Why Timeshares Are a Scam

Timeshare resale scams have long been prevalent. Scammers will place ads on social media and other sites promising they can help get rid of timeshares and even make a profit from selling them, yet offer no help or assistance at all.

At first, they will ask for payment in some form – usually via wire transfer or reloadable money cards – then disappear, leaving victims without an item they purchased despite spending hundreds or even thousands.

They’re a Vacation

Timeshare ownership allows multiple owners to share in the cost and usage of resorts over an extended period. Unfortunately, fraudsters have taken to exploiting timeshares as scams for some time now; with summer quickly approaching TNS has witnessed an upsurge in complaints related to timeshare scams.

Consumers frequently fail to appreciate the costs and risks associated with timeshare ownership, including high annual fees and restrictions on usage. They may mistakenly believe a timeshare is an investment when in reality it isn’t.

Timeshare owners who are trying to sell or rent their properties may fall prey to fraudulent companies that promise them assistance but never deliver as promised, leaving owners more frustrated than before. Instead, if you want to dispose of your timeshare quickly and hassle-free, reach out directly to the resort that sold it – they may offer options such as resale programs or referrals to trustworthy third parties that may work better for you.

They’re an Investment

Timeshares were once popular with consumers, providing them with vacation properties at a fraction of the cost associated with owning and maintaining an entire vacation home. But when accounting for maintenance fees over timeshare ownership’s true costs can become apparent; timeshare ownership may not provide savings in the end.

Contrary to what salespeople may claim, timeshares are not investments. Investments aim to either appreciate in value or generate income; neither of which are achieved with timeshare ownership.

Timeshare resales are notoriously difficult, due to a crowded resale industry and their inability to hold their value well. Furthermore, companies selling timeshares often charge upfront listing fees in order to resell your property. Luckily many resort developers and other industry organizations will work with owners looking to exit their timeshares – simply be wary before choosing a reliable source!

They’re a Scam

Timeshare scams are increasingly targeted by fraudulent companies and individuals alike, who usually try one of three things to defraud owners: offer to sell it for an “outrageously low” price to an imaginary buyer, collect upfront fees to cover fake costs or simply vanish into thin air.

The Federal Trade Commission warns consumers about timeshare sales pitches that include lengthy presentations with high-pressure tactics to wear you down and encourage an impulse sale, hiding important costs along the way.

Many timeshare owners decide they want out for various reasons, such as not using it and growing weary of paying the rising annual maintenance fees. Unfortunately, it can often be too late to exit a timeshare contract without incurring an expensive penalty fee, leaving them stuck with an unwanted piece of real estate and an increase in their annual maintenance payments.

They’re a Way to Make Money

Timeshares were once a popular way for people to travel luxuriously while reaping all the advantages of ownership without all of its upkeep or taxes. Unfortunately, timeshare industry scam artists can turn timeshare ownership into an unpleasant experience for consumers; for example, resale scam artists pose as legitimate companies when calling people who own timeshares they find in public records offering to sell it; this practice is illegal; you should never wire funds directly to anyone claiming to be resale brokers.

People can fall victim to fraudulent companies by being misled into believing they have buyers while paying upfront fees for services like escrow and closing costs, only to discover later there was no one buying your timeshare at all and this company was actually just a scam. When this realization hits home you may lose hundreds or even thousands in money that had been promised through fraudulent practices by fake rental agencies who promise to rent it but never deliver as promised; these types of schemes often get reported to state attorneys general offices as fraud.