Fighting Back Against Timeshare Advocacy Fraud and Unlicensed Timeshare Closing Agents on eBay
There are numerous companies that are currently promising they have the ability to represent timeshare owners and advocate on their behalf with the timeshare developer. These companies promise to have the timeshare ownership and the obligations of timeshare ownership cancelled. There are also numerous groups that promise they can even negotiate a timeshare mortgage cancellation. While there have certainly been documented cases where these types of companies have been successful, there are also many reports of such companies charge large upfront fees and then fail to provide the promised timeshare relief and timeshare cancellation.
As in most instances of timeshare based fraud- refusing to pay any type of upfront fee is the best way to protect yourself from the con artists. Also, consumers should always read the entire contract before signing any agreement regarding a timeshare product or service. In some cases, the timeshare cancellation company will send out a contract that classifies the upfront payment as the purchase price for some type of vacation or travel club, and will list the timeshare to be cancelled as a 'trade-in' or in some cases never mention the timeshare cancellation at all!
I was just told of such a group operating out of Myrtle Beach. The company is comprised of a few "former" Wyndham sales weasels who evidently have somehow kept access to their buyer and prospect lists. They are now reaching out to these Wyndham owners, offering to cancel the existing timeshare ownership. In this particular instance, they charged a 89 yr old man more than $40,000 for what he believed to be legal representation that would get his Florida timeshare mortgage cancelled. The contract he signed actually sold him a worthless travel club. In the end, what he purchased wasn't legal representation- it was a vacation club membership and yet another annual bill to pay....
Often, what these advocacy groups will do is generate simple form letters that they send to the timeshare developer. These letters often state that the timeshare owner was misled by the timeshare salesperson during the original timeshare sales presentation- and demand an immediate release from the obligations of ownership. The letter will claim that the timeshare owner intends to file a lawsuit against the timeshare developer if the cancellation request isn't granted.
What happens if these letters fall on deaf ears and the timeshare developer simply ignores the threat? The advocacy company tells the timeshare owner that the "negotiations" take time, and stalls until the credit card dispute period expires- leaving the timeshare owner with few resources to force a refund of the upfront cancellation fee.
If you are in this situation, there may still be hope.
You'll want to start by filing a complaint with the proper Attorneys General. You can file a complaint with the Attorney General in the state where you live, in the state where the fraudulent company is located, and also in the state where your timeshare is physically located. The complaint process does take time, but is a very important first step in stopping timeshare fraud.
If you believe that you have been solicited by a con artist who illegally offered to provide you with "legal representation" against your timeshare developer for breach of contract or misrepresentation during the sales presentation, you may be able to file a complaint for the unlicensed practice of law. In most states, the local bar association has the right to investigate the unlicensed practice of law. Please contact the Bar Association in your state for information on the proper complaint process.
Online classified venues such as eBay often "require" that a timeshare buyer use a specific closing agency which is chosen by the seller. In some cases, there is not actually a true third party closing agent. The promised closing company is really just another employee of the eBay seller. The problem for consumers occurs if the promised closing does not complete, or if the timeshare is improperly conveyed and there are title errors, unpaid assessments and balances. Without a truly independent closing company- the consumer has little to no protection during the closing process!
Hopefully this information will give timeshare owners two other ways to fight back against timeshare scams...
Hopefully this information will give timeshare owners two other ways to fight back against timeshare scams...