January 3, 2024
A common complaint reported by timeshare members, industry-wide, is being told it is easy to rent out a timeshare to cover costs. Renting to offset costs is unfeasible for the average timeshare owner, so those who counted on renting can find themselves with little choice but to default. Bluegreen Vacations is one of ten Developers with members that have reached out to us to report how they were sold points to rent to cover costs, or to generate investment income. Other Developers include Westgate Resorts, Vacation Village, Club Exploria, Branson’s Nantucket, Tahiti Village (Soleil Management), Diamond Resorts, and Wyndham. Two additional resorts resolved rental disputes.
By Irene Parker
Ashley’s unfair Bluegreen account suspension falsely accused of renting for commercial purposes:
https://tarda.org/blog/38-timeshare-companies/169-bluegreen-vacations-suspend-hundreds-of-accounts
Some members reported that they were told renting would generate income. Selling a timeshare as a rental opportunity is illegal in Florida.
Some members reported that their sales agents provided names and companies that would help them rent. One such firm Bluegeen members said they were referred to, is Timeshare Listing Service, LLC., (currently listed as inactive)
https://www.floridareg.com/company/L20000392371/timeshare-listing-service-llc
We appreciate those who work in the timeshare industry not afraid to speak up when they feel timeshare consumers are being treated unfairly or deceptively. Denise Mecke was hired by Bluegreen in 2002 and worked for the resort until she was terminated in 2022. She reported violations through the proper chain of command, but nothing happened.
As with timeshare buyer contracts, ironclad employment agreements force pre-dispute arbitration. A lawsuit is publicly filed. Arbitration is private and binding, and arguably pro-industry. Evidence is the Military Lending Act prohibits arbitration. Bluegreen filed a motion granted to compel arbitration.
Arbitration according to PUBLICCITIZEN:
In addition to the denial of consumers’ and employees’ rights to seek remedies in court, arbitration between two parties with unequal bargaining power is too often a discriminatory and one-sided process, benefiting the corporations mandating it.
https://www.citizen.org/article/mandatory-arbitration-clauses-are-discriminatory-and-unfair/
From Denise Mecke v. Bluegreen Vacations Corporation and Bluegreen Vacations, Unlimited, Inc., case 6:23-cv-03047-MDH:
In September 2010, certain sales representatives (employees) were advising timeshare owners on renting points online which violated Bluegreen policies.
Repeated violations included referring timeshare owners to an independent rental company owned by a friend of the group to rent their timeshare, or promising potential timeshare owners guaranteed buy-backs, and return on investment and also guaranteeing potential owners lower financing rates through referrals to external third-party finance companies.
In 2015 Ms. Mecke was promoted to In House sales manager. In October of 2020, Ms. Mecke became aware of a sales representative “pitching rental income” and reported the violation to Inhouse Sales Director Coen, then escalated the report to Coen’s supervisor, General Manager Howard Kitchen. No action was taken.
Coen was one of five members of a team called the “SWAT” team due to their high volume sales, described amongst the employees as the “hostile takeover” of the sales force. Kitchen ultimately moved all the SWAT team members but Coen to another location, promoting one to a supervisory position.
While on medical leave in December of 2020, Ms. Mecke was contacted by sales representatives and other managers, including Defendant Cox, regarding deceptive practices.
After returning from medical leave in February of 2021, on Ms Mecke’s first day back, Coen requested a private meeting. During the meeting, he asked if she was “on the bus” which she took to mean, would she go along with the tactics used to sell timeshare points? She confirmed her loyalty. Coen demoted her to sales representative. Coen was in daily contact with Dusty Tonkin, VP of Sales at Bluegreen corporate.
Following Ms Mecke’s reports of ethics violations, on March 21, 2021, the five SWAT team members were fired.
Other named defendants named in Ms. Mecke’s lawsuit complaint include Branson employees Russell Cox, Heather Pilkinton (Nixa), Kathy Jo Conque, Lynn Brown (Hollister) and Bluegreen corporate employees Susan Saturday, Executive VP, Chief Administrative Officer, and Yolanda Armalin.
On January 2, 2022, Mecke reported to Cox that multiple representatives were upset after seeing Brooke Piazza and her team “pitching rental” to potential timeshare owners to persuade them to purchase and then rent out their points. Piazza’s team was outselling other teams based on these deceptive sales practices which was causing conflicts among the employees. Cox told Mecke to “quit self-policing” and advised her team to stop reporting Pianna’s behavior to Mecke. Cox moved Piazza and her team away from other sales representatives so their pitches could not be heard.
Cox responded that Bluegreen need not be concerned about lawsuits because sales representatives sign agreements agreeing to not use deceptive sales practices, and timeshare buyers sign purchase agreements saying they were not subject to these sales practices.
Mecke began making authorized recordings documenting deceptive practices. She was advised to ship her recordings to Bluegreen’s corporate office and was told she would be reimbursed for FedX charges. As instructed, she sent the recordings to Yolanda Armalin for review.
On August 3, 2022, Piazza contacted Mecke crying and yelling to confront her because she had been fired because of the recordings.
On August 4, 2022, Bluegreen terminated Mecke. She was accused of covertly recording representatives, even though all employees executed a Consent to Record and Mecke was instructed by Conque to record unlawful sales pitches. She received communications from Amalin and Saturday in June 2022 thanking her for the records and for bringing this situation to their attention. On September 15, 2022, Amalin provided Mecke with reimbursement for her shipping costs.
Ms. Mecke was offered $67,000 in exchange for Bluegreen’s receipt of a Confidential Separation Agreement and General Release of all Claims. Mecke declined the offer.
As of the date of the complaint filing, members of Piazza’s team were still employed. Coen was later rehired.
The License to Lie Clause
What Mr. Cox referred to above is the overworked “oral representation clause” buried in fine print. Buyers unwittingly acknowledge that they did not rely on claims made by sales agents. Timeshare law should be amended to make this critical disclosure at, or prior to a presentation, rather than buried in fine print. The clause is also called the non-reliance clause as attorney Michael Finn explains in this article:
https://tarda.org/blog/41-experts/198-why-the-non-reliance-clause-is-unfair-in-timeshare-sales
Bluegreen is to be acquired by Hilton Grand Vacations (HGV). In 2021, HGV acquired Diamond Resorts. Diamond’s rules prohibit renting to anyone not known to the member or through the use of a third-party rental platform. Perhaps Bluegreen’s relentless suspensions were dictated by Hilton to conform to Diamond’s rules.
Like Ashley, a single mom with a severely medically compromised five-year-old, who had to rely on friends and family to offset maintenance fees, several Bluegreen members reached out to us insisting they only allowed friends and family to use their weeks or points and never used a third-party platform.
Whistleblowers of America
https://www.whistleblowersofamerica.org/