Timeshare Trap

Beware Timeshare Trial Programs

2009-05-23T13:21:00.000-07:00

Timeshare trial programs are being used as a selling point to get uneducated vacationers interested in timeshare ownership. Many people have never heard of a timeshare trial program and might think it’s a good deal. It’s really just another attempt to lure you into buying a timeshare. Don’t fall for it.

Timeshare developers have found that 60% of the people who purchase a trial program can be more easily persuaded to buy a full timeshare. When they sell a perspective customer a trial program they include a mandatory presentation in the purchase. Then they make sure that the trial period is an easy, relaxing, all-around-wonderful experience. At the mandatory presentation they apply all their slick sales tactics and Bam! they get an easy sale.

If you are planning a vacation please be aware that you may be approached by a timeshare developer or salesperson. They might offer you a lot of great prizes, such as free accommodations or even money. No matter how great it sounds, say no thank you. It’s just another sales tactic to get you to purchase something you will have to pay on for the rest of your life. -- M. Beddingfield

Timeshare Owners Bear Cost of Others Misfortune

2009-05-20T13:18:00.000-07:00

We all know that the economy is bad. Some people are having trouble paying the expenses of their primary home and putting food on the table. Vacation ownership is at the bottom of their list of priorities. People are abandoning their timeshares. They don’t have the money to pay on the ever-increasing maintenance fees and mortgage costs. This is causing a trickle down expense for other timeshare owners.

A deeded timeshare owner is responsible for covering the additional debt caused by other timeshare owners walking away from their responsibilities.

A deeded ownership in a timeshare means that you and all the other owners share the maintenance costs of the facility. When one owner walks away the cost goes up a little bit for each other owner. When several deeded owners choose to abandon their responsibilities, then the cost is exponentially higher for all the other owners. As the cost continues to rise, more owners will not be able to pay their bills.

This looks like a vicious circle that will only continue to get worse as the market struggles to fight off the depths of the current recession. So here is yet another reason not to buy a timeshare. -- M. Beddingfield

Buying Timeshares on eBay

2009-01-11T17:55:00.000-08:00

Even with the bad economy, timeshares are selling on eBay. All the big names are there, Disney, Hilton Head, Wyndham, plus timeshares in exotic locales like Aruba and Los Cabos. Many of them are listed for less than $100. Some of them for a little as $1. Uneducated buyers are hoping to get lucky and win the vacation spot of a lifetime.

You might be as lucky as one buyer. He bought a timeshare in the Catskills for $2. What he got was a $75 resort fee, a $400 closing fee and an $800 maintenance fee. He had to pay all of that before he could use the timeshare. Then it wasn’t quite what he had in mind for a yearly vacation, so he had to pay more to join an exchange club. Now he pays over $1000 a year for a beautiful vacation spot that he doesn’t use. He’s so lucky that he will have to pay fees on this timeshare for the rest of his life or until he can unload it on another unsuspecting eBay buyer.

EBay is known for its bargains. Timeshare sellers are jumping aboard and hoping to purge themselves of yearly fees and unwanted mortgages. Right now there are over 1,700 timeshares listed. Before you go off half-cocked at the sight of a real bargain – understand that a timeshare is never a bargain, even at the unbelievable price of $1. -- M. Beddingfield

Timeshares for Nudists

2008-12-29T20:37:00.000-08:00

The Valhalla Vacation Club, a timeshare community featuring a nude swimming pool and spa area, was once a 390 unit, family community. Originally called The Arbors at Branch Creek, this apartment complex in sunny Florida has had difficulty attracting tenets.

The apartment complex was slated to become condos with a European theme. Apparently the market for condos isn’t any better than it is for apartments. Eric Dukes, who is the director of sales for the Valhalla Vacation Club, says plans have changed and the units will become timeshares. Timeshares targeted to attract nudists.

Eric Dukes is also the owner of Attraction Realty. According to the St Petersburg Times, Attraction Realty’s website claimed that its number one goal was to help create wealth in real estate. The website has recently expired.

I’m all for nudity. However, when nudity is exploited as a means to promote timeshares, I think perhaps someone is not telling the naked truth. Do I see a cover-up? - M. Beddingfield

source

Timeshares and the Bad Economy

2008-12-24T00:01:00.000-08:00

The bad economy will have an affect on any timeshares that you own, and that affect will not be good. Even if you have been responsible and have always paid your timeshare fees and timeshare loans on time, you are going to end up paying more because of those people who don't:

1. Your fees will increase. When people stop paying their timeshare fees and their timeshare ends up getting foreclosed on, the timeshare resort loses money. They have to make up that lost money somewhere and it is usually in the form of higher fees for all the other timeshare owners.

2. You will Likely see timeshare surcharge fees: With less of a base to support the timeshare and a credit crunch that is making it hard to finance the timeshare projects the timeshare resorts already have going, you will likely see special surcharges added to your yearly bills to help defray these timeshare resort costs.

3. Your timeshare is worth less: It wasn't worth a whole lot before, but it is worth even less now. Very few people want to buy (or can afford) a timeshare in a bad economy and that means prices of timeshares are falling like a rock to the ocean floor.

These are some of the reasons that the faltering economy will mean your timeshare costs you even more money...

Timeshare Inheritance

2008-12-22T00:01:00.000-08:00

One of the biggest shocks that many people receive is when they inherit a timeshare from their parents. They assume that they are inheriting something of value and not something that will suck money out of their bank account. It doesn't take them long to figure out that the timeshare isn't what they had expected.

What many people don't realize is that they don't have to accept a timeshare that they have inherited. It's perfectly within your rights to refuse it:

You have to file your Disclaimer of Interest within a certain time period, usually nine months from the date of the death of person you inherited the property from; unless you are under the age of twenty-one, then the time period begins when you turn twenty-one.

It doesn't stop there of course. If you refuse it, it goes to the next person in line so each person in the family must disclaim it. For more information you can read
How to refuse a timeshare inheritance.

Richard Petty is not Selling Timeshares

2008-12-19T00:01:00.000-08:00

If timeshares were a decent deal, it wouldn't take the sleazy efforts that timeshare resorts go to to try and get you to hear their pitches. Since they aren't, they use anything they can to try and take your money and lock you into lifetime payments. One of their latest below the belt tricks is using the good name of Richard Petty.

There’s a new scam circling the racetrack. It’s a telemarketing ploy. If you get a phone call saying that you have won a Richard Petty Driving Experience, don’t get behind the wheel! What the telemarketers are really selling is a timeshare presentation. They are taking advantage of a real Richard Petty sweepstakes that does exist and trying to confuse potential customers. Remember -- don’t ever give any personal info to an unknown telemarketer, especially your credit card information. -- M. Beddingfield

http://contests.about.com/b/2008/11/01/warning-about-timeshare-calls-disguised-as-richard-petty-sweepstakes-wins.htm

Trainshares - an idea as bad as timeshares

2008-12-17T00:01:00.000-08:00

If you like train travel, there are a lot of different and exciting vacations that you can take in the US and around the world while travelling by train. What's a good way to take this exciting experience and force you into paying for it for life? Why none other than trainshares! (timeshare for trains)

Ride a train once a year and pay for the rest of your life. Prices range from $3970 to $6670 per person for the simplest package, and then add on yearly variable maintenance fees which pay for car operations, planning, management, the Association Administration and other costs. Add to that something called all-inclusive fees which pay for variable and consumable costs like the engine to pull the cars, housekeeping, food, crew and activities. Then, trainshare owners are expected to also pay for personal costs such as beverages and services. There are surcharges and other fee too.

Wow! You really have to pay extra for the engine to pull the train? -- M. Beddingfield

Timeshare Companies Selling Themselves Out of Business?

2008-12-16T00:47:00.000-08:00

While this isn't good news for those that own these timeshares, having the entire timeshare industry disappear would be a positive development in my book. The poor economy seems to be hurting timeshare resorts full force although (surprise, surprise) they don't want you to think they are.

Timeshare companies, Westgate Resorts and Wyndham Vacation Ownership, are sending out mixed messages. They claim that sales are still going strong and growing but say they are selling themselves out of business because they can’t trade customer financing for funding.

Wyndham Vacation Ownership is cutting its workforce by one-fourth in an all out effort to restructure. The company relies on asset-backed securities to fund the building of new timeshares.

Westgate Resorts is also laying off more employees. Dave Siegel is working hard to quell the rumors that the company is on the verge of bankruptcy. -- M. Beddingfield

source

Don't Buy A Timeshare, Rent a Timeshare

2008-12-15T00:01:00.000-08:00

I'm getting sick and tired of pro timeshare people telling me that timeshares are a better value than hotels when it comes to a vacation. There is just one little problem with their argument which is that you can rent a timeshare unit for far less than it costs to own one and avoid all the risks that come with owning a timeshare. It's easy to rent a timeshare because there are so many people that can't use theirs and want to make at least a little of the money they have put into it back. It's crazy to own a timeshare, pay all the fees and other costs when you can rent the exact same timeshare the exact same week at the exact same resort 99% of the time for far less. Just one more reason never to buy a timeshare...

Selling Timeshares Through Family Guilt

2008-12-10T00:00:00.000-08:00

Timeshare salespeople are selling the concept of family this holiday season. With sales growth down, salespeople are hitting the public where it smarts the most, in the guilt department. They are pushing the idea of family vacations, family holidays, spending more time with your family and so on.

I’ve perused several timeshare websites and they are really promoting the family value message. One said that vacations are a necessity for stressed out families and that timeshare owners take more vacations. Another quoted that during tough economic times we need to bring the family together more than ever and that if you owned a timeshare that would be easier to do.

I don’t disagree that family is important, but it’s just wrong to use the idea of spending more time with your family as a way to sell timeshares. This is just another example of how they use hard hitting, underhanded sales tactics that play on the emotions. If timeshares are so great, wouldn’t they sell well without high pressure methods? -- M. Beddingfield

Timeshare Owners Deceived

2008-12-05T00:01:00.000-08:00

According to a recent federal audit, timeshare owners were billed for political contributions along with their tax and maintenance charges. The owners weren’t told that the contributions were voluntary and in some cases might not have even been aware they were paying them.

Timeshare owners in Florida and other places contributed tens of thousands of dollars in small amounts. These improperly solicited contributions were funneled into a political action committee set up by the American Resort Development Association.

The auditors say that the ARDA political action committee violated other federal election laws as well by accepting thousands of dollars from foreign nationals and other corporations. Criminal probes have been launched by the Department of Justice.

Source

The Risks of Renting Your Timeshare

2008-12-03T00:02:00.000-08:00

Most people think that renting out their timeshare will be easy if they aren't able to use it. Not only is it more difficult than they expect, it also comes with some risks. For example, most people forget that they could be responsible for any damage, no matter how slight, the people renting their timeshare cause while on vacation. There are plenty of other timeshare rental issue you need to consider which you can find at the risks of renting your timeshare

Timeshare Developers Ask For Bailout

2008-12-01T07:44:00.000-08:00

By M. Beddingfield

I find this so ironic. Timeshare resorts will put individuals through a ringer if you don't pay your fees on time and show no mercy at all, but then the go to Washington with hands extended asking for free money. The nerve...

Basically, this is what happened:

The American Resort Development Association (ARDA) approached Washington in October looking for a helping hand. Timeshare developers, who borrow against the mortgages they issue to buyers, are frozen like the cold credit markets. Their multi-million dollar transactions are falling through.

The ARDA says that timeshare sales continue to be made but they have a serious liquidity crisis that threatens the industry’s continued ability to survive. The ARDA is asking the Treasury Department to support developer’s short-term company loans in exchange for insurance backed by an industry fee.

Thus far, the ARDA is getting little support from the Treasury Department, though they have been asked for documentation to back up the statements being made.

Maybe they should spend some of the money they set aside for lobbying on Capitol Hill. Just this year, the ARDA spent $540,000 opposing mortgage reform and truth-in-lending requirements to timeshare buyers. They also paid Tallahassee lobbyists $270,000 and made campaign contributions, to both parties, of over $814,000.

Source

Economy Hurts Timeshare Companies: Worst Shape in 20 Years

2008-11-27T00:01:00.000-08:00

By M. Beddingfield

Central Florida Investments, Inc., a company with more than 10,000 employees and approximately 2 million timeshare owners, is feeling the financial squeeze "with the suddenness of a heart attack." According to David Siegel, CEO and president, they went from having a fantastic beginning of the year to "experiencing an unforeseen business emergency brought on by the collapse of the credit markets."

The company owns Westgate Resorts and has closed down its Houston premiere gallery, laying off all 106 staff members. Twenty-eight resorts in eleven states will also be affected with hundreds of sales associates losing their jobs.

Ed Hastry, president of the National Timeshare Owners Association, says the timeshare industry is in its worst shape in 20 years.

With credit no longer so easy to obtain, everyday Americans aren’t digging into their cash stash to purchase overpriced timeshares. Isn’t it funny that when money gets tight, people tend to become better judges of value?

source

Timeshare Deliquencies Rise

2008-11-26T00:00:00.000-08:00

With tougher economic times, it really shouldn't come as a surprise that more and more people are having issues with the timeshares that they own. While more and more want to sell, it seems like a lot are finding that they just can't afford them anymore and are missing their scheduled payments.

Standard & Poor's reports that total timeshare delinquencies rose to a new high of 4.2% in September 2008 and averaged 3.9% during the entire third-quarter.

If you are having trouble keeping up with timeshare payments, it's time to swallow that bitter pill and realize that you aren't going to get back any of the money that you used to purchase the timeshare resort unit. As the economic crisis worsens, it's going to be even more difficult to get rid of your timeshare, so mark it up to an expensive financial lesson and do whatever it takes to sell it now.

Westgate Timeshare Resorts Ordered to Pay $1 Million

2008-11-25T00:01:00.000-08:00

By M. Beddingfield

Westgate Resorts, a Florida-based timeshare firm, has been ordered to pay $1 million in punitive damages by a Utah County. The reason? They were using travel vouchers that were too difficult to redeem.

Like many timeshare companies, Westgate used travel vouchers as bait to get people into their sales tours. They promised free trips for two to California, including air fare and lodging in Anaheim. What they didn’t disclose was the fact that there was also an upfront cost to redeem the travel voucher and severely limited restrictions.

In the trial, the jury gave punitive damages to Westgate to make a point to the timeshare industry that fraudulent schemes will not be tolerated.

Westgate Resorts plans to appeal the final civil judgment and says that the independent telemarketing firm in charge of scheduling the tours should have made callers aware of the travel restrictions.

Source

ABC News Timeshare Video

2008-11-24T00:01:00.000-08:00

ABC news did an accurate piece on timeshares and the troubles that they can cause called Timeshare, Beware! That is putting it mildly in our opinion.

With over 4.7 million people owning a timeshare, a lot of them are going to be finding out the downside of not being able to sell them with the growing economic crisis.

One special note: the video mentions that when you inherit your parents stuff upon their death, if they have a timeshare it will go to you. This is true, but you don't have to accept it. You can refuse it as part of the inheritance and you are smart to do so.

ABC Timeshare Video

Five Reasons Not To Buy A Timeshare

2008-11-21T00:01:00.000-08:00

A Fox news station has a news item detailing five reasons you don't want to buy a timeshare. These include the following:

1. High pressure sales tactics
2. The high cost of a single week
3. High fees even after the timeshare is purchased
4. High interest rates when you have to finance the timeshare
5. In all likelihood, you aren't going to want to vacation in the same spot your whole life

While these are all good reason, there are certainly a lot more -- but better to get some of that information out to people instead none at all.

source

Fairfield Resorts: A Consumer Alert from a Former Employee

2008-11-19T00:01:00.000-08:00

This Associated Content writer calls the methods of Fairfield Resorts so hideous that they wanted to pass their experiences on to warn anyone who might have contact with Fairfield Resorts in the future. They go on to describe the techniques that are used to get you to attend a sales presentation, including strong arm persuasion and iron clad contracts. If you take advantage of a free trip with a free hotel and say no to the salesperson, the company has been known to kick you out of the room and leave you stranded. They also talk about phone marketing and mail marketing from Fairfield Resorts.

They end by saying, “Stay away from Fairfield Resorts and do not let the special deals entice you to make a visit. It is not worth your time and the place is as bad as it sounds.”

read more

Fractional Ownership: Just Another Name for a Timeshare

2008-11-17T00:01:00.000-08:00

Timeshare sales staff use all types of names to describe timeshares without ever using the word timeshare. Some other common names that sales people use to sell timeshares without actually using the name are vacation ownership, a holiday club, a vacation club, multi-ownership, a destination club or fractional ownership.

While the sales people will do their best to convince you that the properties that they are selling are somehow different from a timeshare, don't be fooled. The basics are all the same and you get stuck with the exact same problems that timeshares have. So when a salesperson tries to convince you that a fractional ownership is completely different from a timeshare, you know it's time to leave.

Fractional Ownership

A Timeshare Isn't An Investment

2008-11-14T00:01:00.000-08:00

Timeshares aren't investments - it's as simple as that. In fact, it’s illegal in some states for a the sales staff of a timeshare developer to claim that a timeshare property will go up in value. By industry standards, it's also considered unethical (although this won't stop over eager sales people) to state that a timeshare will go up in value and is a good investment (you will often hear timehsare sales people say that timeshares are a good "life quality investment" or something similar - don't be fooled).

You can read more about why timeshares aren't investments in Timeshare Investments

Navigator Beach Club - Ongoing Investigation

2008-11-12T00:00:00.000-08:00

By M. Beddingfield

Developer Robert Reposa started building Navigator Beach Club in Dennisport, Massachusetts, more than two years ago. He sold dozens of people a year-round timeshare. They thought they were buying into a luxury resort with all sorts of amenities. But Reposa never completed building and now the property is in foreclosure.

According to Boston Channel Team 5, there have been at least 50 complaints on this and another timeshare property owned by Reposa to the Massachusetts Attorney General’s office. The Attorney General’s office is refusing to comment because it is an ongoing investigation.

Meanwhile, those who spent their hard owned cash on this timeshare promise will have to wait for the courts to decide if and when, they will get their money back.

more information

Timeshare vs Vacation Club

2008-11-10T00:01:00.000-08:00

By M. Beddingfield

Are vacation clubs timeshares in disguise?

Ed Perkins of SmarterTravel.com has a way of peeling back the allure of a free vacation to get to the truth. In this article by USA Today, a reader asks about vacation club promos. Mr. Perkins says a vacation club is usually no more than a timeshare in a different costume. With a so called, Vacation Club, you’re buying into a program that gives you access to a condo or resort at certain times. Sounds like a description for a timeshare doesn’t it? Vacation club or timeshare – either way you could be out thousands with little to show.

more reading

Paying Upfront Fees to Sell A Timeshare

2008-11-07T21:06:00.000-08:00

If you're going to sell a timeshare, you don't want to pay any upfront fees to get is sold because doing so is taking money out of your wallet that will never come back. The main reason is there is absolutely no incentive for a company to sell your timeshare if they receive an upfront fee. If they don't sell it, they can charge you another upfront fee. Why should they spend time marketing your timeshare if they already have the money? They simply spend their time looking for more people to pay upfront fees to them.

As the IndiaPost makes clear:

Your instincts are right. Do not use that agency. Do not pay that upfront fee. Odds are great that you'll be ripped off.Some of these legit-sounding companies working time share-resale scams typically request a deposit of $100 to $700 that they say is a refundable marketing fee, appraisal fee, listing fee or some such nonsense. They even assure you that, like magic, they have buyers standing by to make a down payment on your week(s).

Then "poof," they make your money disappear.Another scam involves companies offering to pay you more than what you're asking for your week. You just have to wait until their check from a foreign bank "clears" and then refund them the difference. But their check to you will eventually bounce long after your check to them has been cashed.In fact, any companies that promise amazingly good prices and quick sales are probably con artists.

If you come across someone that demands an upfront fee to sell your timeshare, walk on by...

Confessions of a Time Share Salesperson

2007-05-08T19:08:00.000-07:00

I was hoping for something more in-depth, but unfortunately the article only scratches the surface of how a timeshare salespeople operate. Even so, it's worth of luck to see some of the things that they do:

1. A scripted pitch: all timeshare salespeople will use a scripted pitch to increase the likelihood that you will buy a timeshare. When they appeared to just be chatting naturally with you it's all part of the script.

2. The puke price: the timeshare salespeople will give you an initial price so high that it will make you want to "puke" - what this in effect does, is make discounted prices look reasonable even when they are still outrageously high.

3. Fuzzy math: the timeshare salespeople also use a variety of fuzzy math which will make the timeshare seem like a good deal when compared to hotels or other lodging, but the map often doesn't add up.

You can read the entire article here

Time Share: The Basics

2007-04-24T22:49:00.000-07:00

The thought of owning a vacation home may sound appealing, but the year-round responsibility — and expense — that come with it may not. Purchasing a timeshare or vacation plan may be an alternative. If you consider a timeshare or vacation plan, the Federal Trade Commission (FTC), the nation’s consumer protection agency, says it’s a good idea to do some homework.

The Basics

Two basic vacation ownership options are available: timeshares and vacation interval plans. You should know that the value of these options is in their use as vacation destinations, not as investments. Because so many timeshares and vacation interval plans are available, the resale value of yours is apt to be a good deal lower than what you paid. Both a timeshare and a vacation interval plan require you to pay an initial purchase price and periodic maintenance fees. The initial purchase price may be made all at once or over time; periodic maintenance fees are likely to increase every year.

Deeded Timeshare Ownership: In a timeshare, you either own your vacation unit for the rest of your life, for the number of years spelled out in your purchase contract, or until you sell it. Your interest is legally considered real property. You purchase the right to use a specific unit at a specific time every year, and you may rent, sell, exchange, or bequeath your specific timeshare unit. You and the other timeshare owners collectively own the resort.

Unless you’ve bought the timeshare outright for cash, you are responsible for paying the monthly mortgage. Regardless of how you bought the timeshare, you also are responsible for paying an annual maintenance fee; property taxes may be extra. Owners share in the use and upkeep of the units and of the common grounds of the resort property. A homeowners’ association usually handles management of the resort. Timeshare owners elect officers and control the expenses, the upkeep of the resort property, and the selection of the resort management company.

“Right to Use” Vacation Interval Option In this option, a developer owns the resort, which is made up of condominiums or units. Each condo or unit is divided into “intervals” — either by weeks or the equivalent in points. You purchase the right to use an interval at the resort for a specific number of years — typically between 10 and 50 years. The interest you own is legally considered personal property. The specific unit you use at the resort may not be the same each year. In addition to the price for the right to use an interval, you pay an annual maintenance fee that is likely to increase each year.

Within the “right to use” option several plans can affect your ability to use a unit:

Fixed or Floating Time In a fixed time option, you purchase the unit for use during a specific week of the year. In a floating time option, you use the unit within a certain season of the year, reserving the time you want in advance; confirmation typically is provided on a first-come, first-served basis.

Fractional Ownership: Rather than an annual week, you buy a large share of vacation ownership time, usually up to 26 weeks.

Biennial Ownership: You use a resort unit every other year.

Lockoff or Lockout: You occupy a portion of the unit and offer the remaining space for rental or exchange. These units typically have two to three bedrooms and baths.

Points-Based Vacation Plans: You purchase a certain number of points, and exchange them for the right to use an interval at one or more resorts. In a points-based vacation plan (sometimes called a vacation club), the number of points you need to use an interval varies according to the length of the stay, size of the unit, location of the resort, and when you want to use it.

Courtesy of the Federal Trade Commission

Offered A Timeshare? Run As Fast As You Can

2007-04-23T17:40:00.000-07:00

That is pretty good advice to remember and does a good job of summing up our feelings on the subject. This one paragraph sums up the facts pretty well:

The world is filled with remorseful timeshare buyers. As a testament, timeshares can be bought on the Internet for pennies on the dollar. There are more people trying to unload timeshares than there are trying to buy the units. The imbalance gives you an idea of the real value of timeshares.

You can read the entire article here

Time Share Downside Over Time

2007-04-01T20:18:00.000-07:00

Things change, especially over years. That is one of the biggest drawbacks of a time share. While you think you may visit the same place every year, the reality is that time will likely change that as this person found out:

About 16 years ago, I purchased a one-week time-share in Kissimmee, Fla., near Disney World. About three weeks after I bought it, I heard you on the radio and called in to your program to ask your thoughts on a time-share purchase. You said, "You don't listen to my program much, do you? A time-share is a bad deal -- get out of it." Well, it was too late then, but the first 10 years were mostly OK. However, now the maintenance fees are a whopping $824 per year. Ouch! I have been contacted by at least eight time-share resellers, and they all want an up-front fee to attempt to sell it, claiming they have an excited buyer. Well, that isn't going to happen. I will never pay an up-front fee. So while I was at the time-share in January 2007, I spoke with the front desk to arrange a meeting with the manager to discuss the resort repurchasing it; he wouldn't even speak to me, let alone make an appointment. Further, he had the receptionist tell me they would offer $1,500, take it or leave it. I told them they were out of their minds. My son is now 16, and I doubt we will return to this Disney area again.

Read the rest of the article

Another Time Share Scam

2007-03-23T19:58:00.000-07:00

When making an investment, you need to always be sure you know exactly what that investment is. It's also important to never forget that time shares should no be considered investments:

Missouri Secretary of State Robin Carnahan’s office issued cease and desist orders against four Missouri men, including a former Raymore insurance agent, two Mexican firms, a Panamanian business and a Nevada promoter for allegedly bilking more than three-dozen state residents.

The Missouri investors, ranging in age from 64 to 86, each pumped at least $5,000 into what sounded like a great deal promising a 9 percent to 11 percent return for 25 years.

Only after investing a combined $1.8 million did the investors learn they were buying into timeshares in Cancun, Mexico. The only way they could make money was to rent out their timeshare units... Entire Article

Escaping The Time Share Trap

2007-03-21T20:42:00.000-07:00

An email received from one person who was able to escape the time share trap by donating it to charity. It gives a look into the process and what you might expect if you decide on this route:

It's been almost a year to the date since our last email exchange, but after many months, my wife and I are finally FREE of our timeshare!!!

My wife and I looked into the Quit Claim Deed process and after further investigation, we decided we knew much too little about real estate law so, we agreed donating our timeshare was the best process for us to relieve ourselves of it! At the suggestion of your website I contacted Gifts For Sight. I received an email back and eventually everything they said in their emails and on their website
(www.giftsforsight.org/timeshare) happened just as they said it would. (FYI, Gifts for Sight also has another website www.itsdonated.com).

In May 2006, I submitted all the paperwork as they requested on the website and received prompt acknowledgment of my submittal. A month later, about mid June, I received notice that they had "begun the selling process" of my timeshare. The second of July, I received another email saying my timeshare had been sold and my information would be sent to their closing company, JRA Services in Sunrise Florida. They gave me contact information for that company. About a week later JRA Services sent me additional forms to complete and they also requested a copy of my recorded deed which I faxed to them. About a month later (second week of August), they sent me new deed to be sign and notarized. My wife and I filled that out and returned it.

Then came the waiting...

I contacted either the Gifts For Sight and JRA Services once a month until December when I thought it was going to fall through. The problem was with the buyers failing to return the paperwork. Gifts for Sight had to get involved again to "light a fire" under the buyers in late December and then on Jan. 5, I received an email from JRA Services; they had received the paperwork from the buyers and were waiting on their funds to be received before recording the new deed!! Then on January 24, we received the good news we had waited on for so long!! Emails arrived from both Gifts for Sight AND JRA Services informing us the sale transaction was complete with attached
documentation we would need for our tax records.

I contacted Fairfield who indicated it may take four to six weeks to complete the transaction on their end, transferring the deed information in their files. Before I told you my story, I wanted to make sure there were no more automatic withdrawals for monthly maintenance fees, the last of which was in January. None have happened since then.

OBSERVATIONS:

What exactly does someone else need to do? EXACTLY what they ask. It's really pretty painless (except for the waiting!). From my end, the process was extremely simple!! Fill out the initial paperwork as requested on their website, sign and return any additional documents as needed from the closing company. Pray it will sell quickly, but be prepared with patience; legal wheels turn slowly.

I was a little concerned when the tax receipt finally came (since it was in January) if it would be for '06 or '07 tax year, but that was clearly laid out in the text....2006. The official "taxing" name of the organization is "Eye Birth Defects Research Foundation"

Fairfield sent out a notice around Jan. 14 advising of a one-time capital improvement fee (or something like that) of $184 and some change. So close to the end of this transaction, I really hated to risk messing things up by trying to get out of that fee. Especially since the "final word" had not yet come on the sale/new deed. So, we paid it. If Fairfield finds the fee should have been paid by the new
owners, then Fairfield can worry about that, but I seriously doubt that will happen.

Aside from the buyers delaying their paperwork, the only snag in the process came in December came when the closing company asked Gifts for Sight to contact the buyers to see what the hold up was, Gifts for Sight sent the email to ME requesting I turn in the paperwork. After a return email explaining it wasn't I holding up the process,
everything else went smoothly from there.

Somewhere in the process, either by email or phone (oh yes, I spoke to both representatives at Gifts For Sight and JRA Services...very nice people, by the way) I remember someone saying something about the timeshare being sold on an Ebay Auction. I remember thinking, "After all this...so THAT'S the way they sell it. Huh, I could have done that!" Well, maybe; maybe not. We'll never know for sure now,
will we?

TimeShare Sales Play On Emotions

2007-03-18T20:13:00.000-07:00

The timeshare sales people are experts in using your emotions to make you think you're getting a great deal that you are stupid to pass up when in fact the reality is the exact opposite:

Carlos, our sales associate, could not have been more professional; he was very low-key and answered all our questions. He even shared a secret. If we bought two less expensive silver weeks, we could switch off exchange and point accumulation years and would have the ability to reserve a week 13 months in advance versus 12 months if we only owned one red week.

Sounded smart to us: a $21,800 investment versus $67,400 allowing the same exchange opportunity with an earlier reservation date. We were actually interested!
entire article

Taking Time Share Freebies

2007-03-15T20:26:00.000-07:00

Here's a question: Is it unethical to go to time share presentations to get the freebies or discounted lodgings if you have no intent on purchasing a time share?

This is a question that was asked when one reported explained how to get discounted accommodations to Disney World. The newspaper's answer: "It really is no different than a grocery store offering free samples. If they don't want people to grab one, they shouldn't offer." Entire Article

Is A Time Share Loss Tax Deductible?

2007-03-06T01:22:00.000-08:00

Nope...unfortunately since that would take some of the sting out of the loss. Of course, in the unlikely event you did have a gain, it would be taxable. More information here

Should You Keep a Timeshare?

2007-03-02T19:06:00.000-08:00

Kiplinger financial magazine has a short blurb asking should you keep a timeshare. Unfortunately, it's simply a blurb and not a detailed article which would have been nice to see, but does show the pitfalls of time share ownership:

Two decades may be hyperbole, but the Reillys definitely stumbled upon one of the rubs with timeshares. They discovered the other two when they looked into selling: You may not get back what you paid, and the loss isn't deductible. "If you make money, you pay Uncle Sam, and if you lose, tough luck," says Terry... entire article

Risk When Timeshare Resorts Don't Update Their Facility

2007-02-25T16:43:00.000-08:00

One of the risks in purchasing a timeshare is that the owners may not update the facility to keep it competitive.

The Web site for Legends Resort & Country Club in Vernon shows pictures of people skiing, golfing, horseback riding and enjoying a water park.

The resort, which in the 1970s was a hopping hotel as a Playboy Club, describes the "tranquil peace and serenity" of its facilities, which are said to include restaurants, gift shops, a beauty salon, tennis, an outdoor pool and a health spa. But just like many Playboy centerfolds, the reality is something different.

The dark, hulking eight-story hotel in the heart of Vernon Valley is in desperate need of a face lift. Parts of the facade are falling off, and plywood partially covers at least one window. The cracked and deteriorating outdoor tennis courts look as if they were last used in the Bjorn Borg era, and the Olympic outdoor swimming pool has been closed in recent years... Entire Article

Ten Things You Should Know Before Buying A Time Share

2007-02-24T14:52:00.000-08:00

A list of ten things that the time share sales representative won't tell you, but you should really know before you purchase a timeshare from TheStreet.com:

1. Time Shares Are a Lousy Investment
2. You Can Get the Same Time Share for Half the Price
3. You Lose 50% or More When You Sell
4. It’s Cheaper to Rent a Time Share
5. Time Shares Come With Multiple Hidden Risks
6. Miss One Year and You’re Better Off Without a Time Share
7. Trading Isn’t Near as Easy as Claimed
8. If You Can’t Pay in Full, It’s a Terrible Deal
9. Travel Is Not Calculated When Comparisons Are Made
10. Hotel Prices Are Increasing (But So Are Time Share Fees)

If you take these into consideration before purchasing a time share, you are much less likely to fall into a time share trap (because you probably won't get one) and most importantly, you'll be approaching the possible purchase from a financial perspective rather than an emotional one (which the time share sales representatives want you to do).

Timeshare & Free Prizes - Vacation Resort Management

2006-11-15T01:18:00.000-08:00

One way that Timeshare companies try to lure new prospects into hearing about timeshares for sale is by offering them free prizes. These deals are often shady and a company called Vacation Resort Management has sent out messages that people are "guaranteed" one of five prizes (including a car, vacations and a television). When they go to the office to claim their prizes, however, they are required to sit through a timeshare sales presentation and don't receive any of the prizes.

(Source: Green Bay Press Gazette

Loreto Mexica and Timeshares

2006-11-11T17:22:00.000-08:00

Nothing is worse than being hounded by timeshare salespeople when you're trying to vaction. That is why we'd like to send out a big "thank you" to Loreto, Mexico for having the common sense and courtesy to "ban beach-side trinket peddlers and time-share hustlers from the airport." For more information about this vacation destination, you can read about it in the LA Times

New Place To Donate Timeshares

2006-11-11T17:14:00.000-08:00

We have added a new place to possibly donate your timeshare - Southern New Hampshire University is accepting timeshare donations to help benefit students at SNHU, but will only accept those that can be sold for a profit.... it's being done through a timeshare reseller site which I haven't checked out, so proceed with caution.

You can see the entire list of places that take timeshare donations

Plaza Resorts Settles Timeshare Fraud

2006-10-07T07:54:00.000-07:00

This article goes to show how difficult it can be to get back money when timeshare fraud takes place. It took thousands of complaints for "Plaza Resorts (to agree)to refund $200,000 to unhappy customers and change several business practices." The worst part? This is the second time in 6 years the company has been forced to do so.

Penny Pincher Award Goes To Timeshare Presentation Man

2006-10-07T07:42:00.001-07:00

While we don't recommend this as a way to save money on your travels, apparently it can be done. The winner for the 2006 Penny Pincher award for the Washington Post columnist Michelle Singletary went to a man that saves money on their trips by going to Timeshare presentations:

...Finally, first place goes to Tom Hagaman of Denver. He was nominated by his wife of two years, Emily, who says that her husband deserves top honor for insisting they cut costs on vacation trips around Colorado by going to time-share presentations.

"His money-saving idea has turned into my own private hell," Hagaman said. "We've had plenty of discounted dinners. We've gotten enough hot-springs passes, gas coupons, ski discounts and buy-one-get-one-free dinners to tide you over for a lifetime."

Hagaman said she's had enough.

"Now, I'm in love with my husband," she wrote, "I wouldn't have married him if this penny-pinching idea was so awful, but I'm on the edge. I want a real, luxury, non-camping (which we do often, like most Coloradoans), no shared hotel room with my 8-year-old stepson, exotic, tropical or foreign, non-couponed dinner, room-service offered, vacation. Please send help as soon as you can. I'll be here, hoping the next time-share offer gets lost in the mail."

Many penny pinchers extol the value of signing up for time-share presentations just for free accommodations or prizes or both. But some good things can be taken too far... Entire Article

Timeshare Nightmare

2006-10-07T05:31:00.000-07:00

While this Timeshare Nightmare took place in the United Kingdom, it goes to show what happens when you try and get your money back when things with the timeshare go wrong. I'm sure many others have their own timeshare nightmare stories both with financing and in other areas...

Timeshare Presentation In New Zealand

2006-10-07T05:27:00.000-07:00

Here's a news article from New Zealand reporting what it was like to attend a timeshare sales presentation. They compared to to being at "a used car lot" with high pressure sales tactics. We think that is a fairly accurate description and the type of treatment you are likely to receive if you attend one in the US as well.

Timeshare Laws - South Carolina

2006-09-16T16:47:00.000-07:00

Our Comments The South Carolina Association of realtors is looking at ways to improve the state's timeshare laws after continued complaints and lawsuits from timeshare buyers of their timeshare resort units. What we'd really like to see is a tough national law (instead of the state by state laws which can vary widely) that established a two week cancellation "cooling off" period for all timeshare buyers and a mandated number of state investigative staff (funded by timeshare taxes)to ensure that timeshare resort sales pitches are within the law and not misleading. From a recent article Charleston Post and Courier:

Ken Kitts, time-share coordinator at the state Real Estate Commission, is now the only state employee keeping an eye on the industry, which in South Carolina comprises 14 developers and 130 resorts.

Two-thirds of the state's time-share investigative staff has been laid off or reassigned since the late 1990s, meaning the commission no longer has enough workers on payroll to anonymously screen sales pitches...

James Teodosio, a 77-year-old Charleston resident, was one of the aggrieved buyers who called the newspaper and the state Real Estate Commission this week in response to the stories. Teodosio spent almost $15,000 on a Myrtle Beach time-share resort in 2002. He said he has never been able to make a reservation, and that each time he called he was told he was a little too late.

Although the developer is selling those same units for almost $22,000 today, Teodosio has had no luck in reselling his. "I'm an engineer," he said. "I should have some brains in my head. But I swear ... I don't know what to do with that thing... Entire Article

Timeshare Forum

2006-09-15T03:24:00.000-07:00

I've been getting an increasing number of emails asking for help and information on their timeshare units and getting rid of them, many of which have been similar. I have therefore set up a Timeshare Forum where you can post these questions and I can (and others) answer questions and provide information that should help many more people (I assume if a few people are asking, there are a lot more who are wondering).

Since it is brand new, there isn't much at this point, but I will be adding to it hopefully on a daily basis and will answer any questions within 24 hours that are posted there. There currently isn't much of a support group for those that have had bad experiences with timeshare units and there should be.

I also hope that those that have had experience in the past will share your experiences (both bad and good) in selling your timeshares to help others out.

10 Reasons Not To Buy A Time Share

2006-09-09T21:05:00.000-07:00

Our Comments: We find this quite interesting about how the timeshare industry takes car of its own. We found an article entitled Ten Reasons Why You Should Not Buy a Timeshare which makes excellent sense and there is no reason that it should have a low rating. Even for those that are interested in purchasing a timeshare, the points are ones of which they should be fully aware. Yet the rating is 2.5 stars (and that is after I gave it a 5 star rating - it was 2.1 at that point I first read it). The only reason I can think of it being that low was that the time share industry people don't want the truth told. It goes to show that timeshare people actively try to undermine any reporting in the news or on the Internet that doesn't positively portray the time share resort business. Here are the ten points the article makes:

Timeshares are not very good for spontaneous traveling, especially in high season.

There aren’t as many resorts available as they made you think.

Hidden Fees.

Resell Values are horrible.

They are too expensive.

They will send you to collections too quickly.

The interest rates are up to the roof.

They won’t let you cancel your reservation after 24 hours.

Many of these places are still “under construction”.

Even if you have “points” they aren’t enough most of the time.

I enjoyed the article because it highlighted a few points that I haven't gone into detail here, but are valid points that the time share resort sales people are unlikely to mention. You can read the entire article here.

Timeshare Dump

2006-09-04T02:09:00.000-07:00

New Article: We have a new article up on a possible option for getting rid of your unwanted timeshare. While the likelihood is slim, it's worth a try if you have defaulting on your payments as your only other option.

Timeshare Dump was started by a lawyer who came into contact with a timeshare owner trying to get rid of his timeshare. If your timeshare is in a location they are looking for, they may take it off your hands. Although they won't pay any money for it, they will take over all the fees. He asks for basic information, so it's probably worthwhile seeing if you are lucky.

What You Need To Know About Timeshares

2006-08-28T22:55:00.000-07:00

Kiplinger's Personal Finance came out with a short list entitled What You Need To Know About Time Shares. The list is basic with good advice although we'd have strengthened a couple of them. Here is what they had to say:

Time shares are still a lousy investment

Selling agents may be of little help

Financing is a last resort (we'd stiffen this up and say no resort)

Trading spaces can be a headache

A slice of a condo can be better than no condo at all (we'd opt for the renting a timeshare unit rather than purchasing as a smarter move)

Timeshare Cooling Off Period

2006-08-25T08:57:00.000-07:00

Our Comments: It seems that part of the law in the United Kingdom gives timeshare owners a 14 day cooling off period where they can cancel any timeshare unit that they have purchased. This is a wonderful idea that we would love to see implemented in the US on a nationwide basis. Some states have a cooling off period for timeshares, but you must check your specific state to see what the time period may be.

The sale of timeshares in the UK is regulated by the Timeshare Act 1992 (amended in 2001) and enforced by local trading standards officers.

Buyers must be given a 14-day "cooling-off" period' it is illegal for selers to take a deposit during this time.

Reputable agents, even within the UK, can be hard to find. And anyone contemplating buying a time-share abroad should tread with utmost caution... entire article

Timehare Trap Information In Europe

2006-08-17T00:38:00.000-07:00

A letter we received from a reader located in Europe:

"Can anybody help us, long story but we stupidly signed up for a timeshare in tenerife with RCI, we told them that we could not really afford it and they kept us there for 7 hours until we signed they took a deposit of 1000.00. When we got back of holiday I wrote to them and said that we could not afford this but they said the ten days had passed and they are going to take us to court for the rest of the money. anyway we can get out of this. These are resales (whatever they are)"

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Our Comments: For those that have had trouble with timeshare resorts in the United Kingdom and Europe, there is little help that we can provide. A website called Timeshare.org.uk may be able to provide you some help.

Stopping Payment On A Timeshare Resort

2006-08-05T00:26:00.000-07:00

We received the following email:

I visited your web site and was wondering what your advice would be to just get rid of a timeshare we have in Mazatlan, Marina del Rey Beach Club. We aren't interested in selling it or getting a tax deduction. Just want to stop making payments. We were recently told that if we stop making payments, the timeshare company can put a lien on our home and destroy our credit. I don't understand how or if this can work since the contract was signed in Mexico and is subject to Mexican Law. Please advise.

Our Comments: Even if you purchase a timeshare resort in a foreign country, stopping payment can still effect your credit in the US. Most timeshare companies in foreign countries will have offices in the US and if you simply stop payment, they can hire a collection agency or place a lien on your property to try and collect on the payments. It is not recommended that you stop payment as a way to get rid of your timeshare as it will likely come back to haunt you.

Escape From Timeshare Hell

2006-08-04T23:31:00.000-07:00

August 4, 2006

Our Comments: It's not often that you see the media run articles on those that find themselves in the timeshare trap, so it's always nice when we come across one. Smart Money has put together a piece called "Escape From Timeshare Hell" that addresses some of the points are made at the timeshare trap website. While there is nothing new in the strategies, it does give it a face by telling some of the people's stories. It was also nice to see they have broken the myth that it is just a few people that find themselves in the timeshare trap. From the article:

...While there are no official statistics on the number of timeshare owners looking to unload their investment, the sheer size of the marketplace suggests there are thousands — if not hundreds of thousands — of unhappy timeshare owners looking to get out.

Timeshare Regulation In Cayman Islands

2006-07-21T17:29:00.000-07:00

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

2006-07-17T23:22:00.000-07:00

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

2006-07-14T22:02:00.000-07:00

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

2006-07-14T17:36:00.000-07:00

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

2006-07-04T10:39:00.000-07:00

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."

Timeshare Vacation Resort Mortgage Defaults

2006-06-18T22:17:00.000-07:00

Our Comments: It's important remember that the promises that the sales representatives make are not to be believed unless you can get them in writing. It's also important that you know the true cost of the timeshare - as this article shows, a lot of people defaulting on the timeshare vacation resort mortgages indicates the timeshare vacation resort is selling to people who can't really afford it. They will always use numbers that make a timeshare appear to be cheap, but when all those little expenses are added up (and especially if you have to borrow money) a timeshare isn't going to be a good deal. Yet another reason to avoid timeshares...

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Most of the people who defaulted on their Sunterra loan payments owed between $6,000 and $12,000, according to court documents. Interest rates on the loans were commonly 14.9 percent....

"Our difficulties with the Sunterra purchase started almost immediately," Wendy Fendall wrote in a 2000 letter to the company. The couple told company representatives they wanted to use the timeshare for a particular week in 1999, and sales staff told them they could, but after the sale, they learned they couldn't.

"Three weeks later there was no record of our timeshare purchase in any systems associated with the 800 numbers given to us in our timeshare owner documents," Wendy Fendall wrote, "and our temporary membership card was useless."

The couple had hoped to go to Sedona, Ariz., or South Beach, Fla., but ended up having to come to Santa Fe, an hour up the road. "This experience left us anxious, upset and fearful that we had not only been bamboozled, but deceived and taken advantage of as well," Wendy Fendall wrote...Entire Article

Get All Promises In Writing

2006-06-11T05:47:00.000-07:00

Our Comment: Yet another example that you must insist that any promise that a vacation resort timeshare company makes needs to be written into your contract. Imagine being in thi situation - you purchased your timeshare with a beautiful view with the promise that the view would never be obstructed to find the timeshare planning to onstruct your view after all the units have been sold. Pretty sleezy in my book and my guess is that the unobstructed views they were promised will go to others...

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Several Pelican Resort timeshare owners have posted an on-line petition collecting signatures for a campaign intended to block the construction of a new high-rise marina at Pelican Resort...

It reads: “We, the undersigned, hereby petition the Board of Directors of the Tenants Association Pelican Resort Club to cease and desist the building of the new Marina Complex at Pelican Resort Club at Billy Folly Road, Simpson Bay, Sint Maarten, Netherlands Antilles, as it is currently planned.

“The design of this complex directly contradicts specific promises made to buyers of the C and D Buildings at Pelican, who were told that their views would never be compromised.

“On that basis thousands of timeshare owners bought in good faith, only to see their investments devalued in their view by the construction of a high-rise directly in front of their units... Entire Article

Couple Warns About Timeshares (UK)

2006-06-04T19:11:00.000-07:00

Our Comments: Let's give a loud round of applause to these two! If only everyone had someone as dedicated to give the warning when a timeshare salesperson went into their selling mode, there would likely be a lot less people currently stuck with the vacation rental timeshare that they don't want.

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Two timeshare victims who lost thousands of pounds are tailing the firm' s salesmen in a 'scambulance' to raise the alarm.

Campaigner Allan Thompson bought the old ambulance on eBay and tours the country to warn potential customers off timeshare firm Sunterra.

Allan, 57, an oil rig worker, and wife Christine spent thousands on 'points' which they found were not enough to get the holidays they wanted...

The Thompsons research their sales tours and park the Scambulance outside. They were at the Ramada Jarvis hotel in Glasgow city centre eight days ago. Allan said: "I suppose it's turned into a bit of a hobby.

"We bought an ambulance for £2300 and renamed it the scambulance. We travel wherever Sunterra hold their sales pitches."

Christine, 50, said: "We do this because we're absolutely bloodyminded. It's a national scandal... Entire Article

European Commission launched Timeshare Directive

2006-06-01T21:14:00.000-07:00

Our Comments: It's good to see the European Union is taking the initiative and looking for ways to close the loopholes that some timeshare companies are using to get around the current legislation. If you happen to be in Europe and have had timeshare problems, be sure to contact them and let your voice be heard.

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The European Commission is today launching a wide public consultation on the Timeshare Directive (94/47/EC). Timeshare contracts entitle consumers to spend a period of time (at least one week) in a holiday property for at least three years. The Timeshare Directive sets minimum standards for consumer protection throughout the EU, such as ensuring that consumers receive adequate information on the property. The legislation also seeks to prevent “pressure selling” by allowing for a cooling-off period where withdrawal is possible and money deposits are not allowed. However, some operators have introduced new timeshare-like products which take advantage of regulatory loopholes, leading to a number of complaints by consumers.

“Consumers should have every confidence that they will not be taken for a ride if they opt for a timeshare formula or similar products” said Health and Consumer Protection Commissioner, Markos Kyprianou. “I want to make sure that unscrupulous traders do not take advantage of potential clients – many of whom sign up to these products after falling in love with a holiday resort... Full Press Release

Timeshare Fraud Costs Many Life Savings In UK

2006-05-29T19:31:00.000-07:00

Our Comments: Even though this took place in Europe, it illustrates how you can be taken more than once when dealing with timeshare units. Never buy a timeshare from someone that cold calls and thoroughly research any vacation resort that you are considering purchasing a timeshare unit with. Do your research as thoroughly as if you were purchasing a new house, or even more...

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“It is too early to say how many Britons are affected, but it is likely to run into the thousands. Many people affected by this scam will have lost their life savings.” Unofficial police estimates put the total number of victims at about 15,000...

Police said that potential customers would be asked to buy into fictitious timeshare properties or would be sold package holidays that did not exist. The gang is also alleged to have employed sales staff to call time-share owners and offer to sell their annual holiday allowance for them, then asked them for administration fees and taxes for work that would never be completed...

A spokesman for the Spanish National Police, who made the arrests, said: “They would get sales staff to cold-call time-share owners in places like the UK and offer to buy their annual holiday allowance, then dupe them into transferring money to Spain to cover things like solicitors’ costs and administrative fees after securing an initial agreement.

“Several months would often go by before people realised they had been the victims of a fraud and there had been no resale.”

He continued: “The fraudsters even used false documents to offer to undertake legal action against other fraudulent companies they also ran, defrauding many victims twice in the process... Entire Article

RCI and Trading Timeshare Weeks

2006-05-25T22:34:00.000-07:00

Our Comments: It seems that a few people have found our post on RCI and the difficulty that exists in trading weeks which has resulted in a class action lawsuit against RCI. Trading timeshare weeks is much more difficult to do than any of the timeshare resorts will lead you to believe. If you want to travel to different destinations each year, a timeshare becomes even a worse (if it ever could be) choice for your vacation plans.

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1. I attempted to make a trade with a search request for 2 years in advance of the vacation. After many discussions with RCI they told me the week I was attempting to trade did not have sufficient trading power. The week being used for the trade was a 2 Bedroom unit at a Gold Crown Resort. I also had banked 4 weeks from other resorts.

2. We owners need the Class Action Suit to progress. We also need for the Federal and State Governments to look at the RCI rip-off.

Timeshare Relief Warning / Scam

2006-05-20T01:02:00.000-07:00

Comment from a reader

Our Comments: Obviously, Timeshare relief is an oxymoron with this company -- Never, ever, pay someone upfront to sell your timeshare. And again, never take the word of the people selling you the program. You need to get everything in writing. The number of people who have problems with promises not being kept just goes to show they type of industry timeshares are...

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My dad and mom got roped into this same scam with Timeshare Relief, Inc. They were high pressured into signing some paperwork and forking over ~$3K to "get rid of" their timeshare. At the time they were about to make a trip which included a stop to visit me and indicated that they might want to sell the timeshare themselves or give it to me. The Timeshare Relief people told them that it was not a problem, that they would hold the paperwork until after the trip and that if they changed their mind, they could get all of their money back. Timeshare Relief, Inc is near my house in Torrance CA. My father called Timeshare Relief while on their trip and said he had chosen to cancel the agreement and would stop by at the end of their trip. I went over their with my parents and we requested the money back. That's when the story changed. They said my parents had signed a contract and they were keeping the money. We could however, choose to keep the timeshare. They had indeed signed a contract and it included legalese to the effect that they only had three days to back out of the deal. Talk about being doubly violated. Definitely a new scam.

Can You Trust The Timeshare Salesman II

2006-05-20T00:44:00.000-07:00

A comment from a reader:

Our Comments: This comment goes to show that you can't trust anything that is said to you by the person selling a timeshare unit - if they say it, have them place it it writing at that moment. If they balk in any way, you know it's time to leave Unfortunately, unless it was written within the contact you signed, you're probably out of luck...and they will promise more than they can deliver to get you to sign.

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We bought a timeshare last year, in Branson. They lied. They said all time in Branson would go to red this year. Of course, it didn't. They sold us yellow time. That is just one of the lies they told. Is there anything we can do or are we just stuck? It is actually the second timeshare we bought. We are pretty happy with the first one but maintenance fees have really went up. There should be some laws.

Timeshare Hidden Risks

2006-05-11T18:05:00.000-07:00

Our Comments: While vacation resorts like to try to convince you all the ways that you can save with timeshares (something that we feel is false), they never mention the added risks that you take on when you purchase a timeshare unit. When something goes wrong, you can be out thousands of dollars. Rarely are the added risks with owning a timeshare worth any possible savings (if there are any in reality). Always do your homework thoroughly so you don't end up in the same situation as the person below:

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I paid $5,500 to Worldwide Dream Vacations of Branson as part of a timeshare contract. I was to get discounts on hotels, vacations, cruises, resorts and a $5,500 rebate. The $5,500 rebate would be returned by Rebates International.

I received notification that I was overdrawn on my credit card because Rebates International had submitted a claim for $11,000. Eventually I was credited for the $5,500 overcharge. I didn’t get a reply after mailing the materials for the rebate and a second mailing was returned undeliverable... Entire Article

Getting Rid Of Your Timeshare Shouldn't Cost Thousands

2006-04-07T19:36:00.000-07:00

Our Comments: It appears we have a new Timeshare scam developing and timeshare owners are so desperate to get out of their timeshares that they are paying people thousands of dollars to get rid of them. In the vast majority of cases it makes no sense to pay someone to get rid of your timeshare. Don't waste more of your hard earned money - give it to charity or try one of the other methods.

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I just left a meeting where I was to get an "offer" on my time share from Timeshare Relief, INC. The long and short of it was they "offerred" to let me get my timeshare off my hands by giving them $3,495!

Even more astounding, in a room of approx. 25, I was the only to walk out! Have you ever heard of this company?

Get All Timeshare Promises In Writing

2006-04-07T19:24:00.000-07:00

Our Comments: Letter from a reader - never take a timeshare seller at their word. Make sure that all their promises are written down and part of any contract you sign. If not, you may end up paying much more than you thought.

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In January I was at my time share in Kissimmee Fla. It is called Spas at resort world. While at my time share for the week I was asked to attend a meeting on the RCI Points system for exchanging your week with points. I was told if I joined now they would pay my yearly maintenance fee for that year. I joined then and gave my charge card to them to bill my card for $999.00. Then 18 monthly payments of 243.68 for a total of $4386.24.Every week I get mail from my resort asking for my maintenance fee. I call them and tell them that RCI was going to pay it. To this date they have not paid it. I call the place at the resort who sold me the RCI program and they said don't worry about the payment that it will be paid. I told them I keep getting these letters asking for the fee or they will pursue further collection action.

New Twist On Paying To Get Rid Of Timeshare

2006-04-07T19:22:00.000-07:00

Our Comments: Comments from a reader - a new twist on having to pay to get rid of your timeshare - don't waste your money.

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Here's another angle in the timeshare repurchase business--a company called Timeshare Collectors, Inc. My husband and I got an unsolicited mailer (postcard) offering to buy our timeshare; this morning, we went to a meeting at a local Raddison hotel & they gave their pitch--the deal is, the timeshare owner pays Timeshare Collectors, Inc. the equivalent of 7 times the maintenance fee (or $3495, whichever is less), to cover closing costs, deed transfer, etc. They, in turn, sell in bulk to Hotels.com and other travel clubs. What do you get? You get out of your timeshare, and you get to deduct the loss as a capital loss on Schedule D on income tax.

We didn't "sell" to them; we already got ripped off buying the timeshare in the first place, so I'm not willing to shell out more money to get rid of the damned thing!

Can We Trust The Timeshare Salesmen? No...

2006-04-01T22:26:00.000-08:00

Our Comments: Good Advice - We can't repeat it enough. Never, ever, pay an upfront fee to have your timeshare sold and don't deal with timeshare companies that cold-call / SPAM you. They'll promise you the world and take your money...

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"We have owned a timeshare at the Tenerife Royal Gardens in Tenerife for 10 years. We would like to sell our two February weeks in a studio, and have been pestered by phone calls from people in Spain and the Canary Islands offering to sell our timeshare.

They tell us that we can get at least £3,000 for each of our weeks, but they all demand payment in advance and we have been warned not to pay these. However, a new company called the European Timeshare Owners Organisation (ETOO), based in Gibraltar, is being particularly persistent and persuasive. Its impressive website says that it is certified by the International Timeshare Resale Association (ITRA).

ETOO is asking for an advance payment of £670 by credit card and says it should be able to sell our two weeks for about £7,000. The Timeshare Consumers Association (www.timeshare.org.uk) advises against dealing with overseas resales offices. What is your view?"

Gill replies:

"Never, ever pay up-front fees to resales agents - especially when you have been cold-called. I asked ETOO to justify these fees. The company says it advertises timeshare properties for sale on its website, in "international" newspapers, on Sky television and by organising visits for potential buyers..." Entire Article

Timeshare Lies - Letter From A Reader

2006-03-30T20:32:00.000-08:00

Our CommentsA sad story, but one we hear all too often. Never let a timeshare salesperson convince you that selling your timeshare will be easy. It won't and as we have said time and again, it will usually be for a substantial loss. Take this situation to heart so you don't find yourself in a similar situation.

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I am only starting to look into this, I hope I can get some direction. I purchased a timeshare at Los Abrigados, in Sedona, Arizona about 3 years ago, on an every other year deal. Had no problem with payments, or timeshare. One issue I brought up was that they state that income level must be $50,000. When I stated that at the time I was making approx. $35000, rep. said it didn't matter (using selling techniques much like a car dealer), also that I was not married and couldn't be suitable, per their rules-again it didn't matter. About a year later, I was offered an upgrade, to every year, at only a slightly increased price. My father was ill at the time (has since passed away) and I thought that it would be nice to use while he could. I expressed this to them that although I could make payments, how hard would it be to sell should his health deteriorate? Stupid me, I was assured that reselling it back to them would be no problem as money would be needed to help my ailing father. About 3 months later, I tried to deal with them, and as you can imagine, I got nowhere, and with other things going on this was put on backburner. Although I am aware that I made a commitment there must be some way to deal with them amicably. Due to financial burden with my father, have not paid them since Oct. 2004, as I could not afford it, I would be broke!! I do feel there was an element of misleading, and am willing to share some of the burden... - Dan

Timeshare Presentation Pitches Coming To Those Booking Travel Online

2006-03-29T21:26:00.000-08:00

Our Comments: It looks like you'll start getting Timeshare pitches when you book your travel arrangements rather than once you arrive. If you go for the discount, know what you're getting yourself into before committing to a timeshare presentation.

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MiniVac gives online travelers the tools to book their own vacation rentals, then provides the option of getting a discounted rental if they agree to listen to a formal timeshare presentation...

Online travelers take a survey that evaluates their potential as a timeshare owner. If they don't qualify, they can still book their vacation at the regular price.

MiniVac will provide companies with vacationers who come pre-qualified as potential timeshare owners, said Tuzy Snyder-Wall, general manager of RMC Resort Management, which has used LeisureLink...

LeisureLink brings qualified leads into resorts who have a higher probability to convert to timeshare ownership...Entire Article

Timeshare High Pressure Sales Tactics

2006-03-24T16:17:00.000-08:00

Our Comments: It's amazing the length that Timeshare companies will go to in order to pressure you to purchase (including psychological pressure). If you go to a timeshare presentation for the freebies, you need to understand that you are going to get a hard, hard sell. You also need to realize that all those freebies for everyone who attends whether they purchase or not, end up being paid for by those who purchase timeshares. While we don't recommend buying a timeshare for anyone, not having to pay for all these freebies is another reason to choose the resell market if you do decide to get one.

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If we pretended to be married, and agreed to go to a timeshare presentation at the new Westin resort in Cabo, he’d get a commission, and we’d get about $300 worth of free stuff — including those elusive shuttle tickets...

Martin showed us all the resort's amenities, and explained how, for the low price of $15,000, we’d get a week of vacation each year for 40 years...

Martin was very friendly until we explained that we weren’t ready to take on such a long-term financial commitment.

“Fifty-two percent of American marriages end in divorce,” he said. “Of those who divorced, 87 percent said it was because they didn’t take enough vacations. Are you really willing to risk your marriage by not taking this deal?”

“I think we’ll be OK with weekend getaways for now,” my boyfriend said.

The negotiation room where we sat was filled with couples and their pushy timeshare salespeople. Every few minutes, a champagne cork would pop, and the room would burst into applause.

One out of three people who attend the presentation, regardless of their initial intentions, buys a timeshare, Martin explained. Hence the festive bubbly.

After he realized we wouldn’t be among that third of attendees, Martin said it was time to celebrate our visit anyway with a champagne toast. The cork popped, and everyone clapped for us. I bet the other couples wrongly assumed we’d made a purchase, just like we’d drawn similar conclusions about them.

They really have peer pressure and persuasion down to an art...Entire Article

When Is A Timeshare Worth $1.4 Million? - Never

2006-03-22T00:24:00.000-08:00

Our Comments: First, let's give credit where credit is due - the press release plainly states that timeshares are a lousy investment in the first line. What we don't like about it is that it then tries to associate $1.4 million in golf tournament wins as a direct result of owning a timeshare (read: it's a lousy investment, but maybe it will make your kid a great golfer so it is a good investment). We see several problems with this:

1. The parents didn't get the $1.4 - their son did. They are stuck with a timeshare that probably has lost them a lot of money.

2. Being a pro golfer has nothing to do with owning a timeshare

3. If you believe it does, the odds of becoming a pro golfer because of owning a timeshare are worse that winning the lottery and a lottery ticket only costs $1 while a timeshare costs tens of thousands of dollars.

Luke Donald won because he practiced hard, not because of a timeshare. This "good feeling" association is standard timeshare practice because timeshares are hard to sell on their own merits - why else would timeshares have to make such a illogical leap to attract your interest?

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"Timeshares may be a great way to vacation, but they rarely turn out to be a good investment for financial return. However the parents of PGA Tour winner, Luke Donald, might justifiably think otherwise.

The twenty-eight-year-old golfer has two PGA Tour wins to his name, the 2002 Southern Farm Bureau Classic, and as of last week, The Honda Classic. His win resume also includes the 2004 Scandinavian Masters, the 2004 Omega European Masters, and the 2004 WGC World Cup. The last week of March approaches, and Donald has already racked up a cool $1.4 million in earning from this year’s US PGA Tour play alone.

But young Luke, could have been a budding cricket or rugby star, had it not been for the fact that his parents purchased a timeshare. The family’s timeshare in southern Spain offered free golfing privileges on the resort course, so Luke, then eight years old, picked up a driver and the rest, as they say, is history..." Entire Press Release

RCI Timeshare Weeks Program Sued In Class Action Filing

2006-03-20T05:45:00.000-08:00

Our Comments: Although the sales agents make is sound so simple to trade your timeshare unit for another one, you soon learn that it's not the case. There may be more to it than you first thought (why does this not surprise us in the least bit?). Green Welling has started a class action suit against RCI weeks program alleging that RCI rents out the most desirable vacation weeks instead of having them available for trade:

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"Green Welling files a nationwide class action in New Jersey on behalf of RCI Weeks Program members. Through its Weeks Program, RCI offers its members the option of depositing their vacation week in a spacebank to exchange it for a comparable week from the spacebank. RCI states that the vacation weeks deposited into the spacebank are maintained in the spacebank for exchanges. Plaintiff alleges that RCI actually rents out the most desirable and highly demanded vacation weeks from the spacebank, thus depleting the most desirable options available to Weeks Program members who seek exchanges. Plaintiff seeks an order enjoining RCI from continuing this unlawful practice and an order requiring disgorgement of all profits RCI received in connection with renting out vacation weeks deposited for exchange in the exchange spacebank, in addition to other monetary relief.

If you have experienced problems with your RCI Weeks Program membership or would like to learn more about the lawsuit, please contact us at 415-477-6700 or email us at gw@classcounsel.com."

Unloading Time Share Likely A No-Win Deal Article

2006-03-19T18:55:00.000-08:00

Our Comments: We were quoted in an article by Gregory Karp in the Chicago Tribune titled Unloading Time Share Likely A No-Win Deal and are happy that the truth about getting out of a timeshare has been highlighted - it isn't going to be easy and you're likely to lose money. The list of steps to take in trying to get rid of your timeshare is good advice:

Don't pay an upfront listing fee.

Do try to sell it back.

Do try renting your time-share week.

Do try to sell it online

Do try selling it yourself

Don't abandon it

Don't ask too much for it.

Do consider using a pro.

Do your homework on resellers.

Do try to transfer payments.

Do consider donating your time share.

It's nice to finally see a mainstream media outlet addressing this issue as most people are left on their own when they find themselves in a Timeshare trap.

Timeshares For Dummies Book

2006-03-14T18:15:00.000-08:00

We really wish that the book publisher had asked us to write this book rather than an industry insider who recommends that you can get good deals on a timeshare from the timeshare developers. This is just plain incorrect and you'll watch 50% or more of the value of you purchase fly our the window the minute you sign on the dotted line if you take this advice.

We could have written this book in two succinct lines.

1. For the vast majority of people, timeshares are a complete waste of money - don't buy one.

2. If you happen to be the exception to rule number 1, buy used (a resale unit) - never from the developer.

We just saved you $19 on the cost of the book and gave you better information. If you think our review is unfair and that the book may shed some light that will help you in regard to timeshares, borrow it from the library. Then when you see that it doesn't give you quality information you can use, you still haven't wasted any money on it.

Added Risks Without Rewards For Timeshares

2006-03-13T17:09:00.000-08:00

Our Comments: Another of the many dangers associated with timeshares. When you take ownership of a place, you take on a lot of potential risks. With most real estate transactions, you take these risks because of the opportunity to receive substantial gains in the property over time. Since this isn't the case with timeshares, you take on all the risks of ownership without the potential of increasing the value of the asset - one more reason why timeshares just don't make sense for the vast majority of people.

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Back in January, The Freeport News learned that several owners were talking with lawyers about a lawsuit against the Crowne Plaza Golf Resort and Casino at the Royal Oasis which shut down in September 2004. The owners cited the reason for the closure was for repairs. However, 18 months and millions of unpaid dollars later, there has been no word from the owners to the 1,300-plus displaced employees.

A number of owners who contacted this daily had still been making the regular payments, despite the resort's closure, out of fear they would lose their money or their points if the resort was to reopen.

One Virginia woman said she paid $12,000 cash for her timeshare and has never received a bill for maintenance fees. Some owners took out loans to purchase their timeshare... Entire Article

The Hidden Risk Of Timeshares

2006-02-24T19:52:00.000-08:00

Our Comments: One huge risk that you take on when purchasing a timeshare is the cost of repairing the facility if there is major damage to it (something you don't carry when you stay at a hotel or rent a condo). Of course insurance should pay for it, but it rarely works out to be that easy. And if you have to pay special assessment fees for damage, your losses will increase dramatically. Just one more issue that should make you think long and hard before buying:

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With no insurance settlement in sight for the $20 million in damages from Hurricane Ivan, Morritts Tortuga Club and Resort has gone into arbitration with its insurance company, Lloyds of London...

A special assessment fee of US$5.74 million had been charged to timeshare owners to cover the 15 percent deductible on the $20 million claim to the insurance company. Although most of those fees have been paid, numerous owners are claiming that actually the fee is not their responsibility as part of their purchase agreement and should be paid by the developer.

Furthermore, it was the developer's responsibility to carry adequate insurance coverage. And since the industry standard throughout the Caribbean is 5 percent, this is a sign the property may be under-insured, which they say is a clear example of financial mismanagement...

According to some timeshare owners, the attorneys for Morritts Tortuga have said any substantial legal fees that it accrues will be passed on to the timeshare owners in another special assessment fees... Entire Article

Timeshare Scammed In Vegas

2006-02-22T17:16:00.000-08:00

Our Comments A typical timeshare strategy - hook you in with an offer of some supposedly great "free" deal which ends up not being so great plus you have a timeshare you can't get rid of. From one of our readers...

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"I was in Vegas when we got scammed by the high pressure sale tactics - was promised 2 free cruises with purchase of time share - was promised we could rent out the property and make enough profit to pay for years costs - was told property would increase in value ever year and if we wanted to sell would be no problem as there are hundreds of buyers out there...

REALITY. The cruise was free if you paid for all fees associated with the cruise - these fees are higher than if you just booked the cruise yourself. No one wants to buy our timeshare. It's been listed for 12 months not and not even a buyer offer has been made. It takes a lot of advertising and months of planning (general two years if you want to rent it out). I will never invest in a time share again." - BB

Luxury Timeshare Yachts

2006-02-19T17:13:00.000-08:00

Our Comments: I came across an article in the newspaper this morning and I simply cringed when we saw the idea of a luxury boat timeshare. This concept will end up being far more costly to anyone who gets involved that even a regular timeshare unit (note: there seem to be some boat fractional time units where there is no ownership of the boat and set fees which seem a little better but should still be approached with extreme caution). Having been around yachts (not quite this size, but I did used to race 36 footers) their value dives far faster that condos plus the upkeep of them is extremely expensive. Definitely no discount parts in the luxury yacht business. Just as with regular timeshares, you can rent something like this for a week for far less than you could ever getting into a timeshare with it. Lastly, weather is a huge determining factor with sailing - sign up for a set time each year and you may never even get out. Avoid at all costs.

Don't Prepay To Sell Your Timeshare

2006-02-15T17:40:00.000-08:00

Our Comments: If you buy a timeshare, in all liklihood it's going to be hard to sell and certainly don't prepay to try and get the timeshare sold (it's no better than throwing money out the window).

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Timeshare vacations are still popular with some, and salesmen are still out there making pitches for them.

But, before you buy you should know they're not easy to resell and there are a lot of companies ready to take your money by offering to sell them for you... Entire Article

Man Pays $84,000 In Fees To Get Rid Of $9,000 Timeshare

2006-02-12T21:05:00.000-08:00

Our Comments: This just goes to show that even smart people can make poor financial decisions when put under high pressure sales tactics, something that the timeshare industry uses in vast amounts. The fact that timeshares have been the top complaint under new consumer laws passes in Singapore doesn't surprise us in the least bit.

This entire episode highlights why you should never pay an upfront fee for selling your timeshare.

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He paid $9,000 for a time-share membership plan in 2001. But to terminate the membership, sales manager K B Ong paid a mind-boggling $84,000 fee to a time-share resale company to help him do so...

It's like buying a car for $50,000 and forking out another $500,000 to scrap it...

'I was also not given time to think because the company was pressuring me to make immediate payments each time. I felt I had to pay because I was stuck, having already paid so much...

'I also felt misled when he told me that some time-share consumers who tried to terminate their memberships had been sued for more than $50,000 by time-share companies.'

Case said that under the Consumer Protection (Fair Trading) Act, Mr Ong could file a claim against the resale company for alleging that it was in contact with ATC when this might not be the case.

The CPFTA was enacted on 1 Mar 2004 to curb unfair business practices and enhance protection for consumers.

Time-share companies have topped the list of breaches of the CPFTA since its enactment till end last year, reported The Straits Times... Entire Article

Florida Attorney General Lists Timeshares As Top 10 Scam

2006-02-12T20:35:00.000-08:00

Our Comments: The fact that Timeshares made the list of the Florida Attorney General's list of most common scams doesn't surprise us in the least bit. From the article:

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Timeshare scams occur both at the time of the original purchase and at the resale. Beware of a hard sales pitch or an up-front fee. Consider reselling the timeshare "by owner," by placing an advertisement in a newsletter or magazine read by potential timeshare buyers, or listing the timeshare with a licensed real estate broker in the area where the resort is located... Entire Article

Another Timeshare Article

2006-02-12T20:21:00.000-08:00

Our Comments: Another article on timeshares this time in the San Francisco Chronicle. While not as informative as the Chicago Tribune piece, it does highlight a few of the pitfalls of timeshares at the end of the article. While the article says that timeshares can work for cautious buyers, we'd say "extremely cautious buyers who know all the facts beforehand" which would mean that for most people timeshares being worthwhile would be the exception rather than the rule.

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...Don't consider a timeshare an investment; the value of a timeshare interval almost never increases. If you like the idea, figure the buy-in price as a prepayment on future vacations, to be amortized over a period of years. Be skeptical about puffed-up claims for exchange opportunities in exotic locales. The most common complaint from timeshare owners is that they can't ever find an acceptable exchange interval.

Watch out for bait-and-switch or upgrade pitches. When owners complain about lack of exchange opportunities, promoters often urge them to upgrade to better located and more expensive intervals, which is supposed to expand exchange opportunities miraculously. Also beware of escalating management, maintenance and other fees. The developer/owner/manager may increase fees with no effective constraints.

If you like the idea, the best strategy is to buy a resale. Timeshares, like new cars, can lose 50 percent of their value as soon as you buy them. In the resale market, you can buy at 10 to 50 cents on the dollar of the original price. Check with a broker in an area you're considering, or go online to one of the many timeshare resale sites. Entire Article

Informative Timeshare Article

2006-02-12T20:10:00.000-08:00

Our Comments: The Chicago Tribune came out with an informative article titled 10 reasons why you should think hard about time shares highlighting some of the pitfalls of purchasing a timeshare (free registration required to read the article). We feel that these are quality warnings that everyone who is considering purchasing a timeshare should read. Here are the 10 things a timeshare salesman is not likely to tell you highlighted:

1. A time share is a lousy investment
2. Fees add up in a hurry
3. Travel costs can add up to a lot of money
4. Time shares are complicated
5. The break-even point is many years away (if ever)
6. You'll lose vacation flexibility
7. Time-share prices are very negotiable
8. Don't buy the time share from me (or in other words, by used)
9. Timeshares come with lousy financing
10. You'll have a hard time unloading your timeshare

Read the Entire Article

Bahrain To Regulate Timeshares

2006-02-12T19:49:00.000-08:00

Our Comments: We applaud Bahrain for taking the step to regulate timeshares even before any timeshare units have been built in their country and hope they disregard the wishes of those in the timeshare industry that think they should keep the regulations the same as the international community. We hope that they will make them much stricter in favor of the consumer rather than the timeshare builders.

While the regulation is a good first step, we ahve concern that the article is already referring to timeshares as an "investment" - something that should always make you turn and run for the hills as quickly as possible.

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A new law regulating the sale of timeshare properties in Bahrain has been proposed by a group of MPs.

The move follows some alleged incidents by Bahrainis who purchased properties that did not exist.

The MPs say that the sale of apartments, villas, chalets and hotel rooms within and outside of Bahrain should be regulated under clear laws...

Under the proposal, the contracts would have to be filed with a government body and the laws would clearly state the rights of buyers to use and rent property...

Timeshare properties allow investors to own properties for one or more months a year for a certain period of time.

It can be a cheap way for them to spend their holidays or the properties can be rented out for extra income.

"There are no timeshare properties at all in Bahrain so a law regulating it could open up a huge industry," he said... Full Article

Timeshare Guaranteed Prize Mailers

2006-01-28T02:22:00.000-08:00

Our Comments: This is one of the worst ways that timeshares try to get people in the door so they can high pressure sell people into purchasing a unit. They pretend that the person has won a guaranteed prize of some type and then do the hard sell. This is especially bad since one of the mailings doesn't even have it in the fine print they are going to be hard sold a timeshare. Always approach these "free prizes" with extreme caution or they may cost you a lot of money.

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A timeshare resort in South Lee, Mass., is sending residents mailings that promise cash and prizes if they attend a sales presentation...

The first mailing is described as a "free entry" with a "guaranteed prize" of a shopping spree, fancy car, cash or vacation. But the small print says, "you must attend a 90-minute timeshare sales presentation to be eligible to receive your prize and gift(s)."

The second mailer claims that the person who received the letter, won a "great prize." But, the resident has to pick up the prize in person. There is no mention of the timeshare, but the mailer is also for the Oak 'n Spruce Resort... Full Article

Timeshares In Europe

2006-01-22T15:13:00.000-08:00

January 22, 2006

Our Comments: Sales of timeshares in Europe seem to be even seedier than in the US (if that can be imagined). In the end it's a business that seems to attract criminal elements and it goes to show that the entire timeshare industry is one where scam artists thrive.

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They once offered holidaymakers the dream of their own place in the sun. But years of bad press about scams, violence and corruption has shattered consumer confidence in timeshares to such an extent that the industry may be in terminal decline, a report obtained by The Observer reveals.

With sales falling, many leading companies in the industry are reporting losses. And the law has failed to keep up with the rogue traders, with reports that local police in Spain and Portugal have been bribed to turn a blind eye to any complaints from wronged customers...

A report by the Timeshare Consumers' Association describes an industry in crisis. It warns: 'Unless action is taken soon which will result in a recovery of consumer confidence there is every possibility that sales of timeshare in Europe will cease in the foreseeable future...'

The TCA's report found: 'The timeshare industry has sought to enhance its profits by applying corruption and bribery at all levels. Individual timeshare owners are targeted - wined and dined - to encourage them to act as "independent" endorsers of the product...

'Fraud against consumers has increased in intensity, sophistication and spread during the last year. More companies are now acting fraudulently, with more complex and clever frauds against more people. And some of the newer entrants to the fraud game are those businesses which, until a couple of years ago, were regarded as being respectable... Full Article

More On The Seedy Side Of Timeshares

2006-01-16T18:48:00.000-08:00

Our Comments here is some more news on the types of characters involved in the timeshare industry in Europe. These are certainly not the type of people you'd want to have as your next door neighbors.

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Police in Tenerife fear that a bloody international timeshare turf war may be looming after the murder of a British couple. A news blackout has been imposed after the killings of Billy Robinson, 58, and his wife, Florence, 55, who used to work for John “Goldfinger” Palmer, the millionaire timeshare fraudster.

The couple were attacked in two incidents last week after their cars were forced off the road. Mr Robinson was tortured before having his throat slit, and Mrs Robinson was bludgeoned to death.

It is thought that the pair may have been the victims of Eastern Europeans trying to muscle in on the timeshare market...

Detectives say that Eastern European gangs, particularly Romanians, are increasing in number in the south of the island, which has long been a magnet for criminals hoping to cash in on the booming timeshare market... Entire Article

The Seedy Side Of Timeshares

2006-01-14T16:34:00.000-08:00

Our Comments - Timeshares are not alsways run by the most upstanding of citizens

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Police in Tenerife are investigating after a British couple was found brutally murdered near their home on the island.

Florence Robinson, 55, was found lying next to her Mercedes car, near popular resort Playa de las Americas, just before midnight on Thursday.

Her husband Billy, also 55, was discovered yesterday morning on an industrial estate a mile away, lying on the back seat of his Porsche.

Both had suffered severe head and neck injuries, and the back bumpers of their cars seemed to have been rammed by another vehicle.

The couple, who ran a timeshare business, had lived on the Spanish island for more than 15 years. They divided their time between their villa in San Miguel and their house in London.

Some reports suggest that the deaths of Mr and Mrs Robinson were linked to rival timeshare businesses, as the industry has been associated with violent patch wars in the past.

A source close to the couple told The Times that Mr Robinson had been attacked by British gangsters two years ago...Full Article

Timeshares In China

2006-01-13T17:40:00.000-08:00

Our Comment More high pressure sales tactics and dubious schemes that are rightly associated with timeshares finding their way to the far reaches of the world. No surprise here.

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The sales pitch hit Mr Zhu as he made his way down the aisles of a Shanghai houseware store: If he filled out the survey, his name would be entered into a big prize draw.

A few days later, a caller asked him to go to an office building downtown. When he and his wife arrived, the staff welcomed them as winners of the draw and invited them to watch a video. It described a resort in Yunnan province where they could buy long-term rights to stay for a week each year, or accumulate credit toward longer stays. As the Zhus puzzled over the arrangement, staff pressed them to secure usage rights for 15 years for 30,000 yuan (HK$28,825).

The Zhus' debit card allowed them to pay only 3,000 yuan on the spot, so a staffer offered to escort them home for more cash. Suddenly, wary because night had fallen and their home was far away, Mrs Zhu declined.

Two days later, the Zhus began asking for their money back. They didn't get it, so they took their story to a local newspaper as a warning to other naive consumers.

Timesharing, an industry whose high-pressure sales tactics and sometimes dubious schemes has generated more than its share of complaints and lawsuits in countries from Singapore to Australia to the United States, has arrived in China... Read More

Timeshare As An Investment

2006-01-12T15:40:00.000-08:00

Our Comments While we once again feel that the Belize government made a much needed step to stop timeshare sales people from ruining people's vacations, we take issue with timeshare industry people who on one hand seem to applaud the Belize governments actions for stopping timeshare abuses and then make statements that imply timeshares are something that they're not. We once again see those in the timeshare industry implying that a timeshare is a good investment - and as we all know, it is one of the worst investments that you can ever make.

The following is a press release and the statement that shows the timeshare industry's true colors is "...investment in a lifetime of vacationing, recreation, and relaxation—not" Notice that they don't say "financial investment" but the way it's worded and using "investment" at all is quite misleading.

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The Belize Tourism Board heard one complaint too many about the aggressive marketing practices of some timeshare operators on Ambergris Caye. They decided to take action to protect the laidback serenity of San Pedro, the quiet Caribbean town that is the major settlement on the one-mile wide, twenty-five mile long island strip.

Members of the San Pedro Town Council, including Mayor Elsa Paz, the Belize Tourism Board, and the San Pedro Police Department met on December 8, 2005 to address the problem. Present at the meeting were representatives of six major timeshare properties on Ambergris Caye.

The results were two ordinances, both effective immediately. The first requires, “all timeshare operators cease and desist from soliciting timeshare sales in public areas.”

The second required that timeshare operators obtain trade licenses for their booths or kiosks through the San Pedro Town Council, by December 31, 2005.

Tourism dollars from Belize’s nearly quarter million annual visitors, account for 15-20% of the gross domestic product (GDP) of Belize, according to published statistics of the Belize Tourism Board. Undeniably, timeshare dollars make a significant contribution to this income, but high-pressure tactics and intrusive sales people benefit neither the timeshare industry, nor tourism in San Pedro.

Jason Tremblay, CEO of Sell My Timeshare Now, LLC. says, “when local governments get involved in regulating the actions of overzealous or unscrupulous timeshare operators and off-property agents, the timeshare industry across the board reaps the benefits. Ethical timeshare sellers want to see people purchasing timeshares because they recognize it as an investment in a lifetime of vacationing, recreation, and relaxation—not because they are victims of strong arm timeshare sales tactics.”

More Hidden Risks In Timeshares

2006-01-09T19:20:00.000-08:00

Our Comments: One of the many hidden risks with timeshares is that if something goes wrong with the building, you may be completely out in the cold. Take this news article for example:

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Several time-share owners of the now defunct Royal Oasis resort are talking with lawyers and plan to file a class action suit.

Among those expected to be named in the suit are resort owner Driftwood Freeport, David Buddeyemer, president of Driftwood Freeport Limited, and Lehman Brothers.

The situation is leaving a bad taste in the time-share owners' mouths and a terrible impression on the government of The Bahamas...

Fifteen months ago, the Crowne Plaza Golf Resort and Casino at the Royal Oasis closed down, reportedly for much needed repairs after Hurricane Frances in September 2004.

The closure forced the lay-off of some 1,300 employees and subsequently the time-share arm.

With no word from the timeshare resort for several months regarding a pending sale or reopening of the resort, and virtually stuck with a time-share point system that is useless to them, several owners are threatening legal action... Full Article

Timeshare Con Artist Gets Jail Time

2006-01-06T17:29:00.000-08:00

Our Comments: It's a shame that situations like this occur at all. Just another reason to be very wary when hearing a timeshare pitch.

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A GREEDY timeshare conman has been jailed after he fleeced thousands of pounds from more than 70 would-be holidaymakers who dreamed of their own place in the sun.

Jeffrey Armstrong, 51, from Offerton, Stockport, put adverts in national newspapers with the promise of bargain timeshare deals.

He visited those who replied, offering them big discounts on holidays to Spain, Florida and Portugal, and in England and Scotland.

Victims handed over between £500 and £7,000 as deposits, but the certificates he gave them for shares in holiday complexes either did not exist or were worthless. It is thought he may have pocketed more than £200,000... Entire Article

Timeshares In India

2006-01-01T18:34:00.000-08:00

Our Comments: Even in far off places like India, timeshares have a bad reputation. There is only one reason why timeshare owners have to put on the hard sell. It's simply because if they didn't, nobody would buy. They would look at all the facts and see that timeshares aren't the deal that the seller says they are. I doubt I get many readers from foreign countries here, but no matter where you live, timeshares are to be avoided.

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...Many clients have said that the sales talk has been so smooth or the brow-beating so systematic, that they have parted with a substantial sum of money needed for investment only to come home and realise that they have been conned. The contract states that deposits given will not be returned. In some cases, when people have tried to escape the net by stating that they have not carried their credit cards or cheque books with them, the timeshare company has sent an executive with them in the company’s car to secure immediate payment.

There is the danger of the owners of timeshare resorts exposing the amount collected through sale to financial hazards. Many owners have burnt their fingers in speculative investments, and find it difficult to maintain their properties. A vacation for a customer then becomes a nightmare.

Many timeshare companies have collected money from clients and never been able to either set up the resort or have set up a system far inferior in quality and quantity to what was promised to the consumers. Consequently, when the client wants to go to the resort, either it is overbooked, or the facilities are sub-standard. In some cases, the resort is non-existent.

Most timeshare companies also sell premises to travellers, like in hotel. Customers with cash are welcome. There are many complaints that exchanges are not available easily for genuine customers who have made payments upfront while buying the timeshare, but casual travellers get a booking three days prior to check-in...Full Article

Data Stolen From Timeshare Company: Fraud Alert

2005-12-27T22:17:00.000-08:00

Our Comments: A possible identity theft and financial fraud nightmare for some timeshare owners. If you have a timeshare with Marriott Vacation Club International, make sure to monitor your credit reports for possible fraud. This is one situation that even timeshare owners shouldn't expect to have happen...

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Marriott Vacation Club International (MVCI), the vacation ownership division and subsidiary of Marriott International, Inc, said today backup computer tapes containing data pertaining to approximately 206,000 associates, timeshare owners and timeshare customers were missing from the corporate office in Orlando Fla...

Although the tapes require specialized equipment to access content, MVCI continues to encourage recommended steps to safeguard against misuse. Included in the notification letters, MVCI is offering to individuals impacted by the situation an opportunity to enroll in a credit monitoring service at no cost to them. After enrollment, each person will be regularly notified of credit report activity so they can take action if needed.

For those impacted associates, timeshare owners and timeshare customers, the company has established a special contact telephone number of (800) 952-8145 and a website at http://www.vacationclub.com/datasecurity, or impacted individuals may e-mail the company at datasecurity@vacationclub.com. Press Release

Timeshare Selling Tactics

2005-12-23T16:47:00.000-08:00

Our Comments: It's good to see the hard sell tactics being reigned in a bit. Kudos to Belize for making it so timeshare salespeople can't pester people while they're trying to enjoy their vacation!

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Several reports have reached the Belize Tourism Board (BTB) office regarding Time Share Operators (TSO) on Ambergris Caye. Complaints were of tourists getting beleaguered by TSO's when they were enjoying their relaxing vacation on La Isla Bonita.・

On Thursday, December 8th, 2005, representatives of the various TSO's met with Lloyd Enriquez, Registrar of Hotels and Tourist Accommodation, police officer and members of the San Pedro Town Council to come to an amicable resolution. During this important meeting, the Off-Premises Contact (OFC) was thoroughly discussed and the following were the conclusions reached:

All TSO were asked to cease and desist from soliciting time share sales in public areas, which means no soliciting on the streets or beaches, effective immediately.

The second resolution reached was that all TSO's need to apply for a trade license for their respective time share booths at the San Pedro Town Council. These booths will be confined to private properties or buildings and no licenses will be granted for booths residing in public areas. The San Pedro Town Council will embark on this feat to ensure that all unlicensed booths be removed from the streets of San Pedro Town and that the proper procedures regarding trade licenses are followed. Entire Article

Timeshare Complaint

2005-12-22T20:06:00.000-08:00

We received the following complaint about a timeshare:

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Sunset Lagoon Cancun Timeshare Fraud

I purchased a timeshare a few months ago at Sunset Lagoon in Cancun, Mexico. I was given a written "guarantee" that I would receive rental income for two years and that Sunset Lagoon's US subsidiary would sell my existing timeshare for $10,000 within 90 days. As it turns out, the US subsidiary is not a part of Sunset Lagoon at all, they are just a marketing company and have no record of any guarantee made by Sunset Lagoon. Sunset Lagoon now tells me that the document I received is not a part of the contract and refuses to cancel the contract and give me my money back.

Sunset Lagoon lied to me and scammed me out of nearly $10,000, and has stuck me with a timeshare that I certainly do not want. I have filed formal complaints with my credit card company, the FTC, Profeco, econsumer.gov, RCI and the Attorney Generals in NC and FL (where Sunset Lagoon maintains an address for purposes of collecting money). At this point, I'm just waiting to see what comes of this and looking for any advice anyone can give me. If anyone has been in this type of situation, I would appreciate any help you can offer.

Needless to say, I advise everyone to stay away from Sunset Lagoon, Sunset Beach, Royal Sunset, Fisherman's Village or Sunset Clubs while in Mexico. These resorts are all owned by the same lying thieves!