1-800-614-5288

Resorts Accused of Illegally Charging Timeshare Closing Costs in MO.

picture-of-invoice-for-timeshare-closing-costs-illegally-charged-by-resort-eliciting-class-action-settlement-in-missouri-voc

Despite the millions of tourists that travel through Bransen, St. Louis and the land of the Ozarks every year, the Missouri timeshare industry continues to boom with deceit. Because of this, many visitors are swindled into buying a vacation property they don’t exactly understand. Most find themselves stuck in something they don’t need or can’t use the way they had hoped. But when timeshares allegedly start illegally charging timeshare closing costs, like Resort Sales Missouri and Spinnaker Resorts are being accused of, then something has got to give.

Last year, Midwestern vacation owners filed a class action lawsuit against the above timeshare sales organizations for allegedly breaking Missouri state law by assessing closing cost fees. Closing costs for a timeshare may be charged when a timeshare transfer occurs or is sold for documentation preparation and/or legal fees – but doing so is only allowed in states where it’s permissible. The proposed $1.3 million class action settlement aimed to benefit owners that made the purchase on or after 6/1/2014.

Unlike some class action settlements, those purportedly victimized by the sales process didn’t have to do anything to receive more information. The plaintiff’s representation added nearly 7K class members to the lawsuit automatically. Owners were notified of their inclusion in the class action order and given the ability to exclude themselves within 30 days. Each confirmed member of the class action suit will receive a monetary payment based on the amount of the timeshare closing costs charged by the defendant.

Details of the Settlement and Payout Schedule.

The final hearing for Darrell and Kathleen Thompson v. Resort Sales Missouri Inc. and Spinnaker Resorts Inc., (Case No. 1746-CC00203, in the Circuit Court of Taney County, Missouri) was late last year. Defendants found themselves on the hook for $1.4 million and were ordered to begin payments within 10 business days of the “Preliminary Approval Date” by depositing $19,976 into a trust account of the Claims Administrator. Once this went into effect, they had 10 more business days to deposit the remaining balance of $1,380,024. Hopefully this sends a message that charging timeshare closing costs is a terrible idea in Missouri.

Class Action Lawsuits for Timeshare Closing Costs Are Costly.

The initial balance was portioned to cover “all estimated fees and expenses necessary” for class notice or administration incurred and approved by the court. $896,357 of the second payment went towards “Net Settlement Proceeds” and nearly $477K covered litigation expenses ($10K) and attorney fees (33% of settlement). Remaining totals were used for “Incentive Awards” and other claims administration funds. Any funds left unclaimed will be “dispersed in cy pres, with the court accepting suggestions on the organization to whom such additional funds shall be dispersed.”

The court was given 30 days to terminate the agreement if the settlement wasn’t honored or further problems arose. The State’s Attorney General, Eric Schmitt, didn’t provide much insight as to why developers were charging timeshare closing costs. “Missourians sometimes are targeted by real estate developers and resort communities to buy vacation timeshares,” he said. Until timeshare companies are held accountable for arguable practices, it’s hard to expect this type of activity to cease anytime soon.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on google
Google+
Share on tumblr
Tumblr
Share on reddit
Reddit

Check Your Eligibility

Complete our eligibility form to see if you qualify for our timeshare cancellation program. You deserve to work with a company that knows how to get out of a timeshare this time.

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out the form to get a Free Consultation

More Posts

ginger gal staring at cell phone in blouse holding clipboard with timeshare dri contract dispute

Diamond Resort Owners Accuse Timeshare Company of Crafty Overcharges.

Before the pandemic even started, and timeshare resorts found themselves in a backpedal, Diamond resort owners were already feeling a little slighted. According to a 91-page class action lawsuit that was proposed this past August, Diamond (DRI) has supposedly been billing its members for the “burden of operating expenses” with “inflated annual fees” in an “unlawful” fashion.

Read More »
traveler staring at no money in wallet when paying for bill and can't pay timeshare dues needs extra income in 2021

7 Ways to Pay Timeshare Dues With Limited Resources in 2021.

In what could be a year of limited resources, losses and compiled debts; hope is most certainly fleeting. At the same time, this is America. Unlike other countries throughout the world, capitalism is supposedly on our side. Many of us are equipped to not only help others through tough times, but progress monetarily. All you need is your back against the wall to make something happen.

Read More »
aerial-view-of-hawaiian-resort-on-island-coastline-that-shut-down-bought-out-fired-450-employees-due-to-covid-19-pandemic-2021

Marriott Beach Club in Hawaii Terminates 450+ Staff Members.

While many of us will be able to pick up where we left off, some are simply hoping they’ll be able to pick up the pieces. Those that lost tenured jobs (especially in the travel industry) will struggle– especially if travel restrictions remain. Because of this, resorts like the Marriott Beach Club in Hawaii are processing more layoffs to kick off the New Year.

Read More »
Ebook Cover
Download Our Free Guide to Understanding How it’s Possible to
Cancel Your Timeshare Contract!

Written by the top Real Estate Litigators in the Timeshare Industry.