The answer is very simple, it is not bought it is sold, from years of working with timeshare purchasers trying to get out of their contracts it is very clear that unlike any other product consumers will purchase they did not go out with the intention of buying.
We all know the scenario; you are on holiday and are approached in the street by the “ticket touts” or more commonly known as OPCs, these are the guys tasked with getting you the punter into a presentation for a timeshare product. The scratch cards and the gifts offered to attend sway you into accepting, a big mistake which does not become apparent until possibly a few years later.
You then spend the next few hours being “sold” a membership into a timeshare scheme, the pressure to purchase there and then is extreme, and the patter is the offer is for today and today only, unlike anything else you are likely to purchase in your life. And that is not the end, more is to come, there will be the never ending “invites” to “updates” a euphemism for another sales agent to upgrade you to a “better” product.
It also has the pitfall of your details being “leaked” to the world of the scammers, those “cold callers” with offers of “purchasers” waiting to buy your timeshare, the “exit” companies and legal claims marketeers who promise to get you all your money back.
Research
Unlike buying a new car where you may visit several showrooms, read the brochures, and find the car you like, which suits your needs and pocket, or even the new washing machine or television, you have time to research and ponder your purchase. Timeshare does not allow for that, you are “offered” one choice, and your decision must be there and then, no time to research the product, or even decide if it is right for you.
How many of you have received “cold calls” offering to “buy” your car or washing machine, television, or any other purchase you have made?
The answer is probably zero.
How many of you have gone out and bought the first car a dealer has shown you, or the first washing machine you have seen, again it is very doubtful that you have.
Let us take the washing machine as an example, the questions you will ask yourself is do I need an all singing, all dancing one, with so many functions that you are very unlikely to use,(and need a degree to operate), or do you go for the basic model with less functions and is easy to use?
The chances are that unless you are an avid “techie” who wants all the latest “gadgets” or a large family with a vast array of washing needs, you will go for the basic. You will also not purchase at the first store you visit; you will tend to shop around and get the best deal.
Timeshare does not give you that opportunity, it is a product that requires constant sales, Europe is a prime example of this. Many resorts are now ending or have ended their timeshare associations, purely because it is no longer financially viable to continue, no new sales, which means no new members to pay the maintenance fees and keep the resorts going. They now find it more profitable to allow the free market to rule and use the internet along with tour operators to fill their resorts and hotels.
Enter the scammer
As we stated in the beginning, timeshare also comes with the prospect of a never-ending stream of “cold calls” after purchasing, all with offers that appear to be genuine and very tempting.
Again, the emphasis is on signing up there and then. In the past it was the resale scam, the most common being the “corporate” buyer who is willing to pay huge amounts for a product that is essentially worthless. This has largely been replaced with the “exit and claims” scam, all using data more than likely stolen from the timeshare company.
Using the old timeshare saying of “once a buyer, always a buyer”, they will play on the fact you are desperate to get out and will entice you through “greed” with offers of huge compensation payouts. They will also use the time factor to ensure you sign there and then, if you don’t do this now then you will lose out as there is a cut-off date to lodge your claim.
Are you in or are you out?
One of the latest trends is the “debt” factor, this targets those who are already out of their timeshares, or according to the caller you are only “suspended” and are liable for all the “arrears” in maintenance payments. This comes with the inference that you are about to be taken to court in order to recover that “debt”.
As with the initial sale, the purpose is to ensure you don’t have the chance to research the validity of what they are telling you or the validity of the company they represent. It is only after you have paid and usually by bank transfer that you have some doubts and begin your search only to find that it was all a scam.
You can take a horse to water…
That being said, it always amazed me the number of people who contacted me while running Inside Timeshare and After Inside Timeshare wanting to know if a “cold caller” and what they are saying is genuine. Then once they have been told it is a scam, including all the evidence, they actually went ahead and paid, culminating in many emails and phone calls on how they can get their money back. From that, the only thing I can conclude is their minds were filled with the “money they will get back”, in other words they succumbed to greed.
The moral of the story is simple, cold calls usually mean “scam”, do your research and then more, don’t be blinded by the “payouts” promised, think it through carefully and you will see it for what it is, A SCAM!
Editors’ note: Our guest contributor for today’s article is Charles Thomas who for many years ran Inside Timeshare and After Inside Timeshare, both similar advisory sites to TCA. Although Charles has now retired, he likes to keep his finger on the pulse regards matters timeshare.
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