First Lawsuit filed against Viking Ship LLCs / PCCs

[VictorW]

David Macmillan

Ah didn't notice the first time. I'm guessing Timeshare Relief, Inc. utilized the "viking ship" scheme?

James Tarpey, a Montana Resident

I'd imagine is in the mix because he offered closing for the mentioned companies (Resort Closings, Inc.). I don't see where DFAC would be doing anything wrong because every piece of inventory they take in appears to sell. Of course, I might be mistaken, and pieces of inventory from this vacation club might have been deeded to them and was foreclosed on.

 

[e.bram]

The PCCs business is similar to point system schemes. If one one the point system goes belly up because the members don't psy dues can the club members be sued?

 

[BocaBum99]

In my view the PCC business model can serve a constructive purpose if performed in partnership with an enlightened HOA. Essentially, a contractor relationship. But, it does require HOA's to wake up. Meanwhile, lack of action by the HOA's has created the void that these bad actors fill.

I agree. I told Ken that the resorts need to work with the PCCs to get deedbacks. He didn't want to hear anything of it. Everytime I brought it up, he kept going back to creating legislation to allow timeshares to self terminate.

There are PCCs that give money back guarantees if they can't transfer it. If I were a PCC, that is what I would do. In fact, I may start another thread to show what an ethical PCC can operate even in light of the new law. Most PCCs have a list of resorts that they don't and can't transfer. When such a resort is encountered, the only option for the client is legal action against the resort.

 

[DeniseM]

I don't see where DFAC would be doing anything wrong because every piece of inventory they take in appears to sell.

How could you possibly know what inventory they take in?

 

[BocaBum99]

Ah but there IS value as in nearly every case 85-90% or more of the owners ARE paying.

85-90% may be paying, but at least 30% want out and they have no way to do so. Getting rid of the PCCs will make it impossible for anyone to exit their timeshare in hundreds if not thousands of resorts.

The only reason the PCC business model exists is because many resorts have zero value due to high maintenance fees and/or deteriorating properties.

I predict that there will be a new industry that emerges right after the PCCs go out of business. The business will be akin to ambulance chasers. There will be a ton of law suits against HOAs for not taking appropriate action to create liquidity for resale timeshares.

We need a law in every state for abandoning timeshares like an estate can do when someone dies and nobody wants to take over the property. Death cannot be the only answer for getting rid of your timeshare.

 

[TUGBrian]

Its interesting to see the actual ARDA reaction to this...as up until recently many of those folks in that list were all buddy buddy with ARDA (including many running companies that were members).

its not like ARDA was unaware of this practice...its only now that its become such an industry wide problem that they now "see it as an issue".

While half of me wants to support them for pushing back against PCCs/LLCs....the other half rolls its eyes at the fact they let it go on for so long.

 

[benyu2010]

I can not imagine how a resort can sue buyer for the purchase of deed that they refuse to take back...

 

[VictorW]

How could you possibly know what inventory they take in?

They turn away 8-10% of their phone ups (do not take) because inventory from certain resorts don't sell (even for $1 with closing covered)... They only take inventory in that is an easy sell for them.

 

[DeniseM]

They turn away 8-10% of their phone ups (do not take) because inventory from certain resorts don't sell (even for $1 with closing covered)... They only take inventory in that is an easy sell for them.

Again - How do you know this?

 

[VictorW]

Again - How do you know this?

Through an employee of theirs...

 

[DeniseM]

Through an employee of theirs...

So - you are basing your assumptions upon an employee's unsubstantiated statements... seriously?

Here is an easy question - what do the do with the inventory they can't sell?

 

[VictorW]

So - you are basing your assumptions upon an employee's unsubstantiated statements... seriously?

Here is an easy question - what do the do with the inventory they can't sell?

HAHAH They only take in inventory that has maintenance fees paid 1 year in advance and they list it with ALL closing costs (including resort transfer fees) covered! They have a year to even give it away... so I'm very doubtful that even happens!

 

[timeos2]

85-90% may be paying, but at least 30% want out and they have no way to do so. Getting rid of the PCCs will make it impossible for anyone to exit their timeshare in hundreds if not thousands of resorts.

The only reason the PCC business model exists is because many resorts have zero value due to high maintenance fees and/or deteriorating properties.

I predict that there will be a new industry that emerges right after the PCCs fgo out of business. The business will be akin to ambulance chasers. There will be a ton of law suits against HOAs for not taking appropriate action to create liquidity for resale timeshares.

We need a law in every state for abandoning timeshares like an estate can do when someone dies and nobody wants to take over the property. Death cannot be the only answer for getting rid of your timeshare.

Repeating that owners "have no way out" over & over doesn't make it true. In fact they always have a way out - but they want an easy way, even if it costs money, not the correct way. Hardly equates to no choice merely means choices they don't like. Too bad. Don't buy if you don't like the rules. They are well known before any purchase even retail.

 

[DeniseM]

HAHAH They only take in inventory that has maintenance fees paid 1 year in advance and they list it with closing costs covered! They have a year to even give it away... so I'm very doubtful that even happens!

If it never happens - why are they being sued?

You are starting to sound like you are affiliated with this company...

 

[VictorW]

If it never happens - why are they being sued?

You are starting to sound like you are affiliated with this company...

Now who's the one making assumptions?

As I mentioned earlier, I had assumed it was because of his closing company, as they do offer closing for 3rd parties.

 

[DeniseM]

You have already posted that you work in the industry, so yes I'm definitely suspicious, since you claim to have inside information:

Some of the owners had owned for as long as 20 years (They were 55.45 a while back, Silverleaf's maintenance fees are 76.45 today). Their records showed annual payments of 55.45 and were current.

I worked as a salesman, and we actually put in writing for when we upgraded that they would keep their reduced maintenance fees on their new unit (It was the only way they would upgrade).

 

[ronparise]

Repeating that owners "have no way out" over & over doesn't make it true. In fact they always have a way out - but they want an easy way, even if it costs money, not the correct way. Hardly equates to no choice merely means choices they don't like. Too bad. Don't buy if you don't like the rules. They are well known before any purchase even retail.

That its impossible to sell some of this stuff is not common knowledge. And it's certainly not something that's discussed in a sales room.

I agree that there are ways to get rid of a timeshare other than PCCs. Prime among them is to just stop paying mf

 

[VictorW]

It looks as if the resort filing the lawsuit falls into that category of those you can't even give away (unless you own a prime week):

http://www.ebay.com/sch/i.html?_odk....TRC0&_nkw=americana+timeshare+tahoe&_sacat=0

 

[BocaBum99]

Repeating that owners "have no way out" over & over doesn't make it true. In fact they always have a way out - but they want an easy way, even if it costs money, not the correct way. Hardly equates to no choice merely means choices they don't like. Too bad. Don't buy if you don't like the rules. They are well known before any purchase even retail.

I can prove they have no way out. If they had a way out, there would be no scams. The fact that there are resale scams proves there is no resale market for tons of resorts. Are you seriously going to argue that point?

 

[BocaBum99]

It looks as if the resort filing the lawsuit falls into that category of those you can't even give away (unless you own a prime week):

http://www.ebay.com/sch/i.html?_odk....TRC0&_nkw=americana+timeshare+tahoe&_sacat=0

John would argue that those ads are fake. They are just a figment of a timeshare message board imagination. There are loads of buyers/takers for that resort. They are coming any minute now.

 

[bnoble]

While I agree with your overall point Boca, the "evidence" you are using here is specious, because the resale market is fragmented and opaque. Were it more transparent, I would be more inclined to agree.

 

[csxjohn]

I can prove they have no way out. If they had a way out, there would be no scams. The fact that there are resale scams proves there is no resale market for tons of resorts. Are you seriously going to argue that point?

I agree it is hard to get out but it is not impossible. You are failing to take into account the "lazy" factor.

Time and time again we see people come here asking if this or that company can really take my TS off my hands? They get the advice to research and place ads to try to give the unit away.

We often never hear from them again! A lot of people want the easy way out even if it costs them some real money.

As Ron pointed out, it is very easy to get out without dying, just stop paying the MFs.

 

[Rent_Share]

Converted Motel on a very busy by-pass two lane road

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[VictorW]

Converted Motel on a very busy by-pass two lane road

Ha... you can rent directly from them for $75/night and the maintenance fees are $741/yr.... clear to see why there's no reason to own...

 

[DeniseM]

I agree it is hard to get out but it is not impossible. You are failing to take into account the "lazy" factor.

Time and time again we see people come here asking if this or that company can really take my TS off my hands? They get the advice to research and place ads to try to give the unit away.

We often never hear from them again! A lot of people want the easy way out even if it costs them some real money.

As Ron pointed out, it is very easy to get out without dying, just stop paying the MFs.

I agree completely - most people just want the easy way out - to hell with the consequences.