The suit claims Condosmart, which also does business as CS Marketing, CSR Financial, and Condosmart Marketing, engaged in deceptive and misleading business practices as it targeted consumers who owned timeshare properties.
“Routine misrepresentation”Brnovich says the company's telemarketers were armed with a lot of information about the condo owners, including their name and where the property is located. He says that during sales calls, the telemarketers would routinely misrepresent that the owners had bonus, or extra, weeks that were available for sale to third parties.
For example, in some cases Brnovich says timeshare owners were told well-known Fortune 500 companies wanted to rent their extra timeshare weeks for large events like automobile races, trade shows, and sporting events.
The catch, says Brnovich, is the condo owner would be required to pony up anywhere from $995 to $1995 to market his or her “bonus” weeks.
The suit claims the company has violated the Arizona Telemarketing Solicitations Act by failing to file a verified registration before soliciting consumers and by failing to maintain a surety bond, as required by Arizona law.
***** Editor's notes:
The best advice I can give to any consumer who receives an unsolicited telemarketing call about their timeshare is to simply hang up the phone! A legitimate broker will NEVER telemarket! Licensed brokers do not purchase Black Market owner lists... Many of these telemarketers will call and pretend to be associated with a resort or exchange system. Please be aware that timeshare exchange companies such as RCI or Interval International do not allow the commercial rental of exchange reservations.