Minnesota Attorney General Keith Ellison has announced settlements with three companies—Encore Law Inc., Last Resort Consulting, and Tradebloc—that were found to have violated Minnesota's "debt settlement services" law. These companies offered "timeshare exit" services, charging large upfront fees without proper licensing, and making potentially misleading claims about their services. The settlements will result in $269,378 being refunded to affected consumers.
Ellison stated, "I hate to see unethical companies promise help to Minnesotans stuck in costly timeshare contracts, only to rip consumers off again." He emphasized the importance of these settlements as a warning to other companies that non-compliance with the law will lead to accountability.
The Attorney General urged caution among Minnesotans regarding timeshare exit companies, particularly for older individuals. He advised that charging an upfront fee for debt-settlement services is illegal in Minnesota and encouraged those encountering issues with such companies to contact his office or the Minnesota Department of Commerce.
The Attorney General’s Office receives numerous complaints annually about timeshares, which are shared ownership arrangements for vacation properties. Common grievances include excessive maintenance fees and difficulties in booking reservations or transferring ownership.
A growing industry of "timeshare exit" companies has emerged, often contacting consumers through mass mailings and advertisements. These businesses have been criticized for high-pressure sales tactics and false promises that can worsen consumer situations.
In November 2022, the Federal Trade Commission and Wisconsin Attorney General filed a lawsuit against several timeshare-exit companies for deceptive practices affecting mostly older adults. The litigation continues, with one involved company operating in Minnesota.
Ellison also warned against "timeshare resale" scams where scammers pose as real estate agents claiming they can sell a person's timeshare. These scams often involve upfront payments under false pretenses.
Consumers facing burdensome timeshares are advised to file a Consumer Assistance Request Form with the Attorney General’s Office or report fraud to the Federal Trade Commission. The Minnesota Department of Commerce oversees the sale and marketing of timeshares in the state.
Minnesota residents can contact the Attorney General’s Office online or by phone for more information on these issues or assistance with filing complaints related to timeshares.