Class Action Lawsuit Against Diamond Resorts


A Class Action Lawsuit against Diamond Resorts International, Inc. has been filed by an individual who purchased a timeshare through the company. According to the complaint in the case, Diamond Resorts International, Inc. was engaged in a deceptive high pressure sales strategy. The company is also facing a class action suit claiming it engaged in false advertising and falsely promised timeshare sales and benefits to prospective buyers. Both companies deny wrongdoing. In fact, the lawsuits have come so far due to customer complaints that the agencies involved have both closed their businesses.

Class Action Lawsuit Against Diamond Resorts

Diamond Resorts International, Inc. is a direct sales and marketing company that marketed a timeshare package called the Diamond Reserve on the basis that it was an excellent opportunity to buy or invest in timeshares. However, the lawsuit says that consumers were subjected to numerous sales pitches, promises and puffery. At one point, a supervisor told an agent to “sell the tickets” to another agent who was having a difficult time convincing a potential buyer to purchase the packages. Other times, representatives were instructed to “get rid of the agents” if they had a problem selling the packages.

When the suits finally reached a point where a settlement was reached, the resort changed the name of the packages from Diamond Reserve to Diamond Resort World.

However, this was just a rebranding process. Within a few months, the company changed the name once again and began selling resale properties directly. This has caused consumers to suffer substantial fees for what turned out to be a fraudulent product. At least one class action suit that was filed on behalf of a consumer says that she is owed more than four thousand dollars in damages.

The Better Business Bureau has received reports of many complaints about this company and other resorts involved in the sales.

One person complained that her wife received a call from a representative of the resort telling her that she had won a trip to Caribbean on which she would receive a free massage. Another case says that a representative tried to sell her a three-night stay at the Caribbean resort by telling her that the hotel was “booked tight.” Sales reputations cannot be easily manipulated. There have also been reports of fraud because some of these resorts did not have legitimate ownership of the properties.

The Class Action lawsuit against Diamond Resorts involves claims that the company engaged in illegal marketing techniques that lead to the sale of resale Diamond Resort properties.

There were false and inaccurate appraisals, overcharging and an attempt to steer buyers toward purchasing vacation packages that did not include necessary accommodations. Another class action suit says that the company used “physical force, intimidation and threats” in order to get people to purchase packages. This resulted in many people being unable to pay for their vacations. Many others say that they suffered injuries while on vacation at one of these resorts.

This class action suit was brought on behalf of those who suffered injuries while on vacation at one of these resorts.

The claims ultimately resolved an issue of whether or not the resort’s sales practices violated federal law. The lawsuit also sought damages for pain and suffering, financial losses, mental anguish and other medical expenses. It is not clear whether or not any of these cases will be resolved. One class-action suit has already been settled.

2 thoughts on “Class Action Lawsuit Against Diamond Resorts

  1. I upgraded my timeshare in Branson Mo. My wife and I were kept in a small cubicle for over four hours. The salesman told us how we could sell our points if we ever wanted to get out of Diamond, that Diamond was selling out to Hilton in the near future and was going to raise the cost of points from 4 cents to ten cents. He told us that we were in a very good position because we could keep our points at 4 cents. He stated that other owners would jump at the chance to buy our points at 4 cents if they ever wanted to go from like silver to the gold plan. He told us that were could use any extra points we had to buy hotel rooms, buy gas, stay at other resorts besides Diamond. He showed us grafts and went over numbers. Finally, after four hours he stated that all of this would only cost 509.00 a month. I asked him about my other contract with Diamond and he told me that it would be a part of the new contract at 509.00 a month.

    Then he told me that because of my credit rating (around 750) I could get a loan that would bring my total monthly payment down to 280.00 a month only around fifty dollars more a month than I was paying before the new contract. He stated that he would send me application forms to fill out. We signed onto the new contract. Later that night I couldn’t sleep, I thought that there was something wrong with this new contract and what would happen if I couldn’t get the load, it would mean that I needed to pay 509.00 a month which I couldn’t afford. I paced back and forth all night and when morning came I decided that I would cancel the new contract and keep the old one. I went to the front desk and spoke to the receptionist, I told her I wanted to speak to my salesmen and she told me he wasn’t there. I then told her that I wanted to speak to someone because I wanted to cancel my contract. She went into the back and about five minutes later my salesman came out. We went back to that same cubicle and I told him my concerns, that I couldn’t afford 509. a month and I really wasn’t sure about the state of my previous contract. He assured me that both contracts have been rolled into one and that I would be able to get a loan.

    I left the contract as is and went home the next day. We waited a week then decided that we would go to our back and see about a loan. We were told that our credit score was excellent but we had high debt and couldn’t get a loan. I called my salesman and he didn’t answer his phone. He call me a week later and told me he was on vacation. I told him I couldn’t get a loan at my bank and he asked me if I tried a credit union or I could try googling for refinancing timeshare loans. After I got off the phone my wife informed me that she had just received a second bill from Diamond (I paid the first bill earlier in the month) the two bills together would cost 785.00 a month. I left a message on the Diamond website and they responded advising that I had two contracts with Diamond not on. The first contract was 209.00 and the second one was for 509.28 for a total of 785.38. My wife called the salesman back but he didn’t answer his phone, so she left a message advising that someone made a mistake and didn’t cancel the first contract, he has never called back.

    I keep messaging Diamond on their website advising that I can’t afford this payment, that I was told that my payments would be 509.28 before I got a loan, which I couldn’t get. I pleaded with them but didn’t receive an answer. Finally, I got a call from Diamond and spoke to a lady named Samantha, telling her everything that I wrote above, who told me that there was nothing she could do for me because I signed the contract and the 7 day grace period had expired. I told her that I don’t know what she was going to do but I can’t pay because I’m on a fixed income along with my wife and that there was no way I can afford this. She told me that I needed to speak to a VP in sales on Thursday, it would be a conference call. I’m waiting for that call right now. I received a call at @1345 advising that the VP for sales isn’t available today so he’ll call me tomorrow. I think I’m going to send this info to you and send another message tomorrow after the phone call.

  2. BUYER BEWARE! Should be the motto for Diamond resorts! They show no respect, integrity, especially transparency, and directness! That is what is in their “Promise”. They have lied to us, not once, not twice, not even three times, but every time they talk to us, lies are spewed! The “Dream Vacations” are their way of getting you to listen to another sales pitch. It is mandatory! We are seniors and I feel they took advantage of that! I told them my husband’s health was diminishing and they took advantage of that. I told them we were over extended and they still got us to invest more money. They are very manipulative and adept salespeople. They see your weakness and pounce! Each salesperson seemed so sincere, which has shown us how naive and trusting we are.

    I would like to join the class action suit against Diamond Resorts. How do I do that?

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