CONTACT helps Mainers escape troubles with time share

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Northeast CONTACT members Bob and Sue White of Bangor came to our office in October of last year. They asked if we could assist them with a consumer problem involving a business named “Sunterra Escapes PFC” associated with Sunterra Corp. The White’s told us they…
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Northeast CONTACT members Bob and Sue White of Bangor came to our office in October of last year. They asked if we could assist them with a consumer problem involving a business named “Sunterra Escapes PFC” associated with Sunterra Corp.

The White’s told us they had gone on vacation to Branson, Mo., the week of Sept. 28, 2005. While there, they were told they were invited to a seminar presented by Sunterra Corp. The business was promoting time shares and they would pay $100 per couple for those who sat through their presentation. Mr. and Mrs. White agreed to attend.

As the seminar progressed, the atmosphere was one of excitement. The pitch was hard sell and high pressure. People all around them were getting ready to sign up to purchase a time share. It was as if there were subliminal messages passing through the room. Bob and Sue White signed a contract to purchase a time share at the cost of $1,345.50 and paid for it with a credit card. They received $100 for attending.

After the presentation, they had second thoughts and an hour later they approached the Sunterra representatives and said they wanted out of the agreement. Their request was not met with the happy smiles that had greeted them earlier during the Sunterra pitch for the time shares.

Bob and Sue White were told the only way they could get out of the contract was to sign up with Sunterra Escapes PFC, a travel club. It was explained that the $1,345.50 stayed in Sunterra’s pocket.

Meanwhile, the Whites had found out from another source that one could opt out of a travel club within three days of signing, according to Missouri law. That seemed the only way to go, so they signed a contract to become members of the travel club.

On Sept. 30, 2005, the Whites sent a letter to Sunterra Escapes PFC in which they stated they wished to cancel the contract, which was signed the day before. The letter was sent certified, return receipt requested.

The Whites also called the business, advising Sunterra Escape manager Russell Burkett of the letter they had written and informing him of Missouri law involving travel clubs. Burkett said he would call them back after speaking with their legal counsel regarding the law as well as the contract not being signed by Sunterra.

Bob and Sue White received a phone call from another representative of Sunterra Escapes PFC saying there would be no refund and if they didn’t pick up a travel package, the contract would be canceled and all money would be forfeited. It was stated, “We are not a travel club; we are in real estate.”

At this point, Northeast CONTACT became actively involved. We wrote a letter to the president of Sunterra Escapes PFC and outlined the problems of the transaction from the beginning. We ended the letter with the statement, “Enclosed you will find a copy of a new Missouri law which became effective as of Aug. 28, 2005, which is a rescission statement, revoking earlier legislation. Mr. and Mrs. White have two very valid reasons why they are entitled to receive a full refund of $1,345.50. First, the contract [membership agreement] was not signed by any representative of Sunterra Escapes PFC. Secondly, a new Missouri state law gives the purchaser the right to cancel the agreement within three business days. At this time, we are requesting that you refund the amount of $1,345.50 in full to Bob and Sue White within the next 14 days with notification to Northeast CONTACT of the transaction. Then, and only then, will we drop this matter.”

When neither the Whites nor Northeast CONTACT received a reply, we wrote a second letter to the President of Sunterra Escapes PFC listing the enforcement agencies we would contact if he chose not to send the refund.

Shortly thereafter, the Whites received notification from their credit card company that Sunterra had credited their account in the amount of $1,345.50.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast Contact for Better Business Inc., Maine’s membership-funded, nonprofit organization and America’s oldest consumer advocacy agency of its kind, established in 1972. For help, write to Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1339, or email consumerhelp@bangordailynews.net.


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