July TARDA Newsletter: Military Lending Act Update, Mexico timeshares and Cartels, the Latest Exit Company Lawsuit
Categories: Monthly NewslettersJuly 25, 2025
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July was an active timeshare month. Included in this month’s newsletter are news reports about the lack of responsible exit for many timeshares, an investigation into Mexican cartels distributing Fentanyl and timeshare exit scams in the U.S. and Canada, and a court ruling on one of the Military Lending Act (MLA) lawsuits we have been following. Active duty service members who find their security clearance in jeopardy because they bought a timeshare is one of our most serious concerns. Out of 23 service members to have reached out to TARDA in the last year, all but one reported deceptive practices. One service member, in the Army National Guard, could not afford the timeshare because he experienced a significant drop in income due to being activated and deployed.
On July 17, 2025, a Florida federal judge dismissed the Lingard et al. v. Holiday Inn Club Vacations Inc. et al. class action lawsuit, case no, 6:23-cv-00323. Plaintiffs’ attorneys sought to certify the class. This was one of five lawsuits filed against Bluegreen Vacations, Westgate Resorts, Wyndham Destinations, Holiday Inn Club Vacation and Hilton Grand Vacations, accusing the companies of violating the Military Lending Act. The Hilton lawsuit was voluntarily dismissed.
In Steines v. Westgate Resorts, the courts ruled that military timeshare buyers should be considered Covered Borrowers because a timeshare loan is not a home mortgage loan. The MLA exempts home mortgages. FNMA and the National Credit Union Administration (NCUA) state on their websites that a timeshare loan is not a home mortgage loan.
Timeshare Hostages
ABC News reported on how timeshare buyers, desperate for release, fall victim to scam exit companies. Resorts that offer no responsible exit include Club Exploria, Vacation Village (recently acquired by Vacatia), Great Eastern, Soleil Management/Tahiti Village and several Legacy resorts. Vacation Village will allow a release if there is serious medical hardship, but that is little help for the majority of owners reaching out seeking release for other reasons. It is doubtful anyone would buy a timeshare if they had known how difficult it may be to exit. There are some resorts that do offer a responsible exit and a few that hold a residual resale value.
On July 9, 2025, an ABC 10 news report in California reported on Meadowlake Development Corporation, a timeshare managed by Vacatia. This owner did have medical hardship but was still not allowed an exit.
Timeshare Nightmare: A Woman’ s Fight to Escape After More than 20 Years
A report by AARP found that around 850,000 owners hope to sell within the next two years.
On July 5, 2025, the New York Times warned to avoid timeshare listing companies known to inflate listing prices to justify their fee. These companies will even accept a listing for a timeshare with a loan outstanding. TARDA has received many complaints of this nature.
My Timeshare is an Albatross
The deliberate suppression of a viable secondary market has led to a robust timeshare exit scam industry – so lucrative that Mexican Cartels have become involved. While a few exit companies are not scams, they require you to do the work because they can’t represent you. They are not law firms. Some showcase their attorney, but the exit company’s attorney is merely in-house counsel for the exit company. He or she represents the exit company, not the timeshare member. TARDA has received many complaints from timeshare members who thought they were represented by an attorney when they were not.
Several exit companies reference law in their title. In Florida, law firms must have the name of the attorney in their company name. Some solicit for their attorney at dinner road shows, which is illegal. Soliciting for attorneys is called running and capping, from ambulance chasing days.
An update on domestic timeshare exits scams
We reported earlier on Minnesota Attorney General Keith Ellison settling with three exit companies for $269,000:
Attorney General Keith Ellison says Encore Law Inc., Last Resort Consulting, and Tradebloc, charged large upfront fees and failed to obtain proper licensing. Ellison says his office also investigated potential misrepresentations about the company’s services and statements about expected results.
On July 3, 2025, Ohio Attorney General Dave Yost sued TS Relief Group and TS Holding Unlimited on behalf of Ohio residents, as reported by the Dayton Daily News:
Ohio is suing a New-Jersey-based “timeshare exit” company as part of a trio of “failure to deliver” lawsuits, said Attorney General Dave Yost. The lawsuit targets TS Relief Group and TS Holding Unlimited, which are companies that claim to offer “timeshare exit” services to assist people trying to get out of timeshare contracts, which are often sold using deception and high-pressure tactics.
An update on Mexico timeshare fraud involving cartels
The US Treasury sanctioned a Jalisco Mexican Cartel for distributing Fentanyl and timeshare exit scams in America and Canada. On PodTV Timeshare Solution or Surrender, Episode 73, we heard from Lisa whose experience in Mexico connected the cartel directly to her resort. The resort sold Lisa on the claim that she was purchasing a 25% interest in a condo that was to be built. In the meantime, she was entitled to book weeks until construction was completed. Then later she received a phone call from a caller claiming to be from a New York real estate company. They knew specifics about her purchase and claimed they could sell her 25% interest for $100,000 or she would receive $200,000 if the entire building sold. Not only did the website look fake, but a malware company had a link showing the URL to be a phishing site.
The Canadian government issued a warning to Canadian residents traveling to Mexico that included timeshares. Returning guest, Earl, in Nova Scotia, also Episode 73, shares how he lost $70,000 Canadian to the cartel and $70,000 to his resort. The real estate scam site was called Your New Tennessee. News Channel 5 in Nashville reported on how over $3.5 million was lost.
https://www.newschannel5.com/news/bbb-warns-of-mexican-timeshare-scams
On February 25, 2025, CBS news interviewed private investigator Joe McGrear, who is investigating on behalf of a dozen families that lost $4.3 million to the cartels. Intercontinental Realty claimed they had a corporate buyer for their timeshares.
https://www.cbsnews.com/chicago/news/numerous-victims-lost-everything-timeshare-purchasing-scam/
All PodTV shows can be accessed from the drop down menu by Episode number. We are grateful to POD TV producers Kimberly Calhoun, Marc Lee, and attorney Nick Paleveda for their support. We are also grateful to all who have been willing to share their timeshare experience, and attorneys and experts who have joined our efforts to educate and inform.
https://podtv.tv/timeshare-showcase
Legal Updates
Florida U.S. District Judge Julie S. Sneed said Air Force service members Angelique L. Lingard and Sudarien D. Smith were not certain if complying with the MLA would have affected their decision to purchase. The judge cited EMMANUEL G. LOUIS and TAMARAH C. LOUIS v. BLUEGREEN VACATIONS UNLIMITED, INC., and BLUEGREEN VACATIONS CORPORATION, No. 21-cv-61938. The judge in that lawsuit ruled that the Louis family could not trace damages to the MLA. The Eleventh Circuit Court of Appeals ruled that the Louis family plaintiffs had not shown how their finances were harmed by alleged MLA violations.
To understand the unfairness of this narrow ruling, one must put it in the context of the Steines vs Westgate lawsuit. What we find baffling about both the Holiday Inn and Bluegreen ruling, is both seem a moot point given the ruling in Steines vs Westgate.
The argument in ADAM U. STEINES; MIRANDA L. STEINES v. WESTGATE RESORTS, et. al. Case 6:22-cv-00629-RBD-DAB was whether a timeshare loan is a mortgage loan. Florida District Court Judge Roy B. Dalton Jr. ruled that a timeshare loan is not a mortgage loan. The Eleventh Circuit Court of Appeals issued their opinion on September 5, 2024, upholding the lower Florida District Court’s ruling, This meant that in this lawsuit, military timeshare buyers are Covered Borrowers under the MLA. Of utmost importance, the MLA prohibits arbitration, arguably biased against the consumer.
A timeshare purchase that goes bad can be especially harmful to active duty service members. Angelique and Sudarien described just how perilous timeshare presentations can be for military families. As stated in their lawsuit complaint:
The Uniform Code of Military Justice states that a service member can be subject to a “bad-conduct discharge, forfeiture of all pay and allowances, and confinement for up to six months” for dishonorably failing to pay a debt. (Manual for Courts Martial, 2012, Sec 71)
Angelique said that all their sales agents assured them they could sell back their timeshare at any time. The sales agent at their seventh purchase informed them that was incorrect, but claimed she could lower their maintenance fees by consolidating contracts. Their first purchase was a fixed week.
Purchase 2: In 2017, Angelique and Sudarien upgraded to a Cape Caribe week. They said they were told that they could sell their week back to Holiday Inn at any time – because they are in the military.
Purchase 3: In 2018 Angelique and Sudarien turned in their deed for 300,000 points at a cost of $60,070 (pmt $1,004) and 50,000 Signature Points at a cost of $13,736 (pmt $229)
Purchase 4: On August 2, 2019, 50,000 additional points were purchased for $13,329
Purchase 5: On September 21, 2020, 425,000 points were purchased (trading in 300,000 points purchased in 2018). The cost was $78,760 (pmt $1,154). Maintenance fees $4,000
Purchase 6: In April of 2021, 30,000 points purchased to gain Registry Collection Access.
Purchase 7: In August of 2021, in Galveston, TX, Angelique and Sudarien were informed that all prior agents were incorrect. They could not sell back points, but this sales agent said she could consolidate prior contracts to lower maintenance fees. The cost for 200,000 additional points was $51,679 (pmt $864). The transaction did not lower maintenance fees.
At the time of filing their lawsuit, Angelique and Sudarien had two contracts: a 2020 purchase of 425,000 points for $78,760.20 (pmt $1,154) and a 2021 purchase of 200,000 points for $51,679.10 (pmt $864). Angelique and Sudarien owed Holiday Inn 29% of their annual income.
Timeshares can be great for families, but when harmed, it’s hard to know where to turn. As always, we thank those that have supported our efforts through generous donations of their time or treasure. To make a donation or become a volunteer, it all starts with one click –
https://tarda.org/get-involved/