PHOENIX – The deadline is quickly approaching for Arizonans to be released from their Diamond Resorts timeshare agreement. The Timeshare Relinquishment Remedy program is part of an $800,000 consumer fraud settlement between Diamond Resorts Corporation and the Arizona Attorney General's Office.
The settlement is the result of an Arizona Attorney General's Office consumer fraud investigation after hundreds of consumers alleged Diamond Resorts used deceptive sales practices during timeshare sales presentations. Diamond Resorts operates timeshare properties in more than 350 locations all across the country and the world, including resorts in Sedona, Scottsdale, and Pinetop.
Consumers must file complaints with the Arizona Attorney General’s Office by May 23, 2017 to be considered for the Relinquishment Remedy Program which allows qualifying consumers to return their timeshares to Diamond with no further obligations.
To qualify for the program:
- Consumers must have purchased Diamond memberships between January 1, 2011 and January 23, 2017.
- Consumers must have either made their purchase in Arizona or have been living in Arizona at the time of the purchase; and
- Consumers’ complaints must include a detailed description of any misrepresentations, false or deceptive statements, and/or false promises that Diamond’s employees made during the sales presentation.
Some of the alleged timeshare sales misrepresentations related to:
- The amounts maintenance fees could increase annually (in some cases up to 25% each year);
- Consumers' ability to resell timeshares to the public;
- The existence of Diamond buy-back programs;
- Consumers' ability to rent out their timeshares for a profit; and
- Discounts on other travel needs.
The settlement includes consumer restitution and penalties and requires Diamond to make a number of changes to its business practices, including requirements to make specific disclosures during timeshare sales presentations.
Attorney General Mark Brnovich offers the following tips for consumers attending timeshare presentations:
- If you are offered a free gift or free tickets, be aware that most timeshare offers include a lengthy sales presentation to qualify for the gifts.
- In Arizona, timeshare companies are prohibited from requiring you to attend a presentation that lasts longer than 120 minutes to receive your free gift.
- If a presentation is too high pressure, you should leave.
- Read any contract before you sign it and have it reviewed by an attorney. All promises made to you by the salesperson should be in the contract.
- Find out about your ability to cancel the contract or the right to cancel. Each state has specific right-to-cancel laws.
To file a complaint against Diamond Resorts, contact 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. Consumers can also file complaints online by visiting the Attorney General’s website at https://www.azag.gov/complaints/consumer.
Assistant Attorney General Alyse Meislik handled this case.