New reports state that a company that had set up shop in North Myrtle Beach last year has left town leaving dozens in their wake with complaints and less money. Martha Smith, a grandmother from Alabama, is one of the apparent victims of Timeshare Legal Counsel, a company based out of Lenior City, Tennessee, according to their web site. Smith had purchased a timeshare week in Tennessee. The Orange Lake Company subsequently took over management of her purchased property.
Not liking some of the new company policies, Smith became disgruntled with her purchase. Enter Timeshare Legal Counsel. Smith said a representative from Timeshare Legal Counsel called and asked if she was happy with her Orange Lake timeshare week. When she said she wasn’t, the representative told her that for $1,400, his company could get her out of the sales contract for the week. “I told him I didn’t have that much money,” Smith said. “He told me to send him $399 upfront and I could pay the rest after everything was settled.” She was told to send the money to 730 Main Street in North Myrtle Beach. That address is a UPS store that has personal mailboxes that individuals can rent. The address of the company was listed as 1019 Highway 17 South in North Myrtle Beach. That address is a group of offices located within a strip shopping mall. TripAdvisor has posted several reviews by consumers warning of aggressive and abusive developer sales tactics being used to try and pressure guests into high dollar timeshare purchases.
..To say that we were speechless at this point is an understatement....having been there for over an hour with no breakfast (as was promised ) we decided that this was not for us and they could keep thier gift, but the $20. deposit that we had given the original rep and that was to be totally refunded, NEVER was, They said we had to find the guy ourselves and get it back from him....WE have been to a few presentations and this one was the WORST case of misrepresentation we have ever come across..... ...“WHAT A SCAM!! Dont waste your time here...”... ...Not only was the Sales Manager over 20 minutes late, he brought his son and was dressed as if he was going to play soccer. Very unprofessional salesman! The trip up the hill is TORTURE, reminds me of an old wooden roller coaster, but louder!! My wife and I are currently here in Puerto Vallarta looking to buy vacation property, and visited this place yesterday morning, 7/25/2011. They were jerks, and treated us as if we were second rate. BIG MISTAKE guys... ...The time share presentation that brought us there was HIGH PREASURE! There were offers made that were never follow through with. I WAS RIPPED OFF. filed a claim with my credit card to get my money back.... You Can Cancel Your Timeshare Contract!
Or so they would like you to believe. Here's a scam going around you need to be aware of. It sort of goes like this. You get a call at night (of course). The nice person on the other end asks you if you're happy with your time share. They want to know if you received everything you were promised at the resort. They want you to know that if you bought your time share direct from the developer the value of that time share is now pennies on the dollar. THAT gets your attention! Especially is you're still paying for it! What's going on here? Well, they're doing a classic sales technique: Create a problem and then offer the solution to the problem. It's a tried and true technique, and unfortunately one that certain con artists use to your disadvantage at times. Who falls for it? It could be a number of folks: · You bought the time share direct from the developer (big mistake) and afterwards you discovered you vastly overpaid for it. Canceling the contract sounds like a way out of a bad mistake. Perhaps they can even get you ALL your money back! · You're still paying the mortgage on the time share and you know you're underwater on it. You don't want to let it go to foreclosure because that will hurt your credit rating. Perhaps canceling the contract would solve the problem! · You've tried selling the time share by giving money up-front to con artists who promise everything and deliver nothing. Perhaps canceling the contract is a better idea and less costly! · You were pressured into the contract and really should never have bought it. It just wasn't the right thing for you and you've never used it. Canceling the contract would make things right again! The con artist will give you a whole smorgasbord of ideas of why you can legally cancel your contract, waiting for you to pick one or two so you feel like a victim. On one web site we visited they gave these ideas:
Perhaps there really is a company out there that can do these great things and we just don't know about them. Perhaps they truly have helped hundreds and hundreds of consumers out there as they claim. Perhaps there really is an Easter Bunny. Now for the disclaimer. We're not attorneys and we're not giving legal advice. That said, we ARE a licensed real estate brokerage. That means we know real estate contracts, and time share contracts in particular since that's our specialty. So the big question: Can you cancel the contract? Yes, you can. Next time you see the Easter Bunny he'll tell you how. Now folks, let's be real. A developer spends tens of millions of dollars to build and sell a time share resort. They have an army of attorneys guiding them all along the way. Do you really think their contracts are not 100% iron-clad? In 26 years of doing this I've heard of only two or three contracts that were broken and that was because the salesperson simply screwed up royally and there was evidence to prove it. You have a better chance of winning the lottery than finding something in your paperwork that can prove you were lied to, misinformed or cheated in any way at all. It doesn't happen. PERIOD. And stuff like, "Did your 90 minute presentation last much longer?".........please, give me a break. So what's the catch? MONEY! Of course! For their services you're going to pay them up-front! But wait, there's more! Some of these companies have a 100% money back guarantee! So how could you go wrong? Well of course to take advantage of the guarantee you're going to have to follow their guidelines exactly to the letter (oh yes. They don't do the work for you, they just tell you what to do) If you don't follow the instructions to the letter the guarantee is void and they can't help you any longer 'cause you didn't follow their instructions. The instructions are not so bad, really. Write a bunch of letters in a certain order and on certain dates. Follow up with phone calls and a second round of letters, all in a certain order and on certain dates. Personally appear at the offices of the Attorney General and Real Estate Commission dressed only in a copy of your contract, while moon-walking through the front door. Stuff like that. Yes, when you buy a time share from the resort they do tend to "stretch" the truth here and there. OK, they lie through their teeth. Sometimes. Not all the time. Some are really very straight forward and honest. But anything verbally discussed or promised in a real estate contract is of no value. That is the law. Everything must be in writing. If it's not in the contract, it doesn't exist. That's the law. In fact, in any real estate contract worth its salt you're going to find a sentence like this, "No agreements or representations, unless incorporated in this contract shall be binding upon any of the parties". In other words, if its not in the contract, it doesn't exist. That sentence is there to protect BOTH parties, not just one. And now you know! Tom Tubbs, Broker Island Consulting Realty [Editors Note- Timeshare Cancellation Schemes are a growing problem in the industry, simply because resale values have fallen so dramatically over the past few years and many timeshare owners still have large mortgages which make resale impossible. As always- simple common sense can protect you from the vast majority of timeshare related fraud and one simple statement to always remember... Never pay any type of upfront or advance fee to sell, rent, or liquidate an unwanted timeshare!] TripAdvisor reviews for this resort warn travelers of aggressive and potentially abusive timeshare sales tactics at the Lifestyle Tropical Beach Resort & Spa located at Puerto Plata in the Dominican Republic.
.......We came for two weeks club la costa/ RCI. attacked with bribes of free drinks, tour and then the sales pitch where we were told our Club La Costa points were worthlessand we should change over to Lifestyles resort for another $15,000.... ...One of the most beautiful places in the world, great service, relaxing atmosphere but if you book through cheap carribean watch out because the price may be right but you are roped unawares into a promotional tour where they will aggressively go with the hard sell on a timeshare and if and when you say no they will verbally punch you in the face... ...The down side were the timeshare salesmen; they were relentless despite our firm "NO gracias." During our dinner at Indochine, 7/25, one of the timeshare reps interrupted our meal to set up a free tour. BAD FORM, despicable behavior. Our time is valuable and not be wasted on a sales pitch on our vacation. Be on guard for the guys in white shirts with clipboards..... ...DO NOT stay here. There wouldn't be enough space for me to list all my complaints. I travel regularly and this was by far the worst travel experience of my life. The food is horrible, service is just as bad, no one speaks english, and you are contantly hounded by sales people. The beach is dirty and not easily accessible, the only half way decent thing about it was the rooms. We stayed in the Presidential suites and they were nice but I wouldnt return if you gave it to me for free!... The Chicago Sun-Times is reporting about two new possible timeshare scams both involving advance fees being paid to sell an unwanted timeshare property.
...In February, we received a call from a couple in New Jersey who said they wanted to buy the timeshare. They were using a company to handle all the paperwork.We sent $1,997 on March 1 to cover the closing fees. They told us it would take about six to eight weeks. The company, Interval Condos Closing, said the paperwork would be sent by FedEx for us to sign and send back. We have been calling for the last two months and have not received the paperwork nor any calls back. We do have a contact person, but his voice mail is always full. He does call back about every two weeks and says the papers should be there soon... This is unfortunately a common fraud where a fake closing agent is created to scam consumers who believe they are paying "closing costs" to sell a timeshare. The sale never occurs, and no refunds are ever given. If you are considering selling a timeshare, you have to take the time to discover what the actual closing costs will be and understand the closing process that is required. Contact your resort management company or a respected and well known timeshare closing agency for information. You can find a list of timeshare closing agents organized by state that I maintain on the TimeshareForums website by clicking HERE. These companies have been recommended to me in the past by clients and individuals who purchased and closed on a timeshare resale. The article also warns consumers about another upfront fee company calling itself Timesharescape. ...We have a timeshare in New Orleans, and we want out. We went to a meeting at a motel in February 2010 to get rid of it and paid $3,095 to a company called Timesharescape. It’s been well over a year and they still haven’t transferred our timeshare. They said a corporation buys the timeshares. The $3,095 was to pay for paperwork and transfer of deed. I don’t know how to get our money back or how to get rid of the timeshare. We just can’t afford the fees anymore... These timeshare relief postcard seminar companies are rampant in the industry today. Consumers go to a seminar under the assumption that they will receive an offer to purchase their unwanted timeshare, then are given a high pressure sales presentation to convince the timeshare owner to pay thousands in upfront fees to simply give away the timeshare. While some of these timeshare relief type companies do actually transfer the ownership, many consumers are reporting that they pay these ridiculous upfront fees only to find that no transfer ever occurs and that they are unable to obtain any type of refund! If you need to liquidate an unwanted timeshare ownership, contact a respected real estate broker that does not require any type of upfront fee. Ensure that the company you choose operates under a valid real estate license and operates a true escrow account or uses a respected and independent third party closing and escrow agent to hold all funds. When there is a dollar to be made, often common sense seems to go out the window. I just saw a press release from a credit card processor promising easy access to merchant services for "high risk" businesses including timeshare resale organizations.
"An account can be deemed as high risk simply because of the industry it is in. It's rewarding to know that we can help people live out their dreams of owning and operating a business, regardless of what industry they are doing business in. We have programs in place that protect our financial institutions and allow these merchants to conduct normal business without being limited by unnecessary restrictions and limitations." states Christopher Kille, President of Commersense. Commersense serves a number of small businesses within the United States, and is capable of serving international clients. The company specializes in providing services that protect the client against account closure. Accounts placed within the past few months have included clients within the following industries: debt collection, travel and timeshare resale, online pharmaceuticals, nutraceuticals, and credit repair. Commersense provides custom priced solutions based on the clients' merchant needs. I've long advocated that if legislation was passed which targeted not only the con artists themselves, but also the banks and merchant accounts which give them the ability to defraud consumers so easily. If merchant accounts required a large bond be purchased for high risk accounts that would be available and subject to client refunds if fraud was discovered by law enforcement- it would go a long way to helping put an end to these call center boiler rooms. While it is vital that legitimate businesses have access to the financial tools necessary for growth and operation, I have to wonder if a merchant services company that actively targets high risk businesses is creating a responsible business Charges Filed Against Chateau World Vacations Inc for 168 Criminal Counts of Fraud over $5,0008/3/2011
After a lengthy probe lasting three years, authorities this week filed charges against Chateau World Vacations Inc., its director Kim Schram, and Andre Muran, who operates three affiliated companies Properties International Ltd, Royal Crown Resorts Ltd, and Royal Club Resorts Inc.
Combined charges include 168 criminal counts of fraud for amounts over $5,000 plus 24 Fair Trading Act charges of misleading or deceiving consumers, misrepresenting a consumer’s rights, remedies or obligations, and using exaggeration, innuendo or ambiguity of material fact in a consumer transaction. The Calgary Sun is reporting that timeshare buyers signed contracts which stated that the physical resort facilities were held in trust, which should have protected consumers in the event that the businesses were declared insolvent. When Chateau World Vacations dissolved, lenders foreclosed on Chateau Canmore Resort and Banff Gate Mountain Lodge and Spa- effectively making the properties inaccessible to the individual timeshare owners. The report goes on to state that of the 59 buyers who filed official complaints, the total combined loss exceeded $1million. The accused individuals, Muran and Schram, are scheduled to appear in a Calgary courtroom on Thursday. There have recently been a few complaints about a marketing group calling itself Corporate Travel Concepts that may or may not be affiliated with another possible timeshare scam called Global Resort Management. The complaints state that these companies call timeshare owners and promise high priced timeshare rentals in return for hundreds of dollars in upfront fees.
These types of rental marketing scams cold call timeshare owners and promise they have secured current and future rentals to corporations who need employee housing. Consumers are promised higher than market rental prices, but are required to pay some type of advance or upfront fee. The fee is explained as either a commission or advertising fee. Once consumers pay this fee, no rentals actually occur. As a rule of thumb, timeshare owners should always understand that any type of cold call about a timeshare sale or rental is most often simply a scam. Telemarketing groups or boiler room call centers will often purchase a large list of contact information for timeshare owners. They then target these owners with promises of already secured buyers or renters for unwanted timeshares. Consumers pay large upfront fees, only to find that the promised transactions never occur they are unable to obtain a refund of the advance fee. Timeshare owners who want to rent an unused timeshare week may be better served contacting a licensed real estate broker who does not require ANY type of upfront fee. Many resorts and timeshare management companies also offer their own in-house rental programs- which may provide a much safer environment for consumers. As always, if you are a timeshare owner and believe that you have been the victim of some type of consumer fraud or timeshare related scam- please take the time to report the crime to your state's Attorney General as well as the Attorney General of the state where the fraudulent company is located. A story featured on WSPA Channel 7, a CBS station out of the Carolinas exposes a common complaint reported by consumers when purchasing non-deeded membership based travel clubs.
A South Carolina couple stated that they had signed a contract to purchase a travel club membership and paid a $1,200 deposit to Time Out Access Travel, and their paperwork promised them a three day cancellation period. The $3,700 program promised deep discounts on travel services including cruises and airfare. Charlie and Ann Berry were caught up in the sales presentation, and agreed to purchase without fully understanding the product. "After we got home I started looking over, trying to figure out exactly what this was," said Berry. "I said, 'No we're gonna cancel it'." Many of these travel club memberships rely on high pressure sales tactics to generate business. In some cases, these products are sold without any type of cancellation or rescission period. Complaints against travel clubs memberships are especially common in Branson, Missouri- where many travel club scams seem to be based. Mr. Berry states that he submitted a written cancellation letter within three business days, and has proof it reached the company because he sent the letter by certified mail. He states that he was not contacted by the company nor given a refund. When the TV reporter contacted the owner of Time Out Access Travel for answers, he stated that the month-long delay and lack of contact regarding the refund was due to the relocation of the company's customer service department. The article then quotes a local attorney Ken Anthony as saying that Berry's could have easily sued Time Out Access Travel and won in court. "If they failed to pay him it would be breach of contract because this is part of a contract that they've signed," he said.. My question is: Just how many consumers would actually pursue a lawsuit to recover $1,200. lost in a possible travel club scam- and if they did so, just how much money would that lawsuit cost? Somehow I doubt that many attorneys would agree to pursue such a case without requiring a large retainer for their services. Unfortunately, often the best strategy a consumer can pursue is to try and generate enough negative publicity to force the company's hand. The influence of the media can be a very powerful tool for consumer protection, and any consumer who feels they have been cheated should always be willing to use any tool at hand. A press release from the US Dept of Justice states that three Florida men- Michael Franzenburg, 47, of West Palm Beach; Joseph Grizzanti, 30, of Greenacres; and Kenneth Foote, 40, of Lake Worth, were charged with conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1349.
According to the criminal information filed with the court, the defendants engaged in a scheme to defraud timeshare owners throughout the United States and Canada. From July 2009 to February 2010, telemarketers contacted more than 2,000 victims, and collected more than $3.3 million for timeshare marketing and sales services, which were never provided. The telemarketers, operating under the name International Resort Solutions LLC, solicited clients through at least four separate boiler rooms, each of which was located in Palm Beach County. Franzenburg allegedly created International Resort Solutions LLC and arranged to have individuals establish boiler room telemarketing centers in Palm Beach County, through which they could solicit customers who were willing to pay advanced fees for purported timeshare marketing and sales services. The boiler room owners, including Grizzanti, used managers to operate the boiler rooms. The managers, including Foote, were, in turn, responsible for the day-to-day operations of the boiler rooms, including oversight of all sales and supervision of the telemarketers. According to the information, the boiler room managers directed the telemarketers to call timeshare owners throughout the United States and Canada to induce them to pay up-front fees for purported timeshare marketing and sales services by making false and misleading representations about the company's services. Among the false claims was that International Resort Solutions had buyers for their timeshares, that the company had closings scheduled for their timeshares, and that they would actively market their timeshares to potential buyers. If convicted, each defendant faces a maximum term of imprisonment of up to 20 years, to be followed by up to three years of supervised release. This is a very interesting case as prosecutors are targeting all levels of the organization: the LLC owner, the call center owners, and the direct supervisors of the boiler room call center. As always, it is important to understand that the Information above is only an accusation, and a defendant is presumed innocent unless and until proven guilty. However, this type of aggressive prosecution of timeshare scam artists will hopefully encourage other owners and employees of timeshare scams to close their operation before they too face punishment including long terms of imprisonment! More information on this case can be found at these links: http://www.usdoj.gov/usao/fls http://www.fbi.gov/miami/press-releases/2011/three-charged-in-palm-beach-county-time-share-boiler-room-conspiracy/view |
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