For Immediate Release: December 23, 2016
Attorney General Brnovich Announces $800,000 Settlement with Diamond Resorts
Settlement Agreement Resolves Allegations of Consumer Fraud Act Violations
Attorney General Mark Brnovich announced today that the State of Arizona has entered into a settlement agreement with Diamond Resorts Corporation, a timeshare sales company with resorts located in the United States and internationally. The assurance of discontinuance requires Diamond to pay the State a total of $800,000, of which $650,000 will be used for consumer restitution and $150,000 for the State’s attorneys’ fees and costs. The assurance also includes a relinquishment program, which requires Diamond to allow qualifying consumers, who no longer want their timeshares, to return them to Diamond with no further obligations.
The State has received hundreds of consumer complaints against Diamond Resorts. Consumers complained that Diamond used deceptive sales practices and made numerous oral misrepresentations and false statements during timeshare sales presentations. Some of the alleged misrepresentations are related to:
- Annual increases in maintenance fees;
- Membership resale and buy-back programs;
- Timeshare membership resale market;
- Ability to rent timeshare vacations; and
- Discounts on other travel needs.
The Arizona Attorney General's Office alleged that Diamond employees’ actions and statements violated the Arizona Consumer Fraud Act.
Under the settlement, which is subject to court approval, Diamond agreed to make a number of changes to its business practices that will benefit consumers, including requirements to make specific disclosures during timeshare sales presentations.
The relinquishment program will be available to qualifying consumers who no longer want their Diamond Resorts timeshares. To be considered for the relinquishment program, consumers must: (1) no longer want their Diamond timeshare; (2) have purchased their timeshare after 2011 and prior to January 22, 2017, and (3) file a complaint with the Attorney General’s Office within 120 days after the court signs the order (deadline expected to occur near the end of April / beginning of May) .
To file a complaint against Diamond, or if you believe you have been the victim of consumer fraud, you can file a consumer complaint by contacting the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6504, or outside the Phoenix and Tucson metro areas at 1(800) 352-8431. Bilingual consumer protection staff members are available to assist. Consumers can also file complaints online by visiting the Attorney General’s website at https://www.azag.gov/complaints/consumer.
This case was handled by Assistant Attorney General Alyse Meislik.
For additional information, members of the media may contact Ryan Anderson at (602) 542-8302 or Ryan.Anderson@azag.gov.
To view a copy of the Assurance Click here.