Michelle Jabeur is a former Diamond Resorts/Hilton Grand Vacations salesperson. She worked at Diamond’s Virginia Beach sales centre prior to filing a lawsuit against Diamond Resorts in 2022, Case 1:22-cv-00340-MSN-IDD. Michelle said Diamond offered her a settlement, but it would have required her to sign a non-disclosure agreement. She refused. She then was rehired by Hilton Grand Vacations, but quit after two weeks of training, disturbed by practices she said she witnessed. She thought she had been hired to sell a Hilton product. When questioning why all the paperwork said Diamond Resorts, Michelle says she was told, “You work for Diamond, get used to it.”
In her lawsuit complaint, Michelle described deceptive tactics employed by one of Virginia’s In-house Director of Sales. The person Michelle named has been mentioned by five Diamond members who reached out to us, including the Thompson family in Pennsylvania. They have been financially devastated as a result of their decision to purchase a Diamond timeshare. They describe their experience below.
The person Michelle spoke with at the Attorney General of Virginia’s office informed Michelle that their office has received THOUSANDS of timeshare complaints. They said she was a “treasure chest” yet, to our knowledge, no action has been taken against any timeshare company.
Our Diamond/Hilton Grand Vacations Experience
By the Thompsons, ages 68 and 62
If you buy a timeshare, YOU NEED TO RECORD THE SALES SESSION in states where it is legal to do so. If you don’t record, the recorded closing (contract signing session), can be used against you. This happened to us. Michelle Jabeur told me that during her sales training with Hilton Grand Vacations, the Quality Assurance person assigned to train new hires instructed, “We have 46 pages of documents to get through, and we can get through them in 18 minutes – if they don’t ask any questions.” We were instructed to not ask questions. Our complaint was dismissed because “you didn’t bring up your concerns on the recorded closing.”
Michelle said that in the timeshare industry, “front-line” salespeople are supposed to sell initially about $20,000 worth of points. The buyer is told they are required to attend an orientation within 90 days of purchase. At the orientation, the “in-house” sales team is supposed to make a second sale, likely to take place before the first points purchased have been used. The In-house sales team often blames the prior (front-line) sales team for mistakes made, as the reason why there needs to be an additional purchase. This is EXACTLY what happened to us
Our second purchase was not necessary. We were forced to default. It feels like thousands of dollars have been stolen. I lost almost one year of salary with my school district. We sent our report to Hilton Grand Vacation CEO Mark D Wang, Stan Soraka, (former) Executive Vice President and Chief Customer Officer, and Diamond representative Sarah Cunningham. Ms Cunningham called us. I was shaking after speaking with her. My head was pounding. She stated in writing that I could not review her offer with a third party. In other words, I could not even have an attorney review our situation. The offer was worthless.
The unnecessary purchase took place at the required orientation on March 4, 2019. We met with Alec, who asked why we were there. We told him we were informed that we had to attend an orientation. Alec said we didn’t need an orientation. I was infuriated. I had taken two days off work and we had met with an ice storm on our way, requiring an extra night stay.
Alec informed us, “We don’t sell timeshares. We sell Vacation Clubs.” After reviewing our file, he asked, “Why did you purchase this package? It’s only good for ten years, so only suitable for an elderly couple with health ailments.” Alec introduced us to his manager (The same person Michelle named in her lawsuit). The manager also asked, “Why would you have purchased this?” We asked if we had been lied to, “Do either of us look elderly and not able to travel?” Both replied “Absolutely not!” and chuckled. “The agents who sold you this will definitely be in a ton of trouble. They could lose their job because they cost the company well over $100,000 by selling a mistake.” He said the agents should have known better, and that higher-ups would be mad about what it would take to make it right. We were in shock.
They asked if we knew what the fees were for. We were told they were maintenance fees. Alec laughed and said, “No, those are not maintenance fees, they are for taxes, etc.” They were maintenance fees and we later learned that the ten-year product is actually an advantage because maintenance fees are not lifetime.
Alec and his Manager produced paperwork showing what we would need to purchase THAT DAY in Virginia to “upgrade” to lifetime status so we could go anywhere. Our Florida agents at our prior purchase told us we could stay anywhere. Alec said what he would offer us was out of the norm because of having been wronged, so we would be able to purchase at a crazy low price. He instructed us not to tell anyone. He reiterated this over and over.
We decided to keep what we had. Alec then said, “Well you do know that you can only stay at four places?” He pointed to the locations on the prior contract. We later learned we were not restricted to only four locations.
Thinking what we had purchased was a mistake, we bought 15,000 additional points for $31,111. Our net purchase price, after trading in our $13,130 “mistake” was $18,610. Agents opened two Diamond Barclay Cards charging $9,305 on each card.
We had been planning to use our points to go to Hawaii for our 40th anniversary. It was to be a Christmas gift. We were excited to tell our kids, but after being belittled, we felt like fools. Why were we responsible for a mistake made by Diamond’s sales agents?
Alec had spent all afternoon and well into the evening bragging about how he was doing us a favor. While we were waiting in the lobby, another couple walked past. The husband rolled his eyes and said, “We were given a blow.” They must have also been told they bought the wrong product. Overhearing this, Alec reminded, “Remember, don’t mention the price you are able to purchase at because of the Florida mix-up.”
When we went to sign the contract, the closing agent said everything would be the same as what we discussed with Alec. After seven hours, we were stressed and weary and had been advised not to talk about anything we had discussed.
After later learning that there was nothing wrong with our first purchase, we attempted to end our contract. We contacted MANY people. Refusing to pay for an unnecessary purchase. we stopped paying and now receive calls and emails demanding payment from different numbers. We have also received a threatening letter from Hilton’s law firm for past-due maintenance fees. I have close to 2,000 emails.
I am overwhelmed with stress. We charged the purchase because we did not want to finance it at Diamond’s high-interest rate. I will not be able to retire as planned. The reports following ours were submitted by other Diamond members who experienced the same In-house sales manager. We never went on any vacations using Diamond points.
Not knowing where to turn, like most people, we turned to the internet. We signed up with Timeshare Answers (Integrity) paying them $2,995. When nothing happened, I reached out to After Inside Timeshare. Irene Parker provided Integrity’s BBB profile showing many complaints and a BBB rating of F.
Five Diamond Resorts In-House Director of Sales complaints that resolved
Manager Complaint #1, Platinum member since 1999 (Sunterra)
July 2022
We met with DR sales agent Marc on January 19, 2019, at a hotel for nearly ten hours. There was relentless pressure and stalling, saying they had to talk to people in Las Vegas about equity in our account. We attended to learn how to sell points. According to Marc, there were people in Las Vegas who specialize in selling and transferring points. Marc got a manager he called the “Head Honcho” to speak with us.
Marc’s manager provided us with our “inside equity statements” supposedly transmitted by the Las Vegas people. The statement indicated that at my current membership level, my points were virtually worthless. The first printout had ZERO dollars but if I were to be a member of “The Club®” the equity could be worth up to $550,000. I asked for copies of the equity statements. They refused, saying they “weren’t supposed to show them to members.” I asked if I could take a picture. He said no. We later learned Diamond points have no resale value.
The agents told me about Diamond’s Transitions exit program but advised me not to go that route because I would lose equity. Marc said that if I went through him, he could put me in touch with other members who would buy my points. When I threatened to contact Transitions, the agents said they didn’t want me to because I would be walking away from a lot of money if I did not buy 3,000 points to access my equity.
The manager said I needed to apply for the Diamond Barclay Credit Card to earn points to offset payments. This was of so little help I cancelled the card. I succumbed thinking I had a way out and a means to recover some value from my 50,000 points. THIS WAS THE ONLY REASON I AGREED TO BUY. Instead of enhancing my existing membership, a new account was established. I received phone calls because I was a “New Member” but when I explained that I was already Platinum, they hung up.
Manager Complaint #2 & #3 (Two couples purchased the same number of points), #2 is a Platinum member
Sales agent Brent was recorded in Missouri fabricating a maintenance fee elimination program
January 5, 2021
To Michael Flaskey, Diamond CEO, Hospitality, ARDA, ARDA ROC, Association of Vacation Owners
We purchased 4,000 points for $25, 916 in July of 2020 with the understanding that they would NOT be used for vacation, but to convert into “Vacation Points” that could be used to pay maintenance fees. Their exact words were, “You will never pay maintenance fees again.”
Brent explained that Diamond was looking for people our age because we have about 20 years of good travel left. He showed us articles about Apollo and Diamond going public. He said Diamond didn’t want negative publicity, so came up with a way for members to not have to pay maintenance fees anymore. He gave us a 20-year projection showing that we would be paying about $100,000 over 20 years if we didn’t upgrade, but if we purchased “Vacation Points” it would be like “paying maintenance fees ahead saving thousands of dollars in the long run.”
Our other sales agent, who we later learned had been arrested in the past for identity theft and forgery, explained it as earning points to pay fees at the end of the year by using the Diamond credit card to earn points. We learned that credit is only credited for 1% of purchases.
Our friends were brought back before we signed the papers. It was mentioned several times that we could not verbalize that this contract was designed to eliminate maintenance fees, because “everyone would want in on this.” We were to tell the closing agent that we were buying points to promote family time, a better selection of resorts, and flexibility. Brent had us write this down and then gave us the thumbs up after reading it. The manager came and asked us why we were buying. One of us said, “So we don’t have to pay maintenance fees anymore.” He put his head in his hands and laughed, asking us again, to which we recited like puppets what Brent had instructed us to say.
When I got my maintenance fee bill in December I contacted the sales agent that had been arrested in the past for forgery and identity theft. She said she NEVER would sell us points to pay maintenance fees. The manager’s caller ID was a pizza restaurant! He said he listened to the tapes and there was no evidence I was coerced. What happened was orchestrated. We know exactly what we heard. As Platinum owners, with points left over at the end of each year, we would NEVER have had a need to purchase more points. We had expressed this numerous times.
Diamond has a Clarity promise of Respect promising consumers clear and concise information.
https://www.diamondresorts.com/diamond-clarity
Comment from Couple #3 that accompanied Couple #2: Gold Key Owners for 20 years
January 1, 2021
When I attempted to speak with Brent, he said he could not talk to me because his wife is dying of pancreatic cancer, but we learned he was transferred to Diamond Dinners.
Manager Complaint #4, a senior, resident of Virginia, Former Gold Key Owner
To Diamond Resort Consumer Advocacy, Michael Flaskey CEO, Prosek, DR PR firm, Association of Vacation Owners, ARDA ROC, AARP
In Richmond at a hotel, in April of 2016, we were told we had to buy 7,500 additional Diamond points because or, our maintenance fees would jump to $3,000 if we didn’t. Our maintenance fees were about $1,000. After speaking with the manager we bought the additional points. Fees are now $5,100. We were told our unused points would cover maintenance fees if we upgraded. We learned we are not eligible. The sales presentation lasted from 8:00 am to 5:00 PM. We will have to brace for foreclosure. Our loan is $66,000. We are devastated.
Manager Complaint #5, 2/13/18, a Navy veteran
We went to a Roanoke group meeting at Sheraton. They said you could earn points that would offset all your maintenance fees with Barclay card purchases and that our condo was worth $32,000 in points. If I did not buy that day it would cost $8.69 per point for 8,500 points ($73,865) later. They said that if I had gone through the meeting process before like I should have, I could have bought the points for $4. The manager, described as the “Head Man” gave the presentation. He physically got upset and threw the papers down when we refused to sign.
Related article – Timeshare Buying Do’s and Don’t
Thank you, Irene, once again we see the same old story, lies, lies and more lies from sales agents acting under orders from their bosses, who then hide behind the old slogan, “We are not responsible for what our sales agents say“. The testimonies from the whistleblowers we have featured clearly show that a culture of lying is prevalent, those who have a conscience and speak up are told to do it or get out, and there is no middle ground. You either comply or your life will be made a misery, word will have filtered down from above, give them the worst tours going, and see how long they last when they don’t sell.
Does that sound like blackmail?
We always expect any salesperson to embellish their product, most of the time they are just minor and can be considered laughable, but with timeshare and the lies that we have catalogued in all our testimonies, it has gone way further than “EMBELISHING”. I would personally call it a “Conspiracy to Commit Fraud”, veiled by legalities.
That’s it for this week, we hope you all have a great weekend, not sure what Baby Dog will be doing if he wakes up, he had a very busy week visiting and going to the beach, alright for some! So join us again next week for more insights into this crazy world you all paid to join.
Michelle Jabeur
Thank you for shining a light on the dangers of engaging in business with timeshare developers, no matter how big or brand named the company is. it’s engrained throughout the entire industrys culture. GREED HAS TRULY TARNISHED SOMETHING SO WONDERFUL. Buyers beware!
Irene Parker
We have heard from dozens of sales agents, managers, and a few executives since the red flags were raised for me in 2015. This email was the first manager to reach out to me in 2016 and there has been a steady drum beat ever since, but few will go on record. Thank you.
I was a manager for xxx for several years.
Message Body:
I watched every day, agents selling for double and close to triple what it was supposed to be sold for but management laughed and congratulated them for doing it. The maintenance fees statement about buying more and using that to pay your maintenance fees was a practice that was encouraged but be careful. Some of the agents, who still work at xxx, would sell the program for $98k when it was only in the 50k range. One of the guest came back to cancel but the agent said no worries I have if packed 40k but I’ll give then 15 off and still make a killing! Made me sick cause these particular guess were in their late 70′ early 80’s. I asked the agent if he had a conscience and he just laughed…if you can get them to pay more you’re a hero!! Deception actually goes back further then that. We were told to pack the price for a trade in and imply that it was what they got back for there TS… we sold it for the regular price….they got nothing for their TS!
Karen Vartan
These stories just sicken me. I also went through a scam or two or three over my long timeshare ownership. Thank God for Irene Parker, she pulled my chestnuts out of the fire when the stories had me absolutely convinced I should buy more points to (essentially) reduce maintenance fees. Well, the unintended consequences are, I call corporate for information and NEVER attend an onsite information meeting regardless of the gift, and, I tell others to do the same.
John
Reminds me of the movie phrase. “The only way to win the game of nuclear war – is to NOT play.”
Irene Parker
Interesting you say that because a parallel comment by Kiplinger Magazine: “Best Way to Get Out of a Timeshare – Don’t Buy One in the First Place!” Our family loved our timeshares from 1984 until 2012, when my husband and I experienced a jaw-dropping predatory presentation.
BG Hunter
“Conspiracy to commit fraud”! That sums it up, beautifully! And, not only are some sales agents convicted criminals, but so are some of the developers/executives. identifying them as “dirty” would be an understatement.
Randy L
I personally think that all sales presentation should also be recorded and a copy give to the client as well as copies of ALL handwritten documents. If everything is above board, this should not be an issue. Since the salesperson is an employee of the company and selling on the company’s behalf, anything they say to entice someone to purchase should be as enforceable as the written contact. If people are not making untrue statements, then once again, this should not be an issue. If verbal sales statements made by the salesperson are an issue, then something is wrong. There also should be a 30-day recission window to give the buyer time to consider it all. If your presentation is on day 1 of your vacation, then most of your window is gone by the time you get home.
Sheilah
It makes me sick every time I hear the Company is NOT RESPONSIBLE for what their sales agents say. Also these companies don’t care if they hire convict’s because they know they will do anything to make money for theirselves and the company. When they over sell people that tell them they can’t afford to buy then they come up with another lie. Once they get the customer 2 credit cards and put the maximum on each and they get paid they know they will make some money on that sale. Next the customer try’s to pay for their loan as long as they can or take out home loans to pay off what they owe to the timeshare, for that sale that was fraudulently sold to them. And the company made money! None of them care that the customer may loose everything they have worked for all their lives. It is disgusting that they get away with this con. Thank you for all whistleblowers for coming forward, it means you have a sole and care. Wish more would come forward and maybe these companies could be taken down. Our country could learn a lot from Charles’s country.
Joan
These happenings are totally sickening. Timeshares apparently have always been horrible and yet they continue to get away with all kinds of lies and horrible treatment of the consumer. WHEN will our lawmakers get a backbone and force timeshares to treat people fairly??? It is all so wrong and could all be so good. It’s very obviously all a terrible, lying set up from the first to the finish. When they tell us to not say anything, they’re definitely purposefully cheating us. It happened to me, it happens continuously. Right now, I’m very concerned about an elderly couple who signed up a few months ago. so too late to get out. They plan to not use it, to not pay and I’ve told them they will be harassed continuously. Now, tell me, WHY is it ok for a company to take elderly people, lie to them for money, and then force them to pay for something they do not want. I am SO very sick of all this,. I can’t sleep at night. Again, WHY won’t our lawmakers force timeshares to treat people right??? Do our lawmakers have any sense of morals? It HAS to be stopped. Evidence abounds. It’s not just a few isolated incidents. It’s a way of life for most of the timeshare people. It should not be allowed!!!!
Irene Parker
Thank you for reading. Follow the money. When an Arizona lawmaker proposed a bill that would have allowed the timeshare buyer 24 hours to consider their decision, the timeshare industry lobbyist killed the bill in the Senate after it passed in the House 100%. He testified, “It’s not the state’s responsibility to protect people who don’t bother to understand the product.” Like the elderly couple you mentioned forced to go through this. His services were paid for by $5 million a year raised by automatically billing maintenance fee invoices. Timeshare members have never been able to explain to me who the money goes to or what the money is about. That’s why our grassroots efforts. Please reach out to us if your friends need help filing regulatory complaints. Sometimes there is a family member who can help if the buyers are impaired.
Francine Dygulski
The problems are not restricted to Diamond Resorts. Resorts call and call demanding a free stay to attend a mandatory orientation that’s not mandatory. Once we experienced being told we didn’t need an orientation and that we didn’t get what we had been told we purchased before. Our prior agent sold us wrong thing! We also got so angry with the sales person and stormed out cause they said we had to purchase more points. Complained to the Virginia AG but never heard anything. There’s an obvious pattern here in Virginia (THOUSANDS of complaints) and it’s not just Diamond Resorts.
Chris B.
These type of evil behaviors are the RULES of timeshares, not the exception. PEOPLE PAY ATTENTION TO WHOM YOU ARE VOTING FOR EVERY ELECTION CYCLE!! There are crooked government foxes in the henhouse, letting other crooked foxes in…
–//required to attend an orientation within 90 days of purchase. ..the “in-house” sales team is supposed to make a second sale, likely to take place before the first points purchased have been used. The In-house sales team often blames the prior (front-line) sales team for mistakes made, as the reason why there needs to be an additional purchase.//
My scammy timeshare had somebody call me saying that I needed to attend the “owners update” BEFORE using any points. They said had to pay $299 to visit, but they’d give me my money back upon attending. I got the H out of there before they could scam me further.
–//She stated in writing that I could not review her offer with a third party. In other words, I could not even have an attorney review our situation. The offer was worthless.//
Upon my initial scam, I requested to let my attorney look at the contract. I was told they can’t do that. Normally, I’d get up and tell them to F off and walk out, but I thought “Hey, this is a well-known company; surely they are on the up and up. WRONG!! It’s crooked!
–//“Remember, don’t mention the price you are able to purchase at because of the Florida mix-up.// They don’t want victims comparing notes that they’re all told the same lies.
–//We have also received a threatening letter from Hilton’s law firm for past-due maintenance fees. I have close to 2,000 emails.// We need to remove the mafia from the USA.
–//We signed up with Timeshare Answers (Integrity) paying them $2,995.// As the saying goes, “The crook who sold timeshares last month is selling the timeshare exits today.”
I also just saw this on the Integrity BBB site!
“Alert: Integrity Marketing Solutions, LLC/Timeshare Answers is no longer taking phones calls from clients and their voicemail is full. Consumers have tried to reach out to them via phone and email to no avail. Numerous consumers have filed complaints regarding unfulfilled promises for timeshare cancelation and guarantees of refunds. This business is not responding to complaints forwarded by BBB.”
Les Jamieson
It is so infuriating to realize how we were conned into our first Wyndham timeshare, then conned into a 2nd and 3rd upgrade until it just got too expensive and too predatory. Looking back, we can see how we were lied to and basically preyed upon at each step. It’s even more infuriating to see how Wyndham uses very legalistic tactics by claiming that it was our responsibility to review and understand the contract, and our responsibility to provide documented proof or call logs to establish how we were conned. However, nobody thinks they had better create a paper trail because they’ll need to prove they’ve been taken advantage of. The fact is, there are many things we can’t understand until much later. Very few people understand the true cost of a timeshare over their lifetime, how much 12.9% interest on the mortgage will add up to, and how much costlier timeshares are compared to just normal vacation planning.
The only way the timeshare industry can exist is by having highly trained sales agents trick people and “ensnaring” them into highly unscrupulous contracts. For a contract to be legitimate, there has to be a meeting of the minds. There has to be full understanding, which is never the case. We we’re taken advantage of and then left stranded because there aren’t legal protections to stop the tactics of timeshare companies. Thankfully, TARDA has provided a body of knowledge and support for people who are pursuing a resolution to their plight. We need to build the numbers of people willing to register complaints and do whatever it takes to get accountability.