Welcome to the Easter edition of Friday’s Letter from America, by Joshua Parker, Sheila Brust and Richard Sokolowski, edited by Irene Parker.
Just as we were getting this ready to publish, Josh has been informed by the Florida Timeshare Division, they will be initiating a new investigation into his complaint. Josh and Nicole’s first complaint that they were told their Diamond points are an investment and easily sold, had been closed. They are now expecting twins and cannot afford the timeshare, Josh is a combat veteran who has seen service in Iraq. So at least some good news before we start.
Normally we have a roundup of news from Europe, but that was published yesterday, so straight on with our Letter from America.
Timeshare is a Highly Regulated Product?
Earth to ARDA Part II
Another Open Letter to ARDA CEO Howard Nusbaum
Robert Clements, Lobbyist and General Counsel
Peter Roth, ARDA media
By Joshua Parker, Sheilah Brust and Richard Sokolowski
March 30, 2018
From: American Resort Development Association’s Code of Ethics:
According to ARDA’s website – “Vacation Ownership is one of the most highly regulated vacation products in today’s consumer marketplace.”
Diamond Resort members Sheilah Brust, Joshua Parker, and Richard Sokolowski have learned there is no timeshare regulation and there is no timeshare enforcement for us. We have been filing complaints with every regulatory agency known to an American citizen and all we get is a passing of the buck to another department or agency. In addition, we have been given some ludicrous advice from regulators that are clearly out of touch with timeshare consumer reality.
Sadly, we agree with Eron and Irene. We think ARDA’s Code of Ethics is meaningless. Like Eron and Irene, we are professionals.
Sheilah Brust: Worked for the New York Governor’s Office of Employee Relations
My experience speaking with an FBI agent and what I learned about the process
http://insidetimeshare.com/tuesday-slot-irene-14/
Josh Parker: Army combat veteran, Sergeant
http://insidetimeshare.com/fridays-letter-america-41/
https://www.youtube.com/watch?v=ezkJ7GlJN4U&feature=youtu.be
Richard Sokolowski: Arizona Real Estate
Earth to ARDA by Eron Grant and Irene Parker – Part I
http://insidetimeshare.com/fridays-letter-america-40/
Eron’s YouTube https://www.youtube.com/watch?v=-FMk_45zRzk&feature=youtu.be
Sheilah Brust: So far the only light on the horizon is the FBI. Through Social Media members are talking to other members. No one doubts there are those who use and enjoy their Diamond points. I enjoyed my Diamond points as a Platinum member until we were pitched a program that does not exist. We weren’t confused. The numbers were easy to understand. Gad and Noreen Liebmann are enjoying their retirement by protesting outside Diamond’s Daytona Beach Regency Resort. We were both up-sold by the same Diamond sales agent, Brad Leslie, the same program that does not exist, and still Diamond will not listen.
According to Facebook postings, the FBI has been responsive and agrees our allegations constitute fraud – deceit, concealment, violation of trust, bait and switch. In our opinion, Diamond, in effect, endorses and approves of these tactics by maintaining the position the customer is always wrong. Hospitality agents from the Diamond Resorts Consumer Advocacy Department automatically respond, “Sorry you signed a contract” and the emailing of your initials on fine print rewards bad behavior with a commission check.
Josh: I was advised by Hector Tapininge at the Florida Department of Business Practice and Regulation DBPR to call a member of the Licensed Timeshare Resale Broker Association.
http://www.licensedtimeshareresalebrokers.org/
Like Sheilah, I learned licensed timeshare resale agents won’t even accept a Diamond listing feeling the resale market for Diamond points is non-existent. I almost signed up with a scam until finding our Advocacy Facebook.
https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/
When I informed my reviewer that licensed resale brokers won’t accept a Diamond listing; he said he was aware of this. In other words, send the consumer on a wild goose chase that often leads Diamond members into the nets of scams.
How many timeshare buyers knew they were buying a lifelong timeshare product that could not be sold? As a veteran, I can tell you no service member would ever buy an unsellable asset. The Diamond contract states you can sell your points. Since you are dealing with a licensed real estate agent, it is logical to assume the timeshare can be sold, especially since we were told Diamond points are an investment.
Given so little enforcement and regulation, our mission is to reach the general public to make sure they know they are spending thousands of dollars, signing a perpetual contract, with rising maintenances fees and no secondary market.
Veterans, Active Duty military and law enforcement and government workers are encouraged to support Whistleblowers of America, a nonprofit in Washington DC that seeks justice.
https://whistleblowersofamerica.org/
Sheilah: I was contacted by Mr. Alan Parkinson, Bureau Chief for the Bureau of Mediation & Enforcement, Division of Consumer Services.
Mr. Parkinson recommended I contact DBPR, the same Florida Department of Business Practices and Regulation Josh contacted. We saw how much good that did with the response Josh received. I will follow up and we will all continue to report on our progress or lack of. I too spoke with licensed resale brokers. I was told even timeshare companies that do allow a secondary market; the net to the consumer is often negative after commission. I was told I could list a deeded week I own, but it would end up costing me money to get rid of it. Consumers defrauded, are left with a perpetual contract, rising maintenance fees and no secondary market. It’s a recipe for disaster.
Richard Sokolowski: I tried to file a complaint against Diamond Resorts with the Nevada Attorney General’s office. They won’t do anything if I did not buy from a Nevada sales agent. I can’t believe a consumer complaint can’t be filed against a company headquartered in Nevada.
I was also told to contact an attorney. Diamond is the only major timeshare with a class action ban, forcing arbitration. Arbitration is known to be pro-industry. Diamond hires the arbitrator. If the arbitrator rules against the member, the member can be ordered to pay Diamond’s legal fees; and that amount can be higher than the disputed amount. Besides, Diamond has armies of lawyers and outside law firms. They can outspend the average citizen. I’ve talked to lawyers. Getting a lawyer will do nothing to stop predatory and criminal business practices.
Sheilah: According to Josh, this response from the Florida Bureau of Mediation & Enforcement is useless.
Ms. Brust,
By way of introduction, my name is Alan Parkinson and I am the Bureau Chief for the Bureau of Mediation & Enforcement, Division of Consumer Services. I have received your concerns and would like to take a minute to respond.
The Florida Department of Business and Professional Regulation has a Timeshare and Condominium division that can likely address many of your concerns regarding the sales practices and issues you have with Diamond Resorts. If your issue is with the purchase and contract for the timeshare, they would be the appropriate agency to speak with. You can contact them through the link below:
http://www.myfloridalicense.com/dbpr/
If your issue is outside of those parameters then you may consider filing a complaint with us so that we can reach out to them and asked that they address your concerns.
If you any questions please feel free to contact me directly.
Alan Parkinson
Comment from Irene
The Florida timeshare division only acted on 110 out of 2,360 timeshare complaints filed from April 2012 to April 2014, in contrast with the Arizona Attorney General’s office that opened an investigation after receiving 400 DRI complaints and, according to a source, received 500 additional complaints after the press release. The AZ AG has issued an Assurance of Discontinuance, accusing the company of violating the Arizona Consumer Fraud Act. Diamond did not admit wrongdoing.
From Eron’s March 9 article:
Inside Timeshare will be following Platinum Diamond members Roy and Lillian Simmons as they make their way through Vacation Ownership’s highly regulated industry. Mr. and Mrs. Simmons are worried about losing their home, up-sold at age 69 and 70 to $2,700 a month in timeshare loan payments. They live on Mr. Simmons letter carrier pension.
Roy and Teresa Mori, Mr. Mori a recipient of two Purple Hearts, remains devastated. Based on the response daughter Teresa Laird reported to us from a hospitality agent working for Diamond Resorts Consumer Advocacy Department, the company doesn’t care if sales agents have allegedly ruined their lives. “Sorry, you signed a contract” after being sold 17,000 MORE points over the phone by a Las Vegas company representative after daughter Teresa called to explain the Sampler or trial product should be cancelled. In the middle of her archeology thesis, she is making signs to protest outside Diamond’s Polo Towers.
In response to a draft sent for comment, Josh received this response from DBPR:
Josh’s responses to Ahmed Y. Kassoo are in bold
Thank you for contacting the division regarding your concerns. Please note that the division is not authorized to comment on or give its opinion of or approve any articles written by any individual which he or she intends to publish in any form including at various websites or in other publications.
I understand.
Since the division does not regulate the operations of real estate brokers, we are not aware of their criteria with regards to offering real estate listing and marketing services. As a courtesy and for information purposes only, we provide the web site information of licensed real estate brokers (LTRBA) who specialize in selling timeshare interests and vacation club membership in Florida. We neither recommend nor endorse a particular broker.
I understand, but why is nothing done about Diamond sales agents allegedly selling vacation points as an investment, yet the points are worthless the moment the contract is signed, should the buyer need to sell. LTRBA members will accept a listing for any major timeshare EXCEPT Diamond Resort, so not only is there no resale value when they are selling the points as an investment, they are the only major timeshare company that can’t be listed with them. Our Diamond Advocacy Facebook of over 1,100 members is flooded with similar complaints, the BBB has over 1,000 complaints and the AZ AG received over 900 complaints, yet the Florida AG timeshare division sends you to LTRBA? Can you see how frustrating this is? Not only is there no regulation or enforcement, Diamond victims are sent on a wild goose chase.
Please note that it is always safe to employ a licensed real estate broker who are prohibited from collecting advance fee for listing the timeshare for rent or sale, except when permitted by law, and who are strictly regulated by the state.
What does this have to do with Diamond members if the LTRBA members won’t list their points? They feel Diamond has restricted the use of points purchased on the secondary market to the point it does not exist; it’s a hamster wheel 1. Lie to sell 2. Force foreclosure (I know of over 30 active duty and retired military and law enforcement alleging they were defrauded by Diamond, Bluegreen and Vacation Village, seven are concerned they are going to lose their Security Clearance, one lost his air unit command) 3. Take back the points 4. Resell to the next victim. With so little enforcement or regulation, there is nothing to stop timeshare sales agents from using and abusing the oral representation clause.
If they cannot help the owners, they will let them know upfront and will not waste their time and money to advertise their properties which they know are not marketable. They will not give a false hope unless they are sure they can sell the timeshare. Despite your statement that “resale market is nonexistent”, please note that timeshare interests do sell in the secondary market, however, buyers are selective and only buy those timeshares which they consider to be in high demand at choice locations. Therefore, it is not true that the timeshare resale market is non-existent. If it was, these brokers won’t be able to survive.
One of them told Shielah they survive because they get paid a commission even when the seller ends up with a net loss. We don’t hold that against them, but that’s how they survive.
An owner is free to select any entity to market his/her timeshare interest or club membership. However, based on the history of complaints we have received, we have learned that many owners have been burned by the individual and entities who take their money and run without providing the promised services based on false and misleading claims.
Exactly, I rest my case. The industry is the cause of the scams because desperate consumers who feel, know, they were defrauded, are easy prey for professional liars.
I hope this information was helpful
No, I’m sorry. It was of no help. It is my opinion the reason there is so little enforcement and regulation is because Florida Attorney General Pam Bondi is influenced by the timeshare PAC ARDA. I will be researching through FOIA how much money she has received in campaign contributions and other means.
https://www.nytimes.com/2014/10/29/us/lobbyists-bearing-gifts-pursue-attorneys-general.html
If you have any other question or concern, feel free to contact us at your convenience. Thank you for giving us an opportunity to address your concerns.
Thank you. I would like to speak with you. My wife and I have been defrauded. I am a combat veteran, 90% disabled. My wife is pregnant with twins. We bought this because we were told it was an investment and that the points could be easily sold. I know many other members who would appreciate your help, like Eron, Sheila Richard and Gad mentioned in the article.
How many consumers need to contact DBPR to convince DBPR some timeshare sales agents in Florida are engaging in criminal practices? Irene said Bluegreen has as many complaints as Diamond, but they have their own Advocacy Facebook.
Josh Parker
If you are having a timeshare nightmare, contact our Facebook or one of the non-industry influenced, self-help Facebooks and website listed below.
https://www.facebook.com/timeshareadvocategroup/
https://www.facebook.com/groups/180578055325962/
https://www.facebook.com/groups/465692163568779/
https://www.facebook.com/groups/1639958046252175/
Thank you to all our contributors and we hope we see more positive results in the weeks ahead. If you would like to share your story with others, contact Inside Timeshare.
We wish you all a very Happy Easter and don’t eat all the eggs in one go!
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