Good news if you bought a timeshare through Festiva. The Tennessee Attorney General's Office announced this afternoon that it has reached a multi-million dollar settlement with the company after accusing Festiva of using fraudlent and deceptive tactics to lure Tennesseans into buying vacation memberships.
This is a $3-million settlement. And of that, Festiva will have to have to pay more than a million dollars in restitution and another million dollars to forgive loans that Tennessee consumers took out to buy expensive vacation timeshares from Festiva.
This comes after Tennessee sued the North Carolina-based company two years ago after an investigation revealed questionable sales and marketing practices. The lawsuit accused Festiva of using misleading telemarketing and high pressure sales tactics to sell its products.
Consumers often found that what they purchased was not what they were promised during sales presentations. And many consumers said they found the rules and terms made it nearly impossible to book vacations.
Under the settlement, certain consumers who bought timeshares through Festiva will be allowed to cancel their contracts and receive partial refunds while consumers who financed their timeshares will be eligible to have their Festiva loans forgiven. The Attorney General's Office plans contact all eligible consumers within the next month.
If you have questions about the settlement or think you may be eligible to particpate, you can contact the Tennessee Attorney General's Office at 615-741-1671. You're encouraged to do so before April 30th.
