Lawsuit: Diamond Resorts 'Harasses' Timeshare Owners [UPDATE]

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Diamond Resorts International Club, Inc. is on the receiving end of a proposed class action lawsuit that alleges violations of the Telephone Consumer Protection Act of 1991, the Truth in Lending Act, and various California state laws. The plaintiffs claim they purchased a membership from the defendant that allowed them to reserve timeshares at various resorts, but that they were dissatisfied with the availability of timeshares and the customer service they received. They attempted to address their concerns with Diamond Resorts’ agents at an “Owners Update” meeting, but were “bullied, manipulated and intimidated” into upgrading their membership, according to the complaint. The suit argues that the defendant misrepresented the benefits and terms of their contracts, and unfairly coerced consumers into attending sales presentations they believed to be “update” meetings.

The plaintiffs claim they attempted to terminate their contract with Diamond Resorts but that the defendant provided them with “confusing, conflicting and misleading” responses, if it responded at all. Diamond Resorts then sent the plaintiffs letters demanding payment and began calling their cellular phones in an attempt to collect on “a disputed account,” the suit says. The plaintiffs allege that they asked the defendant to stop calling, but that their requests were ignored. As a result of Diamond Resorts’ purported “deceptive sales tactics,” “misleading” correspondence, and “harassing phone calls,” the plaintiffs seek injunctive and monetary relief.