After reporting on the timeshare industry for almost 18 years, very little shocks me any longer.
I nearly fell off my chair when reading this, however. Here is a section of Diamond Resorts’ (at the time Diamond Resorts International annual report dated December 31, 2015. This is unedited, I merely added boldface type to call attention to a few points. VOI stands for vacation ownership interests.
"We are subject to extensive regulation relating to the marketing and sale of vacation interests... all of the countries in which we operate have consumer protection and other laws that regulate our activities in those countries. The cost of compliance with such laws and regulations can be significant, and we cannot guarantee that we will at all times maintain compliance with all such regulations and other laws. Moreover, from time to time, potential buyers of VOIs assert claims with applicable regulatory authorities alleging unlawful sales practices by the developers of the Diamond Collections and Vacation Interests salespersons. Actions by regulatory authorities, in response to these claims or otherwise, could result in our having to make modifications to our business practices or policies that adversely affect our VOI sales or other business activities and could have other adverse implications for us, including negative public relations, potential litigation or regulatory sanctions...violations of these laws, policies or principles to which our operations are, or may become subject, may limit our ability to collect all or part of the principal or interest due on our consumer loans, may entitle certain customers to a refund of amounts previously paid and could subject us to regulatory investigations or actions, fines, penalties, damages, administrative sanctions and increased exposure to litigation, and may also impair our ability to commence cancellation and forfeiture proceedings on our VOIs."
What is your takeaway from this? Like I said, I’m shocked. I can’t imagine any company in any other industry readily admitting what this company just did.
And you want to purchase a timeshare, why?
7 comments:
Timeshare is subject to no regulation in Florida and Nevada, based on hundreds of complaints filed by timeshare members, assisted by our volunteer advocates. All have been dismissed with "You have no proof" or in Florida "Verbal representations are hard to prove." Fortunately, other state regulators are listening and some AGs have reached settlements. Members need to get off venting sites like Trip Advisor and file regulatory and law enforcement complaints. It is only through volumes of complaints change happens. If moms and dads had not expressed outrage, Mylan EpiPens would still cost $600. We learned the Florida timeshare division only acted on 110 out of 2,630 timeshare complaints filed from April 2012 to April 2014.
This is unbelievable!!! Unfortunately no one reads this far!
I'd have liked to have had the opportunity to read this before even going to a diamond presentation! They are the DEVIL!
So Diamond is above the law? Let's nail the bas...ds!
Having come retired from a large bank and dealing with reviews from regulators on a continual basis I still find it amazing timeshares have dodge regulation with the amount of money and consumer fraud in this industry. DRI clearly has no moral obligation to its customers and no interest in being a good company where its customers would help them sell the product for them. I pray national media exposure will soon force accountability to those greedy people who have destroyed to many vulnerable lives. One of the most shameful companies I have ever seen in my life.
DRI should not be above any laws...this company shows no clarity, accountability, transparency, or trust to the consumers whatever. DRI is a deceitful and disgusting company that the general public need to stay clear from any of their lying criminals sales reps presentations. They only want your hard earn money, so buyers beware. My advice do not even attend.
They get away with this and are so bold as to put it in writing. Very Scary and shameful.
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