My wife and I have ownership interests in the Flamingo Beach Resort and the Flamingo Beach Villas in Sint Maarten. These properties were acquired last year by Diamond Resorts International.
When we purchased the time share weeks the initial Maintenance Fees were set in the contract but the contracts were mute with regard to inflation but we were assured that the rates would follow the local inflation rates in St Marten. We have just received our invoice for this year and find that our fees have increased 34% and 42% respectively. When I expressed concern over the increase to Diamond Resorts International I was told to "get a lawyer".
If we do not pay the fees we forfeit the properties and our initial investments. We feel that the increase is unconscionable and intended to force owners to abandon their investment so that the properties can be resold.
We understand that a class action suit is being mobilized by a local law firm in Sint Maarten on behalf of owners to address the Maintenance fee increases and the purported use of capital reserves to pay debts. We have also contacted the Attorney General for our state. It is hard to imagine that firms like Diamond Resorts International can operate in such a heavy handed way.
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