PHOENIX (Legal Newsline) — Arizona
Attorney General Mark Brnovich announced Dec. 23 that Diamond Resorts Corporation has agreed to settle for $800,000 in a case involving allegations of customer
Diamond Resorts is a timeshare sales company with resorts in the United States and
international locations. According to Brnovich’s office, the company used deceptive sales practices.
During timeshare sales presentations, the company allegedly made oral
misrepresentations and false statements.
Brnovich argued that Diamond
Resorts made misrepresentations about annual maintenance fee increases, membership resale and buy-back programs, timeshare membership resale
markets, the ability to rent timeshare vacations and discounts on other travel
Brnovich’s office charged Diamond
Resorts with violating the Arizona Consumer Fraud Act. As per the
settlement agreement, Diamond will need to make changes to its business
practices. The settlement also includes the creation of a relinquishment
program, wherein consumers can return their timeshares if they want to and have
no further obligations.
Of the $800,000 it will pay
the Attorney General's Office, $650,000 will go toward consumer restitution while $150,000
will go toward attorney fees and costs.