Timeshare Owner’s Coalition Issues Warning About Third-Party Exit Companies: Another Third-Party Exit Company Files for Bankruptcy
WASHINGTON, April 24, 2019 – After events in a courtroom in Fort Lauderdale on April 18, the American Resort Development Association—Resort Owners’ Coalition (ARDA-ROC), representing more than 1.5 million timeshare owners, is reiterating its warning to consumers regarding third-party exit companies. Consumers should thoroughly investigate the business practices of these companies prior to engaging their services or paying upfront fees. “A top priority for ROC is to provide information and resources to our timeshare owners to help protect them from dishonest individuals or companies trying to take advantage of them,” said ARDA‐ROC Chairman Ken McKelvey.
This reminder comes after a major timeshare exit firm, American Resource Management Group, LLC (ARMG) doing business as Resort Release, filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Florida under Case NO.: 19-14605-JKO. Due to serious questions that were raised during hearings on April 18, the court appointed a Chapter 11 Trustee to take control of the business and review all aspects of its financial affairs to ensure creditors’ best interests are represented. The Court specifically questioned why ARMG represented to owners that it is a Midwestern-based firm, when, in fact, the Debtors are operating in Florida. In addition, the court noted that the Debtors, despite being paid substantial upfront fees from timeshare owners, have minimal cash in their bank accounts and have insufficient reserves to cover potential 100% “guarantee” claims they made to thousands of timeshare owners.
The full Consumer Warning can be found here
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