Timeshare Scam
ARDA fights timeshare scam
As a result of the current economic environment, disreputable companies are using unscrupulous tactics to take advantage of owners who may need to sell their timeshares. In fact, several state attorneys general have addressed concerns about resale “scams.” Since the re sale industry is largely unregulated, the American Resort Development Association or ARDA is working with its members, including reputable resale companies, to ensure transparency on both the buying and selling process.
In September, ARDA released two consumer advisories to help consumers and timeshare owners navigate through the secondary market, which includes timeshare resellers, Internet advertisers and other resale companies, to ensure a safe and positive selling experience. The advisories were developed to help dispel the growing misinformation and confusion in the secondary marketplace by providing specific tips on reviewing timeshare resale companies, their practices, costs and services in the marketplace. Howard Nusbaum, president and CEO of ARDA, delivered this statement in response to the Florida Attorney General’s Office move Monday, November 2, to seek an emergency injunction against a West Palm Beach timeshare resale operation for fraudulent practices
“This is not an indictment of our reputable resale company members, but rather a problem faced by everyone who loves this industry being painted with the same ‘timeshare scam’ brush,” said Nusbaum. “We continue to work with stakeholders to craft what we believe will be guidelines for best practices and legislation,” added Nusbaum.
Although there are many reputable companies that provide resale services, the largely unregulated secondary market also includes some that use unscrupulous tactics to take advantage of owners who may wish to sell their timeshares. The Florida Attorney General’s Office took action against Creative Vacation Solutions, a timeshare resale operation in West Palm Beach, for charging nearly $2,500 in marketing fees from hundreds of customers but did little or nothing in return.
The first of the two consumer advisories focuses on the types of timeshare resellers with four steps to guide consumers through the process: utilizing existing resources, understanding timeshare resale companies, choosing the best option, and following basic rules. The second advisory provides tools to evaluate resale companies with a list of tips.
Added Cindy Thomas, Stoneridge Resort Manager: “It’s simply a matter of buyer beware. With the state of the economy today, a large number of our owners are being approached by a variety of companies, with offers of previously unheard of rental revenues or resale prices, and even just “getting out from under” one’s timeshare week. Many of these offers are hard to understand, even for the savviest of timeshare owners. Unfortunately, we have heard from many owners who were dissatisfied with the end result of these transactions and little can be done about it after the fact. As always, if a deal sounds too good to be true, it just might be. Be aware and be diligent. Do your own research and check with your own timeshare resort association before doing anything.”
“We applaud the efforts made by Florida Attorney General Bill McCollum to investigate dishonest resale companies whose actions taint the industry’s reputable resale companies ARDA continues to work with its members to ensure transparency on both the buying and selling process,” said Nusbaum.
ARDA encourages consumers and timeshare owners to conduct research and due diligence on any resale company or advertiser in advance of paying any money or signing any contract or agreement.
Comments
When choosing a timeshare resale company there are many things to consider. Up front fee's always seem to take front row seat in the discussion but what about exposure on Google or Yahoo? Competitive markets like Timeshare Resales requires long term companies to expend dollars on marketing options to allow for your timeshare to be found. If your timeshare can't be found on Google, or on internet ads then your options for selling it are even slimmer. Compare it to selling a house, would you rather be on the local real estate agents board or the MLS?
It's wonderful that there is an organization out there (ARDA) who is actually looking after the best interests of the timeshare industry and thus the timeshare consumer. Howard Nusbaum, head of ARDA, recommended http://www.redweek.com in an article I read on aarp.org - we took his word for it and have had terrific experiences with redweek, both renting timeshares and buying one (resale) through them.
never ever pay an significant upfront fee to sell your timeshare! tug2.net has been the voice of the timeshare consumer for over 16 years, and we can promise you that if you are attempting to sell your timeshare...someone is going to try to scam you! Do not fall for the lies and the tricks! If you are asked to pay ANYTHING upfront, walk away!
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