At TCA we like to think we have a pretty in-depth understanding of all things timeshare, but every now and then we get confused especially when resorts communicate with owners in what appears to include some things we just don’t understand.
Our latest discovery is a communication being sent by Diamond Resorts to its timeshare owners explaining the options available for the payment of their 2021 maintenance fees.
What’s on offer?
In essence, the offer is to pay the annual fee on a monthly basis interest free. This is achieved by setting up a direct debit. The trendy name given to this offer by Diamond is “Credit Option”. So all is clear so far, you can now spread your annual payments over 12 months interest free.
From here on in the confusion becomes more and more apparent. See the following extract from the communication:
“Included within the Notice was the Board of Directors’ Report, which contained information relating to the Credit Option which, if selected by you, will entitle you to redeem a portion of your points in return for a partial credit towards your 2021 fees.”
So, if we understand this statement correctly, as an owner you can give up some of your ownership points in exchange for a reduction of your annual maintenance fee.
Financially this offer saves you an actual cash outlay but of course lowers the point value when booking your next holiday. Quite what numbers of points are required to obtain this reduction is unclear.
The statement goes on to say:
“For members eligible to use the 12 months’ interest-free management fee credit facility, the Credit Option, if selected, can be used (in full or in part) towards the discharge of the initial 25% up-front payment that is required.”
Now we are really confused. Does this statement say that the maximum point exchange will only cover up to a maximum of 25%? Is it saying that an upfront payment of 25%is required in all circumstances? If this is the case does this infer that the 12 months interest free credit can only be for a maximum of 75% of the annual fee?
In our opinion it’s not surprising that a little further down the statement it says:
“The Report appears to have caused a degree of confusion, for which we apologise.”
Of this we think we all agree! The final section seems to attempt to clarify the position but in reality it appears to muddy the water further. What do you make of the following?
“To be clear, you can only apply for the interest-free credit facility (and set up the direct debit arrangement) once the 2021 management charges are showing on your account. This is normally a few days prior to receiving the application for payment for your 2021 management fees.
We envisage that the application for payment will be sent out the week commencing 16 or 23 November 2020. Until this time, you will not be able to set up your interest‑free credit facility/direct debit.
Furthermore, if you wish to set up a credit facility (of 12 months duration or less) AND you wish to use the Credit Option (which election must be made between 1 and 31 December 2020), your application for the interest-free credit facility should only be made AFTER you have elected to use the Credit Option.
We trust that this clarifies the position.”
Our opinion
Whilst there is a ripple of applause for Diamond attempts to financially assist owners with their 2021 maintenance fees, the offer still means that there is an expectation to pay the full annual fee.
Okay, it could be argued that there is a 25% discount on the table, but it is actually the owner paying for the discount not Diamond Resorts. Giving up points in exchange for this discount will obviously reduce your points purchasing power for future bookings.
One also has to factor in whether the current pandemic, which may well have affected use in 2020, will also have an impact on 2021. Many Diamond owners lost their holidays in 2020 due to lockdowns or international travel restrictions and have subsequently received no financial recompense. Now Diamond expect their 2021 fees to be paid, with no certainty of their clients being able to use their entitlements.
Once again here is yet another example of the timeshare industry attempting to shore up the holes, like the proverbial Dutch boy, by sticking their fingers in the dyke.
If you are a Diamond owner we would be delighted to hear your thoughts in relation to this so called offer. Do you think it’s fair? Do you think Diamond could have gone further? Will you be taking advantage of the offer? Are you happy to carry on with your ownership?
Email us your comments info@timeshareconsumerassociation.org.uk
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