We suppose it’s best to begin with an explanation of what is recovery fraud. In basic terms it is a fraud perpetrated by fraudsters who already know that you have been defrauded by another company. The kind people who contact you, normally by cold call, seem to know that you have been the victim of a failed company and for a fee they will not only finish the job you originally paid for but will reclaim the money you paid. All good so far, but is it?
How do they know?
This is a very good question, how do they know? Well let’s analyse. Scam timeshare exit and claims companies are prolific and a common trait is that sooner or later they are discovered for the con outfit they are and go out of business, on the surface this actually happens but the reality is they simply reinvent themselves and start all over again.
More often than not the company you paid to handle your claim or exit contacts you then informs that because of some spurious reason they have had to cease trading. Worry besets you, all that money spent wasted and you can’t see a way of getting it back but lucky for you a knight in shining armour contacts you with the good news that your money can be recovered from the failed company and for a fee they will carry out the work.
It should now become obvious that the reason why this new company knows so much about you, including the details that you paid the previous company, is because they are one of the same.
Our advice
Without being too blunt, you were scammed in the first place and if you continue down the same route, you will be scammed again and the fact of the matter is this scenario can carry on and on ad infinitum with the same result, nothing! Once again, the story may be convincing and the promise of help compelling but the truth will out when exactly the experience you had previously repeats itself.
The majority of these scam operators are based in Tenerife or Mallorca so legally this makes recovery of money spent extremely difficult. If you ask them to take the fees from the money they claim they will recover, they will give reasons why this isn’t possible. For example, they might tell you that your money is under the control of a court and can only be paid back to you by them.
Recovery fraud is certainly on the rise and something you need to be wary of. According to Action Fraud, data from the National Fraud Intelligence Bureau (NFIB) at the City of London Police has revealed that over £373 million was lost by repeat victims of fraud in the financial year 2019/20, with the average repeat victim losing £21,121. Whilst we appreciate that this is the overall figure, timeshare repeat or recovery fraud will certainly figure in these numbers.
If contacted in this manner, may we suggest you get in contact with us. We will be able to offer advice as to whether you are exposing yourself to possible recovery fraud and the action you should take.
Coincidence
We have just been informed of a criminal case surrounding timeshare recovery fraud took place at Reading Crown Court resulting in custodial sentences for the defendants. Although the journalist continues to refer to policies and policy holders this is a mistake as the whole fraud revolved around timeshare resales. Below is an important section of the article which we have corrected as per the above:
“After payment, the companies could not be contacted. Timeshare owners were then contacted by an apparently unconnected company which offered not only to sell back their timeshare but also to recover the advanced fees.”
As you may see, this comment mirrors the content of our article. According to the Reading Chronicle report of the 24th March, the extent of the fraud was in excess of £645,000. The full article may be read here.
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