Legal Action Results in Another Timeshare Exit Entity Banned from Preying on Owners through Deceptive Practices

When it comes to timeshare exit companies, there is unfortunately an established history of deceptive practices and legal issues. Following legal action taken this summer in Missouri and Alaska against an interrelated network of timeshare exit companies, another timeshare exit entity, which was alleged to have preyed on owners by guaranteeing to help them exit their timeshare without consequences, has now been banned from continuing its deceptive practices.

As of August 2022, a U.S. district court has entered an injunction permanently barring timeshare exit law firm Montgomery & Newcomb LLC and its entities from advising Wyndham timeshare owners to stop making payments on their timeshare, transfer or terminate their timeshare interest, or otherwise violate their timeshare contracts.

The ban stems from a permanent injunction the firm agreed to in an effort to settle a lawsuit brought by Wyndham Vacation Ownership against the law firm in 2019. The lawsuit alleged that the law firm encouraged timeshare owners to stop paying for their timeshares in breach of their contracts which resulted in foreclosures, causing significant damage to timeshare owners’ credit.

The injunction prohibits the law firm and its entities from referring owners to other timeshare exit firms and sharing owners’ information with other timeshare exit firms to otherwise continue their business model through third parties, further protecting owners and consumers alike.

If Montgomery & Newcomb violates the permanent injunction in the future, the law firm can be held in contempt of court and fined $100,000 in damages for each violation, plus an additional $5,000 in damages for each day the firm continues to violate the injunction.

This permanent ban against Montgomery & Newcomb is a victory for timeshare owners and will help protect them from the harmful practices of yet another timeshare exit entity.

If owners are interested in exiting their timeshare, the ARDA Resort Owners Coalition (ARDA-ROC) recommends owners always contact their timeshare developer, resort management company or HOA as their first source of information regarding exit options. The Coalition for Responsible Exit is also a place for owners to safely explore free or low-cost exit options that are supported by timeshare developers and can be accessed by visiting ResponsibleExit.com.