When you first bought your timeshare how often did the sales person mention maintenance fees and special assessments? Did they mention that the resort has the right to charge you thousands of extra dollars in a year to cover special assessments?
That’s what happened to the timeshare owners at The Point at Poipu, a Diamond Resort timeshare in Kauai Hawaii. The Point at Poipu has roughly 13,000 deeded timeshare owners. And last year the homeowners association asked the owners to pay $65 million to make repairs for water damage. Depending on how many points or units you own, that amounts to about $7,000 each owner over a two year period!
Recently, The CEO of Diamond Resorts appeared on the TV show Undercover Boss. In his comments to the media, he offered to return money to unhappy timeshare owners. Really? The Point at Poipu received a flood of requests for refunds and now Cloobeck, the CEO of Diamond Resorts, has to come up with a solution for all the unhappy timeshare owners.
Unhappy timeshare owners created a website, poipuowners.org, to gather information and strategy to get a solution to their timeshare fees problem. In response, the company, according to their website, will pay the largest component of the assessment, nearly $10 million or 15 percent of the total cost of the repairs. That still leaves the timeshare owners with $55 million in repairs to pay for.
The drama at The Point at Poipu timeshare resort is not over. We will have to wait and see how this plays out.