The industry is riddled with flaws. Some blatantly obvious and others, unnoticeable to the unsuspecting person.
Obvious flaws;
- Rogue salesmen
- Cold callers
- No exit strategies
- No value in selling the “investment”
- miss-selling
- Miss-representations
Then there are the not-so obvious flaws which lie in the structure of the industry itself.
The Trustees
The timeshare industry holds a variety of resorts located within and across a number of jurisdictions. The timeshare properties are held by a small number of security trusts including (but not limited to) Barclays International Trust, First National Trust Company, Continental Trust and Hutchinson’s Trust (“the Trustees”).
It is a commonplace for the Trustees to also sit as directors of the Resort Development Organisation (“RDO”). In addition to the Trustees, other individuals who either own or have an interest in major timeshare resorts and/or timeshare companies (for example Silverpoint, RCI and Diamond Resorts) also hold directorships in RDO. Other directors of RDO are associated with the re-sellers of timeshare products
RDO has been formed to protect the interests of those that own and, or, have a substantial financial interest in the industry. Those interests are in conflict with the consumers in the sense that the industry exists to make profit, and that profit can only exist if monies are obtained from consumers.
The Industry has, through RDO, taken over the unincorporated association which controls the committees, and which ultimately appoints contractors and resort managers who maintain and develop the resorts. The unincorporated association changed its name to TATOC approx. 14 years ago and that enterprise now mainly consists of ex directors of Diamond Resorts.
Each major player within the timeshare industry is therefore either a member of RDO or TATOC or both organisations. Each minor enterprise operating in the timeshare industry has to join one of these institutions or else they are deemed by the major players to be an illegitimate company and, by the lack of association with them they wear the untrustworthy badge and that statue is inferred to the timeshare public.
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