Bluegreen Vacation Club Overcharges Military, Vets, Class Action Alleges

Bluegreen Vacation Club Class Action Lawsuit Overview: 

• Who: Bluegreen Vacations Unlimited, Inc. has been hit with a class action lawsuit in Florida by current and former members of the military. 
• What: The plaintiffs claim the vacation home financing company overcharges current and former service members in violation of federal law protecting them.
• Where: The plaintiffs want to represent military members nationwide.

Timeshare company, Bluegreen Vacation Club, overcharges members of the military and veterans in violation of federal law, a new class action lawsuit alleges.

The lawsuit was filed in Florida on Tuesday by lead plaintiffs Emmanuel G. Louis, Jr. and his wife Tamarah C. Louis. They allege that Bluegreen Vacation Club failed to disclose the true interest rate they and other members of the military were charged when they took out financing with the company — a violation of the Military Lending Act (MLA). 

Bluegreen Vacations is a company who finances loans for consumers to purchase interest in its vacation timeshare memberships nationwide.

According to the claim, Bluegreen failed to determine whether Louis was a covered borrower, and failed to disclose a Military Annual Percentage Rate (MAPR), disclosing to the couple and other Class Members an annual percentage rate (APR) that was significantly lower than the true MAPR.

The MLA and MAPR that is part of it were enacted to protect members of the United States Military from an epidemic of predatory lending that endangered military readiness and impacts service member retention, the claim reads.

Service Members Pay More Than They Should for Bluegreen Vacation Club

In December 2020, Louis, Jr. — an active-duty member of the United States Army — and his wife Tamarah Louis obtained financing to purchase a “Bluegreen Vacation Club” membership, which is a timeshare interest, from Bluegreen in Florida. 

To obtain the financing, they entered into the Bluegreen Owner Beneficiary Agreement with Bluegreen, that was subject to MLA requirements. However, they allege, Bluegreen failed to provide any of the mandatory MLA disclosures to the couple of their rights pursuant to the MLA.

In the “Purchase Terms” in Bluegreen’s standard form Owner Beneficiary Agreement with the couple, the total amount Bluegreen financed was $10,350.00 and the annual percentage rate was stated as 16.990%, the claim shows. No MAPR was stated on any document provided to the couple.

“Bluegreen’s failure to provide the MAPR resulted in Plaintiffs’ MAPR being higher than the APR that they thought he was paying,” the claim reads.

“As a result, Plaintiffs thought they were paying an interest rate of 16.990%, but in reality, their concealed MAPR was much higher.”

As a result of Bluegreen’s MLA violations, the couple has suffered actual damages because they paid money to the defendant based on an illegal contract without the benefit of the MLA disclosures and are entitled to rescission of contract, the allege.

“Upon information and belief, Bluegreen’s business practices that fail to comply with the MLA are not limited to its Florida locations, instead, it is a nationwide scheme in that it fails to make any inquiry to determine a borrower’s status that would prescribe MLA protections,” the lawsuit alleges.

The plaintiffs want to represent anyone covered by the MLA that entered into an agreement with Bluegreen Vacations Unlimited. They are suing for violations of the MLA and seek certification of the Class, damages, enjoinment, interest, legal fees and costs, and a jury trial.

The timeshare company is no stranger to legal action. In 2016, a class action lawsuit accused Bluegreen Vacation Club of using “hard sell” tactics and misinformation to convince consumers to enter into timeshare contracts.

Have you signed up for Bluegreen Vacation Club? Tell us about your experience in the comments section below!

The plaintiffs are represented by Janet R. Varnell and Matthew T. Peterson of Varnell & Warwick, P.A.

The Bluegreen Vacation Club Class Action Lawsuit is Louis, et al. v Bluegreen Vacations Unlimited, Inc. Case No. 0:21-cv-61938-XXXX in the U.S. District Court Southern District of Florida Fort Lauderdale Division.

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