Timeshare scams cost thousands

If you’ve been thinking about getting out of your timeshare, it’s not as easy as you may think. Scammers prey on timeshare owners, especially those trying to sell.

“You could go anywhere in the world you wanted to- supposedly,” said previous timeshare owner Joe Hayes.
In the beginning, the worldwide timeshare was a great choice for Hayes and his wife.

“We utilized those resources and saw a fair share of the world,” he said. “Not all of it by any means, but a fair share.”

When times changed and the Hayes no longer wanted their share, problems arose.

“After being scammed, as far as I’m concerned, out of $600 for a company to advertise my shares,” he said.
$600 was only the beginning.
“$35,000,” he said. That’s the total amount he lost.

Experiences like that are what prompted attorney Michael Hales of Beard St. Clair Law to focus on timeshare scams. He wants to help people defend themselves against five different types of scams: transfers, advertising, advocacy, donations, and potential buyer.

“The scammers that indicate they have a buyer for the timeshare,” said Hales. “They’ll call up a timeshare owner and say, ‘We have a buyer, they’ll buy your share for $30,000. Is that something your interested in?'”

Of course there are hoops to jump through.

“The company will then invariably indicate that there is some fee that needs to be paid upfront; a tax, or a transfer fee,” said Hales. “They’ll ask that the timeshare owner wire them that money. It could be a thousand bucks, it could be 500, it could be 2,000.”

For one of Hales’ previous clients this technique cost him much more.

“This went on over and over and over again until this client had wired $240,000,” he said.

Hales said the key to avoid scams is research; make sure the company is registered with the state and they have no upfront cost.

“Most of these companies will just be a dummy company, they won’t have an address or when you Google it it’ll be a virtual office,” said Hales. “Do your homework.”

There are also key questions to ask potential companies.

How long have they been in business?

How long does it take to sell the share?

How much does it cost?

Can I come to your office to meet you?

For some, the scams are killing the timeshare business.

“Actually, timeshares in most instances, not all, but in most instances are worthless,” said Hayes. “They have no value whatsoever. In fact, you must pay to get rid of them.”

Hales has been researching a company right here in Idaho, Ace Travel Agency in Boise. He said although they’ve done extra work to look legitimate, they still have all the red flags.