Timeshare Regulation In Cayman Islands

Our Comments: Doesn't this seem like a growing trend that governments feel the timeshare industry needs to be regulated. We see this as a positive and warn those who are looking to purchase timeshare resorts(even after all our warnings)in foreign countries to be sure that there is some type of regulations in place.

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The Cayman Islands Government has asked the Attorney General to look into the possibilities of regulating the timeshare industry in the aftermath of the failure of Indies Suites, Leader of Government Business Kurt Tibbett said.

“We certainly would like some way to protect timeshare owners in cases like [Indies Suites],” Mr. Tibbetts said.

Indies Suites failed after Hurricane Ivan because the operators were about 50 per cent under-insured and could not afford to rebuild the facility. The former timeshare owners of that property publicly called for some regulation in Cayman’s timeshare industry after they had to negotiate a compensation settlement for about 20 cents on their dollar invested...Entire Article

Timeshare Resorts From The BBB

Our Comments: Although they seem to be few and far between, there are news articles on timeshare resort vacations that warn people to be careful when it comes to timeshare resorts. The Fort Wayne News Sentinel has an article put together by the Better Business Bureau on timeshares.

While basic, it gives some of the main reasons to be careful when purchasing a timeshare and red flags that you should be on the look-out for when dealing with timeshare agents. Worth a read and definitely worth heading the warnings.

Malta Cracks Down On Timeshare Sales People

Our Comments: A big hand to the country of Malta that is cracking down on timeshare salespeople that are ruining the vacations of people with timeshare sales tactics.

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Too many incidents of tourists being confronted in the street while on holiday in Malta has led to the Maltese authorities taking action against the timeshare companies who employ sales staff to seek out possible visiting buyers.

Complaints have risen in recent years from holidaymakers who have had their time on the island spoiled by being approached on a daily basis to attend presentations - that can last up to four hours - in the hope that some will buy into holiday property ownership and timeshares...

And in a clever move designed to enforce the legislation effectively, the Malta Tourist Authority are being paid around 3000 Euros for each rep the timeshare companies employ for a bond that will allow them to work in a regulated way.

Instead of waiting to take each incident through the courts the MTA will be fining the companies found breaking the rules and taking the money out of the deposited bond money, with the timeshare companies having to make it up immediately to the required amount...Entire Article

Timeshare Relief Question & Answer

The following question came in which we believe is worthwhile answering:

"We have listened to a TSR "pitch" and were told over 900 folks have successfully been able to have their timeshare transferred from their ownership. Was this a blatant lie? Are the testimonials on the TSR site a complete fabrication?"

For those that aren't familiar, TSR is Timeshare Relief which is a company that will take your timeshare if you pay them several thousand dollars. While it may be true that they have taken timeshares from people, the scam comes in that you are paying them to take the timeshare. If you have reached the point where you are willing to pay someone to take your timeshare, go to one of the resell timeshare forums and offer your timeshare for $500 or even $1000. There are a lot of people that buy timeshares from people who want to get out of them and then resell them for a profit and many will take them for free if you offer them. The Timeshare Relief model is another firm taking advantage of those who find themselves in a timeshare trap.

Timeshare Upside-Down Loan

Our Comments: An email from a reader with a typical question about what happens when you you are trying to get rid of a timeshare resort vacation rental and still have a loan out on it. The situation is quite similar to those that want to trade in a car with an outstanding loan who find that the car's value is less than what they owe and this is referred to as an "upside-down loan" which basically means the amount you owe on the loan is more than what your car (or timeshare) is worth. Those that take out loans to purchase their timeshare units will often find that their loan is upside-down which is a common occurrence with a depreciating value asset.

When someone wants to get rid of their timeshare unit, they also want to get rid of the loan they have on it. Unfortunately, this is often not possible and the person will still have to pay off the remaining part of the timeshare loan since the money received when selling it won't completely cover it.

As we say time and again, never, ever prepay to sell your timeshare. It's a terrible scam that will cost you money and you will still have your timeshare and loan in the end.

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"I read an article where you said that you can sell your timeshare on eBay. Good idea. However, can you explain to me exactly how that would work, when I still owe money on my timeshare?

I have made the huge mistake of paying listing fees "upfront" to sell this thing and no luck at all. Hey I'm a slow learner, I did it more than once. Now I think I'm just stuck..period because I flat refuse to pay anyone anything especially upfront for fear of being ripped off again."