Timeshare Complaints Rising

According to a Consumer Complaint survey, timeshare owners weredefrauded out of over $14 million last year as a result of fraudulent operations, becoming one of the fastest-growing complaints.

Some complaints arise out of timeshare companies offering “prizes”they never intend to give away while other owners get stuck paying annualmaintenance fees that management companies promised to cover.  Timeshare owners who try and sell their unitsoften run into “resale companies” that run off with upfront fees as well as“resale recovery services” that promise to track down the “resale company” butinstead run off with more upfront fees.

Those living in retirement communities or assisted livingfacilities face similar problems.  Manycommunities tell unit owners they can recover a large amount of their entrancefee if they move out or die. These refunds are often delayed or never paid as retirement communitieswait to fill the vacancy or instead use the vacancy as a “sales model.” 

Scammed consumers should contact their local consumer protectionagency in order to raise awareness of these fraudulent practices.

See Caroline Mayer, Watch Out for Timeshare, Retirement HomeScams, Forbes, June 6, 2013.