FTC Warns of Timeshare Scam
Timeshare owners who are desperate to get rid of their properties are increasingly becoming targets of scams that promise to get them out of the deals and even help them make a profit, the Federal Trade Commission warns.
The FTC recently filed a lawsuit against Vacation Property Services in St. Petersburg, Fla., and two related companies--Timeshare Experts and Higher Level Marketing--for making thousands of unsolicited calls since 2006 to timeshare owners. FTC alleges that the companies promised the owners that they would find a buyer for their timeshare if they paid up-front fees to the companies of anywhere from $200 to $8,000. The companies told the owners that the up-front fees were needed to cover sales-related costs, such as title search and processing fees, according to FTC.
The FTC has had hundreds of complaints filed against the companies after timeshare owners say buyers were never found for their properties and when they asked the companies for refunds, their requests were ignored or refused.
Last fall, the FTC shut down a similar operation from Timeshare Mega Media, which was accused of taking millions of dollars from timeshare owners in bogus deals.
“The FTC is cracking down on timeshare resale scammers,” says FTC attorney William Maxson. "Timeshare resale fraud, however, remains a significant and ongoing problem."