Westgate Change in Policy - Is it Legal?

I have owned a week at Westgate Vacation Villas for quite a number of years that was purchased on the secondary market. I have never actually stayed at the unit. The first few years I would deposit with Interval but then we just started doing an internal exchange for other Westgate Resorts.

In general I have been pleased with the process but Westgate has now changed their policy with regard to exchanges. They now charge $450 for an exchange for owners who purchased their unit on the secondary market versus $150 for those who purchased directly.

This leads to two questions:

1) I recognize that it is a developer exchange so while I think it is morally wrong to in effect decrease the value of a unit as the exchange was part of the bargain the original owner had (that I purchased) it is not covered by the written contract. Still, it was part of the bargain and it seems like the equivalent of violating the agreement. Does anyone have any suggestions on potential legal claims?

2) In looking at the Westgate Owners Agreement, I see that the right of first refusal was not in the initial agreement and was added later. I know this change was made a number of years ago but did owners sue over this change which had the practical effect of hurting timeshare resales?

If some people sued over this change and lost I would think my odds of finding a basis for a claim on the exchange fee change would decline.

Anyway, this is somewhat rambling and I hope it makes sense. I am kind of in the mood for a fight over this even if my odds of actually prevailing in court are small.

My wife and I are in the same situation. The policy was changed in an amendment made to the CCR in March 2009. We purchased our resale in 2011. Did you purchase your resale before 2009? If you did, did you receive a copy of amendment nine made to the CCR? Did you receive any notification of this change in policy?

Westgate did have first right of refusal to purchase the timeshare we bought. How does that negatively affect resales? Either way, the seller would get their price.

Right now I am in the process of investigating the legality of the arbitrary change.

jeffb179 wrote:

1) I recognize that it is a developer exchange so while I think it is morally wrong to in effect decrease the value of a unit as the exchange was part of the bargain the original owner had (that I purchased) it is not covered by the written contract. Still, it was part of the bargain and it seems like the equivalent of violating the agreement. Does anyone have any suggestions on potential legal claims?

What is verbally stated has no bearing in a court of law .... the written contract is the only legally binding standing. Were the previous exchange fees stated in your contract? If not, then I'm afraid you're out of luck.

Developers can (and do) change the rules. Wyndham just recently changed some of their rules.

Hi Folks, I ran into the same issue saturday 4-27-2013 when i called westgate to book my week. Now I understand I have to pay the $150 fee to change my week but $450??? I was enraged and then told they always had this rule but was never enforced (lie). So today, i decide to go to the westgate owners site and book it thru "reservation request". I do that and at the bottom after you put in your credit card info and check availability for my dates, you see a hyperlink that says "user agreement". Need less to say, in this agreement it specifically states that if you reserve a week online, you pay $140. If you reserve it via a representative you pay $150. I will wait til tomorrow to see if my reservation request gets granted and see if they charged me $140 or the $450. If it's the $140, fine, if the $450 I will call my credit card and cancel that charge and then call them up as I printed out the "user agreement" today on 4-29-2013 that states what charges I agreed to pay when I made my request!! See the user agreement I printed from westgate below, printed today on 4-29-2013! Terms and Conditions for OAM Rental Reservation Deposit Policy A standard one-night deposit with a credit card is obtained to guarantee a reservation. The standard deposit is calculated based upon one-night's room rate plus applicable taxes. Full and final payment is due upon arrival. Rental Reservation Cancellation Policy Cancellations, unless otherwise stated, must be made 72-hours prior to arrival by 4pm hotel time in order to avoid a one-night's room rate, resort fee, and applicable taxes penalty payment. Deposits are refundable, if you cancel within your cancellation window. If No Show occurs, you will be charged for one night's room rate plus applicable taxes. Reservations are not transferable, and reservation name changes are not permitted. Developer Exchange Fee Deposit Policy The Developer Exchange Fee of $140 online or $150 with a customer service team member is required at the time of booking. Some exchanges also require an additional seasonal upgrade fee. The fee(s) are due at the time of booking. Fixed and Float Week Owners also pay a Developer Exchange Fee, when using a deposited week. Developer Exchange Fee Cancellation Policy If you are a Fixed Week Owner, any travel date cancellation or change, after the reservation has been confirmed, will result in a Developer Exchange Fee of $140 online or $150 with a customer service team member. If you are a Float Week Owner, the first cancellation or change outside of 60 days of arrival will not result in a fee. After the first cancellation or change outside of 60 days of arrival, any other cancellations or changes outside of 60 days and any travel date cancellation or change within 60 days of arrival will result in a Re-booking Fee of $140 online or $150 with a customer service team member. Bonus Week Deposit Policy In order use the Bonus Week, a fee of $499.00 inclusive of all applicable fees and taxes shall be collected at the time of booking and confirmation of the reservation. Bonus Week Cancellation Policy Advance deposits are refunded provided your Bonus Week reservation is canceled at least 14 days prior to the scheduled reservation. Failure to arrive on the scheduled date may be subject to a cancellation fee. Any new reservation shall be subject to a $150.00 rebooking fee which shall be payable at the time of the new reservation. Bonus Week Certificate cannot be renewed, extended, modified, or transferred. Lock-Off Fee Deposit Policy The Lock-Off Fee of $140 online or $150 with a customer service team member is required at the time of booking. Lock-Off Fee Cancellation Policy If you are a Fixed Week Owner, any travel date cancellation or change, after the reservation has been confirmed, will result in a Developer Exchange Fee of $140 online or $150 with a customer service team member. If you are a Float Week Owner, the first cancellation or change outside of 60 days of arrival will not result in a fee. After the first cancellation or change outside of 60 days of arrival, any other cancellations or changes outside of 60 days and any travel date cancellation or change within 60 days of arrival will result in a Re-booking Fee of $140 online or $150 with a customer service team member. Re-booking Fee Deposit Policy The Re-booking Fee of $140 online or $150 with a customer service team member is required at the time of booking. Re-booking Fee Cancellation Policy If you are a Fixed Week Owner, any travel date cancellation or change, after the reservation has been confirmed, will result in a Developer Exchange Fee of $140 online or $150 with a customer service team member. If you are a Float Week Owner, the first cancellation or change outside of 60 days of arrival will not result in a fee. After the first cancellation or change outside of 60 days of arrival, any other cancellations or changes outside of 60 days and any travel date cancellation or change within 60 days of arrival will result in a Re-booking Fee of $140 online or $150 with a customer service team member. Split Week Fee Deposit Policy The Split Week Fee of $70 online or $80 with a customer service team member is due at the time of booking the second reservation. This benefit applies to Float Owners only. Unfortunately, Fixed Week Ownership type does not allow split weeks. Split Week Fee Cancellation Policy If you are a Fixed Week Owner, any travel date cancellation or change, after the reservation has been confirmed, will result in a Developer Exchange Fee of $140 online or $150 with a customer service team member. If you are a Float Week Owner, the first cancellation or change outside of 60 days of arrival will not result in a fee. After the first cancellation or change outside of 60 days of arrival, any other cancellations or changes outside of 60 days and any travel date cancellation or change within 60 days of arrival will result in a Re-booking Fee of $140 online or $150 with a customer service team member. Supplemental Week Deposit Policy In order to use the Supplemental Week, a usage fee equal to the prevailing year’s maintenance fee and property taxes shall be collected at the time of booking and confirmation of the reservation. Supplemental Week Cancellation Policy The Supplemental Week is refundable and transferable. Travel Insurance Cancellation Policy The protection plan is fully refundable within 10 days of purchase, provided the traveler has not traveled or filed a claim.

I think if you fight them on this, they will back off because of the written documentation on the website at the time you made the exchange but I think they will just go in and modify it so you won't be able to use it next time. Westgate does everything in its power to make resales worthless and force buyers into buying direct. Unfortunately an "internal exchange system" isn't guaranteed as part of your deeded rights. It is a perk offered by the developer and you are free to exchange through other systems like II or other independent exchange companies and if Westgate wants to charge more to resale owners to use the internal exchange system they can.

You are probably right, they could modify the user agreement on the website. But when I bought my resale several years ago, nothing in my documentation or on the westagate owners guidebook states they are going to charge me $450. I wasn't notified via email, mail or phonecall about this new charge and people who bought directly to exchange their week will pay the $140-$150 but somehow resale owners are less of an owner and have to pay triple? Once I get this straigtenned out, I will bank it with II. TY for responding!

UPDATE

So westgate emails today 4-30-13 and says- your dates are confirmed- we charged your credit card $440, you saved $10 by booking online! So I called them. I had my husband speak because a man has more presence on the phone then women sometimes and he can argue and debate until the cows come home. So he said when I requested the dates, I agreed to the "terms and conditions" and had to check the box and give my credit card#. In those terms and conditions it states if a fixed week owner makes a reservation online, they pay the developer exchange fee of $140 and if I made it with an agent $150. He said that's the contract I agreed to, I have it in writing. You have nothing in writing stating you are going to charge me $440. You can tell me you are going to charge me $2,000 but you have nothing in writing and I have a legal document. That response prompted a supervisor who didn't want to get on the phone but ask for a copy of this "user agreement" even though I told them it's on their owners website once you request a reservation online and give your credit card #. Anywho, we keep the woman on hold and scan and email the agreement. That prompts a 2nd supervisor to come on the phone. A man this time, who states again, we are a resale. Again my husband says he doesn't care, we are owners with a legal binding contract that states we will pay $140 of which we agreed to. Then this guy says I should have gotten an email prior to the confirmation email stating I will be charged $440 if I agree to the reservation (I never got any such thing). I said I never got this email. He says he will have to review my emails that were sent and if he doesn't see where they told me about the $440, he will reimburse my credit card $300. He is to call me at 10am tomorrow to see what he finds out. I can tell you, if he plays this stunt again with this $440 I will tell him I am going to file a complaint to the Dept of Business and Professional Regulation 850-488-1122, file a complaint with the fraud hotline 1-866-966-7226 and file a complaint with the Attorney General Pam Bondi www.myfloridalegal.com and cancel my credit card for the $440. And if he wants to take legal action, that's fine, we'll be moving there in a month, we'll see them in court! I'll update how this conversation goes tomorrow.

dawnm269 wrote:

You are probably right, they could modify the user agreement on the website. But when I bought my resale several years ago, nothing in my documentation or on the westagate owners guidebook states they are going to charge me $450. I wasn't notified via email, mail or phonecall about this new charge and people who bought directly to exchange their week will pay the $140-$150 but somehow resale owners are less of an owner and have to pay triple? Once I get this straigtenned out, I will bank it with II. TY for responding!

I would think you're agreement would be 'grandfathered' if there is no such wording in your contract .... how about telling them that.

I am going to read my contract tonight, it's been years since I did. The woman said it was line 8. I don't know about grandfathering. I think grandfathering isn't required, it's just a nicety if they do it. But they are money hungry.

Well, as luck would have it, the guy didn't call me today. I called and he took the day off! So I told the woman on the phone the story but she said the guy has to talk to me. I will be calling him tomorrow.

Update again

I called westgate Friday. I was speaking to a rep. Again, the supervisor I needed wasn't in. I ask for another and we go back and forth. In the end, they agreed to refund me $300 and tell me that next time, it will cost me $440. I said it won't unless you change the terms and conditions on the owner reservation site! Again I tell her this is a westgate problem, not mine. She said I should see my refund in 7-10 days. I said I will watch for it and if I don't get it, I will be calling back. Com here on out I will be banking my weeks with interval!

UPDATE

I rec'd my $300 refund. So if you are a resale owner, and you book your reservation online thru the Westgate owners site, notice where you put in your credit card info, there is a hyperlink for "user terms and agreements" and you must "check" the box, click that and read it. If it says you will pay $140 exchange fee online or a $150 using a representative to book your reservation, then you've got them! They can't charge you more than the $140-$150 to make your reservation!! So if they charge you the $440-$450, fight them on it, print out the "user terms and agreements" and fax it to them and demand your refund like I did!

This sounds like the perfect situation for a class action lawsuit against Westgate. I do not see how they can justify treating resale buyers any differently than direct buyers. The unit had to be sold direct at some time in the past. They already got their asking price for it. This would be like a second homeowner not being allowed to use the amenities provided by his neighborhood, pool, parks, etc. simply because he isn't an original owner.

Does anyone know class action lawyer? They can make money and we can keep our fees low.

jaey5 wrote:

Does anyone know class action lawyer? They can make money and we can keep our fees low.

Would be nice if one popped up but I decided not to do it. Instead will just start exchanging my week outside of the Westgate system. David Siegel is a scumbag with very deep pockets.

I do not believe this is legal and would gladly participate in retaining counsel to proceed..When we purchased our timeshare we were told by the WESTGATE TIMESHARE SALESMAN that our deed could be transferred to our family or friends with the same rights as originally sold to the original owners "Just like a Deed to a house or Condo" ..We purchased a 2nd timeshare from an individual on a resale that now cannot be banked without a $450 fee instead of the $150 fee by the one sold originally from the Westgate salesman..If anyone has spoken with a lawyer or recommends one in Orlando.. please post the contact information ..thank you~!

renees238 wrote:

I do not believe this is legal and would gladly participate in retaining counsel to proceed..When we purchased our timeshare we were told by the WESTGATE TIMESHARE SALESMAN that our deed could be transferred to our family or friends with the same rights as originally sold to the original owners "Just like a Deed to a house or Condo" ..We purchased a 2nd timeshare from an individual on a resale that now cannot be banked without a $450 fee instead of the $150 fee by the one sold originally from the Westgate salesman..If anyone has spoken with a lawyer or recommends one in Orlando.. please post the contact information ..thank you~!

One more time .... what is verbally stated by a timeshare sales person has no bearing in a court of law .... the written contract is the only legally binding standing. Were the previous exchange fees stated in your contract? If not, then I'm afraid you're out of luck.

It isn't correct to say that only what is written covers the agreement, at least in Florida. Florida Consumer Protection Act would potentially provide some relief as the act is unconscionable in my mind. §501.204.

Imagine you would have to find an original buyer (not secondary market) to bring suit but I think it would succeed as the practice has the effect of retroactively seizing the property of the buyer.

There are probably other ways of taking action in court but that is one I think would have a chance of succeeding based on my very limited understanding.

jeffb179 wrote:

It isn't correct to say that only what is written covers the agreement, at least in Florida. Florida Consumer Protection Act would potentially provide some relief as the act is unconscionable in my mind. §501.204.

Imagine you would have to find an original buyer (not secondary market) to bring suit but I think it would succeed as the practice has the effect of retroactively seizing the property of the buyer.

There are probably other ways of taking action in court but that is one I think would have a chance of succeeding based on my very limited understanding.

The problem is unless the verbal agreement was tape recorded with proof then there's no way to verify what was said = "he said, she said"

You would think that any company would do all that's in its power to support the value of its product on the secondary market thereby allowing them to sell the product at a premium, but it seems like Westgate is doing just the opposite. By limiting the benefits of these units bought on the secondary market they diminish the value of ALL their properties. In no way would I even consider a Westgate property now that I see how they treat their customers. What do they think owners should do, keep them forever? This limits the value of their properties that someone bought new from them, not that there is much value used as it is, their actions decrease it even more. And why, so David Siegel can complete the castle he's building?

Since my issue last year with this $450, I banked with Interval and avoid dealing with Westgate. As of last week, Mr Siegal bought the Cocoa Beach Pier in Cocoa Beach FL. I guess he got his money issues straightened out and I bet Versailles has been finished since he started charging the $450 to resale owners. I will be selling my Westgate this year, so Mr Siegel can have it back.