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  • Report:  #495230

Complaint Review: Five Star Resorts

Five Star Resorts Annual Dues and Special Assessment Fees Diamondhead, Mississippi

  • Reported By:
    Jack — Sioux Falls South Dakota USA
  • Submitted:
    Tue, September 15, 2009
  • Updated:
    Fri, January 01, 2010
  • Five Star Resorts
    PO Box 6367
    Diamondhead, Mississippi
    United States of America
  • Phone:
    6019144911
  • Category:

In November 2008 we received a special assessment letter with a billing coupon for $96.00. We paid this on Nov 15 with our Visa, your records reflect this payment.


 


In August 09 I received an annual statement from Five Star Resorts for $125.72 payable 9/1/09.  Upon contacting the resort on 8/31 to pay this amount I was advised the dues


were in fact $132.00 plus an annual assessment fee of $79.20.   I was told by "Shawna" I had an old bill.  It was received in August and dated 9/1/09. I disputed the amount as my recent statement does not reflect this information.  The following day 9/1, I called back to pay the $125.72 and advised I would not pay more until I received a statement reflecting the fees.  "Shawna" took my payment for the $125.72 and credit card information.  A short time later she called back stating bookkeeping refused my partial payment and if I did not pay the $132 I would be in default and charged a $65.00 late fee.  I paid the full $132 but refused the assessment fee until I received a statement reflecting the amount due. 


 


On 9/14/09 I received a revised statement showing the $132 annual dues and an assessment fee of $19.80. It did not state this was a quarterly assessment fee. The statement reads in bold print   "PLEASE NOTE: THIS BILL REFLECTS A QUARTERLY FEE  ($33) OR YEARLY FEE ($132)  please remit one of the amounts above.  Company may from time to time assess members 15% of the members annual  management fee." (Your words, My highlight) Note: 15 % of $132 is $19.80!!


 


Upon receiving this I contacted "Shawna" again to pay the $19.80.  She refused my payment and claimed I was past due for $59.40 and another $19.80 due in December!!!!  If I choose not to pay this I will be charged a late fee of $65 making my delinquent amount due $144. 


 


Last year, 2008, our payment was misapplied by the company and we received harrassing phone calls until we produced our cancelled check!! At first they would not accept a copy of the check from our bank.


 


I asked for a financial statement as I have a vested interest in the company and I was told they did not have to provide this.  I also asked for a copy of my contract and was told it would cost me $250.00. We believe this is because the company cannot produce a copy of a contract signed by us. We have never used this facility and never will due to the continued confusion, mismanagement and ever changing billing amounts.


 


In addition, we spoke with "Anthony" regarding our dues on 8/31/09. During the conversation Anthony told us if we didn't want to pay a lifetime membership fee our children would be responsible for this debt upon our death. That amount to be approximately $5000. 


 


We have the original copies of each of our annual statements and notations of comments made by Five Star representatives.


 


We are sending this by certified mail in accordance with the Mississippi State Attorney Generals direction. We requested the company respond in writing in a timely manner before we go forward with a formal complaint with that office.

1 Updates & Rebuttals


Jack

Sioux Falls,
South Dakota,
USA

Copy of contract received

#2Author of original report

Fri, January 01, 2010

We finally received a copy of our contract with 5 Star in Passchristian, MS. I had forgotten but next to where the annual dues of $99 are entered the company sales rep wrote "frozen". In my complaint I noted how our annual dues continue to increase along with the implementation of a "special" assessment fee.

According to this I believe 5 Star has violated the terms of my contract with them. As soon as I receive the latest statement from them I plan to notify them of this info and cancel our membership. I'm sure we will stur the hornet's nest!

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