fbpx

Westgate Timeshares Pressure Tactics and Overselling Class Action

This class action takes issue with methods used in the sale of timeshares, by Westgate Resorts, Ltd. and ten other Westgate companies, and two Central Florida Investments companies. The complaint alleges that the companies use a “high pressure scheme” to make sales, without disclosing to customers all legally-required information, and without providing sufficient access to the timeshare properties.

The class for this action is all residents of the US and its territories who bought, from Westgate, between January 1, 1989 and the date of class certification in this case, a “floating use plan” vacation timeshare property at any of the following properties:

  • Westgate Vacations Villas Resort, Westgate Towers Resort, or Westgate Town Center Resort in Kissimmee, Florida
  • Westgate Blue Tree Resort or Westgate Palace Resort in Orlando, Florida
  • Westgate Branson Woods Resort, in Hollister, Missouri
  • Westgate Flamingo Bay Resort in Las Vegas, Nevada
  • Westgate Smoky Mountain Resort in Gatlinburg, Tennessee

The complaint alleges that the Westgate companies sell “many more than 26 [two-week] timeshares in each unit, exponentially increasing its profits while knowing that the unit will rarely or never be available for purchasers to use [it].” It claims that buyers are not told it will be difficult to sell their timeshares.

The companies also loan consumers the money to buy the timeshares. According to the complaint, the promissory notes for these loans are turned into securities, which are then sold in financial markets. Timeshare owners must also pay maintenance fees.

The complaint refers to two reports on timeshare sales tactics, from Consumer Reports and the New York Times. The complaint says, “Among the tactics used by one prominent time share business: ‘TAFT’ days, where employees were encouraged to ‘Tell Them Any Frigging Thing’ to make a sale, as long as they didn’t put it in writing.”

Florida requires timeshare sellers to provide buyers with certain information, but the complaint claims that the Westgate defendants literally hide information in “secret pockets” in the folios they give buyers.

Among the things that the Westgate companies don’t tell buyers, the complaint claims, is that “they are not purchasing a share in a specific unit but are instead buying into a ‘floating use plan’ [and] they fail to adequately disclose how the ‘floating use plan’ actually works…”

Furthermore, the Westgate companies do not tell buyers that it oversells its properties and otherwise makes them less available, “for example, by renting the properties to non-owners, using the properties as model units, selling to purchasers when no units are available to be deeded, and closing units for maintenance[.]”

Another pressure tactic, the complaint claims, is requiring that customers sign documents before they have had a chance to read them.

Among other things, the complaint alleges that sales agents have been told to lie to customers to make sales and subject potential buyers to sales pitches that can last as long as eight hours.

Article Type: Lawsuit
Topic: Real Estate

Most Recent Case Event

Westgate Timeshares Pressure Tactics and Overselling Complaint

November 22, 2021

This class action takes issue with methods used in the sale of timeshares, by Westgate Resorts, Ltd. and ten other Westgate companies, and two Central Florida Investments companies. The complaint alleges that the companies use a “high pressure scheme” to make sales, without disclosing to customers all legally-required information, and without providing sufficient access to the timeshare properties.

Westgate Timeshares Pressure Tactics and Overselling Complaint

Case Event History

Westgate Timeshares Pressure Tactics and Overselling Complaint

November 22, 2021

This class action takes issue with methods used in the sale of timeshares, by Westgate Resorts, Ltd. and ten other Westgate companies, and two Central Florida Investments companies. The complaint alleges that the companies use a “high pressure scheme” to make sales, without disclosing to customers all legally-required information, and without providing sufficient access to the timeshare properties.

Westgate Timeshares Pressure Tactics and Overselling Complaint
Tags: Deceptive Sales Practices, Did Not Make/Receive Proper Disclosures, Real Estate, Timeshares, Unfair Business Practices