Welcome to this week’s Letter from America, today Sheila Brust gives us an update to her previous article “Pencil Pitch”, again edited by Irene Parker.
It would seem that Darth Vader has sent in his Imperial Stormtroopers and Inside Timeshare is under attack from the dark side, no problem, the force of the good is with us. Keep your stories coming, the truth will always prevail!
Now on with this week’s Letter from America
An Update to Sheilah Brust’s Pencil Pitch
The Florida Timeshare Division told us,
“You have no Proof” and we were not allowed a rebuttal
Why is this not proof?
July 6, 2018
Introduction by Irene Parker
Many potential timeshare buyers have watched timeshare sales agents scribble timeshare promises on a piece of paper. Buyers are not allowed to keep a copy of the “Pencil Pitch” but Sheilah Brust managed to walk out with hers.
Sheilah listened to her pencil pitch in Daytona presented by Diamond sales agent Brad Leslie. She filed a complaint with Florida’s Department of Business Practice and Regulation (DBPR) and was told the following,
As you are aware, alleged verbal misrepresentations are very difficult to prove in light of the written documents and disclosures. In terms of evidence we rely on these documents to prove or disprove the allegations. The actions taken by other state agencies are not evidence of the alleged misrepresentations related to the sales transactions conducted in Florida. Based on our review, it did not appear that the information provided to you by the sales agents were false and misleading. Lack of clarity could be an issue but that in itself cannot be considered a violation. We are not surely, if the sales agent had voluntarily provided the hand-written notes or you had kept them on your own. If there are discrepancies between the notes and what was actually received in terms of points, we will address that issue.
By Sheilah Brust
My husband Thomas and I have been Diamond timeshare members since Diamond acquired our resort. Our original timeshare was purchased in 1994. Things were fine until we fell for the Pencil Pitch.
On February, 4, 2017, we attended an update meeting at Diamond’s Daytona resort The Cove. We wanted to attend the update because Diamond had been sold to Apollo Global Management. We are Platinum Diamond members so already had more points than we needed, but wanted to hear about the changes.
Diamond sales agent Brad Leslie said that he had just returned from training in Orlando and had learned about a new program that would allow us double point usage. We patiently followed Brad’s presentation. He wrote the numbers upside down. I remarked at how he could he do that. He said practice.
We feel Diamond must not understand the Pencil Pitch or they would cancel this purchase. I have learned Diamond retained the law firm Duane Morris to write a letter implying our article was defamatory. I have submitted this article as our rebuttal. We understand the figures we were presented. We were not confused. I have an accounting background. I wrote down everything Brad Leslie said.
Here’s the pitch. We hope you post a comment expressing your interpretation.
The actual Pencil Pitch is three pages long. Page 2 of the Pencil Pitch is based on 15,000 additional points instead of 25,000 points pictured above because we said no to 25,000 points. The numbers below reflect 65,000 points instead of 75,000. For those not familiar with the point system, a Diamond timeshare points sells for around $4 a point.
Timeshare members incur annual maintenance fees. For Platinum members the annual maintenance fee is $.15 per point, or $8,631 for the 50,000 points we owned before the purchase of 15,000 additional points.
From the original illustration above, to offset maintenance fees, on the right side of sheet, Brad said and wrote:
- Own 75,000 points
- Ability to get (Double Usage) 150,000 points – 50,000 points is what would be left for travel
- 100,000 points would be available for point redemption @ 10 per point through a Travel Reimbursement program. Brad told us to book hotels, etc., and then cancel the reservations. We would receive a reimbursement check back for $10,000. The 50,000 points tendered would not be credited back. Brad said we would be reimbursed via check in about 30 days or 72 hours if via a reloadable debit Visa card. Without the double points, this program is of no value. If we used all our 50,000 points for redemption at $.10 a point, we would receive a reimbursement check for $5,000 that would only pay $5,000 towards a $8,631 maintenance fee bill with no points left for travel.
Brad said we could use the reimbursement check to pay maintenance fees but he said he could not tell us that. He said, “It’s your money!”
Brad said we paid $8,631 in maintenance fees for 50,000 points in 2017. Following Brad’s logic, we could eliminate $8,000 of the increased $11,252 maintenance fee (due to the purchase of 15,000 additional points), by taking advantage of this new program.
65,000 own $8,631 current maintenance fees before 15,000
65,000 given 2,621 maintenance fees on the new 15,000
130,000 points $11,252 Total maintenance fees with new 15,000
50,000 if used 8,000 Less reimbursement check
80,000 left $3,252 Maintenance fees still owed
x $.10 reimbursed EXCEPT THERE WAS NO 65,000 POINTS GIVEN!
$8,000
Brad said Diamond was working on a new member page for the new program that would have a split screen and that we would be able to see our newly acquired 15,000 points in the background. He said the 65,000 points “given” (Brad’s word) would also appear on a “split screen” on our member account page.
When I asked about the maintenance fees on the new 15,000 points, Brad said, “If you don’t use them you don’t pay maintenance fees on them. They will be kept in the background. If you want to use them then you will pay maintenance fees.”
I specifically asked Brad, “So if I had all 130,000 points reimbursed, they could all be redeemed for a check? Brad said, “Yes.”
I asked Brad why this program was developed. He said Diamond wanted to make sure we STAYED VACATIONED.
We met with Brad again in May 2017. Brad said the program had changed. Brad said Diamond was getting rid of the debit cards because there were problems. He said DRI was working on the split screen. He said now we would need to generate the reimbursement checks by participating in the Travel Reimbursement program. I was familiar with this program and had used it before. This was a benefit we already had as Platinum members, but only beneficial if we were to lose points. We feel Brad adulterated the Travel Reimbursement program, incorporating it into his February Pencil Pitch.
Brad’s reply to our complaint submitted to the Florida DBPR was that 15,000 points in the background was for a Dream Vacation. He said I was confused! Dream vacation points were not in any background account. They were added to our account February 17, 2017 so these could not have been the points in question. Brad sent us a $2,621 check to reimburse us the maintenance fees on the newly purchased 15,000 points. If it wasn’t for the NEW 15,000 points, we never would have gotten a $2,621 reimbursement check for the maintenance fees. Diamond representative Brandi said sales agents are allowed to reimburse members for their first year’s maintenance fees. Dream Vacation points don’t have maintenance fees.
Of course Brad was selling a double point program. He wrote down 130,000 and called the 65,000 points “given” points. I had told him that this program better be right because we are retired and living on fixed incomes and that we had NO extra money if he was not telling us the truth. His answer was that he hoped to rebuild our trust in Diamond. We had told him we had been duped previously, told we had to buy 4000 points to prevent our heirs from being stuck with Diamond points.
Diamond’s response to us was that the information as presented was confusing, but not illegal. This is the CLARITY promise Diamond launched in response to Arizona Attorney General Mark Brnovich’s issuance of an Assurance of Discontinuance.
The CLARITY Promise: With this clear, concise and consistent information, consumers can easily determine whether the Diamond Resorts hospitality experience is the right decision for them and their families.
Diamond’s Response:
On April 5, 2018, we received a call from a DRI Hospitality agent. She said our complaint had been escalated to the legal team and they found no wrongdoing. This is part of what she said to us.
I definitely agree that your confusion of that process is warranted. I have spoken to our legal team and sales team and we agree the double point explanation is definitely something that could have been misconstrued or seen as confusing by members or purchasers.
We have made changes to the way that information is given at the time of sale but we have to say the stance we take on this is: because there may have been some confusion on how you may use those points to create a savings for yourself doesn’t make the explanation illegal.
Summary
As a result of this upsell and lack of clarity, we have less time to travel because we have to work to pay for the additional points that increased maintenance fees to $11,252. We have a loan with Diamond for $31,000 and $26,000 Barclay Card balance.
Brad charged on two Barclay Cards $14,000 in my name and $12,000 in Thomas’ name. He had us fill out a credit card application to see if we qualified for the new program. He returned and said, “Barclays loves you! You got $26,000 credit!” I was livid after I learned we had been charged these amounts. We could have used a different credit card that would have gotten us rewards points.
This whole deal was based on having 130,000 points using points at $.10 a point for a Travel Advantage reimbursement service taking advantage of 65,000 bonus points. You can book a lot of vacations with 50,000 points that would vastly exceed a measly reimbursement check for $5,000. You can stay a week for roughly 2500 to 5000 points. At an estimated 4000 points per week, about 12 weeks.
What CLARITY?
According to the Federal Trade Commission Section 5
An act or practice is deceptive where
- a representation, omission, or practice misleads or is likely to mislead the consumer;
- a consumer’s interpretation of the representation, omission, or practice is considered reasonable under the circumstances; and
- the misleading representation, omission, or practice is material.
https://www.federalreserve.gov/boarddocs/supmanual/cch/ftca.pdf
From the Arizona Attorney General’s Assurance of Discontinuance:
IV Assurances
“Diamond shall enhance its programs, policies and training and continue to instruct and train its Vacation Counselors and Sales Managers to comply with the ACFA (Arizona Consumer Fraud Act). Diamond shall advise all Vacation Counselors and Sales Managers that they may not:
- Sales agents should not deviate from sales material
- Sales agents should not make oral representations at the point of sale inconsistent with the Purchase document.
Contact Inside Timeshare or one of these self-help groups if you need help with a timeshare concern or would like to share your experience.
https://www.facebook.com/timeshareadvocategroup/
https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/
https://www.facebook.com/groups/180578055325962/
https://www.facebook.com/groups/465692163568779/
https://www.facebook.com/groups/1639958046252175/
Thank you Sheila for your candid story, it just amazes us that this type of sales practice still goes on, yet the companies involved deny all responsibility for their sales agents actions. In Europe timeshare is very much on the decline, partly due to the antics in the past of unscrupulous sales reps, not all I hasten to add, I do know many who abhor the deceitful practices and are genuine in their approach to selling the product. They believe that telling the truth sells the product.
We have said this on many occasions, timeshare was and could be a good product, it may not suit everyone but sold properly and truthfully will only strengthen it and give it a future.
So we say to all timeshare companies, get your house in order, reign in your sales agents / reps, stop these types of sleazy sales presentations, take control or you will lose a product that could work.
News has just come in from Canarian Legal Alliance of this weeks court cases, on the receiving end are Anfi in Gran Canaria once known as the flagship of timeshare resorts in Europe and Silverpoint in Tenerife.
The Court of First Instance in Maspalomas, Gran Canaria, has had NINE sentences passed against them this week. The clients will receive back all their money and have had their contracts declared null and void.
In Tenerife, Silverpoint, who are well known on these pages has lost another case in the Court of First Instance in Arona. Again the court ordered the return of all money and the contract declared null and void.
In total these 10 cases will cost these timeshare resorts over 325,112€ plus legal interest and in most cases the return of the client’s initial legal fees.
So the week ends with another “Black Cloud” hanging over the timeshare industry. Will they ever learn?
Inside Timeshare welcomes your comments and stories, if you would like to share these with the rest of the timeshare world, then use our contact page and get in touch.
So that is all for this week, join us on Monday for more news and views of the timeshare world, have a great, enjoyable and safe weekend.
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