Welcome to The Tuesday Slot, this week another new contributor Reba Brannon, in her article she explains the hardships created by perpetual timeshare contracts which are affecting many elderly owners.
This is not just a problem in the US, it is also a problem in Europe, what we call perpetuity contracts and the difficulties in getting out is a common theme from those who contact Inside Timeshare. It is also the main reason there are so many companies who promise the earth but never deliver.
Again it is a fraud which has been created by the resorts and developers with their unwillingness to allow people to end their timeshare contracts, all for the sake of continuing to receive maintenance fees. Scam companies, many set up by ex sales agents have been a thorn in the side of timeshare owners for years, they started with resale but have now moved on to cancellations and claims.
Spain, which has been the main center of timeshare scams has finally clamped down on timeshare companies and is also very active in the fight against fraudulent resale, cancellation and claims companies. Many of the latter have now started to register in the UK where they are using the UK registered company pitch to lure in the unsuspecting.
On the point of perpetuity contracts, Spain enacted Law 42/98 in January 1999, in this law it is illegal to sell any timeshare for a period of more than 50 years. All contracts must be a minimum of 3 years and a maximum of 50 years, which means that timeshare contracts can have a duration anywhere in between. So theoretically the length can be dependent on the age of the purchaser, so if a consumer purchases when they are 50 the contract can be tailored to say 25 years, giving them ownership until they are 75. It is now a matter of time before all timeshares in Europe will abolish perpetuity.
Now on with Reda’s article.
Americano Beach Resort
The hardship created by Perpetual Timeshare Contracts
By Reba Brannon, an Americano Owner
September 4, 2018
Senior citizens, who purchased timeshares decades ago, often dealing with health obstacles, must now face aggressive timeshare sales agents demanding more money to get rid of what was originally sold to us as an asset. In our 60s, the last thing we need is to spend more money on a vacation plan when we no longer want the one we owned for over 20 years.
My husband Donald and I are both 63. We purchased our Americano timeshare in 1993. The travel package the management company offered us, to allow us out of the timeshare, sounded confusing and convoluted. After so many of us paid maintenance fees faithfully for so long, we now brace for foreclosure. Our timeshare we used and loved for so many years has become a nightmare for many. One member reported there have been about 150 timeshare weeks deeded back to Americano since June 1.
The Americano remains closed after hurricanes Matthew and Irma. It is the only Daytona resort still closed. Americano’s management company, ARC, held a Homeowner’s meeting August 20, 2018. Something is very wrong when a timeshare company won’t post the location of their meeting in fear of owners attending. Though ARC noted the date of the meeting months ago, it wasn’t until about five or six days prior that owners were told WHERE it was. When asked the location, their response was that they would “comply with Florida Statute and notify the owners of the location no less than 48 hours before the meeting.” This may seem minor, but it makes an owner feel that this was done deliberately to discourage attendance. Few attended.
We feel we were deceived into paying 2018 maintenance fees as we were told we would be guaranteed a week at one of their other properties, but after we paid the 2018 fee, they said we could not use our week. Our special assessment was $1,800. Due to the uncertainty, we have not paid it. I think ARC just announced at the August meeting that once maintenance fees for this year are sent out, if you pay them, the payment will go instead toward the special assessment instead of maintenance fees.
Our deeded week was on the ninth and top floor. We loved being on the 9th floor as the view is AWESOME. According to ARC, timeshare owners will not be located above the 6th floor. The top floors are to be reserved for “owned” condos.
If loyal Americano owners, who have faithfully paid their maintenance fees for decades, are short changed at every opportunity, why not just let us go. When we bought the Americano we could get discounted rates for rooms–we had BONUS TIME in addition to our deeded week. The Bonus Time appears to have been taken away.
When we attended update meetings, we found ourselves being pressured into buying (converting) to points, a vacation club package or a second unit. They told us if we didn’t do one of these options then we wouldn’t be able to use our unit. ARC wanted the same price to upgrade as we paid for the unit when we originally bought it in 1993.
After ARC took over in 2016, every year we would deposit our week for the next year before we left the Americano, because when you call to make a reservation no one answered the phone or we were told there was nothing available. However, Americano had rooms available online thru Expedia, and other online booking sites. I always found availability when I went online. Sometimes we just showed up after being told nothing was available only to find when we arrived there were plenty of rooms. Imagine that!! We could book the Americano only because we could find availability online.
We attended the Board meeting March 2018. There were 300-400 owners in attendance. The meeting was angry and chaotic. There was an armed deputy. Owners against the special assessment attempted to voice their opinions without success. In our opinion, the two board members in attendance didn’t seem to address the questions that were asked.
I can’t speak for all members, but if we knew exactly what is going on—we would consider paying the assessment, but we refuse to pay ARC anything else after losing our 2018 week we paid for. In addition, there is the uncertainty of future assessments, the constant demand to pay more money for confusing and unproven vacation plans, and the prevalent anti-owner sentiment.
We stopped by the Americano early August and spoke with Brad, the acting General Manager. We asked Brad questions –he couldn’t or wouldn’t answer. Brad acted as if he didn’t know any more than we did. Brad is very much a part of ARC management. He was the backup security guard at the March meeting.
Our questions,
- When will the Americano open?
- Who can we talk to about paying the 2018 maintenance fees told we could book a vacation?
- How bad is the mold?
Many of us are seniors. Why does ARC not just take back these units if they seem to be trying to get rid of us anyway? Just sell points to new buyers. We all bought so long ago, we would be happy to just give it back, rather than finding ourselves ransomed by high pressure sales.
ARC’s latest threat is FORECLOSURE. After being loyal owners for so long, offer a deed-back over a demoralizing foreclosure. Move on with your new plan.
It’s a sad situation–we were planning on using our unit more often in retirement. We have a lot of money and memories in the Americano. Timeshare today seems one sided. The developer can change any benefit at any time for any reason. With the ease of booking online and Airbnb, I wonder if timeshare could even exist without aggressive sales.
Related article: http://www.americanobeach.com/
Thank you Reba, let us all hope that the timeshare companies in the US take note and reform, if not then the only other option is to legislate on a Federal level and give all consumers the protection they deserve.
Over the next few weeks Inside Timeshare will be on vacation, we will be publishing the Tuesday Slot and Friday’s Letter from America and hope to publish any important information during the week. This will depend on the internet connections available.
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