BOCA RATON, Fla.--(BUSINESS WIRE)--Bluegreen Vacations Corporation (NYSE: BXG) ("Bluegreen"), today announced that multiple third-party timeshare exit firms ceased pursuit of contract termination claims on behalf of over 175 Bluegreen Vacation Club owners. Bluegreen intends to continue its zero tolerance policy towards abusive practices by so-called “timeshare exit firms.”
Timeshare exit firms’ television, radio and internet ads encourage vacation owners to believe they can walk away from financial obligations by simply employing the exit firms. But they don’t disclose that to obtain the exit firms’ services, vacation owners are typically asked to pay upfront fees of up to $5,000 or more and that the services they provide almost entirely consist of form letters asserting boilerplate claims that are meritless. Unfortunately, once the vacation ownership company receives the attorneys’ demand letters it terminates the ability of the vacation ownership company to deal directly with the owners, which among other things, makes it difficult for Bluegreen to discuss the options available to an owner. Bluegreen’s experience has been that the false claims asserted by the exit firms often result in loan defaults and unfavorable credit reporting if customers stop making payments.
Frequently, attorneys for the exit firms do not even appear in court to represent the customers they purport to represent.
Bluegreen believes that if the exit firms disclosed that the exit plan was to assert generic and frivolous claims and the potential resulting harm to the owners’ credit profile, few timeshare owners would pay to engage those firms. Bluegreen has adopted a zero tolerance approach for dealing with false and abusive claims.
Bluegreen has and will continue to evaluate every claim presented to it on the merits. However, if a meritless claim is presented, Bluegreen will not respond or negotiate with the exit firms and will instead vigorously seek to enforce its contractual rights, including but not limited to, filing suit in a court of law where appropriate.
While this decision has increased legal expenses, Bluegreen believes this is a long-term strategy that will result in supporting vacation owners and will deter abusive practices on the part of the timeshare exit companies and timeshare exit attorneys. Bluegreen Vacations is committed to helping its owners avoid the pitfalls of dealing with abusive timeshare exit firms by providing education on alternative options available to them based on their individual situations.
As a leading vacation ownership company for over 20 years, Bluegreen Vacations takes pride in providing over 215,000 owners with unique vacation ownership experiences across 69 Club and club associate resorts and the fact that approximately 50% of Bluegreen’s sales volume is from existing owners is evidence of the happiness of its owner base.
Bluegreen is working with the American Resort Development Association (ARDA), local Better Business Bureau's and a variety of regulatory agencies to raise awareness of the practices of timeshare exit companies and timeshare exit lawyers.
About Bluegreen Vacations Corporation:
Bluegreen Vacations Corporation (NYSE: BXG) is a leading vacation ownership company that markets and sells vacation ownership interests (VOIs) and manages resorts in top leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based, deeded vacation ownership plan with approximately 215,000 owners, 69 Club and Club Associate Resorts and access to more than 11,100 other hotels and resorts through partnerships and exchange networks as of June 30, 2018. Bluegreen Vacations also offers a portfolio of comprehensive, fee-based resort management, financial, and sales and marketing services, to or on behalf of third parties. Bluegreen is 90% owned by BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), a diversified holding company. For further information, visit www.BluegreenVacations.com.
About BBX Capital Corporation:
BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), is a Florida-based diversified holding company whose activities include its 90% ownership interest in Bluegreen Vacations Corporation (NYSE: BXG) as well as its real estate and middle market divisions. For additional information, please visit www.BBXCapital.com.
Certain matters within this press release include “forward–looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements, including but not limited to, the risk that Bluegreen will not be successful in limiting the activities of timeshare exit attorneys and their attorneys, that the cost of its zero tolerance policy will result in additional costs and expenses and that the company may not be successful in litigation where it is a party. For a description of other risks and uncertainties, please review the “Risk Factors” section and other information contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission, which are available on the SEC's website, https://www.sec.gov, and on Bluegreen’s website, www.bluegreenvacations.com.