Florida Attorney General Bill McCollum continues to go after those in the timeshare resale industry who engage in questionable and - in some cases - fraudulent practices.
Among the actions is what the AG's office calls "a significant settlement that could yield as much as $1.3 million in consumer refunds" and the filing of a lawsuit against a major player in the state's timeshare resale industry.
McCollum also unveiled ongoing investigations into at least 17 timeshare companies and their affiliates throughout the state for deceptive trade practices.
"Florida's consumers are trying to make prudent financial decisions," the attorney general noted, "but many timeshare resale companies are blatantly scamming people by promising sales or refunds and failing to provide services even after taking hefty up-front fees."
Timeshare resale complaints have recently surpassed mortgage-related complaints as the most commonly reported consumer complaint received by the office's Consumer Hotline.
ConsumerAffairs.com has received a sizable number of complaints about the practices of timeshare sellers from consumers across the nation.
"In September of 2007 I paid Timeshares Only almost $600 to list my timeshare which was to be a one time fee and they would run the ad until it sold," says Shannon of Harrisburg, NC. "Well, I have not had one call regarding an offer for my timeshare although I have reduced the price a few times. I also decided to check the ad myself on the web site and could not find it. When I contacted them to ask why they told me I had to periodically 'reactivate it'. If I paid you a fee and you agreed to run the ad until it sold, I should not have to call and reactivate it! This business is a complete SCAM!"
"I was told by timeshares only they guaranteed to sell my timeshare or rent it," John from Baltimore writes ConsumerAffairs.com. "Well it's been over three years since they took my money and still not one call to sell or even rent. I was also promised that they would refund my money if I sold it before they did. Well I did sell it and still no refund either."
The lawsuit filed in Florida against Resales Buy Owner.com, Inc. contends the company engaged in a systematic pattern of deception that improperly induced consumers to pay up-front fees for timeshare resale services that were never provided.
According to consumer complaints, the company would indicate it either had a buyer or renter interested in the timeshare and that there would be no problem renting or selling the timeshare within 90 to 120 days. The lawsuit maintains the company merely advertised the property listings, if taking any action at all, and allegedly charged consumers' credit cards even after consumers opted not to do business with the company. The lawsuit seeks an order prohibiting the company from engaging in further deceptive conduct and seeks full restitution on behalf of victimized consumers, civil penalties and reimbursement for fees and costs.
McCollum's Office also announced a significant settlement with Virtual Group, Inc., resolving allegations the company failed to provide promised refunds to consumers. Virtual Group, which does business under the name Realty Trade, offered timeshare resale and rental advertising services to consumers looking to sell or lease their timeshare properties.
As a result of the investigation, Realty Trade has already paid over $800,000 in refunds to 799 consumers. The company will also make another $500,000 available to consumers who make new refund requests.
In addition to the litigation and the settlement announced today, in recent months, the Attorney General's Office has subpoenaed 17 timeshare resale companies and their affiliates over allegations of potentially deceptive business practices.
Common complaints about these companies involve the use of false and deceptive claims to entice consumers to pay up-front fees, including assertions that buyers are allegedly ready and willing to buy or rent the consumers' timeshare.
Companies also often allegedly fail to honor cancellation policies, misrepresent the actual services that will be provided to consumers, and fail to comply with elements of state and federal telemarketing acts.
The initiative was launched in 2009 in response to the growing number of timeshare resale complaints received by the Attorney General's Office.
