Timeshare-owner charged with $100,000 in maintenance fees

POSTED: 01/16/12 1:01 PM

Copy of the invoice Arthur Macdonald received for his condo’s maintenance fees.

Diamond Resorts sticks to new treatment of whole-owners at Royal Palm Beach Club

St. Maarten / By Hilbert Haar – The battle between Arthur Macdonald and the Royal Palm Beach Club has reached a new low, after the Diamond Resorts Corporation, the timeshare resort’s Las Vegas-based owner sent the 74-year-old Rhode Island retiree an invoice for maintenance fees of almost $100,000. Macdonald will not pay the fee as he is still engaged in court cases against Diamond. The next step in these procedures is scheduled for next week Tuesday, but it could still take some time before there is a final ruling.

Last year in July, Royal Palm cut off Macdonald’s water and electricity, after he refused to pay $48,279.23 in maintenance fees. The Court in First Instance later ordered the company to restore the utilities. In December, Macdonald received the invoice for the 2012 maintenance fees: $46,678.32 plus another $4,927.532 for a so-called “replacement reserve.” With the outstanding from 2011, the fees now total $99,885.07 – close to a third of what the American paid for the unit in 2010.

Arthur Macdonald in his Royal Palm unit (file photo).

MacDonald’s daughter Lenna, a corporate attorney, is following the developments closely with her father. “How can this not be shocking to anyone hearing the amount,” she wrote in a personal email to this newspaper. “It makes no sense given the local market, or the costs actually associated with the individual units.”

The attorney further pointed out that the “replacement reserve” is probably a charge for renovations, furnishings and appliances in the units. “The problem is that we (my parents and I) have personally renovated and furnished the unit to the cost of some $89,000 in direct expenses, before adding in labor, including replacing exterior windows and redoing the patios; that should have been addressed by Diamond. So Diamond is charging us to renovate and furnish our unit, after we just finished doing it ourselves.”

Macdonald is a so-called whole-owner. In April of 2010, he bought the right to his apartment at the Royal Palm for more than $300,000. The contract put the maintenance fees at $500 per month, and Macdonald has been faithfully paying his dues, which also include metered services (for water and electricity).

In 2011 Diamond Resorts decided to treat whole-owners (people like Macdonald who bought in fact 52 timeshare weeks) the same way it treats interval-owners (people who bought the right to stay at the Royal Palm for one or more weeks per year). The already hefty maintenance fee of around $1,300 per interval was in Macdonald’s case unilaterally multiplied by 52. Instead of a $6,000 charge for maintenance fees, he was suddenly saddled with an impossible charge of close to $50,000.

Attorneys for Diamond Resorts argued last year in court that Royal Palm was struggling with a $10 million deficit and that it threatens to go bankrupt if it is not allowed to charge these maintenance fees.

But a press release the company issued on November 15 of last year tells a slightly different story. “We are pleased with the year over year improvement in our operating performance and continue to remain focused on the growth of our core management and member services business and our sales and marketing platform,” president and chief financial officer David F. Palmer stated in a press release about the parent company’s third quarter results.

In last year’s third quarter, Diamond Resorts saw its EBITDA (earnings before interest, taxes, depreciation, and amortization) increase by 14.4 percent to $29.7 million. Vacation interest sales increased 6.6 percent to $60.2 million.

This increase, Palmer wrote, “was primarily due to a higher average sale price per transaction partly offset by a decline in the number of vacation interest transactions and closing percentage.”

So while less people are buying timeshare, Diamond Resorts is still generating more money in this market because it charges higher prices.

How did all this affect the Royal Palm Beach Club? Diamond Resorts projects an operational surplus of a bit more than $400,000 for the 23 whole-owner units in the resort. This is based on almost $1.2 million revenue from maintenance fees against almost $790,000 in payroll and operating expenses. But because the budget contains a provision of $1 million for “bad debts” plus almost half a million for insurances, management fees, depreciation and reserve capital expenses, the resort books on paper a negative result of $1,053,836.

The attorneys who won the case for Macdonald last year, mrs. Jelmer Snow and Camiel Koster, labeled at the time Diamond’s action as “a typical case of taking the law into one’s own hand. Who still wants to buy timeshare in St. Maarten after this? This is unlawful.”

Snow said last year that Diamond “pretends that Royal Palm is on the brink of bankruptcy. I have the feeling that they simply need money in Las Vegas. They throw up some figures without substantiating them. This is not good for St. Maarten, not good for the timeshare industry and not good for my client.”

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Comments (17)

 

  1. Snow says:

    Haha..the guy really wants us to believe that the $ 500,- per month covers his water bill, electricity bill (24hr airco), twice a day cleaning, pool service, maintenance, beach service with chairs, insurances, amenities, clean towels and so on and so forth? You gotta be kidding. Old Macdonald had a farm..Hihahihaho. Fairytales Macdonald, Fairytales.

  2. Pamela Jenkins says:

    Sue.Ellingson wrote on January 17, 2012 05:37 PM:
    My fellow deeded owners at the Point at Poipu have said it all for me too. Mr. Cloobeck, I have owned a 2-bedroom oceanfront week since 2000 and I’m done – I will take you up on that refund offer! Please contact me.

    Report abuse
    jdenchfield wrote on January 17, 2012 05:21 PM:
    Dear Mr Cloobeck, I believe it is apparent by the comments here that it is more than 10 people who are unhappy with the way your company operates. I would be more than happy to take you up on the offer of giving me my money back on what you have described previously as a fungible asset. At this point that just couldn’t be farther from the truth. The potential water intrustion issue at the Point at Poipu needs to have a bit more transparency around it. Until such time it does it seems like owners are just pouring money into a rat hole with no end in sight. Please contact me so way can arrange payment on your offer in the story above.

    Report abuse
    Anne.Macdonald wrote on January 17, 2012 03:23 PM:
    We own 4 weeks of a timeshare through Diamond International at the Point of Poipu. We were not informed in a timely manner that we would be assessed a $24,000 water assessment damage fee. Not only that, this ‘fee’ is ridiculous. Our maintenance fees have almost doubled since we bought our weeks. When we first bought 2 weeks, in 2001, we were paying $735 per week owned, now it is $1,350 per week. Our $5,400 ‘investment’ has now doubled the cost again. In October of 2011, we booked a few weeks for 2012. At that point, future maintenance fees are due. We had our credit card on file, what a mistake that was! When we discovered an error on our credit card bill of not one, but 2 charges for $6,200 we called Diamond Resorts. They indicated an error was made and we would get a refund in the next billing cycle. It never happened. The company never re-contacted us, but when I called again, they said there was a note in our file on December 3 that there was no error. Then we received an email from Diamond a few weeks before Christmas about the horrible assessment being forced on all the owners. We can’t afford to do this once, but especially 4 years in a row, as they want!!!! We could have stayed in the Ritz for the charges we are seeing. This was an investment for our retirement but we will not be able to support it. Since Mr. Cloobeck said he would happily give back the money, we want it back. Our $80,000 ‘investment’ is worth .99 cents a week, yes, less than $4.00 on ebay. No one wants it. The company threatens that if people don’t pay, they will go to collections. We are not a happy investor and can’t believe a legitimate company would expect their owners to put $66 million dollars into this property. Please have Mr. Cloobeck contact me as soon as possible for a refund.

    Report abuse
    Kirk1024 wrote on January 17, 2012 03:09 PM:
    This was a very enlightening article and a very public statement made by Mr. Clooback to refund my money, I’d gladly like to take you up on your offer. We have been deeded owners at the Poi Pu Point on the island of Kawai since 1996 and are very disappointed in the increasing maintenance fees and most recently the water intrusion charges. We love the property and enjoy visiting it on vacation. I am being asked to pay some ridiculously exorbitant fees to keep my timeshare weeks in tact. The water intrusion issue is beyond appalling and quite mysterious in its nature considering that after many attempts, DRI is STILL not willing to fully disclose all requested information regarding insurance claims and costs to repair. Since 1995 the yearly maintenance fees have skyrocketed from $300 to over $1200. This year that means with the water intrusion assessments $2,200 for the even year and $1,000 for the odd year for a total of over $3,200 year 2012. As noted above per your very public statement made to refund my money, I’d gladly like to take you up on your offer. When can I expect to hear from you concerning the resolution of the refund and transfer of the deeds?

    Report abuse
    Roy.Paulson wrote on January 17, 2012 02:45 PM:
    We are deeded owners of 2 weeks at the Point at Poipu since 2005. The maintenance fees have been increased substantially every year since then. We have received the invoice without any reasonable notice for the water intrusion fees, which are astronomical, on top of the already high maintainence fees. We along with the “9” other owners Mr. Cloobeck referred to would like to request he purchase back our deeds, as he indicated he would. Please forward a certified check at your earliest convenience. Thanks

    Report abuse
    CMB wrote on January 17, 2012 01:42 PM:
    We are Diamond owners at Kaanapali Beach Club and are definately very unhappy timeshare owners. I wish we could just give our points away, but nobody will take them! I’m not kidding! We have issues with Diamond – not the resort itself…it’s a lovely place. If Mr. Cloobeck would “be happy to given them back their money” I’d be thrilled! Heck, we don’t even need any money back – we’re still trying to feed our family of 5 ramen noodles while trying to pay off our points purchase (which don’t even give us a week every 2 years in any room). I honestly would love to walk away from the whole thing today! Mr Cloobeck is welcome to contact me since customer service won’t.

    Report abuse
    Ronio wrote on January 17, 2012 01:09 PM:
    I and my family have owned a week at Poipu for several years. We love the location and have generally enjoyed our time there. It’s a tradition for us so I am not willing to give this deed back to Diamond. I’m a little perplexed by the refund offer because I didn’t purchase this deed from Diamond resorts in the first place. What I am very unhappy with is the exorbitant increase in fees and DRI ‘Club’ expenses that have occurred since Diamond took over as the management company. I also own with Worldmark and Shell and I can tell you without qualification that what I pay for the privilege of very nice red week condo timeshare use in many lovely locations like Whistler Canada and Kauai with these companies is a fraction of what Diamond extorts from me. Example: I pay under $600 a year for a full red week 11000 point ownership with Worldmark which includes ‘Club’ dues, maintenance and great service as well as a fund to fix such problems as the water intrusion at Poipu. With Diamond I have now to pay $1400 a year for maintenance, $245 a year in Diamond Club dues (I had to buy into this DRI Club to use my week after Diamond took over at an expense of $3000). Now they want another $6000 for a water intrusion problem. Where was their own due diligence and responsibility for this when they took over management? What is the insurance situation and why do I have to pay for their oversight? I had no control over any of this. The Poipu board is stacked with DRI reps and there is no access to lists of owners so that we could mount a meaningful challenge to their control. I think there are a lot more than 10 people who are unhappy with this unreasonable situation. Mr. Cloobeck should go undercover with owners if he wants to get real about this situation. I don’t think he has a clue, well indicated by his dismissive attitude about our concerns.

    Report abuse
    Peter .Boyd wrote on January 17, 2012 12:06 PM:
    Owners since 2003…Maintenance fees have risen substantially since we purchased… We never did recieve an invoice for the moisture intrusion repair and found it online along with the threats if we did not pay. We will accept a refund of everything we have paid in exchange for our two deeds…Sure looks like there are more than “10” unhappy people. Please send a certified chack and we will send the deeds after the check clears the bank.

    Report abuse
    Lou .Wiegand wrote on January 17, 2012 11:14 AM:
    We have been owners at the Point of Popui since 1997 and are very disappointed in the increasing maintenance fees and most recently the water intrusion charges. We love the property and think that any improvements to the facilities should be bear by the owner. If deeded and points purchasers are to share in this, it should be in the purchase agreement. We have mixed feeling about selling back our deeded week however feel taken advantage of so at this time we will take Mr. Clooback up on his offer. When can we expect to see our check?

    Report abuse
    dri.abused wrote on January 16, 2012 08:33 PM:
    Well If Cloobeck is a man of integrity I think I have a line on those unhappy customers coming to ask for their money back. What a wonderful man you are Mr. Cloobeck I too would like to take you up on the offer.

    Report abuse
    Peter.Micakaj wrote on January 16, 2012 07:31 PM:
    Dear Mr. Cloobeck, After reading a this very enlightening article by Howard Stutz, and a very public statement made to refund my money, I’d gladly like to take you up on your offer. I have been a deeded owner of 1 week since 1998 at the Point in Poipu, Kauai. I fell in love with the property and the idea of having a little piece of heaven to look forward to each year. You see, unlike you, I am not a millionaire. I have worked nearly every single day of my life to be able to afford such a luxury. Thanks to some very unethical and downright disgusting acts of DRI and it’s representatives, I am being asked to pay some ridiculously exorbitant fees to keep my timeshare week in tact. The water intrusion issue is beyond appalling and quite mysterious in its nature considering that after many attempts, DRI is STILL not willing to fully disclose all requested information regarding insurance claims and costs to repair. Since 1995 the fees have skyrocketed from a it over $400 to over $1800. This year– $3700. It obscene and wrong. Additionally, to make a correction to your statement that “complaints are coming from 10 people out of over 650,000” is wildly incorrect. Unless of course, your employees in Kauai are misleading you as well. I’m very confident that you are/will be receiving many more emails of this nature from owners at Poipu. I’d like to thank you in advance for you attention and offer to refund me my money. Please let me know where and when I may collect my hard earned money. Lets hope your humbling experience being one of us lowly people inspires you to keep your word….which is in print…..and directly quoted. P.S. I count more than 10 complaints Thanks

    Report abuse
    Michael.Paris wrote on January 16, 2012 05:48 PM:
    We are very unhappy regarding the water intrusion fees. Those added to maintenance fees comes out to over $3000 this year. We have not yet paid the extra fee. Plus we were misled and purchased points at a resort at Lake Tahoe. We have been deeded owners at The Point in Kauai since 1995. Our fees just keep going way up. We contacted DRI regarding getting a refund on the points at Lake Tahoe and we were told too BAD. We have made numerous calls to DRI regarding the water intrusion fees but no one wants to help. We are very unhappy with DRI but love visiting Kauai. Plus the Board at Poipu is made-up of DRI representatives or relatives and not the owners. Since the addition of water intrusion fees no one wants to purchase deeds.

    Report abuse
    darren.thorpe wrote on January 16, 2012 05:40 PM:
    Now I know where the huge increase in homeowners fees are going. There going to feed his philanthropy. I wonder if the money came out of his personal account or our homeowner association dues. I would indeed like to be one of the “10” to receive “my money back”. Lets just see if he is a man of his word, or is he just blowing smoke up everybody while waiting for the puff piece of a show to come out to stroke his ego.

    Report abuse
    ham4383 wrote on January 16, 2012 04:42 PM:
    I too, am ready to take up Mr. Cloobeck’s offer to refund our money for our timeshare at the Point at Poipu. I agree with all of the comments posted here. He seems to NOT be interested in the timeshare owner’s opinions. What he did for the employees that he worked with was commendable. However, what he is doing to the people that are actually paying for all of this is outright outrageous. Please send me the paperwork to release my obligation to the deeded property. It is really shameful, because we have loved our visits to the Point.

    Report abuse
    r-rp wrote on January 16, 2012 04:17 PM:
    I to own 3 deeded weeks at the point at poipu and i will take my refund asap! i will gladley give them my 3 deeds.I have all the same problems listed by the other owners comments below from poipu owners! I have called numerus times to Diamond Resorts headquarters in Las Vegas for help with absolutly no help. I have had to cancel my vacation in 2012 because I cannot afford the outrages assessment fees I will no dought lose my timeshares to forcloser which I told them but they said they didnt care and if it went that far I would have to pay the fees even if they take the property back!

    Report abuse
    Bambina369 wrote on January 16, 2012 04:11 PM:
    In fairness, I have used the property (The Point at Poipu) many times and enjoyed it in the past so I don’t need my money back, but at this point, I would just be happy with DRI taking back my deed without having to spend the additional $10,000 it would take to try to sell it to someone. I watched in disbelief as Steve Cloobeck talked about the “Meaning of Yes.” I have NEVER received that type of service from the front desk at the Point at Poipu in Kauai, and I even wrote a lengthy letter to the company about my negative experience with absolutely no response. Recently, we find out that the water intrusion special assessment is going to triple our maintenance fees and when I called to ask what our options were, they said, “You don’t really have any options, you just need to pay it or eventually they can foreclose on the property and it will affect your credit.” I understand that we might be a small minority of his vast empire, so hopefully he will keep his word and make things right.

    Report abuse
    Sharon.Herbert wrote on January 16, 2012 03:35 PM:
    Please ask Mr. Cloobeck to release the names and contact information of the owners of Poipu Point. The DRI Board has refused to release this list even though Hawaii law requires it. The owners must unite to stop the DRI board from spending $64 million on repairs and then assessing the cost of the project on the owners. Most owners are senior citizens who should not be forced with this assessment without their consent. Thank you.

    Report abuse
    bebod wrote on January 16, 2012 02:52 PM:
    My wife and I own 3 deeded weeks at the Point at Poipu. Please tell Mr. Cloobeck we are one of the ten and will definitely take him up on his offer to refund our money for the two weeks we purchased in 2001 and 2004, along with maintenance fees we paid to reserve our weeks for next month, in exchange for our deeds. (We can’t expect a refund for the week we bought on the resale market in Dec, 2010, although if Mr. Cloobeck, DRI and the DRI-controled boards had kept owners informed of the extent of the water intrusion problem (which they knew about for several years) in a timely manner we never would have made that purchase.) Both owners’ association boards are controlled by DRI employees and relatives of employees. DRI refuses to supply a list of owners and contact information for campaign purposes to non-DRI-controlled board candidates as required by HI law. Is it any wonder maintenance fees have skyrocketed and no other management company has even been considered? My sister-in-law and her husband have canceled their vacation this year because after paying the maintenance fee and water intrusion bill they can’t afford the plane tickets to get there!

    Report abuse
    Patricia.McKinney wrote on January 16, 2012 02:02 PM:
    I’m a deeded owner at Premiere Vacation Collection in Sedona Arizona.Diamond Resorts has only acquired our property and the fees are already more then the vacation experience is worth.I tried to sell my week but are unable to give it away do to the bad press Diamond is receiving for it’s questionable business practices in other collections.I’m being held hostage and I would like Mr.Cloobeck to take back this property.

    Report abuse
    Don.Cunningham wrote on January 16, 2012 01:59 PM:
    Please pass on to Mr. Cloobeck that I would be delighted to take him up on his offer to return my timeshare week to him and have him return my money. We own several timeshares and have never had an experience as we have had with Diamond. Maintenance fess rising astronomically, and then this massive water intrusion damage issue. We had reported to Diamond for several years about water puddles forming on the floor of the units around the AC units, and never saw any action to prevent long-term problems. The most disconcerting issue to me is Diamond’s persistent refusal to release information regarding the contract, scope of work, how the contractor was selected, or even releasing information as required in their own bylaws. If they have nothing to hide, why hide all of this?

    Report abuse
    tch wrote on January 16, 2012 01:55 PM:
    You may add my wife and I to the list of Diamond Resort owners who are requesting a refund. It is not an issue with our maintainence company, but with misleading sales practices and lack of total disclosure from DRI sales representatives. He owned at the Point before DRI and feel since DRI took over the fees have gone up but the contintion of the property has gone down, lots of money spent on towels and sheets not much on bulidings. We will be asking for a refund. We would suggest you look into the number of dissatified ownersl as there are alot more then a handful.

    Report abuse
    Robert.Brown wrote on January 16, 2012 12:44 PM:
    You can tell Mr. Cloobeck that I would like to get all my money back and he can have my unit. The water intrusion issue is shameful. That issue is a design and/or a construction issue that should fall on the shoulders of the developer. If he wants to go after the design/construction team then he should do so. He should not expect to have the time share owners foot this cost. If you do the math as I did, they are asking over $300K to repair each unit. I would rather not be involved with this type of company.

    Report abuse
    ppeck wrote on January 16, 2012 12:35 PM:
    I can’t wait to take Mr. Cloobeck up on his offer – Mr. Cloobeck, I have just read your comments in today’s Las Vegas Review and I cannot tell you how happy I am that I can get my money back from you for my timeshares at the Point at Poipu. You cannot imagine the agony and stress we have gone through the last 60 days trying to figure out how we were going to pay the maintenance fees and the water intrusion assessment. We had all but decided that a ruined credit report/jail was better than being held hostage by Diamond Resorts International. We paid approximately $95,000.00 for four (4) deeded weeks plus points in the “Club”. You can have it all back for the price of the special water intrusion assessment. Please forward the necessary papers as soon as possible.

    Report abuse
    lvbigbear wrote on January 16, 2012 11:52 AM:
    Timeshares are a scam! What a shocker that there are dissatisfied owners. Do the basic math… $20K for a “lifetime of vacations”… plus maintenance fees of a couple hundred bucks a year… You can stay in a decent 3-4 star hotel in a different locale each year for the same price (or less)… That doesn’t even factor in the interest rates that can be as high as credit cards. Caveat emptor!

    Report abuse
    don.reiser wrote on January 16, 2012 11:19 AM:
    My wife and I are also owners at Poipu and would love to get our money back after what they just pulled with their maintence fees.

    Report abuse
    trevorryan wrote on January 16, 2012 10:28 AM:
    My husband and I would like out money back that we just recently payed for the water intrusion fee. We have used all that we have just to pay the minimum fee for this year for the first week that we purchased 10 years ago and the second week that we were “taken” for this last year with no disclosure regarding a $5000 fee. We offered to give back the two weeks upon receiving the invoice on October 6, 2011, but were then told that the last date to turn over the weeks to Diamond Resorts was in September 2011. Hmmmmm… we did not even hace the invoice in hand untill October 6, 2011, how would we have know that turning the weeks back were even an option??? Diamond Resorts is a horrible horrible lying company that threatens people with forclosing on them and forcing them to come up with money that in this economy is almost impossible. We would like our money back!!!!! I can stay anywhere on that Island, much nicer places, for what I paid this year in fees that the company will not even explain in detail. Where are the bids, where were our options??? Why is the majority of the board of directors at the resort Diamond Resort employees or related to employees? Sign me up for my money back Please!!!!

    Report abuse
    trevorryan wrote on January 16, 2012 10:26 AM:
    My husband and I would like out money back that we just recently payed for the water intrusion fee. We have used all that we have just to pay the minimum fee for this year for the first week that we purchased 10 years ago and the second week that we were “taken” for this last year with no disclosure regarding a $5000 fee. We offered to give back the two weeks upon receiving the invoice on October 6, 2011, but were then told that the last date to turn over the weeks to Diamond Resorts was in September 2011. Hmmmmm… we did not even hace the invoice in hand untill October 6, 2011, how would we have know that turning the weeks back were even an option??? Diamond Resorts is a horrible horrible lying company that threatens people with forclosing on them and forcing them to come up with money that in this economy is almost impossible. We would like our money back!!!!! I can stay anywhere on that Island, much nicer places, for what I paid this year in fees that the company will not even explain in detail. Where are the bids, where were our options??? Why is the majority of the board of directors at the resort Diamond Resprt employees or related to employees? Sign me up for my mondy back Please!!!!

    Report abuse
    DripSupporter wrote on January 16, 2012 10:05 AM:
    My husband and I would like our money back as well! This has been a nightmare from the beginning.

    Report abuse
    Linda.Vidas wrote on January 16, 2012 09:27 AM:
    I am an owner at Point at Poipu and I have called and talked to people on the phone telling them that we can not afford the water intrusion fee. We have not paid it yet and would be willing to give back out deed to the company to get out of paying it. My husband a type 1 diabetic, went through open heart surgery (a quad-ruple bypass), two years ago and has not been working much since then. I am retired and this amount of money $2,000.00 which we only knew about in mid November, has put a financial strain on both of us. We are being told that it will be turned over to collections if not paid and we are not even allowed to make payments of $100.00 or $200.00 per month. They will NOT work with us. They seem very heartless. We are seniors and have not put this type of money in our budget. This is not a vacation but a nightmare!

    Report abuse
    Leslie.Axdahl wrote on January 16, 2012 09:00 AM:
    We are owners at the Point at Poipu in Kauai. We are extremely unhappy with Diamond Resorts International management and will definitely be asking for our money back. We absolutely cannot afford the increasing rates.

    Report abuse
    hmmmm67 wrote on January 16, 2012 07:18 AM:
    I, also, am an owner at the Point at Poipu in Kauai and am very unhappy with the way the resort is being managed by Diamond Resorts International. I will be requesting my money back. Should I let you know if I receive a check?

    Report abuse
    Bryant.Loving wrote on January 16, 2012 07:06 AM:
    Dear Howard I read your Las Vegas review journal – undercover boss – Mr Stephen Cloobeck with interest. In it Mr Cloobeck mentions that not having his blackberry or phone left him feeling out of control. Surely, that should have read ‘out of touch’ too. He also said that there have been comments on the internet from about 10 members of DRI from a total of approx 650,000 about how unhappy they are with DRI and the product. And added that he would give them their money back. Well I was unfortunate enough to buy into DRI as a deeded owner in 2002 and along with approximately 1200 other people who belong to a website called COPP. There are 1800 people based in Europe, that belong to group named, DRIP. Well we ALL would love our money back or at the very least the opportunity to leave DRI without being gagged and paying membership fees for the next 50yrs. So Mr Cloobeck, why don’t you put your money where your mouth is?

    Report abuse
    David.Lockhart wrote on January 16, 2012 06:00 AM:
    I am another owner at The Point at Poipu in Kauai and would love to be able to get my money back. Fees go nowhere but up every year. What used to be affordable no longer is. I want my money back Steve.

    Report abuse
    VICTIM DRI wrote on January 16, 2012 03:39 AM:
    There are NOT 1o unhappy owners there are THOUSANDS on St Maarten in Great Britain as well as Arizona. Mr CLOOBECK is fooling CBS or trying to fool himself… The matter is serious and there are court cases against him here on St Maarten as well as Great Britain.. perhaps he can explain the huge political donations too???as well a dresses sent to Haiti.

    Report abuse
    nlcolon wrote on January 15, 2012 10:01 PM:
    I am one of the 10- I have contacted Mr. Cloobeck to get my money back as well. I look forward to finding out if he is true to his word.

    Report abuse
    Michael.Bock wrote on January 15, 2012 09:52 PM:
    There are >1000 owners registerd at concerned owners at point at poipu that have serious issues with DRI. this is one resort not 650k. look up how DRI was successfully taken to court in Europe as well. Steven, I will be calling tomorrow to get my money back and will report to Howard Stutz on the outcome.

    Report abuse
    StephenLV wrote on January 14, 2012 03:53 PM:
    I meet him years ago at Polo Towers, my GF worked for him. Nice guy and good boss. I wish him Luck

    Report abuse
    UTE wrote on January 14, 2012 01:05 PM:
    Looking forward to seeing the show. Without exception, every CEO who’s done it says it changed the way they viewed their workers.

    Report abuse
    Mr. Vegas wrote on January 14, 2012 11:46 AM:
    Oh boo hoo. The “CEO’s” couldn’t last a month doing a normal job. I watched this dumb show once and that’s it.

    Report abuse
    Robert.Weston wrote on January 14, 2012 09:13 AM:
    Good story and seems like other corporate heads should do the same thing. He seems like a great person and hope he continues his success.

  3. Pamela Jenkins says:

    Here is what Mr STEPHEN CLOOBECK IS DOING NOW.. A NEW LEAR JET… pass this on..
    FAA REGISTRY
    N-Number Inquiry Results
    N702DR is Assigned
    Data Updated each Federal Working Day at Midnight

    Aircraft Description
    Serial Number 9184 Type Registration Corporation
    Manufacturer Name BOMBARDIER INC Certificate Issue Date 01/06/2012
    Model BD-700-1A10 Expiration Date 01/31/2015
    Type Aircraft Fixed Wing Multi-Engine Status Valid
    Pending Number Change None Type Engine Turbo-fan
    Date Change Authorized None Dealer No
    MFR Year None Mode S Code 52256127
    Fractional Owner NO
    Registered Owner
    Name N702DR LLC
    Street C/O DIAMOND RESORT INTL
    10600 W CHARLESTON BLVD
    City LAS VEGAS State NEVADA
    County CLARK Zip Code 89135-1260
    Country UNITED STATES
    Airworthiness
    Engine Manufacturer Unknown Classification Unknown
    Engine Model Unknown Category None
    A/W Date None

    The information contained in this record should be the most current Airworthiness information available in the historical aircraft record. However, this data alone does not provide the basis for a determination regarding the airworthiness of an aircraft or the current aircraft configuration. For specific information, you may request a copy of the aircraft record at http://aircraft.faa.gov/e.gov/ND/airrecordsND.asp
    Other Owner Names
    None
    Temporary Certificates
    Certificate Number T120122 Issue Date 01/06/2012 Expiration Date 02/05/2012
    Fuel Modifications
    None
    Data Updated each Federal Working Day at Midnight

  4. Pamela Jenkins says:

    Quote from the DRIP site in Great Britain:

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  5. Kent Heintz says:

    Mr. Cloobeck,
    I wrote in response to your offer to reimburse unhappy owners of the Diamond Resorts time shares in Poipu. I am still awaiting your paperwork for the deedd transfer. Send asap. Thank you

    Kent & Joyce Heintz

  6. Timeshares can be a terrific purchase for some families, as they also can be a giant rip off for others. 50 years ago, also known as Holiday Home Sharing or timeshare travel, timeshares were created with the idea of offering fully furnished accommodations for a lower price than a full-time ownership. Nowadays, timeshares have become a very popular vacation option, yet lots of people do not completely understand how timeshares operate.

  7. Amanda Blue says:

    Timeshare industry is known for being one of the most fraudulent industries running. Every year, tens of thousands of complaints are filed against timeshare developers, most of them because of the deceitful sales tactics they use to sell their units.

  8. Peggy Bryant says:

    Time shares can become a huge financial problem for those who have bought one, and don’t know what to do with it. Should they sell it, donate it, rent it or cancel the contract? The truth is that the cancellation of the contract has always been the best and most viable solution to get out of a timeshare legally.

  9. Peggy Bryant says:

    Timeshares are an expensive purchase, and a complicated product, therefore, they cannot be entered into lightly. The average price of a timeshare is $20,000 usd, that without considering the yearly fees. Be sure that you will be able to afford the unit. Be also sure that the resort (and the location) where you are buying has a good reputation and that it entirely pleases you.

  10. Beth Green says:

    The timeshare industry keeps getting a bad reputation, and yet there are many people who still pay thousands of dollars for them. In fact, time shares are one of the top sellers in the hotel industry; however, that doesn’t make them a good purchase.

  11. Timeshares are not the financial investments consumers thought with it was. Timeshare resorts Such as Wyndham, Marriot, Disney, Royal Holiday or Mayan Palace are very successful at selling their timeshare products, timeshare consumers haven´t been as lucky.

    With the economy as it is today, consumers owning a timeshare out of their city are struggling to pay not just maintenance fees climbing yearly up to $800 yearly, they also have to pay transportation to their timeshare destination.

  12. Timeshares can be a terrific purchase for some families, as they also can be a giant rip off for others. 50 years ago, also known as Holiday Home Sharing or timeshare travel timeshares were created with the idea of offering fully furnished accommodations for a lower price than a full-time ownership.

  13. Tomas Gerardo says:

    I can only say from the horror stories I hear almost every month: Buyer (of Timeshares) Beware.

    Unless you can get a cap on Maint Fees (pegged to inflation) you are at the mercy of the operator cranking up the fee to almost anything, then you sell out and you are left with prior vacations costing more than paying for the hotel. Not to mention all the stress and aggravation that comes with it.

    I am not tooting my own horn but when analyzing the timeshare structure years ago it was obvious that the buyer is the loser and the owner/operators make out like bandits.

    Please do your homework and good luck.

  14. cletus c clemons says:

    I hope this guy wins big, and they cook these sleaze masters @$$e$. “You go boy” bust-m-b@ll’$. This is so typical of this kind of scum. Get you snared and go for the kill. Sounds like a really fine example of an organization that is really bad at managing revenue, so they decide to break it off in someone else!!!!!LoL these people are out of order.

  15. Mia Thompson says:

    There are plenty of reasons why people are looking to getting out of timeshare today; some might want to be free of maintenance fees, mortgage payments or, plain and simple, can´t afford another payment.

  16. Wow, that’s what I was seeking for, what a data!
    present here at this weblog, thanks admin of this website.

  17. jon says:

    If you are unhappy with your timeshare we can help. sena an email to gcconsulting01@gmail.com . no cost free info !!