Timeshare companies use creative ways to remain afloat as savvy consumers have become aware of their sometimes illegal and unethical behavior or timeshare scams AFTER THE SALE. Perform your own Google search and search for the plethora of lawsuits between timeshare owners and timeshare companies.
According to an article in Redweek.com, quoting Dr. Amy Gregory who spoke at a recent ARDA convention, 85% of timeshare owners are dissatisfied with their purchase. Many are trying to get out and are flooding the timeshare resale market and the timeshare cancellation industry which is now a legal battlefield against the resorts.
So, the timeshare companies must create ways or more timeshare scam to remain afloat. Otherwise, they will be trampled by Airbnb who is pursuing a similar market – the Millennial Generation.
Companies convince the elderly, minorities and Millennials into signing long term mortgage contracts with no protection for the purchaser.
Timeshare Contracts Are Now Full Mortgages
One of the most obvious timeshare scams that timeshare companies are separating the timeshare interest with the mortgage. Once the new purchaser signs the paperwork, a mortgage is taken out with a different company.
If the timeshare owner is not getting what was mentioned during the sales presentation, or the timeshare owner cannot go where and when they desire, they are still obligated to pay the mortgage. Some timeshares mortgages are over $50,000.
If the company goes bankrupt, they are still obligated to pay the mortgage companies.
Some of the contracts have over 50 pages of legal jargon that provide the new buyer little, if any time, to review it. The 50 pages focuses more on the mortgage, not the benefits to the member or the obligation of the company. If the mortgage is not paid, the mortgage companies contact the credit reporting and collection agencies to go after the money like a dog after a bone.
It’s tantamount to buying a car from a dealer. The loan is always with an outside lender which obligates the consumer to the mortgage regardless as to whether the dealer fulfills his end of the agreement i.e. customer service and product quality.
Read the sad stories featured on Inside Timeshare of consumers who regret their timeshare purchases.
Timeshare Resales Are Virtually Worthless
Many timeshare companies are not recognizing their owners’ resales that are flooding the secondary market by owners who are trying to dump their unwanted timeshares.
When a consumer purchases the timeshare on a resale site, some timeshare companies will not allow the new owner to use them unless they purchase more timeshare points. Their prices are into the thousands of dollars on top of what the new owner has already paid for the timeshare and transfer fees.
Many new timeshare owners are not aware that their timeshares are worthless on the secondary market, and they not be able to get rid of them or the mortgage. “Buyers beware!”
When purchasing a timeshare on the secondary market, review the contract carefully to determine whether the resort will allow the new owner ancillary rights without paying more money.
Owners Can No Longer Sue the Company – Regardless
When consumers sign a contract with some timeshare companies, many unknowingly agree not to take any legal action against them and are forced into arbitration.
This can be an oversight for the new owner who has been guided by the sales staff reviewing the contracts after the sales process. Many contracts state that if the purchaser does not volunteer for arbitration as stated within the contract, the timeshare company cannot be sued for any reason, and the consumer has to use the arbitration company that the timeshare resort has chosen.
Read your contracts before you sign anything.
New Owners Do Not Have Immediate Access To The Website
Unfortunately, new purchasers do not have access to their timeshare websites until weeks after the purchase, making it impossible to determine whether the program is what they were told or if it even works.
I received an email from a gentleman who recently purchased 18,000 credits from Wyndham for $48,000 Australian dollars. He stated that when he tried to access the website after making his purchase, he was unable to log in.
He contacted the company, and they informed him that he would not have access until weeks later.
Once he did gain access, he was surprised to discover that the contents on the website was completely different than what was stated to him during the sales presentation.
He wanted to cancel the timeshare for misrepresentation. The timeshare company agreed to cancel the contact, but he is still obligated to pay the mortgage.
Luckily, for many timeshare owners who want to get rid of their timeshares, the advent of online cancellation courses is growing. Rather than pay a timeshare cancellation service a hefty fee to cancel their timeshares, they can enroll in an online course and learn how to cancel it themselves for a few hundred dollars. The courses explain why and how they can easily cancel and are backed by a 100% money-back guarantee.
Yes, the timeshare companies have created more timeshare scams for consumers, but timeshare cancellation courses seem to be the new kid on the block as a means to get out.