Lawsuit: Gatlinburg resort uses "high-pressure scheme" on customers

Published: Sep. 28, 2018 at 12:30 PM EDT
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A class action lawsuit has been filed against a resort in Gatlinburg alleging that it uses a "high-pressure scheme" that fails to disclose pertinent information to potential buyers in an effort to sell timeshares.

In a 65-page lawsuit filed by the Nashville office of Lieff Cabraser, plaintiffs claim that the Westgate Smoky Mountain Resort fails "to provide legally required disclosures" and fails "to provide adequate access to their timeshares."

According to the lawsuit, Westgate fails to train and supervise sales agents, provide them with disclosures to give to potential customers and encourages them to lie. Closing agents were relied upon to provide written disclosures in a "closing folio" that contained a "secret pocket" where "closing officers can conceal legally required disclosures about the purchasers' rights, including their statutory right to rescind their purchase."

Westgate is also accused of not telling customers that their timeshares would be subject to a "floating use" plan and did not properly explain that term to buyers. The floating use plan, the lawsuit alleges, "fails to provide customers reasonable access to their timeshares."

Two plaintiffs are women from Tennessee, one from Goodlettsville and one from Murfreesboro.

Read the full complaint under the Related Documents column.