"Defendants made false allegations and published defamatory statements about Silverleaf in order to induce Silverleaf timeshare owners to pay significant up-front fees on the basis that defendants would 'assist' owners in terminating their contracts with Silverleaf," the 12-page complaint states. "Once owners paid their fee and signed up for these services, defendants continued to defame and interfere (so as to lure their next victim), but performed no work on the owners' individual cases aside from providing and/or mailing in form letters." Advocate for the Consumer's fees range from $1,500 to $1,600 fee, Silverleaf claims.
The lawsuit also alleges that Advocate for the Consumer promotes their business "as a mediation company, equipped with a team of lawyers, paralegals and former timeshare executives, that could assist consumers in 'getting out' of their timeshare contracts and obtaining refunds of their timeshare membership purchase. Defendants also promised that they would negotiate with Silverleaf for refunds of funds that owners had already paid under their timeshare contract."
"After receiving the up-front fee, defendants instructed, encouraged, and induced owners to breach their timeshare contracts with Silverleaf by stopping payments to the company immediately, which, of course, subjects the owners to potentially disastrous legal and financial harm, including foreclosure, lawsuits, deterioration of credit score, loss of principal payments made, and loss of enjoyment," the complaint stated. "Defendants also instructed, encouraged and induced owners to stop communications with Silverleaf, thereby exasperating the owners' problems."
Silverleaf claims the defendants told owners to justify their lack of payments by making false claims.
"They were told, in essence, that a good offense makes for a great defense," the complaint states. "The ACA provided the owners with form letters filled with prefabricated allegations against Silverleaf and either submitted the letter to Silverleaf itself or instructed the owners to do so."
In April 2013, Texas Attorney General, now Governor-elect Greg Abbott, sued the defendants in Dallas County Court. Abbott's office made similar accusations, of no work being performed; an injunction and asset freeze were issued the next month.