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The Manhattan Club Lawsuit - RedWeek's Report & Most Recent Info
William,
Unfortunately, we can only go by "I was told...I was told" as we only received the massive written documents weeks after we purchased. I actually took notes and wrote down all the things we were promised during the sales presentation, and none turned out to be true.
The ironic thing is that we live in NYC and only purchased because we were promised our annual maintenance of $500 would "practically stay the same forever" since there was no pool, beach, etc. to maintain as in other timeshares. We felt that even with the RCI dues, we would be getting a bargain in trading The Manhattan Club for other properties.
Now our maintenance is $1200 annually and coupled with the RCI dues and transfer fees (which also rise each year), each vacation costs us about $1600!! For this kind of money, we could stay in luxury hotels in major cities, not the limited, sometimes run-down resorts in inconvenient locations that dominate RCI. This year we decided not to trade and just have a staycation at TMC, thereby saving the RCI and transfer fees. I called 10 months in advance to make the reservation and was in for another shock. Although "we were told" during the sales pitch that we could get a reservation easily with the number on the back of the membership card, we found out by calling that number that we CAN NOT make a reservation at TMC directly, we must do it through RCI, which means we still have to pay annual RCI dues!! So we technically own nothing except an RCI membership, all because we believed what "we were told."
You are right, if it is not in writing it's not worth anything. But realistically, the written documents arrived after the 7 day cancellation policy and it would have taken weeks to read! Like you, my husband and I have dutifully continued paying all fees to TMC (although we feel like suckers) but unlike you, we are NOT happy with our membership and I wonder if you are perhaps affiliated with Mr. Eichner and monitoring this site. Like everyone else, I hope that there is a resolution soon. I don't even care if our original purchase price is lost, as long as we never have to pay the maintenance again!!
williamm465 wrote:I was told.....I was told......I was told. If it's not in writing, it's not worth anything. You learned an expensive lesson.
Lena P.
Shirley -
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No--I live in Maine. I retired to Maine from NJ. I missed going into Manhattan so I bought in to the Manhattan Club. I never heard of Mr. Eichner until this whole mess started. I agree that he is probably not very honest. He did some things and I hope he pays the price. That does not mean we can renaig on what we signed unless it is directly connected to his misdeeds.
I don't know what kind of membership you have. I have never belonged to RCI. I have seven days over a two year period--three days one year, four days the nest. Including taxes, it costs me just shy of $1500 a year. I just paid my two year maintenance fee of $2772.00. I pay taxes each year which brings my total to about $3000 for two years.
Isn't it interesting when people with whom you disagree make ridicules accusations. When you do that you actually sound like Donald Trump.
William M.
Last edited by williamm465 on Aug 11, 2017 10:54 AM
Tulipblossom, I believe you are correct after reading William's nonsensical responses. I converted my membership from RCI to 7 days per year at TMC. I'm happy for William that he's only out less than half of what I pay every year. I love Manhattan and I will spend my hard earned money staying in a clean, well maintained luxury hotel on my next trip. I think William is the exception, and not the rule in this situation. Hopefully there's strength in numbers and the majority of us will prevail!
Becky F
Don't feel sorry for me. I bought something I understood, and I'm glad that I did. I enjoy going to TMC each year--three days one year and four days the next. Sure, it's expensive, but in my opinion worth it. If you want your money back, I hope you get it. Everyone should be happy. Just don't demonize those with whom you disagree. Good luck!
William M.
williamm465 wrote:".........again, your quote. where dies trump fit into this picture? perhaps you have your comparisons somewhat mismatched.william"That does not mean we can renaig on what we signed unless it is directly connected to his misdeeds." your quote;\ MISDEEDS.............DEFINITELY INDEED. WHAT MORE TO YOU NEED: LIES AT PURCHASE, EXPONENTIALLY, EXORBITANTLY INCREASING MAINTENANCE FEES, LIES, FRAUD, SHAMS...........NEED I GO ON. MISDEEDS?...............INDEED. EICHNER NULLIFIED AND VOIDED HIS OWN CONTRACT. WHY SHOULD OWNERS CONTINUE TO PAY MAINTENANCE FOR A NONEXISTENT CONTRACT?
"When you do that you actually sound like Donald Trump.
william, think twice before criticizing others if you choose to pay these exorbitant maintenance fees perhaps this may be your way of disposing of your discretionary income. this is not true for most of MANHATTAN CLUB OWNERS. those not paying have valid reasons for not doing so.
chris
No--I live in Maine. I retired to Maine from NJ. I missed going into Manhattan so I bought in to the Manhattan Club. I never heard of Mr. Eichner until this whole mess started. I agree that he is probably not very honest. He did some things and I hope he pays the price. That does not mean we can renaig on what we signed unless it is directly connected to his misdeeds.
I don't know what kind of membership you have. I have never belonged to RCI. I have seven days over a two year period--three days one year, four days the nest. Including taxes, it costs me just shy of $1500 a year. I just paid my two year maintenance fee of $2772.00. I pay taxes each year which brings my total to about $3000 for two years.
Isn't it interesting when people with whom you disagree make ridicules accusations. When you do that you actually sound like Donald Trump.
Chris V.
Last edited by chrisv126 on Aug 12, 2017 09:08 AM
There are many, many different 'ownership' plans. Biennial, triennial, weekdays only, split week etc, etc... what is true for one 'owner' may not be true for another. Also there were at least 88 versions/amendments to the contracts that were executed by TMC, but not communicated to all 'owners'. They used the power of attorney that we all signed as the authority to do so.
Dennis C.
I think you were treated the same way we were. You were told you could chose to either stay at TMC or receive points to book at another resort through RCI. This is bait and switch because you were only sold RCI points and no access to TMC except through RCI. We stopped paying our dues because we were defrauded. Nothing has happened to us. Our credit rating will not be affected as TMC is under investigation by the NYAG.
Fred C.
Hello to all: AG closed case against TMC today with a $6.5 million settlement.
here is the ag's press announcement
A.G. Schneiderman Announces $6.5 Million Settlement With Midtown Manhattan Timeshare That Scammed Purchasers
The Manhattan Club, Timeshare In Midtown Manhattan, Will Pay Restitution To Hundreds Of Purchasers That Were Misled About Their Ability To Reserve Rooms And Resell Shares
Settlement Is The Largest In Recent History Of The AG’s Real Estate Finance Bureau
Schneiderman Reminds New York Residents To Be Wary Of High-Pressure Sales Traps Utilized By Some Timeshare Companies
NEW YORK – Attorney General Eric T. Schneiderman today announced a $6.5 million settlemnt with the owners and operators of the Manhattan Club, a timeshare building in Midtown Manhattan, over the sponsor’s repeated false promises to potential and current share owners.
The settlement is the largest in recent history for the Attorney General’s Real Estate Finance Bureau. Under the terms of the settlement, the operators of the Manhattan Club, at 200 West 56th Street, acknowledge that they repeatedly misled shareowners about the club’s reservation process, their ability to sell back their shares, and the details of the club’s state-approved offering plan.
“The owners of the Manhattan Club lured thousands of timeshare buyers with false promises and shady sales tactics that violated New York law,” said Attorney General Schneiderman. “While timeshares can be legitimate enterprises, scams like this one are common. To avoid becoming a victim, always be wary of high pressure sales tactics.”
The club bills itself as a “unique” “residence-style boutique hotel” that blends “a vacation ownership retreat with a luxury suite hotel” and that offers “a hard-to-find haven in the midst of this active city.” The website appeals to people who “frequently visit New York City to enjoy Broadway theatre, fine dining and shopping, [and] classical performances.”
The owners and operators in this case are T. Park Central LLC, O. Park Central LLC, Park Central Management, LLC, Ian Bruce Eichner, Leslie H. Eichner, Stuart P. Eichner, Scott L. Lager, Hospitality Advisors, LLC, New York Urban Ownership Management, LLC, and Manhattan Club Marketing Group LLC.
In addition to the $6.5 million restitution to eligible timeshare owners, the settlement requires:
The owners and operators to be barred from the timeshare industry The owners and operators will sell their stakes to a third-party purchaser and relinquish management control Remove all sponsor-appointed current officers and directors from their positions as members of the Board of the Timeshare Association. Eligible timeshare owners will be contacted by a Claims Administrator at a later date about disbursement of the restitution.
The Office of the Attorney General (OAG) began investigating the Manhattan Club in 2014 after receiving repeated complaints from shareowners who paid tens of thousands of dollars to become Manhattan Club “owners,” but were unable to make reservations due to a claimed lack of available rooms by the hotel’s operators. At the same time, rooms in the Manhattan Club were being rented over the internet to the general public, in violation of the timeshare’s offering plan.
In Spring 2014, OAG sent undercover investigators to record the Manhattan Club’s “Vacation Ownership Experience” sales presentation. Investigators found evidence indicating that the Manhattan Club’s sales tactics amounted to a bait-and-switch scheme.
Prospective purchasers were baited by a relentless sales pitch that included a number of misleading promises, including that ownership in the Manhattan Club is “better than money in the bank.” Prospective buyers were also told that the club does not rent rooms to the general public, that reservations were easy to make, and that few restrictions apply to reservations by owners.
But these promises were false. For example, contrary to the club’s explicit promises in its offering plan, room availability to owners was greatly limited because rooms were being rented out to the general public. That means that all reservations are subject to availability and owners, in some cases, were unable to use any of the time they purchased. Further, the owners’ annual common charges jumped approximately 200% in the last ten years – to about $2,000 per ownership interest per year for the smaller units – on top of the upfront purchase costs that ranged from just under $10,000 to over $40,000 per ownership interest. Some frustrated owners have sold their ownership interests back for a mere $1, just to escape the burdens of paying these charges.
In July 2014, pursuant to General Business Law section 354, a provision of New York’s Martin Act that confers broad powers on the Attorney General to investigate and halt fraud, a Manhattan Supreme Court justice barred the Manhattan Club from selling timeshare interests, preventing them from withdrawing money from certain bank accounts, and stopping them from foreclosing on Manhattan Club purchasers during the pendency of the investigation.
For information about how to protect yourself from timeshare, home improvement and vacation scams, click here for the Attorney General’s brochure “Don’t Get Burned: Attorney General’s Guide To Protecting New Yorkers From Summer Scams.”
This case was handled by Louis M. Solomon, Chief of Enforcement in the Real Estate Finance Bureau, with assistance from Assistant Attorneys General Nicholas Minella and Kimberly Ver Ploeg in the Real Estate Finance Bureau, as well as Matthew Woodruff, Senior Enforcement Counsel, Assistant Attorney General Tanya Trakht, and paralegals Natalya Fadeyeva and Pascual Noble in the Investor Protection Bureau with notable contribution by Jonathan Werberg, Senior Data Scientist, Research & Analytics. This case was investigated by former Supervising Investigators Luis Carter and Michael Ward, Supervising Investigator Sylvia Rivera, Investigators Karon Richardson, Elsa Rojas and Former Sr. Investigator Richard Friedman, under the direction of Deputy Chief John McManus and Chief Dominick Zarrella of the Investigations Bureau. Former Assistant Attorneys General Serwat Farooq and Elissa Rossi also assisted on the case. The Real Estate Finance Bureau is led by Bureau Chief Brent Meltzer and overseen by Executive Deputy Attorney General for Economic Justice Manisha M. Sheth.
Jeffrey W.
