The Newest Timeshare Scams: Do Not Turn out to be Their Next Prey (teen travelers)

February 4th, 2010 admin Posted in travel |

By John Farrow

First of all, it is pretty much futile naming and shaming the scam artists that are continuing these well-known scams, simply for the reason that as soon as they gather any harmful exposure they are closing down and reopening with a different image, even operating from different offices. For this reason, I have just given a general overview of the way each scam operates:

1) A company will call you (by telephone) asking if you want to sell your timeshare. They often by and large declare that they have someone who wants to give thousands for your timeshare. The fact is that after a lot of smooth talking you have to pay them typically anything from 300-1,000 (US$500 or more) in advance of the sale. They will even claim that you are covered against fraud by paying with your credit card, so this is a very popular scam, which several timeshare owners fall for. In truth you will not obtain payment for your timeshare as there is no waiting buyer and your credit card payment will be paying for a elusive item such as ‘advertising services’ which are non-refundable. At some point your waiting ‘buyer’ will mysteriously pull out of the deal but not until your payment has been processed.

2) This is a telephone call designed to establish a friendship with you. They often inform you that RCI have a litigation case in the USA that may entitle you to compensation of up to 15,000 (US$25,000) as an RCI member. They may possibly refer you to a website that provides you with an overview. The intention is to get you to go to a face to face discussion. They will invite you to meet with them to complete a appraisal on the topic of your dealings with RCI and then to establish what you’re entitled too. The bottom line is that you will be asked to part with cash to join the latest fabulous “Holiday Club” where they claim you will be able to access timeshare accommodation from 99 with no problems with availability. They also say that you will be able to take as many as you require with the cheapest flights around and possibly bargain price cruises. They will tell you whatever you need to hear in order to get your money.

3) Another telephone call with a different tact to put you at ease. This time they quickly point out they don’t want any money in advance. However they have a genuine customer who wishes to purchase your timeshare for x amount. They will get their commission from this. They will point out that they are in your locale and only request that you bring down with you your deed and a utility bill as verification of ownership. You turn up to a room with other timeshare owners discover that it’s a seminar on a holiday club. They will trade in your week worth x amount against theirs which is clearly worth more.

4) This telephone call is to enlighten you that your resort will not permit you to simply hand back your week if you no longer wish to own your timeshare and that they will send out the debt collectors to make sure maintenance payments are made. They may also persuade you that even following your death your timeshare will pass on to your next of kin as part of your estate, so they will go after them for maintenance payments too. They very kindheartedly will take over your timeshare usually if you pay up the next 10 years worth of maintenances to them.

Holiday Clubs. These are best avoided. Their presentations centre around the fact that you don’t have to possess timeshare but can access them for as little as 99. They are dressed up on occasion with two for one cruises and or heavily discounted flights. Again, whatever that needs to be promised to get the sale will be incorporated into their presentation.

Nearly all of these holidays clubs don’t even exist except for on paper (they do not own accommodation or have resources or systems in place to safeguard your investment). You will only ever see polished sales and marketing materials. Most of these holiday clubs have only very poor availability and only access a limited range of destinations. Their supply is just ‘fly-buy’ accommodation, where resorts pay them to get individuals to attend timeshare presentations whilst staying at a specific resort. So the perpetrators of these scams get paid by you when you join AND by the resorts that you visit.

The ‘Cash Back’ Scam persists: this is where a company will dress up their offer with an opportunity to get your capital returned after a certain period of time.

Usually you are informed that you will get your funds back after fifty-one months with a generous interest payment too. They explain in order to receive this you have to present your cash-back documentation on a certain day. As most members ‘forget’ to do this or the documentation gets mislaid, this (they say) is how they can afford to offer a ‘cash back’. They will inform you that they will not remind you and it’s down to you to remember and attend on the day. They will present various testimonials and legal bodies signifying that this is a real offer. They can be very persuasive but yet again, it’s a complete scam.

TIPS

IF you have been phoned once, you are more than likely to be on a file somewhere that will be accessed by other conmen , so expect lots of calls. Just tell them that your timeshare has been sold. That information will gradually filter down and you will get fewer calls.

The conman will be always be looking at new ways to obtain your cash and persuade you that they have something that will be of benefit to you. You will have heard the proverb that if something seems too good to be true, it probably is. Check out offers by using a Google search and don’t forget to ask your district trading standards agency for advice, as they are often the first to hear about the latest scams.

Article submitted by Bryan Farrow of sell my timeshare and timeshare advice free resources for timeshare owners

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