Just a line to draw your attention to a full page advert in today’s Daily Mirror, Page 55, placed on behalf of www. SellMyTimeshare.tv., detailing the postponement of the EU new ‘legislation’ to allow owners to quit their liability – perpetuity contracts. The editorial mentions RDO raising concerns about the effect of alterations on sustainability of resorts, loss of jobs and increase in remaining owner’s maintenance fees.
During the previous EU review which led to the Timeshare Directive evidence was taken from OTE (now RDO) concerning their members’ worries but the EU Committee tended to accept the evidence of Sandy on behalf of the TCA.
Improvements were made to the industry but as with any other restrictions to the scammers they have once again managed to invent ways of relieving owners and punters of their monies. As previously mentioned I had dealings with OTE/RDO concerning Resort Properties selling Timeshares as investments and I assisted the help of Arlene McArthy MEP to obtain a reply.
OTE denied receiving more than a couple of complaints about Resort Properties yet there were hundreds of conned customers on the Daily Mirror blog of Bob Trotta’s exposure in the Penman Investigates editorial and Trotta of course sat on the Executive Committee of OTE. Penman has penned several exposures of Trotta, including Resort Properties, and I am confident he would be interested in having another go if he is made aware of the present dilemma of the Palm Beach and other Tenerife Resorts Excel owners. After OTE changed to RDO the rule concerning Investments went missing from their rules and objectives.
Have you considered approaching the EU regarding the new regulations and expose these ‘ombudsmen’, RDO and TATOC, for what they are – a carbon copy of the Press Complaints situation exposed by Levison as other than a genuine way of investigating their relative business on behalf of complainants?.
All resorts have resale teams and would be able to sell weeks at reasonable prices to maintain acceptable maintenance levels if the perpetuity clause were left out of purchase contracts – no more mis-selling – the exposure of perpetuity clauses and what they actually mean in contracts must have had an adverse effect on current sales and the knock on value of timeshare apartments. Indeed the values have been in free fall. Who would want a property which was worth nothing but relatives are expected to pay yearly amounts forever or face civil legal proceedings?
Years ago when Palm Beach was actually run by genuine owners they had a system in place where if you didn’t pay your maintenance your apartment/weeks were confiscated and sold, to recover the outstanding amounts, to recommended owner’s friends etc or otherwise rented out at maintenance fee prices until sold. The system worked well and had over a 90% success rate but then Trotta got involved and those apartments were sold on the cheap to an ex Resort Properties Director which had an agreement to excuse one year’s maintenance payment on those apartments, a loss of £200,000 to the Palm Beach Club.
I have not to date received any reply to my letter sent to the Dona Lola Committee/MRL, a copy of which I previously forward to you.
With regard to the Palm Beach question has anyone considered the future of the remaining non Silverpoint owners. For example if say Silverpoint now ‘own’ 200 out of 318 apartments for which they should be paying on average £300 per week (£15000+ a year x 200 = £3000000) but sell them as 200 individual freehold apartments, they will only charge a very reduced ‘service’ charge to their new owner/investors – nowhere near £15000 a year. As the Palm Beach have a long term contract with Excel/Silverpoint a reorganised contract will have to be negotiated to reduce the amount paid for their services but no evidence of any such arrangements have been announced. All the evidence suggests an astronomical rise in the remaining owner’s maintenance fees which will probably lead to more surrenders of deeds and the complete demise of the Club.
I suspect that if Silverpoint are successful in maintaining the new Palm Beach Constitution and that the Palm Beach Club Owners 2014 fail in their effort to stop them, Silverpoint will sell the apartments under their different company names and then do a runner with the proceeds. This is another aspect which should perhaps be considered by Stephen and the legal team.
Best regards
John
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk