It appears the CEO of Diamond Resorts, Stephen Cloobeck is receiving some unexpected and surely unwanted attention in the aftermath of appearing on the CBS primetime season opener of “Undercover Boss” on Sunday night.
More than 100 individuals sent emails to Cloobeck on Monday asking for refunds and other financial remedies on their timeshare investment. The majority of those concerns focused on The Diamond Resort, Point at Poipu timeshare resort on the Hawaiian island of Kaua i.
The owners at that resort got a surprise at the end of last year when they received the annual bill for their HOA dues which average $1,400. In addition to the yearly maintenance fees, a special assessment in excess of over $5,500 per interval to repair water intrusion damage to the buildings was announced to the 13,000 deeded timeshare owners. They were told they had 90 days to pay it or DRI would aggressively commence collections, put their accounts into a delinquent status, and ruin their credit.
As a result of the special assessment a group of Point at Poipu owners created a Facebook page called “Point at Poipu Angry Owners” (http://www.facebook.com/pointatpoipu) as a forum for unhappy owners to voice their concerns and seek resolution to those concerns.
One owner contacted Cloobeck’s office late last year in an attempt to work something out and offered to return his deed weeks to Diamond Resorts with no cost to the company. The company replied they were not taking any weeks back at that time.
Diamond Resorts then created its own website to reach out to its owners. According to the website, the company will pay the largest part of the assessment, $10 million or roughly 15 percent of the total cost of the repairs, which it is expected to take 5 years to complete.
According to Diamond Resorts they have communicated with almost sixty percent of the Point at Poipu owners and almost thirty-five percent of the members who are owners of timeshares in their Hawaii Collection. The company reports that it has collected more than 63 percent of the first year’s assessments.
One owner commented on a recent article posted by Advantage Vacation that they had purchased their timeshare at Point at Poipu in 1995 and around 2006, when DRI took over management of the timeshare, the fees increased about 20% per year. Another owner commented that “during the recent recession my family has not been as successful and our income has decreased significantly. For this reason the changes that have occurred over the last five years at the Point at Poipu with dramatic raises in annual fees and the recent assessment have created significant stress and financial hardship in our family and so I would like to sell back our interest in the property.”
Cloobeck’s comments to the Las Vegas Review-Journal last week in which he said he would return money to unhappy time share owners may be coming back to haunt him.
Stay tuned! You may be assured Advantage Vacation will continue to monitor and report updates on this very important matter affecting all timeshare owners at the Point at Poipu.
Advantage Vacation is a member of the American Resort Development Association (ARDA) and offers the best buys on the timeshare re sales market today. We never charge an upfront fee for clients who want to sell a timeshare and only receive a commission, paid from escrow, when the transaction is closed.
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