Scam Alerts!
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A reader notified me by email of a new solicitation she received from a company called Vacation International Inc that gave her a purchase offer for her Mayan Palace timeshare. She was told that there were no upfront fees or marketing fees, but was told that the "closing" would be handled by a company called Alliance Title Service.
Per Janet G, "Well into the process they requested a $3790.00 transfer fee in advance and listed the beneficiary to be "Promotora Costa Diamante", not Mayan Palace. Mayan Palace does not have anything to do with any such organization and though they do charge a transfer fee for out-of-family resale, it would have been about half that amount. Just want to get this on everyone's radar." I called member services with Mayan Palace and confirmed with a resort employee that there is no affiliation, and was warned by the employee that resale transfer schemes are very common. If you are involved in a timeshare sale for a resort located in Mexico, be sure to take the time to contact your member services department to learn what is actually required to complete a transfer of ownership. Knowing the true process can save you thousands by alerting you to potential scams! I received an email from a timeshare owner who has been approached by an individual claiming to be a John Harold working for a company calling itself Property Management Solutions Inc using the address 41 South Street in Columbus, Ohio. The address being used is for a vast commercial building, the Huntington Center.
I called the property management company for the Huntington Center and was told that there is no company listing at that address for any timeshare resale organization, and that they show no lease under the name of Property Management Solutions Inc.. The woman I spoke with also stated that she had already spoken to several victims who had told her they had paid thousands to an alleged timeshare reseller using that address. She warned me that she believed it to be another timeshare scam, and recommended that anyone contacted by this group report it to the Ohio Attorney General's office. Vacation-Times.org concentrates on timeshare and vacation travel scams, but I do believe it is important for readers to understand that consumer fraud impacts all industries in today's economic environment. Debt relief and mortgage related fraud is also rampant.
During a conversation with a employee of the Florida Attorney General, I asked if timeshare fraud was the most common scam being reported. She answered that timeshare resale fraud is a huge problem, but that in her opinion both mortgage consultant scams and employment consultant scams were actually more prevalent than any others. Most mortgage consultancy scams ensnare consumers with promises of protection from foreclosure. Many of these scams require upfront fees be paid by the home owner (often equal to three mortgage payments), and some even request the home owner sign a power of attorney form to authorize the "consultant" to negotiate with the mortgage company. At best, the "consultant" will generate a few form letters and make a few phone calls, but often seem to accomplish nothing to help the home owner stop the foreclosure process. At worst, these scams can deed the property out of the name of the home owner- thereby stripping any equity from the property that may be left after the foreclosure occurs. As with all types of consumer fraud, education is the key to protecting yourself. Before signing any document or paying any type of fee to any business promising protection from foreclosure, consult with an independent real estate attorney licensed in the state where the property is located. If you feel that you have been a victim of this type of crime, please take the time to report the fraud to the Federal Trade Commission and to your state's Attorney General. A Florida company is being targeted by legal action filed by the Federal Trade Commission for allegedly using deceptive television and radio commercials promising free vacations. Holiday Vacations Marketing Corp, which also uses the names Happy Life Carribbean Corp (their miss-spelling not mine!) and Happy Life Corporation of America is accused of promising free vacations in return for answering a trivia question- then charging "fees" ranging from $200. to $400. Consumers who have reported paying these fees then say that they have not been able to get the promised holiday vacation, and have not been able to obtain a refund from the company. Often, these "free" holiday offers required additional qualifying, or the mandatory attendance for a timeshare tour.
The lawsuit can be read by clicking HERE. The documents do not disclose the name or names of the timeshare developers who were involved in the timeshare tour. A reader submitted documents to me detailing what appears to be a poor attempt at the "fake buyer for your timeshare scam" by an individual or group calling itself the North American Liquidation Group. The names of the potential con artists that are shown on the correspondence are Julie Forbes, Joyce Levy, and Jonathan C Burnstein III. It is likely that these are fake names, but the embarrassingly poor scam attempt evident in the documents may indicate that the scammers are actually ignorant enough to use their real names!
The documents sent to me contain a number of glaring red flags that should always serve as potential warning signals to consumers. The company letterhead does not contain a physical address, and the letters themselves are poorly written and lack proper capitalization in many instances. While these clues alone do not prove that the company is a scam, they are often indicators of concern. The purchase contract used by this group is another example of a poorly crafted document. Again, there is no identifying information of the company or brokerage which is part of the transaction, there is no identifying information about who the promised buyer will be, and the signature lines do not state the identity of the parties executing the document. The contract contains instructions that the buyer (who is never identified) must supply a binder deposit while the seller must provide an upfront payment equal to the claimed closing costs (which also are not disclosed in the document) in order to "...makes both parties 100 percent vested in the completion of the sale/closing as soon as possible..." I have to assume that this statement is intended to explain to the target of the scam why they were asked to pay an upfront fee. As we move down the document more errors are readily apparent. One error which is common, is the use of an incorrect term to describe an every other year timeshare ownership. The document indicates "bi-annial odd" which is not even a real word.. Bi-annual is the term that is often used incorrectly by scammers, and is not correct because biannual actually means twice a year. Biennial is the correct term and means an action occurs once every two years. There are many other grammatical mistakes on this one page contract. This may be the most poorly written document I have ever seen! The final clue, and what is the most telling of a timeshare scam, is the hugely inflated sale price that is promised to the timeshare owner. This contract states that the buyer is paying $20,000 for an odd year usage two bedroom villa at Mystic Dunes resort in Orlando. A quick look at the timeshare classified website MyResortNetwork.com shows annual usage weeks at this resort priced as low as $450! For consumers, caution is always necessary to avoid most timeshare scams. Not all potential scammers are this obvious or uneducated. Double check everything possible- and NEVER PAY ANY TYPE OF UPFRONT FEE to sell or liquidate an unwanted timeshare. A new release by the Resort Development Organisation in Europe has reported that the website TimeshareConsulting.co has been shut down. The reseller was allegedly using various industry logos to try and create legitimacy in the mind of unsuspecting consumers.
This tactic is common among unscrupulous resellers and upfront fee marketers.. Another example of this was discussed on TimeshareForums with a possible scam alert about a company calling itself Century Timeshare Group. This group was also using various well known and respected company logos to try and create the impression of legitimacy. Timeshare owners should always perform their full due diligence before working with any timeshare reseller or timeshare marketing website and should never accept anything as "truth" that has not been verified elsewhere. Possible timeshare scam warnings about Golden Sands Marketing and Customer Mediation Services6/1/2011
An article in a popular financial news website based out of the UK provides a warning to consumers about a potential timeshare scam involving a company operating as Golden Sands Marketing. Police report that they have received hundreds of complaints by victims across the UK. Suzanne Cubitt, from Banbury police station, stated: "Golden Sands marketing is continuing to operate and dupe people into believing a buyer has been lined up for their timeshares."
Another victim lost £4,800 after falling for the slick sales pitch. Her husband had passed away and she couldn't afford the fees on her timeshares- making her a target for upfront fee scammers. She was duped into handing over £1,200 in upfront fees to Golden Sands Marketing, which cold called her and said it could find a buyer for her timeshares.It emerged later that she'd been misled. She then received another cold call, this time from an individual identifying themselves as Customer Mediation Services. She was told that this new company advocates for victims of timeshare resale scams, and was promised that they company could her money refunded to her, as well as compensation from the first scam. She handed over another £3,600 in upfront fees, but has not been able to contact the firm since Easter. The new firm is being investigated by the Ministry of Justice. The victim stated ".... I feel like I've been so gullible, but these people are so convincing. I wouldn't have fallen for it if my husband had been alive." If you believe that you have been the victim of consumer fraud by these companies, or are aware of any other timeshare related scam, please take the time to report the crime to the Ministry of Justice by clicking HERE. Florida Attorney General and Federal Trade Commission Sue All Deams Vacations and VGC Corp5/28/2011
Florida Attorney General Pam Bondi and the Federal Trade Commission have filed a lawsuit against All Dreams Vacations and VGC Corporation, for allegedly targeting and defrauding hundreds of Spanish-speaking consumers who “won” vacation packages that could not be redeemed as promised. This scheme is alleged to have targeted South Floridians and consumers nationally by advertising the vacation call-in contest with Spanish radio and TV advertisements. "Winners” were then asked to pay fees between $200 and $400 in order to collect the promised prizes. According to complaints reviewed by the Attorney General’s Office, consumers who pay these fees were then told that they must meet other requirements, such as attending high pressure seminars promoting timeshares. Consumers complained that they were unable to get the promised vacations or obtain a refund. The company uses multiple names including VGC Corporation, All Dream Vacations, All Dreams Vacations, Five Star Vacations, 5 Star Vacations, Total Tours, and Travel & Tours Corp
Case Number: L11-3-1021 Subject of investigation: VGC Corporation Subject's address: 3403 NW 82nd Avenue, Suite 210, Doral, Florida 33122 Subject's business: Contests, promotions AG unit handling case: Economic Crimes Division in Tallahassee, Florida Neither document mentions the timeshare developer or developers who where using this company to generate timeshare tours. Release Date: May 27, 2011 Attorney General Darrell McGraw Warns Timeshare Owners of Bogus Sale Scams; Companies charge upfront fees of $1200-$2500 for non-existent service
CHARLESTON – Responding to an uptick in consumer complaints against several companies, West Virginia Attorney General Darrell McGraw is warning the state’s consumers to beware of bogus timeshare sale scams. Timeshare-owning consumers have filed complaints with Attorney General McGraw’s office indicating that these companies have called them promising to sell their timeshare and charging $1,200 up to $2,500 in advance fees for this service. Typically, the scammers send a legitimate-looking contract to be signed and faxed or e-mailed back. Many times the contract and transaction are executed through an online website. The companies fraudulently claim the fees are for advertising, closing, inspection, and transaction costs and require an immediate payment through a credit card or debit card transaction. "Do not agree to pay an advance fee in order to sell your timeshare," Attorney General McGraw warned. "Legitimate timeshare sellers do not require an up-front fee." The Attorney General reminds West Virginia consumers that timeshare sellers are required to register with the West Virginia Securities Commission of the State Auditor’s Office. Before agreeing to buy or sell a timeshare, consumers should contact the Auditor’s Office at 1-888-368-9507. Using stall tactics and deceptive terminology in their contracts, the scammers have been successful in preventing consumers from obtaining refunds through their credit card banks. "Federal law provides consumers a remedy for obtaining refunds for fraudulent credit card transactions," McGraw said. "However, consumers must be diligent in disputing the charge with their credit card company within 60 days, and they must do so in writing." To report a scam or file a complaint, West Virginians can reach the Attorney General’s Office online at www.wvago.gov or by calling the Consumer Protection Hotline at 1-800-368-8808. For regular consumer news updates and tips, follow "AGWestV" on Facebook, Twitter, and YouTube. A story from the NBC affiliate Channel 4 in Nashville is claiming that a popular area rodeo has decided to ban My Dream Escape, a Florida seller of travel, from it's future list of vendors due to numerous complaints that advertised free trips from the company were simply a misleading sales tactic.
"This year was our biggest and best we've ever had. We don't want our reputation being tainted by something else," said Bill Fitzgerald of the Franklin Rodeo and Rotary Club. WSMV reported that several consumers were allegedly called after the event and told that they had one a "free" trip. One consumer, Aimee Baggett, stated that they caller "...said that the state of Florida pays for 85 percent of the trip that you've won, so I would be responsible for $398 worth of promotional fees." When the company then asked for a credit card number or a bank draft, she became skeptical. Some simple research discovered that My Dream Escape goes by three different names and has a D-rating from the Better Business Bureau, and Baggett stated she found complaint after complaint about the company on consumer websites. As always in the timeshare and travel industry, consumers should be aware that "Free" rarely means no cost to the consumer. Individuals should never purchase any type of travel or timeshare product on impulse, and should always take the time to research the company and product prior to signing any paperwork. Consumers should always read the fine print of any offers, surveys, or websites if they want to protect their personal information. If you believe that you have been the victim of unlawful sales practices involving any type or timeshare or travel related product, please report the crime to your states Attorney General. You can find contact information for the Attorneys General by clicking HERE. |
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