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Diamond Resorts International Complaints & Reviews - Fraud and cheating

Diamond Resorts International Contacts & Informations

Diamond Resorts International

Posted:    Lucas

Fraud and cheating

Complaint Rating:  97 % with 67 votes
Contact information:
Diamond Resorts International
United States
diamondresorts.com
My wife and I have ownership interests in the Flamingo Beach Resort and the Flamingo Beach Villas in Sint Maarten. These properties were acquired last year by Diamond Resorts International.

When we purchased the time share weeks the initial Maintenance Fees were set in the contract but the contracts were mute with regard to inflation but we were assured that the rates would follow the local inflation rates in St Marten. We have just received our invoice for this year and find that our fees have increased 34% and 42% respectively. When I expressed concern over the increase to Diamond Resorts International I was told to 'get a lawyer'.

If we do not pay the fees we forfeit the properties and our initial investments. We feel that the increase is unconscionable and intended to force owners to abandon their investment so that the properties can be resold.

We understand that a class action suit is being mobilized by a local law firm in Sint Maarten on behalf of owners to address the Maintenance fee increases and the purported use of capital reserves to pay debts. We have also contacted the Attorney General for our state. It is hard to imagine that firms like Diamond Resorts International can operate in such a heavy handed way.
Comments United States Products & Services
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 17th of Feb, 2009 by   mariwhyte 0 Votes
I am in the process of paying that "maintaince" fee which had indeed gone up, for my points three hundered dollars in one year. I feel like a real jerk as I have been working so much that I have not been able to use my benefits since I purchesed them ten thousand dollars ago. I would like to keep abreast of this class action suit. I don't know whether I should pay my entire loan amount and rid myself of the 15% interest rate or try and sell this thing which has become quite the white elephant. I can't really continue to afford this and will be working toward getting something out of my money invested some way...maybe really take a vacation on them, eh?
 1st of Apr, 2009 by   Patricia 0 Votes
We are in agreement with the complaints about the "maintenance fees" mainly because we understood that we were no longer owners and paid our last payment. We now find out that we in deed are paid up but are required to pay enormous fees even if we are not involved anymore. We in no way can pay these fees and if our credit rating if affected they will indeed have a lawsuit on their hands. this is a shaby way to run a business or should I say a Ponzi scheme? We want OUT
 1st of Apr, 2009 by   Michael Hill 0 Votes
We have been with Diamond Resorts for two years and our maintenance fees went up 40%. We thought that was ridiculous and tried to talk to them. They kept stating if you don't pay you will be sent to a collection agency. Does anyone know more about the class action suit?
 11th of Apr, 2009 by   Paul 0 Votes
Yeah we were asked to suddenly pay way more in maintenance fees too. What is the update on this class action suit?
 9th of Jun, 2009 by   Mary Lou Granato 0 Votes
We are so disgusted with the Maintenance Fees. It is a disgrace that we have no say, and there is no ceiling or cap on the fees. We would like to be part of the Class Action Suit, and so would other owners whom we have met, but were not aware of this suit. I will certainly e-mail my friends and advise them of this action.
The Reserve Fee attached to the Maintenance Fee is also another bone of contention. Diamond Resorts states that this is for Hurricane damage. I would think that the insurance on the property would cover repairs. Where are these funds going? Are they used to purchase other properties?? We would like to know the real story.
Mary Lou Granato
757-547-7199
 7th of Jul, 2009 by   Jackie Cox 0 Votes
I purchased 10, 000 dollars worth of points in 2006. I found that when the dues for 2007 came in it was much higher than I had been told and there were several line items that made no sense. I had just had knee surgery and put the invoice aside to call once I was up and around. By the time I contacted them they said that I could file an appeal but there was no guaranty that they would agree to let me pay the fees and re-activate my points. By the time that I talked to another cusotmer service representative, they said my points had aready been taken and the appeal had been denied. I had also purchased $4000.00 more points to add to my original purchase so what I was left with was only 1000 points that I could do nothing with which I am still paying a monthly fee out of my checking account. I have refused to pay more fees to them and noticed when I checked my credit report that the balance of $2958.00 is now listed as in collection even though I have not missed any payments. This company has ripped me off. I thought at first that I must have caused the problem because I was late paying the dues because of my knee surgery and the fact that the fees were so high that I should have called and taken care of it quicker than I did. I then realized that there are others that have also had this happen. I would like to get in on a law suit if there is one.

Jackie Cox
jbcox@aquaamerica.com
Ripped Off in Virginia (Williamsburg)
 10th of Jul, 2009 by   D. Anne Snyder 0 Votes
I originally purchased "fixed" timeshare weeks from Pelican Resorts, NV at the Royal Palm Beach Club 17 years years ago. Since then, the property has changed hands a couple of times, Sunterra, et al.

As a senior on a fixed income, I can no longer afford the ridiculously high maintenance fees and opted to walk away from one of my four weeks in /09 (could only pay for three this year, which I rented out a loss).

I have been informed by Diamond that I am not permitted to "walk away" and that my lease is now terminted; further, that interest will increase on the original payment due and, if not paid, the account will be placed in a collection agency.

What I ask is this? If I surrendered my week, why would I continue to be charged for a product I am no longer using? Would this stand up in a court of law?

Originally, I paid thousands of dollars to purchase these, with an annual maintenace fee of $350. per week. I did expect the fees to rise over the years, which they did, but from $900. US in 2008 to $1, 200. US in 2009 is way out of line from past history...

Am I beholden to Diamond Resorts or to the original contract I signed?
Help! I will join class action lawsuit in a heartbeat...DA Snyder
 11th of Jul, 2009 by   Patrick Duffy 0 Votes
Yes, years ago you did engage in a contract and through the many changes of hands your contract is a contract.
However, if you have not called DRI- Hospitality Management...you should.
Call Patrick Duffy, Chief Experience Officer at 702-823-7660. Or email at patrick.duffy@diamondresorts.com
 26th of Jul, 2009 by   Bug2 0 Votes
I just want Diamond to know that I was considering purchasing but I am so glad that I am not now! They should be ashamed of themselves. I just learned in the presentation that they purchased 59 new properties this year due to the economy so yes, folks, that is where your maintance fees must be going!
 31st of Jul, 2009 by   Patrick Duffy 0 Votes
Dear Bug2,
Your facts are VERY incorrect. Diamond Resorts has not purchased any properties. We have affiliated (for the benefit of our member base) with 50+ properties at NO impact to your/my management fees.
Patrick C Duffy
Chief Experience Officer
 12th of Oct, 2009 by   markmil1 0 Votes
I bought units at Flamingo (St Martin) back in 1998. I even upgraded to the "Villas" in 2002. This was under Sunterra and Maint. fee's were reasonble (started at $299/yr). Since DRI bought them, each YOY (year on year) has gone up extravagantly. My last bill was $1200. I spent two years escalating t0 all above (duffy, etc). Kept getting the rhetoric of 'everything goes up and hey..you got new alarm clocks and pillows!). Even tried to divert me to buy points from fixed...Wow..thats smart..Let me get less time and even pay MORE in maintenance fees!

I joined the lawsuit in St Martin and like everything in the islands, its going slow. Clearly the money is being rediverted as per the annual budget statements. New line items appearing such as "management fee's.'. I suppose when Jules left it should have been a sign.

In any event, if they (DRI) would just "do the right thing" and charge "reasonable" fees, most would be happy with a purchase, that lets face it, isn't a investment..Its purely an emotional buy.

Mark Miller
Charlotte, NC.
 12th of Oct, 2009 by   Patrick Duffy 0 Votes
Thank you Mr. Miller...
We (DRI) want only what is best for the resorts/members/owners...Reasonable fees require that we (DRI) look at every resort and insure each resort has the financial stability to stand on its own. The former company's business model (after 2 bankrupt proceedings) left many resorts in less than stable financial position. We are certain you will agree that while the cost has risen so have the standards. And the standards are what our owners and members rely on when they vacation. Our owners and members are willing, and desire to pay for the standards DRI is known for.
Thank you for your concern,
Patrick Duffy
 13th of Oct, 2009 by   Kybozeman 0 Votes
My husband and I too would be interested in a class action suit. This company prey on people's dreams. We paid 10, 000 up front to Embassy Resorts Vacation in Hawaii. All of our infomation(ss#, work #) is on our paper work they never contacted us. We asked them on several occasions to send us the paper work saying we were forclosed on for a late maintaince fee. Some how 1o, ooo dollar for a $200 dollar payment doesn't seem fair in any system I've ever heard of. They never sent us the copies of anything we asked for except one copy of a not signed for certified letter to an old address. We still receive all of our book and offers from RCI and we had just exchanged to go to Kona in summer of 2007. We had updated all our info. Everytime we call all we get is sorry one guy they transferred me to named Dan Hill asked me "are you finished yet" I told him he was very rude it wasn't his property that the company he works for Took! I also talked to a lady named Chanita and she told me to leave a man Jack a message and he would get back to us in 3-5 days we left two messages 2 wks a part and never heard back from them. I don't believe their interested in good customer service, their interested in making a profit which that is what a company does but without good customer relations and customer service they they will not prosper. I thinks it very unfortunate that companies do business like this with no regard for the people who have already paid. I was explaining to Dan that this company did not want to continue doing business with us. My husband is fairly well know in Northern California so were able to google him with all our information and we participate in credit monitoring we were never notified in anyway social, google, work phone or the credit monitoring. We get together in our groups and share our stories of what a awful experience
this has been. I feel bad because we have recommended our friends for their siminars and some have went and were actually thinking of buy or have bought. I tell them the new company is not what we bought into. Bware!
 13th of Oct, 2009 by   Patrick Duffy 0 Votes
Katrina,
We (DRI) mailed you notice on 2/15/2008, followed up by "Affidavit Regarding Mailing". Then certified mail on 4/23/2008, which the return receipt was signed for. The amount was $1, 251.00, not $200.00. Please be accurate.
Foreclosure notice was published in April and May of 2008 according to Hawaii Revised Statutes. (HRS)
The property was forclosed on 7/1/2008 and you called on 7/3/2009...
We have a management duty to the HOA to manage the property according to the CC & R's and all related HRS.
While we do have a business duty to the HOA, we do afford each member/owner every opportunity and many options to retain ownership. I am sorry for the outcome, but writing of this in an open forum requires a sound rebuttal of facts by DRI.
If you have any further questions please feel free to email me at;
patrick.duffy@diamondresorts.com

Respectfully,
Patrick Duffy
 23rd of Oct, 2009 by   kanga 0 Votes
Diamond Resorts International certainly need to be investigated in their dealings on the island of St Maarten.
They are ONLY ripping off the owners and in fact where do they pay the taxes on all thos fees they collected if none of it is paid on St Maarten and how much of it returns to do the maintenance.
TOPPERS is taking over the beach. Do they have a building permit for the construction on the beach and the new landing for people to come by boat to the restaurant?
Wonder if Immigration know about this new dock?
DIAMOND RESORTSINTERNATIONAL
Stephen Cloobeck answered one of those emails and HE is the owner of Diamond Resorts International; he says to write to him?
Never possible!
 23rd of Oct, 2009 by   Patrick Duffy 0 Votes
Have you corresponded with Diamond Resorts? Reads as if you are corresponding with parties that cannot help your situation.
Who did you purchase from? Did you look at the property before buying (Toppers restaurant)?
Who is responsible for the MFees? You or the person you purchsaed from? How did Diamond Resorts come upon your credit card? Did you get a bill from Diamond Resorts International?

Before you write misinformation, your facts should be clear. Please email with your contact information to

patrick.duffy@diamondresorts.com

Patrick Duffy
Chief Experience Officer
 9th of Dec, 2009 by   gm1 0 Votes
I am so disgusted with the Maintenance Fees. It is a disgrace that we have no say, and there is no ceiling or cap on the fees. I would like to be part of the Class Action Suit, I have been a owner of Greensprings since they where built .Three years ago I signed on with Diamond Resorts and Not Ever Would I Believe That They Could Ever Take Advantage Of Owners That Pay There Maintanance Fees . And I do understand that times are hard for everyone and we all want a nice place to vacation.But the Ceo of the company should of been upfront with the owners and either offered more points for members that have to pay for the maintanance fees for others that haven't paid. And all Resales should go back into our maintanance fees, so we could off set it for years to come.

gmerola1@hotmail.com
 10th of Dec, 2009 by   Patrick Duffy -1 Votes
The CEO does not decide your HOA maintenance fees...Your HOA board does and you have an annual opportunity to vote??

Therefore, if we (DRI) can be of any assistance you will get a assured response by emailing or calling me at;

Patrick Duffy
Chief Experience Officer

patrick.duffy@diamondresorts.com

702-823-7660
 15th of Dec, 2009 by   ricster54 0 Votes
Mr. Duffy, I've been an owner since 1999. I'm ready for Diamond Resorts to buy me out. I have $ 15, 000 invested. When we started in 1999 my fees were $ 375/year. 2008 they hit $850. and in 2009 they took a 50% jump to $ 1250. and this year they jumped another 10%. I figure since my maintenance went up 50% in 2009, my points should be worth $22, 500. or more. What is it worth to your company? I will make you a deal. I will sell it back to Diamond for what I have invested . I was told back when I purchased this timeshare that it was an investment in my families future. I am willing to take a lose.
You mentioned that the board of director set the fees. Well I have been reading that many of the board member are related in some fashion to the management, so the deck is stacked against us owners.

When Diamond bought out Sunterra I felt it would be a good thing for us owner/investors, but I'm really disappointed. I want answers on how to recover my investment. Can you help?

Rick Eyman
reyman52@gmail.com
Diamond Resorts owner
 11th of Feb, 2010 by   sowelka 0 Votes
Mr. Duffy, I too have been a long time owner, since 1998. My husband and I have an investment in the Flamingo Beach Resort on the island of St. Maartin. Over the years the maintenance fees have skyrocketed. The property has been well maintained, it's grown since my original purchase, and it's been renovated. However, there is legitimacy in the complaints with maintenance fees since Diamond Reports have taken ownership.

Surely there is something that can be addressed to owners, confirming to them their loyalty to their investment isn't a "money-pit". It's a business, I understand that all too well. But what customers need to know is that they haven't been duped and that these maintenance fees will either come under control or be capped after a certain amount. What is an owner to think when they started paying $250-$400 for a few years, the company changes hands from Cendant, to Sunterra, to Diamond, and then their maintenance fees are increased to well over $1, 000. When DOES it end?

Diamond has to realize that people can now pay $1, 000 for airfare, an all-inclusive resort, and flexible dates for travel. The travel industry is evolving. Diamond Resorts needs to listen to their customers, or they too will find themselves out of a company. And if lawsuits do continue, nobody wins.

I would love constructive feedback. I'm just disheartened by the comments and feedback I receive when I myself call to criticize the situation.
Kay Sowell
moxiekay@hotmail.com
Diamond Resorts owner

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