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
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
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
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
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.