AUGUSTA, Maine — More than 800 people who were customers of the Festiva Development Group have been notified that the vacation club company has reached a settlement with the state over alleged deceptive marketing and sales practices, according to the attorney general’s office.
The settlement resolves an action that the attorney general’s office took in 2013 against six related Festiva companies based in North Carolina, their principals and the Festiva Adventure Club Members Association.
According to a statement released by Maine Attorney General Janet Mills, the companies allegedly engaged in unfair and deceptive practices in marketing and selling Festiva’s points-based vacation club memberships in Maine at a Rangeley Lake resort.
Festiva is also alleged to have told consumers they could use points to take vacations at any time at resorts in Florida, the Carolinas and Missouri in addition to Rangeley Lake.
Many consumers discovered after they had signed Festiva’s 40-year contract that “membership in its vacation club was not what they thought,” Mills’ statement read.
Consumers reported it was impossible to book vacations due to lack of accommodations at resorts, and that points could not be carried over on a yearly basis. In addition, those who tried to cancel contracts were told they had signed a 40-year deal obligating them to pay fees and assessments even if they were unable to schedule a vacation.
Based on customer files and information provided by consumers, Festiva has written to each customer entitled to relief to advise the consumer of the relief offered and the steps that must be taken to obtain it. Depending on the group, consumers may be released from their 40-year contract or have the term reduced to 10 years; and those who traded in a deeded timeshare week to buy a membership can get it back. Festiva will also request that credit reporting agencies remove any trade line on a consumer’s credit report related to money owed to Festiva.
Festiva has agreed not to sell any memberships in Maine for three years.
