A timeshare scam is a fraudulent scheme where scammers exploit people involved in the timeshare industry—either those looking to purchase, sell, or exit a timeshare contract. Timeshares are vacation properties with shared ownership, allowing multiple people to buy "shares" of the property for specific time slots each year. Scammers take advantage of the complexity of these contracts and the frustrations many owners experience with rising fees or the desire to exit their agreements.

Who Is Targeted?

• Timeshare Owners: Owners who are looking to sell their timeshare or exit their contract are prime targets. Many timeshare owners are frustrated by increasing maintenance fees or find they are no longer using the property as expected.

• Vacation Seekers: People looking to rent or buy timeshares are also targeted, especially with offers that seem too good to be true.

• Older Adults: Seniors are frequently targeted due to their potential unfamiliarity with digital transactions and timeshare complexities.

  
  

How Common Are Timeshare Scams?

Timeshare scams are relatively common due to the large and often dissatisfied market of timeshare owners. Scammers know many people want to exit their timeshares or find better deals, making them vulnerable to fraudulent offers. According to reports from consumer protection agencies, thousands of people fall victim to these scams each year, losing millions of dollars.

Red Flags to Watch Out For

1. Upfront Fees: Scammers often ask for large upfront fees for services like reselling your timeshare or helping you exit your contract. Legitimate companies typically take their fees after completing the transaction.

2. High-Pressure Tactics: Be wary of anyone trying to rush you into a decision. Scammers often use urgency to pressure you into paying without fully understanding the deal.

3. Unsolicited Offers: If someone contacts you out of the blue offering to buy or sell your timeshare, be skeptical. Scammers often reach out via cold calls, emails, or social media.

4. Too-Good-To-Be-True Deals: If someone offers to buy your timeshare at a price far above its market value, it’s likely a scam. Scammers play on people’s hope to get rid of their property quickly and profitably.

   
   

How to Report a Timeshare Scam

If you believe you’ve been scammed, it’s crucial to act quickly:

1. Report to Authorities: File a complaint with the Federal Trade Commission (FTC) at reportfraud.ftc.gov and your state’s Attorney General’s office.

2. Dispute Payments: If you’ve paid the scammer using a credit card, contact your card provider to dispute the charges.

3. Seek Legal Advice: If you are struggling with a timeshare contract or have been defrauded, consult with an attorney experienced in timeshare law.

   
   

Conclusion

Timeshare scams prey on people’s financial vulnerabilities and frustrations, especially when they are eager to sell or exit their contracts. By staying alert to red flags like upfront fees and unsolicited offers, you can protect yourself from these fraudulent schemes. Always verify the legitimacy of any company or person offering timeshare services, and if you’re ever in doubt, consult with legal or consumer protection professionals before moving forward.