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Timeshare Scams, Scares and Swindles
Timeshares are scam magnets. Think about it – they’re assets, they involve a lot of money and many aspects of the transactions are based on trust. In the last several years, many unscrupulous individuals have already managed to swindle millions of dollars from regular, working-class consumers all over the world. It’s time we, the buyers, smarten up.
The 1-2 Buy
One of the scams that have spread over the last few years is the 1-2 Buy Trick. It goes by several names depending on where you go but the premise is still the same. A company offers to sell timeshare for you at a great price – and that’s hard to come by nowadays – if you buy one of their timeshares in turn. Many agree to the deal, only to discover that the company, unsurprisingly, does not keep its end of the bargain, the one that involved putting the customer’s timeshare on the timeshare resale market. The unfortunate consumer, aside from failing to sell his or her timeshare, is now stuck with another one that he or she or anybody else probably doesn’t want and that might not even exist.
Mail Scams
This form of scam takes advantage of the fact that most timeshare sales take place without the buyer having actually been to the property before. Mail scams often include a letter and a fake brochure of a wonderful new development. The recipient is invited to invest in a timeshare in the development and the “developer” is offering it at a very low price. Once the letter recipient has sent the check or forwarded the money, no title or contract arrives by mail. After making several calls, the poor recipient realizes too late that he or she has just been scammed.
The Suspicious Seminar
Another highly popular scam is the seminar that offers incentives to attendees. The incentive – usually a vacation or a high-value item – is often sufficient to draw in a crowd. Once there, the people who give the seminar ask the attendees for a fee to “cover delivery costs” for the free gift. The attendees soon discover that the ‘free gift’ is merely a toy or some low-value item.
Another variation of this is the seminar that turns out to be a lengthy and very aggressive marketing spiel. The attendees are often given a “buy it now at this special price” offer, forcing many to make a snap decision. Although it is technically not a scam, many unscrupulous timeshare companies have drastically increased their timeshare sales and their profits by selling timeshares to buyers who, on the spot, were forced or seduced to bite onto their bait of a “special price.”
The Pre-Selling Shenanigan
Pre-selling – it’s a magic word amongst developers, and one that you should watch out for. Pre-selling, like the Suspicious Seminar, isn’t technically a scam, but you could still end up losing a lot of money if you fall for it.
Pre-selling, like its name suggests, involves selling off property (or in the case of timeshares, rights to property) before the property is available or fully developed. In some cases, this allows buyers to get their share much cheaper than what the market price of the property would become once it’s completed. However, it is almost impossible to get the initial investment back should development or construction stop for some reason or another.
In a common version of this swindle, the conman spreads the word about a timeshare resort or some type of development to a naïve set of people and then waits for the investments to come pouring in. Once a critical mass is reached or if the conman cannot keep the con up for much longer, he simply disappears into thin air, along with his company, the development and all of the investors’ money.
Buyer, Beware!
These scams – and any scam, for that matter – depend on the gullibility or the naiveté of the consumer to succeed. Don’t give those conmen a chance.
•Read the fine print. They often put something into the contract that they didn’t necessarily mention in the sales pitch. Take time to read every single thing that the contract says before signing it.
•Take your time. Never, ever rush a decision, especially one as big as a timeshare purchase. Don’t let aggressive salesmen pressure you into anything. They need your money more than you need whatever they’re selling.
•Ask the authorities. If, for example, someone sends you a mail-in offer for Marriott timeshares or Disney timeshares at a steal, take the time to ask the real developer if you’re dealing with someone that they have certified or authorized.
Conmen use the art of pressuring and cajoling to get at your money and run away with lots of it. When dealing with transactions as big as timeshare purchases, it’s always better to deal with well-known and reputable names. Remember, if something is too good to be true, it probably is.
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