How to cancel your timeshare purchase within seven days without penalty

Questions to Ask Your Diamond Resorts Salesperson

Questions to Ask Yourself

Hawaii State Laws Regulating Timeshares

File a complaint with Hawaii Regulators

Arizona Attorney General and Diamond Resorts $800,000 Settlement


Hawaii state law HRS 514E-8 Mutual Right to Cancel says: “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.” – HRS 514E-8

You should send your cancellation notice via registered and certified mail.

In addition to sending a valid cancellation notice under HRS-514E, you could also notify the company of the action you took by sending an email to:

It is a violation of Hawaii timeshare law to “Fail or refuse to honor any valid notice of cancellation of the contract by the purchaser and, within fifteen business days after receipt of such notice, fail or refuse to refund all payments made under the contract or sale…” HRS 514E-11.1(6)


  • 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?


  • 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?


HRS 514E-11.3 “Remedies; Sales Voidable; When and by Whom”
State law says “Every sale or transfer made in violation of this chapter shall be voidable at the election of the purchaser”.  The purchaser has the right to pursue legal action against the individual(s) who sold the timeshare in a manner that violated Hawaii law. The purchaser can sue to win back the full purchase price, interest, court costs and attorney fees.  HRS 514E-11.3

HRS 514E-11 “Prohibited Practices”
Describes specific practices timeshare sales agents are prohibited from doing.  For example, sales agents can’t tell you a timeshare is an investment or represent the resale value of your timeshare.  HRS 514E-11(5)

HRS 514E-11.1 “Deceptive Trade Practices”
Describes what would be considered unfair or deceptive practices under state law.   For example, misrepresenting the characteristics or the location(s) of the offered time share units. HRS 514E-11.1

Hawaii’s Timeshare law HRS 514E
Read the full text of Hawaii Revised Statute 514E timeshare law here: HRS 514E


You can file a complaint about your experience with Diamond Resorts by going to the following links:

Hawaii Regulated Industries Complaints Office:

Hawaii Department of Commerce and Consumer Affairs:


On December 23, 2016, the state of Arizona Attorney General announced an $800,000 settlement with Diamond Resorts Corporation to resolve allegations of the Consumer Fraud Act violations.

The state of Arizona received hundreds of complaints against Diamond Resorts.  The Arizona Attorney General reported that those complaints were about claimed deceptive sales practices, oral misrepresentations and false statements during timeshare sales presentations.  According to the Attorney General, these allegations of misrepresentation were related to:

  • Annual increases in maintenance fees;
  • Membership resale and buy-back programs;
  • Timeshare membership resale market;
  • Ability to rent timeshare vacations; and
  • Discounts on other travel needs.

Under the court-confirmed settlement, Diamond did not admit to any wrongdoing, but did agree to change its business practices and allow qualifying timeshare owners to return their timeshare interests to Diamond with no further obligations.

Over 600 Diamond customers have been released from their Diamond contracts under the Arizona settlement as of July 9, 2018.

Notably, almost 200 timeshare consumers received restitution from the $800,000 settlement paid by Diamond Resorts.