Diamond Resorts backs judgement to protect timeshare owners
Global vacation ownership company Diamond Resorts has applauded Washington State Attorney General Bob Ferguson for protecting US timeshare owners from unscrupulous exit companies.
Last month Ferguson announced his office had filed a lawsuit against Timeshare Exit Team and defendants Brandon Reed and Trevor Hein, alleging the company violated the Consumer Protection Act, the Debt Adjusting Act and the Credit Services Organization Act with “unfair and deceptive conduct in the marketing and sale of timeshare ‘exit’ services offered to consumers across the United States and Canada”.
“Since 2012 Defendants have unfairly and deceptively contracted with more than 32,000 consumers looking to be rid of their unwanted timeshares and have collected millions of dollars in upfront fees from consumers in the process,” the lawsuit reads.
In Washington state alone, more than 2,500 consumers have fallen victim to Timeshare Exit Team’s fraudulent practices according to the lawsuit.
Key allegations in the lawsuit allege:
- “Virtually every aspect of Defendants’ operation is deceptive and/or unfair in violation of the Consumer Protection Act (CPA)”
- More than half of Timeshare Exit Team’s more than 32,000 contracted customers are still waiting for resolutions – more than 4,600 have been waiting for three years or more
- Timeshare Exit Team spends about $1 million each month on advertising to new customers, “despite having yet to deliver services for nearly 15,000 pending customers”
- Many of the “exits” the company claims as success are “legally invalid, damaging, and/or not as-advertised to customers – or are never delivered at all”
Mike Flaskey, CEO of Diamond Resorts, said: “We applaud Attorney General Ferguson for taking a strong stance against these fraudulent companies.
“We’ve known about this deceptive scheme for years. That’s why we have also filed lawsuits against Timeshare Exit Team and other similar companies to stop them from victimising our members.
“These so-called ‘timeshare exit companies’ take advantage of people by charging massive upfront fees and then don’t deliver anything in return. We’re pleased to see the state of Washington lead the fight here.”
Diamond Resorts encourages timeshare owners who may be interested in modifying or exiting their contracts to their developer for options.
To learn more about red flags and report possible fraudulent third-party exit activity, visit TimeshareCancellationAwareness.com