Criminal US timeshare exit company closed down and fined $2.5 million

US continues crackdown on rogue timeshare exit companies with successful prosecution of Missouri firm

Surge in consumer dissatisfaction with US timeshare causes rise of ineffective exit firms

Timeshare is almost universally acknowledged by financial experts to be a more expensive and restrictive way to holiday than through regular booking sites. The product can only be sold via aggressive marketing and sales operations. It costs an estimated average of $5075 to acquire each new customer, an expense which bears witness to the challenge of the sale.

When people return to use their holiday an try to complain about its deficiencies (usually a year later, after they have had time to consider the way the membership works) this is not a problem for the resort. Their 'in house' sales representatives use these complaints as a way to sell the beleaguered owners even more expensive upgrades, which in turn rarely work as promised. This subsequently triggers further complaints and upgrades, and so ad infinitum.

Many owners realise that they are trapped in an expensive cycle and their desperation to free themselves has led to an industry of firms promising to help them escape the seemingly ironclad contracts.

Unfortunately many of these firms are nothing more than opportunistic fraudsters at worst, or in cases where they mean well they lack the experience and ability to complete the task. In either case the timeshare victim loses out.

Relief Solutions International

One such company in Missouri, Relief Solutions International (RSI), was successfully sued by the Wisconsin DOJ this year and ordered to refund all of their Wisconsin customers. An additional fine of $2.5 million was imposed by the court.

The two owners, Burton Cummings and Philip Russell Turner II were sued along with the company, removing the limited liability protection generally afforded by an LLC. The case was originally referred to the Wisconsin DOJ by DATCP (the Department of Trade and Consumer Protection) in Wisconsin.

Attorney General Josh Kaul stated: "This judgment provides relief for Wisconsin consumers and holds the owners of this timeshare exit company accountable. Thank you to those at DOJ and DATCP whose stellar work led to this result. We urge Wisconsinites who hired Relief Solutions International to contact our Public Protection Unit.”

The court ruled that thousands of RSI mailers sent to Wisconsinites inviting them to sales presentations were illegal. Many of those who attended ended up paying expensive fees for the timeshare exit services offered.

Randy Komanski, secretary for the DATCP issued the following statement: “I am pleased that Relief Solutions International is being held accountable for the harm they did to Wisconsin consumers, and that affected consumers will receive refunds. I encourage anyone who is considering a timeshare purchase to carefully read and fully understand their contract before signing. Unfortunately, it can be very difficult to sell a timeshare or exit a timeshare contract, which can leave consumers vulnerable to being taken advantage of.”

Both defendants were also banned from selling or marketing timeshare exit products, or any other kind of marketing in Wisconsin without prior permission from DATCP

Expert comment

"Sadly the huge volume of extremely sophisticated high pressure sales operations in the US creates more and more unhappy timeshare owners every day," says Greg Wilson, CEO of European Consumer Claims (ECC). "In turn this fuels the market for people needing a safe and reliable way to escape those contracts."

"The size of that exit/relinquishment market attracts a significant volume of dishonest or incapable firms charging a lot of money for solutions that never materialise.

"This leaves the timeshare owner in an even worse position than they were originally in. They still own the timeshare with its associated expenses, but now they are several thousand dollars worse off even than before thanks to these opportunistic criminals"

So who can you trust?

If you own an unwanted US timeshare and don't know where to turn, ECC is here to help. We have over 8 years experience in both relinquishing unwanted contracts (and claiming compensation in certain cases where the client was mis-sold) both in the US and aroid the world. Our hundreds of online reviews are nearly all five star, we have been covered positively by the world's most credible media and our clients even post (externally audited) video reviews.

Contact our team to discuss your options, obligation free and in confidence.