Timeshare News


February 18, 2020
Timeshare Exit Scams
What's the story?
Timeshare exit firms are facing off in a recent lawsuit from Wesley Financial Group (WFG). The Nashville-based timeshare cancellation firm is claiming misuse and unlawful exchange of confidential client information and company trade secrets by multiple industry competitors and individuals previously employed with the company. The lawsuit (case number 2019-662) was filed in the Circuit Court for Williamson County, Tennessee.

Following an internal investigation prompted by shared information from existing and prospective clients, WFG claims that one or two former employees and the managing members of four competing firms intentionally obtained and misused proprietary and confidential data without the company's knowledge. The data includes trade secrets and current and prospective client information. WFG states in its allegations that "potential customer leads are the lifeblood of the Timeshare Cancellation Industry."

The lawsuit notes a former WFG employee entered into a Non-Disclosure/Non-Compete agreement upon employment, but following separation with the company, began employment with an industry competitor. Both the former WFG employee and the competing exit firm are listed as defendants in the suit. According to provided company policies, existing and prospective WFG clients offer their contact information to the company on a confidential basis. Several of these clients informed WFG that competing firms contacted them "offering similar services at discounted pricing," but claimed to have never given their contact information to these firms. The clients also stated that the competing firms were aware that they were in communication with WFG.

Why does it matter?
While the claims that Wesley Financial Group has made against its competitors and former employees have not yet been substantiated, several facts have been brought to attention through these allegations. Notably, BBB records indicate a "Pattern of Complaints" associated with defendant Helping Timeshare Owners, Inc., specifically regarding "failure to return calls in a timely manner and that as a result of the cancellation process, consumers now have a delinquency, repossession or foreclosure on their credit record."

Helping Timeshare Owners, Inc. was not the only defendant with a notable BBB file. As of November 1, 2018, Help 4 Timeshare Owners had not responded to the BBB's requests for "substantiation of advertised claims" and multiple other articles of corporate documentation, according to the company's BBB profile.

With the complaint issuance date of only December 23, 2019, there is still information to be uncovered regarding the allegations WFG has made against the exit firms and individuals included as defendants. At this time, the defendants have not responded to the allegations against them.

How does it impact me?
Consumers who have contacted or hired Wesley Financial Group should closely monitor their personal information and be wary of timeshare exit scams, as the scope of the data breach is unknown. When communicating with these firms, users would be wise to document information and conversations exchanged with involved parties.

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