Minnesota AG judgement against exit companies Encore Law Inc., Last Resort Consulting, and Tradebloc,

[TUGBrian]

”I hate to see unethical companies promise help to Minnesotans stuck in costly timeshare contracts, only to rip consumers off again,” says Ellison. “I’m glad to announce that three timeshare exit companies have agreed to refund consumers and comply with Minnesota law going forward. I hope these settlements put others on notice that if they do not follow the law, we will hold them accountable.”

Minnesota AG reaches settlements with three 'timeshare exit' companies

Keith Ellison says his office investigated potential misrepresentations about the company’s services and statements about expected results.

www.kimt.com

 

[chapjim]

I'm not a big fan of MN's AG but this is good news, sort of.

"The settlements will result in $269,378 in refunds back to consumers." $269K is peanuts compared to what Wesley must have taken in from their purported 40,000 cancellations.

I wonder how many other states have a similar law that makes it "illegal to charge an upfront fee for debt-settlement services."

 

[pedro47]

Thanks for sharing TUGBRIAN, Suggestion only please ask TUGGERS, to read the Minnesota AG, corresponded about timeshare.
A timeshare is not an investment. She is quoted in her reply.
It can be found in the AG settlement corresponded above.

 

[dioxide45]

While good for those consumers in MN, it probably isn't enough to squash these outfits and render them out of business.

 

[pedro47]

While good for those consumers in MN, it probably isn't enough to squash these outfits and render them out of business.

dioxide45, you are right, this settlement only applies to MN consumers.

 

[RX8]

While it is good to see these companies paying a price, particularly Encore Law, Inc, it just brings back bad memories for me in trying to warn the public about the unethical practices of Encore Law, a traveling timeshare exit company. It pains me to discuss again but I am doing so unselfishly to save at least one person from being scammed! Actually, I kind of enjoy it. Sorry for the length of this post.

On July 8, 2024, I sent an internal email about Encore Law, Inc. from the Tennessee BBB website. Here are the main points from the email:

These are the concerns:
(1) The BBB has the incorporation date of 1/1/2007. Encore Law, Inc. was actually incorporated in the state of TX on 4/3/23.

(2) Encore Law, Inc. has two locations per their website - Tennessee and Texas. While they claim their main office is in Knoxville, there is no record of a business entity called Encore Law, Inc. filed with the state of Tennessee. They do have an entity filing in the state of TX (filed 4/3/23) but they must have a foreign corporation filing in Tennessee if they are doing business in that state. Without the foreign corporation filing, they are operating illegally in the state of Tennessee.

(3) Website was created 3/20/23 which, along with the 4/3/23 TX corporation filing as well as self-promotion questionable fluff "news stories" about the company (which were all published in late 2023), are further proof that they didn't exist prior to 2023.

(4) They claim on their website "The Encore Law Legal Network was founded in 2007." Again, no record of them prior to 2023. In addition, there is no legal entity found called Encore Law Legal Network.

(5) They claim on their website "For nearly 20 years, our Legal Network has been advocating for timeshare owners..." Again, this appears to be a false claim since the legal entity didn't exist prior to 2023.

(6) They also claim on their website "During the past decade, Encore Law’s Legal Network has successfully retrieved more than $20,000,000 in refunds for clients." Again, surprising claims for an entity a little more than a year old. Also surprising because this boast appears to have been on their website since the day the website was created in 2023.

(7) They claim they are the "#1 source for advocacy for timeshare owners". Says who exactly?

(8) They have a seal on their website that states "Customer Service Champion Trophy / Legal Excellence Award". Again, says who exactly? This looks like a middle school photoshop project.

(9) They are not a legal firm yet their name, and other claims listed on their website, implies that they are a legal entity and is deceitful to the consumer.

(10) The bottom of their website has links for "Legal" and Privacy & Policy". Both of these links are non-functional.

(11) According to the BBB business profile, the managing partner is a Derek Freels. There is a Derek Freels associated with Timeshare Help Source, an out of business exit company. Timeshare Help Source's name is listed in an FTC suit with other timeshare entities. No proof that this is the same Derek Freels but is a concern with the other discrepancies.

I never did receive a response from the BBB, but I know they received my concerns because the Tennessee BBB reviewed MY personal LinkedIn profile. There were some minor changes made, maybe in response to my email, that included removing the claim on Encore Law's website of being in business since 2007 and the BBB profile was changed to reflect in business since April 2020. That date is still incorrect according to my findings. Worst of all, Encore Law, Inc. remained BBB Accredited, and they remain so today. Still frustrated because some of the concerns weren't even addressed, with the big one being that Encore Law, Inc. is operating illegally in the state of Tennessee because they have not filed with the state, I submitted these concerns in August 2024 to the Tennessee Attorney General. I received confirmation of the receipt of my concerns but nothing since. With today's news about the Minnesota Attorney General settlement, I sent another e-mail to the Tennessee AG asking if there is an update on my concerns and mentioned the Minnesota Attorney General settlement.

Encore Law, Inc | BBB Business Profile | Better Business Bureau

BBB Accredited since 4/21/2023. Marketing Programs in Knoxville, TN. See BBB rating, reviews, complaints, get a quote and more.

www.bbb.org

Finally, Kevin O'Leary of Shark Tank sold out as he did a endorsement video for Encore Law that was viewable from Encore Law's website. Either Encore Law stopped payments to O'Leary or he got wise that it wasn't good for his image to be associated with a scam as the video is no longer on the website. I wonder how many victims were persuaded by O'Leary's endorsement of Encore Law?

Kevin O'Leary of Shark Tank lowered himself to promote traveling exit company Encore Law, Inc.

This isn't going to end well for Kevin O'Leary. He should do more due diligence before he attaches his name to a business. Encore Law, Inc. travels the country putting on high pressure timeshare exit presentations in various cities. They portray themselves as a law firm, starting with their...

tugbbs.com

 

[chapjim]

To be precise, there is no judgment. The three companies settled to avoid going to court. I'll take a look but I doubt the terms of the settlement are available, other than the amount to be returned to the consumers. There will be no admission of wrongdoing. There never is in situations like this.

 

[dioxide45]

To be precise, there is no judgment. The three companies settled to avoid going to court. I'll take a look but I doubt the terms of the settlement are available, other than the amount to be returned to the consumers. There will be no admission of wrongdoing. There never is in situations like this.

So it wasn't necessarily a "judgement" but rather a "settlement"?

 

[TUGBrian]

the issue with these cases is the AGs office is limited in punishment based on the number of complaints!

had 10,000 people reported being ripped off, they could/would have had a much higher penalty but so few people take the time to report it, these financial penalties are always a drop in the bucket compared to how much more they are fleecing from owners....just the cost of doing business.

Lying pays very well in this industry...the truth does not.

 

[dioxide45]

the issue with these cases is the AGs office is limited in punishment based on the number of complaints!

had 10,000 people reported being ripped off, they could/would have had a much higher penalty but so few people take the time to report it, these financial penalties are always a drop in the bucket compared to how much more they are fleecing from owners....just the cost of doing business.

Lying pays very well in this industry...the truth does not.

So are these settlement dollar amounts only based on complaints or was there some level of discovery to identify all impacted MN residents that used these services to get them all refunded?

 

[TUGBrian]

from the one I was involved in with the florida AGs office I was told that the monetary fine was based on the complaints filed and the time/effort/hours/etc the AGs office put into the investigation and prosecution of the case.

so if they chose to prosecute a case with 500 victims and the total amount claimed to have been scammed was 500,000...thats what the fine/judgement is. (ive no idea how they calculate the investigation costs, though im sure its an "hours worked" type process)

 

[dmurray007]

While it is good to see these companies paying a price, particularly Encore Law, Inc, it just brings back bad memories for me in trying to warn the public about the unethical practices of Encore Law, a traveling timeshare exit company. It pains me to discuss again but I am doing so unselfishly to save at least one person from being scammed! Actually, I kind of enjoy it. Sorry for the length of this post.

On July 8, 2024, I sent an internal email about Encore Law, Inc. from the Tennessee BBB website. Here are the main points from the email:

These are the concerns:
(1) The BBB has the incorporation date of 1/1/2007. Encore Law, Inc. was actually incorporated in the state of TX on 4/3/23.

(2) Encore Law, Inc. has two locations per their website - Tennessee and Texas. While they claim their main office is in Knoxville, there is no record of a business entity called Encore Law, Inc. filed with the state of Tennessee. They do have an entity filing in the state of TX (filed 4/3/23) but they must have a foreign corporation filing in Tennessee if they are doing business in that state. Without the foreign corporation filing, they are operating illegally in the state of Tennessee.

(3) Website was created 3/20/23 which, along with the 4/3/23 TX corporation filing as well as self-promotion questionable fluff "news stories" about the company (which were all published in late 2023), are further proof that they didn't exist prior to 2023.

(4) They claim on their website "The Encore Law Legal Network was founded in 2007." Again, no record of them prior to 2023. In addition, there is no legal entity found called Encore Law Legal Network.

(5) They claim on their website "For nearly 20 years, our Legal Network has been advocating for timeshare owners..." Again, this appears to be a false claim since the legal entity didn't exist prior to 2023.

(6) They also claim on their website "During the past decade, Encore Law’s Legal Network has successfully retrieved more than $20,000,000 in refunds for clients." Again, surprising claims for an entity a little more than a year old. Also surprising because this boast appears to have been on their website since the day the website was created in 2023.

(7) They claim they are the "#1 source for advocacy for timeshare owners". Says who exactly?

(8) They have a seal on their website that states "Customer Service Champion Trophy / Legal Excellence Award". Again, says who exactly? This looks like a middle school photoshop project.

(9) They are not a legal firm yet their name, and other claims listed on their website, implies that they are a legal entity and is deceitful to the consumer.

(10) The bottom of their website has links for "Legal" and Privacy & Policy". Both of these links are non-functional.

(11) According to the BBB business profile, the managing partner is a Derek Freels. There is a Derek Freels associated with Timeshare Help Source, an out of business exit company. Timeshare Help Source's name is listed in an FTC suit with other timeshare entities. No proof that this is the same Derek Freels but is a concern with the other discrepancies.

I never did receive a response from the BBB, but I know they received my concerns because the Tennessee BBB reviewed MY personal LinkedIn profile. There were some minor changes made, maybe in response to my email, that included removing the claim on Encore Law's website of being in business since 2007 and the BBB profile was changed to reflect in business since April 2020. That date is still incorrect according to my findings. Worst of all, Encore Law, Inc. remained BBB Accredited, and they remain so today. Still frustrated because some of the concerns weren't even addressed, with the big one being that Encore Law, Inc. is operating illegally in the state of Tennessee because they have not filed with the state, I submitted these concerns in August 2024 to the Tennessee Attorney General. I received confirmation of the receipt of my concerns but nothing since. With today's news about the Minnesota Attorney General settlement, I sent another e-mail to the Tennessee AG asking if there is an update on my concerns and mentioned the Minnesota Attorney General settlement.

Encore Law, Inc | BBB Business Profile | Better Business Bureau

BBB Accredited since 4/21/2023. Marketing Programs in Knoxville, TN. See BBB rating, reviews, complaints, get a quote and more.

www.bbb.org

Finally, Kevin O'Leary of Shark Tank sold out as he did a endorsement video for Encore Law that was viewable from Encore Law's website. Either Encore Law stopped payments to O'Leary or he got wise that it wasn't good for his image to be associated with a scam as the video is no longer on the website. I wonder how many victims were persuaded by O'Leary's endorsement of Encore Law?

Kevin O'Leary of Shark Tank lowered himself to promote traveling exit company Encore Law, Inc.

This isn't going to end well for Kevin O'Leary. He should do more due diligence before he attaches his name to a business. Encore Law, Inc. travels the country putting on high pressure timeshare exit presentations in various cities. They portray themselves as a law firm, starting with their...

tugbbs.com

As a Canadian, I would avoid anything connected to Kevin O'Leary. As far as I am concerned he's a Con Artist.

 

[TolmiePeak]

While good for those consumers in MN, it probably isn't enough to squash these outfits and render them out of business.

Agreed. The Washington State AG sued Time Share Exit team back in 2020/2021. They ended up going out of business. It was the same company that Dave Ramsey got into hot water for promoting. Time Share Exit Team owners just probably moved to another state and started back up again.

 

[pedro47]

Agreed. The Washington State AG sued Time Share Exit team back in 2020/2021. They ended up going out of business. It was the same company that Dave Ramsey got into hot water for promoting. Time Share Exit Team owners just probably moved to another state and started back up again.

New name and new federal tax ID number

 

[LannyPC]

To be precise, there is no judgment. The three companies settled to avoid going to court. I'll take a look but I doubt the terms of the settlement are available, other than the amount to be returned to the consumers. There will be no admission of wrongdoing. There never is in situations like this.

Yes, it's important to know the difference between settling with the victims and the company being put out of business. While settling with the victim is a good start, it allows the company to continue with its business and ways.

I'm guessing that the victims were offered a refund if they "kept quiet". I'll admit that, if I were a victim, I'd probably take the refund and keep quiet rather than do what I could to expose the company and potentially put it out of business. Of course, I would learn my lesson and avoid all other exit/cancel/relief companies.

 

[chapjim]

Yes, it's important to know the difference between settling with the victims and the company being put out of business. While settling with the victim is a good start, it allows the company to continue with its business and ways.

I'm guessing that the victims were offered a refund if they "kept quiet". I'll admit that, if I were a victim, I'd probably take the refund and keep quiet rather than do what I could to expose the company and potentially put it out of business. Of course, I would learn my lesson and avoid all other exit/cancel/relief companies.

Turns out the companies were operating in violation of Minnesota law (charging upfront fees for debt settlement is illegal). So, the companies were put out of business (in Minnesota) until they reconstitute as new companies.

The $296K is refunds to the victims so taking the money is exactly what they did!

 

[dioxide45]

Turns out the companies were operating in violation of Minnesota law (charging upfront fees for debt settlement is illegal). So, the companies were put out of business (in Minnesota) until they reconstitute as new companies.

The $296K is refunds to the victims so taking the money is exactly what they did!

But there are 49 other states where they continue to operate. They just can't solicit MN residents.

 

[chapjim]

But there are 49 other states where they continue to operate. They just can't solicit MN residents.

Absolutely correct but they will probably solicit MN residents in their new name.

 

[TUGBrian]

But there are 49 other states where they continue to operate. They just can't solicit MN residents.

can hope that there are other states with the same complaints from their residents!