Diamond Resorts; a member of the TATOC association, and The State of Arizona have entered into a settlement agreement with Diamond Resorts Corporation, which is a timeshare sales company with resorts located worldwide including the United States.
The declaration of discontinuance entails Diamond to recompense the State a total of $800,000, of which $650,000 will be used for consumer compensation. The remaining $150,000 will be used for the State’s attorneys’ fees and costs.
The agreement also includes a relinquishment program. Qualifying consumers, who no longer require their timeshares, can return them to Diamond with no further obligations.
The relinquishment program will be obtainable to qualifying consumers only who no longer want their Diamond Resorts timeshares. Consumers who are qualified for the relinquishment program, must no longer want their Diamond timeshare, to have purchased their timeshare after 2011 and prior to January 22, 2017, and must file a complaint with the Attorney General’s Office within 120 days after the court signs the order (the deadline is anticipated to transpire towards the end of April/beginning of May).
The State has received hundreds of consumer complaints against Diamond Resorts. Such complaints were that Diamond use misleading sales pitches making numerous verbal misrepresentations and untruthful declarations during their timeshare sales presentations. Amongst some of the alleged misrepresentations where, the actual facts with regards to the annual increases in maintenance fees, membership resale and buy-back programs, timeshare membership resale market, the ability to rent timeshare vacations and discounts on other travel needs to name only but a few.
The Arizona Attorney General’s Office alleged that Diamond employees’ actions and statements violated the Arizona Consumer Fraud Act.
Under the agreement, which is subject to court approval and the signature of a judge, Diamond Resorts have agreed to alter their presentations and practices when presenting their services, to which this will benefit consumers, including requirements to make detailed admissions during timeshare sales presentations.
If you believe you have been the victim of consumer fraud, we at TCA would like to hear from you alternatively consumers can also file complaints online by visiting the Attorney General’s website at https://www.azag.gov/complaints/consumer.
Posted on: January 13, 2017
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 0203 519 3808 or email: info@TimeshareConsumerAssociation.org.uk