Timeshare Exit Company American Resource Management Group Declares Bankruptcy
May 15, 2019
T his past April,
a top timeshare exit company known as American Resource Management Group, LLC (ARMG)
filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Florida. The lawsuit claimed ARMG violated the Florida Deceptive and Unfair Trade Practices Act and other laws through the use of false and misleading advertising. The events that transpired during the lawsuit helped shed light on the havoc brought into the lives of innocent timeshare owners that hire timeshare exit companies.
During the American Resource Management Group bankruptcy court hearings in April, serious red flags were raised when the court appointed a Chapter 11 Trustee to look into the business ethics and finances of ARMG, and four related
companies. According to the
American Resort Development Association - Resort Owners' Coalitio
n (ARDA-ROC), the court expressed concerns over ARMG's advertising, specifically their claim to consumers they were a Midwestern-based firm while actually operating out of Florida. Despite
being paid large upfront fees
from timeshare owners, American Resource Management Group had minimal cash in their bank accounts and insufficient reserves to cover the potential â€œ100% guaranteeâ€ claims that they made to thousands of innocent timeshare owners.
American Resource Management Group
operated under other business names and is related to a number of other companies that also filed for bankruptcy, such as:
Over the last few months, two other timeshare exit companies (American Consumer Credit
Castle Law Group
) were shut down and one timeshare exit company attorney was disbarred. While putting an end to fraudulent exit companies is great for consumers, the reality is that thousands of timeshare owners have paid an
exorbitant amount of money
in exchange for non-existent services and have been unable to recover their lost funds despite supposed â€œ100% guaranteesâ€.
Timeshare industry companies
are taking a stand in an effort to
protect their timeshare owners
from fraud and timeshare exit scams. Diamond Resorts, Holiday Inn Club Vacations, Westgate Resorts, and Wyndham Destinations have all filed suits against
third-party exit companies
. ARDA-ROC even created
dedicated to helping consumers safely exit their timeshare.
If you're considering options for altering your timeshare ownership, be sure to check out
ARDA- ROC's website
to avoid getting caught up in a
timeshare exit scam