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Class Action Against Diamond Resorts? (by Irene P.):
Jared K, Tristan S, Noreen, As I posted earlier, Diamond is one of the only timeshare companies that has a class action ban in the their contract, forcing arbitration. Arbitration is binding and private. Critics feel arbitration is pro-industry as Diamond pays the arbitrators $400 to $800 an hour as opposed to a judge assigned at random in a typical lawsuit. There is one real class action against Diamond accusing the company of selling points as an investment. It was filed Feb 2018 and the judge still has not ruled. Class actions take years. If won, an appeal will take another year or more. It is better to follow our instructions on regulatory filings. We have a team of 10 Supporters who answer questions. Instructions can be found on our Diamond member sponsored Facebook of over 2600 members (including Diamond employee observers) alleging unfair and deceptive sales practices. Many have been helped working through the appropriate regulatory, law enforcement authorities and media outreach. This is the link to our Facebook. https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/ Also, write and call the representatives listed below in support of Arizona HB 2639 which would allow a 14 day rescission and the ability to cancel within at least 10 years. The timeshare lobby (PAC) ARDA is strongly opposed. Our "voluntary" donations at work.
ARIZONA HOUSE APPROVES 7 TO 0 TO PROTECT CONSUMERS On the heels of the hundreds of timeshare complaints filed with the Arizona Attorney General’s office by timeshare members describing unfair and deceptive practices, and a settlement and issuance of an “Assurance of Discontinuance” for one major timeshare company, a proposed Arizona House Bill 2639 proposes consumer safeguards by allowing a fourteen day rescission period, strengthening disclosure requirements, and includes other provisions regarding the cancellation of a timeshare contract. There have been numerous Attorneys General investigations, BBB complaints and lawsuits throughout the country.
This bill is strongly opposed by the timeshare lobby ARDA, an industry supported PAC.
Timeshares have virtually no secondary market. Buyers enter into a perpetual contract, often buying a product they have not even had a chance to try before purchase. Buyers buy when on vacation, are told to review documents after they return home from vacation, often after the rescission period has ended. When the sale is made by “Pitching Heat” or unfair and deceptive sales practices, member complaints are typically dismissed via the oral representation clause which states the buyer did not make their purchase based on verbal representations. Members have reported several ways the company or sales agent dodged the contract rescission period such as, “This is a new program that will not be available until after the first of the year,” or “Wait a few month before refinancing” when banks won’t finance timeshares. Often the elderly, many veterans, are targeted. Purchasers typically purchase a timeshare in a state other than the buyer’s state of residence, making it difficult to reach the appropriate lawmakers.
Provisions in the proposed bill:
• The proposed bill allows a 14 day rescission period. • The purchaser may cancel the purchase agreement and relinquish all the timeshare interest within one year after the purchaser signs the agreement. • At least ten years after a purchaser purchases a timeshare, a purchaser who has paid the entire purchase price and current annual fees may terminate the purchase agreement without cause. • The bill also requires disclosure to alert the purchaser that the contract may be of a perpetual nature.
Please contact the following representatives and bill sponsors in support of Arizona House Bill 2639. Please call and write to voice your support.
Bolick, Shawnna (602) 926-3244 SBOLICK@azleg.gov (Bill sponsor) Biasiucci, Leo (602) 926-3018 LBIASIUCCI@azleg.gov Blackman, Walter (602) 926-3043 WBLACKMAN@azleg.gov Carroll, Frank (602) 926-3249 FCARROLL@azleg.gov Dunn, Timothy M. (602) 926-4139 TDUNN@azleg.gov Fillmore, John (602) 926-3187 JFILLMORE@azleg.gov Finchem, Mark (602) 926-3122 MFINCHEM@azleg.gov Grantham, Travis (602) 926-4868 TGRANTHAM@azleg.gov (Committee Chair) Kavanagh, John (602) 926-5170 JKAVANAGH@azleg.gov Payne, Kevin (602) 926-4854 KPAYNE@azleg.gov Roberts, Bret (602) 926-3158 BROBERTS@azleg.gov Toma, Ben (602) 926-3298 BTOMA@azleg.gov Weninger, Jeff (602) 926-3092 JWENINGER@azleg.gov