Timeshares are said to be booming. With the rise in popularity for these corporate loans, with terms that are so attractive to timeshare sellers, it is no wonder why they say this. The money is too good to be true for these timeshare sellers, and they want to take advantage of it. If you need a timeshare refund, contact The People’s Advocate.
A timeshare is an ownership interest in a vacation property. When you buy a timeshare, you usually pay upfront for the right to use the property for a fixed number of years. The timeshare contract usually allows you to resell your timeshare, either during or at the end of your term. However, you may need to pay a small fee if you resell it within a certain period.
A timeshare usually consists of the right to use one or more weeks at a vacation property.
The weeks are usually numbered, and when you resell a timeshare, you don’t get cash for the weeks you didn’t have the right to use. Instead, you get credit, usually in points, for the number of weeks you didn’t have. The number of points you have is dependent on how old the timeshare is and is more or less fixed, regardless of when you resell.
An exchange company arranges for owners of timeshares at resorts worldwide to get together to swap the weeks they don’t have. If you want to go on a vacation, you can usually buy a week at a resort for face value. Sometimes you can exchange your timeshare for points and then buy a week for face value.
If you walk away from a timeshare, you are stuck with the points you don’t get when you resell. You will probably not get those points back. Even if a resort offers to exchange your points or will repurchase them from you, you may have to pay a hefty fee.
Over the couple of years have seen a substantial increase in timeshare fraud, it’s still not an especially common problem. In most cases, the timeshare owners, who are mostly elderly, are victims. But once in a while, someone younger is a victim. This usually happens when someone lures the buyer into a “teaser” offer — a very cheap vacation for a meager fee. Then, when the timeshare buyer is ready to buy the timeshare, the seller disappears, taking all the money.
The Federal Trade Commission has a list of tips to help buyers avoid being tricked. Here are some:
- Don’t buy anything based on promises about future weeks; instead, buy based on current weeks that are available.
- Pay for the timeshare with a credit card; then, you can dispute the charges if the seller doesn’t deliver as promised.
- Read any contract carefully.
- Be wary of sellers who contact you unexpectedly, whether by email or phone or who don’t provide appropriate identification.
- Don’t depend on the seller’s word alone. Get independent confirmation of any promises made.
- If the seller says, the trip must be paid for in advance, at least ask for a deposit before paying.
- Ensure you get a receipt for any payments you make.
- Although the FTC says it’s OK to sell timeshares, many buyers find they can’t resell their timeshares. In that case, if the seller refuses to refund your money, contact the state Attorney General’s office.
Conclusion
The timeshare industry is riddled with scams. Some companies claim they can sell your timeshare for more money than it’s worth, even though they only have a contract with you. They may even try and sell you a timeshare for more money than it’s worth, even after you’ve told them you no longer have one.
Then some people claim they can buy timeshares from you on the secondary market. (You can sell your timeshare on the secondary market.) These people are scammers. They may have a relationship with a timeshare company, but that’s no guarantee they won’t try to rip you off.
It’s not always easy or clear to know what is legal and what isn’t. There are companies out there that advertise themselves as “timeshare brokers” or “timeshare resale companies.” That’s fine, but it’s less clear what they do. If you get a solicitation from a timeshare company or someone claiming to be one, tell them you’re not interested. If they persist, act surprised. But never give them any money. Tell them you’ll call the Federal Trade Commission.