Couple claiming bait and switch, sues Gold Key to get out of Virginia Beach timeshare deal.
A couple, Robert and Jessica Johnson of Massachusetts, claim bait and switch after being approached while walking along the Boardwalk in Virginia Beach in August 2015.
They say after they were initially approached, they were relentlessly pitched and eventually persuaded by timeshare sales people to buy a vacation ownership at the Ocean Beach Club Resort, then owned by Gold Key | PHR Hotels and Resorts.
Their issue with the purchase is that they were unaware that Gold Key had agreed to sell its timeshare business to Diamond Resorts International, Las Vegas, in a $167.5 million deal. This deal was announced 17th August 2015 and was closed 19th October 2015, but was not disclosed to them at the time of purchase.
After trying and failing to void the $25,450 timeshare contract within the seven-day cooling off period, the Johnson couple feel they have no other choice than to sue Gold Key in federal court in order to nullify their contract. They are now seeking $500,000 in damages.
When asked about the lawsuit, a spokesman representing Diamond Resorts had no comment, saying that Diamond Resort, nor any of its entities were named in it. Gold Key | PHR did not respond to comment about the lawsuit either.
The Johnsons signed the timeshare contract dated 21st August 2015 actually on 4th September and returned it back to Gold Key by 8th September. They can’t remember the exact date they were pitched but they remember the same day they returned the contract was the day they learned Diamond Resorts’ had purchased Gold Key. After researching the company they wished to cancel and sent a certified letter with the return receipt signed by Gold Key on 9th September 2015.
The lawsuit filed 1st March 2016 says Gold Key has harassed the Johnson couple with phone calls and overdue bills for the timeshare purchase that they believe they were entitled to cancel.
Gold Key and Ocean Beach Club LLC are the named defendants despite Gold Key now being owned by Diamond Resorts.
Neil Koslowe, the Johnsons’ attorney, said the couple’s correspondence has been entirely with Gold Key, including when the company mailed the deed to their timeshare recently, which he described as strange considering the sale last year.
When asked why the damages being sought after are $500,000 when the timeshare purchased was only $25,450, Koslowe said it’s a deterrent; “If you ask for $10, they won’t stop doing it,” he said.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk