Asheville News

Asheville-based time share broker tagged with fine

Jason Sandford June 26, 2008

Jason Sandford

Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.

JEFFERSON CITY, Mo. (Legal Newsline)-A North Carolina-based time-share broker has agreed to pay about $339,000 to settle claims by the Missouri attorney general that the company mislead customers into buying time shares.

Attorney General Jay Nixon filed the settlement agreement Wednesday in Cole County Circuit Court. Under the agreement, Festiva Resorts LLC will pay $324,393 in restitution to consumers, $5,000 in civil penalties and $10,000 to the state of Missouri.

Festiva Resorts LLC allegedly used false and misleading sales tactics to sell time shares at the Cabins at Green Mountain near Branson, Mo.

Nixon filed a lawsuit in November 2005 against the Asheville, N.C -based company alleging it violated Missouri consumer protection laws by misleading customers into buying time shares.

The lawsuit alleged that Festiva lured customers by promising to, among other things, help them sell other time shares they owned, help them rent out time shares they bought from Festiva, and help them get discounted deals on condo rentals in attractive locations.

The company was also accused of rushing consumers into sales by creating a high-pressure sales environment.

Under the agreement, Festiva agreed to stop using false and misleading sales pitches to market and sell its time shares.

Jason Sandford

Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.

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1 Comment

Festiva Resorts June 27, 2008

During the time the Missouri Attorney General’s office (MOAG) allegations took place, Festiva Resorts had entered into an agreement with a third party company that provided sales and marketing services for Festiva Resorts in Branson. Any practices engaged in by that company that corresponded with the MOAG’s allegations are contrary to Festiva’s corporate policies.

During the MOAG’s investigation, Festiva Resorts fully cooperated with their office. The relationship between Festiva Resorts and said company has since ceased, and Festiva Resorts no longer uses outsourced companies for any sales and marketing services.

To put numbers into perspective, during the nearly five years the third party vendor provided sales and marketing services to Festiva Resorts, the vendor saw in excess of 75,000 customers and generated approximately $125 million in vacation ownership sales.

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