Lawsuit Alleges Marriott Timeshare Owners Lost Up to 90% of Their Value Because of the Hotel’s Carelessness

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Right now hundreds of Marriott timeshare owners in Colorado are suing the company, claiming Marriott is to blame for a huge drop in the value of their timeshares.

A federal judge has partly granted a sanctions motion requested by timeshare owners against Marriott Vacations.  The accusation is that Marriott failed to present important information, and caused timeshare properties to “plummet” in value.

Timeshares seem like incredibly risky business.  There are so many ways to lose money.  That said, many of the timeshare presentations offer free hotel stays, meals, and paraphernalia.  So they can be an easy way to enhance a vacation for the strong-willed.

If you are interested in learning the tips and tricks to cheap travel (and it doesn’t involve paying for an expensive timeshare!), then subscribe to our newsletter and we’ll send them to you daily.

Marriott Timeshare Presentations Are a Quick Way to Earn a Free Hotel Stay – Just Don’t Put Your John Hancock on Any Dotted Lines

Marriott Timeshare Lawsuit

Marriott has been found committing a “discovery violation” toward 200+ timeshare owners.

This ruling comes from a request back in April asking the court to sanction Marriott Vacations for concealing its affiliation agreement with a condominium association. The owners say the value of their timeshares have dropped between 80 and 90 percent because Marriott set up an affiliation agreement with Ritz-Carlton Destination Club and Aspen Highlands Condominium Association Inc. without approval from most of the owners, as they promised to do.

The judge did not perceive Marriott to be disingenuous, and instead just careless.

I’ve never dipped my finger into timeshares, but I see how they could potentially save folks money if there’s an area you find yourself returning to religiously year after year.  But unless that’s an absolute certainty, it’s got to be a huge no-no.  I’ve heard horror stories of folks who think they can successfully market their timeshare when they decide to spend their vacation days another way.  But that leaves a frightening lot up to chance (like the above suit!).

Miles & points are more valuable and flexible than dropping anchor in the same vacation spot for 5 years.  You can use Marriott points for stays in Marriott timeshares, after all.  And there are lots of ways to earn Marriott points.

I’d love to hear a contrary opinion from anyone with a timeshare!

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Hat tip:   Law360

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Paul B
1 year ago

I have been involved with timeshares for almost 20 years. We have traded our Mexico timeshare six times for Hawaii. The cost is about 1/3 the cost of a hotel. Plus, we have a kitchen to also save on costs.

We purchased our Cabo timeshare on EBay for $136.00. It is a RTU (Right To Use) and it expires in 2040. As an owner in Cabo we have been upgraded to a larger unit more than 50 percent of the time. We also receive a substantial reduction on the “all inclusive” option. We rarely leave the resort. There are six pools, a sports bar with 16 flat screens, and more than 10 food options. We could not afford to stay there if we did not own the timeshare. Did I mention there is a hot tub on the balcony? Our maintenance fee is $475.00 a year for one week of use. Rooms to the general public start at $275.00 a night.

Artur
1 year ago

Bought an RCI points timeshare on ebay for $1. Where is not impartant (but it is a desirable location). There were some out of pocket costs like a resort transfer fee ($250) and an RCI transfer fee ($98+$124 if not already a member). However maintenance fees were already paid for the year and I also got the prior year’s RCI points. Next year maintenance fees are approx $900 for 92k RCI points. I can use the points like miles to reserve other RCI points properties (over 3000 available to reserve on average). Each reservation costs $239 per week. (Less for partial weeks).
End result – I can turn that 1 week timeshare into 4 or more weeks at other resorts (depending on how many points are required for a given reservation). All for $900 maintenance fee, $124 RCI member ship fee per year, plus $239 per reservation.
I’ve now used my $1 timeshare to stay at the Grand Luxxe Nuevo Vallarta in a 2 bedroom, 3000 sf apartment with a private pool on the balcony and still had 50% of my points left over. Btw, the rack daily rate for this specific apartment at that resort is $3060 per night. Beat that.

Rita
Reply to  Artur
1 year ago

That’s amazing! I am thinking of purchasing. Your maintenance fee is based on which location?

Artur
Reply to  Rita
1 year ago

Check out the Vacation Village resorts. Reasonable maintenance fees for a large number of RCI points. Grandview Las Vegas and Vacation Village at Parkway (Orlando) come to mind.

Mags
1 year ago

People.need to.do there homework stop.buyimg from.co.
Buy resell.they are cheaper these timeshares are to.expensive AMD when you.throw in the maintenance expensive. Let it be gifted sonyou.dont pay taxes AMD then pay off the seller. If the timeshare companies would wear the prices maybe it would.not be so.much of a problem. They are over.priced

Dan Rohman
1 year ago

Want to hear a contrary story? I own one in the Black Hills and use it every year. It is the week before the motorcycle rally in Sturgis. When we got it (really cheap) I chose that week because my family rides and we have used it often. I can also switch it up for a week in the late fall for a week of Black Hills golf, casinoes, and good food. And the yearly fee is half the cost of a good 4+ star motel and it is a 3 bedroom, top floor, fireplace, astronomical view, and master bedroom is the loft looking out over Terri Peak. Love this place and I’ve owned it for 25+ years. This one is a no brainer.

Mags
Reply to  Dan Rohman
1 year ago

I own thru Wyndham nest investment I bought from Fairfield at rock bottom take 2 vacations a year you are right a no brainer

Sri
Reply to  Mags
1 year ago

Not to knock anyone owning one, but did you know there are several timeshares that can be bought for $1 or even free? There are good reasons for this.

Artur
Reply to  Sri
1 year ago

It’s all about the maintenance fee. You are stuck with it whether you use the timeshare or not. However, if your resort will give you RCI points (not trade-in weeks), then you can use the points currency like miles to buy other vacations.
So if you can purchase that $1 timeshare, then by paing maintenance fees you effecrively purchase RCI points at $.01/point, then reserve a unit and get $.20/point value out of it (comparing to standard daily rates for like unit), then there is no better deal to be had, including playing the miles game.

Rita
Reply to  Sri
1 year ago

I found that out the hard way.

Sri
Reply to  Dan Rohman
1 year ago

Need more info, and I can assess with no bias.

1. What did you pay?
2. What is the yearly maintenance cost?
3. What is the yearly property tax?
4. What city is it in? (Black Hills?)
5. When is the yearly rally?
6. In the 25+ years, did you pay any additional fee/special assessment etc
7. When you stay there, do they charge you any fees? clean up fee etc?
8. What is the time share called so I can see what its currently selling for?

Rich Salvini
1 year ago

Here’s how to fix this: I attempted to transfer title to an uncollectable brother in law. The TS company has last right to purchase…and they excercised it; paying me 50% of the current value (80% of what I paid). The biggest fear for a TS is deeded ownership by a non-caring uncolectable deadbeat. They’d rather resell and keep collecting mtc fees than go through foreclosure

Michael
1 year ago

I own with Hilton Grand Vacations and we’re not stuck at the same place every year, we have points and can go to over 100 different countries BY THE DAY! All depends on who you buy from, they are not all bad.

Mags
Reply to  Michael
1 year ago

Yelp I bought from Fairfield and i was grandfathered into Wyndham bought at rock bottom prices Love it best investment for AMD my family

Eric
1 year ago

This article is extremely far off base and so misleading. Are you trying to do which is extremely up to you and fine is to scare people so they’ll call you and get your freaking travel letter and then you’ll do a nice little transfer and if you’re talking about.

You trying to generate yourself business and money cuz you’re not in really think of him are at really knew the case but you’re doing more than likely it’s especially Colorado unit you probably a charging him to transfer it out of the name and probably Marriott has some deal where you’re not having to pay some transfer fees are giving it back to him or you’re probably if somebody is buying them from you especially if it’s Colorado ski-in ski-out bunch of b******* as usual

George Hamilton
1 year ago

Yes… great info.

Debbo
1 year ago

We own a Marriott TS in Oahu. We were traveling to this resort every year for over 5 years so buying was a good option. We love the property there and consider it a 2nd home of sorts. We’ve owned SFR 2nd homes and this was a far cheaper option. I get that people don’t use theirs, but not the case with us. We use every single week of the 3 we own in Hawaii. Its not for every one but it works for us.

Paul
1 year ago

We have an every other year mountain view, 2 bed TS in Oahu. The place is absolutely impressive. It has been owned for 10 years.
We thought of selling it last year. It was purchased at a 25% discount in 2008 recession, hence it was thought to be a good deal.
The deeded property is worth 25% of what we paid. Couple that we annual mainteance fees that escalated from 850 to now 1200 it is proving to be a bad decision.
One would be better off to invest the principal and maintenance fees and shop vacations when they are ready. Time share is like being in a bad marriage with 2 weeks of bliss every other year. If one really wants a TS shop the secondary market. FYI – the 25% value was offered by the secondary market. The folks we purchased the TS from actually offered about 4 cents on the dollar. A deeded property in Hawaii is about the best one can get. What would a TS be worth in most other places would really disappoint?

Kas
Reply to  Paul
1 year ago

I own a timeshare and regret the day I purchased in Florida. Two years now and everyday i ask what the heck was I thinking. The money i pay per month. I could save and go on a vacation on my own each year. Its simply a waste of money. Like pouring your money in a bottomless barrel. The $1600 a year that i make in fees and loan is just not worth it. As i stated i could pay for my own vacation to whereever i decide to go, not to a selected controlled location.

Eric
Reply to  Kas
1 year ago

If you were to stay in the same quality places is that Marietta offers as an example not saying that you can’t afford to pay for them. You looking at maybe 1500 to $2,800 a night some of the more valuable places that they have beachfront Hawaii ski-in ski-out resorts but it’s not saying that you can’t afford to stay in those places and can’t afford to stand those places. People wanting to insure themselves that they can go and have some sort of opportunity to look forward to and they will go if they own it more than likely than if they don’t. And people that spend time together and go on vacations and have those memories to back on . I don’t think they were buying it is any type of intentions of like looking for a return on investment

Pam Howard
Reply to  Kas
1 year ago

You can unload that time share to Resort Resale I don’t have the #. We got out of maintenance fees & hurricane damage plus all other cost. Just please tell them I referred you. Good luck.

Eric
Reply to  Pam Howard
1 year ago

Absolutely if you talk to timeshare owners that own at Marriott Hyatt Hilton.

People don’t buy those products and worry about the maintenance fee and if they do is like looking at an RV and asking what’s the gas mileage that would be a pretty stupid thing to ask the salesman