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Re: Manhattan Club Lawsuit (by Dennis R.):

Thoughts regarding some of the issues recently discussed here: (in no certain order)

1.) “A $6.5 MILLION PENALTY AGAINST EICHNER DIVIDED AMONG THOUSANDS OF TMC OWNERS IS PROBABLY ABOUT 10-12 CENTS.”….The $6.5M settlement is to be used to compensate the administrator of the NYAG settlement and those who could not book a stay during 2011-2014 that remain current with maintenance fees. The total number of individuals affected who qualify is probably several hundred….not thousands. 2.) “The credit agencies go after people who owe money--for a percentage--a very large percentage.”….the amounts not recovered are written off to the benefit of the corporation. Meanwhile the individual is hit with a collection action on his/her credit report for seven years. 3.) “ I want to point out that when some owners do not pay their maintenance fees, it does have an effect on those that do. How can staff salaries be paid, taxes be paid, utilities be paid, repairs/maintenance be paid, insurance be paid when there is a shortfall in revenue ?” ….The losses are covered via tax laws of capital gains and losses for corporations. Furthermore if the corporation uses “GAAP” reporting …..it is most likely there is a financial gain for the Eichners. 4.) “the fees were rising HIGH long before myself and others decided to stop paying. So you can throw that theory out the window, all the while collecting our fees, refusing us time ..and renting our time to the public. How do you explain that... if you think that the reason the fees went up because of owners who are not paying??”….Maintenance fees will rise incrementally when there are payment defaults by owners. However the significant increases that have occurred are primarily based on the building owners’ desire to skirt NY rent control guidelines and profit for the same which is then charged to TMCNY and passed on to timeshare owners.