ILX maintenance fees went up 50%

[aksteele13 Junior Member Find all posts View Profile Close aksteele13]

We have been owners of a one bedroom with ILX in Sedona for more than ten years with no issues. They did file bankruptcy, but we were assured business as usual..until our bill for the yearly fees came. Last year it was $635. For 2011? $922.00!!!! No way can we afford this. The accompanying letter explained that the reasons for the jump include so many people defaulting on their fees, and that ILX was a cruddy money manager and was 6million in debt when they filed. That SOMEONE had to take up the extra!

How exactly is this legal, let alone fair?? We must pay for the mismanagement of others' money? This becomes my burden now?

We just want out. And I'm finding now that selling this thing, even for a dollar, is going to be near impossible.

PLEASE, oh Gurus of Timeshares...tell me what we need to do. Are our only choices to pay the thousand bucks that we can't afford, or default on the fees and ruin our credit for life? *I* didn't file bankruptcy...why must I take the responsibility for their irresponsibility?

I have since become unemployed, and the TS was already a luxury. Now it's a necessity that we be rid of it. HELP??

[dcwojo Senior Member Find all posts View Profile Close dcwojo]

Diamond strikes again with very high maitenance fees

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

Diamond strikes again with very high maitenance fees

Or was it a failed timeshare company, much like Sunterra, that strikes again. Not that this helps the OP.

To the original question I'm not certain there is a lot you can do other than contact the HOA/BOD for your resort to voice your concerns and displeasure. I'm not sure about DRI's wisdom with increasing fee's so drastically as this will only encourage more owners to walk away, leaving DRI with a resort full of weeks they'll need to foreclose on and further increase expenses that they'll likely have to pick up. While I have no doubt that MF increases are necessary to bring this resort up to DRI standards, hitting owners so hard so fast may be counter productive.

Short of protesting with the HOA/BOD, who should be the ones setting the fee's the only other thing I know would be do default and allow foreclosure on the unit. I don't ordinarily support walking but, a 50% increase in MF's is impossible to budget in good economic times let along poor economic times. We do reasonably well but, if all the timeshares we owned jacked their fee's by 50%, I'd be in serious trouble and would be giving defaulting serious consideration.

It will ding your credit but, it won't ruin your credit forever. You'll take a hit on this as a bad debt write off but, you also have the opportunity to put an explanation on your credit report explaining your side of the story. If you can maintain all your other payments, it won't kill you and, it will be something that you can overcome in a few years.

[dcwojo Senior Member Find all posts View Profile Close dcwojo]

I own with Diamond and a few other companies and Diamond's maintenance fees are consistantly higher than the others for comparable quality. The customer service they provide is constantly subpar as well.

[PortableTech Member Find all posts View Profile Close PortableTech]

I was actually at a Diamond presentation at Grand Beach in Orlando, FL (We traded into here for a week) and learned a little about their Maintenance Fee structure.

After listening to them tell us how they were the best company around because they had no annual fees, no reservation fees, no change fees, no nothing fees, etc, they went into their maintenance fees which were broke out on a chart. It was interesting to see how the more points you owned, the better your cpp in Maintenance Fees was.

After a bit of digging, I was able to learn how maintenance fees are calculated. There is a common cost per point of around $0.115 (ish, do not remember exactly) and a base fee of about $450.00. This is where I kinda did an ahhh moments, and asked them how this was different than an annual fee, and much higher than most resorts. They obviously had no good answer. In the end they get away with no fees for anything by charging this larger base fee and hiding it in their maintained fee calculations.

I would imagine if they took over your resort, it is not so much that they raised your fees, as they converted you over to the fee structure, which I am told is a common fee structure for all DRI resorts. Let me know if the supposed number of points you have seems to roughly fit the formula I put above.

-- PortableTech

[Spence Super Moderator Find all posts View Profile Close Spence]

I was actually at a Diamond presentation at Grand Beach in Orlando, FL (We traded into here for a week) and learned a little about their Maintenance Fee structure.

After listening to them tell us how they were the best company around because they had no annual fees, no reservation fees, no change fees, no nothing fees, etc, they went into their maintenance fees which were broke out on a chart. It was interesting to see how the more points you owned, the better your cpp in Maintenance Fees was.

After a bit of digging, I was able to learn how maintenance fees are calculated. There is a common cost per point of around $0.115 (ish, do not remember exactly) and a base fee of about $450.00. This is where I kinda did an ahhh moments, and asked them how this was different than an annual fee, and much higher than most resorts. They obviously had no good answer. In the end they get away with no fees for anything by charging this larger base fee and hiding it in their maintained fee calculations.

I would imagine if they took over your resort, it is not so much that they raised your fees, as they converted you over to the fee structure, which I am told is a common fee structure for all DRI resorts. Let me know if the supposed number of points you have seems to roughly fit the formula I put above.

-- PortableTech

Just because DRI took over the resort does not mean that you become part of their points system. That conversion has a fee associated with it. The ILX owner does not have the fee structure you discussed that goes with the points system until they convert, DRI may offer to convert them at no or low cost during a certain period. Their maintenance fee went up because 1) the resort was being underfunded all along 2) prior poor management results in delinquencies which costs other owners more 3) DRI management is not cheap, only you can determine if it is too expensive for you

[PortableTech Member Find all posts View Profile Close PortableTech]

Good point, though it does make me curious, have you asked DRI what your MF would be under their point system? Kinda curious to see how much of a change if any there is.

I am not trying to say he was part of their points system, but I wondered if DRI basically set the MF at what it would have been had he converted to points, ie, 1BR is 1BR regardless of weeks/points.

Perhaps they also look at it that by raising the Weeks MF, they can make their points look better rather than trying to sell points conversions to everyone and then explain why it costs so much more in MF.

These are all just speculations, take them for what they are worth.

-- PortableTech

[RandyCalifornia Junior Member Find all posts View Profile Close RandyCalifornia]

50% ILX MF dues increase....I feel your pain!

I am also a ILX PVC Silver (one bedroom) owner who was shocked by the huge increase in MF after DRI took over management of PVC. I attended an Owners Meeting (infomertial) by DRI in Scottsdale last week. The good news is that I am "grand fathered" (bought in 2005) in meaning I can reserve a 1 bedroom anywhere in the PVC Collection any time of the year regardless of the "points" they assign to that property. Of course, "availability" only remains to be seen. The extra $134 gets you access to another 13 properties in what the call the PVC Collection.

DRI also talked of many upgrades to properties (pools, tiling, flat screen tv's, new mattresses, coffee pots, and IPOD docks). Also mentioned was allocations/reserves for bad debt expense. I still have to wonder if the budget needed to jump $4M for these upgrades.

I anticipate that we will have to pay an additional $134 next year if you want to stay a part of their PVC Collection (total of $268/year) if you want the opportunity to go to one of their 13 sites in addition to the original ILX PVC sites. You'll still have to pay for your I.I. membership and their booking fees if you want that opportunity.

I asked why the extra $4M in the budget wasn't spread evenly throughout the 350K or 450K DRI membership ($10.00 per member). Patrick Duffey, Chief Experience Officer - (seriously, that is his title) DRI, writes "Diamond Resorts International members bear no financial responsibility to ILX…DRI did not buy ILX…ILX is still in business. We (DRM) acquired the rights to manage, and certain developer rights, but did not BUY ILX. Hence, DRI members are not responsible."

What really concerns me is the notation in the 2011 budget that $6.5M in Developer Contribution (income) is "temporary". If DRI (or ILX) pulls the plug on that MFs for 2012 could go up ANOTHER 25%! As in $1250 + $268 PVC Club membership. I spoke with Linda Riddle, VP Association Administration (who presented the budget and facilities upgrade plans) after the meeting. She "assures" me that those funds will be there next year and that we won't see another big increase in MF. We've heard all kinds of promises before so I think we would be naive to think fees are not going up in 2012.

Getting to your question about how to get out.......The DRI Rep from the Legal Dept. told me they were handling about 100 Membership "exchanges" (a week or month?) so there must be a way out. I can tell you they are not "taking back" property. I know TimeShare Resales do not work when your property is worthless (we didn't buy Marriott, after all). I have seen some "charities" that will take your deed off your hands (for a fee) where you can quit claim your property to them and take the loss of your investment as a tax deduction. But, you have to have your MF paid for the year and they take the week you've just paid for. You'll also have to pay DRI about $250 for some paperwork. I was told by the DRI Rep that they will waive FROF if you are donating to a Charity. So, IF you can find a Charity to take your TimeShare, all told your spending about $3500 to get out of your Timeshare.

I too would be thrilled to learn another way out.....Let me know if you find one.

In retrospect, I think I can find better vacation deals on Kayak. Of course, we all know we can rent the same time share for less that our annual fees (just don't go to a a 90 minute presentation when you do!).

Probably not what you wanted to hear...I've been agonizing over this all month too.

RandyCalifornia

[aksteele13 Junior Member Find all posts View Profile Close aksteele13]

thanks for the info

I believe we have found a buyer through these forums, which is great. If someone is a TS user, they will get a great deal from this one. But we just don't use it.

Using a company such as buyback timeshare, you will spend $5K to sell it to them. I sat through a webinar and talked with a rep and got that far before deciding to try another route.

Doing a quitclaim deed with a private title company is going to cost us about $475. Our buyer has generously agreed to split that cost with us. DRI tells us we owe them $295 to do a title transfer, though they are doing NOTHING to help us with this transaction. When I called them, they pretty much said they wouldn't take it back and we were hosed. :/

I'm just angry that we owners are catching the brunt of the bad decision making on the part of ILX. I'm hoping that DRI will, after the takeover, improve things and perhaps be better at customer service to you guys. We just need to cut our losses and be done because it's a financial burden to us now that I"m not working. Keep us updated as you go....

[RandyCalifornia Junior Member Find all posts View Profile Close RandyCalifornia]

ILX/DRI timeshares

Congrats to you, aksteele13, on finding a Buyer for your ILX/PVCC/DRI TimeShare! Please let me know if it was this Forum or another where you found your Buyer.

If anyone out there wants a One Bedroom, Silver, annual membership to DRI (6000 pts) please feel free to contact me with a private message (is that possible on this forum?).

RandyCalifornia

[gravityrules Member Find all posts View Profile Close gravityrules]

What makes DRI different than Festiva? Not much

I'm surprised to see anyone here 'defending DRI's honor'. They, like Festiva, are the vultures of the timeshare development world. Why go to all the trouble to build resorts when the court system allows you to steal them and make the owners pay you for the trouble? Better yet, soak the owners for years to come with arbitrary high maintenance fees. One of the questions you will not find answered is who legitimately represented the owner's interest in the court proceedings? Many owners are likely to say they would have been better off with a liquidation.

We exchanged into one of ILX's properties (Bell Rock) in 2008. It appeared to be well maintained with no visible issues of deferred maintenance.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

If companies would manage their finances better, DRI or Festiva wouldn't have anything to buy. If Sunterra and ILX hadn't gone bankrupt, DRI would still be managing Polo Towers and we wouldn't be having this conversation.

It's not DRI or Festiva that creates this atmosphere of buying exsisting resorts but the financial mismanagement of the companies the continue to fail.

DRI has not got everything they've gone after. Bluegreen managed to slip through their hands when the market collapsed. Otherwise they'd be considerably larger than they are right now.

[Carlos Senior Member Find all posts View Profile Close Carlos]

DRI Does Make Changes

I am not here to defend but I have to call it as I see it. I came into the DRI system because I originally bought with Epic Resorts who were then taken over by Sunterra. When Sunterra took over much was promised. The Epic resorts continued to go down in the toilet. Initially, I was not happy with DRI coming in and raising the maintenance fees. I felt like I was paying Marriott prices without Marriott quality. However, I began to go to different DRI properties and noticed improvements. I have stayed at the Grand Beach, Cypress Pointe (which I know is not managed by DRI but it is in their system), Marquis Villas in Palm Springs, The Point at Poipu and Kaanapali Beach Club in Hawaii. I liked each of these resorts and my stays there. They are centrally located in their areas and the accommodations are good. No they are not Marriott quality but better than average. I stayed at the Polo Towers this summer and the friends I brought with me were very, very impressed. I enjoyed it.

I don't know what ILX properties are like. I hope they are up to at least DRI standards. If they are at Marriott standards I would be extremely happy. (I own with Marriott that is why I bring them up.)

Those of you who are owners with ILX, I will say this. First, DRI does cost and the MF's go up every year. I want to make it clear, I DON'T LIKE INCREASING MAINTENANCE FEES. That has been my only problem with DRI. A few years back when DRI raised fees in big amounts for a couple of years in a row, this forum was laden with complaints regularly. I have noticed that there are not many complaints any more. Then the complaints were not only about the fees, but also included issues with the reservation system, availability of resorts and quality of resorts. Now I see few complaints on DRI on this site or TUG. In fact, the main complaints now are from those at the Royal Palms on St. Marteen and the UK owners.

I do like being able to stay at many places all over the world and not always having to pay exchange fees. I like the many choices I have to stay. When I first started timesharing over 10 years ago with Epic they only had about 10 resorts. With DRI we have well over 100 choices of places to stay. I like the options with points. When I stayed in Hawaii, it was so much easier to stay two weeks one in Maui and one at my Ko Olina property. It was nice to have reservations flexibility with my air fare dates because of the points system. I like having the flexibility of a resort type of facility in the middle of everything or a more quiet apartment type facility like the Desert Paradise Resort.

I love the opportunity to use all of my points and not leaving any left over by using them for airline miles or other DRI partner services. This way I use them all and not lose them. I make sure I get my money's worth. I like being able to save points with my upgrading opportunities. I have a big family and I like sharing my team with the in laws and my adult children. I own 30,000 points so I love being able to use them to their fullest.

I love that DRI listens as well. Of course, we would like them to listen louder with the maintenace fee increases, but heck none of the developers do. They listened when we had concerns on with the online reservation system and added features that I saw members request. They listened when members wanted reservations to be American citizens as opposed to outsiders in India. They listened when we complained about paying for the use of the internet. They listened when we said there should be more benefits for those who showed more loyalty and were Silver, Gold and Platinum members.

I also love DRI's Club Select component. I can get an additional 12000 points for my Ko Olina timeshare each year I turn the use of it to DRI members. That allows me to stay in resorts longer if I want to. Depending on where I go and what I want to do I can stay in timeshares and travel for 5 months for the cost of my maintenance fees which are not even 4000 with DRI.

I also love that I can use my points with Interval International and get good deals. I have stayed at Marriott properties with my DRI points through II. (Although that may change with Marriott's new points system).

I have said this before and I will say it again. Learn the system and use it. Read about the Club and there are benefits that you can use to your advantage. DRI can be a good thing like any other timeshare.

I have not heard too many people saying that they are having their timeshare maintenance fees reduced by their HOA's. My Marriott has gone up every year and this year has been no exception. I have not seen my DRI bill but I am sure it will go up too.

Before anyone goes there, no, I am not a salesperson or affiliated with DRI other than an owner. I got into DRI cheaply because of my Epic points, but I did add developer points (prior to my knowledge now). However, I don't regret it that much. When I am able to stay at different resorts and get 3 and four two or three bedrooms for my family to vacation at one time, it is all worth it. I love when my family is together.

ILX newbies, there could be light at the end of the tunnel. My advice is to really think about how much vacation you will need and don't overspend because you will pay for it dearly in MF's. Other than that, you will be fine. You don't have a choice being a part of DRI if you want your timeshare so look to maximize it.

That's my two cents on the topic.

[dcwojo Senior Member Find all posts View Profile Close dcwojo]

I own points with Diamond, Holiday Inn and a fixed week at Ocean Beach Club (Goldkey Resorts)in Virginia Beach. I like the flexibitiy with Diamond but itdoes not offset the high cost. My maintenance fees with the others are only about two thirds or Diamonds, while the quality of the resorts and customer service is vastly superior to Diamonds.

[Carlos Senior Member Find all posts View Profile Close Carlos]

Are they really the same?

I own points with Diamond, Holiday Inn and a fixed week at Ocean Beach Club (Goldkey Resorts)in Virginia Beach. I like the flexibitiy with Diamond but itdoes not offset the high cost. My maintenance fees with the others are only about two thirds or Diamonds, while the quality of the resorts and customer service is vastly superior to Diamonds.

I don't know much about Holiday Inn Vacation Club, but I think they only have about six resorts in the US. That means extra money on exchanges and from the locations of their resorts you have limited trading power. I am sure the MF's are good and you can probably trade through the exchange companies. If that works for you, that is great. I am not sure about the quality of the resorts you own. Have you been to DRI's Hawaii resorts, The Point at Poipu or Kaanapali Beach Club? What about Grande Beach in Orlando? Does Holiday Inn have that kind of quality? Usually they don't. We could be comparing apples and oranges.