Class Action Against Diamond Resorts?

There is an Attorney General complaint under investigation specific to your exact problem. Contact information is available.

michellenmarcc wrote:

We are rught now staying at the polo towers, we we at an "owners update" where they told us out ILX is a "dead deed" and they will get rid of it if we "buy more points" to do so for 23, 000.00 more dollars!!!! I felt we were slipping into yet another scam.... we have 3000 points with ILX and 2000 points with diamond. If duamond bought ILX don't my ILX POINTS BECOME DIAMOND POINTS??? So why on God's green earth would I "re-buy my points?!!!! If my deed is dead what does that mean? I no longer have that deed with ILX? WE ALL NEED HELP!! MUCHELLE

Do you know who is investigating Diamond Resorts? What is the status and scope of the investigation? Do you have any contact information for the investigators? Thanks.

bobt225 wrote:

Do you know who is investigating Diamond Resorts? What is the status and scope of the investigation? Do you have any contact information for the investigators? Thanks.

The Arizona Attorney General is investigating a complaint filed regarding fraudulent sales practices specific to ILX owners who were sold additional Diamond ownerships based on a deceptive sales artifice. A second confidential AG investigation is taking place regarding other practices. A letter outlining sales practices in general or specific to ILX owner experience can to sent to: Send to consumerinfo@azag.gov and ask that it be added to case confirmation number #UG236-Z3WSO.

There is an investigation currently underway by the Arizona Attorney General regarding fraudulent misrepresentation specific to ILX owners who were convinced to buy into Diamond for use of their ILX ownership in Diamond’s system. A brief letter to Az. Attorney general describing any deceptive sales practices can be sent to consumerinfo@azag.gov and ask that it be added to case confirmation number #UG236-Z3WSO.

Michelle, We owned a one bedroom every year with ILX. We were awarded 4200 Diamond points in 2012 for the ILX week when the company acquired ILX, after purchasing 2500 Diamond points. The form we signed said the average number of points to stay one week at Diamond was 5500 points so we purchased 2500 points. Not happy with availability we purchased an additional 3500 points in the same year (2012). Although we have three contracts, we use the 10,200 points as if they are all the same. Our maintenance fees were $2,200 in 2015.

My only complaint with Diamond is that they have barriers in place restricting the use of secondary points to the extent licensed timeshare brokers will not buy or sell them. As a former licensed stockbroker, we would have never bought points knowing they could not be sold through a licensed broker. It did not help to read the contract because Diamond's contract said you can sell points.

I have filed a complaint with the Consumer Financial Protection Bureau. They said to use the mortgage option even if there is no mortgage outstanding. I have also filed a complaint with the Arizona AG since this is where we bought the points. It's very important to file a complaint with the CFPB because they are currently investigating Westgate timeshare. I had to file the complaint orally with the intake person manually typing it. She could not get it to file either, but called me back and we started over generating a new case number.

I know of a good timeshare attorney in Nevada and another in Florida but I don't know if this site allows solicitation even as a referral. It's best to go through the AG and CFPB first because you may get help without the expense of an attorney.

If Diamond would allow sales through licensed timeshare brokers, I would not be spending my golden years as a timeshare advocate. It's not what I had in mind. As the FOX Property Man segment aired this weekend about timeshare recommends, do not go to listing agents or transfer agents if you want out. Unfortunately, you cannot go to licensed timeshare brokers with Diamond. Licensed timeshare brokers will sell all or most of Diamond's competitor's points. I would like to see something like Shell Vacation. They offer a deed back program called "Shell Take Back" and if you want to sell your Shell they provide the phone number of a licensed broker they recommend. If I get our money back from Diamond, we will purchase a vacation plan through a company that offer this option.

Good Afternoon,

I am a consumer protection reporter that covers the timeshare industry and would be interested in learning more about you experience with Diamond. Please contact me at cjohnson@thecapitolforum.com

Suggest you contact Arizona Attorney General with this information. They are tasked with protecting consumers who have been harmed.

A good attorney (general) needs to look into Redemption & Release LLC. I received an email solicitation today. They have a very professional website and a wonderful name. As British Comedians Bird & Fortune explain, (google British Comedians subprime). It's a good name, but not in the sense of being a responsible company. Heck, who wouldn't buy something with a name like Redemption & Release?

When I looked them up on BBB, there was a notice in very bright red that said: ! There is an alert on Redemption & Release Not BBB accredited

If you need a good attorney, call a licensed resale timeshare broker. They have a website called, appropriately, Licensed Timeshare Resale Brokers Association - It's a great website and you can pick a broker from your state. Good luck! Irene Parker

You may want to contact Arizona Department of Real Estate:

Chapter 32 Az. revised statute: 32-2186. Real estate recoveryfund; liability limits; definitions A. The commissioner shall establish and maintain a real estate recovery fund for the benefit of any person aggrieved by any act, representation, transaction or conduct of a licensed real estate or cemetery broker or real estate or cemetery salesperson that violates this chapter or the rules adopted pursuant to this chapter B. 2. Engaged in fraud or misrepresentation while acting as a principal in the purchase or sale of real property and the aggrieved person relied on the broker's or salesperson's licensed status. C. 32-2197.11. Developer supervisory duties D. The developer shall supervise, manage and control all aspects of the offering of the timeshare plan, including promotion, advertising, contracting and closing. The developer is responsible for each timeshare plan registered by the developer with the department and for the actions of any sales agent or managing entity used by the developer in the offering or selling of any registered timeshare plan. Any violation of this article that occurs during the offering activities shall be deemed to be a violation by the developer as well as by the sales agent or managing entity who actually committed the violation. The developer is responsible for the actions of the association and managing entity only while they are subject to the developer's control, as provided in the timeshare instruments or by law. 32-2197.17. Advertising and promotional requirements; telemarketing and promotional employees; presentations and tours, drawings and contests; commissioner's authority; disclosures B. Any advertising, communication or sales literature of any kind, including oral statements by salespeople or any other person, shall not contain: 1. Any untrue statement of material fact or any omission of material fact which would make such statements misleading in light of the circumstances under which such statements were made.

According to Diamond Resort's 2015 annual report, VOI sales (Vacation Ownership Interests) are not subject to real estate regulation or laws because it is not deeded real estate. Real estate regulation does apply to deeded fixed week timeshares. Diamonds VOI points are a lifetime and beyond "interest". I'm told the timeshare industry is the only industry that offers contracts for eternity. The Diamond contract states, "This agreement shall be binding upon and inure to the benefit of the Parties, their respective heirs, successors, assigns and personal representatives." Heirs can normally refuse any inheritance, but not timeshare. I would love to be wrong.

It is extremely important and TIMELY for owner's who feel they have been deceived; to file a complaint with the Consumer Finance Protection Bureau. They are currently investigating Westgate and Diamond is always mentioned in articles pertaining to the Westgate investigation. The investigation is landmark because in the past the CFPB could only investigate lending. The CFPB denied Westgate's petition, so now the CFPB is allowed to investigate sales as marketing, in addition to lending. I think I filed the first complaint, because I could not get it to submit. I worked it out with Henrietta at the CFPB by filing it orally. Fortunately, I know how to write court reports, so we worked well together. Be patient as you dictate. She could not get it to file together. She called me back later that day and said we had to refile. After an afternoon of research she learned owners must select the "mortgage" option even if there is no mortgage. If that doesn't work for you, call Henrietta. This is a free and necessary step which can be done without the aid of an attorney. Irene

Marks 1499, I am very interested in what you have learned. Please do provide me with contact information specific to ILX owners. I deeply appreciate your response and assistance. Sincerely, LW

Are you truly a consumer protection reporter? I would be happy to share our story but don't want to waste my time if you are something other than what you say you are.

Thanks.

LW

I can assure you that I am actually a consumer protection reporter. If you shoot me an email at cjohnson@thecapitolforum.com I can provide you with some additional information. I am only interested in hearing about your experience.

I can assure you this person is a real investigative reporter

I just checked out Clarion Johnson and he's the real deal. I hope that he contributes more information for the purpose of understanding what Diamond Resorts is actually doing. They take over a resort and raise the fees and take control of the HOA. Once they have control they have carte blanche to control every aspect of the timeshare .

The problem is they have the finances and the owners are on their own against the corporate giant. Each owner has to decide what is best for themselves unless a government agency steps in and takes them on.

consumerinfo@azag.gov and ask that it be added to case confirmation number #UG236-Z3WSO this is contact information for the AZ attorney general recent investigation of allegations of sales related fraud, describe your experience trying to get enough ILX owners to contact them to induce action. Also suggest you contact Clarion Johnson at cjohnson@thecapitolforum.com he is an investigative journalist gathering information on Diamond

If you believe that you have been the victim of deceptive sales practices by Diamond sales agents, it is important that you alert the Arizona Attorney and Arizona Department of Real Estate. They are both tasked with stopping these practices when brought to their attention. A letter needs be drafted outlining deceptive statements made by sales agents during the sales process, including statements made regarding your existing ownerships. Names, dates, and locations should be provided if possible. Recent complaints have been filed alleging deceptive sales tactics at Diamond properties with both agencies. Links below will direct you to where they should be sent. Clarion Johnson is an investigative reporter involved with consumer protection who is gathering information regarding Diamond’s practices. Link below provides his email address allowing a copy of your letter to forwarded, which will contribute to his efforts as well. consumerinfo@azag.gov state that your letter should be added to file case confirmation #UG236-Z3WSO http://services.azre.gov/publicdatabase/messagecenter/createmessage.aspx?subjectid=1 From the Department of Real Estate website: The Real Estate Investigators conduct investigations in response to consumer complaints concerning a licensee’s performance of real estate activities and the professional conduct of licensees. Dishonest dealing and disclosure issues are two specific areas listed on their site. cjohnson@thecapitolforum.com /investigative reporter Listed below a excerpts from a Federal Trade Commission policy statement on deceptive sales practices. FTC Policy Statement on Deception | Federal Trade Commission http://www.ftc.gov/public-statements/1983/10/ftc-policy-statement-deception [9/29/2014 10:47:54 AM]

First, there must be a representation, omission or practice that is likely to mislead the consumer. Practices that have been found misleading or deceptive in specific cases include false oral or written representations, misleading price claims,

Most deception involves written or oral misrepresentations, or omissions of material information. Deception may also occur in other forms of conduct associated with a sales transaction. The entire advertisement, transaction or course of dealing will be considered.

The issue is whether the act or practice is likely to mislead, rather than whether it causes actual deception The Commission believes that to be deceptive the representation, omission or practice must be likely to mislead reasonable consumers under the circumstances.

That all sounds fine and dandy. And I hope Diamond (as well as other timeshare companies) does get whipped for such practices. But in order to nail them, there has to be proof of deception at the sales tables. Unfortunately a he-said-she-said argument won't cut it.

That's why the contracts that purchasers sign say something to the extent of "what counts is what's written in the contract and not what the sales person told you". All these timeshare companies have this in their contracts to cover their butts and shield them from the deceptive, misleading statements made by the sales people.

But, if this lawsuit goes forth and Diamond gets nailed, all the power and applause to the attorneys and buyers who made it happen.

The are employees of Diamond who are now reporting these actions to ADRE and the Az. Attorney General supporting the claims of purchasers who have been harmed. They are providing details of how their sales schemes are implemented.

There is deception in the contract. The contract states you can sell points. However, licensed timeshare resale brokers will not buy or sell Diamond points because of restrictions that are too onerous. They will buy and sell Diamond competitor's points. Ads to buy and sell Diamond points are from listing agents that are often not on the up and up and transfer agents. The transfer agent offers a guaranteed deed back for normally $5,000 to $7,000. They then "bundle" 25 to 50 contracts - similar to subprime mortgages. Diamond's transactions are not subject to real estate laws and regulation because it is a VOI - Vacation Ownership Interest. Diamond and other developers buy the bundle as a securitization pool. Read Roddy Boyd's article written for Southern Financial Reporting Foundation: "Diamond Resorts and Its Perpetual Mortgage Machine" March 7, 2016

The Consumer Financial Protection Bureau will accept complaints through the "mortgage" option even if there is no mortgage. I filed my complaint orally and have heard back. It is extremely important to file with them because, a) the CFPB is Federal so not an elected state position. and b) There is a landmark CFPB investigation going against Westgate and Diamond is always mentioned as being on the radar (Matt at BuzzFeed broke the story). Owners who feel they have been deceived should also file with the appropriate AGs. I have filed with three AGS and have heard back from two.

If anyone has questions, I wrote an article that was sent to several stock analysts, so it is information I learned going through the Diamond annual reports with a fine tooth comb. I sent it out to the Licensed Timeshare Resale Broker organization and Lisa Ann, author of Timeshare Vacations for Dummies picked it up and put it on her blog. I think it is still there. At the end of the week on Friday last week, the week my article was up, the Capital Cube posted after the bell (typically not when happy news is posted), the five ETFs (Exchange Traded Funds) with the greatest exposure to Diamond Resorts.

As a former licensed broker, I would have never bought something that could not be sold through a licensed broker. I can live with most of the other things like aggressive sales presentations and limited availability. You can reach me through "Timeshare Insights Blog" if you have questions about the filing process or have information to send me that would help me with my efforts. My Vacation Plan has turned into the twilight zone. But! Thanks to Diamond, I am now a weekly contributor to Jim Cramer's Mad Money "TheStreet". I sent them the article I wrote about Diamond, they contacted me and now I am a weekly contributor having a ball with scary professional editors that make me look like a pro. There's always a silver lining!