Diamond Resorts changeover to point system

I just talked to a representative from Diamond Resorts and they informed us that starting in 2009, they are switching to points only and will not honor our floating time, which was in the original agreement. They have assigned us a low season week and have told us that we will never be able to reserve anything if we don't pay additional fees and upgrade our status. As far as we know, we purchased a two bedroom lockoff with a floating week, any time that is available during the year. We were not restricted in any way. Has anyone else been advised or been threatened by Diamond Resorts in this manner?

When I saw your posting, I contacted a person who goes to the annual meetings (just went) and knows a lot about this resort. His comment was that he understands that what you were sold is what you are entitled to. They have sold "x" conventional weeks and must keep a number of them available each season. He also said when he went for his "update" a year or so ago they told him they were only selling points. When he said he was only interested in conventional weeks --- lo and behold they came up with one. The bottom line is they are interested in selling. I hope you find this information to be accurate at this time. In the event that you are ever interested in buying points I am willing to sell some or all of mine since my husband passed away recently and I have my doubts about usage. I know my price will be a lot less than what they are quoting at the resort. It is a good resort. My husband and I bought it pre-construction in the mid 90's and have spend a vacation there every year since. I hope all goes well for you. Diana Muller

Thank you Diana, I will look into it a little further.

ATTN: All Poipu Deeded & Points owners

COPP is presenting some thoughts about the situation we all find ourselves in...

There is strong evidence of water damage at our resort. That is an unfortunate fact. DIAMOND RESORTS INTERNATIONAL has stated definitively and repeatedly that anyone currently affiliated with our resort is responsible for their share of the "Water Intrusion Assessment," or approximately $5,800 per interval owned.

DIAMOND RESORTS INTERNATIONAL has stated that failure to pay your assessment will result in foreclosure on your interval. HOWEVER, they have also indicated that they will pursue, through means including collections, your portion of the water intrusion assessment even after foreclosure. In other words, as it stands right now, only by paying your assessment can you avoid collections action.

Fast Answers: There have been internet postings where an owner at Poipu has been told by a company that if they paid them, they would take their interval and file a class action lawsuit to relieve them of their responsibility for the assessment. Our advice is to remain sceptical. They will have your deed and you are still responsible for the assessment. Remember, IF IT IS NOT IN WRITING, YOU HAVE NOTHING! Even then, it might only be worth the paper it is written on. Another owner posted that he was told by DIAMOND RESORTS INTERNATIONAL that if they were to walk away he would not be held responsible for his maintenance fees. Remember, your "MAINTENANCE FEE" is different from your "WATER INTRUSION ASSESSMENT." If you walk away now, you will lose your deed and yet you are still responsible for the water intrusion assessment. Pay attention to the details! We have seen emails forwarded to COPP by other owners, that if you pay $8,960.00 you can purchase points and GIVE THEM YOUR DEED! The down payment is $2,900.00 (more than your first installment on the assessment!) and a monthly payment of $227). Now you no longer OWN A DEEDED PROPERTY. BUT, you are now liable for almost half again as much as the assessment AND, they have your deed!

Suggestions: Monitor the internet for information regularly. Check out RedWeek.com and you will see that there are points owners being assessed just like the deeded owners. Make certain that you understand that there is no guarantee that you will not be hit with an assessment in the future AND you will also see lots of points owners being rocked by enormous increases in their annual fees. www.poipuowners.org is your website – make sure your register! This will put you on our mailing list and give you the most recent information on what is happening. Follow discussions regularly at the following: https://www.facebook.com/pointatpoipu https://blog.poipuowners.org

Here is the announcement for which we have all been waiting! The lawsuit has been filed! It was filed Friday in Federal District Court in Hawaii. COPP will be mailing out a note with the lawsuit attached. It will also be going up on our website. I think that we will have DRI's attention now! What did Mr. C say? Yes, that's right, there are "10" unhappy customers. We'll see...

PLEASE go to the ABC News website at this URL:

http://abcnews.go.com/Site/page?id=3271346&cat=20/20

and request that 20/20 investigate DRI. Be sure to make reference to the whitewash/propaganda piece CBS did with Undercover Boss on Cloobeck.

Maybe if enough people write to them they may buy into the idea, if for no other reason than to embarrass CBS News.