Lawsuits Against Timeshare Exit Companies To Move Forward
October 1, 2019
Last week, U.S District Judge Gregory A. Presnell denied two separate requests for dismissal from timeshare exit companies facing
lawsuits filed against them by Wyndham Vacation Ownership. The suits allege that Reid Hein & Associates LLC, who does business as
Timeshare Exit Team, and Timeshare Owners Relief LLC engaged in false and misleading practices to defraud consumers of thousands of dollars in upfront fees for an exit process that never came to fruition. The Florida suits represent another step towards regulating the currently unregulated timeshare exit industry.
The timeshare exit industry
has experienced massive growth in recent years as
scammers began convincing consumers to exit their timeshares.
The Better Business Bureau has
studied these trends
and has been urging consumers to exercise caution when
considering timeshare cancellation.
Robert Clements, VP of Regulatory Affairs and General Counsel of The American
Resort Development Association (ARDA) notes, "There are no laws
that specifically regulate the practices of timeshare exit
companies or protect the large upfront fees that consumers pay
them. Even with a 100% money back guarantee, we've seen
examples of exit companies going out of business or filing for
bankruptcy resulting in consumers losing the money they paid in
advance. Without action by regulators, state attorneys general
or law enforcement, we fear more consumers will be harmed."
While the refusal to dismiss is certainly a step in the
right direction, it remains critical for timeshare consumers
who believe they have been a victim of timeshare exit fraud to
report it to the state attorney general, their local
office, or local law enforcement. Timeshare owners should also
educate themselves on the common tactics used by
Calls or emails claiming to have a buyer already lined up
Callers claiming to be affiliated with ARDA
Companies promising to cancel or transfer a consumer's timeshare for a large upfront fee
Companies asking for an upfront fee or wire transfer for a service, tax, or requirement related to the sale or transfer of a timeshare
Consumers interested in exiting their unwanted timeshare should always contact their timeshare company first and review
for exiting a timeshare responsibly.
to read more from our source.