Timeshare Exit Fraud

Timeshare exit fraud

Suffolk Trading Standards

Suffolk Trading standards were recently contacted by a person in Ipswich who was asked to pay an extremely large sum to exit a timeshare agreement. The person was initially contacted out of the blue by a company offering to help arrange leaving their timeshare agreement.

Dan Keating, press officer for the Timeshare Consumer Association comments that “unsolicited phone calls from companies who seem to know more about you and specifically your timeshare ownership are never a good sign.”

Warning

Suffolk Trading Standards issued a warning after receiving a number of reports regarding the scam. In this particular case the near victim was told a fee of £10,000 would be required to terminate the contract. Fortunately in this case no monies passed hands.

A spokesperson for Suffolk Trading Standards said: "If you are looking to exit a timeshare agreement, we recommend first writing to the timeshare company to establish whether or not you are able to surrender the timeshare”. "It’s occasionally possible to come to some arrangement directly with the trader. You can also contact the Timeshare Consumer Association who may be able to assist."

Timeshare relinquishment

Keating goes on to point out that, “whilst a number of timeshare developers do have published exit strategies the vast majority don’t.”

Keating cites the USA where it’s virtually impossible to simply cancel timeshare ownership as none of the major developers publish anything close to resembling exit strategies; he also points out that those who do often have draconian conditions to qualify and furthermore then charge extremely high fees.

Timeshare is a method of taking holidays where the buyer pays a considerable sum to enter then pays a management fee every year thereafter. Normally points are allocated that can be exchanged for holidays Keating explains. He goes on to say that these ownership contracts are often for extremely long terms.

Fraud on the increase

Timeshare fraud is on the increase so it’s essential the owners be on their guard. As a final point from Keating he explains that “the number of scam and fraudulent operators way out strips the ethical above board companies, a fact the Timeshare Consumer Association is only too aware of.”