Before I established my own law practice, I worked in a mid-sized consumer protection law firm. During that time, I saw hundreds of timeshare fraud cases. The most deceptive and predatory companies I ever encountered are timeshare companies.
What makes these companies so deceptive and predatory?
Timeshare scams typically begin with unsuspecting people being lured into “short” presentations with the promise of gifts, such as:
When the person is in the presentation, they are worn down for hours.
Why didn’t they just leave? Many try. Sales agents lack a sense of common decency. They pressure people into staying for hours. These are examples of real experiences of former clients:
False statements and misrepresentation are the most important part of the scam. Deception is clearly illegal and is fraud. Deception in timeshare sales presentations often includes these misrepresentations:
I have represented lawyers, doctors, and PhDs who were tricked into signing a timeshare contract. It can happen to anyone. They were convinced that there was no risk, because they were told they could return the timeshare at any time, sell it for a profit, or just use it if they liked it. They signed the contract in reliance on the deception.
Sometimes immediately, sometimes after a year, and sometimes after 15 years or more, consumers realize they were victimized. Some clients realized the scam on the drive home, when they started reading over the contract. Other clients who were told they would be able to sell their timeshare for a profit believed it for 15 years before trying to sell their timeshare. Often consumers realize:
They cannot resell their timeshare or get any economic benefit from it. Many clients literally cannot give their timeshares away for free. At the time of this writing (12/2/21), there are 322 timeshares for sale on eBay for less than $19. Most of these timeshares have paid off “mortgages,” and some even come with incentives, like Visa gift cards, for purchasing the timeshare. Yet, they have not sold. Timeshare companies don’t want to let you get out of your contract. They want you in your contract for life, so that you continue to pay the recurring maintenance fees. Clients who were not let out of their contract despite seeking hardship waivers include:
There are usually two options for addressing a timeshare scam.
When stuck in a timeshare contract, some people choose to simply stop paying and hope for the best. In my experience, the potential consequences of this approach are: (1) harassment from debt collectors, (2) credit damage, (3) tax implications, and (4) being sued by the timeshare company. I have found that it is extremely rare for a timeshare company to sue an individual, but I have seen it happen. However, they do report delinquent payments to the credit bureaus in almost every case. Then, they “foreclose” on the timeshare, usually through a non-judicial foreclosure process. Sometimes, they also file a tax document with the federal government, which has the potential to create a bigger tax burden for the consumer.
The other option is filing a legal action against the timeshare developer to recover the money spent on the timeshare and to end the timeshare contract. This process involves:
Most of the time, these cases settle. I have obtained multiple five figure cash settlements for clients in this type of case. In every case I litigated, I successfully terminated the consumer’s contract. If you are a timeshare fraud victim, I can do the same for you.
If you are a timeshare scam victim, I am confident that I can help you. I assist clients with timeshare fraud cases in the State of Washington and the State of Oregon. Contact the Law Office of Conner G. Spani for a free consultation.
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