Unfortunately for a lot of undeserving families, couples and individuals, the timeshare industry is one that has been rife with corruption for decades now, with thousands falling victim to timeshare scams.
Here, we uncover the truth behind some of the most commonly used scams with insights from experienced timeshare solicitors to help equip you with the knowledge you need to protect yourself.
Timeshare scams tend to fall into 2 categories, those that aim at selling a timeshare and those that target existing timeshare owners.
Buying a Timeshare
The general presentation of a timeshare deal will include the offer of a fantastic timeshare property that can be purchased at an incredibly low price. In a lot of cases, these don’t actually exist or are in fact very different from the images or what is promised. Some of the tactics used by these scammers include;
-
High Pressure Tactics
It is widely reported the lengths that these unethical salespeople will go to in order to trick consumers into signing contracts and handing over their money. From creating a sense of urgency to emotional appeals and making contact numerous times over a short period, these pushy, hard-sell techniques are a clear sign that a scam is afoot.
Never feel rushed or pressured into making such a big decision, always take the time to go away and think about it, get a second opinion, do your research and seek legal advice if necessary to protect yourself and your money.
-
Upfront Costs
Often, these companies will claim to need a deposit or some kind of upfront payment to cover processing or legal fees etc before the purchase can go ahead, but these are usually undisclosed and non-refundable. Make sure that you read all the fine print and ask for a written, itemised list of all fees before you sign any contract or hand over any money.
-
Free Holidays
Some companies will offer “complementary” trips, cruises or holidays to exotic locations claiming them to be completely free, with no obligation and all you need to do is to attend a ‘presentation’ or ‘meeting’. The reality is that they use these to entice unsuspecting consumers into an unpleasant environment where they are pressured into agreeing to something they don’t want or having to pay hidden fees and never actually receiving the vacation they were promised.
-
Misrepresentation
This happens when a timeshare salesperson or company misrepresent what they are selling. You also have to be careful because nowadays a lot of them know to avoid the term timeshare altogether and instead will cover it up with investment opportunities, vacation ownership, holiday clubs, fractional ownership and many more.
It can also be that in order to convince the buyer they lie about the number of units, availability of the property, maintenance fees, the terms of ownership, that the property is a good investment or even its location, condition and size. Be sure to do your own research, check the credibility of the company, ask for documentation and consult with a real estate lawyer before you make any final decisions.
Timeshare Resales
These types of scams are aimed at those who already own a timeshare and are usually unhappy with them or desperate to sell which is why people often fall for them.
-
There’s a Buyer
Whether your timeshare is up for sale or not, being contacted by someone claiming to be a real estate agent, broker or company that handles timeshare sales is a huge red flag. They will usually state that they have a buyer waiting and lined up ready who is very keen, and the offer may even be for more than you would expect or than you originally paid. The truth is that there is no buyer and once you pay the upfront ‘fee’ that they need to process the sale, you will never hear from them again.
-
Timeshare Cancellation
Not to be confused with legitimate timeshare solicitors, these scammers claim to be attorneys, lawyers or legal practitioners who say they will cancel and get you out of your timeshare contract and could even get you compensation. Some have been known to offer a money-back guarantee or similar in order to rope in unsuspecting victims who believe they have nothing to lose when in fact that’s exactly what happens as they end up further out of pocket.
-
Sell Your Timeshare for You
It might be that they represent themselves as legitimate timeshare resellers with the brand name, the logo, the business card and even the website, but all are very easy to fake nowadays, so don’t be easily fooled. These people may claim to have hundreds of potential buyers on their books and a high success rate of selling timeshares just like yours quickly and for a great price.
Similarly to an estate agent, they might even offer to take photos and details of the property to list on their ‘website’ or send to prospective buyers, after the upfront fees for this service are paid. Of course, nothing will ever come of it so always be wary of those approaching with such claims and check references and credibility before agreeing to anything.
