Hawaii – Timeshare Know Your Rights

Cancellation Period is at least seven days from purchase contract or receipt of required documents whichever is later.

  • See Hawaii’s timeshare contract cancellation procedure here.
  • Follow the process carefully and document your actions (ex: use certified mail).
  • Legal remedies to void or recover damages for illegal timeshare sales (see HRS 514E-11.3).

HRS 514E-8 states in part: “Within seven calendar days after the execution of the contract to purchase an interest in a time share plan, or within seven calendar days after the purchaser’s receipt of a disclosure statement required by this chapter, whichever occurs later, either party may cancel the contract without penalty by mailing or delivering a notice of cancellation to the other party at an address specified on the contract.  The notice of cancellation shall be effective upon mailing or delivery to the other party at the address specified on the contract.”

Arbitration opt-out: Review your purchase agreement to see if you can opt-out of arbitration. If you opt-out of an arbitration clause, you’ll have the option to file legal action in court against the company if it wrongs you, including possible jury trials or class action lawsuits. Follow the process and timeline carefully, use certified mail and keep records of your actions.

File a consumer complaint

  • File a Hawaii complaint against a timeshare here.
  • File a complaint with the Federal Trade Commission here.

Hawaii timeshare law

Read Hawaii’s timeshare laws here (Hawaii Revised Statutes 514E). Or read the Hawaii Dept. of Commerce and Consumer Affairs FAQ brochure here.

 QUESTIONS TO ASK YOURSELF

  • Wouldn’t it be cheaper, less complicated and more flexible to pay cash and use online travel sites for my vacation plans?
  • What benefits are there to timeshares with locked-in yearly mandatory fees, limited resort networks, initiation fees, and program rules restrictions?
  • Is my Diamond timeshare membership and yearly maintenance fee obligation life-long?
  • What if I want to get out? Are there viable options to get rid of a timeshare financial obligation?
  • Did I comparison shop before committing to such a long-term financial obligation? Could Hilton, Marriott, RCI, ILG or Wyndham provide better timeshare deals?
  • Why are sales presentation used to sell timeshares?
  • How much am I really paying for a vacation if I include ALL the costs, taxes, fees and loan interests applicable to my Diamond membership?
  • If there is a special assessment fee and I can’t afford to pay it, what can I do?
  • What’s the cash equivalent conversion rate of my Diamond points for room nights, maintenance fees or other travel purchases like flights, cruises or car rentals?

QUESTIONS TO ASK YOUR DIAMOND RESORTS SALESPERSON

  • Will you put your oral promises and representations to me in writing?
  • What’s the difference between Diamond’s right-to-use points vs. deeded real estate timeshare?
  • How much will I pay annually in maintenance fees, taxes, club fees, interest expense and other costs?
  • Will I be able to access and use the Diamond reservation system within 7 days after signing the contract?
  • Which Diamond “Collection” am I buying into and can I use my points at resorts outside my Collection without extra cost or procedure?
  • What’s the maximum annual percentage increase of maintenance fees allowed for my timeshare?
  • Are there Diamond “loyalty levels”? If so, which would I be eligible for?
    • What are the benefits and restrictions for each loyalty level?
    • If my loyalty level doesn’t include a benefit you represented to me, what do I have to do to get it?
  • If I use points to pay yearly maintenance fees, what is the exchange rate of points to cash?
  • THE Sampler: is there down payment, waiting period, stay requirement or other restrictions?
  • If I want to rollover unused points year to year, are there lead-time restrictions or cost? Is it automatic?
  • If I’m allowed to use Diamond points to book flights, cruises or rental cars, is it cheaper than paying cash?
  • Will I be able to refinance my Diamond loan with a loan from a lender? What if I try but the banks refuse? How does Diamond’s finance interest rate compare to current market rate?
  • What is the foreclosure rate of Diamond timeshare owners’ interest or loans?
    • How many of the foreclosures are bought and resold by Diamond?
  • Does Diamond allow me to advertise and rent my timeshare for cash to the public if I’m not using it for myself?
  • Can I leave the sales presentation after I fulfilled my minimum time obligation?