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Diamond Resorts Settled With Man Accused of Legal Timeshare Fraud.

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What many consumers don’t know about timeshare companies is that they spend an awful lot of time in the courtroom. When they’re not battling unhappy buyers, then appraisers, state Attorney Generals and timeshare exit services keep their lawyers busy. Although a rewarding guest experience would eliminate most of the spite towards the product, timeshares choose to progress this way.

In fact, the more timeshare exit companies they file complaints against, the more they’re able to control the narrative about owner’s resources and companies like ours. By creating fear and doubt, timeshares weaken an owner’s hope to get out of their contract. Any type of news they can publish about their involvement in bringing down a timeshare scam is meant to build trust – especially with those who’ve grown impatient during the pandemic.

So while many struggle to keep up with payments on a timeshare they can’t use, Diamond Resorts International (DRI) was ecstatically announcing a payout they were going to be receiving from a recent settlement.

Why the Oklahoma Attorney Was Targeted.

On 20th of this month, the timeshare company’s case, where Ken B. Privett was named as a party (filed back in 2017), finally came to a close. Diamond Resorts settled their claims with a permanent injunction that prevents Privett from communicating with any of their members about any type of misleading timeshare exit service moving forward. The settlement also requires that the defendant pays an undisclosed amount to the timeshare giant.

Other than Diamond’s accusations of “illusionary” or “misleading” services, there aren’t many other details about this settlement, according to the Diamond press release. Aside from this attempt, Diamond Resorts has processed over 15 legal actions against third party agencies that claim to be able to get rid of timeshares. So far, nearly a dozen permanent injunctions have been the result. 

Timeshares Are Starting to Sound Rather Hypocritical.

What continues to amaze us during this time about timeshare news releases is that resorts are viewing corporate gains as wins for fractional owners. Oddly enough, almost all of the press releases by the industry are literally boasting about ending the same type of alleged misconduct that many owners say the timeshare giants partake in. So, are buyers to be thankful one less attorney has been silenced?

What about the hardship or stress surrounding their current situation? Should they remain hopeful the resort will chip in? While a cleanse of industry baggage is necessary, are the owners that these suits relate to being compensated from the funds that are being settled or awarded? Are hopeful complaints being addressed satisfactorily by their resorts? Should owners expect a kickback if they know Diamond Resorts settled?

DRI Aims to Make Owners to Feel Secure.

According to CEO Mike Flaskey, they’ve been doing a huge favor for owners at Diamond Resorts. “We’ve heard from so many of our members that they are solicited non-stop by unscrupulous companies and attorneys making false claims about their timeshares,” he said. “These bad actors scare our members and try to convince them to pay big fees for empty promises.” While he’s right about many in the exit industry, oftentimes ex-timeshare sales representatives manage these phony operations.

The CEO’s statement also fails to mention that there are effective attorney based solutions and resources for timeshare owners. Either way, he’s not exactly addressing the elephant in the room. Many owners are currently upset and seeking third party assistance. How will/are the timeshare companies resolving their owner’s complaints to prevent them from reaching out to and falling victim to a predatory agency?

Diamond Has Bigger Problems Than 3rd Party Scams.

The sad thing is, millions of unhappy timeshare owners have to sift through compelling sales pitches by scam artists just to find help for something that’s causing them grief. At the end of the day, we hope Diamond Resorts notices this. Flaskey already appears to be upset by the way his owners are treated. “It’s shameful that attorneys try to take advantage of people in this way and that’s why we’re taking action to stop them,” he says.

This press release states that Diamond Resorts settled their lawsuit against Ken B. Privett. Apparently, Diamond sees this as a win in their books, Although the terms of the settlement prevent Privett from assisting their owners, there wasn’t a judgement – according to the press release. In other words, it was a compromise to end the legal battle after several years.

The Disheartening Reality of Vacation Ownership.

The timeshare giants put a lot of time, money and resources into limiting resources available to timeshare owners. We previously discussed house bills being proposed in Florida by timeshare funded lobbyists to limit timeshare owner resources (which were not successful) to stripping language from a passed Arizona bill that would have proven beneficial to owners in getting out from under an unfavorable contract.

We will continue to publish advancements in the industry as they occur so that owners have the information needed to make educated decisions as it relates to their timeshare travel packages.

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