Diamond Resorts Class Action: High Pressure Timeshare Sales Deceptive

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A class action lawsuit filed against Diamond Resorts International Club Inc. claims the timeshare company made several misrepresentations when selling timeshares to California consumers.

“The terms contained within the timeshare contract are completely different from the terms offered and promised during the timeshare presentation,” the complaint asserts.

Plaintiffs Matt and Janet Finazzo state that they are residents of California who were owners of a “Monarch” timeshare.

In April of 2014, they attended a Diamond Resorts gathering labeled as an “owner’s update” meeting, but the plaintiffs say it was actually a high-pressure sales presentation for a different “Life Vacations” timeshare.

The Finazzos claim that at that sales pitch they were told: 1) this new timeshare was an investment; 2) it was tax deductible; 3) it could be sold for a profit later; 4) it could be rented to earn more income; 5) they could refinance at a lower rate with any financial institution; and 6) the sales agents would be willing to act as their personal representatives and help rent the timeshare.

The class action contends that each of those representations was false and misleading. In actuality, the Finazzos say they were pressured into trading their existing Monarch timeshare for the Life Vacations, which they claim lost them approximately $20,000.

After the sale, the Finazzos discovered that they had less time at their timeshare than Diamond Resorts promised at the meeting.

Based on all of these misrepresentations, the Finazzos allege that “[s]hortly after being pressured into the deal, Plaintiffs expressed to Defendant a desire to cancel the contract before incurring further damages.”

According to the complaint, Diamond Resorts told the Finazzos that since they did not sign a document required by the federal Truth in Lending Act (TILA), that the sale was void and they would not incur any additional charges.

Again, the class action states that Diamond Resorts was deceptive, and the Finazzos continued to be billed almost $26,000.

The Diamond Resorts timeshare deceptive marketing class action lawsuit alleges that these “hard sell” tactics are common practice by Diamond Resorts representatives.

In addition, the complaint argues that Diamond Resorts controls or trains sales representatives to make such false statements, because Diamond Resorts profits from those timeshare sales.

The class action asserts that these misrepresentations are “untrue or misleading” statements, and are “unfair” business tactics in violation of California consumer protection laws.

The lawsuit requests certification of a Class of “[a]ll persons in California that entered into a timeshare contract with Defendant after Defendant failed to satisfy TILA requirements and/or made misrepresentations as to the nature of its timeshares.”

The class action seeks restitution for all potential Class Members, as well as injunctive relief prohibiting the Diamond Resort’s deceptive marketing tactics.

The Finazzos are represented by Todd M. Friedman and Adrian R. Bacon of the Law Offices of Todd M. Friedman, P.C.

The Diamond Resorts Timeshare Deceptive Marketing Class Action Lawsuit is Matt Daniel Finazzo, et al. v. Diamond Resorts International Club Inc., Case No. 5:16-cv-02256, in the U.S. District Court for the Central District of California.