After a regulatory agency began investigating timeshares Diamond Resorts International shares dropped by a staggering 15.5% last week.
The CFPB, Consumer Financial Protection Bureau, launched a enquiry into Westgate Resorts, one of DRIs competitors. They are allegedly probing into its sales and financing tactics. Westgate is strongly fighting having to complying with the agency’s requests.
The entire industry is experiencing examinations into its practices, which could see sales and profits suffer significantly. After the contemptuous article targeting DRI, in The New York Times earlier this year, pressure will be mounting on the investors.
Timeshare companies all over the world have notoriously been known for aggressive sales tactics and contracts that are near-impossible to get out of without legal help, that is why the CFPB is investigating the industry as a whole.
Hotel companies seem to be leading the way, providing a much more transparent sales process and far fairer contracts. With so much uncertainty around the industry, in-perpetuity contracts and and the less than welcoming sales methods, this isn’t a stock which looks to be growing in the same proportion as it’s fall rate for a long time to come, if ever.
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