Welcome to the Tuesday Slot, this week we have another “Nightmare on Timeshare Street”, involving another serving member of the armed forces, USAF First Sergeant John Kim, on his experience with Bluegreen. John is not the first serving member or veteran of the armed force or law enforcement that have been in contact with Inside Timeshare, all their stories are the same, with some likely to lose their security clearance and therefore their jobs. This “Nightmare on Timeshare Street” must end, not just for these people but also the elderly we have highlighted, but all consumers. The industry needs to get their act together and reign in the lies and untruths of their sales agents.
At the end of today’s article is a report and a link to the breaking news that Bluegreen have had their stock downgraded by Bank of America Merrill Lynch. Apparently this is due to underperforming in the sales sector, well, what do they expect, the truth is getting out, new purchasers have heard the horror stories and are voting with their wallets. Yes folks, the timeshare industry really does need a severe shakeup or it will collapse!
We now issue another warning on a dubious company that has just come to light, cold calling timeshare owners: General Legal Associates, with the website https://generallegalassociates.com
Their contact details are:
Telephone:01274 792844
Address: 82 Horton Grange Road, Bradford, York’s, BD7 3AQ
According to Google streetview this address is a pharmacy
Email on the web: gla@generallegalassociates.com
The website shows very little information regarding timeshare, the about section is to say the least, looking a little far fetched. It was registered only in September 2017, yet some of the testimonials go back to February 2017?
According to the callers named as Lisa Reid and Emma Newton, a court case has already taken place against a bogus company the timeshare owner has had business with in the past (scammed). The court has awarded them a huge amount in compensation, even though the owner did not even know they had a case in court. As usual, to release this money a huge percentage needs to be paid by bank transfer to APS Bank in the name of Universal Consulting.
This is obviously another “scam”, there is no company with this name registered at company house, there are no court cases where consumers haven’t instigated the proceedings and the courts do not operate in the way this company suggests. So beware these type of calls, if in doubt contact Inside Timeshare for further information on any company that makes contact with such claims.
This company was first highlighted by Mindtimeshare.
Now on with our main article.
Why Military Lending Oversight should not be Weakened and why Timeshare Lending Practices can Pose a National Security Risk
Air Force First Sergeant John Kim’s Bluegreen Experience
August 21, 2018
The Trump administration is planning to suspend routine examinations of lenders for violations of the Military Lending Act, which was devised to protect military service members and their families from financial fraud, predatory loans and credit card gouging, according to internal agency documents.
New York Times, August 10, 2018
https://www.nytimes.com/2018/08/10/us/politics/mulvaney-military-lending.html
The already weakened Consumer Financial Protection Bureau has taken the next step towards becoming the Corporate Financial Protection Bureau. Volunteer staffed Timeshare Advocacy Group
has heard from 535 timeshare members, of which 70 are veterans or active duty members of the military or law enforcement alleging timeshare fraud.
If an active duty member of the military falls for a deceptive timeshare sales presentation, the after effects can include the loss of his or her security clearance. This is due to a foreclosure being reported on their credit report. Sometimes this can also lead to the loss of a career. One Marine lost his security clearance and his air unit command due to a timeshare foreclosure. It is not uncommon for a timeshare foreclosure to involve amounts of $100,000 or more.
Air Force First Sergeant John Kim made this YouTube hoping to warn others not to fall victim to high pressure same day timeshare sales and to encourage readers to become involved with others who face foreclosure.
https://www.youtube.com/watch?v=izC_RzfD788
According to the Federal Trade Commission’s 2017 fraud report, these figures include all travel scams,
Travel, vacation and timeshare fraud reported losing the highest individual loss amount and the report also stated the median fraud loss reported by members of the military were more than 44 percent higher than the general population, a median loss of $619 compared to $429 for the general population.
Unfair and deceptive trade practices are defined by Section 5 of the Federal Trade Commission’s Unfair and Deceptive Trade Practices Act. Predatory and deceptive timeshare sales practices include:
- High-pressure and aggressive sales,
- Unaffordable loans, after being told it would be easy to refinance,
- Unauthorized opening of credit card accounts,
- Unauthorized credit card charges,
- A perpetual contract,
- Little or no secondary market
If a timeshare is sold properly, it is of great benefit to a family, but if the timeshare is grossly oversold in terms of being an investment, or being easy to sell, the decision to buy can spell financial disaster. Accompanied by annual maintenance fees and the lack of a secondary market, the buyer can find himself stuck with a timeshare they don’t want or can’t afford, facing foreclosure for the first time in their life. No one can guarantee a release from a timeshare contract. The foreclosure process is demoralizing and stressful. Scams abound, so do not pay anyone upfront money to get out of a timeshare without checking with Inside Timeshare or one of the self-help groups listed below.
Air Force First Sergeant John Kim and his wife Glory, of South Carolina describe their battle with Bluegreen Vacations. John has joined TAG as a volunteer to advocate on behalf of other active duty service members, and to help guide disgruntled buyers through the regulatory filing process.
“My wife Glory and I realized our mistake when we filed our 2017 taxes. We purchased about $60,000 worth of Bluegreen vacation points financed at 16.99%. The first purchase was in April 2017 at The Fountains in Orlando, and the second purchase June, 2017. We had been told the June meeting would be an orientation meeting, but it was just an attempt to sell us more points. We were told at both meetings we could go to our bank and refinance as you would any mortgage. We have learned banks don’t finance timeshares,” explained John. In addition, John reports being told,
- Bluegreen points are an investment, like a mortgage. It was emphasized that we were purchasing deeded property (which it is not), so an investment. We have learned Bluegreen vacation points are a right-to-use product, like joining a fitness club. Managers assured us we were making a sound “financial investment” and in years to come, we would be able to sell our portion of Bluegreen for a profit because we would have a deed to Bluegreen Vacations properties.
- We could deduct the interest from the loan on our taxes, as you could with any mortgage. This was not true.
Bluegreen ignored John. Bluegreen does not report nonpayment of a timeshare loan as a foreclosure, only because Bluegreen and credit reporting agencies Equifax and Experian settled with Finn Law Group in a lawsuit that resulted in 11,000 Bluegreen members’ foreclosure entries deleted from their credit reports. Other timeshare companies do report a loan default as a foreclosure. The Bluegreen decision ruled that timeshare foreclosures were in violation of the Fair Credit Reporting Act. According to timeshare attorney Mike Finn,
Another point to consider is that when the timeshare salesmen tells you to refinance the newly purchased timeshare interest, he or she is not referring to pledging the timeshare interest itself as security because nobody in the financial industry thinks they have any value, however, the danger lies in refinancing and placing a security interest on your residence as with a home equity loan. You save money on interest but you have now placed an undue financial burden on your home and when you come to your senses it’s too late! Had you left your home unencumbered it is a very good possibility that you or an attorney on your behalf could negotiate a cancellation of the timeshare loan as long as it stays with the resort.
“We bought in Florida. I understand the Florida Timeshare Division, DBPR, will in all likelihood, echo Bluegreen’s defense with, ‘You need proof and verbal representations are hard to prove.’ With no real regulation, we want our voice heard. Don’t believe a word a timeshare sales agent says. I filed complaints with the Attorney General for the States of South Carolina and Florida, as well as the Federal Trade Commission, the Better Business Bureau, the Fraud Officer of Orlando Florida Police Department, Department of Defense investigative services for the Air Force, Army, Navy and Coast Guard and the AARP Fraud Watch Organization. Nothing happened. Our message – buyer beware.”
If you, or anyone you know has a timeshare concern, contact Inside Timeshare or a self-help group.
We seek to provide timeshare members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.
https://www.facebook.com/timeshareadvocategroup/
https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/
https://www.facebook.com/groups/180578055325962/
https://www.facebook.com/groups/465692163568779/
https://www.facebook.com/groups/1639958046252175/
Bluegreen Vacations Corp (NYSE: BXG) reported second-quarter earnings Aug. 2 that fell short of analyst expectations. Bank of America Merrill Lynch’s Shaun Kelley downgraded Bluegreen Vacations from Buy to Underperform and decreased the price target from $26 to $19.
Total Q2 revenue of $195 million was beneath Kelley’s forecast of $208 million. Bluegreen reported 8-percent lower tours, while vacation ownership interest sales were up only 3.4 percent year-over-year when the analyst was expecting a 10.4-percent increase.
https://finance.yahoo.com/news/bluegreen-vacations-interrupted-sell-side-190725946.html
Once again a very hard hitting story, it is obvious to everyone, except that is the timeshare industry, that change is needed, no longer should sales agents get rich by telling lies to gain a sale. The companies that employ them should be held accountable, it is no longer acceptable for companies to use the phrase “WE ARE NOT RESPONSIBLE FOR WHAT OUR SALES AGENTS SAY”, they are responsible, they are the employers, it is their product that these agents are selling!
If you have any comments or questions regarding this article or any other published, then use our contact page, Inside Timeshare welcomes your input.
Been contacted by a resale, cancelation or claims company, found one on the internet and you are not sure if they are genuine, then contact Inside Timeshare and we will point you in the right direction.
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