As the holiday season hits its peak, we at the Timeshare Consumer Association would like to offer help and advice to holidaymakers who could potentially be scammed or pushed into purchasing a timeshare due to pressurised sales tactics.
Owning a timeshare gives you the right to use a vacation home for a limited, planned period throughout the year. In addition, many sales representatives suggest that the property is an investment and that it yields beneficial tax consequences. Unfortunately, this is not the case and many consumers have discovered this after been tied into the contract they can no longer get out of.
According to a Tennessee Division of Consumer Affairs, in 2017, timeshares were ranked fourth on the list for receiving the most complaints, with over 270 complaints received alone. the way high pressured sales tactics are used was at the top of the list, followed by resale scams and misrepresentation of the product.
“Timeshares are attractive because they provide an easy way to vacation,” said Julie Mix McPeak a TDCI Commissioner. “While many consumers love their timeshares, and there are a number of reputable timeshare companies, it is important to check out the business and carefully review the offer before committing.”
We at TCA would like to offer the following tips to any consumer who may be considering purchasing a timeshare:
- Always research in detail the timeshare vender and the resort or group you’re interested in. Be sure it ticks all the boxes you require with regards to location and amenities.
- Timeshares are contractually binding, therefore, consumers must study their personal needs and means very carefully. Whilst the idea may seem great at the time, consumers also need to look at the bigger picture, in 5 to 10 years time, will it still have the same appeal, will they still be in the same financial situation, will they still be fit to travel? Also, the consumer must remember the maintenance fees will rise each year, and they must make financial allowances for this, the important question is could they still afford these fees in 10 years time?
- Most states in the US require licences in order to sell timeshare products. Check to see if the state you are considering has a fully licensed sales representative.
- Never feel pressured into signing a contract. Always ensure you have a clear head and make time to read what you are actually agreeing to. Read all the small print and make sure the contract accurately reflects any verbal promises the salesperson has told you.
- Familiarise yourself with the basic laws of timeshare, if you are to invest in something so grand, taking the time to understand the law, will be priceless in the long run.
- By allowing yourself time to become aware of such laws you will no doubt come across the ‘cancellation policy’. Some policies do differ with the timescale, however, please be aware most sales representatives will not inform you of your right to cancel. You as the consumer needs to ask about the time limit and the procedure should they wish to take this option.
Timeshare scams are plentiful and not only for people looking to purchase. Current owners are also approached and conned out of thousands of pounds. These scams often start with a telemarketer calling to offer to sell or rent the owners’ timeshares in exchange for a fee. Once the owner gives the telemarketer his or her credit card details, hundreds or thousands of pounds are then charged to their cards. Not so surprisingly the company then disappears into thin air and all contact ceases.
We at the TCA cannot stress enough the importance of reading and re-reading anything you are not 100% happy with or do not fully understand. Always proceed with caution if you receive unsolicited phone calls with an offer to buy your timeshare or a promise to sell your timeshare. If you feel this is something which may interest you ensure you research the reseller before paying any money or handing over any personal information. If you are asked to pay money upfront before the timeshare is bought or sold, that is a big red flag. If you are considering selling, look for a reseller that takes fees after the timeshare is sold and always get everything in writing. Read the contract carefully to make sure it matches promises you’ve already been given verbally.
If you feel you’ve been treated unfairly by a timeshare company, please contact TCA, we would like to share your story and warn others.
See our recent post regarding the exclusive club pitch.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk