2012 National VIP Timeshare Scam Update:
If you Are a Victim of a Timeshare Scam, Email The Time Share Chronicles Today with your contact information and SPECIFIC DETAILS of your situation to vip@timesharechronicles.com
A telemarketing operation that preyed on timeshare owners desperate to dump their properties was shut down after the Federal Trade Commission won a temporary restraining order in U.S. District Court in Tampa, Florida, the agency announced today.
The government alleged that tens of thousands of unsolicited calls were placed by St. Petersburg-based Vacation Property Services, Inc. and two related companies since 2006 that pitched the idea the businesses could get them buyers for their properties. In exchange for getting a promise quick sale — they said they had buyers ready to make a deal — the property owners were asked to send payments of $200 to $8,000.
Telemarketers even offer phony congratulations to the victims, the government said in court filings. When they questioned the fees, they were told they were to cover sales-related costs including a title search and processing fees.
After the payments were made, the FTC said, it became clear there were no buyers lined up. When the timeshare owners complained and asked for refunds, they were ignored or rejected, the court filings said. They led consumers to lodge hundreds of complaints against the telemarketing companies.
The FTC also charged the company with making hundreds of thousands of telemarketing calls between November 2009 and November 2010 to people registered on the national Do Not Call list — a violation of federal law.
In addition to Vacation Property Sellers, Timeshare Experts, Higher Level Marketing, (dba Vacation Property Services) as well as principals Albert M. Wilson, David S. Taylor and Frank M. Perry, Jr. were named in the court order. Wilson and the same companies were named in a series of complaints and subsequent settlements with the Florida Attorney General — in which the businesses agreed to stop the the practices the FTC cited. That was in 2007 and 2008.
These types of scams have proliferated in recent years as the timeshare resales market collapsed during the economic downturn. The FTC shut down a similar operation, Timeshare Mega Media, in the fall. That outfit was operating from a Fort Lauderdale-area boiler room that took in millions from timeshare owners.
Timeshare owners, particularly those struggling financially, became a good target for scams because they are typically on the hook for maintenance fees and money owed on the property. As they came to realize that recovering their initial investment — or even getting a substantial portion back — was difficult their vulnerability grew.
The scams aimed at the idea that not only would you free yourself of the obligation, it was even possible to make a profit — something that had seemed impossible.
“In a time of high unemployment and reduced access to credit, these twin promises can be alluring to consumers caught in difficult economic straits,” the FTC said in a statement.
The investigation into Vacation Property Services involved the U.S. Postal Inspection Service, Florida Attorney General’s office, the Florida Department of Agriculture and Consumer Services, and St. Petersburg police.
If you are approached to sell your timeshare, the FTC offers the following tips to help you avoid getting ripped off:
* Check out the reseller before agreeing to anything on the phone or online.
* Get the proposal in writing.
* Find out if the reseller has agents licensed to sell real estate where your property is located and verify that they are.
* Get specifics on how the timeshare will be marketed and how you will be updated on progress.
* Request details about fees, timing and how you can get a refund of any advance fees paid – and get that in writing.
UPDATE: FTC attorney William Maxson said: “The FTC’s complaint alleges that the defendants in this case victimized consumers from all walks of life, including a significant number of senior citizens. The FTC is cracking down on timeshare resale scammers. Timeshare resale fraud, however, remains a significant and on-going problem.
“Consumers should use extreme caution when dealing with timeshare resale companies – particularly companies that call consumers in violation of Do Not Call laws. If your phone number is on the Do Not Call Registry and you get an unsolicited call from an unknown company offering to resell or rent your timeshare, hang up and report the call to the FTC.”
THE COURT ORDER:
UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF FLORIDA
Tampa Division
FEDERAL TRADE COMMISSION,
Plaintiff,
v.
VACATION PROPERTY SERVICES, INC.;
VACATION PROPERTY SELLERS, INC. d/b/a
Timeshare Experts; HIGHER LEVEL
MARKETING, INC. d/b/a Vacation Property
Services; ALBERT M. WILSON; DAVID S.
TAYLOR and FRANK M. PERRY, JR.,
Defendants.
Case No. ____________________
COMPLAINT FOR PERMANENT
INJUNCTION & OTHER
EQUITABLE RELIEF
Injunctive Relief Sought
Filed Under Seal
The Federal Trade Commission (“FTC”) alleges as follows:
1. The FTC brings this action under Sections 13(b) and 19 of the Federal Trade
Commission Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 57b, and the Telemarketing and
Consumer Fraud and Abuse Prevention Act (“Telemarketing Act”), 15 U.S.C. §§ 6101 -
6108, to obtain temporary, preliminary, and permanent injunctive relief, rescission or
reformation of contracts, restitution, the refund of monies paid, disgorgement of ill-gotten
monies, and other equitable relief for Defendants’ acts or practices in violation of Section
5(a) of the FTC Act, 15 U.S.C. § 45(a), and in violation of the FTC’s Trade Regulation Rule
entitled “Telemarketing Sales Rule” (“TSR”), 16 C.F.R. Part 310.
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SUMMARY OF THE CASE
2. This case concerns Defendants’ telemarketing scheme that has injured
numerous timeshare property owners across the country. Defendants trick consumers into
paying large up-front fees, typically using one of two deceptive sales pitches. Defendants
represent to consumers that: (1) Defendants have buyers lined up and waiting to buy the
consumers’ timeshare properties; or (2) Defendants will find a buyer for the consumers’
timeshare properties within a short period of time. Regardless of the pitch used, Defendants
demand that consumers pay an up-front fee, ranging from $200 to more than $8,000. After
making the hefty up-front payment, consumers ultimately learn that Defendants have no
buyers lined up to purchase their timeshare properties and that no such buyers are in the
offing.
JURISDICTION AND VENUE
3. This Court has subject matter jurisdiction over this action pursuant to 28
U.S.C. §§ 1331, 1337(a) and 1345, and 15 U.S.C. §§ 45(a) and 53(b). This action arises
under 15 U.S.C. § 45(a).
4. Venue is proper in this district under 28 U.S.C. § 1391(b)-(c) and 15 U.S.C.
§ 53(b).
PLAINTIFF
5. The FTC is an independent agency of the United States government created
by statute. 15 U.S.C. §§ 41-58. The FTC is charged with, inter alia, enforcement of Section
5(a) of the FTC Act, 15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or practices
in or affecting commerce. The FTC also enforces the Telemarketing Act, 15 U.S.C. §§ 6101-
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6108. Pursuant to the Telemarketing Act, the FTC promulgated and enforces the TSR, 16
C.F.R. Part 310, which prohibits deceptive and abusive telemarketing acts or practices.
6. The FTC is authorized to initiate federal district court proceedings, by its own
attorneys, to enjoin violations of the FTC Act and the TSR, and to secure such equitable
relief as may be appropriate in each case, including rescission or reformation of contracts,
restitution, the refund of monies paid, and the disgorgement of ill-gotten monies. 15 U.S.C.
§§ 53(b), 57b, 6102(c), and 6105(b).
DEFENDANTS
7. Defendant Vacation Property Services, Inc. (“VPS”) is a Florida corporation
with its principal place of business at 7005 4th St. N., Ste. 5, St. Petersburg, FL 33703. VPS
transacts or has transacted business in this district and throughout the United States.
8. Defendant Higher Level Marketing, Inc. d/b/a Vacation Property Services
(“HLM”) is a Florida corporation with its principal place of business at 300 31st St. N., Ste.
615, St. Petersburg, FL 33713. HLM transacts or has transacted business in this district and
throughout the United States.
9. Defendant Vacation Property Sellers, Inc. d/b/a Timeshare Experts
(“Timeshare Experts”) is a Florida corporation with its principal place of business at 300 31st
St. N., Ste. 602, St. Petersburg, FL 33713. Timeshare Experts transacts or has transacted
business in this district and throughout the United States.
10. Defendant Albert M. Wilson is an officer, director and owner of VPS. At all
times material to this Complaint, Defendant Wilson has formulated, directed, controlled, had
the authority to control, or participated in, and had knowledge of, the acts and practices set
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forth in this Complaint. Defendant Wilson resides in this district and, in connection with the
matters alleged herein, transacts or has transacted business in this district and throughout the
United States.
11. Defendant David S. Taylor is a current or former officer and owner of VPS.
Defendant Taylor receives significant proceeds from VPS’s business activities. Defendant
Taylor has formulated, directed, controlled, had the authority to control, or participated in,
and had knowledge of, the acts and practices set forth in this Complaint. Defendant Taylor
resides in this district and, in connection with the matters alleged herein, transacts or has
transacted business in this district and throughout the United States.
12. Defendant Frank M. Perry, Jr. is an officer, director and owner of Timeshare
Experts and HLM. Defendant Perry also was, and may still be, an owner and manager of
VPS. At all times material to this Complaint, Defendant Perry has formulated, directed,
controlled, had the authority to control, or participated in, and had knowledge of, the acts and
practices set forth in this Complaint. Defendant Perry resides in this district and, in
connection with the matters alleged herein, transacts or has transacted business in this district
and throughout the United States.
13. Defendants VPS, HLM and Timeshare Experts (collectively, “Corporate
Defendants”) have operated as a common enterprise while engaging in the deceptive acts and
practices and other violations of law alleged below. The Defendants have conducted the
business practices described below through an interrelated network of companies that, at
various times, shared owners, employees, company logos and letterhead, business practices,
telemarketing licenses, telecommunications providers, Internet providers, expertise, customer
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testimonials, television commercials and telemarketing scripts, and have co-mingled funds in
conducting the deceptive telemarketing campaigns described in this Complaint. Because the
Corporate Defendants have operated as a common enterprise, each of them is jointly and
severally liable for the deceptive acts and practices and violations of law alleged below.
14. Individual Defendants Wilson, Perry and Taylor have formulated, directed,
controlled, had the authority to control, or participated in, and had knowledge of, the acts and
practices of the Corporate Defendants that constitute the common enterprise.
15. At all times material to this Complaint, Defendants have maintained a
substantial course of trade in or affecting commerce, as “commerce” is defined in Section 4
of the FTC Act, 15 U.S.C. § 44.
DEFENDANTS’ BUSINESS ACTIVITIES
Defendants’ Deceptive Sales Practices
16. Since at least 2006, and continuing thereafter, Defendants have engaged in a
plan, program, or campaign to deceptively advertise, market, promote, offer for sale, or sell
timeshare resale services through interstate telephone calls to consumers throughout the
United States.
17. Defendants, directly and through their agents and telemarketers, contact
consumers through unsolicited telemarketing calls. Many of these consumers registered their
phone numbers with the National Do Not Call Registry prior to being called by Defendants.
18. Defendants target consumers who own timeshare properties. Many of
Defendants’ victims are elderly consumers and/or immigrants who speak English as a second
language. Defendants also deceive many other segments of the population.
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19. When contacting a consumer, Defendants often already have information
about the consumer’s timeshare property, such as the property’s location, the amount of
“points” the consumer has banked, and the amount of maintenance fees the consumer must
pay to the property management.
20. In many cases, Defendants’ telemarketers represent to the consumer,
expressly or by implication, that they have a buyer for the consumer’s timeshare property,
and that the sale can be closed within a specified period of time, often within a matter of
weeks. The telemarketer typically tells the consumer the price the purported buyer is willing
to pay for the timeshare property, and often congratulates the consumer for his or her good
fortune.
21. In other cases, Defendants’ telemarketers represent to consumers, expressly or
by implication, that their timeshares are sought-after properties. These telemarketers
typically assure consumers that numerous potential buyers have already contacted
Defendants to express interest in the consumer’s timeshare resort property. Accordingly,
Defendants’ telemarketers frequently promise that these consumers’ timeshares will sell
within a short period of time – often days or weeks.
22. After representing that Defendants will quickly arrange for the sale of the
consumer’s timeshare, the telemarketer frequently tells the consumer that he or she must pay
Defendants a fee in order for the sale to proceed and close. Defendants often represent that
this payment will cover various sale-related costs, such as title searches or document
processing.
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23. If the consumer asks whether Defendants can deduct the fee from the proceeds
that will be owed to the consumer at the time of the sale, the telemarketer responds
negatively. The telemarketers provide various explanations for their answer, including that
such payment arrangements are illegal, against company policy, or may result in the loss of
the telemarketer’s license.
24. When a consumer expresses doubt about the truthfulness of Defendants’ offer,
Defendants’ telemarketers often respond with representations about the legitimacy of
Defendants’ service – such as telling the consumer that Defendants’ industry is heavily
regulated by the FTC and, therefore, Defendants must be “on the up and up.”
25. Defendants’ telemarketers have also assured skeptical consumers that
Defendants’ fee will be refunded if the sale does not close as promised.
26. In many instances in which Defendants claim to have already located a buyer
for the consumer’s timeshare, the telemarketer provides the consumer with details about the
purported buyer, such as the buyer’s name and/or nationality. Defendants’ telemarketers
frequently tell consumers that the purported buyer is foreign.
27. The telemarketers often provide consumers with a timeline for the purported
sale of their timeshare, including the date on which the sale should close and the date on
which the consumer should anticipate receiving a check with the closing proceeds. They
frequently tell consumers that a check with the proceeds from the sale will arrive via FedEx
and instruct the consumers to be at home, with proper ID, on the day the settlement check
arrives in order to receive the check.
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28. The amount of Defendants’ up-front fee varies widely, ranging from $200 to
more than $8,000. Defendants frequently offer to reduce the fee if the consumer expresses
displeasure with the size of the fee.
29. Believing – as they were promised – that Defendants have a buyer for their
timeshare property and/or will have it sold within a short period, and that Defendants’ fee
must be paid up-front in order to assure that the sale will go forward, many consumers agree
to pay Defendants’ fee.
30. After securing credit card payment information or payment by check or other
means, the telemarketer often tells the consumer that he or she will receive a follow-up call
to confirm the payment information. The telemarketer typically states that the follow-up call
will be from Defendants’ “legal department” or “verification department.”
31. In some cases, Defendants’ telemarketers tell consumers that the person
making the follow-up phone call will not know about the purported pending sale and thus
will pose questions to the consumer that are not relevant to the sale.
32. Defendants’ telemarketers often tell consumers that, in order to move forward
with the sale, they must agree to all the statements made by the person making the follow-up
call.
33. The person making the follow-up call typically tells the consumer that he or
she is calling from Defendants’ “legal department” or “verification department,” and
proceeds to quickly run through a series of questions and statements.
34. Defendants’ verifier (the caller on the follow-up call) confirms the consumer’s
personal and payment information, as well as details about the consumer’s timeshare
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property. In many cases, the verifier also quickly informs the consumer of Defendants’
seven-day rescission period and states that Defendants will advertise the timeshare property
until sold, while stating that Defendants cannot guarantee how long it will take to sell the
property, or the price at which it will sell.
35. If the consumer states that he or she does not understand what the verifier has
said, or suggests that the verifier has made statements that differ from the promises made by
the telemarketer concerning the supposedly imminent sale of the consumer’s timeshare, the
verifier typically transfers the consumer back to the telemarketer.
36. In many cases, the telemarketer then tells or reminds the consumer that he or
she must agree to the verifier’s statements in order to ensure that the sale will go forward,
reassuring the consumer that – since the sale of his or her property is imminent – the
verifier’s statements do not apply to the consumer’s situation.
37. In some instances, when questioned about the verifier’s statements regarding
advertising the timeshare, the telemarketer tells the consumer that Defendants previously
advertised his or her resort. As there is already a buyer for the consumer’s property, the
telemarketer explains, Defendants will now move his or her account from “advertising” to
“financing” to reflect the pending sale.
38. In other cases, the telemarketer reassures the consumer that the discussion of
advertising services must be included in the terms of service for legal reasons, due to laws
governing timeshare sales.
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39. After providing reassurances and explanations, the telemarketer often
transfers the consumer back to the verifier, who again quickly runs through the list of
verification questions and statements.
40. Defendants maintain that these “verification” calls are recorded. In numerous
cases, Defendants utilize purported transcripts from these calls when responding to refund
and chargeback requests or consumer complaints filed with state agencies or Better Business
Bureaus (“BBBs”). Defendants do not claim to record the actual sales calls, which are
typically much longer and more detailed than the verification calls.
41. In many cases, after completing the verification process, Defendants place a
brief description of the consumer’s timeshare on one of the websites maintained by
Defendants, such as alllandsales.com, timeshareexperts.com, besttimesharesales.com,
sellingtimeshare.com, soldmytimeshare.com, vacationsbuyowner.com or
rentingtimeshare.com. The brief descriptions typically include basic details about the
consumer’s timeshare, such as location, number of bedrooms and bathrooms, usage terms,
maintenance fees and asking price.
42. Within 10 to 14 days of payment, most consumers receive a confirmation
document. The confirmation document typically includes various details concerning the
sales process and/or the consumer’s timeshare property. The confirmation document also
includes a section entitled “Terms of Advertising Agreement,” which typically states:
(1) Vacation Property Services is a For-Sale-By-Owner advertising
company that is not a real estate broker. This advertising program
involves pooling advertising resources with those of other advertisers
to maximize exposure to potential buyers or renters.
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(2) Vacation Property Services forwards all offers about my timeshare
directly to me and allows me to negotiate the sale of my property
without the involvement of any broker, and without any commission.
(3) Vacation Property Services assumes that my timeshare sells, rents or
exchanges within a SIX-month period unless I advise Vacation
Property Services to the contrary, prior to the expiration date of six
months. Upon notification Vacation Property Services will renew my
advertisement at company expense.
(4) Our refund policy states this is a one time fee with a 7 day right of
rescission from the date your advertisement is listed. After the 7 days
it is only refundable if your property is sold or rented any other way
within 10% of the original price upon proof of sale or rental.
(5) Pursuant to [Florida Statute] 721.20(9)(a), the ratio of the number of
timeshare interests listings for sale versus the number of timeshare
interests sold by Vacation Property Services is zero for each of the
previous two calendar years. Because Vacation Property Services is a
For Sale By Owner timeshare advertising company, it does not obtain,
track, or keep records of sales from its timeshare property
advertisements.
43. Upon reviewing the confirmation document, many consumers immediately
attempt to contact Defendants to obtain a refund, recognizing that the “advertising” terms in
the document do not match the telemarketer’s promise of a quick sale.
44. Other consumers do not react to the confirmation document, either because:
(1) Defendants’ telemarketer promises the consumer that his or her property is not subject to
the typical advertisement agreement because a buyer has already been identified and the
timeshare property will soon be sold; (2) the consumer reviewed the confirmation document
during the initial sales call and was promised by the telemarketer that, notwithstanding the
fact that the terms of service discuss advertising, the fee paid by the consumer to Defendants
will be used to pay fees and expenses necessary for consummation of the promised sale;
(3) the telemarketer told the consumer during the sales call that the property would be
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advertised, while also promising a quick sale – often within days or weeks; or (4) the
consumer managed to speak with the telemarketer, who assured the consumer that the terms
discussed in the confirmation document have no impact on the imminent sale of the
consumer’s timeshare.
45. Consumers frequently receive the confirmation document more than seven
days after paying Defendants’ fee. If consumers become suspicious after carefully reviewing
the terms contained in the confirmation document, any refund request made by a consumer as
a result of such suspicion will be filed more than seven days after the consumer has paid
Defendants’ fee. Indeed, Defendants often deny refund requests as untimely.
46. After Defendants receive their up-front fee from a consumer, they typically
ignore his or her inquiries. When the consumer attempts to contact Defendants by email,
Defendants often ignore the emails or provide boilerplate responses unrelated to the
consumer’s request or inquiry. When the consumer calls their offices, Defendants’
employees frequently tell the consumer that the telemarketer in charge of his or her
transaction is unavailable. Defendants’ employees repeatedly tell consumers seeking postpayment
assistance that the telemarketer in charge of their transaction is “out of the office,”
“sick,” “in the field,” “in a meeting,” etc. Likewise, Defendants rarely respond to
consumers’ post-payment voicemails and messages.
47. Defendants also stymie any attempt to obtain refunds, including attempts
made well within Defendants’ seven-day cancellation period, by, among other stalling
tactics: (1) refusing to permit cancellation via email, phone call or fax; (2) refusing to provide
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consumers with a written address for cancellation letters; (3) refusing to acknowledge receipt
of cancellation letters; and/or (4) refusing to respond to calls and emails, as discussed above.
48. When a consumer succeeds in contacting the relevant telemarketer within
Defendants’ cancellation period, the telemarketer often attempts to convince the consumer to
forgo the refund request by assuring him or her that the promised sale of the timeshare will
proceed as planned.
49. The promised date for the sale of the timeshare property, or the date by which
Defendants promised to locate a buyer, typically passes without any contact from Defendants
and without a sale of the timeshare property or identification of a real buyer.
50. When consumers realize they have been deceived, they often seek refunds
directly from Defendants and/or initiate chargebacks with their credit cards companies.
51. Consumers have also logged hundreds of complaints against Defendants with
law enforcement agencies and BBBs.
52. When credit card companies contact Defendants regarding a chargeback
request, or BBBs contact them regarding consumer complaints, Defendants typically deny
that they made any promises regarding locating buyers or the time that it would take to sell
the consumer’s timeshare property.
53. Defendants typically respond to refund requests initiated through consumers’
credit card companies or BBBs by stating that Defendants’ fee is non-refundable after seven
days and claiming that their service is limited to posting an online advertisement for the
consumer’s timeshare property, “just like a newspaper.”
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54. Defendants typically produce a copy of their confirmation document to the
credit card company or the BBB, citing the terms of service as proof of the consumer’s
agreement to pay for Defendants’ services. Defendants often present the document as proof
that the consumer was on notice regarding their seven-day rescission policy.
55. In many cases, Defendants provide, or offer to provide, the credit card
company or the BBB a purported transcript of the brief verification call. Frequently,
Defendants produce a template of a verification call script, instead of the actual transcript.
56. In many instances, Defendants rely upon the confirmation document and the
purported verification transcript (or the template of a verification script) to defeat consumer
chargeback challenges.
57. Consumers’ attempts to obtain refunds directly from Defendants are similarly
futile. Even when the consumer repeatedly contacts Defendants to cancel the transaction
within seven days of payment, Defendants often fight or ignore the consumer’s request, a
contravention of Defendants’ own “terms of service.”
Prior Enforcement
58. In July 2007, HLM entered into an assurance of voluntary compliance
(“AVC”) with the Office of the Attorney General of Florida (“Florida AG”) to settle
allegations that it made false promises to consumers, including promises that HLM “had a
buyer or renter already identified for the [consumer’s] timeshare.” HLM agreed that it would
not engage in various unlawful practices, such as making calls to consumers listed on the
National Do Not Call Registry and making false and misleading promises to consumers when
pitching HLM’s timeshare resale services. HLM agreed to pay $7,500 to the Florida
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Department of Legal Affairs Revolving Trust Fund and refunded $10,223.50 to consumers.
Defendant Perry signed the AVC on behalf of HLM.
59. In March 2008, VPS entered into a similar AVC with the Florida AG to settle
allegations that it made false promises to consumers, including promises that VPS “had a
buyer or renter already identified for the [consumer’s] timeshare.” VPS promised that it
would not call consumers listed on the National Do Not Call Registry or make false or
misleading statements about its timeshare resale services. VPS agreed to pay $15,000 to the
Florida Department of Legal Affairs Revolving Trust Fund and refunded $12,266.50 to
consumers. VPS further agreed to escrow $10,000 for any unidentified refund requests made
prior to the effective date of the AVC. Defendant Wilson signed the AVC on behalf of VPS,
and also in his personal capacity.
SECTION 5 OF THE FTC ACT
60. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or deceptive
acts or practices in or affecting commerce.”
61. Misrepresentations or deceptive omissions of material fact constitute
deceptive acts or practices prohibited by Section 5(a) of the FTC Act.
THE TELEMARKETING ACT AND THE TELEMARKETING SALES RULE
62. Congress directed the FTC to prescribe rules prohibiting abusive and
deceptive telemarketing acts or practices pursuant to the Telemarketing Act, 15 U.S.C.
§§ 6101-6108. The FTC adopted the original TSR in 1995, extensively amended it in 2003,
and amended certain provisions thereafter. 16 C.F.R. Part 310.
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63. It is a deceptive telemarketing act or practice, and a violation of the TSR, for
any seller or telemarketer to make a false or misleading statement to induce a person to pay
for goods or services or to induce a charitable contribution. 16 C.F.R. § 310.3(a)(4).
64. It is a deceptive telemarketing act or practice, and a violation of the TSR, for
any seller or telemarketer to misrepresent any material aspect of the nature or terms of the
seller’s refund, cancellation, exchange, or repurchase policies. 16 C.F.R. § 310.3(a)(2)(iv).
65. Among other things, amendments made to the TSR in 2003 established a donot-
call registry (the “National Do Not Call Registry”), maintained by the FTC, of consumers
who do not wish to receive certain types of telemarketing calls. Consumers can register their
telephone numbers on the National Do Not Call Registry without charge either through a tollfree
telephone call or over the Internet at donotcall.gov.
66. Consumers who receive telemarketing calls to their registered numbers can
complain of National Do Not Call Registry violations the same way they registered, through
a toll-free telephone call or over the Internet at donotcall.gov, or by otherwise contacting law
enforcement authorities.
67. The FTC allows sellers, telemarketers, and other permitted organizations to
access the National Do Not Call Registry over the Internet at telemarketing.donotcall.gov, to
pay the fee(s) if required, and to download the numbers not to call.
68. The TSR prohibits sellers and telemarketers from calling any telephone
number within a given area code unless the seller on whose behalf the call is made has paid
the annual fee for access to the telephone numbers within that area code that are included in
the National Do Not Call Registry. 16 C.F.R. § 310.8.
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69. Under the TSR, an “outbound telephone call” means a telephone call initiated
by a telemarketer to induce the purchase of goods or services or to solicit a charitable
contribution. 16 C.F.R. § 310.2(v).
70. The TSR prohibits sellers and telemarketers from initiating an outbound
telephone call to numbers on the National Do Not Call Registry. 16 C.F.R.
§ 310.4(b)(1)(iii)(B).
71. The TSR prohibits sellers and telemarketers from initiating an outbound
telephone call to any consumer when that consumer previously has stated that he or she does
not wish to receive an outbound telephone call made by or on behalf of the seller whose
goods or services are being offered, or made by or on behalf of the charitable organization
for which a charitable contribution is being solicited. 16 C.F.R. § 310.4(b)(1)(iii)(A).
72. Pursuant to Section 3(c) of the Telemarketing Act, 15 U.S.C. § 6102(c), and
Section 18(d)(3) of the FTC Act, 15 U.S.C. § 57a(d)(3), a violation of the TSR constitutes an
unfair or deceptive act or practice in or affecting commerce, in violation of Section 5(a) of
the FTC Act, 15 U.S.C. § 45(a).
Defendants’ Disregard for Do Not Call Rules
73. Defendants are “sellers” and “telemarketers” engaged in “telemarketing,” as
defined by the TSR, 16 C.F.R. § 310.2.
74. Defendants are sellers of timeshare resale services to consumers. Defendants
have called consumers in the United States to induce the purchase of Defendants’ services.
75. Defendants are also telemarketers that initiate outbound telephone calls to
consumers in the United States to induce the purchase of Defendants’ services.
Case 8:11-cv-00595-JDW-MAP Document 1 Filed 03/22/11 Page 17 of 22 PageID 17
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76. Defendants have engaged in telemarketing by a plan, program, or campaign
conducted to induce the purchase of goods or services by use of one or more telephones and
which involves more than one interstate telephone call.
77. Defendants have called consumers’ telephone numbers that are on the
National Do Not Call Registry without limiting such calls to persons who had previously
purchased or inquired about Defendants’ products or services.
78. Defendants have called telephone numbers in various area codes without first
paying the annual fee for access to the telephone numbers within such area codes that are
included in the National Do Not Call Registry.
79. From November 2009 to November 2010, Defendants initiated more than
292,000 telephone calls to telephone numbers of persons who had placed their numbers on
the National Do Not Call Registry prior to being called by Defendants.
COUNT I
Deceptive Telemarketing Calls in Violation of the FTC Act
80. In numerous instances, in connection with the advertising, marketing,
promotion, offering for sale, or sale of timeshare resale services, Defendants have
represented, directly or indirectly, expressly or by implication, that:
A. Defendants have located a buyer for the consumer’s timeshare
property who has agreed to pay a specified price or that Defendants
will quickly sell the consumer’s timeshare;
B. Defendants will refund their fee to the consumer if the promised sale
does not take place; and
Case 8:11-cv-00595-JDW-MAP Document 1 Filed 03/22/11 Page 18 of 22 PageID 18
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C. Defendants will refund their fee to the consumer if the consumer
requests to rescind payment within seven days of the first appearance
of the consumer’s advertisement on one of Defendants’ websites.
81. In truth and in fact, in numerous instances in which Defendants have made the
representations set forth in Paragraph 80 of this Complaint:
A. Defendants have not located a buyer for the consumer’s timeshare
property who will pay a specified price and Defendants do not quickly
sell the timeshare;
B. Defendants do not refund their fee to the consumer if the promised sale
fails to occur; and
C. Defendants refuse to refund their fee, even if the consumer requests
rescission within seven days of the first appearance of the consumer’s
advertisement on one of Defendants’ websites.
82. Therefore, Defendants’ representations, as set forth in Paragraph 80 of this
Complaint, are false and misleading and constitute deceptive acts or practices in or affecting
commerce in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a).
COUNT II
Deceptive Telemarketing Calls in Violation of the TSR
83. In numerous instances, in the course of telemarketing their goods and
services, Defendants have made false or misleading statements, directly or by implication, to
induce consumers to pay for goods or services, including, but not limited to,
misrepresentations that:
Case 8:11-cv-00595-JDW-MAP Document 1 Filed 03/22/11 Page 19 of 22 PageID 19
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A. Defendants have located a buyer for the consumer’s timeshare
property who has agreed to pay a specified price or that Defendants
will quickly sell the consumer’s timeshare;
B. Defendants will refund their fee to the consumer if the promised sale
does not take place; and
C. Defendants will refund their fee to the consumer if the consumer
requests to rescind payment within seven days of the first appearance
of the consumer’s advertisement on one of Defendants’ websites.
84. Defendants’ acts or practices, as described in Paragraph 83 above, are
deceptive telemarketing acts or practices that violate the TSR, 16 C.F.R. §§ 310.3(a)(2)(iv)
and 310.3(a)(4).
COUNT III
Violating the National Do Not Call Registry
85. In numerous instances, in connection with telemarketing, Defendants initiated
or caused others to initiate an outbound telephone call to a person’s telephone number on the
National Do Not Call Registry in violation of the TSR, 16 C.F.R. § 310.4(b)(1)(iii)(B).
COUNT IV
Failing to Pay National Registry Fees
86. In numerous instances, in connection with telemarketing, Defendants have
initiated, or caused others to initiate, an outbound telephone call to a telephone number
within a given area code when Defendants had not, either directly or through another person,
paid the required annual fee for access to the telephone numbers within that area code that
are included in the National Do Not Call Registry, in violation of the TSR, 16 C.F.R. § 310.8.
Case 8:11-cv-00595-JDW-MAP Document 1 Filed 03/22/11 Page 20 of 22 PageID 20
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CONSUMER INJURY
87. Consumers have suffered, and will continue to suffer, substantial injury as a
result of Defendants’ violations of the FTC Act and the TSR. In addition, Defendants have
been unjustly enriched as a result of their unlawful acts or practices. Absent injunctive relief
by this Court, Defendants are likely to continue to injure consumers, reap unjust enrichment,
and harm the public interest.
THIS COURT’S POWER TO GRANT RELIEF
88. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court to
grant injunctive and such other relief as the Court may deem appropriate to halt and redress
violations of any provision of law enforced by the FTC. The Court, in the exercise of its
equitable jurisdiction, may award ancillary relief, including rescission or reformation of
contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies, to
prevent and remedy any violation of any provision of law enforced by the FTC.
89. Section 19 of the FTC Act, 15 U.S.C. § 57b, and Section 6(b) of the
Telemarketing Act, 15 U.S.C. § 6105(b), authorize this Court to grant such relief as the Court
finds necessary to redress injury to consumers resulting from Defendants’ violations of the
TSR, including the rescission or reformation of contracts, and the refund of money.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff FTC, pursuant to Sections 13(b) and 19 of the FTC Act, 15
U.S.C. § 53(b) and 57b, Section 6(b) of the Telemarketing Act, 15 U.S.C. § 6105(b), and the
Court’s own equitable powers, requests that the Court:
Case 8:11-cv-00595-JDW-MAP Document 1 Filed 03/22/11 Page 21 of 22 PageID 21
Case 8:11-cv-00595-JDW-MAP Document 1 Filed 03/22/11 Page 22 of 22 PageID 22
A. Award Plaintiff such preliminary injunctive and ancillary relief as may be
necessary to avert the likelihood of consumer injury during the pendency of
this action and to preserve the possibility of effective final relief, including,
but not limited to: temporary and preliminary injunctions, an order freezing
assets, immediate access, and the appointment of a receiver;
B. Enter a permanent injunction to prevent future violations of the FTC Act and
the TSR by Defendants;
C. Award such relief as the Court finds necessary to redress injury to consumers
resulting from Defendants' violations of the FTC Act and the TSR, including,
but not limited to, rescission or reformation of contracts, restitution, the refund
of monies paid, and the disgorgement of ill-gotten monies; and
D. Award Plaintiff the costs of bringing this action, as well as such other and
additional relief as the Court may determine to be just and proper.
Dated: March 22, 2011
22
RespectwlJr submitted,
'W //// / \"~~"\
I///J
j t f
Dotan Weinman
FEDERAL TRADE COMMISSION
600 Pennsylvania Ave, N.W.
Mailstop H-286
Washington, DC 20580
(202) 326-2635 (Maxson phone)
(202) 326-3049 (Weinman phone)
(202) 326-3395 (facsimile)
wmaxson@ftc.gov
dweinman@ftc.gov
Attorneys for Plaintiff Federal Trade
Commission
FTC STATEMENT ON TIMESHARE FRAUD:
Court Shutters Telemarketers Peddling Bogus Timeshare Resales, Robert Paisola Reports for Reuters
Defendants Allegedly Claimed They Could Find Timeshare Buyers
At the Federal Trade Commission’s request, a federal district court has issued a temporary restraining order against a Florida-based telemarketing scheme that allegedly tricked timeshare owners who sought to sell their timeshare properties.According to the FTC’s complaint, since at least 2006, Vacation Property Services, Inc., two related companies, and their three principals have made tens of thousands of unsolicited telemarketing calls to timeshare owners claiming that they could quickly find buyers for the owners’ timeshares. The defendants allegedly trick consumers into paying large up-front fees, typically using one of two deceptive sales pitches – that they have buyers lined up and waiting to buy the timeshare properties or that they will find a buyer for the timeshare properties within a short period of time. Regardless of the pitch used, the defendants demand that consumers pay an up-front fee, ranging from $200 to more than $8,000.
The FTC alleged that after making the hefty up-front payment, consumers ultimately learned the defendants had no buyers lined up to purchase their timeshare properties and no such buyers were in the offing. And, when consumers realized they had been duped, the defendants routinely dodged consumers’ phone calls and denied their refund requests.
The FTC’s complaint charges the defendants with violating the FTC Act and the Telemarketing Sales Rule by misrepresenting their refund policies and the existence of potential buyers. The complaint also charges the defendants with calling hundreds of thousands of consumers between November 2009 and November 2010 whose phone numbers are on the FTC’s Do Not Call Registry.
The FTC is seeking to permanently stop the defendants’ allegedly illegal conduct and to provide money back to consumers who were harmed by their violations of the FTC Act and Telemarketing Sales Rule.
The Commission vote authorizing the staff to file the complaint was 5-0. It was filed on March 22, 2011, under seal, in the U.S. District Court for the Middle District of Florida, Tampa Division. In addition to Vacation Property Services, Inc., the complaint names Vacation Property Sellers, Inc., doing business as (d/b/a) Timeshare Experts; Higher Level Marketing, Inc., d/b/a Vacation Property Services; Albert M. Wilson; David S. Taylor; and Frank M. Perry, Jr.
The FTC would like to thank the following organizations for their help in bringing this case: The U.S. Postal Inspection Service, Tampa, Florida, Division; The Office of the Attorney General, Florida; the Florida Department of Agriculture and Consumer Services, the Better Business Bureau of West Florida; and the St. Petersburg, Florida, Police Department.
Consumer Education
This case is part of an ongoing FTC effort to crack down on con artists who use fraud and deception to take advantage of consumers hit by the recent economic downturn. Timeshare resale scams promise enticing rewards for consumers, according to the agency. First, they deceptively offer the return of the consumer’s principal investment in the timeshare property, often with a substantial profit. They also seemingly offer a way out of timeshare loan payments and mandatory maintenance fees, which can range from several hundreds to several thousands of dollars a year. In a time of high unemployment and reduced access to credit, these twin promises can be alluring to consumers caught in difficult economic straits.
The FTC has a new publication on how to avoid pitfalls when selling a timeshare unit, Selling a Timeshare Through a Reseller: Contract Caveats. The FTC also recently filed a similar complaint against another group of defendants known as Timeshare Mega Marketing.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics. “Like” the FTC on Facebook and “follow” us on Twitter.
- MEDIA CONTACT:
- Mitchell J. Katz Office of Public Affairs 202-326-2161
- STAFF CONTACT:
- William Maxson, Bureau of Consumer Protection 202-326-2635
(Vacation PS.final)
2012 National VIP Timeshare Scam Update:
If you Are a Victim of a Timeshare Scam, Email The Time Share Chronicles Today with your contact information and SPECIFIC DETAILS of your situation to vip@timesharechronicles.com
Posts
I would like to join in and sue them.
What can I do?I would ignore them Robert. It’s pointless to pay a company that lies.
tagged: scams, timeshare
Westgate Resorts Admits Timeshare Advertising Dishonest
A ‘five star luxury resort’ Westgate Resorts executive admits untrue. Our experience in Westgate South Beach and how Westgate’s deceptive practices should refund buyers their money.
Eventually we came to the conclusion that what we believed were errors in our contact, or over-sight on our part,continued until it was obvious that we had been duped by modern-day corporate con-art— selling properties under false facades, using the credibility of business moguls to sell rip-off timeshares to people who don’t automatically consider all salespeople to be lyers. Now I know that if you are outside of Utah– don’t believe a word they say.
Hundreds Ripped of by Westgate
From Four Star Hotel Heaven to “Five Star” Timeshare Stink
After arriving in Fort Lauderdale, we spent the first night in a four star hotel. We had booked a true “one-week vacation” by paying extra for the added days. Our first room was incredible. It was in a four-star hotel in the Boca Raton Resort Bungalows. With contemporary furnishings, bed with a down comforter and silky sheets; balcony overlooking palm trees we were quite pleased. Keep in mind, this place was only four stars.Perhaps David Siegel—Westgate CEO, believes by putting enough celebrity photos on the walls makes a vacationer feel special enough to make up for the gross smells, awful free continental breakfast. Mr. Siegel has photographs of himself with the likes of Paris Hilton, Dolly Parton and even Bill Gates on every floor throughout every hallway of the hotel. This was an obvious attempt to try to build credibility for the constant barage of tours going through the first floor. Funny they never offered the tours on the second floor where we were staying among the smells of antisepctic cleaner and food rot.
When its it ever okay to produce signage and advertising that is not directed at the present state of affairs and sell and advertise as if it is? It would be fine if they wrote, “someday to be a five star luxury resort, but for now bring some nose plugs.” Westgate Resorts uses this tactic for both their Las Vegas non-existent Planet Hollywood tower, as well as their “five star luxury resort” in sunny South Beach. Certainly, no Best Western motel could get away with hyping their rooms as having balconies, marble and 15 foot ceilings then get away with it by writing on the wall of their tiny 8 x 10 room “in the future”. Customers would complain to the front desk and be refunded their money or face legal action. Yet Westgate, has seemingly found a way to get away with blatant deception. Not being an attorney I’m not aware of the letter of the law, but I think Westgate Resort’s lies are fertile ground for a class action lawsuit that should return millions of dollars back to the buyers they’ve deceived.
Editor’s Note: Our previous Westgate stories to date have been read by thousands of readers. These stories offer advice for selling timeshares and tell the entire story of our timeshare experience begining with the sales pitch in Las Vegas. Begin with the first installment: Hollywood Dreams and Timeshare Nightmares
Tell Us Your Westgate Rip-off Story
If you have been ripped-off by Westgate Resorts, tell us your story (using the form below). We will work on your behalf to organize a petition to begin the necessary legal action to return you your money.Timeshare Rip-off Stories
Rafael Oliver-VidaudWest Gate Miami Beach:
They lied to us when they said we would lock in the price of vacationing. They have turned the Miami Beach resort back into a cheap hotel that now costs less than our maintenance fees and they increase them every year; they are unable to deliver the flexibility that was promised.
Viviana R
honey moon nightmare
My husband and I had gone to Vegas around the same time last year (june), we were tolled of a 30 min talk about how we could be owners of a time share that would save us a lot of money on vacations, at first we thought why not listen we would at least get the free romantic package since it was our honey moon. The first few times I recall telling the lady that we could not offered it, and she continued to lower the price, until she tolled use that 174 dollars a month was the lowest price they would go only for us.. we felt pressured, but also excited about owning something. It’s been a year and I am now pregnant and about to lose my job from calling out to much due to morning sickness, i have contacted them hoping i can cancel since i will no longer be able to offered it, and what i got as a response was that I am not able to cancel~! and should fax a request to some account service department. I’m going to try and do that but I would like to get some help with anyone who has managed to cancel after a year.. pleas.. any money i can make now will go to medical bills and the baby.. but i would need to solve this problem first
David Smith
West Gate ownerships is a joke….. My room that I was shown to be purchasing was nothing like the out dated ran down room actually sold. During our stay our room was ram sacked by house keeping and items were missing. Managment never returned my calls and I wish I never bought the BS package. David Segiel is a comin con.
michelle jones
me and my sister was scam to by westgate resort they told us that we could sale own timeshare back to them at a profit that’s not ture,a five star hotel not,we pay 152.00 a month that 1,831 a year.the whole thing was a scam i told they i couldn’t afford it they said that they would buy it back if we couldn’t pay for it 4 years later im still stunk with this junk! THEY ALL LIE TO YOU AT WESTGATE RESORT.please can any one help me .
Minerva
Hello, My husband and I just bought astudio time share yesterday for 22,000 they told me I was getting a good deal becuase they were giving me prices from 2006. They did tell us we can carry over the week and that we would not ne liable for any damages if we rent it out…when I returned today my co-work told me they got a timeshare there for half the price and a bigger room. After that I decided to contact Westigate and complain about my purchase price…the rep ended up convincing me again that I still got a great deal…once a got home i decided to google up westgates pros and cons and found this website…thank you. I will get started today and send my certified letter tommorrow. Do I just fill in the blanks in the revocation form and sign and date or do I have to sent a explaination letter along as well?
re: Minerva
I don’t know the exact details, but they are required by law to allow you to revoke in a simple easy manner. Please let me know what the exact process is so that I can fill readers in. I’m So glad you found our sight and are preventing yourself from years of painful payments on a piece of sh** deal.
Kenyetta Kelly
I brought a 2 bedroom at Westgate Palace in Orlando Florida and they told me a lie too. They told me that I could not cancel my timeshare. I brought it on a Saturday in 2008 and when I got home that Monday I tried to call and cancel to see what steps I need to take to cancel it. I was told I coild not cancel it. But reading the article about the public offering statement it does say you have five days to cancel and they told me when I brought it that I could not cancel it because I asked the question what if I get home and want to cancel. They lie dto me and I have been stucked in this timeshare. And they lied to me about a whole list of other things in my contract. The same things they lied to Mondy Nelson about they told me which was not true. Page 17: Statute 119A: that Nevada law allows us to cancel (they didn’t want us to know about 5 days and tried to confuse us and spin around the facts until after 5th day)
Page 9.3d (after table of contents): Accural and carryover of timeshare weeks. You CANNOT carryover your timeshare weeks. We were told that if we didn’t use one week, we could move it over to the next year up to three years. THIS WAS A LIE
Page 10.8. It again states there is no carryover from one year to another. Like many timeshare victims, buyers often don’t use their week or days year-after-year, resulting in paying maintenance fees even without any usage.
Page 11 10.f: We bought a 2 bedroom suite every other year, which could be broken up into two separate weeks. One week in the one bedroom suite and one in the studio. We ONLY bought this because they said we could break it up and use the studio in one year and the one bedroom in the other year. This states that you MUST use both studio and one bedroom in that year. You can’t split in your off year.
Page 11 10i: We were told we could book up to a year in advance for our every other year timeshare. This says only book up to 120 days in advance.
Page 16 6: We were told that if the place was rented out and it became damaged by the renters we would not be responsible. That there would be HOAs (Home Ownership Association fees) to cover. This states that we would be solely liable for any damage incurred. Therefore their promise of the ease of switching weeks with someone in Miami for ours in Las Vegas was also a lie)
Page 2 of Exhibit 8: We were not told that the I.I program (the travel exchange) was voluntary. They told us it was part of the westgate program and that all dues were required each year.
Karen Cavalier
We bought into Westgate in Gatlinburg about 5 years ago through high pressure sales. We told them with my husbans’s job that we could not book vacations ahead of time. Oh-you own-not a problem. They showed us a beautiful deluxe room and we signed just that everyone else. Well, 2 months later, we tried to book and said there was no way we were going to get in that year. They sold it to us in August and had the nerve to tell us we couldn’t go. Through many phone calls, my husband got them to give us a reservation. When we got there, the room was horrible. It was not what was shown to us. We found out that they did a bait and switch. We went back to the sales management and threatened to see an attorney because my husband heard one of the salesman say they do bait and switch all the time. Well, they ended up giving us a fixed week with the ability to float, but that was a joke. Like many of you, we have also been scammed from agencies to try to sell them. Maintenance fees have gone up horrible. I think consumers should be protected from crooks like this. If they were made to give us our money back, they wouldn’t be filthy rich and continue to scam people. I wish you could get some help out there.
Brad Nelson
We bought a studio timeshare from Westgate Park City in 2006. They had renderings and info about the golf course all over the place. We were told that if we bought that we would get discounted golf and basically be treated like a country club member because we were owners. This was why we bought. The golf course has never been built, never even had an approval to be built, and today they don’t even bring it up. Of course the contract states that only the amenities listed are applicable. But come on! If any real estate agent in the country misrepresented facts like that on any transaction, then said “read your contract, tough luck, they would be sued, license revoked, and possibly thrown in jail. I would love to start a class action law suit here in Utah for the time period they represented the golf course. Anyone else get this pitch and would like to join in?
Help us gather 100 timeshare rip-off stories against Westgate so we may proceed with a class-action lawsuite against their dishonest business.
from John Smith
I am a timeshare sales agent, for the most part you are all right, but be very selective about thie timeshare you buy talk to other people and see if there happy with it timeshare is a good thing if you buy the right one. but under no sercumstances trust no one in the business they are all pathalogical liars
Follow-up from Michael
Richard:
We are currently pursuing a personal lawsuit, however the more information that I gather, it appears that a class action case could go forward, especially if there are more people who can come forward such as you with claims that what was in the contract was not what they delivered. For example your situation where in the written contract the difference between how a week is defined, providing 3 nights versus 4; although 4 was specificed and etc. Our dispute revolves aournd what was written in the contract versus what they are delivering regarding the timeshare purchase (deed issues).
According to my attorney this is classic “Bait and Switch” tactics that are employed and what they are doing is fraud.
If you have any other contacts who have experienced simlar experiences it would be great if you could provide me their details.
from Michael Bogenreif
I find your article interesting. We are in the process of litigating our issues with Westgate and would appreciate any other people who have experienced deceptive and fraudulant practices with Westgate – Planet Hollywood.
from D Baker
The 2008 Florida State Statutes are located at this link
You may find this to be very useful. We did… We beleive that we will receive our down-payment refund in full and according to information in the stautes, they must provide the refund within 20 days.
from Ginger D
I want to file a class action lawsuit against westgate resorts in Orlando Florida for misleading practices. It is a typical timeshare nightmare story. Basically, I have a timeshare that is paid off and I have outrageous maintenance and tax fees. I can’t even give this timeshare away. It costed us about 16 grand. They gave the impression that we could resell through them and that our maintenance fees would be around $400 dollars per year. The maintenance fee has gone up to about 800 dollars a year or so. I am worried it is going to keep going up. They won’t buy it back, resell it for us or even take it back for free. It is a monkey on my back. I have read story after story about these timeshare industry scams. I have tried to list it through a timeshare listing company only to find out it is a scam too. Those companies who listed them have already had a class action lawsuit against them or have closed shop and left town. I would venture to say I have blown at least a thousand dollars on listing. I am learning how not to get scammed the hard way. I want to sue westgate resorts for misleading practices. If not for that, then for whatever I can do to them to shed a spot light on them. If not a class action lawsuit then perhaps passing of a bill to protect consumers from these misleading practices of the timeshare industry. It isn’t so much money I am after but setting a presendence. I would like to get back my 16 grand at best though.
from D Baker
It happened yesterday, being sucked into the absolute worst decision I have ever made financially… We accepted the tour for discount, initially declined, later accepted (bought/agreed) and today on the way home, realized what an idiotic stupid move it was… We’re in the process of cancellation tonight. It “IS POSSIBLE” as long as it’s accomplished within ten (10) days of signature “OR” delivery by the developer to provide all required documents (which may include the actual deed for property depending on the state). The FL state statues explain 10 days as the day you send notice, so get confirmation of delivery (apparently that’s all that’s required legally)…. Also stated; you may “CANCEL THE CONTRACT WITHOUT ANY PENALTY OR OBLIGATION” which we have requested and expect a full and immediate refund of the down-payment. We noted this information in our request.
Not certain this will help anyone, but we’re trying and the information was there in paperwork provided.
I assure you that it’s most likely in the document with font so small you can’t see/read it. That’s where we fond it.
Last week if anyone asked what the stupidest thing was I had ever done, I wouldn’t know what to say. At least now, I have the answer…. At least I may be able to recover…
Best of luck to all!…
-From Ken H
We took a trip to Las Vegas and was booked at the hotel now called Planet Hollywood. After checking an on our way our room. We were approached by a couple of guys asking us if we would like a free meal and a couple of show tickets, they stated all we had to do was listen to a 30 minute talk. So we agreed and went the next day. No where in this conversation did they mention timeshare if they had I would of said no thank you. The next day we went it was more like a 3 hour and when we told them we could not afford it they magically came up with another one. We still said no and they said we will let you talk it over this went on for 4 conversations and finally just to get out we signed on. When they finally took us back to the hotel we went through the papers but found nothing in there to cancel. So after a year of arguing with them they sent me a paper I had signed showing we were suppose to cancel within 5 days. No where in my packet was that paper. Had it been I would of went the next day to cancel by way of the Post Office sending it Express to the address listed with a return receipt for proof. Then I get a phone call from them tell me my tax are late. I tell them I don’t nothing about taxes they said it was in my contract I told her that contract is useless as your company gives selective parts to people. A couple months ago they started bugging me to give them names of friends or workers so they could try and sell them a timeshare. I went off on them saying I would not even do that to people I dislike. I told the girl that her company screwed us, her reply was I am sorry you feel that way. Yeah right. I have yet to use the timeshare and don’t plan to. I do plan to go back to Las Vegas though and wear a T-shirt with something to the effect if you buy a Timeshare remember you have only 5 days or you are screwed for life.
Response
Thanks for the story Ken. It sounds like your experience very similar to ours. What amazes me is that Westgate Resorts employees seem so naive in the deception they are engaging in. We bought our week in the end, because the final woman we spoke to seemed so nice and down to earth. She was foreign, telling us about her new baby. In the end, we came to find out nearly everything- not just a few things-but everything that came out of her mouth was a lie. I’ve come to think I can trust certain types of people. Don’t trust anyone in a timeshare sales office.
From Tammy Sullivan
Tammy writes that now in addition to selling timeshare rip-offs, Westgate is also overbooking or double booking their incentive package
Its this incentive package they use to lure people into their sales area at Westgate Hollywood Planet Resort. Tammy says that she and her husband booked 3 days and 2 nights for $199.00 and have already made plans to travel to Las Vegas. Now Westgate can’t confirm they will have a place to stay.
Tammy writes -
NO where on the papers does it have a room confirmation for the date we requested. Just a confirmation for a Westgate Vacation package for 3 days 2 nights. Typed on it it says to call for vacation. Well tonight he has spent two hours and spoke with over eight different people and have gotten no where. Never, ever gained access to speak with a supervisor. Last person he spoke with said he would look into it and call within one hour. Well after 90 minutes my husband called him back and he sent my husband to an other guy who said we are on standby in case anyone cancelled. NOT ACCEPTABLE. Not what we have set out to do nor travel over 2000 miles to MAYBE have a room or not. As it stands right at this moment the last guys we spoke with will get back with us tomorrow. Will keep you posted…
PS By the way we are timeshare holders in Orlando but have yet to use our timeshare. We have bought into it 1 year ago and have purchased it for every other year.
Response
I’m sorry to hear about your problems with Westgate. If you do end up going and finding a room I think you will find, as we did, that what they promise as a delux room will be quite a disappointment. There are now some very good specials going on at Luxor and other very nice casinos for close to what you will be paying for your Westgate room, I would try to get your money back and book at another casino. If you would like to read about what our room was like in the “new” Planet Hollywood Resort you can read about it in my first story here:
Hollywood Dreams and Timeshare Nightmares
Good luck, and keep us posted on what happens.
Update From Tammy Sullivan
My husband has now requested they just refund us our money back ($199.00) and forget it. She put him back on hold …she came back she said the refund will take about three to five days to go through. Cannot send us a confirmation to verify they will refund our money. I am TRUELY ashamed to say we have the timeshare with them. (Have yet to use it) In the meantime I am about to call American Express (how we paid for this) and see if they may be of assistance.
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18 Comments so far:
But the big things was maintenance fees every other year starting in 2009 then continuing in 2011, 2013, etc. The property was not ready for occupancy until 2010 and I was still charged 2009 maintenance fees and told I could use the property in 2010. I asked how they could charge maintenance on a building that was not opened and required no maintenance, telling them to waive the maintenance fee and I would resume in 2011. They would not allow this quoting the legal problems I would get into by not paying and making the timeshare impossible to sell. I paid the $750 to “maintain a property that was still under construction.
Now, Jan.2, they are billing me again for 2011 maintenance fees, $850 this time. I could get a week at the Bellagio for that. And I already paid over $20,000 for a every other year timeshare. If I am only suppose to pay every other year, and they have only been open a year and a half, how can I be billed twice.
Any help would be greatly appreciated.
The treatment my family and I received at Westgate Park City, was disgusting! I am currently working with David Siegals office to try and correct this issue.
There is more to this issue then I can write and it is very disturbing. I feel I have been deceived.
i think there are more sites out there that we can all go and state our frustrations about westgate hope we can all help each other
Why can’t you get a week? If you try and book a week within like 1-2 weeks before you want to stay, then you probably won’t get that week. I book mine 10 months in advance..don’t have any issues. I have no problem with my timeshare…except the HOA fees…somewhere during the sale that went over my head. The HOA fees are a big rip-off. 700-1000 a year depending on what you own is outrages for only being there 1 week out the year.
If there’s a class action in the works, please let me know.
Thank you
If a class action suit is going to be filled i would like to be involved.
tagged: scams, timeshare, vegas
Timeshare Scam from Westgate Resorts
Part III in the ongoing story of attempting to fight back against Westgate Resorts rip-off time share scam. See our previous story on Vegas time share scams.
In the previous installment I described how Westgate Resorts in Las Vegas used dishonest practices to sell us a time share single-week package for Miami Beach, Florida. We bought the package with the assurance that we could easily book the week we wanted (for my brother’s wedding in March). Previously, I described how things went wrong. For the past two weeks I’ve made an attempt to fight back against Westgate, and do all in my power to get them to own up to their lies and blatant deceit and give us the vacation we purchased.Fortunately, we never purchased the $30,000 time share in Las Vegas Planet Hollywood Resort (which is now selling for just under $10,000 here). We did however, buy a one week package for $495. We assumed this compromise was indeed a good deal, used to entice customers to upgrade to the full package. We were assured by our sales representative Sonia that this was the case. She was a nice lady and didn’t for a moment appear be a con-artist. In hind-sight she was so effective in her lies because she appeared innocent and kind. Where the previous sales efforts of Hikoo and Melissa failed, Sonia succeeded perhaps because as a unique foreigner from South Africa she in now way appeared deceptive.
With this said, I wasn’t about to complain to Westgate about Sonia’s sales tactics. Yes, I was lied to, but everyone living in the United States (especially me) should well know that what is in black and white is what matters, not what verbally agreed upon. We (believed) we had bought four nights five days for $495, I could still live with this. My relief in not purchasing the entire time share package helped me to forgive Sonia and realize my own ignorance.
So why have I been fighting Westgate for the past month? Because our contract states in two places that the arrangement is for “4 nights”, yet they keep telling us they don’t offer a four night package only a three night and seven night package. So because there is no such thing as a four night package, we need to understand that we only have three nights, despite what the contract states. Unbelievable? Its true, I spoke to three different Westgate representatives, we have booked our vacation for August, yet each representative has told us the carbon-copy ink impression on our contract is inaccurate and we only have 3 nights. I spoke to two Hispanic women when I called the first two times. I didn’t want to raise hell to these women, so I asked to speak to their manager. The second lady told me I should fax them my contract, and if it does say “4″ nights I will get my four nights. I did one better than this and scanned two pages of the contract where the number “4″ is so clearly written.
Finally, I sent the e-mail along with links to my previous stories. This was still not enough. I then spoke to a gentleman named Louis, who told me, despite the evidence, it didn’t matter. They don’t offer a 4 night package. I was begining to wonder if this was a common routine. I asked to speak to his manager, Louis said he would have his manager Freddy call me. I said to Louis, “They have told me before they will call and they never did. So I don’t believe you.” I was angry, the entire time on the phone with Louis. “Freddy will call you. I’m sure he will when he gets off the phone.”
Nearly a week went by before I was contacted by Freddie (Manager of the Wesgate Resorts call center). When I finally got a hold of Freddie he again repeated what the others had told me, “I’m sorry sir, but what the contract means is 4 days and 3 nights.”
“My contract reads ’4 nights’, there is no ’3′ anywhere. The number “4″ and after that it reads “nights”. Pull up my scanned copy of the contract if you don’t believe me.”
I then spouted off the entire story about how we had been completely lied to, believing we had bought seven nights. Telling me now that my contract is wrong is unacceptable. I’m not going to accept being lied to then blatantly deceived.”
I was yelling at Freddie. Freddie wanted to calm me down.
“So what do you want me to do about it sir?”
“How about I either get what’s in my contract or you give me my money back?”
Freddie agreed to generously give us the fourth night, as written in the contract. He said we should receive a confirmation letter in the mail soon. One week later we still haven’t seen a letter. Who knows if he really added the night or if he is just betting that I wont call back again and wait on hold for an hour just to fight over getting our fourth night.
The entire saga has made me consider the nature of big corporate power. I’m not an anti-corporate activist. However, I have come to understand a new fact of life in dealing with dishonest corporations. This lesson has made me understand how and why our courts are so filled with class-action law suites; where greedy lawyers line up for the opportunity to go up at bat against a big corporate powers.
Westgate Resorts is one of the largest timeshare companies in the world. With every person you deal with, there are 100s of others who could also be speaking to you. I imagine the span of cubicles and offices must be vast. The representative speaking to you might offer their first name, but in dealing with such a giant as Westgate, its clear that employees believe that there is almost no accountability for their actions or words. I don’t believe that all timeshare companies are evil, or that even Westgate has evil intentions as a corporation to rip-off as many people as they possibly can. However, Westgate functions under a giant bureaucracy where every person, office and resort is an additional layer of padding for real accountability. There is always another rung in the ladder. No doubt, Westgate Executives believe that very few will be willing to make the climb to where the buck stops. Few have the money and few want to hire a lawyer to hold their feet to the fire.
My final words to Freddy were, “You have my contract in hand. Would you please go back to Sonia, or her boss, and ask her why she is lying to her customers to get the sale?”
“Yes sir, I will, that is not how we want to operate here.” I’m sure Sonia got an earful from Freddy.
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4 Comments so far:
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ICB Butter says: July 3, 2011 at 9:17 pm New Plant Hollywood by Westgate Resort. Timeshare are dishonest and they have stole more than $17,775. I had no clue they were scamming me since 2009 Every time I tried to book a week they it were you have to pay for an exchange week are some other fees and I never used it nor seen the resort, I were paying on it since 2008.They were misleading and lying as they go alone. Using high pressure and making us think we were getting a real deal. This is in the center of the Vegas strip and everyone want to buy this Resort and it worth a lot of money. It will pay for it self. and at anytime you do not want it we will buy it back. I have learned if it sounded to good to be true and they still scammed me. Each man came to our table were better then the other one.
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ICB Butter says: July 3, 2011 at 9:24 pm Corrections above every time I tried to book a week the would tell me about exchange fee’ and are they had no rooms at that time.
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Leah says: June 6, 2011 at 3:55 pm I don’t normally comment on blogs.. But nice post! I just bookmarked your site
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Linda says: February 3, 2011 at 10:59 am We are really idiots, we have been fighting with Westgate since 2002 and we continue to purchase from them, in hopes that we will get to go somewhere else, instead of only Florida. That is the only place we have goneand every yeare we fight to tears trying to go to other Westgate properties.
tagged: scams, timeshare, utah, vegasI want every penny they stole plus Tax and the one’s involved in these scammed should be put in jail.
Westgate tell all kind of lies. I want to put my name on a class action suite. Are there on out their?? I’m so MAD at Plant Hollywood in Las Vega. They stole my money
Vegas Timeshare Scam from Westgate Resorts
How one-week single usage timeshare options are misleading and dishonest. The second of four installments beginning with our previous story on timeshare nightmares.
It’s very fitting when you consider that Las Vegas is the number one place for timeshare sales in the United States. I now completely understand why timeshare companies are so willing to offer free vacations worth a few hundred dollars, just to get you into their presentation. Just as most gamblers (including myself) don’t consider the long-term statistics or relevant facts of the situation, timeshare buyers share this mentality. The difference is gamblers have close to a 50 percent chance of winning at some games like blackjack. Winning from buying a timeshare in Vegas, however, is impossible.Westgate and Grandview both tell potential buyers that they need to enjoy life, take a break from hectic American society. They sell the notion that there is no better way to vacation then by owning a timeshare. However, just as our presentation was wrapping up, a timeshare salesperson was being carted off on a stretcher to a waiting ambulance. The $40,000 commitment doesn’t offer relief but stress. The borrower is slave to the lender, and Westgate Resorts is selling rip-off time shares that the open market offers for nearly half of their asking price.
I wrote my last piece in hopes of helping people from making the mistake of burdening their lives with a rip-off. As I noted in the previous piece, we did end up purchasing the $450 dollar option for one week in any Westgate resort, for attending my brother’s wedding in Florida. The salesperson assured me that we would have no problem booking the room we would want in Florida if we acted right away. What we later found was that a 20 day processing lag prevented us from “acting right away”, and by the time we were able to book our week, the rooms were already sold out in Florida.
I don’t blame the saleslady as I do myself for being duped. Its clear that these salespeople can say nearly anything and get away with it, and they are likely trained to lie. It is only the words in writing or legalese that matter. In the fine-print, we also later learned that Florida (Miami Beach) is also excluded from the one-week purchase agreement. I don’t believe our salesperson intentionally lied to us, I think, more likely the sales agents don’t know any of the fine print and they are free to sale as they wish.
The second lesson I can share is, before considering buying a timeshare be sure to research the deals available on the open market. Buyers should never trust these sales agents, they try to convince you that you are buying an investment that will go up in value when the truth is after you have signed the paper work and walked out the door, most buyers have immediately been suckered into a huge rip-off that is worth thousands less on the open market. Timeshare sales agents have almost no accountability to be honest with their customers. They aren’t real estate agents, therefore they need not worry about losing any type of license, if they are dishonest. The fine print of the contracts absolves them from any liability. The distance people travel to attend these timeshare presentations is another way they can get away with their lies. Very few people from Salt Lake will return to Vegas to find the lyer and beat down their door. Trust these people even less then you would a used car sales person. Save your self the lies. If you want to purchase a timeshare, buy your timeshare on the open-market, at places like sellmytimeshernow.com. The thousands you save will apply to many more free trips or false incentives then they can ever offer.
I’m still not a fan of timeshares over traditional real-estate that you own outright, however, there are timeshare bargains to be found, especially in an economic down-turn. If you have already bought your timeshare from Westgate and you want to get out of it, my recommendation is to wait a year (if you can) until the economy picks up again, then list your timeshare on one of the sites listed on the side-panel.
Story Update: We have now completed our timeshare battle against Westgate in Miami, Florida. In this installment we gain access to one Westgate executive who admits that thier advertising is dishonest. Read the final installment of our popular series released September 10th, 2008 here
Reader Comments
Doug KleinMy wife and I purchased a unit at Flamingo Bay in Las Vegas in December 2005. Due to an extended illness, we used the unit for the first time , Feb. 2009.
When we purchased, we were shown only one unit, a deluxe two-bedroom. There was no mention during the presentation of other unit types, sizes or styles.
When we arrived for our vacation, we were given a much smaller, and much more poorly appointed unit, a standard two-bedroom. We immediately complained and were told that was what we owned, and there was nothing that would be done for us.
Our contract apparently was switched to a different unit which we had no idea existed.
There are two points that are especially interesting: The sales person who told me that I was stuck told me that switching a contract was “standard operating procedure”. When I met with the property’s GM, he told me that he “hadn’t heard of the issue with the two bedrooms, but had with one-bedroom units”. There was a witness to the meeting with the GM.
At this point, I’d really like to get out of the contract with these people. They are dishonest, know it, and don’t care.
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2 Comments so far:
Please forward me info so I can fight and get my money back, We have been ripped Off and I’m pissed off.
For the past several months We have tried to get rite afterward we are unable to make money on it as they promise we could. They lied to us and I want my money back, I want to join the Class Action Law suits. Please send me info on how to put my name on the list.
I want the Lawer the Angry French woman is using?
America.. She is NOT USING A LAWYER! It is Western Capital and its CEO, Robert Paisola... join the fun.. robert@robertpaisola.com