Another Shining Example of Exemplary Customer Service-NOT

Another example of what can happen if you believe the timeshare sales staff instead of doing some research before even agreeing to the sales pitch. 

As usual, the resort’s answer was ‘you signed the paperwork.’  Buyers have absolutely no idea what they are signing at the time of a purchase. 

Air Force First Sergeant John Kim and his wife Glory, of South Carolina describe their battle with Bluegreen Vacations. 

“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.

Another point to consider is that when the timeshare salesperson 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.”

John has now volunteered to assist other active duty members about what can happen if they are foreclosed on. The consequences can include losing their military security clearance.