Timeshares have always carried an air of controversy as some have felt deceived by pushy sales tactics and high-pressure situations. Now, the industry is seeing more justice for consumers who have felt like they’ve been deceived or defrauded in some way, which has turned the tables on timeshare companies, even if they are clear of fault.
Fraud claims have spiked in recent years and people who have invested in a timeshare who believe they were sold a bill of goods during the sales process are starting to take up lawsuits. For timeshare companies, it’s important to be aware of the risks that come with working in an industry that is starting to see more litigation and a touchier claims climate.
Have the Right Insurance
Not having a timeshare insurance policy, including such coverage as an umbrella insurance program, can add financial stress to a company that is facing some sort of legal jeopardy. Having insurance can protect a company’s finances and reputation during times of a claim, even if that claim turns out to not be true. Going through a legal matter on its own is just as harmful to a company as word will get out about the claims being made. This can have the negative effect of ruining a reputation to the point where companies aren’t in good standing with potential consumers, which in turn hurts possible business deals.
Deception and Misrepresentation
A class action lawsuit includes a single case filed by a group of individuals who have all fallen victim to the same type of crime from the same defendant, in this case, a timeshare company. In order for a lawsuit like this to be filed there has to be multiple plaintiffs all gathering around the same claim, which only points to more evidence of things like misleading claims, fraudulent activities, or misrepresentation of services.
A major claim made against timeshare companies when it comes to lawsuits is that these companies pressured individuals to purchase timeshare properties under deception. The more individuals who are able to come together to make the same claim, the higher the probability the courts will work in their favor, handing the timeshare company a major loss.
Accountability Playing a Big Role
Lawsuits are becoming more commonplace against timeshare companies and people are feeling confident to bring up their complaints. Consumer protection laws are making it completely transparent that those who feel they’ve been fraudulently drawn into a purchase have a friend in the legal system.
If an individual or group of individuals feel they have enough proof of deception or misrepresentation then timeshare companies have basically already lost their case, especially if claims are irrefutable and mounting.
Most cases are settled out of court and usually put the money that consumers spent back in their hands plus interest, which can be a sigh of relief for timeshare companies. But as mentioned above, .being known as a company that possibly deceived any amount of investors is not a good look and can put a black mark on the overall business. Timeshare companies need to be thinking long-term with these kinds of issues and make sure what they are supplying and offering up is indeed real and reputable.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (877) 807-8708 to speak with one of our representatives.