Alabama AG says Festiva settlement will refund $75,000 to consumers

Alabama Attorney General Luther Strange announced a settlement with Festiva Development Group of North Carolina that will provide $75,000 in refunds to Alabama consumers and require changes to the company’s timeshare and travel club marketing practices.

The settlement is an Assurance of Voluntary Compliance, according to the attorney general’s office. The release said it applies to certain Festiva Vacation Club members, not timeshare owners.

Under the agreement, 107 consumers with complaints pending before the attorney general’s office will each receive about $467. The release also said about 221 additional consumers may be eligible for an undetermined amount if they contact the office within 90 days of the settlement’s execution. The settlement became effective on the day of the release, Oct. 27, 2014.

The office said Festiva must follow a list of disclosure and marketing rules in Alabama. Those include giving prospective customers time after a presentation to discuss matters privately, providing gifts up front for current customers and within 120 minutes for new customers, disclosing the terms of certificates or gifts from third parties, and clearly stating the brand and value of any gift offered for attending a presentation.

The release also said Festiva may not describe something as a free vacation if consumers have obligations, may not charge for items identified as gifts, prizes or bonuses, and may not tell consumers that a prize offered at a presentation will never be available again. It must also disclose that reservations are first-come, first-served and respond within 10 days to complaints made to the attorney general’s office.

In addition to the consumer refunds, the attorney general’s office will receive $25,000 for investigation costs and attorneys’ fees, the release said.

Strange said the settlement will compensate Alabama consumers who complained about difficulties with the company and should help prevent future problems. He said it should also promote fairer and more scrupulous practices.

The attorney general’s release identified Assistant Attorneys General Kyle Beckman, Noel Barnes and Cameron McEwen, along with Special Agents of the Attorney General’s Office, as part of the Consumer Litigation Section’s work on the matter.

What happens next is limited in the release to the 90-day window for any additional eligible consumers to contact the attorney general’s office. The settlement’s marketing and disclosure rules also take effect under the agreement, according to the office.

Sources

• Alabama Attorney General’s Office news release

Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.