The defendants run into problems when they charge property owners up to $2,500 in advance, but fail to deliver on their promises. The FTC notes in the complaint that the defendants strung along timeshare owners with additional false claims. For example, perpetrators lure victims by claiming receipt of money from a sale or rental. In doing so, they convince victims to pay for additional closing costs and fees. The other problem is the company routinely denies and ignores consumer requests for refunds, according to the complaint.
FTC Lawsuit and Charges
Initially, the FTC files the lawsuit in December 2016. Shortly thereafter, the court halts the operation, freezes the defendants’ assets, and appoints an oversee for the assets. Moreover, the court ensures the defendants do not engage in future similar illegal conduct through permanent bans. The order also prohibits the defendants from collecting money from consumers who bought their timeshare resale services. Finally, it prohibits the defendants from selling or otherwise benefitting from the customer information.
