On December 23, 2016, the state of Arizona Attorney General announced an $800,000 settlement with Diamond Resorts Corporation to resolve allegations of Consumer Fraud Act violations.
The state of Arizona received hundreds of complaints against Diamond Resorts. Those complaints were about deceptive sales practices, oral misrepresentations and false statements during timeshare sales presentations. According to the attorney general, these allegations of misrepresentation were related to:
– Annual increases in maintenance fees;
– Membership resale and buy-back programs;
– Timeshare membership resale market;
– Ability to rent timeshare vacations; and
– Discounts on other travel needs.
Under the court-confirmed settlement, Diamond did not admit to any wrongdoing, but did agree to change its business practices and allow qualifying timeshare owners to return their timeshare interests to Diamond with no further obligations.