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AGs Go After Timeshare Exit Companies over Allegedly Fraudulent Marketing

  • Missouri AG Andrew Bailey filed a lawsuit against RSI, LLC and its owners (collectively, “RSI”), alleging that the timeshare-exit company violated the Missouri Merchandising Practices Act by making false promises and misrepresentations in the marketing of its services to consumers.
  • AG Bailey’s complaint alleges that RSI promised to help terminate consumers’ timeshares by a specified time or provide a full refund of their deposits, but in fact it regularly failed to meet the promised deadlines or reimburse consumers and caused some timeshare holders to go into arrears by directing them to discontinue their contractually-obligated timeshare payments in anticipation of cancellation. The complaint seeks an injunction prohibiting RSI from marketing or selling timeshare or timeshare-exit services, as well as civil penalties and restitution.
  • Wisconsin AG Josh Kaul separately announced a judgment against Missouri-based timeshare exit company Nationwide Transfer, LLC and its owners (collectively, “Nationwide”) over similar allegations of deceptive marketing of timeshare exit service that failed to deliver on their promises, in violation of Wisconsin direct marketing and telemarketing laws.
  • The judgment directs Nationwide to pay $231,079 in restitution to 49 consumers, a $230,000 civil forfeiture, and $105,752 in costs and attorneys’ fees.
  • These actions are the latest in a series of suits by AGs against timeshare exit companies, including a prior lawsuit brought by AG Kaul and the FTC against an allegedly fraudulent timeshare exit scheme targeting senior citizens.