Are Timeshare Scams Still Prevalent Today?

Once a highly popular way to ensure a regular holiday abroad, there are still many people involved in timeshares today. Indeed, they can offer a cost effective option to going abroad to warmer climates every year. Although the timeshare industry has moved on from the high notoriety of timeshare scams associated with the 1970s and 1980s, it doesn’t mean that timeshare scams have disappeared; they haven’t.

Today, timeshare scams are more focused on timeshare owners who want to exit a timeshare agreement or dispute the payment of annual maintenance fees on their timeshare property. So, let’s look at some of the most common timeshare scams that are taking place now.

What Are The Most Common Timeshare Scams?

There are many legitimate timeshares and happy owners. However, the practice is open to timeshare scams, leaving people without their agreed time at their property and out of pocket.  There are several common timeshare scams that you should be aware of before you get involved in a timeshare.

• Buying A Timeshare – companies that sell timeshares will often hold an all-day event and promise a free lunch, free gift and even a free overnight stay in a hotel if you attend. However, before you agree to go, always research the company first. You may feel pressurised into making a decision whilst you are at the event. Never sign any documents without taking it away and reading through all the small print. It’s always worth asking a solicitor to check the contract on your behalf.
• Selling On A Timeshare – if you’ve made the decision to sell your timeshare, there are timeshare companies that promise to sell your property share quickly for an upfront fee. Often, when that fee has been paid, the company disappears or claims that they were unable to find a buyer. You may find that you could be asked for further fees to try and sell the timeshare again. However, there are legitimate timeshare re-sale companies. First check the relevant laws in the country (state) where the timeshare property is located. When you speak to a re-selling company, find out as much as you can about them and arrange to meet them in person before you discuss or sign any documents. Online reviews are always a good place to start. Always have the documents checked by a solicitor to ensure they are legitimate.
• Maintenance Fees – becoming a very common occurrence is charging timeshare owners annual maintenance fees for their timeshare property. You may also be contacted by telephone for a timeshare that you have left, told you are still timeshare owners and are liable for back maintenance fees. This is not the case at all; so, never pay any monies over the telephone.
• Financial Rewards – another form of fraud is making claims that you, as a previous timeshare owner, have been awarded a sum of money as a result of a legal court case involving the timeshare property. You may be required to pay fees to transfer the money to you but the situation is usually that there was no court case and there is no sum of money. So, never pay any ‘fees’ to anyone.

As with any timeshare scam, prevention is the better cure. It’s always advisable to do as much research at you can before you agree to anything or sign any documents. If you’re not sure about a timeshare, ask an experienced solicitor to review any documents and make recommendations.