Texas Department of Insurance Warns Consumers of Timeshare Scam
Wednesday, January 28, 2015
This week, the Texas Department of Insurance (TDI) issued a warning to consumers regarding a recent timeshare scam. The scam involves unlicensed title insurance companies soliciting owners of timeshare and vacation properties.
The department of insurance recommends that you are cautious of these types of companies, and only work with those that have the proper licensing. These businesses have been approved by the state department and are a much safer option.
In this particular scam, the fraudulent group will contact a timeshare owner and offer to help them sell their timeshare. In some cases, they will even claim that they are representing a buyer. Once the owner is interested, the fraud company will send the owner paperwork from a title company that does not exist. Of course, they ask for payment with the finished paperwork. The money is routed to an account in Mexico and the “title company” is never heard from again.
Commissioner David Mattax said, “These fraudulent schemes typically involve a company that has gone by several different names, but none are licensed by TDI. Timeshare fraud is a serious crime, which can cost consumers thousands of dollars.”
TDI has found that these companies will often use a fake name, phone number, address, and website – all to look legitimate. Therefore, they recommend that you check with the department of insurance where the title company is headquartered to make sure they are licensed in that state and bonded. Verifying this information before you sign any paperwork or make a payment can help you to find a legitimate title company.
If you are working with a timeshare company based in Texas, the TDI is available to answer any questions you have about that organization. To verify if an insurance company is licensed within the state of Texas, call TDI’s Consumer Help Line at 1-800-252-3439. For all other state departments, visit your state’s government website.
If you are still having trouble locating a trustworthy title company, we recommend Timeshare Closing Services, Inc.. Since 1999 Timeshare Closing Services has processed thousands of timeshare closings and remains our trusted source for title work. They are licensed in the state of Florida (where their headquarters is located) under title agency license number: D025486.
