Diamond’s Exceptional “Practice of Coercion”

  • Post category:Newsletters
  • Reading time:6 mins read
We’re sure Diamond Resorts International thinks of itself as exceptional.
 
And after reading the details of the court case Leary v. Diamond we just might have to agree.
 
Diamond is exceptional – just not in a good way!
 
According to the lawsuit, seventy-nine-year-old Charmaine Leary of Springfield, Massachusetts decided to sue Diamond after receiving, shall we say, an excess of exceptional treatment.
 
“In May 2019, Ms. Leary, at age 79, purchased an interest in a Virginia Beach timeshare for $27,860.”
 
Diamond’s Truth in Lending Disclosure stated that Ms. Leary would be paying $23,035 in interest payments over the 10-year loan period in connection with that purchase.”
 
That’s right. If all went well, it would take Charmaine until she was 89 years old to pay off the loan and all that interest.
 
“In connection with the purchase of the Virginia Beach timeshare, Ms. Leary had been informed that she would be getting a Silver Membership.”
 
EXCEPT…she didn’t!
 
“On August 28, 2019, Ms. Leary was vacationing in Daytona Beach, Florida, at another Diamond Resort, and during the mandatory sales presentation asked about her Silver Membership and was told that she did not have such a Membership, as the ‘points’ she had purchased in the Virginia Beach deal were only ‘temporary’ points.”
 
TEMPORARY” POINTS? That’s a new one on us! 
 
We’ve spotlighted a lot of Diamond shenanigans, but we’ve never come across the “temporary” points exception. 
 
“Based on this information, Ms. Leary negotiated a new purchase of a Daytona Beach resort designed to give her permanent points for a Silver Membership.”
 
EXCEPT…the deal didn’t sound right to Charmaine, so she cancelled her new contract.
 
In fact, she wanted out of Diamond completely.
 
“On September 12, 2019, Ms. Leary was in Las Vegas, Nevada, staying at a Diamond Resort and while there she spoke to a Diamond representative, Abbas Abbas, about getting out of Diamond Resorts altogether.”
 
“During this discussion, she indicated that she wanted out of Diamond Resorts. In response, Mr. Abbas told her that he was aware that she had previously cancelled a contract but it wasn’t going to happen again as Diamond Resorts has many ‘good lawyers.’ Additionally, Mr. Abbas told Ms. Leary that due to a prepayment penalty she could not prepaythe existing Virginia Beach contract.”
 
EXCEPT…that wasn’t true either!
 
There are no provisions in the Timeshare Agreement that prohibit the prepayment of a Membership obligation, but the false representation was made by Abbas for the purpose of persuading Ms. Leary to purchase the Las Vegas interest.”
 
Threatening and lying to a 79-year-old woman! 
 
Now THAT is an EXCEPTIONAL way to make a sale.
 
Sadly…it worked. Over the course of “several hours” Mr. Abbas convinced Charmaine to make another purchase and combine her Virginia Beach loan with her new Las Vegas loan.
 
As the lawsuit puts it:
 
Diamond through its agents repeatedly misrepresented the material terms of various purchases, including membership points, her ability to prepay the obligation, and threatened her with its attorneys and a potential suit.”
 
“Ms. Leary has been coerced into buying these contracts through a pattern and practice of coercion, misrepresentation, and undue influence.
 
At Diamond, exception-filled sales seem…well, acceptable. But they shouldn’t be.
 
Let’s tell Mark Wang that coercing and lying to elderly customers is unacceptable. He’s the CEO of Hilton Grand Vacations, which purchased Diamond Resorts in 2021. You can email Mark at mark.wang@hgv.com
 
We should also find out what Jason Gamel thinks of Diamond’s exceptionally poor practices. Jason’s the President and CEO of the American Resort Development Association (ARDA), which represents timeshare companies in Washington. His email is jgamel@arda.org
 
Wonder if Diamond’s tactics are exceptional or just business as usual? Use the information in this list of ARDA VIPsto contact your timeshare’s leaders and find out.
 
Have you been the victim of exceptionally underhanded timeshare companies? Let us know at info@timesharefacts.com.


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Timeshare Facts cannot help you get out of your timeshare. Timeshare Facts is not a law firm and does not give legal advice. Our purpose is to showcase the truth about timeshare.