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Class Action Lawsuit (by Kathleen F.):

When I purchased into KAANAPALI Beach Club Resort (KBC), it was owned by Sunterra; later it was sold to Embassy and lastly to Diamond Resorts International (DRI). After Diamond Resorts International purchased the resort, the maintenance fees went up astronomically from year to year. Sometimes as much as 20% or more.

On December 24, 2013 I had my owners update. Brent Wilson, the sales agent, took me to a beautiful two bedroom on the 12th floor and told me about all the plans that Diamond Resorts International had in the works. Such as moving the gym to the dining room; moving the towel shack to where the gym was and there are plans to make an extra large hot tub; they already have a hot tub. I said, "Hey this doesn't need to be done did you run this by your owners?" The answer was no because they had already gone public and they were doing this to make money for their shareholders.

He went on to say they wanted to ask more money like the Marriott, Wyndham and resorts of the ilk.

When I sat down to hear what the salesperson, Brent Wilson, had to say. He started by saying they wanted an extra $100,000 from me. He gave me many reasons why I had to pay the $100,000. He also mentioned that I purchased off the secondary market; that my 4 timeshares were at different times of the year and if I wanted to continue using them consecutively and whatever time of the year I wanted, I had to pay this $100,000.

After he said Diamond Resorts International wanted $100,000 more from me, I replied back, "You want my retirement money; no way!"

Next thing I know the manager, Chris, comes over and he says I'll lock that $100,000 in for you for 18 months. Later, he comes back and says, "I couldn't lock it in. Apparently, your sales person from last year locked it in for $56,000 and it expired a week ago. Would you sign this waiver so that I can lock the $100,000 in?" I looked at him and I said, "Excuse me do I have a neon light on my forehead that says stupid, no way!!!"

So, under duress, I signed the $56,000 contract. I explained this was way more than a year's pay; I couldn't afford that too! On Christmas Eve day I got the screws put to me by Diamond Resorts International . So I went back to my room and I had a good cry. I then called a male friend and he told me tomorrow you go back and you get that contract!

That night, Christmas Eve, I wrote a letter to Stephen Cloobeck which is below. Also below that letter, Brent Wilson dictated to me yet another letter and had me send it to the regional manager. I sent both letters to Steven Cloobeck.

So the next day, CHRISTMAS, I went down to the sales department to get the contract back and the lady I spoke to said, "Let me call the sales manager down". I said, "No don't! I don't like him! Don't call him down." The lady next to her called him down. This "so called manager", Chris, looks at me and says, "I would appreciate you not going around the resort and telling people I'm a crook!" And I looked at him and said, "That word is not in my vocabulary. But if you feel like a crook it's because you are a crook!" They never gave me my contract back. I was so depressed and upset I forgot it was Christmas and missed the Christmas buffet.

The day after Christmas Brent Wilson comes down and says, "Why are you so upset what's the big deal you have time to cancel your contract. You have X amount of days to cancel." He was wrong and I corrected him. I went on to say we are in the midst of holidays and I don't know if holidays are considered in the timing which one has to cancel the contract. I went on to say this was important to me to get this taken care of.

So then Brent says to me, "WELL HOW MUCH CAN YOU AFFORD?" I thought to myself, I better give him a good figure or they won't play ball with me. So I said, "How about $10,000?" He looked at me and said, "Well how about $11,900?"

So UNDER DURESS I signed the $11,900 contract. I felt like I was cornered and there was no way out. I thought that if I didn't pay them I would have to use my 4 Hawaiian timeshares at 4 different times of the year and pay for 4 flights from Michigan to Maui and at that time the flights were $1,400 which also was cost prohibitive.

Let me add this. When Brent asked what can you afford? I thought THIS IS A SCAM BUT I WAS ALONE AND AFRAID! I was right on the money; it was indeed a scam! The following year I heard HE GOT "SALESMAN OF THE YEAR." But he got that award by lying and cheating owners like myself.

Now, I have so much time I cannot possibly use it and Diamond Resorts International will not allow you to rent your time to anyone other than friends & family. You can carry points over a year but eventually I will have accumulated so much time I will loose money. You see if I cannot use my timeshare or rent it to a friend or family member, I am plum out of luck! I loose my time and money. 😭

And if you wish to sell, you have to use all your time or when you sell, you loose the time which means you loose $$. But I cannot sell or give away my timeshare because the maintenance fee for 2016 was $9,359 and the 2017 is $9,859.

SHAME ON YOU, DIAMOND RESORTS INTERNATIONAL FOR PLACING YOUR OWNERS IN A FINANCIAL CATCH 22!!!

I am indeed a VERY UNHAPPY CUSTOMER AND WANT TO SELL ASAP!!!

------------------------------- Below is the letter I sent to Stephen Cloobeck. -------------------------------

Mr. Stephen Cloobeck, I have always touted Diamond Resorts as the best of resorts and still feel this way but my faith was rattled just recently. My owner's review at Kaanapali Beach Club (KBC) started at 8:00AM and ended at 2:30PM on Christmas Eve 2013. I thought the staff was going to simply tell the platinum members of up-coming extras or possibly updates. The news I got was that KBC has plans on doing a lot of renovations in the future. The assessment costs were so humungous I could not wrap my mind around it!!! It left me with one of two choices. Forfeit my timeshares or use all of my retirement money to keep them and go back to work. I was stunned to say the least! Now because KBC is nearly sold out, I would have to come at the assigned dates on my original deeds even though I have points (See below). That cost was also prohibitive because I live in Michigan and I would have to fly out 4x (Currently each flight is $1,400). It was that or face an assessment of tens of thousands for each timeshare. I am not a crier but I heard a crack; then brain fog sat in; I could take nothing in mentally and lastly my emotions could not be contained and I turned away from my agent for a few minutes and cried. Then I thought, "Merry Christmas" ho, ho, ho! 😭 You see, I return yearly in memory of my dearly departed father. My first year use at KBC, I was here for 1.5 days when my father drowned. Needless to say, my vacation was cut short and I would like to add Mr. Gary Manos was a class act during what was one of the roughest times of my life. Brett's manager was going to lock in a price for me for the next 18 months while I thoughtabout it. Being retired I am on a fixed, lower income even saving to make this increase would be impossible. Regardless, they were going to lock the price in for 18 months. When Brett's manager went to do this, he found that my sales agent from last year put paperwork in then to lock in the cost thusprohibiting this current increase from happening but the paperwork expired on 11/28/13. Brett's manager could not lock in the new cost because of the one currently on file. He wanted me to sign-off on the previous locked in pricing so he could lock in the new price. I was stunned and said if I was aware of this the money or other arrangements would have been made and this current situation would be a moot point. I said, I don't want to wave last year's lock on pricing; I was only a month late. I asked them to reconsider, to ask the general manager for an exception. It just so happened the regional manager, Kirk was in the house. Brett spoke to his manager and Kirk on my behalf and Kirk approved the price locked in last year - PTL! (In lieu of looking at possibly hundreds of thousands to keep my timeshares or loosing them I had to pay ANOTHER $46,000+ to keep my 50,000 points (now 58,000 points) and I could come any time of year per usual and in consecutive weeks. I do, however, feel EXTORTED! I never thought as a platinum member I would have to be concerned with any more exorbitant expenses. I was very wrong! I am curious as to why the resort asks for first right of refusal when an owner sells their timeshare on the secondary market if they turn around and penalize the owners who purchase them on the secondary market. Had I known I was going to be HELD HOSTAGE as such, I never would have purchased on the secondary market if at all because of the expense! I am now down 1/5 of my retirement savings because of this increase. I saw you twice on Undercover Boss. You showed your employees compassion. Where is that compassion for folks like me? I admit I do not know all there is about timeshares or banking companies but not many people do. They count on this. I believe this can also be said for many of their employees as there is so very much to know and online there are pages upon pages of links to information. -------------------------------Below is the letter Brent Wilson dictated to me. I wrote this to Kirk who is the general manager It was included in the letter I sent to Steven Cloobeck. ------------------------------- I find myself in quite the predicament. I was not a knowledgeable person concerning timeshares. Consequently, I purchased on the secondary market weeks and converted what I had to points and thereafter purchased more points to be a platinum member. I could schedule to go to Maui any time of year. I own weeks, week 33 (Aug 16) in unit 705; week 21 (May 24) unit 705 ; week 37 (Sept 13) unit 608 and week 6 (Feb 8) unit 915. I am retired and on a meager pittance. I am unable to pay for four flights, and assessments. I purchased here because of my rheumatoid & fibromyalgia. I wanted to be here in the winter months. Now as I write you, I am not only nervous but shaking to think I will loose what money I have saved for my retirement and have to go back to work. Is there any way you could accommodate me as if I purchased from the developer so that I could have the same opportunities as them? I am requesting to trade my weeks into the Hawaii Collection a purchase just like the owners that purchased from Suntara initially. -Kathleen

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The contract nor the money I paid under duress were never returned. The reply from Steven Cloobeck was less than exceptable. The alleged SCAM I believe to be no more than thievery IMHO.

If you wish to make this owner happy, buy me out. I can no longer afford to be an owner. My maintenance fees are eating my retirement up.

There are many websites out there with many disgruntled Diamond owners. As of to date, I am not one. I do not like taking my business to the public. Please do not force my hand!

Kathleen P.S. They forced my hand. -------------------------------

I put those letters on Tuggs and Redweek.  Shortly thereafter, Diamond's hospitality manager wrote me. She said she would take back my 3000 points. I told her I paid for those points; I want to use them this year.  I went on to say that I could no longer afford Diamond Resorts that their maintenance fees have climbed to an exorbitant amount of money; coupled with the fact that I have health issues which make it difficult for me to fly from Michigan to Hawaii which is an 11 to 13 hour trip. At that time she informed me that I could relinquish at any time. She went on to say I would have to pay $250 per contract. Since they never combined my three contracts as I had asked several times, I have to pay $750 to relinquish the 53,000 points. I have read quite a bit about surrendering your timeshare. Many buy them back; not DRI.

Later as the communication went on, she told me I had to relinquish my 53,000 points in 2016 before the 2017 invoices went out or I would we be responsible for the 2017 maintenance fees.  I explained to her that I had made reservations for the month of December for Kaanapali Beach Club in Maui and already purchased my airline tickets. She told me if I relinquished in 2016, I would loose my December reservation (and $910 I spent on airline tickets).

After much deliberation, I decided to go on my December vacation.

My plan now is to send out the relinquishment papers with the $750 on December 11 and ask for a signature/return receipt. I want to make sure that I get something stating they received the papers in 2016. This way they can't say, "The papers were not received in 2017." So, you owe us the 2017 maintenance fees.

Since they scammed me once, I wanted to be prepared for the possibility that they would give me issues with this. So, I contacted the Michigan, Nevada and Hawaiian Attorney Generals. The Michigan Attorney General basically couldn't help me; it was out of their realm of responsibility. However, the Hawaiian Attorney General sent my letter on to the people at RICO and gave me a name and email contact. The Nevada Attorney General gave me information as well. I also contacted a Timeshare Lawyer who said if I couldn't get out of this timeshare, they would assure me they would get it relinquished.

Isn't it a shame that a platinum plus owner has to go through all of this?

It is a crying shame that someone has to go through all of this malarkey because this Timeshare company is shady.

I have talked to a couple of my friends which I met here and they too have had similar experiences. One couple was flagged and they treat them poorly. One couple even told me about the class action suit so that is why I am writing you now.

stephaniet85 wrote:

Hi everyone. I too am an owner who bought in mid 2008 and have never once booked a vacation. Due to lies by customer service I just lost 7000 points for 2010. I have spent all day reading forums and websites discussing the scam DRI has pulled. Thousands of owners are unhappy and feel as though they have been scammed yet no one is actually doing anything. So many people talk about filing class action lawsuits but no one is really doing it I think we should start by banning together as Kaanapali Beach Club owners. Lets ban together. Anyone who is interested can email me at classactionagainstdri@hotmail.com.