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Maine AG files lawsuit against vacation club

By Bryan Cohen | Dec 18, 2013

AUGUSTA, Maine (Legal Newsline) - Maine Attorney General Janet Mills announced a lawsuit Monday against a vacation club, its associated businesses and its principals for allegedly engaging in deceptive practices in relation to a vacation club.

Festiva Hospitality Group allegedly sold points to consumers for membership in a vacation club during high pressure sales presentations. The consumers were allegedly told they could use the points to take vacations at any time in Festiva resorts throughout the country. After signing a 40-year contract, consumers allegedly found it was impossible to book a vacation through Festiva due to the lack of accommodations.

Festiva also allegedly sent bills for higher and higher maintenance fees, did not let consumers carry over points from one year to the next and failed to let consumers cancel their memberships.

"Festiva pressures Maine consumers into buying an expensive but basically worthless product using misleading tactics," Mills said. "Festiva tells them membership in its vacation club is a convenient and inexpensive way to vacation, but the reality is exactly the opposite. Consumers end up paying too much money for too long a time for something that never materializes. Festiva promised dream vacations but delivered deception."

The lawsuit requests that the court order reimbursement to consumers, civil penalties and an injunction against the allegedly deceptive practices.

Other states are currently taking legal action against Festiva Louisiana.

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