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Diamond Resorts review: mis-sold 6

L
Author of the review
2:38 pm EST
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I attended a timeshare presentation on 8th October 2008 at the Cypress Pointe resort (owned by Diamond Resort International). I had been invited to this presentation, as I was on my final vacation from an "explorer package deal" that I had previously purchased through Sunterra. (This was a 3 year programme, where I had 4, 000 points per year to purchase vacations). During my 3 years under this package I declined to purchase the points based timeshare on 2 occasions as it was too expensive at £9, 500 for 5, 000 points per annum, and I refused to attend the presentation on the vacation prior to my final vacation in Florida. Each time I attended the presentation the sales team had a file on me which held all of my details and the quotes that I had been given -previously this was to enable them to try and offer me better incentives to buy.

When we attended the presentation on 8th October, we advised that we hadn't purchased due to the cost in previous years. At this point we were given figures that had a dollar value on one side and a sterling value on the other. During this quotation we were offered 4, 000 points per year and membership to interval international for $14, 129 and were advised that this was £7, 064. We had no reason to disbelieve the sales team at this time, and due to the reduction in price we agreed to buy. We were not advised that the cancellation period was within 10 days; however I must advise we did not question this as it was our intention to buy. We agreed to pay a deposit of $4, 239, and we were advised that we had an outstanding balance of $9, 890. Again we were advised that this equated to £4, 900. When we signed the attached contract we were advised that we could save a further 5% if we closed by 7th November. As a result this would be $9, 536 and again we were advised that this would be £4768.

We came home and raised the £4, 900 thinking this would cover any change in the exchange rate, and we sent our details to Diamond to conclude the purchase. Diamond contacted us on 15th November, to advise that our credit card company would not release the payment. When we investigated why we found the following out:

The transaction would have cost £6635, and the funds were not available
We reviewed the exchange rate of 8th Oct 08 and found it to be $1.74 to £1, not the $2 to £1 quoted by Diamond via oanda.com (My own bank were offering $1.67 to £1 on that day

At this stage I advised Diamond that I had could not raise the additional £1, 735. At this point Diamond tried to force me to close the deal, and advised that if I cancelled I would lose the $4, 239 deposit already paid. At this stage I advised them I wished to cancel and I followed this up with an e-mail (requesting my deposit be returned as well due to mis-representation.

I also feel the need to point out that if we had been quoted the correct exchange rate on 8th October 08, this would have equated to a GB Pound value of £8, 120, which is clear from our file we would not have accepted, as this is a similar pound/point ratio as the £9, 500 for 5, 000 points. I have requested the written quotation details from various different people and to date this information has not been provided. It concerns me that this is not available, when it has been available when I have visited previous resorts e.g. Vila De Golf in Portugal and Sunset Harbour Club in Tenerife. I believe that it is not available as it shows that I have been mis-represented in the sale of this product.

As this whole episode was causing me undue stress I contacted Stephen J Cloobeck's ([protected]@diamondresorts.com) office (chairman of Diamond Resorts International) and at this stage a member of the hospitality team became involved. I advised her that I could close at £4, 900 and no more as I couldn't raise the additional required funds. Following an internal conversation with a director at Diamond they offered to conclude at the rate of 6th November, which at $1.59 to £1 would have cost £5983; again this is more than I could raise. I explained to both of them that I could not raise the funds and that I was hugely embarrassed by this situation. I asked for the weekend to seek some additional advice and it was agreed that someone would contact me on Monday 24th November at 6.30pm UK time.

During the weekend of 22-23rd November I received some legal advice and I was advised to make the Attorney General and The Department of Real Estate in Florida aware of my situation. I did this via e-mail on 23rd November 2008. The initial feedback from them is that it will take 30 days to review the situation. I don’t believe I have the luxury of this amount of time. As a result I have e-mailed someone from www.floridabar.org as advised by the Department of Real Estate.

As I could not raise the additional funds and going into a loan agreement with Diamond Resorts International was not a cost effective option I advised on Tuesday 25th November via e-mail that I would like to cancel and again requested that my deposit be returned due to mis-representation. At this stage I advised Diamond Resorts International that I would be seeking assistance from the following should they decide to not return my deposit:

Florida Attorney General – no response to date
The Department of Real Estate in Florida – no response to date
The Judge at the Sunday Mail – no response to date
BBC1’s Watchdog - no response to date
If need be a lawyer in the USA

I was advised that my case would be reviewed and they would come back to me after the holiday period in the USA. I was also advised that my account would remain on hold until this was investigated. I received an e-mail from this morning (2nd December) advising that he had taken my account of hold, and that I could not cancel as this option had never been offered to me. To make matters worse they took my account of hold and started to collect the money from a loan agreement on the 26th November. As I can’t pay the outstanding amount I have closed the account. I sent an e-mail to asking why this had happened and they have indicated that it was a mistake and it the fnds will be returned but that I cannot cancel and lose my deposit.

In my next communication with them, I refer them to two contract clauses which indicate that you can default and lose your deposit. I ask if this option to cancel and lose the downpayment is being honoured or not, and advise that if this is being honoured I would like to exercise this option with immediate effect. The response Ihave received is that I cannot cancel.

I also sent a final complaint e-mail to Stephen Cloobeck, to which the hospitality manager to.

I am concerned that Diamond keep lying to me, shifting the goalposts and doing what they want. Effectively they have:

Made up an exchange rate to sell me the product
Advised I could cancel and lose my deposit – then deny this
Advised that my account was on hold, but continue to take payments
Advised that Stephen Cloobeck will intervene if needed, but he never responds to my e-mail.

Again I would like to reiterate that I bought the timeshare in good faith, and by raising the £4, 900 I believe I have demonstrated this. However, had I been given the correct exchange rate, I would never had purchased the product and I believe that the team in Florida were aware of this when they mis-quoted me.

Initially I need help to ensure that this timeshare is cancelled and then if required to try and reclaim my deposit. I really hope that you can help with this situation.

Many thanks for taking the time to read this and for any assistance that you can offer.

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6 comments
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jenboyd
Tempe, US
Sep 04, 2014 11:15 am EDT

I fell victim to DRI and want out! I am newly married, and every attempt to book a locations for the past 2 years has failed. DRI is either "booked" or only available if I use the Interval Exchange and pay extra. Has anyone had any luck with any lawsuits or been able to get out of this horrific contract? At this point, I don't even care if I get the money back, I just want to walk away without this taking a toll on my credit. Has anyone used one of the companies that claims they can get you out? ANY advice is greatly appreciated. This whole thing is such a scam, I don't understand how they continue to be in business. I have tried going back, in person, and all they do is try to sell me more points, or insist that I am searching the properties wrong, or that I must use the exchange thing. PLEASE HELP!

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Dicko 7
Seaham, GB
Mar 20, 2011 7:23 am EDT

Hi all
Some good news from the UK. eg - TCA http://www.timeshare.org.uk/news.html
" Kings Ransome Holidays (Peachy Leisure) yesterday took a large number of its Members to Court in Manchester. Kings were attempting to claim back management fees and other monies from said Members.The Judge STRUCK out every claim, and told Kings they were liable for ALL defence costs, and ALL Legal costs."
It seems the LAW does not like scamming timeshare! It also just so happens that this company had the same contract type as the company for this thread. Shame on them!
Wheres duffy?

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ClassActionOrganizer
, US
Jan 04, 2011 8:41 pm EST

Anyone interested in filing a class action lawsuit contact me at ClassactionagainstDRI@hotmail.com

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Dicko 7
Seaham, GB
Dec 22, 2010 5:44 am EST

Hi all
I WANT MY MONEY BACK NOW!

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claimsdirective
, ES
Dec 11, 2009 7:37 am EST

If you purchased a Timeshare or Holiday Ownership product in Spain or its islands after October 1994, then you may be entitled to a full refund of your total timeshare purchase price under the 1994 Timeshare Directive.
Even if the company you purchased from is no longer trading, you can still make a claim.
Did you pay a deposit on the day of signing or during the cooling off period, did you not receive the full details of your purchase during or after your cooling off period, did you receive a minimum 10 day cooling off period, were you mis-sold your timeshare on grounds of misrepresentation.
If you can answer Yes to any of the above then you have been mis-sold under the European 1994 Timeshare Directive.
To validate your claim on a NO WIN NO FEE basis got to www.claimsdirective.com
Our partner company only uses fully registered and certified Spanish Lawyers & Notaries (abogados and Notario) on a NO WIN NO FEE basis.
Over 200 live cases so far this year.
www.claimsdirective.com the only solution for mis-sold Timeshare owners who own in Spain and its territories.

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john shepard
75044, US
Feb 20, 2009 3:28 pm EST
Verified customer This comment was posted by a verified customer. Learn more

John E. Shepard
3201 Key West Dr.
Garland, TX 75044
02/18/2009

RE: DIAMOND RESORTS May be an Invalid Contract (response to telewire (02/11/2009)

Dear Sir:

We are under contract but truly believe that your company has taken advantaged of us. We requested several time “who is holding the loan on our property”. You stated it changes from hands to hands (tape recorded conversation). So we cannot give you the lender‘s name (10/2008).
We requested the date of the loan come back to its original date. This was just a wrap loan (under federal regulations the date of the loan should have remained)... Therefore, we requested that you redo the date back to the original date. You refused to assist us with this matter... You stated that the lender would not agree to that date without us being penalized... You also stated “NO’ we cannot help your change the date of the loan. We explain that this was a financial hardship for us (07/2008 documentation can be provided)...

The contract you made with us maybe set aside on the grounds of fraud. At this point we have hired a lawyer.
Due to the fact we are requesting to lower our payment and bring our account up to par... Change the loan back to the original date of the loan.
Otherwise Ross and Matthew Law firm will take over this matter or debt consolidation, or bankrupt court (we do have options).
You were aware that we were experiencing financial difficulties. You explain to us that your office could not take one payment during the month of November 2008. But your office stated that you needed all of the money at one time. You did not care. You explain that making two payments was not an option. Your agent calls us and stated you need all of the money up front. You ignore our concerns about our house note. We only wanted to make one month payment. We paid on line.
We disputed the amount. But, still you took our money without any concerns about our home loan.
. You could not take a partial payment. You need the full payment. But, you did not want to hear our concerns...

We feel that our contract may be set aside because of illegality, duress, undue influence of fraud has occurred on Diamond Resorts part...
If my lawyer can prove that the contract we sign may be voided due to fraud by the court system then we just may take that change
You cannot make any threats to us about obligations.
In fact we look forward to you telling the courts that your office refused to work with us and Diamond Resorts International told a lie about who held the loan on this account.
Fraud and deceptive practices should not be a part of your program.
If you would like to work with us about this matter then put a deal together that we both can live with. Otherwise I will be prepared to go to go. We explain there are other ways to resolve this matter.