Diamond Resorts reduces owner benefits again!

Many St. Maarten timeshare leaseholders may be unaware of the status of the St. Maarten court case that was filed in 2009 on behalf of the members of the Royal Palm Beach Club & Flamingo Resort Lessee Association N.V. As there are no class action lawsuits per se in Sint Maarten, the Association filed as Plaintiff on behalf of its Members. Below is a summary of the case. The Association continues to accept new members. Information about joining can be obtained by emailing diamond-litigation@conet.net =================================== Update - Diamond Resorts International Owners in St. Maarten Royal Palm Beach Club and Flamingo Beach Resorts continue their battle against increase in maintenance fees.

The Association of leaseholders will have its’ next court appearance on March 9th (new date April 6th). The Association continues to accept members who have leasehold interests at Royal Palm and Flamingo. Further information about joining the association can be obtained by emailing diamond-litigation@conet.net. The Association is represented by the Bermon Law Offices in St. Maarten.

The Association maintains that the increases are in violation of contract agreements and the well-recognized principal in Dutch courts of fairness and reasonableness. Diamond continues to avoid the issues at hand by invoking procedural diversions including claiming that the Association has no right to represent the leaseholders despite the Court’s acceptance of the Association in February 2009.

The Association charges that a great deal of the costs paid by the plaintiff is immediately channeled away to the United States, instead of the moneys are spent in favor of the resorts on Sint Maarten.

Diamond says that if they don’t receive the increases both resorts will close. They have not provided any financial records that substantiate the expenses they claim are attributed to resort maintenance.

The Association hopes the Court will order the production of financial records to substantiate the fees charged to leaseholders. If successful the membership is looking for a return of substantial overpayments since this practice began.

The "points Owners" can reserve 13 months out, yes, but the pool of units is very small compared to the pool of units available to the "Deeded Owners", we are not competeing for the same pool of units weeks... So do not think you are getting the shaft by the "Points" users... On top of that for my oceanfront weeks of points I pay $ 2,100 in annual fee's while you "deeded" folks are paying $ 1,400... The "Deeded " owners can get a reservation 12 months in advance, but its very iffy for the Points Owners...

Thank you for expressing your views with respect to Points owners. Our leaseholders' in many cases have been coming to both of our St. Maarten Resorts since the early 1990's and some even earlier. As such, many if not most of them have no interest in trading, or a portfolio of resorts and therfore no interst in "Points". That is what RCI and/or II was to provide - the privilege to exchange. Many of our Members have been promoted quite heavily to surrender their leashold interests and convert to points. Many of the Members have expressed a strong view that these two resorts are their home away from home. Friendships haven been formed as the same people are in residence at the same time each year. Members and other leaseholders do not have any requirement to make reservations 12 or 13 months in advance as the leasehold interest is for the most part tied to a specific Unit. It is interesting that you say that you pay $2,100 for "annual fees" versus the $1400 paid by leaseholders. One might imagine that your annual fee includes the infrastructure and overhead that supports the product that your purchased.... not a leasehold. Your ability to utilize your "points" at other Diamond properties appears to be that product. In the case at hand for the leasehold Members, it is believed that the maintenance charges requested and paid are not just for budgeted maintenance and expenses specific to our resorts, but also include perhaps the same things that your annual fee pays for. As you say -- you pay an annual fee. Leaseholders pay "maintenance" which includes a hefty management fee for Diamond to run the resort. The budget numbers presented by Diamond have skyrocketed and continue to do so. That is undisputed. The members of the Association want to see their resorts properly maintaned; but they expect complete transparency and production of financial records to determine if the money paid is for the benefit of each of the leasholders resorts and not for things that we call "off-island" and unrelated to " maintenance". The contracts entered into and being litigated are pre-Diamond and call for payment of "maintenance". Dutch law may be somewhat different than American law in that there is a heavy burden to demonstrate that if there is a dispute, what is asked for is "fair and reasonable". Our goal is to ask for proof that what is invoiced as maintenance in accordance with our contracts is actually a maintenance budget. The Association maintains it is not. The Association does not accept Points holders as Members as we are litigating specifically on our contracts that pre-date Diamond.

Diamondr4,

I think MIchaeld414 was responding to an earlier Point at Poipu discussion, and not your St Maarten post.

Diamond seems to be all members adversary... Their attitude displayed recently at the Annual Meeting for the Point at Poipu was to act as though all those attending were the enemy, threats of litigation by Diamond against any who challenged their rightful authority in what looks like a corrupted control of the Board of Director's... Any organization that treats its members in that way, is hiding something they do not want to become public.... I for one believe this is not much different that any other Ponzi scheme in that Diamond can continue to sell points far beyond their ability to accomodate, and raise their fee's beyond what is needed to maintain the facilities...

Michael, I was there and totally agree with you!

I also realize that if the Deeded Owners succede in gaining control of the Board of Directors, and get rid of Diamond as the management, the Points Members will not gain anything, and most likely loose something... The Points Owners most likely have paid far more for the Points (Week) equivalent that the Deeded Week owners. I know that we paid $ 56,000 for our two week oceanfront points, and $ 4,200 for 2010 fee's... If you do not have the freedom in your schedule to reserve a full 13 months in advance (12 months for Deeded), you will not find many choices in your selection.... I am not sure what the long term solution to this problem is, but I do know that the more Points that Diamond sells, will hurt all of the Points Members who bought specifically for the Point at Poipu...

Sorry to hear you bought points. The two independent realtors I talked to 6 years agontold me to stay with fee simple ownership & don't buy points unless you really don't like your home resort. Simple truth is that Hawaii remains extremely high demand, so you have to compete to come back if you own points.

I, too, am talking to Timeshare Relief to pay them to take me out of my 5000 annual points at Diamond Resorts. My annual fees are $887 now and go up every year. I am interested to know how you contracted with T.R. to do that for $2000 with annual fees similar to mine. I was quoted $4400.

What was done 6 years ago or two years ago has little to do with the problems we have today... We have what we have, and now its either change it by legal means, oust Diamond, or what ever action will help us all out... But lets not start getting Points vs Deeded owners fighting one another...

Would like to join in any effort to address these concerns with Diamond Resorts. I own only 5000 points and pay an ever increasing annual fee now at $878!

We just received a report that RCI will not accept a weeks deposit from a Diamond Resorts. Can anyone verify the accuracy of this report?

Where did you hear that RCI refused to accept Diamond Points for a reservation... Maybe RCI knows something that we do not know.... Can you chase down where that came from...

Report was received from the editor of an online timeshare info portal who said RCI is sending out messages (email) when someone tries an online deposit. Another online portal from Canada is suppossed to be sending out an emailing on this subject. We have no independent verification therefore the reason for this posting!

Is this just for points? or does it affect deeded owners that bank a week and then go for two weeks?

We have no idea. Nobody has confirmed this Report as of yet!

Please clarify...$2100.00 in fees for how many weeks usage...Royal Palm or Flamingo...unit size?

diamondr4 wrote:

We have no idea. Nobody has confirmed this Report as of yet!

This is a reply to posting that implied RCI is no longer accepting Diamond Resorts weeks for deposit.

RCI continues to accept Diamond Resort weeks for deposit. I just deposited four of my weeks at Historic Powhatan Resort in Williamsburg and even exchanged two of them via RCI exchange. Did these both via online deposit (previously deposited) and over the phone (first time deposit required a call). Note: deposits and exchanges were done in late May 10.

E. Cordova

I didn't re-read this entire thread, but could the topic be in regard to Collections owners who bought resale? There have been issues with making exchanges for those owners (who are no longer in Club), but Collections contracts would exchange thru II, not RCI.

$ 887 for 5000 points is very high, I thought our $ 4,200 for 31,000 points was high....