According to an article published by the Springfield, Missouri News-Leader, Festiva timeshare resorts will pay $339,000 to the State of Missouri and to Festiva timeshare owners participating in the lawsuit, for using what was determined to be, “false and misleading sales tactics while selling timeshares at a Branson resort.” The action specifically refers to timeshare sales at the Cabins at Green Mountain near Branson, Missouri, which are owned and marketed by Festiva Resorts, an Ashville, North Carolina company.

Missouri Attorney General Jay Nixon’s office originally brought suit against Festiva timeshares in 2005. In the Attorney General’s news release, issued at that time, the lawsuit alleged that, “Festiva lured consumers by falsely promising to:

• Help them sell other timeshares they owned.
• Help them rent out timeshares they bought from Festiva.
• Help them get good deals on condo rentals in attractive locations.
• Help them get good deals on vacation packages.
• Give refunds to those dissatisfied with their purchase.

Nixon also says Festiva didn’t give consumers enough time to make decisions, creating a sense of urgency and a high-pressure sales environment.”

An unidentified number of consumers will receive a total of just over $324,000 collectively, and the state will receive $15,000 for civil penalties and costs. Of the settlement to consumers, $106,885 will go to customers who complained to the attorney general’s office before June 25, 2005, and use their timeshare at least once. The balance, $217,508, will be distributed to consumers who filed their complaints before June 25 and never used their timeshares.

If a Festiva resort timeshare owner, who is part of this lawsuit, used his timeshare at least one time, he is given the choice to: deed the timeshare unit back to Festiva and receive a partial refund; keep the timeshare and receive a small cash payment; or keep the timeshare and receive a free upgrade from the resort. If the timeshare owners who participated in this lawsuit have never used their timeshare, they have a choice to receive a portion of what they paid Festiva and then return their deed to the company.

Criticisms of Timeshare Sales Practices, but not of Vacations at Festiva Resorts

Remember that this lawsuit deals with timeshare owners who are unhappy with timeshare sales practices at Festiva Resorts, and their perception that promises made were never fulfilled. These timeshare owners are not unhappy with their vacation experience; there are thousands and thousands of very satisfied timeshare owners at Branson’s Cabins at Green Mountain timeshares.

This problem goes back to what we say time and time again at SellMyTimeshareNOW.com…timeshares can be great to own and enjoy and offer wonderful vacation opportunities…if you understand what you are buying and can make a thoughtful buying decision without the pressure of unethical or inappropriate sales tactics.

Back in April, when The Timeshare Authority reported on complaints against Royal Holiday Timeshare, we weren’t the only one talking about the problems and alleged problems at this vacation club company. First, there was the investigation by ABC’s 20/20, and then came all the sources that followed up the 20/20 story. Among the publications covering the topic was TimeSharing Today, a timeshare owners magazine that has been in print since 1991.

To get caught up on the matter, you may want to read our past blog posts on the subject:

• Royal Holiday Timeshare Making the News for All the Wrong Reasons - Part I
• Royal Holiday Timeshare Making the News for All the Wrong Reasons - Part II

A Response from Royal Holiday Club Timeshare Company

In short, some timeshare owners at Royal Holiday felt that the product they bought was not as it was represented to them in the timeshare sales pitch they attended. Louis Laara Gonzalez, Director General of Royal Holiday Club, responded to the matter in general, and specifically to TimeSharing Today’s coverage of the situation, with a letter that included the following…

In his letter, which TimeSharing Today ran as a front cover item, Gonzalez went on to describe Royal Holiday Club as one of the largest and most successful vacation clubs in the world with a 25-year track record of providing outstanding service and vacation experiences. And in the spirit of fairness, the magazine additionally ran an article from a couple who have owned Royal Holiday Club timeshare since 1998 and who had only good things to say about the years they have spent with them.

For all of us involved in timeshare sales, timeshare resales, and timeshare rentals, it is important that we tell timeshare owners about problems, fraud, or scams that may be out there. But it is just as important, that we all also report on when and how these matters are remedied.

The website TypicallySpanish.com is reporting that a German prosecutor is investigating timeshare fraud conducted in the Canary Islands. The case is being prosecuted in Stuttgart, bringing charges against Ivan Boris, a 37-year-old man from Croatia. According to the report, Boris has assumed at least fifteen false identities, in his attempts to defraud victims in the timeshare scam.

Boris allegedly promises the timeshare buyers an investment return and uses falsely notarized documents to back up his promises. The timeshare fraud has involved perhaps as many as 40 victims, who spent nearly three quarters of one million dollars (collectively) for timeshare rights at the Club Monte Anfi.

Timeshare Sales in Spain

As a timeshare buyer, you should understand that timeshare purchased in the Canaries (or in the Balearic Islands) is governed by Spanish Timeshare Law. Click here and you can read a summary of Spanish Timeshare Law from the official source: The Organisation for Timeshare in Europe, the OTE.

Timeshare laws in Europe have lagged behind those in the US and many other parts of the world in providing a structure that properly protects the interests of timeshare owners and timeshare buyers. While it wasn’t for lack of having laws in place, the wording of many of those laws simply permitted loopholes that could be exploited.

In recent years, the OTE has tightened up their laws, targeting £100,000 in 2007 to its “Enforcement Project in Spain,” with plans to increase that spending in 2008 by 30 percent. During the past year, the OTE Enforcement Project in Spain, working with the police, has closed four bogus law firms and seven timeshare resales companies that were running timeshare scams.

Timeshare in Spain is some of the most splendid in the world, but historically, it has also been a hotbed of timeshare fraud. Among timeshares in the Canary Islands, Tenerife in particular has seen more than its share of timeshare scams. The OTE estimates that nearly half a million Brits lose over a billion pounds each year to timeshare fraud in the form of Discount Travel Membership Clubs.

Buy Timeshare Safely

When it comes to buying timeshares, the rule is the same worldwide: Don’t rush. Don’t make a buying decision on the spot and don’t make your decision to buy under pressure. If you are not dealing with a worldwide brand that you know, (Marriott timeshare, Hyatt vacation club timeshare, Hilton timeshare, etc.) Take the time to find out whom you are dealing with, and not just based on their word, but by contacting organizations such as OTE and asking them about a timeshare company’s reputation.

If a timeshare sales person pressures you with a “buy now or this price goes away” approach—walk away. You can always buy timeshare at even better prices than the developer can offer by buying timeshare resales, where you never have to face the high pressure sales pitch, and can deal directly with the current timeshare owner.

You have choices and you have time - take advantage of them.

KCRA 3 News that broadcasts in Sacramento and Stockton, ran an interesting article, warning people about a problematic timeshare deal from Holiday Travel of America.

It seems that the company offers two round-trip coach air tickets and two nights in economy accommodations in Hawaii, if you sit through their timeshare sales presentation. Representatives of the news station tried it, and did in fact receive their certificate good for their airfares and hotel stay.

The certificate from the timeshare company came with the stipulation that it had to be used within 45 days or it would be void. A letter requesting travel dates, restricted to travel on Tuesdays through Thursdays only, plus the payment of a hotel and airline tax deposit followed it.

Too Many Complaints about this Timeshare Sales Company

Other people, who had been through the timeshare sales presentation with Holiday Travel of America, voiced complaints with the process. Many had trouble getting travel dates scheduled by the timeshare company. No matter what two days they picked, even within their limited choices, the answer always came back that those days were unavailable.

The KCRA crew had six different travel dates requested before they called the timeshare company to complain. They were finally offered dates in September, but were told they had to book on the spot, fax a written confirmation of travel with a credit card number, and agree to having a nonrefundable charge of between $75 and $100 placed on their credit cards.

KCRA’s article about the scam said, “The Better Business Bureau of San Diego said other people have had trouble, too: Holiday Travel of America has an unsatisfactory record because of a pattern of complaints.”

Finding the Good Deals in Timeshare Sales and Timeshare Resales

Good job of investigative reporting by KCRA. I wonder, if the current tough economy will bring on a rash of opportunistic vultures, who prey on people’s desire to enjoy a little vacation time despite budgets being tight. Whatever the situation, the advice is always the same. If it sounds too good to be true, it is. There are plenty of good deals available in timeshare resales and timeshare rentals, and you don’t have to sit through a timeshare sales pitch in order to enjoy them.

The March 31 Timeshare Owners Blog ran a post titled, They Wouldn’t Have this Problem if They’d Bought Timeshare Resales. We were looking at a situation that occurred when a timeshare developer presold timeshare units, in many cases without recording deeds, but failed to build the timeshare resort. In another instance, the resort is built and operational, but this same developer and his partner failed to pay bills on the property or to give owners their share of the timeshare rental money.

Robert Reposa of Hingham, MA, the property owner, now owes thousands of dollars in unpaid state and federal taxes, not to mention the restitution he owes to timeshare buyers at the two properties: the Navigator Beach Club and Beachside Village in Falmouth.

The MA Attorney General has 50 complaints from timeshare owners who paid for, but did not receive, deeds for the unfinished timeshare units at the Navigator Club. On Tuesday, the Navigator Beach Club was sold at auction to a man who says he does not intend to use it as a timeshare resort. What happens next is just a wait and see situation for timeshare buyers, some who are out as much as $50,000.

Contact Information Regarding the Troubled Timeshare Deal

The Timeshare Owners Blog will continue to provide information about this timeshare deal gone wrong as it becomes available, as well as offering good advice for avoiding this problem when you buy timeshare. Here is a list of phone numbers and contact information that may be helpful if you have questions about the property or the ongoing investigation:

Massachusetts Attorney General.
(617)-727-8400

Consumer Complaint Form

Det. Sgt. Ben Wunderlich (Working the case for the Dennisport Police and coordinating with the Attorney General’s Office and the District Attorney’s Office)
(774) 352-1433

Robert Reposa
(781) 264-5296

George Fintonis
(508) 398-9153
george@capecodoceanresorts.com

Website for victims and others trying to learn more about this situation:
http://www.navigatorbeachclub.org/

This is an interesting link to the actual property auction from the ABC affiliate in Boston, WCVB:
http://www.thebostonchannel.com/video/15827067/index.html

Last November, the Timeshare Owners Blog reported on the arrest of Dennis Drummond. In the summer of 2007, Drummond was picked up on a fugitive warrant in North Carolina and was then extradited to Massachusetts, where he faced multiple counts of larceny. Dennis Drummond has faced charges in MA in 1990, 2003, and 2005, each time on charges related to timeshare fraud.

The former resident of Plymouth, Drummond was accused of a timeshare scam involving more than 80 people. According to police, Drummond would set up real estate offices and offer (for a fee) to exchange people’s timeshare units for better weeks or vacations at better timeshare resorts.

Last Wednesday, Drummond pleaded guilty to three charges of larceny over $250; larceny over $250 involving a person over the age of 60; and larceny over $250 in a single scam. Drummond was sentenced to 2 and a half years in jail, but will only serve 10 more months. He is also required to make restitution to his victims.

Elderly Can Be Targeted in Timeshare Scams

One particularly sad account in this timeshare scam is the story of the Doucettes. Janice Doucette told the court that in 2002, she and her husband gave Drummond $25,000 and the deed for two of their three timeshare weeks, but that they never received anything in return. As Doucette explained, her husband Charles is now 79 years of age and receiving kidney dialysis in a nursing home. Doucette blames Drummond for ruining the golden years of her marriage.

While Drummond’s sentence may seem light, if he fails to make restitution, or is arrested again, he could then be sentenced to up to five years in state prison.

For more information on ways to safely buy, rent or sell timeshare, visit Sell My Timeshare NOW.

When Tom Corbin and Steve Bodack bought timeshare units at the Navigator Beach Club in Dennisport, Massachusetts, they thought they were making vacation planning simple. Instead, they bought into a huge headache.

In May of 2006, Corbin paid $16,000, (according to a report published online by TheBostonChannel.com) for the right to vacation one week per year in timeshare unit number 6 at the Navigator Beach Club. Bodack paid $4300 for his timeshare and Ernie Morin paid $4500 for his. Each of the three men is still waiting.

It now looks like it is going to be a long wait.

Not only is construction on the Navigator Beach Club timeshare unfinished, but the resort had been scheduled for auction for nonpayment of the $2.2 million mortgage, just two days from now. Instead, the developer, Robert Reposa of Hingham, caught a break; the lender has agreed to give him another two weeks to find a buyer for the partially built timeshare resort property.

The Legalities of Buying Timeshare

According to Kathleen O’Donnell, a property law expert, Corbin, Bodack, Morin, and an undisclosed number of others have, “…bought something that doesn’t exist.”

Massachusetts law requires developers to form entities and file deeds. Neither of which was done in the case of the Navigator Beach Club timeshare resort. Simply put, where there is no entity to sell timeshare, any “timeshares” sold just don’t exist.

The next step is likely to be that the Massachusetts Attorney General will get involved. Whether or not the timeshare buyers ever see their money again is anybody’s guess at this point.

Don’t Gamble; Buy Timeshare Resales Instead

There are many situations in which timeshare developers legitimately sell pre-construction timeshare units. And as the situation at Navigator Beach Club timeshare resort proves, there are times when they don’t.

The simplest advice to avoid falling victim of a timeshare scam, is to know what you are buying. You can do this by thoroughly investigating the business stability and track record of a timeshare developer before you sign on the dotted line or you can buy timeshare at a resort that is already built, already operating, and already proven.

Timeshare resales can take a lot of the guesswork out of buying vacation ownership property. Not only can you visit an operational timeshare resort and decide for yourself if you are spending your money wisely, but you can talk to others at the resort and online at Sell My Timeshare NOW’s Timeshare Owners Forum. Find out what current owners like and what they dislike about their timeshare resort.

Vacations are supposed to provide you rest and relaxation - freedom from worry, which might be the best reason ever to buy right-priced, already proven timeshare resales.

I’ve written about this before, but in light of Sell My Timeshare NOW’s press release this week supporting more consumer education for people who buy timeshare resales or sell timeshare resales, it never hurts to pass on this message again.

The “Nigerian scam,” also called the “419 scam,” never seems to go away, although its sources have spread far beyond Nigeria and touched many areas besides timeshare sales. When it comes to selling timeshare, here’s basically how the Nigerian scam works:

The timeshare owner receives a letter, email, or phone call saying that someone wants to purchase his timeshare unit. The phony timeshare buyer, or his phony representative, then sends the timeshare owner a check for more than the purchase price of the timeshare unit, a check that the elated owner deposits. If the timeshare owner makes the mistake of promptly sending to the phony buyer the executed deed to his timeshare and the difference between the check sent and the sales price, then the timeshare owner has lost both his timeshare and the money he or she sent back to the buyer.

Even though many people have heard about this timeshare scam, they get bitten by it because the check they receive from the phony timeshare buyer usually looks so authentic that even the timeshare owner’s bank may initially accept it as either a valid bank check or credit union draft. Despite the fact that your bank accepts the buyers check and at first credits it into your account, days or even weeks later, when the counterfeit check works its way back to the issuing bank, its fraudulence will be discovered.

Why People Still Fall for a Timeshare Scam

As old as this timeshare scam is, people still get caught by it. While dozens, maybe hundreds, of bogus deals may cross your desk, never doubt the ability of one lone criminal to craft an approach that sounds so sincere and so genuine, that even savvy skeptics fall for it. Letterheads that look like they come from a timeshare resales company, from eBay, or another seemingly authentic source may trick you into believing that you have a genuine offer to buy timeshare in your hands.

Another variation on this timeshare scam is for you to be contacted by someone who says he or she has a guaranteed buyer for your timeshare weeks or timeshare unit, and asks you to send a check - say for $200 - to cover the transfer costs. Mail that check, and guess what happens next?

Nothing. Absolutely nothing.

You might as well have taken two one-hundred dollar bills and flushed them away. The loss is not as great this way, but it is still money gone with nothing to show for it.

Reliable Ways to Sell Timeshare

The message here is not a warning against paying fees upfront to sell timeshare, despite what some voices in the timeshare industry try to preach. There are many situations in which it makes good sense to pay someone to help you advertise and market your timeshare for sale. Just make sure you first confirm that the timeshare company you are paying has a proven record of successfully advertising timeshare resales and timeshare rentals in a global marketplace.

More than 1.7 million people visit Sell My Timeshare NOW’s website each month. In 2007, Sell My Timeshare NOW presented over $274 million in offers to buy timeshare or rent timeshare advertised on its website.

Last week, Florida’s Attorney General, Bill McCollum increased his focus on consumer education specifically targeting scams in timeshare sales.

It makes sense that McCollum would have a particular interest in timeshare issues since more timeshare resorts are located in Orlando than in any other city, and more timeshare resorts located in the state of Florida than any other US location. McCollum’s office recommends that people who want to sell timeshare use either, a licensed real estate broker or they sell by owner — and both are excellent suggestions.

Sell Timeshare Through a Timeshare Broker

A licensed real estate broker, like Sell My Timeshare NOW’s sister company, Timeshare Hot Deal, is an excellent choice for some people who are ready to sell timeshare. A timeshare broker gives you the benefit of a commission-motivated sales professional and the plus of paying no fees until your timeshare unit or timeshare weeks actually sell.

Sell Timeshare By Owner

Selling timeshare by-owner is also a good option. By owner selling lets you control every detail of your timeshare resale; and it is the way many of the timeshare sellers at Sell My Timeshare NOW handle their timeshare resales transaction. Sell My Timeshare NOW advertises and markets available timeshare real estate, attracting over 1.7 million visitors per month to our website. In 2007, more than $274 million in offers to buy timeshare or rent timeshare were made on properties in our inventory.

But Attorney General Bill McCollum’s message for more consumer education is important! Before you buy, rent, or sell timeshare, do your research to ensure that whomever you hire to help you is reputable and has a proven track record in the timeshare resales industry.

To read more about the importance of consumer education for people who want to buy timeshare, sell timeshare or rent timeshare, click here to read Sell My Timeshare NOW’s press release.

State of Missouri Attorney General Jay Nixon has filed a lawsuit in Taney County Circuit Court against Branson log Homes, a company which does business as Executive Timbers Resort and Golf Course. The lawsuit alleges that the southwest Missouri company used deceptive practices, fraud, and misrepresentation in the sale an advertisement of timeshare memberships, timeshare plans, and timeshare property.

Details of the Alleged Timeshare Fraud

According to the Attorney General’s Office, consumers who contacted them complained that the timeshare company:

• Failed to provide required notice to them of their right to cancel contracts.
• Failed to allow consumers to cancel their contracts within five days after they purchased a timeshare membership.
• Billed timeshare buyers for maintenance or upkeep fees on property they were trading in, after neglecting to inform consumers that they would be required to pay such fees.
• Did not reimburse consumers for maintenance fees after telling them those fees would be reimbursed.
• Promised that consumers who purchases a timeshare membership, plan, or property from them would receive certain benefits , but then didn’t make good on those promises, and
• Did not disclose the fact that it was already over $30,000 in debt to the travel club that it was using to provide travel club memberships to the consumers.

What To Do If You Are a Victim of a Timeshare Scam

The Missouri Attorney General’s investigation has revealed that most victims of this timeshare scam have lost between $7,000 and $17,000 each, but some people may have lost more. If you want more information about this problem, contact the Office of the Attorney General at cphillips@phillipsgarcia.com or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

If you believe you are a victim of timeshare fraud in another US state, contact that state’s office of Consumer Protection or the Attorney General. Another way to learn more about protecting yourself against timeshare fraud is to talk with other timeshare owners at online forums, such as Sell My Timeshare NOW’s Timeshare Owners Forum.

And to learn more about safe and cost effective ways to buy timeshare, visit the website for Sell My Timeshare NOW.