Timeshare scams must figure well within the top 10 money spinners for those unscrupulous individuals known as “Con Artists”. So what steps can you take to avoid becoming a victim?
Firstly it is important to understand how these fraudsters work. A starting point is that most scammers will be working from stolen data either from timeshare resorts or failed holiday clubs; such as EZE Group or Monster Travel etc. This is immediately illegal under the General Data Protection Regulations 2018 (GDPR). Most scams have a similarity, so let’s investigate the pattern:
The Cold Call
Normally the first approach of the scammer is to cold call you out of the blue – ALARM BELL ONE. In order to cover their unsolicited call they will often say they obtained your details from the Register of Timeshare Owners – NO SUCH REGISTER EXISTS. In the case of failed holiday clubs (EZE Group Etc…) or failed timeshare resorts (Silverpoint Etc…) they may claim that they got it from the official liquidators – HIGHLY UNLIKELY**. Their reason will often be that you have been awarded monies back by a court ruling normally for a group litigation claim, typically in Spain or Greece, and guess what? Your money is waiting for you to collect – NO SUCH GROUP LITIGATION CASE EXISTS. Other spurious reasons include them having a buyer or have sold your ownership, they will represent you in seeking financial compensation, they will assist you with cancelling your ownership etc.…
**Please note that if a company has contacted via an unsolicited communication, it is your legal right to insist that they provide you with documented evidence of where and how they obtained your personal data.
We are not suggesting that all the phone calls of this nature are from scammers. You may well have initiated communication yourself at some point and had since forgotten. As a consequence and long before they have “hooked you in”, it is very important that you do your own “due diligence”. This can be done by reviewing the points listed on our earlier article dated 16th March 2020 or alternatively you can simply contact us for help and guidance.
The Pitch
This varies but in all cases will sound extremely plausible, remember using the stolen data they may already know an awful lot about your circumstances; quite possibly including your name, address, date of birth, email, and exactly what you purchased, when and even how much you spent. Having convinced you that they are legitimate the silver toothed sales person will then lure you into believing that vast riches await you….so how do you get it?
The Sting
Now you believe the story you will be told that to progress your claim and obtain your pot of gold all you need do is pay some money, no doubt you saw that coming but the lure of vast sums has caught you off guard. If the scam runs to form your initial financial commitment will be fairly modest, say £595. Not bad considering the thousands you are about to receive.
The Sting – Part 2
By this stage they have got you hook line and sinker so what better way to maximise their scam but to ask you for more money, again the monetary amount will be pretty small but be beware it normally will involve a number of small separate payments such as £200 translation fee, £150 court fees, £200 legal fees, and so on. By the time they have finished with you, your commitment will normally be in excess of £1,000!
The Convincer
In 95% of cases you will be requested to make payments via a bank transfer; more on the reasons for this later. Although there is no legal consumer protection afforded to bank transfers, UK banks are becoming more concerned about fraudulent transfers but reversing one is still difficult. More victims of bank transfer fraud will get reimbursed by their bank due to a voluntary code launched on 28 May 2019, but not all banks have joined this scheme and you still will need to prove wrongdoing by providing concise evidence; which is often difficult if no paperwork actually changed hands. Additionally you will have to complain within a short timeframe and also prove that you did your own due diligence, which again may be very difficult considering in many cases there is no website to check, company address to search or meaningful documentation to review.
Deliberately designed to stop you reversing the transfer. The scammers will call you at regular intervals to give you an update on your claim, how efficient of them, you think. NO this is not efficiency it is to lull you into the belief that all is okay, so you won’t approach your bank to reverse the payment transactions.
After a month or so the calls suddenly stop, their phone number is disconnected, why? Because you are probably out of the timeframe to complain to your bank. So what will you receive for your £1,000 plus investment…….NOTHING!
The Golden Rules of Self Protection
If you receive an unsolicited call in relation to your timeshare ownership and/or holiday membership it is best to simply say that you are not interested, that said, you may have made enquiries yourself to specialist companies requesting information or assistance and they may have been late in responding, so you should always make a note of the companies you personally contacted because they may be the good guys on the other end of the line!
If you take the call and believe you are dealing with a bona fide organisation, ask for their website address, company registration details and credentials. If you allow them to make their presentation, ask for a confirmation email or better still a letter outlining their proposal. If they are a scam it is unlikely they will provide you with this information. Carry out your own investigations, most information can be sourced online and if in any doubt, please do not hesitate to contact us for help.
As a rule paying money up front on the basis of a single phone call is not common sense. Most legitimate companies will be able to provide you the sort of details quoted above, this will allow you to carry out your own due diligence. In many cases timeshare exit specialists or those conducting legal compensation claims may well ask for a fee in advance, but importantly they will almost certainly have their own a merchant facility so will accept credit cards. Obtaining a merchant facility is very difficult and only established legitimate companies have one, this is why scammers only offer bank transfers.
Always pay at least £100 by credit card as this offers protection in event of a failed service; regrettably this only applies to UK credit cards. Then the balance can safely be paid by bank transfer or by other means, as the total fee payable is protected by Section 75 of the Consumer Credit Act 1974. See below:
With the advent of technology, most of the good guys have video call facilities so they can take you on a virtual tour of their offices and all you need is a mobile phone, tablet or PC, which can be very reassuring for the average consumer!
Finally, when The Timeshare Consumers Association was created in 1997 the founder, Sandy Grey, created an unpublished White List and a Black List. To this day that list is maintained, so if you have received a communication relating to your timeshare/holiday club ownership and you doubt its validity, please give us a call or drop us an email and we will inform you of whether the people contacting you are the Good, the Bad or the downright Ugly!
Remember: Knowledge is power and it could save you both a lot of money and a considerable amount of heartache!
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