In Saturday’s The Timeshare Authority blog, we told you about the Utah lawsuit that ruled in favor of a small group of consumers and against Westgate timeshare. The consumers, represented by Consumer Protection Group, had received gift vouchers to be used for airfare and lodging in Anaheim, California. According to the attorney representing Consumer Protection Group, the vouchers were simply too difficult to redeem, and they left the voucher holders with something that was of little to no value. The judge apparently agreed, ruling in favor of the consumer group and handing down a verdict of $1 million in punitive damages against Westgate timeshare.

As expected, Westgate will appeal this verdict. According to ParkRecord.com, Michael Marder, an attorney for Westgate based in Orlando, Florida, explained, “A number of them (the people who received the vouchers in exchange for attending the timeshare tour) had made a habit of visiting other timeshare resorts and receiving gifts, and based upon the testimony, they had no intention to buy anything; they were coming solely to get a gift. Some of these people came three or four times to other places.”

Westgate Timeshares Respond

The Timeshare Authority mentioned on Saturday that, “there are always two sides to every story,” and it is no surprise that the other side of this story is now coming out …

One thing is certain, you can bet that we have not heard the last of this situation. So here’s our hope: let’s get this resolved fairly, and let’s get this resolved quickly, because if ever we all need to be working together in this country instead of fighting among ourselves, the time is now. There are many highly satisfied Westgate timeshare owners who would be quick to tell you that they are pleased with their vacation ownership through Westgate resorts.

New London, CT residents say they may have lost tens of thousands of dollars by buying timeshare at the Lighthouse Inn, which is currently in foreclosure. The total of timeshare sales at the resort is unclear, but could be as much as $2.5 million spent by consumers (many from the New England area) to buy timeshare at the historic resort.

According to TheDay.com Connecticut, “The Lighthouse Inn owes various creditors more than $2.5 million – in addition to whatever is left to pay on a $1.84 million loan that the inn’s owner, McGrath Hotels LLC, took out seven years ago from the Business Loan Center Inc. of New York City.” Reportedly, the New London city clerk’s office has no records of any timeshare sales being recorded in the city as deeds, except those at a nearby and unrelated timeshare resort, Water’s Edge Resort in Westbrook.

The more than 100-year-old Lighthouse Inn mansion is part of RCI timeshare exchange and ranked as a Gold Crown Resort. Currently it still appears as such in the RCI resort directory although the resort’s restaurant and accommodations have been condemned by authorities and closed. An auxiliary space, known as the Carriage House, remains open, although how this space is used is unclear.

Sell My Timeshare NOW has no inventory of timeshare resales or timeshare rental at this resort, although we do have timeshare properties available to buy or rent at the Water’s Edge Resort, a unique cluster of private villas on 15 acres of Connecticut coastline.

(Sources: The Park Record; Deseret News) The tightening of the credit market combined with the declining economy has already forced Westgate timeshares to lay off workers and to scale-back sales efforts. And just when they did not need more bad news, a Utah County Court has ordered Westgate timeshare to pay $1 million in punitive damages in a consumer related court case. The timeshare company is being held accountable for having attempted to attract prospective timeshare buyers to their Westgate Park City Resort, by using problem-ridden travel vouchers as bait.

An attorney representing the Consumer Protection Group says that the timeshare company defrauded consumers. “They weren’t telling them they were getting a voucher; they were telling them they were getting an Anaheim trip,” explained attorney Scott Boyd, who qualified that the trip was supposed to include air travel and lodging and have a value of approximately $500. Boyd explained, “For all timeshares, they have to get bodies through the door so they can do the sales. Now how different companies choose to get people through the door may tell you who’s reputable and who’s not so reputable in the industry.”

Here’s How the Westgate Timeshare Problem Started

People who toured Westgate timeshares in late 2000 and in 2001, received letters advising them that they may have been defrauded. More than 900 individuals responded to the Consumer Protection Group’s letter. In the end, 30 Utah residents (or 15 parties) made up the case against Westgate Resorts.

As is too often the case in such timeshare problems, people who toured at Westgate timeshare believed they were receiving a product (a gift) that in the end, turned out to be too problematic to use. Voucher holders were restricted from redeeming their trip during any weeks before or following 10 different holidays and they were required to depart only on a Tuesday, and return only on a Thursday.

Adding to the confusion and complexity of the ‘deal’ was the fact that the voucher holder had to kick in $135 upfront, and redeem the voucher within 21 days. While many people looked at the extensive restrictions and simply tossed out the vouchers, others complied with all the stipulations only to be told that the dates requested were not available.

After a three-week jury trial, the case was decided in favor of the plaintiffs. Attorney Boyd admitted that the individuals involved, “did not stand to make a lot of money,” but said that, “This is to make a point to the timeshare industry, to Westgate, that you cannot have a fraudulent scheme.”

Westgate reportedly has plans to appeal a final civil judgment. The timeshare company’s attorneys claim that it was an independent telemarketing firm that scheduled the timeshare tours, and that they (the telemarketers) had failed to warn callers of the travel restrictions.

The Timeshare Authority is not defending or condemning Westgate timeshares, as there are always two sides to every story. But the question does arise … if there were only 30 plaintiffs, which was defined as 15 couples, and they do, “not stand to make a lot of money,” then who do you think is receiving the lion’s share of the million dollar settlement?

Other recent posts on The Timeshare Authority involving Westgate timeshare:

• Bluegreen Timeshares and Westgate Timeshare Mogul Settle Pending Lawsuit
• Hotels, Timeshares, and the Bailout

17,000 people in the US will be diagnosed with primary brain cancer this year and another 100,000 will receive the diagnosis of secondary brain cancer. Dover, NH resident Christine Skidds is a brain cancer patient, just recently completing her radiation treatments. Christine is also a much loved mother, wife, sister, as well as friend to many in the Dover area … to her community she is not one more statistic … she is a reason to rally.

Last Saturday evening, Christine’s Crusade held a fundraising auction with dinner, entertainment, and dancing. One hundred and forty items were auctioned … everything listed was sold either at the live auction or through silent bidding. Nearly 300 people attended and organizers of the event say they were thrilled with the turnout and the results.

Items for the auction ranged from jewelry to tandem skydives, to piano lessons, Celtics tickets, car washes, Red Sox tickets, autographed sports memorabilia, and yes, a week of timeshare.

Sell My Timeshare NOW donated the use of a Wyndham timeshare in Florida, at the bidder’s choice of available Florida timeshare destinations. The donation enabled someone to enjoy a great vacation at a luxury destination for a very good price. Most importantly, it raised $700 for Christine’s Crusade.

We were grateful to be able to help Christine and her family, but this husband and wife, with two young sons, still have many challenges ahead. I urge you to go to Christine’s website, read her story, and to do whatever you can to help.

Christine’s online journal is available at:www.caringbridge.org/visit/christineskidds

Click here to read more about the fundraiser.