Open Letter to Steve Cloobeck, Diamond Resorts International CEO

This absolutely true. DRI always controls the majority membership on the board. So what ever rules and fees that the company wishes to thrust on their owners is passed on to the employee board members to enforce. Talk about a dictatorship! Never, ever get involved in this crooked operation, if you haven't already.

jamesk501 wrote:

This absolutely true. DRI always controls the majority membership on the board. So what ever rules and fees that the company wishes to thrust on their owners is passed on to the employee board members to enforce. Talk about a dictatorship! Never, ever get involved in this crooked operation, if you haven't already.

I was under the impression that we the owners received both nomination forms and ballots for board members. That being the case, how can DRI always control the majority?

They do it by refusing to allow the owner's communication with each other. They dictate the vote a block of votes "in the best interest of" the owners in the trust. They put their employees (or relatives of employees) on the ballot. With the owners unable to coordinate their efforts, the votes are split between too many TRUE owners on the ballot and, oh the surprise of it all, DRI remains in control of the boards. They then are free to raise fees at will as the DRI employees continue to vote IN FAVOR of all increases. Oh, and did it get mentioned that the DRI employees NEVER recuse themselves when there SHOULD be what any reasonable individual would describe as a "conflict of interest"? Look at the budget. Huge fees straight to Las Vegas!

davidl712 wrote:

They do it by refusing to allow the owner's communication with each other. They dictate the vote a block of votes "in the best interest of" the owners in the trust. They put their employees (or relatives of employees) on the ballot. With the owners unable to coordinate their efforts, the votes are split between too many TRUE owners on the ballot and, oh the surprise of it all, DRI remains in control of the boards. They then are free to raise fees at will as the DRI employees continue to vote IN FAVOR of all increases. Oh, and did it get mentioned that the DRI employees NEVER recuse themselves when there SHOULD be what any reasonable individual would describe as a "conflict of interest"? Look at the budget. Huge fees straight to Las Vegas!

It sounds like you have some first hand experience on the board and obviously it was bad. How does DRI keep the owner's from communicating with each other in a world of email, twitter, facebook, etc.

I have never served on the board so I may not know but if you submit your name to be on the ballot, don't you have to submit your experience, etc. with the application? As owners, we should be hesitant to elect an employee of DRI as there could well be a conflict of interest. Even if they are employees, it seems that they are increasing fees on themselves as well as the rest of us. I can tell you for sure that DRI is not unique in increasing maintenance fees. I have owned several other resorts and the costs always goes up. I don't recall any year when the cost went down for any of them. I know the cost of everything goes up so I am sure that some increases are totally legit.

As owners, we need to elect board members committed to keeping maintenance fees in check.

I am a DRI owner and I do not want them to share my information with anyone!!!

mark531 wrote:

I am a DRI owner and I do not want them to share my information with anyone!!!

Mark, I agree with you. I didn't imply that I was in favor of DRI sharing contact information with all other owners. I was responding to the previous message that DRI prevented owners from communicating with each other. There are forums and facebook groups that DRI has no power over so I find it difficult to believe that DRI can prevent owners from communicating with each other on a voluntary basis.

Those forums allow communication only with the few that access those sites. And if you think that DRI protects your info explain all of the calls from timeshare resale companies.

davidl712 wrote:

Those forums allow communication only with the few that access those sites. And if you think that DRI protects your info explain all of the calls from timeshare resale companies.

I have owned timeshares from Vistana, Hyatt, Gatlinburg Town Square, Sun Dunes and of course DRI. I purchased all of them except a small portion of DRI points on the resale market. I have never gotten a call from a timeshare resale company.

Why would DRI want you to be called by a timeshare resale company?

I just received my Diamond Resorts Hawaii Collection Members Association Notice of Annual Meeting. It will be held Wednesday, September 19 at 2 p.m. (Pacific time) at the Monte Carlo Resort & Hotel, Las Vegas. The following are the candidates for the Board of Directors of the Association:

Glennon Acksel Robert W. (Bob) Baird Eugene (Gene) Berkes Jim Brown John M. Burnham J. Hal Caton Ronald (Woodie) Cheek Bruce Dahl David M. Elias Brenda Joyce Flowers Charles Hogle Thomas M. Kuehn Trudy Mitchell James Newman Larry E. Smith Hiroaki Suda Jason Toste (incumbent & DRI Employee) Gary W. Wagner Frank Warfield

The only one above that includes in the summary that he is an employee of DRI is Jason Toste. Do we know of any others who are DRI employees or are related to employees? Trying to make a smart choice when completing my ballot. Will there be someone from our facebook page that will be in Las Vegas for the meeting who would be a good person to designate as a proxy?

Please, do not ask me any questions about the lawsuit. I just wanted to get on here to try and get the most informed idea on whom to chose for the Hawaii Collection Board of Directors of the Association.

I would like to get in on the lawsuit. It seems we are not the only ones in this monopoly for Steve to live off of our hard earned money that there is no way to get out of. I was so angry when I saw the Undercover Boss and thought, wow he is living the lifestyle of a king while we are busting butt working to make a living to cover our bills and our outrageous timeshare costs which have gone up every year without any way out! We even have talked to the company many of times to get out of the "Club" and conveniently enough we still haven't received the paperwork they said needs to be done to get out of it, but oddly we still receive bills! Mr. Cloobeck, you need to do the right thing for the people who have been taken advantage of. If I remember correctly, you purchased this business at just the time we bought, and we have had been nothing but screwed since that day. We would like our money back as well, and would love to be included in the lawsuit. We were even told at the time of purchase they have the "first right of refusal" to purchase it back, but when mentioning it to them, they knew nothing about it. If anyone has the info on how to be included in the class action lawsuit I would appreciate sending it to me.

Paula Hill beautyforlashes@yahoo.com

paulah172 wrote:

I would like to get in on the lawsuit. It seems we are not the only ones in this monopoly for Steve to live off of our hard earned money that there is no way to get out of. I was so angry when I saw the Undercover Boss and thought, wow he is living the lifestyle of a king while we are busting butt working to make a living to cover our bills and our outrageous timeshare costs which have gone up every year without any way out! We even have talked to the company many of times to get out of the "Club" and conveniently enough we still haven't received the paperwork they said needs to be done to get out of it, but oddly we still receive bills! Mr. Cloobeck, you need to do the right thing for the people who have been taken advantage of. If I remember correctly, you purchased this business at just the time we bought, and we have had been nothing but screwed since that day. We would like our money back as well, and would love to be included in the lawsuit. We were even told at the time of purchase they have the "first right of refusal" to purchase it back, but when mentioning it to them, they knew nothing about it. If anyone has the info on how to be included in the class action lawsuit I would appreciate sending it to me.

Paula Hill beautyforlashes@yahoo.com

Paul,

You are a little late on the lawsuit. It was settled out of court. DRI agreed to extend the amount of time for owners to pay the special assessment and they also agreed to have more disclosure of who were employees and family on the Board of Directors. There were no money given back to owners. There is a copy of the letter settlement on this board.

I would suggest that you read your original contract that you signed to look at how you can rid yourself of your timeshare. If you have a deed then you would have the same obligation to sell it as if you own a home. In other words you're obligated to it until you sell it. Just like banks, DRI can hold you accountable for what you signed up for. If you own points and they are paid for you can just stop paying maintenance fees and they will take away your points and you'd be done.

You have a contract that you had an opportunity to read, have a lawyer to review and to rescind. Because you don't want to have it anymore, means you need to go through the appropriate steps to rid yourself of it. That is the problem with our country. We don't want to be held accountable for the stuff that we sign up for . We want the perks, but not the maintain the responsibility.

Stop looking for a lawsuit to get out of your obligation. It cost us other owners money that will only go to lawyers.

First off my name is not Paul, secondly I am not trying to get out of my obligation. I have already paid for my timeshare. I am trying to get DRI to keep their end of the contract in doing the things I have asked them to do so before you get all up on yourself get your facts straight! You don't know me or my situation, so your sarcasm means nothing to me. I am an owner too, yea that is just what I want to do increase cost to myself.

Sorry Paula,

My mistake for the name. However, you stated you wanted to get in on the lawsuit so thus my remarks. I don't like increased fees as much as you do. However, DRI's fees are increasing just like other developers' are every year. DRI members seem to think they are so out of the ordinary.

From what I have read Cloobeck was living and extremely wealthy far before he bought all of these timeshare companies, so I don't think our maintenance fees are the cause for his wealth. In fact, I have seen improvement since DRI has taken over from both of the former owners.

If DRI is not doing what was stated in your contract that you signed, then complain. I am with you on that. However, if a person is looking for more and then complaining and it's not in there contract, then shame on them.

Its one thing when they sell you something with "their word" and what was promised during the transaction, and another what is stated in the contract . Idk do you have hours to sit and read every word on a contract before you realize some things are not extactly what was stated to you ? Guess that is our bad! The unfortunate thing is these timeshares are a money pit and you can't do a thing with them. For those of us who aren't as fortunate as you may be, in being able to travel all the time, and use it as much as you would be able to, and truly benefit from it, basically you are screwed! I would venture to guess there are a lot of people in the same boat as we are with finiancial hardships and paying for something that is just a money pit and prices increasing to where you can't afford them . You can't even "turn the timeshare over" because they won't take it back. Even with the loss we would take on the money we purchased it for. They only look at it as money they will lose on maintenance fees, (that continue to increase for what?) they dont care about how those fees are sometimes impossible to make for us, but then again, I guess that isn't their problem now is it! That is what you are saying by reading your contract and dealing with it. The buy back that was told to us about at the time of purchase is just BS but guess that is why they are "salesmen" so with that said, I am done with this conversation. We are screwed like so many other owners, and guess we will have to live with it, since there are no other options, selling and even trying to get your weeks rented out at what you pay for your fees are a joke and these companies saying they can sell or rent out your timeshare are laughing all the way to the bank, just like DRI is doing when an owner signs the papers. There are so many other negative experiences I have had with DRI but I don't have time to waste talking about it, nothing changes.

paulah172 wrote:

Its one thing when they sell you something with "their word" and what was promised during the transaction, and another what is stated in the contract . Idk do you have hours to sit and read every word on a contract before you realize some things are not extactly what was stated to you ?

Unfortunately, what is said in a timeshare presentation by a timeshare salesperson holds no water in a court of law (old saying = "if a timeshare salesperson moves his/her lips he's/she's lying") .... it's only what's in the written contract that counts. So yes, if you were promised certain things in the verbal presentation then you need to read the written contract before signing on the dotted line to make sure those promises are in that contract.

jayjay wrote:

paulah172 wrote:

Its one thing when they sell you something with "their word" and what was promised during the transaction, and another what is stated in the contract . Idk do you have hours to sit and read every word on a contract before you realize some things are not extactly what was stated to you ?

Unfortunately, what is said in a timeshare presentation by a timeshare salesperson holds no water in a court of law (old saying = "if a timeshare salesperson moves his/her lips he's/she's lying") .... it's only what's in the written contract that counts. So yes, if you were promised certain things in the verbal presentation then you need to read the written contract before signing on the dotted line to make sure those promises are in that contract.

I have bought and sold at least six different brands of timeshares including DRI. In all but one case, I was able to take the contract paper work out of the sales presentation and over night make a decision on the purchase. The Marriott was the only timeshare presentation that would not allow me to take the contract out of the room. I just chose not to purchase.

It is unfair to make the statement that if a salesman is moving his/her lips they are lying. I have never been promised something by a timeshare salesman that was not in the contract. I don't think I am just lucky. I believe the lying salesman is the exception and not the rule.

Just in case you may think so, I am not a salesman but an engineer who makes good use of his timeshares. They are very poor buys if you don't use them. They beat the hell out of staying in a hotel when you have a family.

Dan Bowman

I just want to join your Facebook forum

If you want to join the Facebook forum for DRI. go to Diamond Resorts Members and I will accept you into the group.

dan825 wrote:

jayjay wrote:

paulah172 wrote:

Its one thing when they sell you something with "their word" and what was promised during the transaction, and another what is stated in the contract . Idk do you have hours to sit and read every word on a contract before you realize some things are not extactly what was stated to you ?

Unfortunately, what is said in a timeshare presentation by a timeshare salesperson holds no water in a court of law (old saying = "if a timeshare salesperson moves his/her lips he's/she's lying") .... it's only what's in the written contract that counts. So yes, if you were promised certain things in the verbal presentation then you need to read the written contract before signing on the dotted line to make sure those promises are in that contract.

I have bought and sold at least six different brands of timeshares including DRI. In all but one case, I was able to take the contract paper work out of the sales presentation and over night make a decision on the purchase. The Marriott was the only timeshare presentation that would not allow me to take the contract out of the room. I just chose not to purchase.

It is unfair to make the statement that if a salesman is moving his/her lips they are lying. I have never been promised something by a timeshare salesman that was not in the contract. I don't think I am just lucky. I believe the lying salesman is the exception and not the rule.

Just in case you may think so, I am not a salesman but an engineer who makes good use of his timeshares. They are very poor buys if you don't use them. They beat the hell out of staying in a hotel when you have a family.

Dan Bowman

Yes, but you READ your contracts .... most people don't, and just by reading this one thread you can see that many people were made promises that were not kept by a timeshare salesperson = they didn't take the time to read their contracts with all the promises intact.

I do agree with you that timesharing is a great product, especially if bought resale (I previously owned 8 weeks) and we were able to visit many beautiful areas of this great country via that ownership/exchanges, however all (but one) was bought on the resale market .... we sold them (for what we paid resale) after we stopped traveling, however that was before the economic crash of 2007.

If we were still traveling we would definitely get back into timesharing (resales) .... it's a buyer's market and you can buy into luxurious resorts (resale) for pennies on the dollar of developer sales .... many timeshare owners paid a developer thousands of dollars that they are now selling for pennies on the dollar in this awful economy = luxuries are the first thing to go .... AND ever rising yearly maintenance fees have overridden what most owners can get for rentals.

Amen to your appropriate response to all of the whining regarding this matter. GO TO THE BOARD OF THE HOMEOWNERS ASSOCIATION !! Give the guy some credit for showing empathy and appreciation for extremely hard working, deserving & loyal employees. When was the last time you all have reached DEEP into YOUR POCKETS to significantly improve the quality of life for another human being experiencing the challenges of life who is less fortunate than yourself & who just happens to work for YOU? Helping YOU BUILD YOUR EMPIRE!! Is the money you say you're OUT , HIS FAULT? ( SOME MALITIOUS PLOT TO FILL HIS OWN POCKETS?... GREEDY PEOPLE DON"T HELP ANYONE BUT THEMSELVES!!!! ) Is that increase in fees going to be the difference between you having a roof over your head or is it going to PREVENT YOU FROM DOING SOMETHING / HAVING SOMETHING ELABORATE?? Don't be a hater because he has acquired the level of success and financial freedom that most of us only dream of!! He was smart! He was lucky! He is entitled to enjoy the fruits of his labor & wise investing! If he wants to buy a fast car, a plane/jet ,a mansion of a house ...SO WHAT!!! Shame on all of you who ridicule an extremely wealthy employer who has " shared the wealth " with not only the employees that he had first hand interaction with, but also has gone the extra mile for the others which he had NO first hand interaction with by putting forth a MILLION DOLLARS of his OWN MONEY & getting the company to match his contribution DOLLAR for DOLLAR to ANY other EMPLOYEE experiencing some kind of life altering crisis or hardship!! Saying that he only did it for PUBLICITY, or to make himself LOOK GOOD is OBSURD!! And maybe he WAS the OTHER KIND OF BOSS IN THE PAST... I don't know...people change!! Kudos to you STEVE CLOOBECK...A MODERN DAY ROBIN HOOD? ....OR EMPLOYMENT HERO? ...that is way all mankind should be!!...Place the blame where it lies! Personally, I think that all companies , no matter how big or small, should be required to take care of their employees after a certain level of success because the truth of the matter is that THEY get you there ! Whether YOU believe that or not it is SO TRUE!! Take notice... If YOU have people working hard for you & contributing to YOUR SUCCESS...HELP THE PEOPLE WHO HAVE HELPED YOU GET TO WHERE YOU ARE WHETHER YOU AGREE OR NOT WITH HOW HARD you think THEY HAVE WORKED TO GET YOU YOUR SUCCESS...trust me...they have made many sacrifices for YOUR SUCCESS whether you are wise enough to see it or not!! Surely, you aren't so self-absorbed and narcissistic to think that YOU & YOU ALONE have done THAT all by yourself? THINK ABOUT IT!!...jus' sayin'! I would be honored to work for someone who shows that kind of recognition and appreciation for his employees....after years and years ( 15 to be exact ) of hard work, dedication, sacrifices and loyalty to ONE EMPLOYER & forced to quit ( buy cutting my hours down to nothing that I could live off of & so they wouldn't have to pay me unemployment benefits ), a job that I loved & was extremely good at ,was always TOLD- what a GREAT JOB I did many times over the years & what a "superstar" I was......and so on ,for a " CHEAPER, LESS EXPERIENCED, LESS QUALIFIED PERSON"... then was told that " IT"S NOT PERSONAL IT"S BUSINESS", " we can't AFFORD you any longer," " we're DOWN-SIZING to keep from going into the RED"... Yada,Yada,Yada... I would LOVE to work for Steve Cloobeck...I did not see a man wrapped up in his own ego...I saw a man who truly wants to take better care of his staff, make a difference in the quality of their lives & work environment, show of concern for their well being and a man who would go to his employees ( if it ever came down to it ) and consider a pay-cut across the board so that NO ONE would have to be LEFT BEHIND & suffer that kind of financial & emotional loss, I mean, DEVISTATION! Legally getting away with something so ETHICALLY & MORALLY WRONG that it SHOULD BE considered CRIMINAL and PUNISHABLE BY INPRISONMENT in THIS country!! ( when YOU CAUSE an innocent person( with innocent children ) to lose their mortgage,their cars & their life as they knew it to save yourself a few bucks or becauce your teenager wants a car that is way TOO EXPENSIVE, you want to buy yourself a new ROLEX because the OLD one ISN"T NEW ENOUGH any more or because your next door neighbor has purchased a jet or a yaught & you suddenly feel " THE NEED " to DO THE SAME so that you don;t have to feel like you've " BEEN OUT-DONE " & the GENIOUS IDEA YOU HAVE TO ENABLE YOUR FINANCES TO DO SO IS TO CUT HARD WORKING EMPLOYEES' PAY/HOURS TO THE BRINK OF THE POVERTY LEVEL SO YOU CAN HAVE YOUR WANTS>>>>>YOU SHOULD BE LOCKED UP IN PRISON!! So, if you don't like what you see when you look at Steve Cloobeck CEO, than my humble advise to you is to CHANGE THE WAY YOU LOOK AT HIM...it's YOUR perspective that's the problem ....NOT STEVE CLOOBECK!! Chew on that for a while and get BRUTALLY HONEST with yourself! No matter how you slice it...I saw a generous man who was sincere and truly wanted to help by showing his appreciation for loyality despite the daily challenges & frustrations of working directly under idiots! I GET IT...DO YOU? ... I'M DONE NOW...WOW, that felt great to say!!! Everyone always just thinks it, but there, now I've said it ! How do you like me now ? Do your homework people!!!

chrisg352 wrote:

to whom it may concern, call your homeowners association concerning maint fees. they control them not the developer. the developer is there to sell units. the owners decide to raise fee's or not. there is a homeowners association you can try to get on and then would see how everything works. i worked for diamond resorts as wells as some others and they all work the same. it is a big myth that they make money on them, they are not allowed to by law. so you are barking up the wrong tree. find out who they are and complain to them. hope this helps.