Timeshare Scam

The Illinois Attorney General’s Office is cracking down on unsolicited timeshare messages. According to a press release issued on January 22, 2007, by Lisa Madigan, Illinois Attorney General, the State of Illinois has filed a lawsuit in Federal Court against several timeshare resellers. Those mentioned in the lawsuit were: C & C Global Enterprises, LLC; resortsellers.com; and Nella Pundit and Charles Rossop, the operators of webuyresorts.com and resortsellers.com.

The lawsuit alleges that beginning on or about November 3, 2006, “Illinois residents began receiving unsolicited text messages alerting them that, ‘We have someone interested in buying or renting your Time Share,’ and directing the recipient to logon to webuyresorts.com or resortsellers.com for more information.”

The Illinois Consumer Protection Division received 66 written complaints and an additional 190 telephone complaints from consumers regarding these unsolicited text messages. The sending of unsolicited text messages violates the federal Telephone Consumer Protection Act and in the state of Illinois, the State Consumer Fraud and Deceptive Business Practices Act. According to Attorney General Madigan, many of the consumers who complained to her office stated that they did not even own a timeshare.

The lawsuit also alleges that the defendants accepted payment for timeshare listing services and then fail to provide the listing, proven by the fact that the company did not ask the potential seller such pertinent information as the address of the timeshare or the unit number.

In a separate but related case, Cingular Wireless filed lawsuits in the US District Court in Atlanta, Georgia, that included charges against the operators of webuyresorts.com and resortsellers.com alleging that they transmitted unauthorized, deceptive, and unsolicited commercial text messages to Cingular customers with wireless phones. The messages, sent in October 2006, were all related to the selling or buying of timeshares.

If you believe you have been a victim of cell phone spamming by a timeshare company or any other industry, contact the Office of the Attorney General for the state in which you reside. And if you have questions about a timeshare company, timeshare reseller, timeshare by-owner listing service, or timeshare broker, check both the Better Business Bureau and the State Attorney General’s Office where the company is located to verify that there are few or no complaints against the company, and any complaints that do exist have been resolved quickly.

At SellMyTimeshareNOW, we hear a lot of questions about free timeshare vacations. And as all of us in colder climates begin to feel winter’s one-two punch, it is only natural that thoughts turn to white sand beaches, tall cool drinks beside a sparkling blue pool and the sound of balmy breezes rustling through the palm trees.

Which inspires many people to wonder if “free” timeshare vacations are worth it. My answer is a qualified “maybe.”

Most of us have had the experience of receiving a brochure about a timeshare promotion or a sales call from a timeshare company promising us three or four days at a luxurious resort. Are these legitimate? Will you really get a free timeshare vacation?

Let’s start with what we all already know: nothing in life is ever truly free. You may be offered free lodging, but more than likely, you will be offered discounted accommodations. Say a $200-a-night room for only $75. And occasionally the timeshare promotion actually will be a free room—just not necessarily a room at one of the luxury resorts where the timeshare company wants you to buy.

Before you pack your swim trunks and your snorkeling gear, here are some things to watch out for when it comes to a “free” timeshare vacation:

• Even if your lodging actually is free, you may still be expected to pay taxes on your accommodations and perhaps taxes on the full value of the room despite the fact that you are paying a discounted rate. Hotel or room taxes (sometimes called tourist taxes) added on top of state sales taxes can be more than 20 percent of the room’s nightly rate. You could be looking at $20-$30 per night, for every night you stay at the resort.
• Many free timeshare deals will still require you to provide your credit card for incidental expenses such as long distance phone use. Others will require you provide them a deposit, which they will not typically refund if you cancel. However, they may permit you to transfer your deposit to a future stay, provided you canceled in advance of your scheduled vacation date.
• No free timeshare vacation will let you off the hook without you and your spouse (if you are married) attending a timeshare sales presentation together. The presentation may last a few hours or it may take up four to six hours of one day of your vacation. During the sales presentation, the timeshare agent will most likely do everything he or she can to convince you to buy a timeshare—right then—on the spot!
• Your free timeshare vacation may or may not include transportation to the resort. Also your lodging may be at the resort where you will be buying, but it could also be at a less-than-desirable hotel or motel near the resort.

A free timeshare vacation can be a great way to enjoy a discounted holiday and at the same time learn a little more about a timeshare condo that interests you. On the other hand, it can be an unpleasant experience, that not only costs you more than you meant to spend on your vacation, but costs you dearly if you succumb to a timeshare developer’s pitch for a new timeshare at an inflated price. Do your research before you agree to go. And remember, you are under no obligation to buy anything from the resort!

The smart shopper’s way to buy timeshare is to buy it resale, from the owner who is a regular person just like you, not someone who is shelling out freebies to reel you in. Enjoy the freebies a resort offers you, investigate the resort, decide whether you and your family would like to vacation there, and then buy at the best price. Another option which may even be easier than “working” a “free” deal, is to rent timeshare at a resort you are interested in. This gives you much more control and freedom during your vacation.

The Illinois Securities Department says they are acting on a complaint filed by Unite Here Local 1, the labor union that represents some Chicago hotel workers.

According to an article recently published online by Chicago Business (www.chicagobusiness.com), Tanya Solov, a spokesperson for the state regulatory agency, says, “We’ve looked at a number of these offerings…we haven’t taken any action, but we do have open inquiries.”

Solov’s comments referred specifically to the Shangri-La Hotel, owned by Teng & Associates, a major Chicago-based developer. The union alleges that the development company gave printed marketing materials that include monthly rental income projections for the condotel rooms to potential buyers of the condotel units.

Condo-hotels or condotels are a fast-growing concept in vacation ownership. They allow individuals to purchase a hotel room or suite, often bought during the pre-development phase. The unit is then available to the individual owner for their personal vacation and travel use, but can also be rented through the hotel in the same way hotel guests would rent any other room or suite.

Because the individual owner stands to receive roughly 40 to 50 percent of the room rental revenue, many purchasers of condotel units buy hoping to see a financial return for their expenditure. And while such prospects look good, the individual owner is also responsible for all on-going maintenance, taxes and other costs associated with home ownership.

The Securities and Exchange Commission views the sale of condotel units the same way as they view the sale of timeshare vacation units. Because these types of sales do not comply with the state and federal registration and disclosure requirements governing the sale of securities, no seller can legally represent them as a purchase to be made for investment potential.

Buy timeshare vacation property and condotel units as an “investment” in a lifetime of luxury vacations and a lifestyle committed to regular relaxation and rest. Invest in yourself and your own well-being. And as over-worked as many of us feel these days, that type of “investment” just might turn out to be far more valuable than any other you will ever make.

Don’t get caught! Indonesians are only one group of tourists in Singapore who have been falling victim to unscrupulous timeshare companies. Chinese and Bruneian tourists are also frequent targets.

As one timeshare vacation agent was quoted by The Electric New Paper News of Singapore as saying, “As I speak Bahasa Indonesia, it’s easier for me to pitch my sales to fellow Indonesians. I also gained their trust easily as I’m Indonesian…But after one or two months on the job, I started receiving complaints from my customers…I felt guilty to have sold them something that they can’t really use.”

A frequent tactic of an unethical Singapore timeshare deal involves charging consumers between $30,000 and $50,000 for lifetime timeshare vacation memberships. For this expenditure, the timeshare buyer gets one week of timeshare vacation annually. Not only is this timeshare deal a bit pricey, but it includes the caveat that vacationers schedule their holidays one and sometimes even two years in advance.

In 2005, CASE received over 2500 complaints against timeshare companies in Singapore. This past October, the association announced that it is cutting the grace period for a timeshare company to clean up its bad practices from three months to one.

These get-the-sale-at-all-cost practices certainly damage the “name” of timesharing, but you can buy timeshare or sell timeshare successfully and easily online. Just check out SellMyTimeshareNOW.com. You’ll be amazed at the number of timeshare connections made around the world through that site.

What are some of your experiences? What tips can you give for buying, selling and renting timeshares? How does timesharing impact your vacationing? Many people say it gives them a chance to spend more quality time with their families, while others say it provides the perfect get-away. Post a comment and let us know!