Timeshare Sales Fraud comes in many forms… but none of them sell your timeshare.
Timeshare Fraud at Resorts — Top 7 Scams (below)
Timeshare Aftermarket Sales – Timeshare Listings & Timeshare Listing Scams
NO Upfront Fees
For example, you can “list a timeshare for sale” (known as “Timeshare Listings”), but if the buyer is a company and not a natural person, the timeshare resort may frequently (and legally) deny the sale. And if you find out how to list timeshares for sale and the buyer is an insolvent individual, your timeshare contract may allow the timeshare resort or vacation club to deny the sale completely, either before it happens or after the sale or transfer of ownership (with secondary liability to the previous owner… that means you!).
Timeshare Sales – Timeshare Transfers & Transfer Fraud Schemes
Just say “No” to Upfront Fees
Some people feel it’s a good idea to spend many thousands of dollars to “transfer a timeshare” to some sort of company or an individual through a “timeshare transfer service”. However, the same sort of complications that timeshare “listings” have, may also cause a “timeshare transfer” to never happen. And in many cases the service that claims they are [quote] “transferring your timeshare”, are really just a front for a fraud-scheme that takes money but secretly knows they won’t transfer anybody’s timeshare, ever.
go ahead… there is hope… why… we get it!
Here is more information about Timeshare Fraud at Resorts…
The Abrams Firm has conducted over 3000 consumer interviews of timeshare owners, almost all Pro Bono. With an 82% Fraud Rate in the aftermarket industry, consumers seeking a legal timeshare divestment were faced with a daunting task, and we have yet to find a legitimate resale or buy-back program where consumers actually make the great profits they were promised at the point-of-sale.
Victims of Timeshare Fraud scams in literally thousands of these consumer reports, evidence deceptive tactics used to trick them into buying.
Below you will find a list of some common concerns timeshare victims have faced at timeshare presentations. If your timeshare sales representative used some of these tactics (deceptive sales practices) then you may have been the victim of Timeshare Fraud, and if so, the Abrams Firm has experience with thousands of consumers that have successfully divested from their timeshare. So read the list below, and if any of the categories sound like what happened to you, give The Abrams Firm a call at 360-918-8196 and ask to speak with a Consumer Protection Attorney directly to discuss your matter. You deserve a seasoned Timeshare Lawyer to provide a preliminary case analysis and provide competent answers to your questions.
TIMESHARE FRAUD — TOP 7 SCAMS
CONSUMER REPORTS TO A CONSUMER PROTECTION ATTORNEY
Timeshare Fraud — Timeshare Scam #1:
The Timeshare is a Good Financial Investment
Some timeshares are totally legitimate, and they end up being worth exactly what they were originally promising. This is true if the timeshare is really worth many thousands, or even if it was an honest representation that the timeshare value is zero. As long as the consumer fully understands the true facts of the gainful investment potential (not very common), or alternatively, the reality that the timeshare sale was exclusively based on lifestyle (with no mention, whatsoever, of potential profits), then the deal is legitimate. Unfortunately for most, Timeshares are not a good financial investment, but when a salesperson knows that, and in order to make a sale they promise great profits, this constitutes a consumer fraud.
Timeshare Fraud — Timeshare Scam #2:
The Timeshare is Easy to Resell
Often the timeshare sales rep is confronted with a concern consumer who says: “What if I ever need to sell my timeshare?” For most people the purchase & sale of vacation ownership was not a priority before they stepped into the sales presentation. So many people simply want to calculate their potential downside risk. In many cases fast answers are given to financial planning questions concerning a rainy day fund or cashing-in when they get too old to travel, etc. Typically, this set of false representations is coupled with misrepresentations about the value of the timeshare (Scam #1) and promises of future profits. Some resort contracts have a falsely inflated construct called a Right of First Refusal (ROFR) to appear as if they may want it back someday and will pay you more than the open market (that is often zero dollars, making the whole ROFR a meaningless). Since the consumer are often told that this Right of First Refusal clause is because of the huge values associated with their timeshare, and in the cases where the true value is zero, this ROFR mechanism is a total sham to fool consumers at the point of sale, and if they ever do get a sale even for one dollar down the road, the same ROFR clause can be used to delay and frustrate the resale. In either case, it doesn’t mean that the consumer automatically makes money or can sell their timeshare easily, and thus such promises are highly deceptive to consumers.
Timeshare Fraud — Timeshare Scam #3:
Resort Buy-Back programs or Sell your Timeshare
Victims of these misrepresentations report claims of program for a Resort Buyback, or an in-house program for a Timeshare Resale if you ever need to sell your timeshare someday. However, in almost all cases the consumer asks the resort later only to find that the program does not exist (or magically was canceled between the time of their purchase in their call). Whether it was a buy-back or a resale program, the common theme is typically that the owner shall make great profits through the sale of a timeshare down the road. Another common theme is that in almost every consumer report thus far, the promise of these programs and profits are completely fabricated (The Abrams Firm has conducted over 3200 consumer interviews, almost all Pro Bono, and has yet to find a legitimate buy-back program where consumers make the great profits they were promised).
Timeshare Fraud — Timeshare Scam #4:
Rent a Timeshare for a Profit
Sometimes the consumer has said, “NO” for literally hours, but the timeshare sales representatives may push even harder, and make up stories about Timeshare Rental Profits just to get you to sign the contract. Some consumers report that they were not even really interested in any vacation ownership, but were lured into the transaction by promises of yearly income from profits retained over the amount of the annual fees, or in some cases both the annual maintenance fees and their monthly mortgage payments would be paid with the yearly rental income with some extra money that would be sent to the consumer.
Timeshare Fraud — Timeshare Scam #5:
Sell an Unwanted Timeshare for a Profit
In this timeshare sales scam, the consumer already owns a timeshare, and the timeshare sales rep leads the consumer to believe that the Resort will buy [an old and unwanted] a timeshare or sell a timeshare for them making a huge sum of money, in order to trick them into purchasing the new timeshare. In this scheme, the money acquired from the sale of the old timeshare usually is more than the new timeshare (because they gave you such a great, once-in-a-lifetime, deal). So the consumer is told they will profit from the net transaction of the two timeshares, meaning that they will put several thousand dollars in your pocket by just merely purchasing the new timeshare. However, the reality later discovered is that there is no old/existing timeshare purchase by the resort, and often they refer the owner to a Listing Company (which would be a sham if it’s a $0.00 Timeshare) that takes Upfront Fees to Sell a Timeshare and never sells your timeshare or anybody else’s zero-value timeshare, and this is a wildly crazy proposition if there is a Mortgage (market value is $0.00 minus the Mortgage amount). Since the consumer already paid many thousands of dollars for their new timeshare, they are now out that money (often $10-$20,000), as well as the increased annual debt (2 Maintenance Fees) for both of the timeshares.
Timeshare Fraud — Timeshare Scam #6:
HUGE Discounts on airfare, cruises, etc.
Sometimes commissioned timeshare sales reps exaggerate the benefits of the timeshare to entice a sale. The timeshare sales rep might write down a bunch of invented incomes from rentals and future sales, but to increase desirability and make a sale, they show consumers various documents that explain how you can get you cruises, airfare, hotels, car rentals and/or regular hotels for HUGE discounts and often claims that these prices can be 50% or more of what it would usually would cost you on the Internet. However, typically the savings are readily available on the Internet, and with some digging can be even cheaper than the claimed “discounts”.
Timeshare Fraud — Timeshare Scam #7:
Tax Advantages that are bad tax and bad legal advice
This particular sham involves claims of IRS tax benefits for Timeshares. The story goes, through the purchase of a timeshare interest, salespeople often equate the Timeshare to a Home, having the IRS’s Mortgage Interest Deduction that consumers get for their primary residence. They may also even say that you get to write everything off your taxes that you paid for it since day one, in the end when you sell it. There is one big problem however, the promised tax advantages for purchasing a timeshare are often highly inaccurate and deceitful.
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A complementary discussion with a Consumer Protection Attorney will determine if you may have a good case for Timeshare Divestment. If appropriate* (*and we have time availability for your case), you will have all the information you need to decide if you want to take advantage of our legal reprentation… Then it’s all up to you. The good news is, even if you decide to engage the law firm for Timeshare Divestment, your maximum exposure before full performance shall be a $500 fee after services are performed, or pay nothing until closing. Since The Abrams Firm uses all Lawyers for case work, many hours by skilled Timeshare Attorneys are devoted to our procedures, including document drafting and negotiated settlement conferences directly with multimillion and billion-dollar resorts. Only after your Timeshare Divestment is complete, would we earn thousands in our contingent fee.