The TATOC is a supporter of any Timeshare club whose developer pays TATOC a Subscription. To make the point again, when your timeshare developer becomes a member of TATOC it pays levies to them. That payment comes out of the clubs you are all members of. That explained, those payments flow from your bank accounts to the club and then to TATOC. You don’t get to vote at any TATOC meeting, however, your resort developer does. Therefore, you pay and another gets the benefit. Does that seem fair?
The work TATOC does is exemplified by the alleged MRL “land grab” which TATOC assisted in. MRL wanted to take off consumers the very timeshare they had previously sold to them. In pursuit of that goal, MRL was assisted by TATOC who assisted MRL in the pre-roadshow advice, the roadshow presentations and in the plan for MRL to take off you, your fixed week timeshares. In exchange, MRL would grant to your entry into the notorious timeshare “points system”.
The difference is now explained.
The fixed week system you (the consumer) bought granted a right to occupy “a particular week in any given year”, in “a certain apartment” and at a resort of “your choice”. That right was a guaranteed right.
In the “points system”, you were told the guaranteed right would be removed and you only now have a right to become a member of a club. Being a member of the club, you again could obtain a holiday if that holiday was available. If not available, you could not get a holiday. So, you enjoyed a fixed right and that right was taken off you for another right which might deliver a benefit. The guarantee was removed and replaced with a possible.
If you did not like the proposal and would not accept the TATOC supported terms, you were required to pay a fee of £2,000 (4 times your exit fee.) per weeks’ timeshare you owned. MRL got rich and you got less benefit. TATOC claimed it was “groundbreaking” Whilst TESS supports the consumers and claims it was a “scandal”.
MacDonalds were the owner of the resort property, but consumer timeshare owners, all enjoyed the right to occupy those resorts. Therefore all the assets which underpinned timeshare contracts were all encumbered. In short, they owned property which has tenants in common (timeshare owners). Being encumbered the property values were very small. However, if they got back all the “rights to occupy” then the property of the unencumbered resort would be worth far more. The “groundbreaking” story is that MRL did this, removed your rights and if you did not like it, you paid MacDonalds Resorts (MRL) for the privilege and your consumer association TATOC thought it was “brilliant”, a “groundbreaking” idea and supported the “initiative”.
MacDonalds Resorts are now a “points” based timeshare, have recently published its accounts and has declared they made a fortune. As for the consumer yours simply wrapped up in a worthless convoluted points timeshare and enjoying fewer rights than you had before. As it was the clubs committees who accepted the MRL proposal, delivered to MRL consumers and recommended it Have they committed a Rouse? The unencumbered asset now retains massive value, therefore in compensation for the loss in value of the consumer timeshare, You would expect that at least part of the money would go the timeshare consumers so that it could be distributed to them and for the loss of the benefit they suffered. Not so!
TESS now has information which indicates
349 timeshare properties have been taken out of 9 MRL resorts. Those properties now belong to MRL. They own them outright and at a re-valuation of £40,000 this amounts to a capital increase of £14,000,000 (14 million) in favour or MRL
In respect to relinquishment’s they have accepted 8,100 weeks back and received £2,000.00 per week, a total, cash gain of £16,200,000. £16.2 Million)
Out of those receipts, they have placed £3.6 million into the clubs the payees are not a member of. Into clubs, MRL owns, control and administer. The net result ensures that MRL has money to upgrade all their now unencumbered sites, they have a right to occupy them all and will own them.
That all said, they have also pocketed approximately £12,800,000 in cash themselves from the adventure.
So, if these calculations are correct, we must ask the question was it a “land grab”.
Just before the proposed land Grab, MRL was valuing the timeshare to a deceased estate at £5,000 each, therefore MRL obtained 8,100 weeks and negatively valued them all at £-2,000 and you wonder why Timeshare has a bad name. TESS is pursuing contracts in Spain and against MRL and their subsidiaries on a no “win no fee” and (if our Spanish Lawyers are to be believed), they will all be successful.
Posted on: 28th November 2016