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The federal government is the latest agency to file suit against a group of St. Louis area timeshare exit businesses that have been the focus of previous Better Business Bureau® (BBB®) of Eastern and Southwest Missouri and Southern Illinois consumer warnings.
Last week, the U.S. Department of Justice, on behalf of the Federal Trade Commission and the Wisconsin Attorney General’s Office, filed a lawsuit in the Eastern District of Missouri claiming the owners and operators of Consumer Law Protection and its various aliases fraudulently acquired more than $90 million from consumers in timeshare exit schemes. The lawsuit claims mostly older citizens were targeted in the schemes.
“We are thankful for the work done by the FTC and the various state attorney general offices that have investigated these businesses,” said Michelle L. Corey, BBB St. Louis president and CEO. “We’re hopeful that consumers, most of whom lost thousands, will be made whole as a result of these actions.”
Individuals named in the suit are Christopher Carroll, George Reed, LouAnn Reed, Scott Jackson and Eduardo Balderas. The lawsuit also names Square One Development Group, Inc., Consumer Rights Council, Resort Transfer Group, LLC, Premier Reservations Group, LLC, Square One Group, LLC, Timeshare Help Source, Farmington Allegiance, LLC, Mainline Partners, LLC, as well as two trusts allegedly set by the Carroll and Reed families.
BBB previously issued consumer warnings on Square One Development Group, Inc., in July 2020 and June 2021. BBB issued a consumer warning on Consumer Law Protection, LLC, in January 2021.
Earlier this year, the attorney general offices in Alaska and Missouri also brought lawsuits against the group of businesses and its owners. Both of those lawsuits are pending.
The federal lawsuit claims the group of businesses made false affiliation claims, deceived consumers about their options for exiting their timeshares, made false claims about how the consumer’s heirs might be affected, pressured consumers into signing contracts, and failed to give consumers promised refunds.
“The defendants used scare tactics and high-pressure sales pitches to coerce seniors into forking over thousands of dollars for timeshare exit services they didn’t deliver,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, in a news release.
BBB offers these tips on how to exit a timeshare holding:
- Research any business and its owners carefully before paying any money. Check the company’s BBB Business Profile at BBB.org or by calling 888-996-3887.
- Contact the resort that originally sold you the timeshare to see if it has a deed-back program.
- Before paying, make sure you have a signed contract outlining what is to be done, a timetable and an explanation of what happens if the business doesn’t get you out of your timeshare within the specified period of time.
- Be wary of anyone claiming that they have a buyer for your timeshare or who promised to rent your timeshare, especially if they ask for an upfront fee
- Pay by credit card whenever possible in case you need to challenge the payment.
- If you feel like you have been misled, file complaints with BBB and the state’s attorney general’s office.
- For more information about the timeshare exit industry, refer to this BBB study.
