What is the Westgate Lawsuit 2021?
In 2021, Westgate Resorts, Ltd. was hit with a class-action lawsuit alleging that the company had violated the Military Lending Act (MLA) by failing to provide accurate interest rates and other disclosures to military borrowers. The lawsuit also alleged that Westgate had engaged in predatory lending practices, such as targeting young and inexperienced service members.
The MLA is a federal law that protects military borrowers from predatory lending practices. The law requires lenders to provide accurate disclosures to borrowers and to calculate interest rates in a certain way. The law also prohibits lenders from requiring military borrowers to agree to arbitration clauses.
Westgate denied the allegations in the lawsuit, but in 2023, the company agreed to settle the case for $20 million. The settlement will benefit approximately 10,000 military borrowers who purchased timeshares from Westgate.
FAQs:
What is the Military Lending Act?
The Military Lending Act (MLA) is a federal law that protects military borrowers from predatory lending practices. The law requires lenders to provide accurate disclosures to borrowers and to calculate interest rates in a certain way. The law also prohibits lenders from requiring military borrowers to agree to arbitration clauses.
What are the allegations against Westgate Resorts?
Westgate Resorts is alleged to have violated the MLA by failing to provide accurate interest rates and other disclosures to military borrowers. The company is also alleged to have engaged in predatory lending practices, such as targeting young and inexperienced service members.
How much did Westgate Resorts agree to pay to settle the lawsuit?
Westgate Resorts agreed to pay $20 million to settle the lawsuit. The settlement will benefit approximately 10,000 military borrowers who purchased timeshares from Westgate.
How can I get more information about the Westgate Resorts lawsuit?
If you are a military borrower who purchased a timeshare from Westgate Resorts, you may be eligible to benefit from the settlement. You can learn more about the settlement and your rights by contacting Lieff Cabraser Heimann & Bernstein, LLP, the law firm that represents the plaintiffs in the lawsuit.
What is predatory lending?
Predatory lending is a type of lending that targets vulnerable borrowers with high-interest loans and unfair terms. Predatory lenders often use high-pressure sales tactics and deceptive practices to convince borrowers to sign loan agreements.
What are my rights if I am a victim of predatory lending?
If you are a victim of predatory lending, you may have certain rights under the law. You may be able to rescind your loan agreement, which means that you can cancel the loan and return the money you have borrowed. You may also be able to sue the lender for damages.
Conclusion
The Westgate Resorts lawsuit is a significant victory for military borrowers. The settlement will provide relief to thousands of service members who were allegedly targeted by Westgate’s predatory lending practices. The lawsuit also sends a message to other lenders that they will be held accountable for violating the MLA.
Please note that this article is for informational purposes only and is not intended to be legal advice. If you have any questions about your rights or legal options, you should consult with an attorney.
References:
- ClassAction.org: https://www.classaction.org/news/timeshare-co.-westgate-resorts-facing-class-action-over-alleged-military-lending-act-violations
- Lieff Cabraser Heimann & Bernstein, LLP: https://www.lieffcabraser.com/consumer/westgate-resorts/
- The Timeshare Law Firm: https://www.classaction.org/news/lied-to-and-misled-westgate-resorts-ltd.-hit-with-class-action-lawsuit-filed-by-hundreds-of-timeshare-buyers
