In the wake of the recent uptick in exit scams, the preeminent vacation ownership provider vows to protect its owners and members from paying exorbitant upfront fees for an illusory service.

MYRTLE BEACH, S.C., May 9, 2024 /PRNewswire/ -- Capital Resorts Group, LLC d/b/a Capital Vacations®, a leading provider in the vacation ownership industry, is taking action to neutralize so-called "exit companies" who employ unlawful business practices to prey on its owners and members while collecting exorbitant fees for a service that they cannot and do not provide.

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"Though timeshare exit scams, including alleged cancellation and resale, have been perpetrated for many years, the consequences on the victims remain real and serious. Many of the exit scammers are well-practiced in their abilities to defraud unsuspecting customers. When opportunities appear 'too good to be true,' it's often because they are," according to a January press release from the New York Field Office of the Federal Bureau of Investigation. "Be sure to use caution when dealing with anyone who expresses interest in your timeshare. If you think you have been targeted by a timeshare scam, please report the incident."

Many of these companies guarantee that they can cancel a timeshare, sometimes deceptively calling what they do "consumer advocacy." Typically, this is nothing more than preparing or sending formulaic, and often fabricated, letters of complaint to timeshare developers, the Better Business Bureau, or federal, state or local governmental or regulatory bodies. But, as these companies know, those letters will not result in the cancellation of a timeshare. Instead, they must induce timeshare owners to stop paying their timeshare obligations all while lining their own pockets with the exorbitant upfront fee they charge the timeshare owners.

Capital Vacations is fighting exit companies' exploitation of Capital Vacations' members. It has filed lawsuits against Financial Recovery Advocates, LLC ("FRA") and associated businesses. FRA is an exit company that has cynically adopted the "consumer advocacy" business model. Capital Vacations also asserts claims against Robert Grosser, who is one of FRA's representatives who is responsible for sending many of the boilerplate letters, Valuation Fraud & Forensics, LLC, and its principal Jaclyn Burket Franks, and Bottom Line Accounting and Tax Services, LLC and its principal Carmen Wallace. These last two businesses and individuals prepare cookie-cutter reports that, without evidence, conclude that the timeshare owner has been subjected to misrepresentation. These reports are all identical, and, like FRA's conduct, do not cancel Capital Vacations' member's timeshare. The reports are only intended to give FRA's customers the impression that FRA is doing something to bring about the cancellation of a timeshare when they are not.

Capital Vacations has alleged that FRA and its associates have engaged in deceptive and unfair acts or practices in violation of the South Carolina Unfair Trade Practices Act. The lawsuit is pending in the South Carolina, 15th Judicial Circuit, along with an action in the State Supreme Court seeking declaratory relief, asking a court to find FRA is engaged in the unauthorized practice of law.

To learn more about how to avoid fraud in these situations, visit ARDA.org. If you are a Capital Vacations member with questions, please contact Maria Kalber, Capital Vacations Senior VP of Owner Engagement and Service, at 833-876-0514, available Monday-Friday 9 AM-6 PM EST.

ABOUT CAPITAL VACATIONS®
Capital Vacations is reimagining the travel experience by connecting Independent Resorts with travelers through our technology platform and vacation products. We partner with over 200 Independent Resorts across the U.S. and Caribbean, deploying strategic value-add tools that allow Independent Resorts to increase revenues across multiple channels. In addition, we service over 1,000,000 travelers a year with a hyper-focus on the owner and guest experience and the creation of long-term relationships. Learn more at CapitalVacations.com. Travel. Gather. Smile. Repeat.

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