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Underhanded?  You Ain’t Seen Underhanded Until Now

Underhanded? You Ain’t Seen Underhanded Until Now

by April 5, 2017 1 comment

I’ve been advising prospective timeshare purchasers for a LONG time on the questions that they need to ask before jumping in.

Those questions involve such things as:

*  what is the five year history of the annual maintenance fees
*  how sold out is the development
*  how is the HOA structured

Now however, I find out that there is another question that needs to be asked.  This question is so unexpected that I admit that I was shocked.

Here it is:

“If I purchase this timeshare, am I waiving my rights to enter into a Class Action lawsuit against the developer?”

Yes, you read that right.  It seems that a certain timeshare developer includes that somewhere in the morass of 974+ pages of documents that no one (other than themselves) ever reads.

How underhanded do you have to be to know how underhanded your business practices are and prohibit owners from suing you in a Class Action lawsuit?

It’s a new low as far as I’m concerned.

Lisa Ann Schreier, The Timeshare Crusader

1 Comment so far

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  1. Michael
    #1 Michael 12 April, 2017, 15:16

    Here's the clause from my Diamond Resorts contract:

    18. ARBITRATION PROVISION
    (a) Opt-Out Right. IF PURCHASER DOES NOT WANT THIS ARBITRATION PROVISION TO APPLY, WITHIN 30 DAYS PURCHASER MUST SEND A SIGNED LETTER TO SELLER STATING THAT THE ARBITRATION PROVISION DOES NOT APPLY. OPTING OUT OF ARBITRATION WILL NOT AFFECT ANY OTHER PROVISION OF THIS AGREEMENT.

    (c) Arbitration of Claims. Unless Purchaser has exercised his or her opt-out right pursuant to Section 18(a), upon the election of Purchaser or any Company Party, any Claim between Purchaser and such Company Party shall be resolved by binding individual (and not class) arbitration. Any arbitration will be conducted in accordance with this Arbitration Provision and, to the extent consistent with this Arbitration Provision, the rules of the Administrator in effect at the time the Claim is filed. The neutral arbitrator shall be appointed within a specified period of time, which in no event shall be more than 60 days from the administrator's receipt of a written request from a Bound Party to arbitrate the Claim. To the extent this Arbitration Provision conflicts with any other agreement binding the Bound Parties, this Arbitration Provision shall govern.

    (h) Class Action Ban. NO BOUND PARTY MAY PARTICIPATE IN A CLASS ACTION IN COURT OR IN CLASS-WIDE ARBITRATION, EITHER AS A REPRESENTATIVE, CLASS MEMBER OR OTHERWISE, WITH RESPECT TO ANY CLAIM. NO BOUND PARTY MAY PARTICIPATE IN A PRIVATE ATTORNEY GENERAL PROCEEDING IN COURT OR IN ARBITRATION, WITH RESPECT TO ANY CLAIM. NO CLAIMS INVOLVING THE BOUND PARTIES MAY BE JOINED OR CONSOLIDATED WITH CLAIMS BY OR AGAINST ANY OTHER PERSON. Notwithstanding any language in this Arbitration Provision to the contrary, any dispute about the validity or effect of the above Class Action Ban shall be resolved by a court and not an arbitrator or the Administrator.

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