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Diamond Resorts / association dues

1 HI, United States Review updated:

To whom it may concern;
My wife and I purchased an 8 day 7 night stay at the Kaanapali Beach Club Resort for $1, 100 back in April of 2007. We pre purchased the stay for March 28th 2008 through April 4th 2008. We had sat through Sunterra’s timeshare presentation and did not buy so they offered us to stay at that rate if we purchased the stay at that time. One of the conditions to stay there was that you had to sit through the timeshare presentation again.
When we went there this year we had found out that Diamond Resorts had bought out Sunterra sometime in 2007. Our salesman was Johnathan Wise. When we were going through the presentation we asked him specifically, ” If we purchased the timeshare today, when would our first association fees be due?” He told us we would not owe any dues till November and those dues would be for 2009. Mind you the total cost of our timeshare was over $14, 000 dollars.
Sometime in early June I received a bill from Diamond Resorts Hawaii Collection Members Association. The bill is for $674.05. I called the number for the association and talked to a representative who told me I signed a contract and no matter what the salesman said I owe this money and that was that. I asked to talk with a manager and he refused my request. Along with the bill they sent a copy of the 2008 budget. On the back of the budget it shows that the 2008 dues were due on January 1st 2008 and would be considered delinquent if not paid in full by January 31st. We purchased our timeshare on April 1st 2008. Diamond Resorts had their 2008 budget for association dues and at the time of our presentation and they never disclosed that budget to us. They only had a 2007 budget that was in our disclosure package and it was the Club Sunterra Association Budget.
After looking at the two budgets, which are night and day in difference, and now knowing that we would be paying an additional $1, 348.00 in association dues before we would ever be able to use our timeshare, WE WOULD NEVER HAVE PURCHASED the timeshare based on the financial aspects of the deal.
I have taken some time to read through the disclosures and bylaws they had given me and have found where Diamond Resorts is in violation of Hawaii’s Department of Commerce and Consumer Affairs Chapter 106 Time Sharing 514E-11.3. Enclosed is a copy of Hawaii’s chapter 106 laws and remedies 514E-11.3. Diamond resorts and RME are in violation of section 16-106-2.5 Conduct (a) To fully protect the general public in its timeshare transactions, every registrant shall conduct business in accordance with this section. (c) The registrant shall ascertain and disclose all material facts concerning every time share interest so that the registrant may fulfill its obligation to avoid error, misrepresentation, or concealment of material facts. (f) The registrant, for the protection of all parties with whom the registrant deals, shall see that financial obligations and commitments regarding timeshare transactions are in writing, expressing the exact agreements of the parties, and that copies of those agreements, at the time they are executed, are placed in the hands of all parties involved.
We were never given, or shown, a copy of the 2008 association budget, which they had already made, to compare with the 2007 budget which my wife and I consider to be crucial financial information. Diamond Resorts also failed to express exactly how they would bill association dues when a party buys their timeshare in mid year. The salesman gave false information and mislead us to believe we would only be billed for our association in November for our 2009 dues.
Diamond Resorts also has some problems with their disclosure statement they gave us. All of the disclosures and documents we signed were for Sunterra, not Diamond Resorts. In their disclosures they have Michael Peters as the Plan Manager and he is with Resort Management International. When you call his number [protected] you get Diamond Resorts. In the disclosure book page 32 number 20 it states” If the developer or its affiliate is terminated as Plan Manager, then the Association must change its name so that the word ” Sunterra” is deleted from the name and usage by the association and the board, and no member may use the name “ Sunterra” with respect to the association, their membership, the club accommodations or Vacation Club. [Declaration13.4]. I called the [protected] and confirmed with the person that answered that Diamond Resorts had bought out Sunterra sometime in 2007 and the Plan Manager, Michael Peters, was no longer the Plan Manager. Diamond Resorts Name is not in the disclosure documents, there is not a rider attached to the document, and Exhibit “E” is the 2007 Cub Sunterra Vacations Hawaii Members Association budget. The plan manager had changed and under their own guidelines they were not supposed to use Sunterra’s name in their documents. On page 16 letter (C) it states that the association fees are comprised of 2 assessments. Diamond Resorts is in conflict in the number of assessments they disclose in writing, the bill we received for the 2008 association dues also states that the assessment fess are comprised of 2 assessments. When you look at the bill you have 3 different components that make up the bill plus a $5.00 Voluntary contribution. When you look at the back of the bill it also confirms that association dues are billed in the subsequent year in November and due by January 1st. Again we purchased our timeshare on April 1st 2008 for over $14, 000.00 and were never shown this association assessment nor did we receive anything in writing showing that we would owe this amount buying the timeshare already three months into the year after the 2008 assessments were due. The terms used in their documents and billing refer to annual assessments. Annual is a 12 month assessment, and not only are they not clear on how they would bill for a partial year, they are trying to collect for a full years worth of assessments that include property taxes and costs that anyone purchasing a partial year should not have to pay for something they did not receive a benefit from. When you look through section C you will also see that the Board of directors are responsible to use reasonable judgment when determining increases in the association assessments. When you compare the differences in the2007 budget and the 2008 budget you will see that the budget went from $2, 510.618.00 to$5, 793, 744.00. This is and increase of over 115 . I would not consider this to be reasonable. The board of directors of the association have a fiduciary responsibility to protect the timeshare holders as well as the developer. The more people who buy into the timeshare should spread out the costs to make it go down not up.
Enclosed is the documentation that proves we were not fully disclosed on the financial obligations we were being committed to. Based on Hawaii’s Department of Commerce and Consumer Affairs Chapter 106 and page 24 number 18 of the Club Sunterra Vacations Hawaii disclosure statement Sales in violation of Hawaii timeshare law. Section 514E-11.3 of Hawaii law provides that every sale or transfer made in violation of the Hawaii Time Share Law is voidable at the election of the buyer. I am choosing to exercise my rights afforded me through my Visa card and void this transaction # 2889 trans. Date 04/14/2008 posting date 04/16/2008 in the amount of $12, 906.00. I am requesting that Diamond resorts cancel my timeshare purchase and refund me 12, 906.00 on my credit card as well as the $230.00 initial deposit and an additional $349.00 paid in closing costs. You have 15 days to comply.

Larry and Tracy Beck

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  • Ki
      19th of Dec, 2008
    0 Votes

    This organization does not care about the customer. They made consistent mistakes on my contract and have absolutely no regard for the services they provide. My list of complaints is long...stay away from this organization if you value your time and money.

  • Ma
      7th of Jan, 2009
    0 Votes

    TERRIBLE COLLECTION PRACTICES. I am making payments to Diamond Resorts for my Timeshare. If you are even a couple of days late, they will call about EVERY HOUR and harrass you to make a payment. I talked to an agent on Friday and said I was mailing my payment on Saturday, which I did. They started calling me again EVERY HOUR on Monday inquiring about my payment (snail mail hasn't arrived yet!). My payment is not even 30 days late. When I get these guys paid off I will NEVER do business with them again. A Hotel is about the same price and they won't call me all day every day.
    I even called the manager to get the harrassing phone calls to stop. He promised me they would, but the calls started within a week.
    If you are going to make "Mortgage" payments DON'T SIGN WITH THESE PEOPLE! They will not leave you alone even for a couple of days in arrears. SAD Pathetic Pathetic People.

  • An
      13th of Mar, 2009
    0 Votes

    Nothing much I can tell you, ours went from 600 to 1600 in just two years, we are ignoring the bills and refusing to pay, biggest racketering scam ever.

  • Ma
      28th of May, 2009
    0 Votes
    Diamond Resorts - will not credit maintenance fee or air travel certificates
    Diamond Resorts
    Las Vegas
    United States

    The latest complaint is the lack of response to requests to honor the $150 maintenance fee credit for 2009, and for two American Airlines certificates.
    Phone calls and letters are to no avail. I will contact the Federtal Trade Commision.

  • Je
      28th of May, 2009
    0 Votes

    Give Patrick Duffy, Chief Exp. Officer a call at corporate. He will assist you straight away. 702-823-7660. Believe me.

  • Fr
      28th of May, 2009
    0 Votes

    We too are having difficulty with Diamond Resorts responding to our phone calls (returning them), and our emails. Not sure what our next step is but we feel we were misinformed.


  • Bi
      30th of Jun, 2009
    0 Votes

    I would like to quitclaim my unit back to them I cannot find thier legal dept address. Any assistance would be appreciated. email me at

  • Fo
      31st of Jul, 2010
    0 Votes

    I'm interested in the results of this initial letter...?
    I agree, DRI is awful.

  • Pa
      1st of Aug, 2010
    0 Votes

    Ms. fourtimesamomma,

    Let me explain something to you;
    If DRI did not decide to acquire and run these resorts correctly...You, and all the other uninformed owners and members whould be crying about losing your timeshare. Everyone, including DRI pays to own. Your maintenace fees pay salary, utilities, upkeep, etc.

    Do you think since your purchase in 2000 prices have declined in Hawaii?

    If you have a cogent question/inquiry my contact information is as such;

    Patrick Duffy

  • Va
      8th of Apr, 2011
    0 Votes

    You just have to love the classic delusional responses coming from the duffster... That must be from his quick responses to sharp criticism book of lies, does he really believe what he is saying or is it all just part of the ACT? Only his hair dresser knows for sure... Then his futile attempts to squash the complaint by taking it off line. How utterly predictable, I sure miss the duffster on this board. It was always a good laugh to read his dribble and canned excuses for fleecing the members. He has moved on to bigger and better rip offs scams and fleecings I guess, or perhaps him a clueless are planning to take over the world... (which one is binky and which one is the brain?)


  • No
      22nd of Apr, 2011
    0 Votes
    Diamond Resorts - Poor Customer Service
    Diamond Resorts
    United States

    Diamond Resorts has the worst customer service I have ever encountered. If you are thinking of buying with them don't. On two separate occassions they have lost my checks. Then they turn around and try to charge me late fees. In trying to take care of the situation i have just been bounced around from person to person with no resolution. I had to do a stop check and ended up being charged for that as well as the late fees.

  • Va
      27th of Sep, 2011
    0 Votes

    Welcome to the Diamond Difference...


  • Cl
      12th of Jan, 2012
    0 Votes

    We also had the loss of our maintance fee check last yr I believe and even though we had proof of the check being sent and cashed by Diamond on this end from our bank we had to rewrite and pay the extra fees involved. And I have never had an easy time of reserving a time period at Poipu since Diamond took over, years past it was easy and the owning company worked with you, not against you(us) as Diamond does...I capitalize their name only because of correct grammar, not out of respect.

  • Br
      20th of Mar, 2012
    0 Votes

    Please let me know if any kind of class action suit comes up. My husband and I bought into this scam a year ago. Not only did fees go up, we can’t find a resort any where in the world with availability. Even in off season!

    I am disgusted with this and would like to find some resolution. Has anyone consulted a lawyer about the legality of this fraud, bait and switch….

    we have had problems with booking weeks also.

  • Lo
      13th of Nov, 2012
    0 Votes

    Lesson #1 Never buy a new timeshare ownership from a company. #2 Don't believe ANYTHING a salesman shows you unless it is in writing.

  • Ja
      26th of Dec, 2014
    0 Votes

    I just received a notice to pay $1472.87 for association dues, act #2337794.
    we have never been able to get a date at any resort that we can use. We are in for more $14, 000. How can we begin to get out of this current dues and sell our membership. My husband is on dialysis and is now being declared legally blind. I have to do all the driving to go anywhere.He is 87 and I AM 84. we have had the time share for approx. 6-7 years and never used. it.

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