Timeshare Lawsuits and How They Can Affect Your Exit

If you are a timeshare owner, it’s more likely than not that you have money problems. Timeshare contracts pile on fees year after year, often leaving timeshare owners in serious debt that went unmentioned in breezy, deceptive timeshare sales presentations. The weight of ever-increasing maintenance fees, mortgages, and other costs pile up, leading more and more frustrated owners to timeshare exit companies.

The need for relief is real and often immediate. But you still have to be careful when selecting a timeshare exit company. It is a sad truth that there are many exit companies that have only made things harder for timeshare owners through their own bad practices and mistakes. All too often, the problems caused by these companies often become lawsuits.

Timeshare lawsuits against an exit company don’t always mean that the company did something wrong. People who sue a company can be wrong or even file frivolous lawsuits. But whether there is a private lawsuit from one client or company, a class action, or a matter filed by a state’s attorney general, a timeshare lawsuit can mean trouble and delay for an exit company’s clients.

In this article, we will take a look at the kinds of timeshare lawsuits that can be filed against exit companies as well as what those lawsuits mean to the people seeking a timeshare exit. We’ll also look at some timeshare exit companies and the legal problems they have dealt with. Finally, we’ll talk about how Centerstone Group, a premier and respected name in timeshare exits, can help you with a speedy, ethical, and legal timeshare exit.

Different Kinds of Timeshare Lawsuits and How They Can Affect a Timeshare Exit

Timeshare lawsuit: close up shot of a gavel and a mallet

When thinking about timeshare lawsuits against exit companies, the first question you have to ask is: Who are the plaintiffs? In a civil lawsuit, a plaintiff is the one that files a lawsuit. Depending on who filed, it could mean vastly different things for your timeshare exit company.

  1. A Lawsuit Filed by a Single Person or Business

A lawsuit with one plaintiff and one defendant is perhaps the most common and simplest kind of lawsuit, though that doesn’t always mean “cheap.” This can often be a case where a customer is unhappy and wants their money back. It could also be a case where the plaintiff alleges that they got bad advice and, as a result, lost more money or even their timeshare interest in a foreclosure.

Unhappy businesses might also file a lawsuit against an exit company, as when Wyndham Vacation Resorts sued Wesley Financial Group for practices that it felt interfered with its contracts.

Keep in mind that one lawsuit only tells you limited information. They don’t always require a ton of time or resources, though individual cases can vary widely. One lawsuit against an otherwise successful company with happy customers might not be a problem.

  1. A Class Action

Class actions are different from normal lawsuits in that they don’t have just one plaintiff. They have an entire class of them; that is, a class action is brought by an entire group of people who aren’t individually named. Class actions are usually much harder to bring in a court of law, but they also demand much more attention and money from a company that has been sued.

A class action might be brought on behalf of a group of customers who were all overcharged for a certain service, for example, by $50 each. Though that amount isn’t much per customer, if you have a class of 10,000 people, the company is looking at a potential judgment of half a million dollars. If there was fraud involved, punitive damages could also be awarded against the company, bringing a total verdict into the millions.

Consider also that defending against a class action will cost a timeshare exit company money. Class actions require large legal teams to fight in court, respond to document requests, and conduct other discovery. It is not unheard of for such cases to cost as much as $1 million per year in fees and costs alone!

As you might imagine, these kinds of cases can be extremely destructive to companies, leading to financial insolvency and bankruptcy.

The clients of those companies may have to bear the brunt of that financial impact. Companies with their resources drained can then be unable to help their clients get out of timeshares. If you find that your timeshare exit company is the target of a class action lawsuit, you should seriously consider whether going with that company is the best way forward.

  1. Lawsuits by State Attorneys General

Another major kind of lawsuit you must consider is one brought by the attorney general of any state. State attorneys general are often a crucial line of defense in consumer protection in their respective states. If a timeshare exit company has committed widespread fraud, misrepresentations, resale scams, or other deceptive practices, an Timeshare attorney general will often file a lawsuit to protect the public.

These lawsuits can cost millions, or even hundreds of millions, of dollars in fines and penalties and can result in businesses being closed down. If you find that your timeshare exit company has been sued by a state attorney general, it is crucial that you read a copy of the complaint and consider obtaining services elsewhere to ensure that, one, you are not victimized and, two, that your exit is handled in a timely and professional manner.

What Kinds of Timeshare Lawsuits Have Been Filed Against Exit Companies in the Past?

Pile of files and boxes in a room

The timeshare industry is no stranger to lawsuits, and exit companies are no exception. Some, however, have been the subject of much more legal attention than others.

Timeshare Exit Team, for example, was sued by the Washington Attorney General for misrepresenting its services to clients. It was also alleged to have counseled its clients to undertake dangerous practices with catastrophic consequences, like failing to pay mortgages and maintenance fees.

Vacation Consulting Services was an exit company that, in 2023, settled a timeshare lawsuit with the Missouri Attorney General that banned the company from offering exit services in the state of Missouri and required an $800,000 payout.

Timeshare Compliance was the subject of a class action complaint in South Carolina. That lawsuit alleged that the company engaged in high-pressure and unethical sales practices against timeshare owners. While those allegations have since been settled, the existence of that lawsuit should give you pause and lead you to further consider the company.

What’s more, Timeshare Compliance has also been the target of lawsuits filed by Wyndham, Diamond Resorts International, and Bluegreen Resorts with claims similar to those asserted by Wyndham against Wesley Financial. As with the Wesley lawsuit, those cases are filed and litigated by experienced attorneys, and they can drain precious resources from Timeshare Compliance, and that could hurt the service its clients would receive.

Centerstone Group: A Timeshare Exit Company You Can Trust

Couple signing a contract

The vacation ownership industry is plagued by predatory companies and expensive timeshare lawsuits. It can be difficult to know whom to trust. Centerstone Group stands head and shoulders above other exit companies as an example of a transparent, ethical, and zealous advocate for the rights of people who have been taken advantage of by timeshare developers.

Centerstone Group is a premier timeshare exit company with a sterling reputation. It has an A+ rating with the Better Business Bureau (BBB) and a reputation for completing timeshare exits in a legal, ethical, and responsible way.

Whether you need a timeshare cancellation, our proprietary pressure campaign, a receiver, or even assistance from an associated lawyer or law firm, we can help you in achieving freedom from your timeshare while giving you peace of mind.

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