Nixon reaches settlement with Branson time-share broker

Festiva Resorts LLC allegedly used false and misleading sales tactics to sell time shares at the Cabins at Green Mountain near Branson, according to a news release. Nixon filed a lawsuit in November 2005, alleging the company violated Missouri consumer protection laws by misleading customers into buying time shares.

Specifically, the lawsuit alleged that Festiva lured customers by promising to:

• help them sell other time shares they owned;

• help them rent out time shares they bought from Festiva;

• help them get good deals on condo rentals in attractive locations;

• help them get good deals on vacation packages; and

• give refunds to those dissatisfied with their purchases.

Nixon’s office also alleged that Festiva didn’t give consumers enough time to make decisions, creating a sense of urgency and a high-pressure sales environment.

Under the agreement filed yesterday, Festiva agreed to stop using false and misleading sales pitches to market and sell its time shares. Included in the settlement is $106,885 to be paid to consumers who filed unresolved complaints with Nixon’s office before June 25 and had used their time share at least once; and $217,508 to consumers who filed complaints by June 25 but had never used their timeshares.

The release said customers who have used their time shares at least once have the option of deeding their time shares back to Festiva and receiving a partial refund, or they may retain the time share and receive a small cash payment or a free status upgrade. Customers who haven’t used their time shares are to be refunded a substantial percentage of the amounts they paid Festiva if they agree to deed their time share back to the company.