Sunterra / Diamond Resorts / Resorts Westforeclosure without notification!

D
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This is my third attempt to correct this grave error that has occurred - resulting in our apparent loss of ownership. We discovered this on our own, when considering booking a Sunterra resort in Scottsdale, AZ next week. We learned that over that past year our deed had a lien placed on it and then was foreclosed on in August (according to Douglas County records - even though we were told that it happened in Clark county). Here are the facts, as brief as I can be:

We have owned since 2003
Bought in Sedona, AZ - 5000 points
Ownership fully paid for
Used only 4 times
Had over 6300 points when our membership was "closed"
NEVER CONTACTED BY RIDGE POINT REGARDING MAINTENANCE FEES - BILL, PASSED DUE, LIEN, ETC.
Continually received mailings, notifications, emails and bills from Sunterra
All bills paid
According to the dates in the legal system, we have been billed, communicated with, and paid fees even after we apparently lost our property
Our ownership cancellation was never reported to us - from Ridge Pointe, Resorts West, Sunterra or Diamond Resorts.

We have invested over $11, 000 for less than 4 weeks of travel, paid all membership fees and apparently missed maintenance fees after having never been billed. Our credit has been impacted without our knowledge and our asset has been taken from us - due to mistakes and lack of communication - between Resorts West and Sunterra/Diamond and the owner.

We have been told, "Sorry, we sold it." And, "yeah, we shouldn't have billed you; we'll reimburse your membership fees." We want our points and our good standing reestablished, with the opportunity to pay missed maintenance fees. We have outstanding credit and aside from our mortgage, have paid for all that we own in full. I share this because to reinforce the fact that we pay our bills and would have paid maintenance fees - we were never given the chance and someone needs to accept responsibility rather than blaming each other and/or the owner.

Please, someone "step up and make this right." This is a plea for various parties to work together to get our owner status restored, including our maintenance fees paid by us. I am hoping that upon review, all will recognize their mistakes, accept responsibility and collaborate to get our full ownership status with Sunterra/Diamond back ASAP - with the points we had when it was closed.

The above is the most patient and kind request I can make.

Responses

  • Je
    Jeffreyd Apr 21, 2019
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    Is anyone who has complained here, regarding Diamond Resorts, interested in joining me in a class action suit against these people?

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  • So
    sozui Aug 16, 2018
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    Stayed at Diamond resorts in April for 4 nights.
    I did NOT sign up for anything and payed my entire stay in cash!
    The next day my credit card was charged $21.27 for Premiere Vacation Club.
    I did not sign up for anything!!!
    What is going on here?
    How do I get my money back?
    Did anyone have the same experience?
    What did you do?

    0 Votes
  • Su
    Sue Amick Feb 01, 2013
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    We made the biggest mistake of our lives when purchasing time share from SunTerra. We cannot contiinue paying these exorbatant assessment fees. We used it onc and when we inquired about setting up a reservation, we were connected to a London office and told we were no longer in the system. However, they continue to take a monthly fee from our checking account and bill us for $1, 122.50.I called once and said we did not want to be in the International Club and was told we had to be in it. We just want out. We are about to retire and cannot afford to waste our money on this. I cannot make myself pay this fee. What can we do?

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  • St
    stepht Aug 13, 2011

    We were with suntera and got placed with diamonds Our fees have gone through the roof we can NEVER book at our home resort in Hawaii This is a nightmare we can"T wake up from Lawsuit is the way to go contacting an attorney to see our options Has anyone used TAI to get out of contract?

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  • Va
    Vacation Owner Apr 08, 2011
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    Hey Alan,


    Jump on board and ride this train to crazy town, should be (in my opinion) the new slogan for DRI. What a bunch of ninnies. Chances are they wanted you their collection and not as a deeded owner so for a mere 3500 more they will see about getting you setup in the points program since they did not re convey your title and chances are they probably sold it to a few other NEW Magic Points Members and that is why they forclosed so they would not get caught with their hand in the cookie jar... Again.

    Your case sounds pretty open and shut 20k puts it a grand theft, way to go Duffy, I'll bet your momma is so proud of your accomplishments and your glass squares...

    CVO

    CVO

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  • Al
    Alan Mack Apr 08, 2011

    Hi my name is Alan and just found out yesterday that DR took back our property after the maintenbance fee was paid on time this year and the property paid off in 2010 of August. I had been requesting since August last year getting documentation regardign the pay off of our property and something showing we now owned it free and clear. It was like pulling teeth from them. I called at least three more times requesting proof of ownership. In January this year I paid my association dues and also contacted them again stating I needed something from them. They apologized nand said they were having a tough time getting the pay off form Hawaii showing the property was recorded being paid off. In January a customer service rep thta he would send me out the documentation for me and my wife to request our deed and pay off. My wife and I received some documentation from them that had to be notarized it was about the deed. So we had it notarized and sent it back toi them. Now I find out that what we signed was giving the association back our property.

    I said to them today and yesterday, why would I give you back my property after I paid $20, 000 for it and paid my association dues this year for 2011. She the manager named Joan Van Hoff said she would see what she could do but that it would be highly unlikely we could get it back. By the way our property is now sold under a point system, we owned ours a fee simple. In fact in 2009 we went to a presentation with our riends and they wanted me to sign over my deed so I could go under the new point system and own nothing. I would be more than happy to jump into a class action lawsuit against them. The rep we spoke to over the phone never sent out what I asked him. He sent me out a warranty deed quit claiming my property back to them. Please feel free to contact me any time at [protected]. Our property is in Poipu Bay, Kauai.

    Alan

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  • Va
    Vacation Owner Feb 11, 2011
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    Oh Kellybean, I forgot Bankruptcy is another way out of DRI

    Death
    Critical Illness (on Deaths bed with one foot in grave)
    Bankruptcy
    75+ years old
    and the year 2054 which I am guessing may be the life of the Trust or some other legal time limit imposed on DRIs CLUB, maybe Pattrick could explain the 2054 date.

    Those are the only ways (in the united states) currently available to get out of Diamond Resorts International CLUB and the hefty fees they charge for the so called maintenance fees and SPECIAL ASSESSMENTS.

    Again Good Luck,

    CVO

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  • Va
    Vacation Owner Feb 11, 2011
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    Kellybean

    With Diamond Resorts International it does not matter where your home resort (contract resort) is located because you do not own anything, you have placed a Real Estate Deed in to an Irrevocable Trust naming DRI the Trustee, for that privilege of temporarily possessing what I like to call DRI Magic Mystery points. The magic is they disappear each year if you don't use them and the mystery is to see if you can book anything. The real beauty is regardless of whether or not you are able to use the DRI Magic Mystery points, you will pay for them until your dead, 75 years old or 2054 whichever occurs first (fine print somewhere in your contract).

    If you just did this recently you may have a way out within 5 days for sure FAX and registered mail rescind your contract, longer than 5 days you will probably need to fight some. If you think you were lied to and deceived and want out you might try to contact the missing DRI spokes hole Patrick Duffy. I will advise you as I have others on this board to get away from this company before it is too late for you.

    Here is Mr. Duffys contact Info Tell him CVO sent you... ah on second thought better not he says I am rude... (often times rudeness is synonymous with blatantly honest on this board... depending on perspective)

    [email protected]
    [protected]

    Not sure if he will/can help you OUT, he may have you upgrade to a Sedona property for a small fee of course...

    Good Luck,

    Concerned Vacation Owner

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  • Ke
    Kellybean71 Feb 10, 2011

    I bought through Sedona and found out I now own (which they didn't tell me until I gave them a payment) something from DIAMOND! In VEGAS! YUK! Not what I signed up for...nothing against Vegas, but it's not where I want to spend my extra time.

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  • Cl
    ClassActionOrganizer Jan 04, 2011

    Everyone join these groups:
    http://groups.yahoo.com/group/drilawsuit
    http://drip.webs.com/
    And a few Facebook pages:
    http://www.facebook.com/group.php?gid=110277188996962
    http://www.facebook.com/home.php?#!/group.php?gid=57016634248

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  • Ba
    Bakersdozen Dec 21, 2010
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    BTW this is how I see it. We paid £8500 13 years ago to "own" points in this scheme. Today's equivalent value if invested in property would be at least £20, 000. We also pay £900 annual "maintenance". So you could say that in 13 years, at today's value, we paid £11, 700. Lets say a total of about £30, 000 at todays values.

    Because of problems with availability since DRI took over, we managed a total of 10 weeks actual hoidays for this vast sum.

    In other words it has actually cost me about £3000 a week to book an appartment with DRI at todays values. I can get exactly the same resort, same standard of appartment (same description anyway) for £350 a week from Expedia... no booking a year in advance, no commitment to 54 years of financial servitude etc etc.

    So I reckon that DRI have had at least £25, 000 of my money at today's values over an above what I would have paid on the open rental market. DRI claim to have 400, 000 members. If they have treated them all equally, and the situation with the appartment rental prices that I looked at is reflected around everywhere else, that means (hang on where is my calculator), that they have "made" £10 Billion in this fashion. ($15.8 Billion US)

    Now that is a big number. It is the same size of number that the UK Government is lending to the Irish Government to help them out of economic trouble. Wow.

    Now I am not an accountant. There may well be errors in my assumptions or method. I would welcome someone who does have this skill having a look and letting us all know. I would just like to understand what is going on.

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  • Ba
    Bakersdozen Dec 21, 2010
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    Ah, so actually my calculations of how much money DRI have extracted to their "members" may underestimate the reality. The oversell of points (resulting in lack of availability for members) actually means that I have been too generous to them in allowing an 80% occupancy. Perhaps it is 110% or even higher.

    O Patrick, you have a lot to answer for. What have you done with our money? Come on, you still don't answer the question. What do you do with the £900 a week you charge for maintenance (or given CVO's point is it really £1000, £1200, £2000???)?

    You still don't answer.

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  • Va
    Vacation Owner Dec 21, 2010
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    Bakers,

    Unfortunately because they can place whatever value they want on their bucket of available point and just as with Traditional (REAL DEEDed) Timeshares they can inflate the price (to cover marketing costs) to what ever they want. Are they over sold no they just change their value and like magic they have more points to sell and it's all legal because no one has stopped them yet. Would DRI dare to publish their failure rate on bookings dates requested vs dates available. Probably not because it would reveal how bad DRI POINTS SUCK as do most of the points systems RCI and a few of the other vaction resort chains trying to get in on the money printing business. I am just trying to deal with keeping my deeded week and hoping DRI drops dead like Suntera due to legal issues.

    CVO

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  • Va
    Vacation Owner Dec 21, 2010
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    NO TS

    Just goes to show, you do not even read the boards you post on. I have nothing but crap to give DRI and other $hithead$ of similar ilk that prey on jet lagged vacationers or feed up vacation owners who were scammed. You are a bottom feeder, you take advantage of desperate people willing to hand over their deed because they can no longer afford it and you probably charge them some fee or closing cost or legal filing fee. Oh but you are doing them such a favor relieving them of their burden, well guess what I am sure there will be a special place in Hell for you too...

    Concerned Vacation Owner

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  • Ba
    Bakersdozen Dec 16, 2010
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    Here is a question:

    We all know that DRI points are less than worthless ( I have a fully worked up argument to demonstrate this if anyone is interested). If DRI are therefore continuing to offer these for sale, are they therefore guilty of fraud? I mean actually, legally guilty. Not simply morally guilty as they are over their treatment of owners generally.

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  • Va
    Vacation Owner Dec 08, 2010
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    No TS

    Go peddle your TS after wares on google not here.

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  • Va
    Vacation Owner Nov 25, 2010
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    Kevin,

    That is exactly what Diamond wants you to do, they do not give a [email protected] about your Credit rating, your deeded vacation that many have put in to an irrevocable trust. They will gladly take it off your hands for free. They will forclose and resell it to some other traveler and before they let you completely off the hook they will hit you with a closing fee or tell you your maint. fees must be paid in order for the foreclosure to close (I read it on one of the other posts). Oh and there will be late fees, you will go through collections hell and they will continue to ruin your life for as long as they legally can harass you. After you finally get [email protected] out the other end of that pooper they still win, they got your money and the other travelers money, your deed the original maint fees which you protested, oh and the late fees at upwards of 30% yup you showed them!!! As DRI laughs all the way to the bank.

    What has our country really become, the rich corporations have the freedom to steal and cheat the consumer as long as they do so "within the boundries of the law" it is all fair game.

    How many yachts and mansions are needed for one to be truely happy?

    Henry Ford said it best "A business that makes nothing but money is a poor business."

    Concerned Vacation Owner

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  • Ke
    KevinKwanJang Nov 23, 2010

    I agree with many of the complaints and would fully support a class action suite against Diamond. I was lied to during my purchase both about the availability of the resorts and the increase in maintenance fees which has doubles in three years. It has been the absolute worst purchase of my life and above all will advertise and recommend to thousands of people in my network to stay away from Diamond. I will gladly let my ownership foreclose than try to sell it to some other poor chap to prevent Diamond from getting another cent. I was also told I would be billed every other year for maintenance fees since I bought the bi-annual membership...This again was a lie. Sincerely, [email protected]

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  • Va
    Vacation Owner Nov 14, 2010
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    On another note your answers reminds me of some artificial inteligence autoanswer email system I worked on back in the late 90's during the dot com boom. "Your rudeness, and lack of decent manner" who says that?

    lol Vacation Owner

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  • Va
    Vacation Owner Nov 14, 2010
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    Wow, and on a saturday night, must be good pay to have to stay up late on a saturday night answering questions from concerned vacation owners. Oh excuse me or not answering because you felt that I was a bit harsh. Hope DRI has your back when it all starts to cave in, I don't think your high enough up the food chain to float this one out... Hope you put some of it away somewhere good you know for your retirement.

    Concerned Vacation Owner

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  • Pa
    Patrick Duffy Nov 14, 2010
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    Dear dri.wtf,

    Your rudeness, and lack of decent manner render me incapable of answering your convoluted writing. Sorry, I cannot assist YOU!


    Patrick Duffy
    Chief Experience Officer
    Diamond Resorts International

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  • Va
    Vacation Owner Nov 13, 2010
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    “The management fee had been static for many years and was significantly below the industry standard rate.”

    What is this mumbo jumbo speak for DRI can manage that resort much worse than it is being done as Sunterra (2008 less than 1M) for much more money Under DRI management (2009 2.3M) and of course some of those additional management costs will include the damage control management because everybody will start complaining.

    Well guess what buddy, were complaining!!!

    I’m guessing you have moved up the DRI/Timeshare food chain from the bottom perhaps as some successful sales [censored] in some resort town preying on willing travelers to where you are now Chief “Experience” Officer. Your mother is probably very proud. You are quite eloquent and proper in your responses almost as though the responses are being “composed by committee” or “council” (just an observation).

    You are good at telling the truth, but the devil is in the details most of which are missing from your almost canned like responses.

    As a KBC weeks owner (original purchased Embassy Suite Vac Club 2000) it was part of a collection of TS ownerships my wife and I have had over the years. We watched this happen over a period of 10 years. We never updated with the Sunterra or DRI point BS. We are ban from the DRI network we only own our allotted share at our home resort. I am ok with that we bought in Hawaii to visit again, but I can book a room at KBC through Expedia ™ for cheaper than my annual Maintenance / management fee and I don’t have to do the DRI points dance.

    Since your so good at the truth and being all upfront, please enlighten us concerned KBC owners (64% of the power if you break it down by ownership) So we can all “experience” it together instead of just 1-on-1 like you so often invite us to do. I say no, put it out where everybody can see!

    What part of the 8% of DRI ownership in KBC was obtained by default of maintenance fees or imposed late charges for late mailings. On the same subject How many properties so foreclosed (not necessarily now or ever owned by DRI) have been resold at the resort providing a hearty income stream to some DRI marketing department, if you dare to be so transparent.

    Of the huge costs of operating such a resort as KBC how much of the “Management” costs are in the way of gross executive salaries, specifically the DRI “Management” of KBC. I’m not looking for specifics but you threw a bunch of summary numbers out there and hope we are just going to read the words and then just go away.

    You say KBC was being managed at below industry standard cost “what industry are you specifically speaking” TS management industry with it’s fat executive salaries or Hawaiian Resort Management. I would be willing to bet we KBC owners are funding some very extravagant lifestyles of DRI executive and CEO’s not you Patrick I meant real CEO’s in the self proclaim TS Management Industry Owned and Operated by a bunch of has been TS hacks now looking to retire on all those TS they sold to us oh so many years ago. Let’s see how open their books on that subject.

    Concerned Embassy Suites Vacation Owner
    [email protected]

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  • Pa
    Patrick Duffy Nov 07, 2010
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    Dear HTNeves,

    Thank you for your post. We listen, and are certainly prepared to talk with you as far as your written points above.

    Kindly reach out to me at our convenience either via my email, or phone if you wish.


    [email protected] or [protected]

    Cordially,

    Patrick Duffy
    Chief Experience Officer
    Diamond Resorts International

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  • Ht
    HTNeves Nov 07, 2010
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    We, (my husband and I) also own DRI. Our home base is in Hawaii. We are also concerned about the rise in maintenance fee's especially the bill we received due in Jan. 2011. We own 8500 points and our fees due Jan. 1, 2011 are $1533.68. Our bill due jan. 1, 2010 were well under $1300 (I don't have the bill in front of me).

    What concerns us is how high the fees are going to get in the following years. Our unit at Ka'anapali Beach Club this past Aug. 2010 had a great view but lots of roaches ( over 13 killed the night of our arrival) and broken items as well. So, we ask what were our fees paying for? If we are going to keep having to pay higher and higher fees, then the resorts should be near perfect. As for booking, we have a very flexible job that allows us to book vacations anywhere from 18 months to 1 month in advance, and even we have a HARD TIME finding a unit at my own home resort.

    So the question for US owner's should be, how are we going to find a way to keep DRI from hiking up our fees more and not experiencing the whys, when we go on vacation? We bet most owners are upset about our 2011 bill. After our unit this past summer, ( and no we should not have to call down to switch rooms, that room should have been near perfect for the fees we DO pay)we can't buy the stories of up keeping, staff, REPAIRS, ect. we have been told.

    SOON we fear we will be paying more for our units/rooms than someone who does not own and can book on Travelocity, Orbitz, ect... We don't want to sell but we feel that in the coming years the maintenance fees will be so high that we won't be able to financially justify the timeshare anymore. So we are consider listing ours now and hope to have it sold to some one who has the funds to keep paying the no-end-in-sight rising high fees. We bet the majority of US owners are not doing as well financially as we were when we bought our timeshares and looks like it's going to get worse not better.

    If anyone is reading this and considering buying ANY timeshare, please know that the maintenance fees will keeping going up to the point where you might end up in our shoes. We have learned this past year that lots of financially fit people would have never bought a time share. Wish we had listened to their advice before we bought.

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  • Sd
    SDRVS Oct 24, 2010

    In my recission period. Purchasing in Maui that has 3 others in the collection, .Noone ever gave me even upon request, in writing how the fees have incrreased over the past 5 years.. what else should I look out for? If it really that difficult as I am reading to obtain your choices of properties and weeks even if it is your Home property?

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  • Pa
    Patrick Duffy Sep 18, 2010
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    Dear DBATS,

    I guarantee you, no one can help you on this forum...Except me! My email is right above your message.

    Maybe if you get to see your message in print, you'll see.

    What resort...We manage a resort in Palm Springs?? But we do not sell any timeshares at that resort?

    Who and where did you call?? If this is of real importance to you, it would be best to email or call me at;

    [email protected] or [protected]

    Thank you,

    Patrick Duffy
    Chief Experience Officer
    Diamond Resorts International

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  • Do
    Dontbyatimeshare Sep 18, 2010
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    I purchased my time share in Palm Springs, CA and have run into the same problems that a lot of people posted. Buyer Beware – DO NOT PURCHASE A TIME SHARE. You will be scammed the sales pitches are fraudulent and you will be duped like the rest of the people who posted issues. When I purchased the time share (10, 000 points which was reduced to 8, 500 when Diamond Resorts came onboard), I explained that I vacation locally and spare of the moment I was assured how easy it was to get a reservation at my home resort. It is in possible to get a reservation. When I was able to get a reservation the room was horrible; yet the fees continue to go up. Just recently I called the resort to discuss my final loan. I wanted to confirm the final payment amount. When I found out the final payment was $32.27 I asked to pay the amount in full. I explained that my loan payments are due on the 10th (final payment paid on the 8th) and wanted to make sure the regular payment amount didn't go through. On the 10th Diamond Resorts took the full payment of $243.17. I immediately called the resort and was told that it was a timing issue that the $32.27 posted on the 10th and so their system took the payment (which was not the case – they payment deducted from my account the next day). I requested that my account be reimbursed in full immediately. I escalated the call to a supervisor who basically told me it was my fault that I need to put something in writing at least 30 days in advance. I explained that the agent who took the final payment never altered me to the fact that I had to put anything in writing or there was a chance that the payment would be taken due to the short span of time. The supervisor said he would give me a call back and to date have not received a return call. I called the resort the next business day and was told by the agent he that some of what I was being told was the truth. Apparently their was a timing issue but I didn't have to put anything in writing it takes about 5 days to stop auto pay and assured me that I would receive a credit. Here we are Sept. 18 and no credit. I could go on with more detail but why waste your time; I’m sure you can see how this played out. If I am late on a payment I get socked with a late fee. Do you think I'm going to get any compensation for them holding on to my money when I couldn't even get a return call? To date this is still unresolved.

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  • Pa
    Patrick Duffy Aug 14, 2010
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    CCLun,

    This is a very few to the 500, 000 owners and members that enjoy their memberships annually. If we/I can help or assist you, please feel free to reach me at;

    [email protected]

    Thank you,

    Patrick Duffy
    Chief Experience Officer
    Diamond Resorts International

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  • Cc
    CCLun Aug 14, 2010
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    After reading these complaints I am very hesitant about purchasing more points from diamond. i just bought 6500 points on resale and was considering joining the CLUB and transfer those points over, but I am very hesitant. May be I should try it out and see if I like it first. Not sure about the availability of the resorts after I join either. Also, I would hate to have to deal with customer service regarding payments of fees etc. I cannot believe how many of you have trouble of paying your fees/notices etc.

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  • Pa
    Patrick Duffy Jun 09, 2010
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    Dear Catalina K,

    Thank you for this candid perspective regarding your presentation. I apologize if it did not answer the questions you had, but please feel free to reach-out to myself and staff at a time that is convenient to you at:


    [email protected]

    Patrick Duffy
    Chief Experience Officer
    Diamond Resorts International

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  • Ca
    Catalina K Jun 09, 2010

    Be very careful on the streets of Sedona, Arizona. The Diamond International "gang" are on both sides of the street. They will promise you anything to trap you into the 90 minute presentation. It really takes 5 hours. At the resort, Steve S. put on the most surreal presentation you have ever seen. He will not answer the tough questions about membership. Instead he shows you a family scrapbook. At least he says it's his family. I also asked for his business card. I swear Steve said, "The Arizona Department of Real Estate will not allow me to give you my business card". I asked why? He wouldn't answer the question. Run for your life! This resort scam is total [censor]. Don't waste your $ on invisible points.

    Catalina K

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  • Vt
    VTguy Jun 05, 2010

    Our situation is very similar to everyone else's. we have owned our Orlando time share since 2005 and have used it only a few times. Through all the fee increases and the booking challenges we have stayed hopelessly optimistic thinking that we were one of the few with these challenges.
    With the research we have done while trying for years to book various resort stays Diamond uses its ownership to stabilize its own Real Estate holdings for Rentals.
    When the Rental resort industry is slow they have us to slap higher fees on. We have not been able to book a vacation 3 months in advance for three years now for particular dates, however when checking the same dates and location as a rental found a great amount of availability for a large daily rate. RENT vs OWNERSHIP... We like many thought OWNERSHIP meant something more then RENTING and have found out it actually means much much less...

    The example I gave the Diamond rep was "if you have a 100 units monthly how many of those units are reserved for OWNERS?" 10%?? 20%?? 1%????? Seems its the later of the options.. So we have all these owners trying to book in the summer vacation months for the 1% rather then say the 60% that should be available to us... Where do we turn as owners to make this obvious greed and lack of owner relationship turn and go the other way or can we??? Is there an answer. I would take my initial investment of 15K and put it into a piece of (real) Real Estate and be done with this BS... Instead it seems like that money will be a complete loss. Vermont guy.

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  • Pa
    Patrick Duffy May 20, 2010
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    Verified customer

    I've given you this chance and now I have 4 simple worded paragraphs that you should be able to answer in "detail".

    DRI has completely ruined the "deeded weeks ownership" program that was in place when many of us purchased timeshares. DRI has increased the dues to amounts that no longer make it affordable to keep. Who benefits when we own these units outright? DRI does because these owners are forced to "give away" or get foreclosed on due to the simple fact the DRI escalated the management fees on these resorts from the years prior that Sunterra who was able to manage at reasonable costs. I am also a developer so I do know the importance of better management but the increase is ridiculous. I own 4 units, all deeded and they were worth $80, 000 easily on the resale market when Diamond took ownership. Now that the fees are ridiculous, the value of these units are declining tremendously. My timeshares have dropped in value to $28, 000 in the short time DRI took over. WHY?


    As a general comment, maintenance fee increases were primarily due to the rising cost of owning and maintaining property in Hawaii. As you know, the cost of living in Hawaii is extremely high—the highest in the country—taxes, utilities and insurance are very expensive. Price increases for goods and services are driven by supply and demand in addition to inflation. Another reason costs are so high is because nearly everything used on the island must be shipped to the island. Freight charges are included in the price of items such as food, linens, furniture, vehicles, cleaning supplies, pens and paper. You should also know that Ka’anapali has been heavily subsidized in over the years by Sunterra and by DRI—$2.5 million in 2007, more than $500, 000 in 2008, $1.7 million in 2009 and $1.1 million in 2010.

    As a developer, you are undoubtedly aware of the erosion of property values since the real estate bubble burst in 2007. As real property, timeshare resale value is subject to many of the same economic factors as residential and commercial properties. Resale value is based on how much another person is willing to pay for the property and today, that’s below resale values three years ago for almost every single timeshare worldwide. The fact that your timeshare has dropped in value since 2007 (when DRI acquired Sunterra) has less to do with any actions taken by DRI than with the economic climate and the basic premise of value.

    Weeks owners do have the availability of booking last minute vacations at a discount, and many of them rent these unit far below market value. This has a major affect on the weeks owners. Some of the units have been reserved of inventory for points owners and made not available to deeded owners until a later date. WHY?


    The presence of Diamond Resorts Hawaii Collection (points owners) does not impact the ability of traditional deeded owners to secure a reservation at Ka’anapali. Inventory is divided into “buckets.” Traditional owners like you have their own bucket, Hawaii Collection members have their own bucket and Diamond itself has a bucket of inventory it owns that is uses for rentals, marketing tours, etc. As a traditional owner, you will always have the rights to your bucket of inventory until it is exhausted. The same is true for the Hawaii Collection—its members cannot reach into your inventory bucket and use those weeks.


    Did some things get better? Yes, our dues were raised $500 over two years x 50 weeks equals $25, 000 per unit. For that we get a flat screen, an ipod hook-up and other upgrades that don't total up to $10, 000 combined. The $25, 000 annual increase is a joke.
    There is no way you can put $10K in improvements in each one of the units every year.
    If you really believe that, itemize what you have done to these units the past 3 years and what we will get for $25, 000 this year. There is a common misperception among timeshare owners in general regarding where the maintenance fees go.


    There are not $10, oo0 in additional funds collected annually for any one unit. The funds are used to cover the resort’s day-to-day operating expenses for the all of the units, grounds and all common areas and the staffing and other expenses necessary to deliver services to the owners, maintain the property inside and out, and provide for reserves to build up cash to cover planned and unexpected replacements and repairs. Regarding improvements over the past couple of years, in additional to the items you have listed above, funds were used to replace the elevators, refurbish the pool and purchase new pool furniture, and outfit the rooms with new mattresses, linens and small appliances, to name a few items. New A/C chillers and phone system are also planned.


    Please provide the "total" management fees paid the prior two years before DRI took over and provide the "total" management fees for the past three years since DRI has been in control. Yes we do have these numbers but they are more readily accessible by you.


    The management fees are: 2006 - $868, 500; 2007 - $886, 900; 2008 - $964, 800; 2009 - $2, 336, 700; and 2010 - $2, 833, 900. The management fee had been static for many years and was significantly below the industry standard rate. The VOA had been paying a flat $36 per interval fee and the AOAO a flat fee of $40 per unit per month. The management agreement was renegotiated with the board of directors to a more common percentage of maintenance fees basis. In the 2009 billing, increased management fees started being phased in and they will top out in 2011. To help with the increase in fees, Diamond contributed $1.7 million in the 2009 billing and $1.1 million in the 2010 billing. Also, don’t forget the subsidies mentioned above: $2.5 million in 2007, more than $500, 000 in 2008, $1.7 million in 2009 and $1.1 million in 2010. So, in essence, very little in total management fees have been paid to DRI over the last three years.

    Last but not least, you told Bugz2 that DRI did not purchase "any" resorts. Is this true? Yes.
    Does DRI own KBC?

    No. Whomever possesses a deed owns a part of the resort. KBC is owned by a combination of traditional owners (like you, Kpaul5257), DRI (which holds deeds), and the Hawaii Collection (which holds deeds). If Kpaul5257 wants more information, the ownership breakdown at KBC is approximately 64% traditional owners, 28% Hawaii Collection and 8% DRI


    Hope this is of assistance to you Kpaul5257

    Patrick Duffy

    0 Votes
  • Pa
    Patrick Duffy May 05, 2010
    This comment was posted by
    a verified customer
    Verified customer

    Dear Kpaul,
    Thank you for your comments...
    Deeded owners and Points owners are all equally important to DRI. Maintenance fees were brought inline to make certain that every reosrt was financially self sufficient. A fact that many do not wish to acknowledge.

    I speak to many deeded owners who enjoy their membership and know how to maximize it use. I'm sorry you have not met with the same enjoyment.

    I do offer assistance to many and enjoy the opportunity. If you require further assistance then you can email me at;

    [email protected]

    Patrick Duffy
    Chief Experience Officer
    Diamond Resorts International

    0 Votes
  • Ol
    old man murgy May 05, 2010

    I have today sent to Diamond resorts by registered post from Malta (where I now live) a Solicitors letter claiming that their maintenance demands are contrary to EU Legislation and threatening a class action against the company. I am starting a Sunterra Action Group and would welcome genuine complainants to join me in this action. I am not using my real name for fear of reprisals. This class action if mounted would cost money (not yet costed) so participants should be aware that we may lose the claim but will have to fund it ourselves unless the EU Fair trading lobby with whom I have also lodged a complaint for unfair business practices against the company will assist us. I need active help in this regard and can be contacted by email at [email protected] .com.

    All genuine responses will be acknowledged and as far as I am able will be screened for genuine complaints (I have become slightly paranoid about Sunterra spies)

    Old man murgy

    0 Votes
  • Pa
    Patrick Duffy Mar 29, 2010
    This comment was posted by
    a verified customer
    Verified customer

    Sometimes even a small amount of points can be used with great benefit...Let me show you, please.

    Email me at ; [email protected]


    Regards,
    Patrick Duffy
    Chief Experience Officer
    Diamond Resorts International

    0 Votes
  • Ge
    getridofit Mar 29, 2010

    Let me know about any class action suits. We bought from Sunterra in 2006 and have never used it. The places we want to go are never available and I don't have enough points to matter. I just want to sell it and get our money back. We pay fees every year just like everybody else and have nothing to show for it.

    0 Votes
  • Do
    donebeenscammed Mar 20, 2010

    I was just checking in and remembered a complaint from someone aobut never being able to reserve time in a particular Sedona Resort. I was just looking at the Sedona Resorts. They all have available time the whole year. In fact Sedona is our default location to go to if we cannot find something else.If you want to complain about not being able to book resorts try booking the So Cal coast when you have six kids (when it is warm enough to visit.) Have not succeeded yet but we will keep trying. The year before last we booked a 3 bedroom and a two bedroom at a Sedona resort. We had about 6 teenagers with us besides our kids, was great fun.

    0 Votes
  • Pa
    Patrick Duffy Mar 07, 2010
    This comment was posted by
    a verified customer
    Verified customer

    Dear ppaz98,

    Responded to your email ay Yahoo.com...Look forward to assisting you.

    Best,
    Patrick

    9 days ago by ppaz98 0 Votes


    It's only fair that I follow up my complaint with what DRI, specifically Patrick Duffy, has done.
    Briefly summarizing, I submitted my complaint Tuesday night here.
    The very next day around lunch time, Patrick Duffy emails me to acknowledge he has read my complaint.
    That same night I check my account on the DRI webpage and see a zero balance, meaning the $305 collection fee had been waived. I also received a voice mail from Mr. Duffy himself this morning confirming the removal of the collection fees.

    I have to give credit where credit is due. If Mr. Duffy is representative of the customer service provided by DRI then I must admit that it is without doubt one of best performing, most responsive customer service dept I've encountered. These days when we have to tolerate shoddy customer care from the likes of ATT, Citibank, etc., it is comforting to know that there are still companies that actually have customer service.

    I am not saying I am completely sold on the business practices of DRI. There is still the issue of mailing out late notices 2 days after the large collection fee has kicked in, giving the member no opportunity to correct the problem, whether it's due to oversight or in my case, a delivery problem. And I am certain only a very small percent of owners are aware of this 25% collection fee kicking in 14 days after the maintenance fees are officially late. There is also the issue of transparency regarding the >30% increase in maintenance fees. These maintenance fees have completely erased the incentive for buying and keeping timeshares. If I am to continue paying a maintenance fee that can be used to pay for a similar size unit, then I need to be convinced that my initial 12K investment for lifetime vacations with DRI actually has some long termvalue. I know many feel the same way.

    0 Votes
  • Pa
    Patrick Duffy Mar 07, 2010
    This comment was posted by
    a verified customer
    Verified customer

    DearDBS,
    You sound like you understand how to work within the system. I am glad you have enjoyed your usage.
    As to Maintenance Fees, we (DRI) are managing the resort properties on behalf of the various HOA's. All the while keeping each property financially solvent as well as independent in financial structure.

    As I have reached out to several, please keep my information on hand should I be of assistance.

    [email protected]

    Yours cordially,
    Patrick Duffy
    Chief Experience Officer

    0 Votes

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