Celebrity Resort/American Vacation Resorts / Fraud
Beginning in 1997 we purchased a 20 floating week vacation plan with Med Resorts International. Med Resorts International made many claims to property holdings that turned out to be fraudulent. The lack of property holding by this company led to dramatic shortcomings in what their claims could support. Med Resorts went into bankrupt court. In 2005 their assets, (amounting to only four resort properties with 12, 000 members) and membership base were purchased by American Vacation Resorts (AVR). AVR, another company with inadequate properties to support their membership which with the addition of Med Resorts now totaled more than 60, 000 members and 17 properties. During the 2005 acquisition of Med Resorts by AVR we were given the option of transferring our membership to AVR or walking away and sacrificing all the money we had invested into our program. We chose at that time to make the transition to AVR to conserve our investment. In 2007 we were charged a "special assessment” fee equal to our annual maintenance fee of $421.oo making or cash outlay for 2007 $842.00. Again we were told we had no choice but pay the special assessment or "walk away". In 2008 we were again contacted by Celebrity Resorts where they attempted to switch us into a deeded property arrangement because Celebrity Resorts was dissolving their association with AVR and again by taking up Celebrity Resorts on their offer was the only way we could end up "better off" than remaining with AVR. We declined. By opting to decline we were informed we would be restricted to the four properties held by AVR and would loose our RCI affiliation were we had established a points exchange program to more efficiently utilize our vacation plan. I contacted RCI during 2008 after our meeting with Celebrity Resorts and was informed they had received no such directive from AVR or Celebrity Resorts. This year (2009) we have again been hit with a "special assessment fee" equal to our annual maintenance fee for the short fall of income at AVR. However, we are being billed the fee by Celebrity Resorts. We are again being given the option of opting for a piece of deeded property or walking away. The difference this time is if we opt not to walk away this time we are being told that we are locked into the balance of our 30-year contract. Supposedly if we send in the special assessment fee we are committing to being locked into the balance of our contract. Part of the going forward arrangement is to sign a hold harmless agreement that would protect Celebrity Resorts and AVR from litigation. I think at this time enough is enough and I doubt if we will continue chasing this nonsense. I would entertain the idea of a class action suit instead of accepting Celebrity Resorts request that at this time we sign an agreement to hold them and AVR harmless against all past actions or future actions.