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 deception.
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 needs.
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.