The Newest Timeshare Scams: Don't Turn Out To Be Their Next Prey
First of all, it is pretty much pointless naming and shaming the companies that are continuing these common scams, simply because as soon as they gather any harmful press they are shutting down and reopening with a fresh name, even operating from different offices. For that reason, I have simply given a broad overview of how each scam works:
1) A company will call you (by telephone) asking if you hope to get rid of your timeshare. They will typically state that they have somebody who is ready to pay thousands for your timeshare. The bottom line is that after a lot of smooth talking you have to pay them by and large anything from £300-£1,000 (US$500 or more) up-front. They may even assert that you are covered against fraud by paying with your credit card, so this is a very popular scam, which numerous people fall for. In reality you will not pick up payment for your timeshare as there is no waiting customer and your credit card payment will be paying for a ambiguous item such as 'advertising services' which are naturally non-refundable. At some stage your waiting 'buyer' will strangely pull out of the contract but not before your payment has been processed.
2) This is a telephone call intended to establish a friendship with you. They will notify you that RCI have a court case in the USA that may well entitle you to reimbursement 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 objective is to get you to go to a face to face appointment. They will invite you to meet with them to complete a evaluation on the subject of your dealings with RCI and then to establish what you coud be entitled too. The bottom line is that you will be asked to part with cash to join the latest super "Vacation Club" where they state you will be able to access timeshare apartments from £99 with no problems with availability. They also say that you will be able to take as many as you would like with the cheapest flights around and perhaps half price cruises. They will tell you whatever you need to hear in order to get your money.
3) Another telephone call with another tact to put you at ease. This time they immediately point out they don't want any money in advance. However they have a real buyer who wishes to purchase your timeshare for x amount. They will receive their commission out of 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 evidence of ownership. You turn up to a room with further 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 inform you that your resort will not permit you to simply hand back your week if you no longer wish to use your timeshare and that they will send out the debt collectors to make sure maintenance payments are made. They may also convince you that even after your demise your timeshare will pass on to your next of kin as part of your estate, so they will chase them for maintenance payments too. They very kindly will take over your timeshare usually if you pay up the next decades' worth of maintenances to them.
Holiday Clubs. These are best avoided. Their presentations centre around the idea that you don't have to possess timeshare but can access them for as little as £99. They are dressed up from time to time with two for one cruises and or heavily discounted flights. Again, whatever that has to be stated to get the sale will be integrated into their presentation.
The majority of these holidays clubs don't even exist except on paper (they do not own accommodation or have assets or systems in place to safeguard your investment). You will only ever see slick sales and marketing materials. Most of these holiday clubs have only very poor availability and only access a restricted range of countries. Their inventory is only 'fly-buy' accommodation, where resorts pay them to get people to be present at timeshare presentations whilst staying at a particular resort. So the perpetrators of these scams get paid by you when you join AND by the resorts that you visit.
The 'Money Back' Scam continues: this is where a company will dress up their proposition with an opportunity to get your capital refunded after a certain period of time. Normally you are informed that you will get your money back after a period of (say) three years with a generous interest payment too. They make clear in order to receive this you have to present your cash-back certificate on a particular day. As most members 'forget' to do this or the documentation gets lost, this (they say) is how they can have enough money to offer a 'cash back'. They will inform you that they will not remind you and it's down to you to remember and be there on the day. They will exhibit various testimonials and legal bodies showing you that this is a legitimate offer. They can be very convincing but yet again, it's a complete scam.
TIPS
IF you have been called once, you are more than likely to be on a list somewhere that will be accessed by other conmen , so anticipate lots of calls. Just notify them that your timeshare has been disposed of already. That information will steadily filter down and you should get fewer calls.
The conman will be relentlessly be looking at new methods to access your cash and persuade you that they have something that will be of benefit to you. You will have heard the saying that if something seems too good to be true, it probably is. Check out claims by using a Google search and don't fail to remember to ask your local trading standards agency for assistance, as they are often the first to hear about the latest scams.
