Will there be another Resort Club Law Suit? NYS Attorney General Eric Schneiderman started procedures on Friday, July 25, 2014 to forbid any kind of further sale of timeshares by Midtown Resort’s age-old hotel, The Resort Club.
The legal action was prompted in an initiative to look into problems submitted by a number of Resort Club timeshare members, that asserted they were blatantly misguided into making the acquisition with pledges of accessibility to the hotel during desirable weeks, as well as the promise that rooms at the hotel were to be available to timeshare owners only, not the general public.
The state’s attorney specified in a public statement that the investigation was in response to the certain Resort Club complaints by timeshare owners who were denied usage of weeks they were promised, while the hotel kept rooms from being used by timeshare owners and instead offered them to rent out to tourists at high rates.
Added problems were made versus The Resort Club, consisting of boldy improving upkeep charges to the point where proprietors were required to offer their timeshares for $1, simply to ease their upkeep charge obligations.
Schneiderman acquired an order from the court prohibiting any sort of additional sales of timeshares at the Resort Club. The resort’s reps and owners were instructed to present themselves in court later that week to give additional info about how they perform their sales presentation and other details about their course of operations.
Resort Club timeshare owners purchased their timeshares to make use of the hotel property for a given amount of time annually. Troubles arising from the sale of these timeshares at the hotel are due to the truth that although there are just 286 guest rooms overall, timeshare rights have actually been contracted in sale to over 14,000 members. This causes a scarcity of available spaces on prime getaway weeks, and also the truth that before purchase the proprietors declared that they were said to that spaces would simply be for using timeshare proprietors, when actually a block of spaces are provided to the general public … more minimizing accessibility to owners.
The Attorney General disclosed that he’d arranged an undercover operations investigation earlier this year to fully document the sales presentation executed by the Resort Club, which they bill as the “Vacation Ownership Experience.” The undercover detectives located evidence that the club’s sales techniques used exactly what is labelled as the bait and switch scam, where customers were assured that as owners, they could conveniently reserve areas at the times they choose, and that rooms at the Resort Club were not offered to the basic public, i.e. non-owners.
The club’s sales strategy documents, however, disclosed that spaces were, in fact, rented to the public on a regular basis, depriving timeshare owners of their rights to use the property as they had paid to do. The attorney general’s investigation revealed the club has made a policy of unlawfully keeping back the real specifics of the operating strategy from purchasers up until well after they ‘d actually authorized contracts and obtained their memberships.
On behalf of the Resort Club’s development firm, the Continuum Company, Mr. Eric Yaverbaum made a public statement revealing that the company plans to work together fully with the legal examination. Among those named to show up for the legal hearing is Ian Bruce Eichner, founder of the Continuum Company.
Certain Resort Club timeshare members have actually specified that in order to also have a hope of reserving a room at the hotel, they have to book their stay 9 months or longer ahead of their desired arrival. As well, there has actually been an excessively high boost in the annual maintenance charges over the years that has actually made owning the timeshare an unanticipated financial disaster that lots of owners could not sensibly justify.
Various other timeshare owners at the Resort Club also stated that they’d had their timeshares for over ten years and were never able to book rooms when they desired, paying upwards of $2,000.00 a year for a timeshare that was basically pointless to them. Timeshare owners stated they experienced a 200 percent boost in linked ownership costs over the preceding decade.
Resort club timeshare owners have actually brought legal suits against the NYC resort in the past. In the court of appeals, it was decided that the resort had, in truth, divulged the details to timeshare owners that their guest rooms may actually be rented to any person at the management’s discernment. However, this is once again being brought into question.
While resort receptionists would state without compromise that there were no vacancies when timeshare owners would call to reserve accommodations, the hotel was simultaneously taking reservations from non-owner tourists for upwards of $450 per night.
While it would be nice to believe that this recent legal action and resulting Resort Club Law Suit would deter timeshare developers from lying to, misleading and otherwise defrauding timeshare owners and prospective buyers in the future, it is unlikely. Chances are this case will end much like all of the others…resulting in little more than a fine or small restitution to be made, while the timeshare resorts continue to fleece the public with shady business practice and inordinately inflated “maintenance fees.”
If you have a timeshare contract and are finally tired of being lied to and taken advantage of, get out now! Make this the year that you refuse to pay for something that you were tricked into buying. Fill out our form to talk to a timeshare expert who will guide you toward the light of Timeshare Freedom and be done with the anxiety of rising fees and financial obligations.