Diamond Resorts International Ripoff Beware!!! Las Vegas, Nevada

4th of Jan, 2012 by User649457

I am the owner of timeshares that I purchased in Poipu, Kauai, Hawaii in 2000 and fell in love with the place. We have thoroughly enjoyed our resort, quality family time, and met new friends from all over the world. This joy has come to a complete stop. The resort management was sold to Diamond Resorts International in 2007. That sale has put us and other owners into a downward spiral.Prior to the acquisition by Diamond Resorts International (DRI), our maintenance fees were reasonable. From 1995 to 2006 the annual increase in the maintenance fees averaged around 6%. When Diamond Resorts took over the management of the resort, our maintenance fees jumped almost immediately with an 18% increase in 2008 followed by a 20% increase in 2009. During this period of excessive maintenance increases, resort amenities and maintenance went into decline.In 2006, prior to DRI, management fees were about $700,000. By 2010, DRI had increased the management and administration fees to $3,264,864 - a 364% increase in fees from 2006. To make matters worse, last month we were hit with a $65 million dollar assessment ($5,893 per deeded week) for water intrusion damage and an invoice that is due January 1, 2012 requiring payment of 30% of the assessment. My week of ownership plus maintenance total to about $7000 to be paid all at once by 1/31/12. This is a huge sum to pay in today's economy and DRI refuses to work out any kind of payment plan with me. The management company (DRI) refuses to share the detailed estimate of repairs, insurance policy, and any other reports that were prepared by consultants that were hired. It appears that they never considered an assessment payment option spread over a larger number of years (e.g. 10 years) to lessen the financial burden.DRI controls the resort boards by having a majority membership of DRI employees or employee relatives. They have not released an owners list to non-DRI candidates running for board positions as required by resort bylaws. In our opinion, they truly have a conflict of interest when making financial decisions for the resort - just look at the excessive increases in management and maintenance fees. This conflict of interest is against Hawaii law and the resort bylaws.We, the owners, are handcuffed. This simply is not fair and it needs to be stopped and investigated. PLEASE BE AWARE OF THIS COMPANY AND DO NOT PURCHASE ANYTHING FROM THEM, THEY HAVE SCREWED OVER MANY TIMESHARE OWNERS FROM EUROPE AND THE STATES!!!! STAY AWAY FROM THEM!!

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