Timeshare owners are being targeted by a new vacation scam, with timeshare resale services being the hook. People are being cold called with services offering to sell their timeshare properties for an up-front administration fee. These services claim a buyer is already available to purchase the property. When people pay this administration fee, they will receive another call that claims the original deal has fallen through, but they have found another potential buyer and the current timeshare owner will need to attend a meeting.
These meetings are really sales pitches for timeshare owners to exchange their current timeshares and thousands of pounds to join an “exclusive holiday club.” Club members would receive holiday discounts and accommodations. Some clubs are actually legitimate and render the services they advertise; however, many others charge the upfront fee and an annual subscription fee for almost no return.
Mary Parkinson, a 53-year-old teacher who went through this process and paid all the fees, has yet to go on vacation through her club. The fine print of these timeshare resale contracts include no guarantees of the bargains their reps claim and no promise of destinations or dates. Most people are told they cannot go to where they want when they want to, or they are offered prices that are not actually discounted.
Mary is one of thousands who has gone through this ordeal. In 2008, the Timeshare Association helpline received more than 6 thousand phone calls, with over 40% being complaints, the majority of which were about unscrupulous resale practices or holiday club scams.
Chief Executive of the timeshare trade body Resort Development Organization, Paul Gardner-Bougaard, warns that these scams are still changing. One of the major holiday clubs is perpetrating a scam that persuades the owners they may have a claim against the timeshare developer or exchange company. When consumers meet with this holiday club to discuss this class action, which is completely false, they are persuaded to buy into the holiday club.
These companies will be better regulated starting in 2011. “The new Timeshare Directive, due to come into force in February 2011, will make life difficult for these operators, as they will no longer be allowed to take all the money upfront,” says Gardner-Bougaard.
In the meantime, however, consumers should be aware of these scams and be wary of any high-pressure sales tactics. Remember, you do not have to sign anything, regardless of what the sales representatives say.
If you are interested in getting out of your timeshare and all its maintenance fees then make sure and go with a reputable company like Transfer America who has already helped thousands of timeshare owners.