempresa

alanda-club-marbella-sl_-identifying-and-financial-data-_-infoempresa

So, when the ONA Group acquired Wimpen, the FNTC would have been duty bound to have advised the owners of the fact that a ”conflict of Interest” had now arisen. With this particular link it does appear that FNTC were no longer “independent trustees”.

To the Wimpen owners, it appears that Phillip Broomhead is the link between Wimpen and the ONA Group. The owners committee, from information received wanted a transfer of Trusteeship to another company Hutchinsons, but it appears that FNTC refused to transfer this. This does beg the question, is it because the FNTC do have a “Conflict of Interest”?

One source also passed on some of their own research, this led to the “Panama Papers” where they found that the owning companies of their club weeks were: FNTC First Nominee and Second Nominee.

FNTC First Nominee Ltd is also listed as a shareholder of Regency International Services Ltd, alongside Mossack Fonseca with the intermediary being First Names Group. As we know the Regency Palace Hotel and Club had to close down for tax reasons, with Luis Comacho being prosecuted for failing to hand over more than 15 Million Euros to the Portugese tax authorities. He has also been barred from holding any directorships.

The trustees who hold the owners weeks are FNTC, it is alleged that they were either ignorant of the fact or even complicit in the events which befell this hotel. Apparently many owners have been met with a wall of silence and have not received any help when contacting FNTC. How many of these owners have lost all their rights?

FNTC also have an involvement with Club Jardine del Puerto in Puerto Banus, with many problems befalling the owners at this resort. This particular resort has caused the owners many, many years of grief, it was also the subject of an investigation by the late Sandy Grey.

One incident is when the founding members tried to stop an AGM, with Phillip Broomhead of the FNTC representing the founding members, claimed that the AGM was illegal. This followed the move by Declan Kenny also of FNTC, to persuade the club to sell back around 650 weeks to one of his suggested enterprises. FNTC also backed the sale of weeks as “floating” and as we know under Ley 42/98 of the Spanish Timeshare Act, these weeks are illegal. This has been verified on several occasions by the Spanish Supreme Court in Madrid, the highest court in the land!

It must also be pointed out that the present CEO of the RDO is one Paul Gardner Bougaard, who was also once a director of FNTC. FNTC are also an RDO member and therefore should be subject to the code of conduct and ethics. Somehow this does not look like the case.

So the question of independence of the trustees from the industry, does look very dubious indeed, it is up to you the reader to decide. But do bare in mind this is the first of many articles on this subject, as more information comes to light through research and information received it will be published here.

If you have any information on this article or any timeshare matter or have any questions, contact us through the contacts section.

The post Trustees: Independent or Part of the Problem? appeared first on Inside Timeshare.

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

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

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

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

Barclay card by Irene Parker 10/24/16

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Arthur Saldana became so angry, he left the presentation.

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

Thanks to the contract clause protecting Diamond Resorts International from oral representations made by a salesperson, if the Saldanas had agreed to the additional 10,000 points, they would have gone further into debt with little recourse. The Saldanas have a daughter who just graduated from high school and has started college.

In May, Sylvia Saldana contacted a member of the Licensed Timeshare Resale Broker Association and asked if they could sell the Diamond Resorts International points and was told that her only option was to surrender her membership, as there is no resale value.

Surrenders aren’t guaranteed, but according to a TUG Timeshare Users Group posting, Diamond Resorts International is accepting 93% of surrender requests.

The Saldanas contacted California attorney Eric Ridley, who has had prior experience with Diamond Resorts International.

Ridley had filed a lawsuit on behalf of Louis Wolff, 81, against Diamond Resorts International on March 8 in California Superior Court. In this case, sales agents were accused of opening and charging $50,000 worth of Diamond Resorts International vacation interests on credit cards opened in Wolff’s name.

“We have in place a strict set of sales policies and practices aimed at protecting the consumer that are in line with industry best practices,” said Frank Acito, vice president of investor relations and financial planning at Diamond Resorts International, according to an 8-K filing with the Securities and Exchange Commission on Jan. 25. “Our company has a zero-tolerance policy for any member of the sales team who does not follow protocol.”

But Diamond Resorts International sends buses to seniors’ communities to take them to Nevada, Ridley said.

And once the company gets hold of a name, there will be a nonstop barrage of phone calls, he said, adding that is what happened to Wolff, as stated in the lawsuit.

There is a reason that banks don’t allow borrowers buying a house to borrow or charge a down payment. It has to do with the creditworthiness of the borrower as well as suitability. If an individual doesn’t have money to pay for the down payment on a house, that person shouldn’t be buying it.

The Saldana family ended up surrendering their Diamond points. Without a secondary market, the family is left with the $33,000 home equity loan after purchasing approximately $60,000 worth of points.

Sylvia Saldana wanted to share their story to warn other people to do their homework before buying any timeshare.  

The Diamond Resorts International Barclaycard ranked 15th of 16 travel-related credit cards offered by Barclays, according to a 2015 Frugal Travel Guy ranking. Of the 16, three are timeshare credit cards, and Wyndham Worldwide credit cards ranked fourth and sixth on the list.

Timeshare lending is commonplace in the U.K. as well.

“In order to finance the purchase of a timeshare product, the vacationer is asked to enter into a loan agreement with Barclays Partner Finance. Attendees leave a sales meeting with either points or timeshare weeks entering into an agreement with Clydesdale Financial Services Limited trading as Barclays Partner Finance,” according to blog Inside Timeshare.

One of the reasons that U.K. banks ran into trouble was because of urging people to take out “home improvement loans.” “Pre-arranged lending is arranged through Barclays Partner Finance,” according to Inside Timeshare.

The Consumer Financial Protection Bureau is investigating timeshare company Westgate Resorts. Westgate Resorts challenged the CFPB on jurisdiction, saying that the bureau is overreaching because sales and marketing aren’t part of the lending process. The CFPB denied the petition.

But the Saldanas would argue that sales and marketing are clearly part of the lending process.

We are a charge-it society. But there is no vacation in the world worth taking at 18% interest.

As Tom Tubbs, a LTRBA member from Island Consulting Realty in Sarasota, Fla., said, “More than a few calls to our office begin with, ‘My parents got roped into this timeshare.’

Link to previous article.

http://insidetimeshare.com/shawbrook-bank-announce-irregularities-timeshare-loans-similar-activities-usa/

Inside Timeshare would like to thank Irene for her article, we hope to publish more of Irene´s insights into the timeshare world from across the pond.

If you have any questions or need any advice on any article or timeshare matter, Inside Timeshare will be please to help. You can use the comments section to make contact, and we will get back to you.

The post Irene Parker: Barclay Card and Timeshare in the USA. appeared first on Inside Timeshare.

Last week ended with another Supreme Court ruling bringing the total now to 25. This particular judgement was against Palm Oasis which is in Maspalomas in Gran Canaria, it followed other rulings that contracts in perpetuity in other words over 50 year are illegal. The German client in this case will be receiving back over 10,000€ as well as his contract being declared null and void.

At the start of this week Canarian Legal Alliance also announced that another of their clients, again a German timeshare owner will receive 19,163€. This sum has now been paid into the court and the client will shortly be paid out. His contract has also been declared null and void.

This particular sentence was made by Court number 3 of the First Instance in Arona Tenerife against Resort Properties / Silverpoint. It followed previous Supreme Court Judgements, so it is clear that the lower courts are abiding by the rulings of the highest court in Spain. This does show that the years of painstaking work by the legal team at CLA is paying off for their clients.

The strange thing is, timeshare companies, the RDO and TATOC are still denying the fact that this is happening. They still believe their own propaganda that there are no cases, the Supreme Court has got it wrong and that owners should not listen to or believe what they hear and read.

Could this be they are afraid that their jobs might just be in jeopardy, that they are losing all credibility as an industry with consumers?

MONEY MONEY MONDAY!

On another note it also appears that members of Diamond are up in arms again, Inside Timeshare has received information that maintenance fees for the coming year are rising yet again. At first the news was that they were set to rise by around 18% but that figure has been lowered to around 13%.

According to Diamond the increase is due to the devaluation of the pound against the euro following the Brexit referendum. They also state according to our sources that they also have to pay for the points they own, so it affects their business as well. Little comfort to the members who have suffered increases year on year.

The explanation on how they arrived at the 13% figure is rather vague and does not make sense to those of us who are not accountants. According to the information given the budget for 2016 was £1 to 1.35€ i.e. a euro is 74 pence, for 2017 £1 to 1.15€ or 1 euro is 84 pence, so that is 17.5% difference. They then explain that as not all expenditure is in euros or only 60% this brings the actual increase to 13%.

We don’t know about you, but it sounds like a bit of accounting flannel designed to confuse. The question now must be asked if the pound gets stronger will the maintenance fees go down? Somehow we think not.

If you have any questions about these topics or any other timeshare matter, whether it is about companies you may be thinking of dealing with or have dealt with, Inside Timeshare will try to answer them for you. Contact can be made through the comments section.

The post Legal Updates and Other News appeared first on Inside Timeshare.

Since publishing the article TESS Vs The Monster back in August, there have been some new developments and Inside Timeshare has received enquiries from concerned consumers about the latest posts on the TCA website concerning the law firm Athena Law.

On 24 October the TCA published that Athena Law was under investigation regarding “leaked personal contact details of members of the MRL Action Group”. The article does not state who is carrying out the investigation, which if it was official would this not have been made clear which authority is involved.

According to the TCA and they state they have proof, the leaked database of around 200 MRL Action Group members contains details such as:

Names, addresses, email addresses, home and mobile numbers, MacDonalds membership details such as ownership, week numbers and prices paid.

According to TCA they have received a “string of complaints” from MacDonalds owners who have signed up to the MRL Action Group, paying “hundreds of pounds” and receiving nothing but “empty promises of compensation”.

Now Athena Law is a registered law firm with all the lawyers being registered with the Solicitors Regulation Authority. But the main person under attack is Stephen Boyd, who as we know restarted the TCA after the passing of Sandy Grey, along with David Cox of TESS. TESS themselves are also locked in battle with the TCA, this all started when the TCA came under the control of Mark Rowe, who is also the director behind a string of companies including Monster Travel Group.

The question is, why would a registered lawyer with a registered law firm put themselves in the position of being disbarred by leaking such information?

We know that Athena Law and TESS did work with the TCA before the change in ownership, that TESS has published articles about Monster, which were scathing to say the least, including a transcript of a Monster presentation. This transcript say TESS is taken from a recording made by a client at one of these presentations, they also stated it was transcribed by the Ministry of Justice.

TCA also states that TESS is under investigation for commercial malpractice, again no mention of which authority is conducting this. They also state that “One of their suppliers alleges it paid TESS over £1,000,000 last year and received a shoddy service:”  Now one has to question that particular amount and what the “shoddy service” was, considering they say “SUPPLIERS”. Also they allege that many owners were promised an exit but are still receiving maintenance bills and threats of legal action for arrears. It must also be pointed out that TESS did take on clients who had signed up with Monster Leisure Credits in order to relinquish their timeshares, this in itself is not unusual as many companies will “farm out” these services to others.

Once again it is you the consumer who is going to suffer the consequences of all this, a once reputable association is losing all credibility as an independent voice. Who are you now going to believe?

Sandy Grey must surely be turning in his grave!

http://insidetimeshare.com/tess-vs-monster/

Athena Law Solicitors under investigation for serious data breach

If you have any questions or require any help in deciding who to trust, Inside Timeshare will show you how to research them yourself. Inside Timeshare exists to give you the facts which will then enable you to make an informed choice. Use the comments section to make contact, we will then send you a personal email with the information you require.

The post TCA, TESS and Athena Law Locked in Conflict. appeared first on Inside Timeshare.

With the US Presidential election now coming to a close over the next week, Irene Parker, who collaborates with Inside Timeshare on matters which affect timeshare on both side of the Great Lake (or Pond as our American friends call it), has sent in her most recent article.

It very much focuses on the political game that is affecting timeshare in the US, showing how it splits into Republican and Democrat, as she explained, the industry is very much pro Republican, the Trump camp, the Democrats seem to be supported by the timeshare owners. We should not be surprised by this.

Irene has very often commented on the documentary “The Queen Of Versailles”, the wife of the owner of Westgate, David Siegel. It shows the 90,000sq ft property they have been building as their home. It is quite staggering, with a walk in wardrobe (sorry closet), bigger that most homes in Europe. Irene has in many writings dubbed herself “The Peasant of Venice” in contrast to The Queen. Have to admit Irene does have a great sense of humour. Irene claims it’s not humour if one studies Polish and Russian history and the need for peasant uprisings.

Irene opens her article on the New York Manhattan Club, when the Democratic New York Attorney General Eric Schneiderman halted trading of timeshare. As you will see from her article, it is a very murky world indeed, the lines between timeshare and politics are blurred to say the least. Enjoy her article it reveals a lot.

Timeshare Battles Split Down Political Party Lines

October 26, 2016

By Irene Parker submitted to Orlando Sentinel

Democratic New York Attorney General Eric Schneiderman made headlines taking on presidential candidate Donald Trump and the Trump Foundation. Mr. Schneiderman claimed the Foundation did not meet certain administrative requirements necessary to receive donations in New York.

In addition to challenging Trump, Mr. Schneiderman has also taken on another developer and billionaire, Bruce Eichner, and Eichner’s Manhattan Club timeshare. Mr. Schneiderman halted timeshare sales at the Manhattan Club due to allegedly fraudulent sales practices involving a “bait and switch” scheme. Manhattan Club buyers learned there was a lack of availability for those who purchased memberships, while the general public could easily book online. A court battle that began in 2014 continues today.

The New York Post unleashed an onslaught of criticisms against Mr. Schneiderman accusing him of picking his fights based on political motives.

Republican Florida Attorney General Pam Bondi created her own headlines when she accepted a $25,000 donation from Donald Trump while considering whether to participate in a Trump University investigation. Her investigation was dropped after receiving the donation.

There is an eerie similarity between Trump U and timeshare sales, illustrated in an extraordinary CNN interview between Trump U salesperson James Harris and CNN investigative reporter Drew Griffin. Not all timeshare sales agents are predatory, but complaints about overly aggressive sales tactics abound.

In the CNN interview, Harris is accused of exploiting the elderly by selling them classes averaging $34,000 and then “up selling” them to attend more classes. In rogue timeshare presentations, an average timeshare week costs $25,000 and after the initial purchase, owners are barraged to purchase additional points or weeks.

Republican lawmakers Rep. Eric Eisnaugle, R-Orlando, and state Sen. Kelli Stargel, R-Lakeland sponsored timeshare legislation that went into effect July 1 2015 making several technical changes to the Florida Vacation Plan and Timesharing Act.

The bills sparked outrage among timeshare owners and advocates claiming it made it more difficult for owners to be released from perpetual contracts signed after hours long hard sell sales presentations. The most onerous change objected to is the clause that states developers are not responsible for “non-material” errors in timeshare contracts. Stargel and Eisnaugle say the changes will stop what developers call “frivolous lawsuits”.

The timeshare lobby organization American Resort Development Association ARDA supported the Florida legislation. According to ARDA, “Consumers can challenge a developer’s position with Florida’s Department of Business and Professional Regulation (DBPR), the state agency that regulates timeshare. In every case, DBPR’s mission is to protect the interests of timeshare consumers.”

Timeshare attorney Mike Finn of the Finn Law Group does not hold out much hope for owners pursuing this course. According to Mr. Finn, only 110 out of 2,360 complaints filed with the Florida’s DBPR Timeshare Division between April 2014 and April 2016 were acted on.

“Perpetual contracts are not in themselves bad. Whether you buy a home or a shirt, the contract is perpetual. The difference is the lack of a secondary market for some timeshare owners and a very limited resale value for some, if not all, timeshares,” Finn explained.

ARDA donated $5,000 to Eisnaugle’s Committee for Justice and Economic Freedom PAC, more than $300,000 to the Republican Party of Florida and about $150,000 to the state’s Democratic Party, resulting in a net $150,000 donation to the Republican Party of Florida, according to the  Orlando Sentinel.

ARDA maintains Pam Bondi is firmly on the side of the timeshare owner. According to ARDA, “In the past six months, the industry has seen the passage of landmark timeshare resales legislation (thank you to Attorney General Bondi and her staff), dozens of investigations and arrests made by DACS related to timeshare resales fraud.”

“Along the same lines, expect increased educational efforts to come from the state and the industry that will put consumers in a better position to make good decisions about how they sell their timeshare interests.”

My husband and I are Diamond Resorts timeshare owners. We are unable to sell our timeshare due to restrictions the developer has placed on the use of vacation points purchased on the secondary market – restrictions considered more onerous than most timeshare company restrictions. Members of the Licensed Timeshare Resale Broker Association refuse to buy or sell Diamond Resort points.

As for the Manhattan Club investigation, “The investigation is proceeding,” said New York attorney Douglas Wasser. Mr. Wasser represents 29 members of the Manhattan Club. The Manhattan Club appealed a ruling from a lower court in which the defendants were denied their request to conclude the investigation and also appealed the decision to allow depositions. “Attorney General Schneiderman’s investigation does not stop because of the appeals”, said Mr. Wasser.

I asked Greg Crist, CEO of the National Timeshare Owners Association NTOA if he holds out any hope for an industry that seems to be creating more and more disgruntled owners.

“Some of the best companies that operate in the timeshare industry are Disney, Hyatt, Marriott, Starwood, and Hilton. These are the leaders who set the bar higher with regard to standards and a culture imported from the hospitality side of their businesses. Although the trends seem to indicate the pure timeshare companies are making gains in terms of customer satisfaction and delivery on the sales promise, surveys continue to show they have a way to go to catch up to branded hospitality companies overall.” Crist said.

Sadly, timeshare seems to have been split down party lines. Timeshare sustainability is in question if the industry has been reduced to a political contest between timeshare owners and developers. What industry can hope to survive when customer relations is often a battlefield mired with controversy.

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-court-order-barring-sales-manhattan-club-timeshare-hotel

https://www.facebook.com/permalink.php?story_fbid=931542846939113&id=652095808217153

http://www.cnbc.com/2014/11/20/luxury-time-share-probe-in-manhattan.html?trknav=homestack%3Atopnews%3A10

http://www.orlandosentinel.com/news/taking-names-scott-maxwell/os-gov-rick-scott-signs-bad-timeshare-law-20150617-post.html

http://www.ardaroc.org/uploadedFiles/ARDA-ROC/About_ARDA-Roc/Arda-Roc_Updates/06-01-15%20-%20Timesharing%20Today%20-%20FL%20HB%20453%20-%20FINAL.pdf

https://www.rawstory.com/2016/07/cnn-reporter-hammers-trump-u-instructor-is-that-called-ripping-off-an-old-couple/

http://www.orlandosentinel.com/opinion/os-florida-timeshare-tactics-scott-maxwell-20150411-column.html

Inside Timeshare would like to thank Irene Parker for her insights into this strange world of timeshare and politics, it certainly looks as if the two are linked and that just like politics, timeshare is split into two camps, the developer and the consumer. This is very much the same as in Europe, the industry versus the consumer, with the might of industry lobbying the politicians for regulations that suit them. Somehow there needs to be change, at least this is happening in Spain, with the laws very much in favour of the consumer, regulating the industry as to how the product is sold.

If you have any questions or need any information on any article published, or just want to know how to check out any company, Inside Timeshare is here to help.

The post More News from Across the Pond appeared first on Inside Timeshare.

So here we are the end of another month, we started October with news of a Supreme Court ruling which stated that “Fractional” was indeed timeshare. In this instance Puerto Calma, Holiday Club Finland was ordered to repay over £235,542.00 as they had sold it as an investment.

Then Inside Timeshare reported the news of the first prosecution in the ongoing Anfi Tauro Beach Project.  The former head of the Canarian Coastal Authority José Maria Hernandez has been charged with administrative malfeasance (wrongdoing in public office) and forgery of official documents. The prosecutor Javier Ródenas considers that Hernandez verbally authorised the works despite warnings of serious breaches then committed an act of forgery by drafting a document which was then signed by him in April. This document gave the impression that it was written in February when the work actually commenced.

We then published an article from Gran Canaria Info which explained recent developments into the going on at Anfi.

http://gran-canaria-info.com/content/timeshare-law/anfi-del-mar-and-the-future-of-gran-canaria-timeshare-in-2017

This online publication is a great source of information to the expat community and visitors in Gran Canaria, it often publishes in English, news from the Spanish press.

Moving on from timeshare matters in Europe we published a piece by Greg Crist, the CEO of NTOA (National Timeshare Owners Association) in the USA. He explained about a timeshare donation scheme which had recently been slammed by a US Federal Judge. In this scheme, owners donated their timeshares, which were valued at high amounts and then received tax relief as charitable donations. The scheme has cost the tax man around $19.4 million.

http://insidetimeshare.com/u-s-federal-judge-slams-timeshare-donation-scheme/

Greg again sent over information on what was happening across the pond, with the article about combating fraud. It was very much a month of information from the USA with articles from the Orlando Sentinel and Irene Parker on Marriott facing charges of “Racketeering”.

Irene Parker submitted another article, this time on how Barclaycards are being issued by timeshare sales staff. Irene was comparing this to the scandal of finance being arranged by sales staff in Europe without the normal due diligence being carried out. We finished the US theme with Irene´s article on timeshare and politics and how it is split between the two political camps.

The Anfi Tauro Beach project again hit the headlines with the news that the current Mayor of Mogan, Onalia Bueno has been place under investigation for licences and permissions for the project. This followed on from the first prosecution and is still underway.

Also published was an article on Trustees in the timeshare industry and whether they are independent or not. This article was prompted by several enquiries from readers, with some of the content supplied by them. We also published the ongoing battle between the TCA, now under the control of Monster, with TESS. It now also involves a law firm Athena Law, who the TCA state are under “investigation”, by who was not revealed, Obviously an ongoing story.

So to finish the month, Canarian Legal Alliance announced another two Supreme Court victories on behalf of their clients. In the first to be announced on 26 October, their client will receive 11,806€ and their contract declared null and void. Again the court reaffirmed its position that floating weeks are illegal, this case was against Anfi.

In the second announcement made on Thursday 27 October,another Supreme Court ruling, again against Anfi. In this ruling the client has been awarded 19,000€ and again the judgement was about floating weeks. The contract was also declared null and void. This now brings the total of ruling from the Supreme Court in respect of timeshare contracts to a staggering 27, with more still waiting to be heard, so there is more of this to come.

Just as we were about to publish news came in of yet another victory at the Supreme Court in Madrid, this brings the total number of rulings from the highest court in Spain to a phenomenal 28, you can’t argue that this particular law firm is not doing what is says.

The latest ruling this time involves another resort, Palm Oasis / Tasolan, the court ruled the client was not provided with all the information required by law, this resulted in the court ruling that the contract was flawed. In this instance the contract was declared null & void with the client being awarded 10,608€ plus legal interest. It would seem the courts in Spain at least, are on the side of the consumer, it only now needs other countries to follow that example.

It now remains to see what November will bring, if it is like this month it certainly will keep Inside Timeshare Busy. Have a good Halloween night and enjoy the party.

The post My Thought Today: End of October appeared first on Inside Timeshare.

On Monday 24 October BBC Scotland broadcast an investigation into the problems people have in getting out of their timeshare, especially the elderly.

It highlighted an elderly retired couple from Scotland who purchased their timeshares from a company that is now owned by MacDonald Resorts and Hotels. The company is now owned 50% by HBOS Group (Bank of Scotland and Halifax, part of the Lloyds Banking Group) and 50% by Donald MacDonald. They originally purchased at the Dona Lola Club in Spain, when their children were young. But as we have seen on many occasions, ill health prevents them from travelling, especially abroad, because of the problem of the increasing cost of travel insurance.

They have been trying to “relinquish” their contract for around two years, but the resort management, MacDonalds, want them to pay over £3000 to relinquish their two weeks. Even after they have paid their maintenance every year since purchasing. They are still trying to negotiate with MacDonalds, but are still paying £1600 maintenance each year.

This is not a new story to Inside Timeshare, we have the story of Mrs B, who used another company to “get rid” of her timeshare at Dona Lola, she is 83 and also in ill health and unable to travel. Like many others she paid her maintenance every year without fail, even though for the past ten years has never used it, Mrs B and her sister could not even travel to any of the UK resorts.

When she eventually paid another company to get rid of it for her the trouble started. Inside Timeshare has copies of the documents that show her timeshare has been transferred to another person, but MacDonalds refuse to accept this and say she owes maintenance. They have even instructed a debt collection agency, Network Credit Services, to chase for the the £1412.54 they say she owes. She has already received a final demand to pay within 7 days or face court action.

Inside Timeshare has helped her to formulate an official complaint to the Financial Ombudsman Service to try and resolve the matter. This is still underway, yet it is that time of year when new maintenance bills will be falling on the door mat.

MacDonalds stated in the programme:  “We’ve been widely praised for pioneering the introduction of a practical exit mechanism for owners. In fact, 90% of resort owners voted in favour of amending their resorts’ constitutions to formally adopt these fair and reasonable proposals”.

Well the proposal to be able to get out was not what you could call fair, it required at least 4 years payment of maintenance and was limited to every 2 years with first come first served.

In the next comment MacDonalds also stated: “However, it would clearly be detrimental to the upkeep of the resorts and unfair on the remaining resort owners if people were allowed to walk away from their contractual and legal obligations without some form of reasonable recompense which allows for the quality of facilities at the resorts to be maintained for future generations”.

This last statement clearly shows that MacDonalds are not interested in the owners apart from the continued collection of fees. So what is the reason for this statement?

It is quite simple, MacDonalds are a management company employed by the resorts, to run, maintain and collect the management fees. They actually own no property, like most of these large companies, i.e Diamond and Diversified. In the past MacDonalds with the backing of TATOC, changed the members from fixed weeks to a points system, when doing this they effectively took control of the resorts. By taking over the fixed weeks, MacDonalds become responsible for the maintenance fees on those weeks, with you the points owners paying a hefty increase in your charges.

By allowing people to hand back their ownership, with no prospect of new clients purchasing what is now a very expensive way to holiday, it will cost them. After all MacDonalds does not want to use their own money.

Another point to the broadcast was the problem of using other companies with their promises of “resale”. One company interviewed was one Inside Timeshare has highlighted in past articles, Sellmytimeshare.tv and Monster.

The BBC sent an undercover reporter, Fergus Muirhead, he contacted Sellmytimeshare.tv about getting rid of his mothers timeshare. Over the phone he was given a valuation of £9,400 with an invitation to meet with the company face to face.

He stated that it was obvious that they had no intention of paying him that amount from the outset of the meeting, with Sellmytimeshare telling him “We can’t sell the timeshare because no one’s buying them so we certainly can’t get that money back for her.”

He was then given by the advisor a series of figures, which had to be paid upfront on the day, this was for thousands of pounds. He was told he would be given “credits” could be used as part payment for goods or even be sold.

Fergus stated that if he held them for 14 months, he could sell these credits for £17,216, which covered the £9,400 and the £6,700 he was going to pay upfront. It was also not clear as to how the timeshare would be disposed of.

The programme also interviews Stephen Boyd a lawyer with experience of timeshare law, he is also a partner at Athena Law. He said he had around 300 clients and was in the process of instigating a legal action against Sellmytimeshare.tv and Monster Travel Group, the parent company.

He stated: “My clients were told by this company that they could get rid of their timeshare, but when they went to a meeting they had to buy another product and they were promised a financial return.

“They’ve also found that the promised financial return never materialised and in many cases they’re still liable for the maintenance fees of their timeshare.”

When asked for a reply the spokesperson for Monster said:  “Customers seeking advice from us about relinquishing their timeshares are informed of the options available through us and are free to choose what they consider best suits them”.

“One of those options includes the purchase of a Monster Rewards Bundle, which can be redeemed against an increasingly wide range of goods and services, including travel”.

Follow the link to the full article on BBC News.

http://www.bbc.com/news/uk-scotland-37690840

Recent Inside Timeshare articles.

http://insidetimeshare.com/tca-tess-athena-law-locked-conflict/

http://insidetimeshare.com/monster-credits-associated-companies-summary/

http://insidetimeshare.com/tess-vs-monster/

One thing is clear from all this, it is the owners of the timeshares who are suffering, not just from the timeshare companies but those who say they will sell them for you, only to sell you another product. Remember the Club Class and DWVC pitch, we will take your timeshare from you if you join our club, we will then give you a “Cashback” certificate for the value of the timeshare and the cost of joining. This was to last either 3 or 5 years, at which point you claimed from the cashback company supposedly the value on the certificate. Guess what, no one ever did and in most cases they still were liable for the maintenance fees.

Timeshares are not worth anything, they lose value the moment you purchase, even in the USA as we have seen from recent articles, they sell only for a fraction of the original cost if at all. So the warning here is do not believe it when you are told you timeshare is worth thousands, check out ebay, they can’t even give them away.

If you require any further information about this or any other matter, or need any help in finding out about any company you may be thinking of doing business with, Inside Timeshare will be pleased to help. Remember being forewarned is being forearmed.

The post BBC Scotland Investigates the Problems of Timeshare Contracts. appeared first on Inside Timeshare.

It was with great hilarity this morning that while searching the net as usual, for the latest news and blogs, Inside Timeshare came across the latest posting from the Timeshare Consumer Association. We say with hilarity for one simple reason, their opening line:

“Timeshare Consumer Association is pleased to announce another cutting-edge decision of the Supreme Court in elucidating and acknowledging the illegal practice operandi of Palm Oasis and many other resorts using much the same shameful tactics”.

To those unfamiliar with the goings on in the timeshare world, it would appear that they are trying to take credit for the Supreme Court rulings. This as we know is not true, there is only one law firm so far that has successfully brought these cases to the Supreme Court, Canarian Legal Alliance.

It all began around 6 years ago, with the Norwegian lady Mrs Grimsbo, who started action against Anfi, after the death of her husband. She found she could not get out of her contract and took advice from a lawyer in Arguineguin. Eventually the case went to the Supreme Court, they ruled in March 2015, that her contract was indeed illegal and flouted the timeshare law Ley 42/98.

Since then Canarian Legal Alliance has received a further 27 rulings from the highest court in Spain, this brings the total to a staggering 28. Inside Timeshare has also been informed they also have at least another 100 cases waiting to be heard by this court.

Surely, to avoid any misrepresentation of the facts, the article should have started with something like this:

Timeshare Consumer Association is pleased to announce another Supreme Court Victory brought by Canarian Legal Alliance.

To give credit to the people that actually did the job is the first priority in any piece of reporting.

Further down the article is also the following, which again gives the impression they are also responsible for bringing these cases and the cases at the lower courts.:

“We at TCA can confidently confirm that we have given advice that has lead to consumers successfully executing claims across a varied range of contrasting timeshare resorts”.

It is not clear how the TCA have helped consumers to successfully execute claims, there are only a handful of law firms doing this type of work in Spain, with one firm Inside Timeshare knows of, having had their first case in September, the result of that has not yet been published. Having spoken to a contact at CLA, the TCA have not to their knowledge introduced any clients to CLA.

As published in previous articles the TCA is now under the effective control of Mark Rowe of Monster Travel Group. This company was even the subject of a BBC Scotland investigation, which deemed their practices to say the least suspect. Is this now the proof that a once credible independent association is itself suspect?

Can any consumer have any faith in the “advice” this organisation gives?

Sandy Grey will definitely be turning in his grave and anyone who knew him or had ever worked with him will be horrified.

Inside Timeshare leaves these questions to be answered by you the reader. We know what our opinion is.

http://insidetimeshare.com/bbc-scotland-investigates-problems-timeshare-contracts/

http://insidetimeshare.com/tca-great-beginnings-infamy/

http://insidetimeshare.com/monster-credits-associated-companies-summary/

The post Are the TCA Trying to Take Credit for Others Actions? appeared first on Inside Timeshare.

Carrying on with our theme of news from across the “Great Lake”, Irene Parker has again sent her article which will be of interest to timeshare owners in Europe, especially those who own in the USA.

This article focuses on a new initiative by one of the largest timeshare concerns in the USA, Wyndham, which is based in Parsippanny New Jersey. It seems the company is going to be leading the way in providing a more accessible relinquishment program for owners. This could also pave the way for the demise of those unscrupulous companies that offer relinquishment or “guaranteed deed-back” and resale scams, which many owners in Europe are familiar with. These scams cost timeshare owners all over the world thousands of dollars, pounds and euros in upfront fees, these fees are being charged to beleaguered timeshare owners who are unable to keep up with the rapidly rising maintenance fees and assessments.

Unfortunately a relinquishment or “voluntary surrender” program does not help those owners who have outstanding loans or finance agreements, usually having succumbed to high interest payments on these loans, typically 14% to 18%. Inside Timeshare has published articles on these loans and the predatory practices of UK bank lending.

If the Wyndham model proves to be successful, could it pave the way for other timeshare companies to copy, saving  the industry from the bad image of holding prisoner elderly owners and those who can no longer afford the maintenance fees. Only time will tell.

Wyndham Launches “Ovation” Timeshare Surrender Program

By Irene Parker, October 27, 2016

Wyndham Vacation Ownership has been among timeshare industry pioneers in providing owners with comprehensive information about reselling and helping them exit timeshare units they no longer want to use.

The company’s exit program differs from many competitors in its detail and helpfulness. Many timeshare companies do not offer well-articulated policies. A number of them make it difficult to resell timeshare properties. That is reflected in the high number of units that timeshare owners continue to relinquish because of age or an inability to carry maintenance fee costs.

Wyndham Worldwide has been operating for 50 years. The company’s well-established names include Club Wyndham, WorldMark and Shell Vacations. In addition to timeshares, Wyndham Worldwide Corporation offers lodging and vacation exchange and rentals through RCI.

The company’s timeshare exit program, Ovation, offers a number of options for relinquishing a Wyndham timeshare with no fees, hidden costs or additional purchases required to participate. That differs from a number of timeshare companies and also from transfer and cancellation companies.

“Our goal is to help owners transition to the next phase of their life and reach as many owners as possible, before they are contacted by fraudulent companies,” said media contact Lori Ford. “The program offers various options based on individual ownership, eligibility and circumstance and we continue to see a strong owner response, with over 47,000 owner inquiries since its introduction.”

The timeshare industry has improved its reputation, but is still struggling to overcome years of questionable practices by a number of major operators, and some companies continue to make it difficult for timeshare owners to relinquish their shares in properties. The industry also continues to include unsavory practices among operators and companies that provide supporting services. Among the major issues:

Transfer agents offering beleaguered timeshare owners “guaranteed deed-backs” at a cost averaging $3,500 to $7,000, fraudulent listing agents offering to list your timeshare for an upfront ad fee only to disappear, callers claiming to have someone interested in your timeshare, bogus timeshare “renters” claiming to represent the timeshare developer.

Wyndham Vacation Ownership even offers their members a “Scambusters Hotline” providing owners with informational scam reports and updates along with a hotline to call if an owner suspects suspicious activity or feels they are being targeted.

Wyndham’s first buyback program, known as “Pathways“, came under intense scrutiny in that it was accused of being a scheme designed to get owners to buy more points. The one-sided contract, signed only by the timeshare owner, promised an “opportunity” to sell a timeshare back to Wyndham, if the owner purchased an additional 20% of the points they already owned.

Clearly, the “cottage industry” of timeshare scams developed because or the lack of a secondary market. The industry in general has been reluctant to face the issue of unwanted timeshares. I asked Gregory Crist, President of the National Timeshare Owners Association (NTOA) why is there such a disparity of opinion when it comes to consumer reviews of timeshare companies and especially timeshare resale programs.

“Until the timeshare industry supports a robust secondary timeshare market, we will continue to see an increase in predatory timeshare exit companies clamoring to take thousands of dollars from timeshare owners to get them released from their timeshare obligations. Until now, it has been difficult to get anyone’s attention,” said Crist.

Voluntary surrender programs leave owners with nothing. While no one should expect a timeshare to be a lucrative investment, legitimate resale programs do allow an owner to recoup, at best, fifteen percent of an owner’s overall investment. At least a secondary market allows a nominal dollar amount back to the timeshare share owner in an age where affordable vacation options abound outside of timeshare.

https://www.clubwyndham.com/cw/discover/scambusters-wyndham.page

https://www.clubwyndham.com/cw/discover/ovationbywyndham.page

http://www.thestate.com/news/business/article13846319.html

http://www.ntoassoc.com/

Inside Timeshare would like to thank Irene Parker for her article, it is very enlightening and will show owners here in Europe that there are some companies out there who are at least making a sensible effort. Inside Timeshare has published articles on one company which is renowned for not letting people out of there contracts, or if it does charges a hefty price for doing so.

http://insidetimeshare.com/mcdonald-resorts-no-stranger-bad-press/

http://insidetimeshare.com/bbc-scotland-investigates-problems-timeshare-contracts/

If you have any questions about this or any other article, Inside Timeshare contact Inside Timeshare and we will be pleased to help. If you require any information about any company you may be thinking of dealing with or just want to know how to find it, Contact us through the comments section, we will then contact you via personal email.

The post News From America: Wyndham Launches New Surrender Program. appeared first on Inside Timeshare.

Following on from yesterday’s article 1 November, on the TCA appearing to take credit for another company’s actions, today they posted a rather scathing report on Anfi.

Although Inside Timeshare agrees with the content of the post, that Anfi and other companies sales tactics can be on the aggressive side, it does make you wonder what their game is.

Much of the article explains sales tactics that were used in the past, from what Inside Timeshare has found out many have changed their style. Somehow, this article feels like it came from the past, with all that is going on with timeshare especially at Anfi, would Anfi allow their sales staff to act in this manner today?

So again the question is what is the TCA up to?

Could it be that the managing company under Mark Rowe is changing direction, after all just recently two of his companies have received not very favourable reports in the press. Most recently the BBC Scotland program aired on Monday 24 October, where the BBC sent an undercover reporter, Fergus Muirhead to investigate and record the meeting to sell his mother’s timeshare, set up by Sellmytimeshare.tv where at the meeting he was offered the chance to hand the timeshare over and also pay for Monster Credits. (see link below)

Is the TCA going to be used for a new business model by the Monster Group?

Could it be they are using the past good name of this organisation to lure clients to a new claims company, getting on the band wagon so to speak. It does bare consideration, timeshare and timeshare resales have got into a state of decline, the number of companies offering claims for mis-selling are on the rise, especially in light of the Supreme Court rulings.

It must also be remembered that for any claim to go ahead in Spain, it must be conducted by a Spanish Law firm, that there is no such thing as “no win no fee” or class actions.

If this is indeed the case, the TCA will lose even more credibility, after all it was once a very trusted and influential association among timeshare owners. It was once the only source of credible and trustworthy information, but since the new owners, who have had years of bad press, this is sadly no longer the case. As usual only time will tell and Inside Timeshare will be watching for any new developments.

http://insidetimeshare.com/bbc-scotland-investigates-problems-timeshare-contracts/

http://insidetimeshare.com/tca-tess-athena-law-locked-conflict/

http://insidetimeshare.com/tess-vs-monster/

http://insidetimeshare.com/monster-credits-associated-companies-summary/

The post TCA: What are They Doing? appeared first on Inside Timeshare.

Over the past few weeks the articles published here on Inside Timeshare have been of a somewhat serious nature, so to end this first week of November Inside Timeshare is taking a light hearted view of the industry. Following are some of the timeshare and sales jokes you can find on the internet, some have been used in previous articles. Enjoy.

We start off with the usual beginning of any timeshare tour, you are picked up by the OPC (kid on the street with scratch cards),

so you go to pick up your prizes and told it will only take 90 mins, but have you seen the sales reps after?

Then during the presentation you are told all the benefits of owning a timeshare,             

Do you remember the finacial logic part of the pitch?

      Somehow they actually made it look as though you would save loads of money.

But after a while you wanted to go, only time has flown by and you then realise how long you have been there!                                           

Or have you been one of those with the in-house reps, you go on holiday using the timeshare you already own and you get the knock on the door the day after you arrive, how do you feel!

Or do you break down and get you credit card out?           

But don´t feel sorry for the rep when you say I need to think about it, you will leave him waiting as a be-back!

Its when you get home you realise what you have done!

But don´t forget the sales force is very well trained, they know what they are doing,   

Maybe this wasn´t the timeshare for you!

so just to finish here are a few more       

And if you ever think about buying remember this,

                                Hope this has given you a little chuckle, remember you can´t be serious all the time. Have a great weekend.

The post Light Hearted end to the Week. appeared first on Inside Timeshare.

Irene Parker, has once again sent in an article with references to what in the US are important talking points. In this piece Irene gives her own experiences of a timeshare presentation, she also highlights  the plight of an 81 year old doing battle with Westgate, this was even highlighted in the UK press by the Daily Mail. (see link daily mail)

We have once before mentioned the owner and wife of Westgate and the house they are building, which defies all imagination. This has also been featured on television and was called “The Queen of Versailles”. (Link below)

European link

https://www.youtube.com/watch?v=ipYpHC1rxoY

US Link (copy and paste into browser)

http://video.foxnews.com/v/4668383262001/?#sp=show-clips

http://www.dailymail.co.uk/news/article-3691048/Florida-widow-81-topples-timeshare-resort-planned-Queen-Versailles-husband-bringing-24m-project-halt-begin-building-condo-refused-payout.html

The Peasant of Venice is what Irene calls herself in relation to Jackie Siegel, she is a tireless campaigner for the rights of owners and a prolific writer come researcher, contributing many articles,comments and information to Inside Timeshare. Hope you enjoy the first of her Peasant of Venice articles.

The Peasant of Venice and the Queen of Versailles

By Irene Parker

November 6, 2016

I have been longing for a reason to write an article with this title. I wanted to explain how I went from being a 25 plus year timeshare owner without a complaint, question or post; to being the other half of an international timeshare investigative journalism team.

This link pictures the home of an 81 year old protestor refusing to sell her home to Westgate timeshare. As mentioned in the story, the home was featured in the Disney promotion for the movie Up. Please pay no attention to the transfer agent advertisement. The lack of a secondary market breeds predators.  

http://www.mysuncoast.com/news/state/orlando-woman-refuses-to-sell-home-to-timeshare-giant/article_2d420330-a27d-11e6-8b4e-8b161951edfc.html?utm_medium=social&utm_source=email&utm_campaign=user-share

This next link features the flip side of the story – Westgate owners, Jackie and David Siegel’s 90,000 square foot home featuring 30 bathrooms and a 20 car garage.  

http://www.realtor.com/news/trends/queen-of-versailles-q-and-a/

Westgate timeshare is a fixed week timeshare predominantly in Florida. Like most timeshares, Westgate timeshares have little or no resale value.  

I asked licensed timeshare resale broker Judi Kozlowski how Westgate’s secondary market stacks up. “Westgate has destroyed the resale market for Westgate owners. When a resale broker sells a Westgate unit, the Broker is entitled to 100% of their commission.  In the fine print of Westgate’s documents it states that Florida Ranchlands Real Estate gets 50% of the Brokers commission.  No other Developer does that. Few licensed real estate brokers will list Westgate properties.” LIKE MOST TIMESHARES, Westgate has little or no secondary market.

“Westgate also changes the rules,” Judi added, “If you buy a Westgate property on the resale market, and you purchased after a certain date and your reservation window was one year, they condensed it to 60 days. If you buy a Westgate on the resale market and you wanted to exchange your unit within your home resort, you would normally pay a $139 exchange fee but if you bought resale you would pay the $139.00 plus $500.00.”

But back to the peasant and the Queen:

It all started one hot summer day in Orlando at Grand Beach Diamond resort.

We entered the hospitality area where we were invited to attend a 55 minute information only presentation for existing owners. “Will we be paired with a commissioned sales agent,” I asked three times. “No”, Julie replied, “Only if you have questions in the last ten minutes. I attended and I learned a lot!”

The next day we entered the reception area to be greeted by an attractive young lady. “Hello,” she greeted us and introduced herself. “Are you a commissioned agent?” I asked.  Puzzled, she took us by the arm and escorted us to the 55 minute presentation, retrieved us immediately after, and led us to her den.

“My husband is 77 years old. We do not want to invest in vacation plans because we need to investigate long term care plans,” I explained. “Why, we have many in their 90’s who come and enjoy our resorts!” she cried.

“But we are in the middle of building a house and have no permanent resident at this time,” I countered. Kneeling and looking up, she gazed into my eyes and confessed she was a single mother and had to resort to her Diamond points when she and her daughter were homeless. “I know you didn’t put all your money in that house though,” she added.

Three hours and three sales agents later, we returned to our room. I checked my email and learned the 4,500 points we had been promised for our Port Elsewhere Ozark timeshare deposit was credited only 3,000 points. Sure enough, I learned later the 4,500 points promised could be changed at any time for any reason. It’s all in the fine print.

I then decided to take my mind off this disturbing revelation by watching television. I turned on the FOX news Property Man show hosted by Las Vegas Attorney Bob Massi, and there she was – The Queen. The King and Queen of Westgate timeshare were building a 90,000 square foot home that defied the imagination!

Thinking about the pathetically aggressive timeshare sales presentation we were deceived into attending, the oral representation clause promising things not delivered, I wrote to Mr. Massi at Property man never dreaming I would earn a response. In all fairness, copying the letter to Diamond customer service, they hastily credited the correct amount.

Later that year, in September, I was asked to appear on Mr. Massi’s nationally televised show to be interviewed by him. “I’m sorry, but I just accepted a position as interim music director for a large church and cannot attend, but will research some things to help you with your segment,” I offered.

I started digging, and digging and digging some more. The deeper I dug, the more alarmed I became. I submitted my research and returned to the choir. Then, six months later in March, after arranging a flight to Phoenix to stay at Diamond’s Los Abrigados resort in Sedona, I received a call from the FOX producer, asking if we would agree to be interviewed by Mr. Massi the day after we arrived in Phoenix as they had interviews scheduled that weekend. Some things are meant to happen. We live in Venice.

The FOX producer told me David Cortese of Magical Realty had also been interviewed by Mr. Massi about timeshare resales. Like Judi Kozlowski, David is a member of the Licensed Timeshare Resale Broker Association. After viewing David’s segment, I contacted him to see if he would sell our Diamond points. “Alas, but Diamond points are worthless if you need to sell them. Not one of our 64 members of the Licensed Timeshare Resale Broker Association members will buy or sell Diamond points. We feel Diamond has placed too many restrictions on the use of secondary points, unlike most of their competitors, to be of any value to a buyer,” he sadly explained.      

To be continued

Irene and her husband Don were interviewed by Mr. Massi in April 2016 about their concerns:

• the elderly being targeted,
• the aggressive nature of timeshare sales presentations,
• the oral representation clause protecting the agent and the timeshare developer,
• the perpetual (multi-generational) contract,
• limited availability, rising maintenance fees and especially,
• little or no resale value.

Property Man has unfortunately been preempted due to election coverage. Television is unpredictable, but we’re hoping Property Man and Don and Irene’s segment will still air once the American people have recovered from the torture of this year’s election coverage.

In the meantime, here’s Bob Massi and his advice on timeshare resales and here is Sharket’s Timeshare Resale Market Research website that can tell you what your timeshare is worth. If your European timeshare is not listed, someone please volunteer to start a European chapter so that people can see what their timeshare is worth.

https://www.youtube.com/watch?v=G6bZDA6pL0o

https://sharket.com/

Thank you Irene for sharing your thoughts and insights into timeshare in the US, Inside Timeshare looks forward to working with you on further articles. It gives us in Europe another perspective into the timeshare industry, that the problems owners face in Europe are also affecting owners across the Great lake. That they are not alone and somehow working together they may just make a difference and change the way the industry sees the consumer.

The post The Peasant of Venice and the Queen of Versailles. appeared first on Inside Timeshare.

Inside Timeshare is publishing the following article from one of our readers. Edward has been following Inside Timeshare for some time and regularly contributes information he has found while researching his own timeshare problems. This piece was prompted by previous articles on Wyndham and also the article submitted by Greg Crist of the NTOA, in the latter article Greg spoke of the Senator who stopped a bill which would have prevented HOA members from having access to the members database, this was for contact purposes about the issues which would affect the owners. The industry was against this, after all they do not want owners to band together and becoming stronger through knowledge. (see pdf at the end).

Here is Edward´s post:

My resorts Committee, has been trying to get the members database from Wimpen for nearly 2 years to no avail. Even the Spanish Data Protection Agency’s own 2009 consultation into the Data relationship between Administrator, Community of Owners and third parties concluded that the administrator was merely a user and custodian of the members database on behalf of the Community of Owners who it says are the true owner and data controller.

Wyndham

However, our efforts pale in comparison to Worldmark Resorts owners in the USA. As you probably know, Worldmark are part of Wyndham as are RCI.

Some years ago, Worldmark owners began a lengthy battle to gain access to the members database (register). Worldmark Resorts repeatedly refused to comply with successive California court orders to hand over the database to the members community. It went right up to the California Supreme Court who also ordered them to handover the database. Apparently, Wyndham are now sponsoring a bill in the California State Government that would in essence overturn the Court’s ruling.

Many years ago, Worldmark owners set up a very informative website and forum which is very scathing of Worldmark and Wyndham and details their battles which are still on-going

http://www.wmowners.com/forum/index.php?sid=f157827b2e092f5f1970da40bc056582.

Wyndham, I have read, consolidate all their groups’ members details into one database.

In 2008 and 2009, Wyndham’s database was hacked resulting in thousands of personal details being stolen, (which probably explains why, in 2010, I started to receive numerous suspicious telephone calls about my timeshare, which is information only Wimpen and RCI were party to and which both denied being the source of, but said it was a scam). The USA Federal Trade Commission investigated and found that Wyndham had very little in the way of security to their systems, their database wasn’t even encrypted.

http://scarincihollenbeck.com/law-firm-insights/litigation/cyber-security/wyndhams-data-breach-settlement-shakes-up-privacy-law/

I have also read that Wyndham have consolidated their timeshare owners points system with the RCI points system which some owners have claimed has diluted the value of their timeshare ownership.

Wyndham may have launched Ovation, their surrender programme, but as many Worldmark owners say ‘ Wyndham only do anything that benefits Wyndham’.

Personally, I would certainly be very wary of anything Wyndham do, in fact I am wary of anything timeshare related nowadays.

Diamond Resorts International

Another resort that has battled to get their members register is Poipu Point in Hawaii,

http://www.poipuowners.org/Home_Page.php.

The court papers makes very interesting reading

http://www.poipuowners.org/uploads/Lawsuit.pdf

as it sets out on pages 11 & 12, through CBS television’s “Undercover Boss”, how DRI came about and their plans involving the acquisition/merger with Sunterra.

Thank you Edward, this will certainly get the debate going again.

Data protection is a very serious matter, but when access to these members lists is required for a legitimate purpose, such as contacting fellow members about changes which will affect their ownership, surely bodies such as HOA and owners committees have a right to use them.

We know that there are some very unscrupulous people out there, from bogus resale, transfer and claims companies, but it must be remembered that the biggest source of data for these companies tends to be from disgruntled or ex-employees. It is not difficult to see the ease with which a disgruntled employee can obtain the data, it is then a valuable commodity and can earn them a small fortune.

This has been going on for many years, how many companies have been set up by ex-timeshare people, where did they obtain their data?

A recent manifestation of this problem has occurred concerning DRI members, they have been receiving text messages and calls from a new “claims” company. It is believed that they are ex-Diamond employees, even Diamond believe this to be true, they issued a warning letter recently to their members, Inside Timeshare checked on this and published the following article back in September.

http://insidetimeshare.com/diamond-owners-receive-text-messages/

Below is an extract from the Diamond letter:

“A number of ex-Diamond employees are claiming to have left the employment of Diamond when “it came to their attention that Diamond had mis-sold fractional points”, asserting that they can’t work for an unethical company. They are now offering a reclaim service, suggesting that they will secure a refund of the purchase price paid for points in Diamond Resorts European Collection Limited (DRECL) and the Diamond Resorts Fractional Owners Club”.

So is denying owners access a legitimate data protection concern from the industry, Greg Crist of NTOA said the following in the Redweek article. (Link follows the quote).

“When people need answers to questions about what’s happening at their resort, they deserve to get them,” said Greg Crist, CEO of the National Timeshare Owners Association, based in Florida. “I am sensitive to the fact that there are bad operators out there seeking to take advantage of consumers by obtaining board data records, but there are legitimate reasons why members should be able to circumvent their boards and communicate independently.”

http://www.redweek.com/resources/ask-redweek/timeshares-refuse-to-share-owner-lists

Inside Timeshare also published the following from Greg Crist on this subject in October:

http://insidetimeshare.com/wp-content/uploads/2016/10/More-from-Greg-Crist-at-the-NTOA.pdf

http://thetimesharecrusader.blogspot.co.uk/2016_10_01_archive.html

This is obviously an ongoing debate, which will see a polarising of views, that of the industry versus that of the owners. Owners want a say in how their clubs are run and work, the industry it seems want to control, there must be a way for them to work together and turn what has become a tarnished product into something better. Once again only time will tell.

Inside Timeshare would like to thank Edward, Greg and Irene for their contributions, Irene has been a great source for many links in this and previous articles, look out for more from across “The Great Lake”. 

The post Owners Data: A Battle for Control. appeared first on Inside Timeshare.

Inside Timeshare has received an email from Greg Crist, CEO of the NTOA in response to Edwards article yesterday on Owners Data. In his email Greg addresses the fact the developers community has been battling the issue of the the breach of owners records for decades. In his opening he states:

“I think the developer community has been dealing with “owner records data breach issue” for decades. Those lists of owners have been stolen…sold and resold many times over and it continues to happen at present day. (***Get a quote from the Orlando Florida PD – timeshare resale task force…and they will tell you that people are making more money selling lists of owner records than actually selling timeshare or resale***)”.

When you consider the last part, that people can make more money from selling these lists than selling timeshare or resale, it goes to show how valuable this information is. It is not just timeshare that has suffered, in the UK there was a proliferation of calls regarding PPI (Payment Protection Insurance), again where did this information come from? Was it stolen by ex-employees or sold by the companies themselves?

There is also another form of compiling these lists which does not involve theft, that is the landing page on the web. When searching the internet for say a resale company, you will quite often find a website which offers the service, on many there are no company details, they direct you to a form which you then fill in. It will ask for your contact information, what timeshare you own, the maintenance fees etc. This information is then sold to resale companies for quite substantial amounts per lead. There is nothing wrong in this, you have initiated the search and voluntarily given the information.

Another area which has resulted in personal information being sold is one that many have fallen foul of. When taking out a loan or even applying for a store rewards card, such as Tesco Club Card, how many people did not tick the box, this box was the opt out for your information being passed on to third parties, which may have or provide goods and services which may be of interest to you. Whether it has been changed we don’t know, but many declared that it should be an “opt in” not an “opt out”, quite simply the box was so small most never even noticed it.

The two examples above are not illegal, what is illegal is for employees or ex-employees to steal and then sell this information. In the world of timeshare, especially in Europe, many sales staff in the past were on commission only, in many cases some of the sales companies did all they could to withhold commissions. It was not uncommon for a client to “cancel” then the salesperson did not get paid, when in reality the client completed. This practise was instrumental in staff “stealing” the data, many even kept their own records for future use, a kind of unemployment insurance policy.

Wyndham according to Greg has gone after former employees:

“Wyndham has actually pursued former employees who either acquired the data illegally or purchased it from an insider to use for the thief’s own ill-gotten gains”.

As mentioned in yesterday’s article, Diamond has also informed their members of a claims company set up by ex-employees, who they say are using “stolen” client lists. They then contact the owners with a view to claiming compensation for misselling.

This is a problem and one can understand the industry in their view that legislation preventing owners groups such as HOA or Owners Committees from accessing this information, will protect them. But the question is who stole the information, was it the owners or the employees?

Will this legislation stop the theft of these lists by employees? Somehow we think not.

As highlighted in Edwards article, the Spanish Data Protection Agency even stated the information belonged to the owners, the resorts or management company were just “Custodians”. The Community of Owners are the true owner and controller. Yet we see them being denied access using data protection and protecting them from abuse as an excuse.

Is this just another example of a huge divide between the industry and owners?

In the end the developers need to work with owners if the industry is to survive, they need to listen and take note of the concerns of the people who in effect pay their wages and keep them in business. Without some level of cooperation there is no hope, both sides will be at loggerheads and who in the end will be the losers?

The post Owners Data: Update. appeared first on Inside Timeshare.

Today Inside Timeshare publishes another article submitted by Irene Parker, with the end of the election in the USA, Irene looks at the divide in the nation and how this also equates to the divide in the timeshare world. In this article she looks at the great gap between owners and developers, using a video from Parker J. Palmer titled “Stand in the Tragic Gap”, showing how there are two sides to any controversial issue.

Again Irene calls on developers to join with owners to find a solution which will benefit both parties, it has been said before in previous articles, until both parties work together then there is little hope for this industry. There are many owners who love what they have, but there are also many who feel they have been let down, either with the “resale” or “secondary” market, or down to the problem of handing back when no longer being able to use either from illness, financial changes or just old age. This is also a problem for many owners in Europe, some developers have put in place exit strategies, some are fair, others are downright greedy with up to 4 years maintenance payments and only limited numbers being allowed to exit on a first come first served basis. In other words you need the luck of a lottery win.

Inside Timeshare hopes this article will explain the problem and how it can be solved, enjoy.

How Will the Outcome of the US Presidential Election Affect Timeshare?

By Irene Parker, November 9, 2016

Like the Clinton and Trump camps, timeshare owners and developers cannot heal until the two sides listen to each other. If we continue to

“Stand in the Tragic Gap”

Timeshare will continue to be a battlefield with timeshare owners at odds with timeshare developers. True and meaningful dialogue could heal an election or timeshare. Sometimes timeshare and elections overlap, as in the case of New York Attorney General Eric Schneiderman and Florida Attorney General Pam Bondi:

http://insidetimeshare.com/news-across-pond/

According to the Tragic Gap, creator Parker J. Palmer says there are two sides to any controversial issue. One side Parker Palmer calls “corrosive cynicism” – “greed is how this works, I take mine, run and forget these other people and their needs.” The other side is “irrelevant idealism”. Parker Palmer claims both sides cause a functional disconnect that takes us out of action.

Ironically, my name is Parker and the CEO of Diamond Resorts is David Palmer.

Take a listen:

http://www.couragerenewal.org/723/

Next consider:

Timeshare owners of the Diamond Resorts Grand Beach Resort, a 192-unit property in Orlando, Fla. … learned in a letter in September that their annual maintenance fee would rise 14.9 percent this year.

But here’s how the CEO, David Palmer, described it to investors in 2014, per a NY Times article written by Pulitzer winner Gretchen Morganson: 

“Anything that is put in the budget that gets expended on an annual basis, we get our 15 percent fee,” Mr. Palmer explained to investors at a September 2014 conference, according to a transcript. “That is basically a 100 percent profit business.”

Many remember the junk bond debacle and subprime mortgage issues that drove unsuspecting homeowners into foreclosure, while unscrupulous lenders like Drexel Burnham Lambert made billions.

Fast forward and the founder of DBL formed Apollo Global Management, now owner of Diamond Resorts. The story of the Saldana family, as described in an earlier article, is a case in point – demonstrating that predatory lending has reemerged with a timeshare twist. The Saldana family was left with no vacation plans after rising maintenance fees forced the family to surrender their vacation plan – but leaving the family with a $33,000 home equity loan taken out to reduce the 14% to 18% timeshare loan.

http://insidetimeshare.com/irene-parker-write-barclay-card-usa/

http://www.thestreet.com/story/13624491/1/is-apollo-returning-to-its-junk-roots-with-its-acquisition-of-diamond-resorts.html

Meanwhile, according to the Apollo buyout of Diamond Resorts:

15 people “would be entitled to receive an aggregate amount of $624,131,129 in cash.”

The bulk of that will go to Stephen J. Cloobeck, Diamond’s founder, and Mr. Palmer, the chief executive. Mr. Cloobeck would be entitled to $384 million and Mr. Palmer would receive $173 million.

http://www.nytimes.com/2016/08/07/business/accounting-error-may-not-derail-a-deal-but-ex-director-bails-early-anyway.html

Recent Florida legislation put timeshare developers at even greater odds with owners. Florida state Rep. Eric Eisnaugle, R-Orlando, and state Sen. Kelli Stargel, R-Lakeland sponsored House Bill 453 and Senate Bill 932, which when passed during the 2015 legislative session, made a number of technical changes to the Florida Vacation Plan and Timesharing Act.

The lawmakers and the industry’s trade association, the American Resort Development Association ARDA, described the legislation as a bill that “modernizes” state law, but several consumer advocacy groups disagreed, stating that the new law would make it more difficult for consumers seeking relief from increased timeshare assessments and maintenance fees.

Scott Maxwell, writing for The Orlando Sentinel, also disagreed with ARDA’s position. Maxwell asked Sen. Stargel and Rep Eisnaugle, if they could identify any constituent or ordinary citizen who had asked them to file this bill on their behalf. In response, the legislators provided the name of “the CEO of a South Carolina-based time-share group lobbying for this bill.”

Not all timeshare companies are bad. Some have worked with advocates to grow programs that benefit both investors and owners.

“Some of the best companies that operate in the timeshare industry are Disney, Hyatt, Starwood, and Hilton. These are the leaders who set the bar higher with regard to standards and a culture imported from the hospitality side of their businesses. It appears that the culture and management of these groups are distinctively different than those timeshare companies who were initially created to sell timeshare first, and take care of customers later. Although the trends seem to indicate the pure timeshare companies are making gains in term of customer satisfaction, and delivery on the sales promise, surveys continue to show they have a way to go to catch up to branded hospitality companies overall,” said Greg Crist of National Timeshare Owners Association.

https://www.google.com/#q=national+timeshare+owners+association

Timeshare Owners should have the right to talk to other owners without censure. Privacy laws were the subject of our last Inside Timeshare article. We will continue this topic in our next article about ARDA – ROC and the “voluntary donation” to ARDA ROC to determine if the money raised is used to benefit owners or developers. Both sides are welcome to the discussion.

As usual Irene puts the views of owners across in a way that calls for dialogue, it openly calls for both parties to join the discussion. Timeshare was and can still be a good product, in the early days in European timeshare, owners actually felt they belonged to something. They felt they had a voice in the running of their resorts, some today still have that, they tend to be owners of small independent resorts who have nothing to do with the wider industry. Could they be the model for the future?

Inside Timeshare would again like to thank Irene for her insights and looks forward to more from her. Inside Timeshare also joins with Irene in calling for both parties to work together, not just in the USA but also in Europe, together so much can be achieved for the better.

If you have any concerns, questions or comments on this article or those previously published, Inside Timeshare would like to hear from you. Have a good weekend.

The post Dialogue: The Way Forward! appeared first on Inside Timeshare.