The FTC Urges Scam Victims To Report It.

The FTC has released a video urging the public to report scams if they have been a victim. The video breaks down how the FTC works, How they stop scammers, And why Your input is so important.

The FTC is network of different information from different law enforcement groups (such as the SEC, FBI, and even the post office). These separate government entities report information to each other in a big law enforcement hub to build cases against the scammers and eventually go after them. This is how the FTC gains the information to stop the scammer, but where do you come in?

Any time that you think you spot a scam, you need to tell your story. This is what the FTC says to do. You should tell another person. There is a chance that they have also seen the scam or know about it. Sometimes speaking outload will help you realize that they might not be legit. You could also search up the company name followed by the word “scam,” and see what comes up. If you are sure that the company you have been talking to is a scam, then you should report them to the FTC. This allows them to start gaining evidence on the scam and move forward with Law Enforcement and legal action.

While the FTCs video is a helpful reminder of how to spot scams, it may be hard for some to realize that it is a scam until it is too late. Scammers often target older people, and often will claim that there is limited time, or they have to act now to save big or to avoid being charged ridiculous fees; however, there is usually no rush. You have the right to speak with an Attorney, or even family members before sending your money to anyone. Never, give information out on the phone. No matter how pushy, mean, or rude the other person is, you have the right to think and speak with others.

It’s easy to think that you may not be a victim of scammers, or even timeshare exit scams, but scamming has become a multibillion-dollar industry. Take this example, The Wisconsin Attorney General is going after one Timeshare Aftermarket company for stealing 90 million dollars. That’s 90 million dollars for just one company, operating in just one state, and only targeting timeshare owners. Scammers are everywhere, our only way to fight back is to report them to law enforcement and regulatory agencies.

The video the FTC put out is a great overview of the solution to the scammer problem. Awareness and education are the best way to keep people from getting tricked out of their money. We urge you to do your part as well, share the video with your elder family members, or people you know who are trying to get out of a Timeshare.

Tags

Post navigation

Comments are closed

Wisconsin Attorney General Targeting Timeshare Exit scammers for pocketing 90 million.

The FTC has released an article detailing a timeshare exit scheme that is in the crosser hairs of Wisconsin’s attorney general. They filed a suit against a company called “Consumer Law Protection,” and their related companies, owners and operators. The scam targeted the Elderly and was able to pocket over 90 million dollars from its victims.

This scam used high-pressure sales tactics as well as multiple different company names to hide their actions. The Scammers would force elderly victims to hand over thousands of dollars for timeshare services they never intended to deliver.

The scammers operated under many names, including “Square one,” “Consumer Law Protection,” “Premier Reservations Group,” “Resort Transfer Group,” and “Timeshare Help Source.” They used in-person seminars and direct mail to put pressure on senior citizens to make them pay for bogus services.

The FTC also reported on the harm done to the victims of these scammers.

As of now, the FTC wants to state that this is an ongoing case with “reason to believe” that these people are doing something illegal. Ultimately, they are innocent until proven guilty by a court.

Desperate people often turn to these Scammers, and it is hard to know what to look for, however, the FTC also just released an article on how to look out for these scammers. Their tips are listed below.

While we applaud the action taken by the Wisconsin attorney general, It is important to remember that these scams are common in the other 49 states across the country. Rather than celebrate this as a victory, it should be a warning to us all on the importance of doing the research before handing your money over for a claimed timeshare cancelation that in reality is just Con-Artists (often former timeshare salespeople) that are trying to steal your money.

Tags

Post navigation

Post navigation

Comments are closed

FBI- Fraudsters

FBI- Fraudsters are Targeting Timeshare Owners

The SEC published a warning from the FBI. Scammers are targeting owners of timeshares in Mexico. The scammers pretend they are working on behalf of a brokerage firm, travel agency, or even an escrow agent. Scammers claim they will buy your timeshare or claim you are entitled to stock in connection with your timeshare. The scammers will then say you must pay a fee or tax to put the money in your name. They will take your money but do nothing. When you start getting suspicious, they will switch up their act. Then another salesperson you haven’t met will pretend to be part of the government and claim to help recover your money for another fee.

This is a form of a scam called an “advance-fee scam.” The scam works by telling the victim they are entitled to money or stock, but they must pay a fee or tax to get it. Fraudsters running this scam often target investors who have previously lost money in bad investments. This is probably why they have begun targeting timeshare owners. Timeshares are often advertised as an investment. In truth, they have a bank zero value. To learn more about the lies of timeshares, Click here. Lack of knowledge is not the only factor for why these scams are so prevalent, it is also due to the demographics of timeshare owners.

These scams are so effective because timeshares and scammers often target the same group, Elders. According to an article by PubMed Central, one of every 18 Elders will be a victim of fraud. This is due to having a greater susceptibility to scams. The prime demographic for timeshares is Elders making them a perfect target for these types of advance-fee scams. The study also says there is no knowledge of the scope of this issue. Meaning it will be difficult to coordinate efforts toward the prevention of these scams. In the meantime, The SEC has a list of tactics for dealing with these kinds of scammers.

We would also like to add a few things to the SEC’s list:

For more information, Read the SEC article here. If you have been a victim of this scam, you should file a complaint with the FBI’s Internet Crime Complaint Center.

The SEC’s warning is not to be taken lightly. If you get an unsolicited offer for your timeshare (abroad or in the US), you should be wary of the proposition. Follow the SEC guidelines and NEVER hand over money before doing your research.

Tags

Post navigation

Post navigation

Comments are closed

The Big Lie: a Timeshare is NOT a Hedge Against Inflation

With inflation on the rise, we are seeing a worrying number of articles written to give the impression that timeshares are a “hedge over” or “beating” inflation. This is categorically not true.

The basis of their argument is that with rising prices of hotel rooms, timeshare owners are getting savings on their timeshare when compared to booking costs today. This argument does sound appealing; however, the truth is more complicated than they lead you to believe. These articles claim that the maintenance fees will be less in a year then the actual cost getting a hotel room. These articles frequently will ignore the upfront cost as a factor and, booking restrictions mean sometimes substandard use or no use on a given year. The most important omission, is that maintenance fees usually also rise with inflation, making their whole point moot anyways.

The truth of all these articles is simple, the timeshare aftermarket companies are using Inflation as a tool for deceptive marketing. While most of these articles are coming out on 3^rd party websites, the hotels are not suggesting otherwise. An article from skift.com claims Marriott executives are saying that timeshares are more attractive during inflation we are experiencing. This is due to the false promise of locking in the price of the timeshare. They want you to believe that a timeshare is a safe investment. In reality, it is the opposite of that.

We already have covered this topic on our blog, but we will summarize it here. On average timeshare owners do not get any special perks compared to the normal public. In some cases, you will end up paying between 400%-1000% MORE than someone who books online. The maintenance fees start out affordable, but every year will get more and more expensive. Therefore, a timeshare is not a good investment, you are paying to have debt. This debt will continue for your entire life, meanwhile (unless you keep upgrading)  you may have to book up to 11 months in advance just to use the thing.

Timeshares are not an investment, and you should not be misled into believing that they are. At best, you may book a fairly good room. At worst (and most commonly), you are stuck paying maintenance fees on a future room that you must book 11 months in advance and pay way more than the actual booking costs online.  In a seminal study by the Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP), reporting on the FTC study, only 3.3 percent of timeshare owners were able to sell in a 20 year period. The truth is, once you sign a timeshare contract, there is a billion-dollar industry that tries to convince you that you made the right choice. Once you find out the truth, there is another million-dollar industry of scammers promising to help you sell or cancel your timeshare.  We recommend finding verified legal counsel that will advise you on your options. Furthermore, we recommend never signing a contract for any timeshare before consulting with your attorney.

Tags

Post navigation

Post navigation

Comments are closed

Booking Companies: How Neutral Are They?

When one purchases a Timeshare, they are often directed by the resort to a booking company to properly make use of it. Companies like RCI and Interval International are seen as neutral parties, working through membership programs and providing access to resorts all around the world. But how neutral are they? Who owns them, and why?

What is RCI?

RCI, formerly known as Resorts Condominiums International, is a vacation exchange membership program. By purchasing a subscription for their membership program, the consumer is provided the ability to find, price, and book usage for their timeshares. The services offered by RCI, or its main competitor, Interval International, are usually requested by the resorts in order to manage and book timeshares.

In theory, it sounds reasonable, so what’s the catch? What often goes unmentioned is how RCI operates. They claim to be independent from the resorts, offering their services on an unbiased network. However, that is very far from the truth. RCI is a subsidiary company underneath Wyndham, the largest Timeshare conglomerate in the world. And while RCI itself is supposedly based in New Jersey, their corporate headquarters are located in Orlando, Florida—within the same office building as Wyndham’s Corporate Headquarters, at 6277 Sea Harbor Drive, Orlando, Florida.

Further dispelling the illusion of neutrality is Wyndham’s central booking ‘reservation system’ that most consumers must use, per the contract of their timeshares. This small portion of the contract dictates that as part of a ‘multisite timeshare plan’, they are required to go through RCI in order to manage and utilize the room. This ‘multisite timeshare plan’ will almost always include a “nonspecific time-share interest,” which is the highly restrictive and ever-changing system they refer to when offering accommodations through one or more reservation company—Such as RCI or Interval International—but includes no specific right or verbiage to use any particular accommodations. Meaning that RCI retains the right to withhold any services, benefits, or usage of the Timeshare by the owner.

How Wyndham Uses RCI

Wyndham’s purpose is to develop and sell vacation Timeshares with grandiose promises, complimentary services, and alleged value that ultimately are attributed to ‘points’ in the ‘points system’ of a supposedly neutral booking company. Since these points do not correlate to a real monetary value, nor to any deed of ownership, RCI imposes a variety of restrictions upon the usage of these points, intended to frustrate the consumer into ‘upgrading’ their membership. These restrictions can be both deceptively benign, or outright severe in impact, as no two contracts or booking rules on a given day are the same. The ‘points’ could be extremely undervalued by RCI, or perhaps the required points for a particular package or benefit could have simply increased over night without the owner’s knowledge. Worse still, owners are typically, and artificially, forced to book their stay 11 months in advance, only to still be barred from the usage of their timeshare due to ‘a lack of availability,’ resulting in an entire year of paying for their Timeshare without staying there for even an hour.

As additional costs, fees, and services are silently added, the owner ends up paying an average of about 1000-3000% more to book their Timeshares than what the general public would pay to simply book the room online. In particularly egregious cases, sometimes the owner may find themselves simply unable to book their room at all, while a different consumer can book the exact room in the resort online with little issue—Booked today and stayed the same night without obtuse restrictions.

See our next article for more information regarding upgrades, and how RCI uses booking procedures to make ‘secret profits’ for its parent organization and depriving consumers of their due usage.

To learn more about the Timeshare industry and how it functions, visit, https://thetimesharelawfirm.com

To schedule a consultation, contact The Timeshare Law Firm at, 321-224-1111

Tags

Post navigation

Post navigation

Comments are closed

Tricks of the Trade: Clarifying the Timeshare Sales Pitch

The Timeshare Industry thrives on deception, misdirection, and overwhelming pressure, they entrap consumers into high-pressure sales presentations. It’s imperative then for consumers to be informed of these situations, as to best prepare and avoid them if possible.

A recent story coming out of Las Vegas, Nevada, first reported by Channel 8 news, speaks of a family going through this process. They had purchased a timeshare in 1998, under Diamond Resorts. For a little over 20 years, they had few issues, however, their problems began in 2021. On advisement from the resort, they decided to upgrade their timeshare package. But instead of a better deal, they were dealt an extreme monthly fee and heavy restrictions on the use of their timeshare, realizing then that they were charged more per month than it was worth annually. What happened between then and now?

The confusion first began not in the conference room, but completely above the heads of consumers. Diamond Resorts was bought by Hilton Grand Vacations in August, 2021. Diamond and Hilton are one and the same, Diamond Resorts now operates as a Subsidiary company, a brand among countless others managed under Hilton. Instead of continuing to honor the agreement made under their old name, they were misled into signing a completely different contract. It was after the deal was struck that they realized the agreement wasn’t even a deeded timeshare, but membership to a ‘Vacation Club’.

Timeshares Vs. Vacation Clubs

A timeshare by traditional definition used to be a deeded property that you and up to 51 other weekly owners purchased and maintained collectively. Sadly, these true Timeshares are a rarity, and what the Resorts sell to consumers are merely club memberships. They may claim to have a deed attached to them with a listed room number, resort name, and week number, but these are often Sham Deeds that only entitle you to the use of arbitrary ‘points’, not actual ownership of the property. These ‘Point-systems’ do not correlate to any monetary value, and the usage of these points is determined by the resorts and their booking companies on a whim, rather than any contractual agreement. That means all verbally promised usage rights don’t exist in the agreement.

Fortunately for the family, they caught on to what was happening. They opted for a legal route, and aimed to take Diamond Resorts to court. Their investigative team came across evidence of fraud on Diamond’s part, and Diamond Resorts agreed to settle the issue.

A licensed attorney can help you break from your timeshare contract, even when the situation seems too insurmountable.

To learn more, visit https://thetimesharelawfirm.com/

To schedule a consultation, contact The Timeshare Law Firm at: 321-224-1111

Tags

Post navigation

Post navigation

Comments are closed

Successor Liability

One of the main lines of thought that goes into purchasing a Timeshare is for genuine

Successor Liability

One of the main lines of thought that goes into purchasing a Timeshare is for genuine private use, a family wants a lovely resort they can plan an annual vacation around, bring the kids, and enjoy the week without a hassle. The Timeshare industry however, understands its consumers well, and often employs deceptive tactics in their contacts, none of which are more concerning than successor liability clauses. The idea of passing on your ownership of the resort to your children may be sound on paper, but in reality, creates a pitfall of debt that is passed on to your descendants.

What is Successor Liability?

In short, the clause exists to ensure that when the original owner passes, the contract is not voided. It is usually sold as the transfer of the property by means of will to your children, so that the property remains in the family. What is never mentioned is that the inheritor would also inherit the debt, maintenance fees, and any other charges the original owner was unable to pay off before they passed.

When included as part of a Will, the descendants have the option to claim or reject the Timeshare, however, they would be still be forced by successorship to pay for the yearly maintenance fees, as well as any unsettled debt, as per the original contract. This debt is accrued through no accord of their own, and even if the mortgage is completely paid off by the original owner, they cannot renegotiate the fees they have inherited, in fact, these fees usually just keep climbing.

Where Does this Debt Come From?

The crux of the issue is that almost all Timeshares have no market value, and therefore, no inherited value. They are sold for only what the contract deems they are worth on an individual basis. Thus, an inherited Timeshare cannot generate value, only detract from it as rates are raised and yearly maintenance fees accrue.

How to Proceed

As a Timeshare owner, you must consider the far-reaching consequences of a contract, especially when it cannot be dissolved even through death. A lawyer may be able to force the resort directly to break the contract in the proper circumstances. And the state of jurisdiction may have laws granting consumer protection against these types of predatory contracts, a far safer and less expensive route. Regardless of how one chooses to pursue it, always consider first speaking with a licensed lawyer experienced with Timeshare divestment to handle your case.

If you wish to know more, please visit, https://thetimesharelawfirm.com/

For a consultation, contact The Timeshare Law Firm at, 1-(360)-918-8169

Tags

Post navigation

Post navigation

Comments are closed

Holiday Inn timeshare owners to file a lawsuit in Sevier County, Gatlinburg,

Holiday Inn timeshare owners to file a lawsuit in Sevier County, Gatlinburg, Tennessee

Holiday Inn timeshare owners to file a lawsuit to be released from timeshare contracts.

The Timeshare Law Firm (since 2001) has filed lawsuits against Holiday Inn Club Vacations on behalf of victimized timeshare owners. In the last weeks and upcoming weeks, there are multiple lawsuit filings where there are $500,000 in Punitive Damages in each owner’s case for statutory violations under the law. The first of these Holiday Inn cases is already underway near Gatlinburg being conducted through a branch office of The Timeshare Law Firm located in Sevier County, Tennessee.

 Holiday Inn Club Vacations, Inc. (which includes Orange Lake and Silverleaf Resorts) shall also face individual lawsuits and Multiparty Actions in other states occurring now in Las Vegas Nevada, Branson Missouri, Scottsdale Arizona, Myrtle Beach South Carolina, and various Silverleaf Texas locations.

The fact patterns for all these consumers involve high-interest loans, predatory lending, and abusive sales practices using overt and willful violations of statutory law and fraud.  These consumers are all timeshare sales victims with no way out of a perpetual debt mechanism in a useless Contract: a “points-based” reservation system for hotel “bookings” that typically run about 5x to 10x (500% to 1000%) more than simply booking online. In addition, the privilege of ownership comes with obtuse early booking mandates [6-11 months] and contrived restrictions upon availability [never-can-get-the-promised-resorts] when there is ample room availability, immediately ready to book online. As a result, Plaintiffs have paid unconscionable 500-1000% overcharges, where they now have little to no benefit as a timeshare “owner”.

These owners were willing to give up everything they lost by means of deceit, just to be released from their timeshare contract after they learned about numerous false promises. Though licensed attorneys, owners have discovered that there was further fraudulent concealment of government-mandated consumer warnings and other statutory violations.

Consumers are now empowered to legally FIGHT BACK against the billion-dollar timeshare conglomerate, Holiday Inn.

If you own a Holiday Inn, Orange Lake, or Silverleaf timeshare and feel that you have been the victim of fraud you should call and directly [this is important] talk to a licensed attorney whose license verification is provided to you (bar numbers can be researched online to match a phone number they can call you from, and website/email are the same as listed at the Bar Association).  Verify that that a licensed Attorney represents your interests, and get a Pro Bono Consumer Protection Attorney to scrub down your facts and advise upon your legal rights, if you can find a law firm that provides such services free of charge.

It doesn’t matter what state the Plaintiff live in, from California to New York to Florida and everywhere in between… The relevant point is where you bought your timeshare and the state of the resort’s corporate headquarters, and that is where the law firm must have timeshare relief Settlement Attorneys and Trial Attorneys skilled in timeshare-specific settlement and/or trial lawyers that are licensed to practice in the relevant jurisdiction. 

Please note, clients joining the lawsuit prior to the imminent date of filing can participate in any simultaneous or short-timeline settlement which may fully end the action at that point, but all the then-current Plaintiffs shall be included in the settlement releases.

https://theTimeshareLawFirm.com

Tags

Post navigation

Comments are closed