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Diamond Resorts International DRI Misrepresention, Fraud, Disgraceful Customer Service Las Vegas, Nevada
In July 2002, my husband and I purchased a timeshare through Embassy Suites which is now the Kaanapali Beach club/Diamond Resorts International. We purchased an every other year time share and the maintenance dues were $500 every other year. As life moved forward, we had a baby in 2003 and vacationing was a distant memory. We paid for our timeshare as contracted and remained current on our dues. In 2005 our only child was diagnosed with a rare medical condition and traveling was not an option. As the years of treatments passed, our daughter's blood counts were finally sable enough to go on a real vacation! You can't image what a special treat it was for us to use the timeshare we had purchased 8 years earlier and never once used.
Upon our arrival, we were contacted by the sales department and provided with some lovely discounted activities, but we needed to sit in on a presentation. We agreed and listened to what the sales representative had to say. Much to our dismay, we were advised the timeshare that we owned was obsolete and essentially worth nothing as we were on an old contract. According to the sales rep., they now only acknowledged points, and we needed to convert our week into a point system in order to have any value in our initial investment and have usage in the future.
I explained that we had medical issues that precluded our family from vacationing with any regularity, and advised this vacation was a rare and unique opportunity. She advised that we would have trouble booking future vacations as people with points had priority and we were lucky to have obtained a reservation. She concluded it was likely a "loophole with RCI". She brought over the sales manager to corroborate her story and he explained that we had to upgrade to a point system prior to returning home and if we did, they would waive our maintenance dues, (which they did for one year).
We reluctantly agreed to move forward as we felt we had no choice in the matter. As a courtesy, the sales manager sold us 1,000 points for $4500 and exchanged our initial investments for 3500 point. We were advised not to mention this transaction to anyone as they were not allowed to sell under 3000 points. Our cumulative points became 4,500 and we had now had a "legitimate timeshare" with ownership interest in 4 other locations.
When we returned to the Mainland, I received my first loan statement and of course made a payment. We wanted to treat our parents to a vacation (since we couldn't go on another one) and I logged into the website to see what 4500 points would actually buy; as it turns out, it was next to nothing. We would have had to pay more money to get anywhere and now we had dues every year, instead of everyother year, much higher dues.
I called Diamond Resorts and explained my situation, recapped the sales experience only to learn that we were not infact required to convert to points. Now I was really upset! I called Helen and the sales manager at Kaanapali Beach Club and advised I wanted my old contract reinstated, but I was advised it was too late. Not only was it too late, I was advised they failed to have us sign the correct Quit Claim Deed for the old contract conversation and they quickly mailed new a new deed to sign, notarize and return. As you can imagine, I refused to sign it and requested our old contract be reinstated, but again, I was advised it was too late. I never signed the quit claim deed, so legally, I'm not sure how the transfer occurred?
For weeks and months I called Diamond Resorts requesting help, but all attempts fell on deaf and ears. My husband and I concluded that we did not want to have any dealings with a company that conducted themselves so immorally and without regard for their members. I made contact with Diamond Resorts again and advised we wanted to deed the property back and accept that we've lost all of the money we had paid in. I advised that we would not longer be paying on the "loan" as we were sold under false and misrepresented pretenses and accepted that we've lost $15K with the inclusion of past maintenance dues. Many months past and we stopped receiving correspondence from Diamond Resorts, therefore I concluded the matter was over.
Now the dilemma. We applied for a home loan on Monday and was advised that we do not qualify as we have a foreclosure on our credit report. I thought there must have been some sort of mistake, we have never foreclosed on anything. Come to find out, it was Diamond Resorts that reported a foreclosure. Are you kidding me? Not only did we get duped, lost a large chunk of money, were treated with continuous disrespect, now this. I was never notified of a foreclosure or the proceedings of one. I contacted Diamond today and spoke with a women who dismissed my concerns while chomping on her lunch in my ear. She agreed that I did not sign anything and the certified mail was returned unclaimed. We never received notification of any certified letters. Please help me.
1 Updates & Rebuttals
Threats Work
United States of AmericaShould Have threatened Lawsuit
#2UPDATE EX-employee responds
Mon, October 01, 2012
First off, I am sorry to hear that your child is sick and pray that he/she gets better. An secondly, sorry to hear about your misfortunes with Diamond. I have worked with Both Diamond and Wyndham and know about sales agents with crooked sales techniques.
In the business it's called "Pitching Heat". I looked at the date of you complaint and don't know if it's too late, but the first thing you should have done after not having proper legal cancellation of your first timeshare is threaten lawsuit. The timeshare companies have a legal 7 day rescission form where you can cancel your purchase and they will fight tooth and nail to keep that sale and usually don't budge at all after the rescission period. However, one thing they don't like is the threat of a lawsuit. I have seen legally binding sales evaporate in the face of those words. Even if you don't do it, they know it is cheaper to give you your money back then to go to court. In your case, it has morphed into a completely different problem since you looked the other way and it tarnished your credit. Call a lawyer maybe it's not too late.
For anybody else reading this. Threaten lawsuit should be the first thing you should do if you feel you got scammed.
On another note. Being in the business, not all timeshare sales agents are crooked. There are some real good ones that sell you on the benefits and not on smoke. And women aren't any sweeter than guy agents. They can either be really good and truthful or quite the opposite.