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Arizona Attorney General Announces $800,000 Settlement with Diamond Resorts

Discussion in 'Diamond Resorts International - DRI' started by nuwermj, Jan 4, 2017.

  1. nuwermj

    nuwermj TUG Member

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  2. Iggyearl

    Iggyearl TUG Member

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    The details on the violations read like a compendium of timeshare complaints. And the remedies include secret monitoring of future timeshare pitches in Arizona. That is one big settlement! I wonder if Mr. Cloobeck and Mr. Palmer will be asked to contribute. :clap:
     
  3. Ty1on

    Ty1on TUG Member

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    The money itself is peanuts. Note that in the part of the settlement allowing recent victims to return their contracts, they simply are not responsible for any obligations going forward. They are still out what they've paid to that point. Plus they have to go through the red tape of filing a complaint with the state. The terms of disclosure could be significant in concept, but the salespeople will distract the victims and whitewash the terms to the point where the victims walk out not understanding what just happened to them, just as it is now.

    Secret shoppers will be listening for the disclosures and will be satisfied that DRI is following the settlement requirements. The victims won't be listening for them and will probably be mentally drained by the time it gets to that point.
     
  4. TUGBrian

    TUGBrian Administrator

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    glad to see these victims are getting money back and out of their contracts!
     
  5. TUGBrian

    TUGBrian Administrator

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    also the reason why we stress so much to report scams to both your state AGs office, but the state the company exists in!

    only with enough complaints will AGs offices pursue them!
     
  6. WJS

    WJS TUG Member

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    In New York State, Attorney General Schneiderman demonstrated that he has testosterone, and zero tolerance for the antics of The Manhattan Club:

    https://ag.ny.gov/press-release/ag-...-barring-sales-manhattan-club-timeshare-hotel

    The New York State timeshare purchaser Disclosure Statement is notably more specific about the risks of purchasing a timeshare, than the Disclosure Statements in many other states.

    Given all of the evidence against Diamond, I am surprised that the Arizona Attorney General did not impose a much more significant financial penalty against Diamond, then the chump change/Cost of Doing Business (to Diamond) of $800,000.00.

    I'm glad to see that the Arizona Attorney General recorded their findings, related to Diamond's business practices, but I am skeptical that the Arizona AG's Assurance of Discontinuance will change anything in Diamond's day to day operations. The "take back" provision of the A of D does nothing more than get a select group of Diamond Purchasers out of their purchase; those Diamond Purchasers will still be out whatever they paid for their Diamond timeshare and financing costs. And, the most ironic part of all of this, Diamond will "reacquire" someone's timeshare, at no cost to Diamond, and turn around, and sell it again. So, Diamond will have made money on the initial purchase/sale and financing (a significant cash stream for Diamond), if the timeshare purchaser financed their purchase through Diamond, then make money again (on the same inventory (perhaps wrapped differently, or reintroduced in a new wrapper) on another sale, and on any Diamond financing that goes with that sale. Hence, the "owner surrender program" is quite the gift to Diamond.

    In my opinion, it will be business as usual at Diamond, and the only thing that will change the inherent culture at Diamond is implosion (or aggressive, punitive actions against Diamond by numerous state Attorney General's).

    As stated by Brian, above, to all of the Diamond purchasers out there who feel that they were deceived by Diamond, I encourage you to contact the Attorney General in your state of residence, the state in which you purchased your timeshare, the state in which your timeshare is located, and the AG in the State of Nevada, where Diamond is headquartered. In addition to the AG, I would encourage you to file complaints with the Board of Real Estate, Office of Consumer Affairs, and if you are of the age that is defined as an elder in those states, the state Office of Elder Affairs. Also, if you purchased a timeshare from Diamond in a state where the Diamond salesperson is licensed as a real estate salesperson, and if you believe that you were deceived by that salesperson, or that that salesperson made misrepresentations or substantive omissions, I would encourage you to file a complaint against the Diamond salesperson/licensed real estate salesperson with the State Board of Real Estate in the state where your Diamond timeshare purchase was made, and the salesperson is licensed.

    In my opinion, we consumers need to flex our muscles with every state regulatory body that has some regulatory oversight of Diamond. Rest assured, if you as a Diamond timeshare owner did not satisfy your financial obligations with Diamond, they would not hesitate to exercise every legal right that they have, against you.
     
    Last edited: Jan 4, 2017
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  7. TUGBrian

    TUGBrian Administrator

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  8. pedro47

    pedro47 TUG Review Crew: Expert TUG Member

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    Please keep this thread open until April.:thumbup:
     
    Last edited: Mar 3, 2017
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  9. ecwinch

    ecwinch TUG Member

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    I think it would be more accurate to say they have till the end of the year to file a complaint that will entitle them to claim a portion of their money back. Not exactly the same as getting your money back.
     
  10. TUGBrian

    TUGBrian Administrator

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    the article clearly states they have until the end of next month to file their complaint/claim with the AGs office. (unless the article is wrong)


    I also dont think anyone suggested that victims would get "all" of their money back, all references ive seen merely reference them getting "money back" but more importantly, allowing them to be out of their DRI timeshare if purchased between 2011 and 2017.
     
  11. AZGirl

    AZGirl TUG Member

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