Unhappy timeshare owners sue Boca’s Bluegreen Corp. over sales tactics…..

Bluegreen Vacation Corp., the Boca Raton-based timeshare company, plans to go public again. Five intriguing data points from its IPO filing:

Bluegreen targets middle America. Its resorts are concentrated in what it calls “drive-to” destinations such as Orlando, Myrtle Beach, S.C., Branson, Mo., and Wisconsin Dells. “We primarily serve a demographic underpenetrated within the vacation ownership industry, as the typical [Bluegreen] owner has an average annual household income of approximately $75,000 as compared to an industry average of $90,000,” the company says.

Related: Unhappy timeshare owners sue Bluegreen

Bluegreen’s customers’ credit scores are a bit lower than average. Bluegreen said 51.9 percent of timeshare buyers who financed their vacation clubs in 2016 had FICO scores of 700 or higher. Among all U.S. consumers, 55.8 percent had FICO scores of 700 or higher as of April 2016, FICO says.

Default rates are on the rise. Bluegreen says default rates rose to 8 percent in mid-2017, up from 6.9 percent in 2015. The company offers this explanation: “Commencing in 2015, it came to our attention that our collection efforts with respect to our [vacation ownership] notes receivable were being impacted by a then emerging, industry-wide trend involving the receipt of ‘cease and desist’ letters from attorneys purporting to represent certain VOI owners. Following receipt of these letters, we are unable to contact the owners unless allowed by law. We believe these attorneys have encouraged such owners to become delinquent and ultimately default on their obligations and that such actions and our inability to contact the owners are a primary contributor to the increase in our annual default rates.”

Bass Pro Shops is a major source of business. Bluegreen runs kiosks in 68 Bass Pro Shops stores, and the fishing chain is responsible for fully 15 percent of Bluegreen’s timeshare sales. Bass Pro shoppers “strongly match our core customer demographic,” Bluegreen says.

Top execs make a nice chunk of change. Bluegreen disclosed pay for three executives. Chief Financial Officer Anthony Puleo made $3.9 million in 2016, former Vice President David Bidgood pulled down $4.3 million and Chief Operating Officer David Pontius made $4.2 million.

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Are Timeshare Class Action Lawsuits Effective? We Don’t Know But Here Is Another Article.

SACRAMENTO — Two California women are suing a travel company, alleging negligent misrepresentation in their advertisements.

Kyle Miles and Jasmine Miles filed a class action lawsuit, individually and on behalf of all others similarly situated, June 28 in U.S. District Court for the Eastern District of California against Bluegreen Vacations Unlimited Inc., alleging false statements regarding their timeshare contracts.

According to the complaint, Kyle Miles and Jasmine Miles sustained financial damages as the result of being misled into purchasing a timeshare contract. The plaintiffs allege the defendant made several false representations regarding a timeshare contract, including the total cost of the contract as well as promising the consumers who purchased the contract that Bluegreen would buy back the contract should customers be unhappy with it. Continue reading “Are Timeshare Class Action Lawsuits Effective? We Don’t Know But Here Is Another Article.”

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