Timeshare Titans Clash: In a high-stakes legal battle within the lucrative timeshare industry, Wesley Financial Group has initiated legal proceedings against Westgate Resorts, accusing the Florida-based vacation ownership giant of engaging in antitrust violations and unfair competition practices. The lawsuit, filed in an Orlando federal court, represents the latest development in a longstanding conflict between the two companies, each vying for prominence in an industry valued at a staggering $10.5 billion, as reported by the American Resort Development Association.
Timeshare ownership allows multiple individuals to share ownership or usage rights for a property, typically vacation homes such as beach or ski condos. Wesley Financial, based in Tennessee, positions itself as the leading timeshare exit firm in the United States, specializing in assisting owners in navigating the intricate process of extricating themselves from timeshare contracts, which the company describes as a “maze of red tape.”
The legal action accuses Westgate Resorts, a subsidiary of Central Florida Investments Inc, of violating federal advertising and antitrust laws. According to Wesley Financial, Westgate has not only developed its own exit services, directly competing with Wesley Financial and similar firms, but has also implemented strategies to undermine its competitors.
Wesley Financial contends that Westgate’s exit program disseminates false or misleading information, and the company has allegedly taken deliberate steps to stifle competition. The lawsuit claims that Westgate has established both “formal and informal” policies aimed at discouraging owners from seeking assistance from third-party exit firms like Wesley Financial. Instead, owners are allegedly directed towards more expensive and less efficient exit options, forming part of a scheme to hinder rival companies.
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Furthermore, the legal action asserts that Westgate, along with other developers, has engaged in collusion with the American Resort Development Association, orchestrating “coordinated advertising” against Wesley Financial. This alleged collaboration between industry players and a trade association, while not a defendant in the lawsuit, is portrayed as part of a broader effort to suppress competition and maintain control over the lucrative timeshare market.
Westgate Resorts has vehemently rejected these allegations, labeling the lawsuit as a desperate move by Wesley Financial in response to a 2020 case filed by Westgate against the exit firm in a Tennessee federal court. In that case, Westgate accuses Wesley Financial of violating state consumer protection laws and orchestrating a fraudulent “timeshare cancellation scheme with no legitimate foundation.” Westgate seeks damages and an injunction against Wesley Financial, claiming that the firm’s actions led thousands of Westgate owners to cease making mortgage payments.
As the legal battle intensifies, it underscores the cutthroat competition within the timeshare industry and the complexities associated with consumer trust in navigating intricate ownership contracts. This legal clash adds another layer to the ongoing dispute between Wesley Financial and Westgate Resorts, two major players in an industry grappling with regulatory scrutiny and evolving consumer preferences.