The Timeshare Blog

Posted December 23rd, 2020

Legal Entitlements

Class action lawsuits can do more than hold companies accountable—they can establish valuable legal entitlements for the consumers they represent. For timeshare owners, these court-approved rights may provide meaningful protections and opportunities that continue long after the litigation concluded. This article provides an in-depth look at the legal entitlements established for eligible timeshare owners through the class action settlement.

Qualifying owners had 3 legal entitlements from the 2nd class action settlement;

1. Guaranteed release of their deed(s). One of the most significant legal entitlements established through the class action settlement is the guaranteed release of an eligible owner’s timeshare deed(s). Once approved under the settlement terms, the developer is required to accept the deed back, classified as a forced deed back. This permanently terminates the owner’s ownership interest and eliminates all future maintenance fee obligations, special assessments, taxes, and contractual responsibilities associated with the deed/contract.
   
   
2. Allowance credit to use towards the total opt-in settlement package, including legal fees and closing costs. One of the financial entitlements from the class action settlement is an allowance credit for eligible owners. Rather than bearing the full cost of the settlement package, qualifying participants may apply this credit toward legal fees, closing costs, and other approved expenses, significantly reducing the overall cost of resolving their timeshare ownership. The Allowance credit is based on a few different factors including location, length of ownership, amount of maintenance fees paid.
   
   
3. Exclusive access to the industry leading VIP travel membership. No contract, No deed, No maintenance fees. Eligible owners may receive exclusive access to a VIP pay-as-you-go membership as part of the class action settlement. Unlike traditional timeshare ownership, this membership allows participants to enjoy industry low pricing for timeshare accommodations without the burden of deeded ownership, recurring maintenance fees, or long-term contractual obligations. The membership includes the same net rate pricing for all hotels, cruises, airfare, car rental and private homes, providing a more flexible approach to future travel.

While every class action settlement is unique, the three legal entitlements discussed in this article demonstrate how meaningful relief can extend beyond just the current generation. A guaranteed release of their deed- protecting future heirs from inheriting the liability was the top concern for most timeshare owners. An allowance credit gave owners substantial help, and exclusive access to a VIP membership collectively provide eligible owners the opportunity to end their timeshare ownership and enjoy greater flexibility in the future. For many owners, these benefits represent the opportunity for a true fresh start.