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Settlement Reached Between Diamond & Point at Poipu Owners

Denver
Destination Expert
for Poipu
Level Contributor
3,625 posts
2 reviews
Settlement Reached Between Diamond & Point at Poipu Owners

Just an FYI for anyone following the struggles of Point at Poipu Owners over the last year (who were hit with an ENORMOUS assessment with only a few months to come up with the money) - a settlement was reached in the lawsuit brought by a group of angry owners.

This IS travel related because anyone considering purchasing a timeshare needs to be aware of how the management company can change the terms of the agreement at any time, for practically any reason. Apparently over 500 owners defaulted on their units because they either couldn't or refused to pay the assessment.

[From an email sent by Concerned Owners at Point at Poipu]

Our class action lawsuit has resulted in a settlement reached through mediation between the attorneys for the plaintiffs and the attorneys for DRI and the rest of the defendants.

There have been financial concessions. They are now willing to take the remaining two years of payments and make them into FOUR years of payments. This will reduce the amount due in each of the next two years. If the escalation/contingency is not needed (or is lower than originally anticipated) years 3 and 4 will see reduced amounts billed, conceivably with NO funds due at all, rather than collect the contingency fees up front.

They are also going to assume the expense of the defaults ($4M) as they are also collecting the deeds on those intervals. Further, they have agreed to drop $1M of the $1.7M management fees. There were also Governance issues addressed. For all future elections, FULL DISCLOSURE must be made of ANY affiliation with DRI and all of its subsidiaries as well as familial connections. All board members will be educated about "fiduciary responsibility" and "conflict of interest" so as to assure that all is above board. Additionally, the board members will have an "independent" attorney available for consultation with regard to board activities.

This summarizes some of the key points in the Poipu Settlement Agreement - Fully Executed which can be found on our website at http://poipuowners.org/News.html

California
Level Contributor
42,230 posts
131 reviews
113 helpful votes
1. Re: Settlement Reached Between Diamond & Point at Poipu Owners

I think there is a forum for timeshares.

California
Level Contributor
42,230 posts
131 reviews
113 helpful votes
2. Re: Settlement Reached Between Diamond & Point at Poipu Owners

Yes here it is:

tripadvisor.com/ShowForum-g1-i10700-Timeshar…

Purchasing a timeshare is not really travel related but this was pretty interesting reading even though I 'm not sure who "won". You still have Diamond running your resort. The only ones to benefit are the attorneys.

Denver
Destination Expert
for Poipu
Level Contributor
3,625 posts
2 reviews
3. Re: Settlement Reached Between Diamond & Point at Poipu Owners

I'd argue that plenty of people either stay in a gifted timeshare or are tempted by the incentives offered to tour timeshares while traveling - and the Point comes up fairly often on this forum.

I think Diamond won, ceding just enough to make the more vocal owners pipe down a bit.

Texas
Level Contributor
822 posts
15 reviews
29 helpful votes
4. Re: Settlement Reached Between Diamond & Point at Poipu Owners

And I'm guessing this may be the same Diamond whose CEO was on Undercover Boss just this last Friday (for the second time since the show started) and showed himself going to various resorts in Cabo and elsewhere (Not Hawaii) Diamond had just purchased that had been in bankruptcy for 3 years before Diamond purchased them--and the formerly-BK resorts were in sad shape!

Edited: 12:10 pm, December 02, 2012
Huntington Beach...
Destination Expert
for Huntington Beach, Newport Beach, Laguna Beach
Level Contributor
6,800 posts
189 reviews
75 helpful votes
5. Re: Settlement Reached Between Diamond & Point at Poipu Owners

I remember when the Point first opened as a time share property after Hurricane Iniki, after failing to sell the units as individual condo units. Some of the regulars on this forum gloated (on the old AOL Kauai forum) about the wonderful deals they got, even though they paid out huge amounts of money for one week per year stays. They told us about the "points" they were accruing and how they could pass shares on to their heirs. They didn't understand that they were subject to ever rising maintenance assessments and escalating use fees that made it more expensive to use their own condos than to rent elsewhere. The initial marketing costs were so high that the "real" values reflected in resale prices were just a fraction of the original cost.

I think these warning do belong here because vacation visitors are the ones that time share marketing companies target. You fall under Kauai's "spell" and the dream of owning a piece of paradise just become overwhelming.

Don't fall into the trap. If you are really interested in a time share, go to an off-property re-sale agent, where you can at least find a time share for a reasonable enough price to make it worth the risk of the future costs.

Santa Rosa...
Level Contributor
19,394 posts
1 review
6. Re: Settlement Reached Between Diamond & Point at Poipu Owners

All good points, lscats. Just as with a home there WILL be rising costs and maintenance issues. And if you're an owner guess who they come to. Sign on the dotted line for a share of a piece of property you're stuck for your share when that big bill is delivered.

Agree with lscats, look for a cheap resale. I'd even go so far as to say have an inspection on the bones of the property, just as you would with a home purchase.

Oregon
Level Contributor
8,735 posts
42 reviews
260 helpful votes
7. Re: Settlement Reached Between Diamond & Point at Poipu Owners

We were there in Oct. Have been owners since Embassy Suite days. Wish we could get rid of it.

Was surprised they are still selling them. My wife can't resist a free helicopter ride or whatever so we signed up for presentation. Our presenter was guy who sold us on points. We have learned how to be pleasant, not ask to many questions and get out. Suppose one day they will learn to not invite us.

I sort of feel bad that we are taking money from them when we know we will not buy. but now thinking small pay back for the huge assessment and what I consider excessive maint fees,

will say we have used ownership for great exchanges and returning to Poipu which we love. Not sorry we owned, just sorry it appears we can not get rid of it now when we really no longer need.

8. Re: Settlement Reached Between Diamond & Point at Poipu Owners

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9. Re: Settlement Reached Between Diamond & Point at Poipu Owners

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