Luxury Reporter has highlighted several times the need for prospective and current destination club members to make sure they’re comfortable with a club’s ability to refund membership deposits if and when required.

Quintess has just wrapped up its 2006 audit, and covered this point in an update to members and prospects:

The Company engaged its auditors to analyze the Club’s membership liability coverage and they have delivered the first of our quarterly agreed-upon procedures letters. This letter essentially answers the members’ question: “If the Club ceased operations, how much of my deposit would I expect to get back?” Quintess, LRW is delighted to report that we are in excess of 110% on our contractual membership deposit liability coverage. Management believes that the Club is leading the industry in establishing the best practices for financial transparency.

As time goes on, we believe that this kind of disclosure will become more and more common, and expected, in time. Members should demand it.

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