Timeshare Scams

2006-09-06T12:45:00.000-07:00

Another timeshare Scam In Court

Two more Grand Cayman timeshare operators are lawsuit defendants after cases were filed in Grand Court recently.

Morritt’s Properties Ltd., operator of Morritt’s Tortuga Club and Morritt’s Grand Resort, and Grand Caymanian Resorts Ltd, operator of The Grand Caymanian Beach Club and Resort, have both been sued by persons or entities that provided employed or managerial services.

The two cases come in the wake of the collapse of the Indies Suites timeshare operation after it sustained serious damage in Hurricane Ivan. That collapse led to a high profile legal action initiated by timeshare owners, and a subsequent call for government regulation of timeshare operations.

Leader of Government Business Kurt Tibbetts has said that the government has asked Attorney General Sam Bulgin to look into the possibilities of regulating the timeshare industry.

In the case concerning Morritt’s filed on 18 August, accountant and former employee Robert White is suing two Cayman companies, Morritt Properties (Cayman) Ltd. and Morritt’s Shopping Centre Ltd., as well as David Morritt personally.

In Mr. White’s statement of claim filed by the law firm Campbell’s, he said he agreed in writing on 1 January 2003 to act as the Chairman of the Board of Morritt Properties Cayman Ltd. and of a company called Global Resort Management Inc., which is a U.S.–based resort management company. As part of his employed duties, Mr. White was also to organise, negotiate and manage a two–phase shopping centre and apartment development in Colliers.

Global, along with Mr. Morritt and Morritt Properties Ltd, was also named in another lawsuit filed in Florida by Mr. White.

Mr. White was employed with Morritt’s/Global through December 2005, one year before his employment contract was to expire. His dismissal from the company is a matter dealt with in the Florida lawsuit.

In the action filed in Cayman, Mr. White is seeking other agreed–to benefits from the defendants, including a 7.5 per cent share in Morritt Properties (Cayman) Ltd, a 7.5 per cent beneficial interest in the real property underlying Morritt’s Shopping Centre, and 7.5 per cent of the net operating profits can capital of Morritt’s Shopping Centre.

In the other timeshare lawsuit recently filed, Thompson Resorts Ltd. and Grand Caymanian Operations Ltd. are suing Grand Caymanian Resorts Ltd. and Grand Caymanian Beach Club & Resort Ltd.

The Statement of Claim, which was filed by the law firm Walkers, seeks the sum of US$56,954 for Thompson Resorts Ltd, which was engaged as the manager and exclusive marketing agent/manager for The Grand Caymanian Beach Club and Resort from 28 April 2000 until October 2000.

The amount claimed represents alleged unpaid amounts in commissions, corporate services and out–of–pocket expenses.

Subsequently, on 16 October 2000, Grand Caymanian Operations Ltd. was engaged as the manager and exclusive marketing agent/manager of The Grand Caymanian, an arrangement which continued until December 2001.

The claim seeks the amount of US$628,959 in alleged unpaid fees for marketing, management, rental commissions, out–of–pocket expenses, sunset tours and corporate services.

2006-08-28T04:29:00.000-07:00

How To Avoid A Timeshare Scam

• Timeshares offer the right to stay at a property for a set period of time and can be exchanged for time at other resorts. Often, it is deeded real estate.

• Properties require a minimum income, often $50,000 or more annually, to take a tour. Both members of the couple must attend. Tours last 90 minutes to two hours.

• A salesperson will discuss how ownership works. Some resorts sell a points-based system for flexible use, while others sell fixed or floating weeks.

• A finance manager will go over pricing options, which can be $7,000 to $25,000 or more.

• Prices do not include property taxes, club dues or fees for maintenance, reservations, housecleaning or exchanges.

• If you buy in Arizona, you may cancel within seven days of signing a contract. Other states have cooling-off periods of three to 14 days.

• Do some homework before taking a tour. Many clubs offer basics about their time shares on their Web sites.

• Ask for recommendations and check with the Better Business Bureau and the state Department of Real Estate, which regulates time shares.

• Time shares generally do not appreciate in value.

• Look for signs of good management, such as desirable amenities, friendly service and good housekeeping. Ask if the property is a member of the American Resort Development Association, which follows a code of conduct.

• Several companies, including Redweek Inc. and the Timeshare Store Inc., specialize in time-share rentals and resales.

• Renting may help you decide if a time share is the right choice. A recent online search found Arizona time shares renting for $700 to $2,400 a week.

• Some time share resorts offer discounted accommodations for those who tour the property so they can try before they buy.

2006-08-14T08:14:00.000-07:00

Check Scam For Timeshare Hits Greenbelt Resident

A Greenbelt resident has recently been the victim of a counterfeit check scam, losing approximately $6,500.

The victim placed an ad on Craig’s List to list a timeshare for rent in Kissimmee, Fla.

According to the Greenbelt Police Department, the victim was contacted by the suspect via e-mail the week of July 2 through July 8, who advised that he lived in London, and was interested in renting the timeshare for himself and his family.

Greenbelt Police spokesman officer George Mathews said after several e-mail exchanges, the parties agreed on a price of $1,200 to be paid by cashier’s check. The suspect advised that his place of employment, which was allegedly paying for the trip, mistakenly wrote a cashier’s check in the amount of $6,500.

The suspect stated that it would be impossible to get the company to reissue the check in the proper amount, and asked if it would be possible for the victim to deposit the check into her account, then send back the difference.

The victim agreed and deposited the check and sent the difference back to the suspect by way of Western Union.

A few days later, the victim’s bank contacted her and advised that the suspect’s cashier’s check was counterfeit.

The suspect then contacted the victim by e-mail and advised that as they left the Western Union with the money that the victim sent to them, they were robbed by three suspects who took all of the money and stabbed his wife.

The suspect then asked the victim to return $1,000 of the $1,200 that the victim paid to the victim, telling the victim that she could keep $200 for all of her stress,” Mathews said.

The victim did not send the suspect any more money.

The Greenbelt resident finally reported the incident on July 15.

Mathews said the Greenbelt Police Department is investigating and will try to work with the Police Department in London to see what they can do.

2006-08-03T04:53:00.000-07:00

Destination Clubs: Understand The Risks

While the benefits of destination clubs are compelling, the industry is still in its early stages and not without its risks. With membership deposits ranging from $30,000 to $3 million, consumers must be assured that the club they’re joining is one they can enjoy for years and that they will receive the refundable portion of their deposit back if they choose to leave.

In 2006, several new startups have launched, some clubs have stalled in their growth, and an industry pioneer has declared bankruptcy. Meanwhile, leading destination clubs continue to attract members and outside capital while expanding their portfolio of homes and services.

Helium Report suggests you consider four categories of risk when evaluating destination clubs: Business, Reservation, Resignation, and Member Deposit Appreciation.

Business Risk

A sustainable business model must serve as the foundation to ensure member deposit obligations can be met at any and all times. Most clubs commit to using membership deposits to acquire real estate or to be held as a cash reserve.

Operating expenses, including sales and marketing, should be covered by the non-refundable portion of the deposit and annual dues. Many clubs raise working capital to provide them with resources to get started and to survive any downturns in membership sales.

New entrants sometimes find it difficult to grow beyond the initial “charter” members. Competition within the industry is high. We expect to see consolidation among players, which will make it even more difficult for clubs with only a few homes to attract members who are looking for diverse vacation experiences.

As evidenced by the recent bankruptcy filing of industry pioneer Tanner & Haley, destination clubs need to limit the amount of leased homes in their portfolio. Helium Report recommends at least 70-80% of the portfolio should be owned to ensure a sufficient asset base to offset member deposit liabilities.

Reservation Risk

The destination club concept is fundamentally a shared usage model. Prospective members must realize they’re unlikely to reserve the same home, for the same week, every year. In that sense, destination clubs differ greatly from owning a specific week in a timeshare or fractional residence club.

Instead, variety is one of the key features the clubs offer members. Members will have a combination of advanced reservations and last minute access options available to them, depending on the policies of each specific club. It’s important to see if there’s a balance of exotic resort destinations and nearby luxury homes you can access spontaneously.

Resignation Risk

As covered earlier, destination clubs need to have sufficient assets to ensure they can refund member deposits. Most clubs have a clause in the member agreement that requires two or three new member sales before you can resign your membership. Unlike timeshares, there is no secondary market for membership, so the club must have growth momentum in order for you to leave.

There is typically a time limit, however, which requires the club to refund you with 12-18 months. In a worst case scenario, a club is no longer delivering the service it promises, dissatisfied members ask to leave, and the club’s financial resources are severely strained.

Some clubs have included “wind-down” scenarios in their membership agreement to assure members of an orderly liquidation of assets if such a “run on the bank” occurs.

Membership Deposit Appreciation Risk

Several destination clubs promote programs that promise to share the upside of real estate appreciation. We’ve seen many variations on the program, all of which are designed to address consumer concerns that the club enjoys all of the profits of an appreciating real estate portfolio.

Helium Report remains cautiously skeptical of these deposit appreciation programs since they are relatively unproven. Most offer a refund of the “future value” of the membership deposit, which assumes fees will continue to increase over time. In contrast, industry leader Exclusive Resorts only commits to 80% of the amount you paid when joining.

The other clubs are selling against the industry leader with innovative models. For example, Private Escapes Platinum issued a several thousand dollar “club credit” to members earlier this year. Other clubs such as Crescendo and BelleHavens position themselves as equity alternatives where members participate directly as real estate investors.

2006-08-01T04:32:00.000-07:00

Marriott aims To Change Timeshare Image Of Scams

Timeshare holiday resort scams have become almost synonymous with travel scams, pesky salesmen and unfulfilled promises.

But Marriott International aims to change the unsavoury experience of timeshare holiday ownership in Asia with its new Marriott Vacation Club International (MVCI), Asia Pacific, which is headquartered here in Singapore.

In fact, the 79-year-old hospitality company — with 22 years of timeshare experience in the West — will be the first branded hotel name to enter the timeshare resort market in Asia.

"We are aware that there are some perception issues with the concept of timeshare in Asia, but we are confident that the Marriott name will help to positively change current perceptions to make timeshare more acceptable and desirable," said Mr Harold Derrah, MVCI senior vice-president and managing director at the launch on Friday.

For a start, the MVCI timeshare model is "bankruptcy proof" as the rights to the properties are placed in an independent trust, he added.

For a one-off payment starting from $14,000 and an annual fee of $276, members will get 12,000 points a year, which they exchange for hotel stays. Valid for the next 50 years, they can choose holidays such as a two- to four-night villa stay at the flagship Marriott Phuket Beach Club.

The number of Asian hotel resorts in the programme is expected to grow from the current four to 10 or 12 in the next five years.

Although the global timeshare hospitality industry has a turnover of US$10 billion ($15.8 billion) annually, its growth in Singapore has been marred by consumer unhappiness.

According to the Consumers Association of Singapore (Case), an average of 2,620 complaints were received against timeshare companies over the past two years. Since January, 1,001 complaints about pressurising sales tactics and misleading claims have been filed.

Case executive director Seah Seng Choon said: "We'd like to advise all consumers to know their rights. There is a three-day cooling off period, excluding weekends and public holidays, for consumers to rescind a timeshare contract. Consult your lawyer before making any commitment as the contract involves a large sum of money."

2006-07-21T05:27:00.000-07:00

Tips On Staying Out Of Timeshare Scams

Advisers with Middle America Planning, a fee-only financial-planning firm in Mount Lebanon, Pa., offer the following tips if you’re thinking about buying a timeshare in a vacation destination:

• Do not consider timeshares a financial investment. They are a method for buying future vacations.

• Never purchase a timeshare without having a lawyer review the contract.

• Resist high-pressure sales tactics and free gifts that entice you to sign on the spot.

• Never purchase a timeshare without first visiting the property. Look for signs of good property management.

• Make sure the time share is associated with an exchange company if you want to trade in your timeshare.

• Make sure the timeshare will meet your needs 10 or 20 years down the road as the vacation needs of your family evolve.

• Understand that maintenance fees may increase over time.

Follow these guidelines for a Timeshare scam free purchase.

2006-07-20T04:26:00.000-07:00

EU Plans Legislation To Thwart Timeshare Scams

THE EUROPEAN Commission was yesterday looking at ways of improving legislation so that European consumers are not scammed into signing away thousands of pounds to buy into timeshare holidays that are not what they appear.

The Health and Consumer Protection Directorate-General (DG SANCO) yesterday held an all-day stakeholder workshop on the revision of the Timeshare Directive (94/47/EC).

The meeting followed the launch of a nine-week public consultation on the Directive on June 1, which aims to identify gaps in the legislation’s scope.

The purpose of the workshop in Brussels was to collect key stakeholders’ and Member States’ views on the current state of play in the market for timeshare and other long-term holiday products, with a view to identifying regulatory needs, and improving market outcomes for consumers and businesses.

The workshop provided a forum for Member States, industry, consumer associations, academics and the European Parliament to exchange views on issues including new ‘timeshare-like’ products and travel discount clubs on the market, the ‘cooling-off’ period and the scope for any future extension of the legislation.

The Commission will take the results of the workshop and consultation into account when examining any potential extension of the legislation.

On June 1 the Commission launched a wide public consultation on the Timeshare Directive (94/47/EC). Timeshare contracts entitle consumers to spend a period of time (at least one week) in a holiday property for at least three years. The Timeshare Directive sets minimum standards for consumer protection throughout the EU, such as ensuring that consumers receive adequate information on the property.

The legislation also seeks to prevent “pressure selling” by allowing for a cooling-off period where withdrawal is possible and money deposits are not allowed. However, some operators have introduced new timeshare-like products which take advantage of regulatory loopholes, leading to a number of complaints by consumers.

“Consumers should have every confidence that they will not be taken for a ride if they opt for a timeshare formula or similar products” Health and Consumer Protection Commissioner Markos Kyprianou said.
“I want to make sure that unscrupulous traders do not take advantage of potential clients – many of whom sign up to these products after falling in love with a holiday resort.”

Since the Timeshare Directive was adopted in 1994, a number of new products have come onto the market, such as contracts which are similar to timeshare, but where the contract is for 35 months (so-called “timeshare-like products”).

Other new products include “travel discount clubs”, whereby consumers pay a membership fee – sometimes as much as 20,000 euros – to access a booking site promising discounted air tickets and accommodation. However, some consumers are finding that the accommodation does not reach the standards promised. These new products fall outside the scope of the Directive and allow some operators to take advantage of regulatory loopholes.

The nine-week consultation is being launched along with a discussion paper, which explores a series of timeshare-related scams – identified in close cooperation with key industry and consumer groups. These mainly concern the scope of the timeshare legislation, including issues such as re-sale and exchange of timeshares. Other issues addressed include information requirements, professional and financial requirements of operators, systems of arbitration and redress, and criminal sanctions for infringements.

The Timeshare Directive is one of the eight directives which are encompassed by the review of the consumer acquis, which is currently being undertaken by the Commission. Cross-cutting issues will be examined in a horizontal context. However, some of the problems related to timeshare and certain other holiday products require more urgent action. This is why the Commission has decided to launch a separate consultation on the review of the Timeshare Directive.

On the basis of the outcome of the consultation, the Commission will come forward with proposals to address any existing gaps.

The purpose of this paper is to launch a wide public consultation on the scope and nature of the problem of timeshare scams and elicit stakeholders’ views as to possible solutions. If the findings of the consultation and meeting confirm the need for a revision of the directive the Commission will adopt a legislative proposal updating the directive towards the end of the year.

2006-07-17T04:49:00.000-07:00

Mother Defends Son In Timeshare Scam Probe

The mother of a 20-year-old man charged by police with allegedly scamming more than 60 people said her son was unknowingly involved and that he is working with the district attorney’s office to clear his name.

Woodfin police charged Jacob Denson of Asheville on Thursday with two counts of obtaining money by false pretense.

He plans to return to the area today to deal with the charges, his mother, Melody Denson, said.

“Jacob didn’t steal anything,” she said. “He’s actually trying to pay back these clients.”

Officers believe Denson and James Pridgen, 44, took a total of $150,000 in online payments for timeshares but never gave customers the deeds they were owed.

Police also arrested Pridgen on charges of embezzlement and obtaining money by false pretense. He is being held in the Buncombe County jail in lieu of a $100,000 bond.

Melody Denson said her son had worked for Pridgen since he was 13, mowing his lawn and later as a partner in Timeshare Liquidators LLC, a company that scammed timeshare owners through the Internet. Pridgen operated the company out of his house near Weaverville.

Woodfin police Detective Don Guge said the timeshare scam was first uncovered when Resort Acquisitions Inc., a separate timeshare business in Woodfin, was allegedly broken into in June. He said desks and chairs were taken and $68,000 of the company’s money was withdrawn from the bank.

But Denson’s mother said the money and the items taken from the office were under Denson’s name.

“Everything that was taken out of that office was on Jacob’s credit card,” she said. “So it was legally Jacob’s.”

Guge said Pridgen and Denson were part owners of Resort Acquisitions. He also said Denson was listed as the owner of Timeshare Liquidators.

After the alleged break in, Guge said he started receiving complaints from Internet customers in 22 states and Canada who never got the deeds transferred for their timeshares.

“We’re still working on where the money went to,” Guge said on Sunday.

Guge said Denson had gone to Jacksonville, Fla., after he started receiving the complaints.

Denson’s mother said her son was not running from the law and told her he was in Florida working with an uncle’s attorney to try to straighten the matter out. She said his whereabouts were known by the Buncombe County District Attorney’s office and that he will return to the area today.

The district attorney could not be reached for comment on Sunday.

Todd Abernathy, who lives near Charlottesville, Va., said he had paid for a timeshare at a resort in Virginia Beach. He said he bought it in early June at an eBay auction through Timeshare Liquidators.

He said he might be a victim. He said he paid more than $5,000 for a week at the resort villa, but has not yet received a deed for his purchase.

After July 19, Abernathy said he was going to file a timeshare scam dispute with eBay to try to get his money back.

“It’s sort of floating out there at limbo,” he said about his payment. “As to whether I get anything back, that’s some of my concern.”

This timeshare scam is not your usual timeshare scam, everybody is inocent.

2006-07-11T04:51:00.000-07:00

Maui Creates It's Own Timeshare Scam Against Potential Owners

With nearly 2,300 new timeshare units set to be built by 2010, Maui County officials are trying to discourage more development by imposing higher taxes, even though a new study they commissioned found that timeshare owners weren't a drain in the economy.

Despite the study's findings, some county officials say timeshare development is out of control and threatening the direction of Maui's carefully tended upscale tourism industry.

"I don't see it being a need in our county to have timeshare," said G. Riki Hokama, Maui County Council chairman. "That's not the visitor I want here."

The dramatic growth of timeshare projects prompted the county last year to create Hawaii's first property tax timeshare scam category specifically for those properties. The tax is $14 on every $1,000 of a property's assessed value. Officials on Kauai and the Big Island are considering similar taxes.

The Maui County Council also proposed that timeshares have their own zoning category so that government can regulate development. But state legislators shot down the proposal earlier this year.

Even as brands like Ritz-Carlton get into what they call the "fractional ownership" of luxurious condominiums at Kapalua in 21-day increments starting at $300,000, Maui officials say they are convinced timeshare owners are contributing less in taxes than hotel guests and requiring more public services like roads and water.

Officials say they also are concerned that converting hotels to timeshares will put people out of work and will lead to more people crowding the highways because time shares are usually booked 52 weeks a year, unlike hotels that rarely hit 100 percent occupancy.

Maui Mayor Alan Arakawa said the objective of the tax is to discourage wholesale conversions of large resorts into timeshares, which he believes takes away from the convention business and will send the wrong message to affluent visitors.

"We have to be careful that we don't overdo it and don't destroy the very industry that's brought us to the top," Arakawa said.

The council paid Hospitality Advisors, a Honolulu-based tourism consultancy, $75,000 to prepare a report reviewing the impact of timeshare conversions. The study, based on state data, found that timeshare visitors account for only 1.8 percent of the daily island census and that what is really driving the overcrowding is the number of people moving to Maui.

While timeshare visitors spend less than hotel guests, they stay slightly longer and spend more per person per day on nonlodging than condominium visitors, the study found.

"There's no question that tourism contributes to the pressure on Maui's infrastructure," said Joseph Toy, president and CEO of Hospitality Advisors. "However, we were asked to look specifically at impacts from timeshare conversions, which appear to be a small part of the overall market."

Executives of timeshare properties say they already are paying their fair share in taxes, which are passed on to customers through the transient occupancy tax applied to maintenance fees. Timeshare managers are still unhappy about the jump in the new property tax from $8 per $1,000 in 2005 to $14 this year.

"When you jump it up 75 percent in one year that's a real shock," said Chad Jensen, general manager of Marriott's Ko Olina Beach Club and chairman of the Hawaii chapter of the American Resort Development Association. "It certainly doesn't help timeshare development because it adds to costs for developers because they're responsible for paying for the unsold weeks."

Hotel executives contend the foremost benefit of timeshare is its high and consistent occupancy, which tends to be less affected by world events and downturns in the economy.

"What it does for the local economy is keeps people employed," said Craig Anderson, general manager of the Westin Maui. "If this wasn't something people were interested in it wouldn't be selling. People are voting with their pocketbooks and companies are responding to market demand."

Is this a goverment created timeshare scam?

2006-07-10T04:57:00.000-07:00

Timeshare Travel Clubs Rocked By Claims Of A Scam

Lies and misinformation are among the scandalous claims levelled against timeshare giants Flexi-Club and the Club Leisure Group, accused of swindling tens of millions of rands from clients.

The matter has been investigated by the Department of Trade and Industry, and CLG is currently the subject of a second investigation by the South African Revenue Service.

Unhappy clients from Flexi-Club and Club Resorts International (CRI), both of which are managed by a CLG subsidiary, have also amassed scores of written complaints and signed affidavits placing serious allegations at the feet of Flexi-Club managing director and CLG chairperson Stuart Lamont. Lamont has distanced himself and his companies from the allegations.

At the heart of the matter is the claim that Lamont helped to engineer a timeshare scam in 2000 whereby a management company, Club Leisure Management (CLM), was formed together with the Southern African arm of global timeshare leader RCI (Resorts Condominium International).

Aggressive marketing drive

In the same year, RCI also purchased CRI Operations, the company with the management contract to administer CRI Club, a popular, points-based timeshare concept.

S'bu Mngadi, managing director of RCI's Global Vacation Network for Africa, told the Saturday Star this week that RCI soon afterwards sold CRI Operations to CLM. RCI and Flexi-Club continued to own CLM, with RCI as a minority shareholder, according to Mngadi. CLM then took over the management of the CRI club.

According to information received from several clients, former CRI consultants and a former director of the CRI Management Association (CRIMA), Lamont embarked on an aggressive marketing drive in 2002 aimed at converting CRI clients to Flexi-Club.

Clients allege, many of them in signed affidavits, that "arrogant and aggressive" Flexi-Club consultants began contacting them, spinning a yarn that CRI was in financial difficulty, that it had been bought over by Flexi Club and that clients had no option but to buy into Flexi-Club. In order to do this, clients had to purchase Flexi Club points, at an average cost of about R5 000.

Johannesburg businessman Bruce Phillips said he forfeited R30 000 in levies and many thousands more in legal fees after he was forced to hire an attorney to extricate himself from his timeshare scam.

'They never stopped phoning'

A CRI client for many years, Phillips said he became disillusioned with constant problems trying to secure availability at his preferred resorts. The last straw came a few years ago when he was phoned "non-stop" by a Flexi-Club consultant, trying to convince him to convert his points.

"They never stopped phoning - at night, during the day and over weekends. They wanted me to convert my points to another scam and made all sorts of overtures about CRI going under and being taken over by Flexi-Club," an angry Phillips said.

According to figures announced at a CRIMA meeting last year, CRI had fewer than 10 000 members, a loss of more than 25 000 members. Members were told that 13 300 CRI members were converted to Flexi-Club during the past three years.

A former CRIMA director, who asked not to be named, said the CRIMA board of directors, along with the directors of CRI Operations, should be held accountable for "this in-house type of incestuous breeding".

"They are supposed to protect and promote the CRI points system and yet they have allowed consultants to actively convert people over to Flexi-Club. They knowingly permitted the conversions...

"You can't have different brand names under the same roof if you've got the one screwing the other," he said.

"It makes commercial sense if you can get R5 000 out of a whole list of people. If you convert 10 000 people, you've got R50-million," he added.

Responding to the timeshare scam allegations, Lamont denied that Flexi-Club consultants were behind the strong-arm tactics and instead blamed independent marketing firms. He said he would be very interested in investigating the claims. He said Flexi-Club was "very, very fussy" about conversions and that they were not entered into unless the person was made "fully aware of all the details".

He also claimed that several CRI members had complained about deteriorating rooms and timeshare resorts and had requested changing over to Flexi-Club.

"CRI is still strong and it's still operating. It is not insolvent and there is nothing wrong with it," Lamont said - but CRI clients canvassed by the Saturday Star slammed Lamont's comments.

Dorothy Higgins, of Johannesburg, was offered to convert at the "special price" of R3 300 and was contacted by consultants claiming to represent CRI.

"They tell you they are phoning from CRI, and then when you meet them, they say they are actually from Club Leisure Management and they are representing Flexi-Club.

"They'd say that CRI was definitely going under," Higgins said.

The comments coincide with a warning issued this week by credit information ombudsman Manie van Schalkwyk about "aggressive timeshare salespeople".

Van Schalkwyk said his office had seen an upswing in the number of consumers being blacklisted for timeshare purchases and warned people to "read the fine print or wind up in a timeshare scam" and not be bullied by aggressive sales tactics and "partial truths".

He added that although there was currently no legislative power over the timeshare industry, the Timeshare Institute of SA (TISA) was mandated to deal with complaints.

The acting executive director of TISA, Alex Bosch, who is also a director at CLM, said TISA was aware of the allegations and had referred the complaints to the Department of Trade and Industry (DTI) in 2002. As far as TISA was concerned, there was "no merit in certain of the allegations".

Ebrahim Mohamed, chief director of the office of consumer protection at the department, said the department's investigation had revealed that the manner in which certain Flexi-Club agents were approaching CRI members was "indeed problematic".

"It was then agreed between the DTI and Flexi-Club that changes had to be effected with immediate effect.

"Flexi-Club agents had to explain to converting members that CRI was not in liquidation," Ebrahim said.

Sources have confirmed that an investigation into the Club Leisure Group has also been launched by the SA Revenue Service. The Competition Commission is also keen to look into the matter, according to its enforcement and exemptions manager, Thulani Kunene.

The operations manager at CLM, Peter Snyman, also responding on behalf of Lamont, said permission to market Flexi-Club to CRI members was obtained from the former CRI board because members were struggling to "receive holidays as a result of the exceedingly poor mixture and availability of timeshare properties in their property portfolio".

He said the conversion fees were necessary in order to enable CRI members to become Flexi-Club members.

"We do not condone any bullying behaviour with potential clients. Staff are trained to show potential members the benefits of joining Flexi-Club, and members are... required to make up their own minds while being in the middle of a timeshare scam."

2006-06-29T04:55:00.000-07:00

Beware of Timeshare Resale Scams

If you own a vacation timeshare - the use of a vacation home for a limited, pre-planned time - be cautious of bogus resale companies who take advantage of anxious sellers in an overcrowded market.

Jim Finn, President of the Better Business Bureau advises, "Unscrupulous companies typically contact you by phone, mail or the Internet asking you to call a phone number about your timeshare. The salesperson may claim that the market is "hot" for resales, when in fact the market varies considerably depending on location and the prime season for that particular unit." For an advance fee of about $300 to $700, some salespeople promise to sell your timeshare for a price equal to or greater than your purchase price. They may claim to have a list of sales agents and potential buyers. While the seller may possess these lists, it is unlikely the parties are interested buyers. Finn adds, "To further entice you, they may promise a money-back guarantee or a government bond if they cannot sell your timeshare within a certain amount of time. In the end some owners have found that their timeshare did not sell, their fee was not returned and they were given a bond worth as little as $60 to $70."

If you are considering reselling your timeshare and are approached by a company offering to help, the Better Business Bureau recommends the following:

Do not agree to anything over the telephone until you have had a chance to check out the company.
Ask the person to send you written materials.
Ask for references, including address and phone number and contact them.
Ask where the company is located and in what states it does business.
Ask if the company's salespeople are licensed to sell real estate where your timeshare is located. If so, verify this with the state licensing board.

Find out if the company charges a commission. Do they handle the entire closing and provide escrow services? Do they charge an up-front listing or advertising fee? What does it cover and is it refundable?

Be wary of companies charging an advance "appraisal" fee for services. Consider opting for a company that offers to sell for a fee only after the timeshare is sold.
Contact the Better Business Bureau, state Attorney General's office, and local consumer protection agencies in the state where the company is located to find out if complaints have been lodged against the company.

Keep in mind that there are other resale options. You may try selling your timeshare yourself, by placing an ad in a newspaper or magazine, or contacting a real estate agent familiar with the area. If all the timeshares have been sold in your development, consider asking the seller to establish an on-site resale office. As an alternative, you may consider an exchange program. For a fee, these programs allow you to arrange trades with other resort units in different locations.

2006-06-26T04:56:00.000-07:00

Timeshare Regulation Called For In Cayman Scam

Many former club members of the defunct Indies Suites say government regulation of timeshare properties is needed to avoid future scams similar to what they faced after Hurricane Ivan.

Most of the former timeshare owners of Indies Suites have received their negotiated settlement over the past two months, however many remain angry and disappointed with the way the purchase of their Cayman vacation spot turned out.

After a Grand Court decision to liquidate the Indies Suites Ltd. was overturned by the Court of Appeal late last year, the majority of timeshare owners decided to accept a settlement, which amounted to about 20 cents on their invested dollar, what a scam.

None of 16 former club members who responded to questions posed by the Caymanian Compass thought the settlement was fair.

“How can the settlement be considered fair when I used my timeshare for only three of the 99 years (I contracted for) and had 20 per cent of my investment returned to me?” asked former club member Arthur Rosen.

Another timeshare owner, Barbara Armitage, had sympathy for Cayman’s circumstances after Ivan, and even made a relief donation to the Red Cross, but she had no sympathy for Indies Suites director and front man Ronnie Foster.

“In the light of the huge damage that was done (by Hurricane Ivan), I would have accepted the settlement as fair if the property had been fully insured and the insurance company just couldn’t pay fully,” she said. “Because (Mr. Foster) lowered the amount we were insured for, of course I don’t think it was fair. We lost 80 per cent of our investment and he was not held responsible.”

During the Indies Suites Ltd. court proceedings, it was discovered the property was approximately 50 per cent underinsured after the company lowered its coverage. Rather than make up the shortfall from its own capital, Indies Suites sold the property – without consulting the club members – to St. Matthew’s University School of Medicine to be used as a dormitory, what a scam.

Although the negotiations for the sale appeared to start as early as October 2004, and the property was transferred in January 2005, club members were not informed of the timeshare scam until May 2005.

In the interim, several club members met with Mr. Foster during the early part of 2005 to discuss the property, and he told them he was working on the insurance settlement and still hopeful of rebuilding even thought the property had already been sold. The company’s website also misled club members into believing the property might be rebuilt.

The fact that the property was underinsured and then sold without their consent has many former Indies Suites’ owners calling for government regulation in Cayman’s timeshare industry.

“At this time I believe the Cayman Islands Government should learn the damage that can occur from improperly funded insurance plans,” said former club member Marc Weiss. “Reserves and other insurance laws in place in the U.S.A. could be a model for the Cayman Islands Government to follow.”

Rod Broome, who led the group of 230 club members in their Grand Court efforts, suggested insurance companies be required to report to regulators if any timeshare owner/operator lowered or cancelled its policy.

Because the Indies Suites records were destroyed during Hurricane Ivan – or possibly afterwards according to a report filed by the liquidator Chris Johnson Associates – it is not know for certain how many club members there actually were, or who they were. Mr. Broome thinks this also needs to be addressed through regulation.

“Owner/operators should be required to register with regulators the names and addresses of all persons that purchase a timeshare,” he said.

Many of the former Indies Suites owners viewed their timeshares as investments, and many planned to 99–year term down to their children. Former timeshare owner Lorri Peterson thinks the government needs to protect investors.

“The investor should feel confident that they are protected from a situation such as Indies Suites,” she said.

Former Indies Suites owners did not view Cayman’s judicial system very favourably. “I believe the Cayman judiciary system gave significant preferential treatment to Ronnie Foster due to his and his family’s status on the island,” said Mr. Weiss.

Several other club members wondered why a criminal investigation was never initiated, especially after some of the findings in the Official Liquidator’s First Report to the Creditors of this scam.

Mr. Broome pointed out that the liquidation order was overturned on a United Kingdom case precedent from the 1800s. In the UK, the law was amended many years ago so the 1800’s case is no longer valid in liquidation cases. Cayman, however, is still using the pre–amended UK law.

The Indies Suites Court of Appeal decision was precedent setting in that it was the first successful challenge to the way the liquidation cases have often been presented in Court in the Cayman Islands.

“The Cayman Islands judiciary system is archaic,” said Arthur Rosen. “(It) must realise that its antiquated laws that governed the land 150 years ago may not be appropriate or may even be obsolete in today’s world.”

Not only were the club members disappointed with the judicial outcome of their predicament, they found no help from the government or private sector organisations with this timeshare scam.

2006-06-23T04:47:00.000-07:00

Timeshare Boss Escapes Jail Term For Scam

Fred Fogg, 61, ran Thurnham Leisure of Aalborg Square until it collapsed with debts of £5 million in 2004 from a long running timeshare scam.

He is now bankrupt and barred from being a company director for 11 years.
Fogg, who formerly lived in Haverbreaks, appeared in court for sentence on Monday.
He and friend Ellis Eastham admitted defrauding finance companies of more than £180,000.

Burnley Crown Court was told Fogg turned to crime to try to save his ailing company. He persuaded Eastham to allow his name and bank account to be used in the timeshare scam. Finance companies, supplied with fake documents, believed new equipment was being supplied to Thurnham.

But the company, which once turned over £10million a year, was broke.
Fogg claimed he fully intended to repay the money which he said he used to try to keep his timeshare scam afloat.

He had not lined his own pockets, he said. Fogg, who now lives in Styal, Cheshire, is back in timeshare, selling holidays to Russians, said defence lawyer Mr Anthony Cross. The ex-Thurnham boss got two years, Eastham from Whalley got nine months. Both terms were suspended for nine months. Neither had previous convictions.
Judge Beverley Lunt told Fogg his conduct merited custody. The timeshare scam was for personal gain.

"But enough has been taken from you so I won't take your liberty," she said.
"I think you need something hanging over you, so you are not tempted to do anything like this again."

Prosecutor Mr James Rea said the fraud was sophisticated with Fogg principal beneficiary. Mr Cross said Fogg was Thurnham's main shareholder. At one stage the company – principal asset Thurnham Hall, near Lancaster – employed 600.
Fogg went into "incredible debt", remortgaging properties and raising about £350,000 from his and his family's assets to try to keep the timeshare company afloat.

Fogg had lost everything. His marriage had broken down, his children had been badly affected and he was a broken man.

Sunterra Europe, based in Caton Road, Lancaster, bought Thurnham Hall and other company assets. There was more bad news for Fogg on Wednesday. Lancaster County Court ordered him to pay £1,801.90 costs incur-red by the Department of Trade and Industry in investigating the timeshare scam of Thurnham.

2006-06-21T04:50:00.000-07:00

Timeshare Complex Owner Said Carbon's Records Were A Scam

The owner of a timeshare development in Kidder Township successfully convinced the Carbon County Tax Assessment Appeals Board to reduce the taxable value of his property by 6 percent, or about $408,000.

The fair market value was reduced from $7,156,610 to $6,748,590 after W. Jack Kalins, owner of Vacation Charters Ltd., informed the appeals board that the county had inaccurate records regarding the number of timeshare units and other details pertaining to his Willowbrook development.

The new assessed value, which is half of the fair market value, is $3,374,295. That means Vacation Charters will pay annual property taxes of $10,409 to Kidder Township, $126,873 to Jim Thorpe Area School District and $23,259 to the county.

The assessment scam will save Vacation Charters $9,707 in property taxes. It also owns Split Rock Resort and Mountain Laurel Resort near Lake Harmony.

Before the reduction, the company paid $11,039 to the township in taxes, $134,544 to the school district and $24,665 to the county.

Kalins was pleased with the results Monday, calling the appeals board a ''knowledgeable group.''

''They had some things incorrect on the scam card,'' Kalins said. ''They corrected the record card which in effect brought it in line with where it should be.''

In May, Kalins argued before the assessment appeals board that the county records incorrectly stated the number of units, construction cost per square foot and zoning status at Willowbrook.

The facility currently contains 56 timeshare units in three buildings. Two of the buildings contain 16 two-bedroom timeshares. The third building contains 12 two-bedroom timeshares and 12 three-bedroom timeshares. County records incorrectly stated that Willowbrook had double the number of units.

A fourth building is under construction at the site and should be completed by 2008, Kalins said. In all, Vacation Charters plans to erect 11 more buildings. Eventually the site will have 14 buildings with 320 time-share units.

Who posted the timeshare scam on this story?

2006-06-20T04:37:00.000-07:00

Buy Time With Care, Do Not Enter The Timeshare Scam Of The Year]

EVER entered a lottery at the supermarket and days later you receive a call? You've won. Well, sort of. There's a catch.

"If you could just come in and watch a 90-minute promotional video..." the operator says.

Or have you heard the latest radio ads? If you have $100,000 equity in your home then, wow, you could own a luxury holiday destination for no cost. It's all part of the hard sell for timeshare scams.

Timeshare scams are just that, buying shared time. Usually they are sold as accommodation at a holiday resort or unit or credits in a club which can be redeemed as a holiday. Potential buyers are often pressured into signing on the spot with "sign-up" discounts. But there are laws and strict regulations governing the sellers of timeshare arrangements.

Under the Corporations Law, timeshare scams are regarded as "managed investments" where money is pooled from lots of different investors to buy shares in an asset. With timeshare, the asset you are buying is time.

The Corporations Law says those selling the scheme, the operator, must hold an Australian financial services licence and provide you with a product disclosure document. It should set out features of the arrangement, fees, benefits and risks, commission and information about the complaint process.

Before signing there are key points to consider.

It is crucial that you find out when you can use the timeshare property. If you think you are going to use it once a year for your annual four-week Christmas break you will be disappointed. Often timeshare is restricted to twice a year, and to only a couple of days at a time.

Remember, you are not buying property. Operators can trap the unwary by selling it as "investment" in property. It is neither an investment nor property.

There really is no re-sale market – so you won't make money from it – and you aren't buying the property, you are buying into a trust which you then use as time. Most importantly, you are entitled to a 10-day cooling off period. It may not be a timeshare scam, but it is not what you think.

2006-06-12T04:59:00.000-07:00

Eight Arrested In Spanish Crackdown Against Timeshare Fraud Gang

Among other things, it contacted people who owned timeshare property and offered to help them sell it, persuading them to pay money for notary fees and taxes for a transaction that was never going to take place.

Spanish police have arrested eight alleged leaders of a timeshare fraud scheme in the Costa del Sol resort area, accusing them of defrauding 15,000 people and even posing as a collection agency offering to help people it had already cheated.

The gang has been operating since 2000 and made profits of euro18 million (US$22.96 million), the National Police said. The men arrested this week are four Britons, two South Africans and one each from Belgium and Norway. Their names were not given.

The gang used more than 300 shell companies and more than 1,000 employees to carry out the alleged fraud, the police said in a statement.

Among other things, it contacted people who owned timeshare property and offered to help them sell it, persuading them to pay money for notary fees and taxes for a transaction that was never going to take place, the police said.

The gang also sold timeshare slots it did not possess to more than one person, and in cases when it was actually handling a property, sold it to several parties.

Police said it also posed as a collection agency, offering legal proceedings to help people who had been cheated by the gang's own bogus timeshare firms, the police said.

2006-06-08T04:32:00.000-07:00

Costa Timeshare Scam Had Tenerife Connections

Four Britons are among eight people arrested in what police are calling the biggest timeshare scam they have ever uncovered in southern Costa del Sol. It was based in the holiday towns of Fuengirola and Mijas.

Over 15,000 tourists are thought to have been duped by the gang which specialized in setting up and closing down new companies and which had relocated to the Costa del Sol in 2000 after operating for some years in south Tenerife.

Led by a South African named as Willem P., the gang clawed in around €18 million over a five year period. They had about 1,000 people involved in the timeshare scam for them as touts and phone sales staff.

2006-06-06T04:53:00.000-07:00

Holidaymakers To Get Better Rights Abroad After Timeshare Scam

Better rights for British holidaymakers who return home to find they've bought faulty goods elsewhere in Europe have taken a step forward.
The European Small Claims Procedure (ESCP) is set to streamline the process for taking legal action if you've bought shoddy goods from a shop on the Continent, whether in person or online.

Currently, you can only make a legal claim under the system of the country where you bought the goods. This can be slow and expensive and means getting a lawyer involved.

Which? evidence
Which? submitted evidence to the government on the plans. This showed that consumers were struggling with a system which required them to get two lawyers and deal with a court abroad. We believed many were giving up their claims.

Since European Justice Ministers met recently, the text of the plans has been agreed, and includes the evidence from Which?.

Which? Principal Campaigns Lawyer Ingrid Gubbay said: 'Which? has been campaigning for years to make it easier for consumers to get cross-boarder redress when they have problems with a timeshare, holiday or goods brought abroad. We're delighted that the evidence Which? submitted has been included in the final plans.'

Video conferencing
The new system will cover claims valued at less than 2,000 euros. Claim and defence forms will be the same in all the European languages and courts will be encouraged to decide claims on paper where possible, using phone or video conferencing if oral hearings are felt necessary.

Parties won't need to be legally represented if they don't want to be, and the process for enforcing judgements in other EU states will become easier.

The proposals will now go to the European Parliament and are expected to be endorsed, but there's no date yet for when they might come into force.

In March, the Court of Appeal ruled that shoppers who bought items abroad on their credit card were entitled to the same level of protection from their card provider as those who bought items in the UK. This means that if you spend more than GBP 100 on your credit card on an item abroad, if something goes wrong - for example the item was faulty - you can claim from your credit card company rather than the shop. This should slow down the timeshare scams!

2006-06-05T04:52:00.000-07:00

Angry Victims Buy Ambulance To Tail Firm's Timeshare Scams

TWO timeshare victims who lost thousands of pounds are tailing the firm' s salesmen in a 'scambulance' to raise the alarm.

Campaigner Allan Thompson bought the old ambulance on eBay and tours the country to warn potential customers off timeshare firm Sunterra's scam.

Allan, 57, an oil rig worker, and wife Christine spent thousands on 'points' which they found were not enough to get the holidays they wanted.

Their experience with the firm happened seven years ago but they have dedicated themselves to warning others about it ever since.

The Sunday Mail won compensation for some victims six years ago after revealing how many had bought worthless timeshare "points in a timeshare scam."

Others lost thousands to the firm that renamed itself Grand Vacation Club and now uses other firms to sell their schemes.

The Thompsons research their sales tours and park the Scambulance outside. They were at the Ramada Jarvis hotel in Glasgow city centre eight days ago. Allan said: "I suppose it's turned into a bit of a hobby.

"We bought an ambulance for £2300 and renamed it the scambulance. We travel wherever Sunterra hold their sales pitches."

Christine, 50, said: "We do this because we're absolutely bloodyminded. It's a national scandal."

English-based Sunterra, who sell timeshare breaks in the UK and worldwide, use other companies to sell their holiday scams.

We told how many customers found the points they have bought are not enough to buy the breaks they were promised.

When they complained to Sunterra, they were told it is nothing to do with them and they should take it up with the company which sold them the deal.

But the front firms selling the breaks quickly disappeared before re-emerging using another name.

Allan, of Bearsden, near Glasgow, said: "We paid more than £8000 in 1999 after being told a string of lies at one of these sales meetings.

"We and the other campaigners were victims of a mis-selling timeshare scam. Sunterra say they have lots of happy customers - but Harold Shipman had plenty of happy patients."

Sunterra chief executive Nick Benson said: "This is the first I have heard of this.

"I will ask our member services team to have a look at these complaints to see if there is a way to resolve the issues.

"We have 90,000 member families in Europe and the vast majority are very satisfied, and do not think they are in the middle of a timeshare scam."

2006-06-02T04:53:00.000-07:00

Police Arrest Ringleaders Of Costa Del Sol Timeshare Resale Scam

Operación Trafalgar was the code name given to the recent police operation which has hit the heart of the biggest timeshare scam yet to be discovered. In fact it is estimated that the organisation could have cheated as many as 15,000 people all over the world, according to the Malaga Provincial Police Station. The majority of the victims are tourists from the UK, Germany and Belgium, among other European countries.

It is calculated that since the group moved to the Costa del Sol in 2000 they have pocketed some 18 million euros. They used as many as 300 firms, which tended to appear and then disappear just as quickly, employing around 1,000 people during this period. Such is the scale of the organisation that it is thought that they are responsible for 90 per cent of all timeshare scams affecting British buyers on the Costa del Sol, explained the police.

On Friday last week eight people of South African, British, Belgian and Norwegian origin, allegedly the leaders of the fraudulent organisation, were arrested in Fuengirola, Mijas and Coín.

One of them was W.M.P., a 58 year old South African, who is considered the ringleader of the scam. The police believe that, with the help of the others, he controlled the network of firms and bank accounts. Also arrested last Friday was 32 year old British man M.D.K., responsible for drawing up paperwork and obtaining lists of thousands of timeshare owners. The others were J.V. (Belgian, 51), G.I.K. (Norwegian, 48, and wife of W.M.P.), W.S. (44), S.S.R. (53) and R.Q.M. (37) all British, and the South African L.O. (49).

According to sources close to the investigation all the detainees have been released with charges after appearing in a Fuengirola court. However one of the British men, R.Q.M., has stressed that he was not even taken to the court, was only detained for an hour, and has no connection with the matter.

The group began to operate on the Costa del Sol, having arrived from the Canaries, in 2000. They set up a network of companies legally registered in Spain, although after operating for a few months the firms would vanish and reappear again with other names in other premises.

Using a series of telephone operators they contacted owners of timeshare apartments, offering them the option of selling. “You own a holiday package valued at 6,000 euros; I have an investor prepared to pay 30,000”, would be a typical first offer. Tourists who took the bait were then asked for a bank transfer, often around 1,200 euros, to cover paperwork and expenses. Time would pass and they would see nothing of the promised investment. Meanwhile the swindlers contacted potential buyers, often selling the same product to several different customers. Furthermore they later contacted their victims again, offering the services of lawyers to act against the original conmen, persuading them to hand over money a second time. This is one big timeshare scam away from the U.S.

2006-05-30T05:05:00.000-07:00

Large Timeshare Scam Broken Up On The Costa Del Sol

Eight people have been arrested in connection with a large-scale timeshare scam which is alleged to have affected more than 15,000 people and which resulted in profits of 18 million €.

It’s known that the arrested come from Britain, South Africa, Belgium and Norway, and that they concentrated their efforts on the British and central European public.

The timeshare scam arrests were made in Fuengirola, Mijas and Coín.

The names we have so far are 58 year old South African Willenm Marthinus Prinsloo, who is said to be the brains of the whole scam, 32 year old Briton, Malcolm David Kennedy who is thought to have looked after documentation, 51 year old Belgium, Johannes Vlemmings, Gunn Iren Klansen a 48 year old Norwegian married to the boss, 49 year old South African Leon Oelofse, and three more Britons named as 44 year old Willy Smieja, 53 year old Steven Stewart Ross, and 37 year old Rupert Quentin Marshall.
The gang worked from rented accommodation which they then abandoned moving on after a few months.

One of the 300 names used by the group was Planit Estates and police think that more than 1,000 people were implicated in the carrying out of the timeshare scams.

They say that could be more than 90% of all the timeshare scams carried out in the British timeshare market on the coast in recent years.

Police say the group moved to the Costa del Sol after working first on the Canary Islands. A 22 calibre pistol, computer and other documents have also been recovered as part of the timeshare scam.

2006-05-23T04:48:00.000-07:00

Is This Considered A Timeshare Scam?

Imagine having your retirement nest egg wiped out in a scam. That's what happened to a Henderson couple. They invested $250,000 with the promise of a good rate of return on their money and then a few months later the interest checks quit coming. The quarter of a million is now gone as well.

Paul and Donna moved to the valley just six years ago. Now they plan to retire here despite the fact that Las Vegas is where they were scammed out of an inheritance they received after Donna's mother passed away.

Through the advice of a friend, they invested the entire inheritance into a chain of timeshare vacation resorts.

Paul said, "We asked him, 'is this a timeshare?' He said, 'No, no, no. This is not a timeshare. It's an investment and you'll get a 9-percent return on your money."

Before signing on the dotted line the couple spent a week in Cancun touring the timeshare properties making sure the destinations existed. It was a trip that basically sealed the deal. Sure enough, after signing the contract the interest payments started to arrive. Less than a year later their troubles started when the money stopped coming.

Paul said, "It's a total of about 12 months that we haven't received any interest payments on our money at all."

Despite the upscale appearance of the properties, a sophisticated presentation and a contract that looked legit, Paul and Donna now realize it was all an elaborate scam, but not the usual timeshare scam.

Paul said, "It would have made life just a little bit easier, a little nicer... We're still going to do things but it just irks the heck out of you that someone would take advantage of you like this."

According to local attorney Bob Massi, Paul and Donna played into what's known as a "ponzi scheme, not a timeshare scam." Last year alone these types of illegal pyramid schemes "duped" innocent investors out $30 billion.

Bob Massi explained, "Ponzi scams are all designed to make the investor believe they're getting a return on their money. The people that first start out are getting a return on their money, but the ultimate scheme is the people that are last in line are the one that's going to loose the money. So, it's all really a pyramid scheme. It's just a different way of doing it."

While Paul and Donna continue to search for ways to recover their money back, it's a painful lesson they are ready to put behind them.

Donna said, "But if you eat yourself up in anger everyday you're not going to be able to carry on and be the person that you want to be. It's not meaning that we forget about what's happened to us, but it's not going to eat me up."

Paul added, "I'm not going to ruin the rest of my life... I still want to live and enjoy what's going on... Yeah, I've lost an opportunity to do a little bit more than I wanted to but I'm still going to enjoy the rest of my life."

There is a slight glimmer of hope.

The State of Arizona went after the owner of the same timeshare resort company after receiving 350 complaints. Just two months ago a settlement was reached that will provide some $20 million to pay off Arizona investors. But so far there's little help for investors in Nevada who have been taken by this close enough to a timeshare scam.

2006-05-22T04:55:00.000-07:00

You'll Pay For 'Free,' One Way Or Another In A Timeshare Scam

"I was swindled by a credit card promotion that promised two free tickets if I sign up," e-mailed a reader, "but when I tried to redeem, the promoter referred to fine print requiring me to stay six nights at one of several participating timeshare hotels -- all of them fancy. I got on the Web and found I could get a room at one of them for about $150 a night. But when I called to redeem, the agent told me that I couldn't use the Internet price; instead, I had to pay $350 a night through the promoter's agency.

"At $150 a night, the free ticket offer looked good, but at $350 a night, forget it. I wrote the card company and the federal Office of Thrift Supervision, but all I received back were apologies and 'we're so-o-o sorry.' This Scam Is Not a pretty picture!"

Ugly, indeed. Fortunately, my reader didn't bite. But his tale of woe illustrates -- again -- a timeshare scam that has been around the travel industry as long as I have. The math is quite simple. The hotel's true "market" rate, which it charges real travelers, is $150 a night, and a wholesale promoter probably pays less than that. So if instead you pay $350 a night, the promoter has a minimum of $200 a night in markup. For six nights, that's $1,200 or more, which is more than enough to cover the two supposedly free airline tickets plus a tidy profit.

I've also seen the reverse approach of this scam: "free" hotel accommodations if you buy your air tickets from the promoter. In these days of so much publicity on airfares, however, it's probably easier to scam you into thinking you'll get free tickets with a hotel room rather than vice versa.

I also see quite a few "free" companion air tickets. Here, the catch is similar: The price of the ticket you have to buy to qualify for the "free" ticket is double -- or more than double -- the least expensive ticket you could buy. Unfortunately, promoters often fail to mention that qualification until after you've bought whatever you had to buy to get that companion ticket.

If you're on e-mail -- and your spam filter doesn't work perfectly -- you've probably received messages promising free travel (or maybe a plasma TV or laptop computer) if you sign up for some sort of program. Here, again, the total price of the stuff you have to buy to qualify for the "free" gift is usually puffed enough to cover that gift.

Folks, be realistic: Timeshare just isn't "free." In a timeshare promotion, you might actually get a no-cost or highly discounted two-day visit to some resort, but you still pay -- with your time rather than your money, and with your money, too, if you bite on the promotion.

Of course, phony "free" promotions are not limited to the travel industry; you see them in all sorts of marketplaces. But travel seems especially inviting: Almost everyone loves to travel, and the suppliers hype their timeshare prices so much that gullible travelers are ready to believe almost any claim. In my view, calling anything "free" if you have to buy something else to get it is deceptive and a scam. But I'm not going to hold my breath until the Federal Trade Commission clamps down on this deception.

Most travelers have learned the basic laws of the consumer marketplace: There is no such thing as a free lunch. If it looks too good to be true, it probably is too good to be true. When an advertiser tells you you've been "specially selected" for some promotion, what you've really been selected for is a fleecing. A really big discount off a phony, inflated list price is often a lousy deal.

Sadly, there are people out there willing to lie to you to get your money. Foil them -- don't bite and get taken in the next timeshare scam.

2006-05-19T09:56:00.000-07:00

Maybe Not A Timeshare Scam, But Still A Racket!

My Wife and I attended my sons wedding on the weekend. It was a learning experience.

It wasn't the wedding itself that was educational, although for a moment, when my son arrived at the front of the church wearing a kilt, I thought I might be witnessing my first same-sex marriage, damn him.

Our accommodations for the weekend taught us the value of booking a hotel early and spending whatever it costs, even if a 'free' room is available.

My son is the co-host of a morning radio show in a small city a couple of hundred miles from our home. Set on the side of a large lake in an area that sees very good weather for much of the year, the city is very attractive to tourists. As a result, there was no room in the inns.

One of my wife's friends had given us a pamphlet offering three free nights in a resort in that city. In return, we had to attend a meeting with the resort owners to hear the benefits of owning a timeshare there.

It sounded painless; two hours of touring the resort's golf course, riding stables, and accommodations. I should have known better. I am a living, breathing example of someone who too quickly forgets the old adage, if it sounds too good to be true...

Any of you who have ever experienced the scam for a timeshare resort are probably nodding your heads as you read this. So many things are more enjoyable than spending two hours with a timeshare scammer.

It's close, but I would have to say that it was not quite as much fun as a colonoscopy. In this case, timeshare ownership was being shoved down my throat, I would rather be scammed. In the colonoscopy, something was being shoved somewhere else, but at least no salesperson was involved.

We started the meeting by making it clear that, while we thought the resort was very nice, we would not be making a purchase, or into any timeshare scams. We were willing to hear what the program involved and tour the resort, but we were not buying a week there for the next forty years.

At least I thought the words, "We won't be involved in any timeshare scams" were pretty clear when they left my mouth. Apparently, they were not quite as clear when they reached her ears. Still, no matter how unpleasant the experience was about to be, we knew that it was only going to last two hours. Yeah. Right.

We rode around the resort on a golf cart. I've never found it that difficult to drive a golf cart, but the salesperson drove with all the skill of a sixteen-year-old learning to drive a car with a manual transmission. I hadn't experienced that many jerks since I accidentally accepted a booking to speak to a group of tax collectors.

We returned to the office almost two hours after the meeting began. Judy and I were past being ready to head out to lunch, but the salesperson was just getting wound up. Not wishing to be impolite, but thinking of nothing other than lunch, we sat through her spiel of incentives she was willing to offer us for signing a contract that day.

As the two-hour meeting approached its third hour, and my stomach started making noises like a Siberian tiger that hadn't eaten a villager in three or four weeks.We knew the concept of not making a purchase hadn't gotten through.

We repeated, "We won't be involved in any timeshare scams today"

In any other business communication that would normally end the meeting. When it became clear that the salesperson was not getting a pen to connect with our checkbook, the sales manager came out of his office.

I now know what happens to salespeople who are too sleazy to be used car salesmen at those lots that sell the cars insurance companies have written off as beyond potential repair. They become sales managers in timeshare scams.

The next time we have to visit a city that has no room at the inn, I'll seek out the closest stable. At least, no one will try to sell me a week in a manger for the next forty years.

2006-05-18T12:36:00.000-07:00

Timeshare Owners Scam Biologist

A Canmore timeshare association’s proposal to expand its operations to the foot of a critical wildlife corridor is cause for concern, says one of the Bow Valley’s top wildlife biologists.

Jon Jorgenson of Alberta Sustainable Resource Development (ASRD) says an application by the Banff Gate Mountain Resort to buy its crown leasehold four kilometres east of Canmore and increase its occupancy rate will likely pose a threat to the functionality of the Pigeon Creek wildlife corridor, home to countless species of wildlife.

“We know there are certainly bears, grizzly and black bears in the Wind Valley, wolves and cougars as well,” said Jorgenson. “That’s why it was seen as such a valuable component of the land around here… this timeshare resort is right adjacent to Wind Valley, right at the entrance.”

The resort, which originally included an old ski run, had previously given up 103 hectares to serve as provincial parkland and removed a 40-unit RV park from the area as a means of restoring the landscape. It now hopes to add 46 chalets and a day lodge to the existing facility, as well as tennis courts, basketball courts, internal access roads and parking areas, staff housing trailers and a number of maintenance and utility upgrades.

The association, which is made up of more than 1,000 timeshare members, 91 per cent of whom are Calgarians or Edmontonians, sent a delegation to Council council Tuesday (May 16) to support the land sale, which would give the organization greater clout when approaching banks for financing.

The group had made a similar application last fall that had been outwardly rejected by council, because it proposed to encroach into the corridor.
“The first application was to purchase the entire lease area and this is just for the area outside the corridor,” resort board president Terry MacDougall told council.

Even with a scaled back land sale proposal, expansion of the timeshare resort would still have a significant impact on the area, says Jorgenson.

“My recommendation is that the land stay as a lease,” he says. “That’s my recommendation. It allows us to have control over what happens on those leased lands. Once it becomes private land, our department no longer has the ability to control what happens on that land…”

Jorgenson later added he would still have concerns about the impact on the corridor if the expansion took place under leased land, but recognized the resort association does hold the lease, which entitles it to develop an additional 11.5 hectares of land.

Four years ago, provincial officials were forced to shoot a bear that had found its way into one of the resort’s cabins, highlighting the strong presence of animals in the area. The importance of maintaining wildlife corridors has become particularly prevalent in recent weeks due to the high presence of grizzly bears on the north side of the valley and the mauling of a Banff man by a black bear last week.

Canmore Mayor Ron Casey said council’s principal fear with the association’s first application was related specifically to its encroachment on the corridor. With that element now removed, council could be more amenable to supporting the project.
“I can understand (Jorgenson’s) concern, and I think everyone shares the same concerns, but at the same time I can only respond to what council’s concern was last time, and that was that the problem was selling land that had a wildlife corridor identified in it,” said the mayor.

The Town has no official jurisdiction over the land sale, and can only provide its opinion. However, any future development applications would have to be approved by the Town based on zoning for the area.
Council must still make a formal declaration of its support or rejection of the sale through an official resolution.

Looks like the timeshare owners are scamming from the wildlife.

2006-05-16T04:47:00.000-07:00

Jim Strickland Investigates Bargain Vacation & Timeshare Scams

The fax machine in the Channel 2 Action News investigative unit has churned out dozens of travel offers over the last few years. We recently bought a package that promised us four nights in Orlando, three nights in the Bahamas (with a short cruise,) two nights in Fort Lauderdale and a trip to Vegas with airfare included!

Could $99 dollars per person be real? No.

The people answering the phone number listed on the fax transferred me four times before a computer voice told me: Besides the one time reservation fee of $58 dollars, no other fees are mandatory.

Several other additional charges, such as shipping and handling of $117 for a package of travel documents, pushed the total price from $99 per person to more than $350.

We learned timeshare vacations sometimes end in rude scamss.

We were required to stop at a “welcome center” in Ft. Laudersale, where a woman at the desk said, “All these people that come through here on packages... It's all geared around time shares.”

We had to plunk down a $40 deposit to ensure we'd show up at a 90 minute timeshare presentation we didn't know anything about.

“I had no idea I was going to take a tour today,” said New York traveler Erika Tavares.

“I blame the marketeers who get us down here under false pretenses,” said her husband, Giovanni.

Our sales rep told us the Vacation Village timeshare resort paid our travel company and several others to recruit prospects. “We're basically chipping in money on your vacation,” said salesman Luke Reischel.

A group from South Wales complained they got scammed taking three timeshare tours. They had to pay that deposit at the same welcome center.

“Give me your forty dollars,” Nigel Williams recalled the demand of a man staffing the center.

“For what?

“Give me your forty dollars, you'll get it back after the tour.”

“Tour, what tour?,” Williams remembered.

A couple from Denmark said they’d been threatened with extra hotel charges if they skipped timeshare presentations they were not told of.

“It's close to criminal, but it's legal,” said Peter Saager.

Our Bahamas hotel room had doors that wouldn't close and a toilet that wouldn't stop leaking. A manager insisted on changing our room.

Our Orlando hotel, actually on a busy highway in Kissimmee, gave us a no smoking room with cigarette burned carpet. Furniture was falling apart, and the bed sagged four inches in the middle of the mattress.

We had paid our money to a Florida travel business called Wholesale Connection Company.

Debra Graham of Richmond Hill, GA, paid for a similar package, but never even received the documents necessary to book the trip. “I got a charge on my credit card, and I got nothing,” said Graham.

Graham's is one of more than 120 complaints with the Better Business Bureau of Central Florida.

“WCC does have an unsatisfactory record with the BBB, primary due to their selling practices and failure to give refunds when they should be giving refunds,” said BBB President Judy Pepper.

Wholesale Connection Company is connected to a telephone boiler room for the timeshare scam. On our visit, one manager didn't want us there. Another said she'd been authorized by the owners to speak.

As for our unannounced timeshare tour, Customer Service Manager Carmen Santiago said: “Our sales staff always strive to assist customers and I don't believe that no one would have explained that to you, sir.”

On our cruise, we paid port taxes of $159, when the true port tax is less than $10 bucks. “We don't just invent fees,” she said.

Santiago also explained that a statement over the phone: “We do not promote this on a refundable basis,” doesn’t mean WCC refuses to give refunds. She said it simply means they don’t promote the fact they give refunds.

“Don't you think it's a little misleading?,” I asked.

“No sir, it's not misleading it is a timeshare scam,” she replied.

2006-05-15T13:04:00.000-07:00

CONTACT Helps Mainers Escape Troubles With Timeshare Scam

Northeast CONTACT members Bob and Sue White of Bangor came to our office in October of last year. They asked if we could assist them with a consumer problem involving a business named "Sunterra Escapes PFC" associated with Sunterra Corp.

The White’s told us they had gone on vacation to Branson, Mo., the week of Sept. 28, 2005. While there, they were told they were invited to a seminar presented by Sunterra Corp. The business was promoting timeshares and they would pay $100 per couple for those who sat through their presentation. Mr. and Mrs. White agreed to attend.

As the seminar progressed, the atmosphere was one of excitement. The pitch was hard sell and high pressure. People all around them were getting ready to sign up to purchase a timeshare (scam)? It was as if there were subliminal messages passing through the room. Bob and Sue White signed a contract to purchase a timeshare at the cost of $1,345.50 and paid for it with a credit card. They received $100 for attending.

After the presentation, they had second thoughts and an hour later they approached the Sunterra representatives and said they wanted out of the agreement. Their request was not met with the happy smiles that had greeted them earlier during the Sunterra pitch for the timeshares.

Bob and Sue White were told the only way they could get out of the contract was to sign up with Sunterra Escapes PFC, a travel club. It was explained that the $1,345.50 stayed in Sunterra’s pocket.

Meanwhile, the Whites had found out from another source that one could opt out of a travel club within three days of signing, according to Missouri law. That seemed the only way to go, so they signed a contract to become members of the travel club.

On Sept. 30, 2005, the Whites sent a letter to Sunterra Escapes PFC in which they stated they wished to cancel the contract, which was signed the day before. The letter was sent certified, return receipt requested.

The Whites also called the business, advising Sunterra Escape manager Russell Burkett of the letter they had written and informing him of Missouri law involving travel clubs. Burkett said he would call them back after speaking with their legal counsel regarding the law as well as the contract not being signed by Sunterra.

Bob and Sue White received a phone call from another representative of Sunterra Escapes PFC saying there would be no refund and if they didn’t pick up a travel package, the contract would be canceled and all money would be forfeited. It was stated, "We are not a travel club; we are in real estate."

At this point, Northeast CONTACT became actively involved. We wrote a letter to the president of Sunterra Escapes PFC and outlined the problems of the transaction from the beginning. We ended the letter with the statement, "Enclosed you will find a copy of a new Missouri law which became effective as of Aug. 28, 2005, which is a rescission statement, revoking earlier legislation. Mr. and Mrs. White have two very valid reasons why they are entitled to receive a full refund of $1,345.50. First, the contract [membership agreement] was not signed by any representative of Sunterra Escapes PFC. Secondly, a new Missouri state law gives the purchaser the right to cancel the agreement within three business days. At this time, we are requesting that you refund the amount of $1,345.50 in full to Bob and Sue White within the next 14 days with notification to Northeast CONTACT of the transaction. Then, and only then, will we drop this matter."

When neither the Whites nor Northeast CONTACT received a reply, we wrote a second letter to the President of Sunterra Escapes PFC listing the enforcement agencies we would contact if he chose not to send the refund.

Shortly thereafter, the Whites received notification from their credit card company that Sunterra had credited their account in the amount of $1,345.50.

Bob and Sue White expressed their thanks to our caseworker for a job well done.

Was this the beginnings of a timeshare scam?

2006-05-09T04:57:00.000-07:00

How I got Timeshare Scammed

Several weeks ago I had went to bed early, and the phone rang. I answered the phone and they said Mrs. Jones, I'm calling from the Gift Center to let you know, you have won a television valued at $179.00.

I said I'm not interested. She said "But don't you want to claim your television, all you have to do is verify your name and address?" I said okay and said yes to her questions. She said we'll mail you a pink card to claim your prize. I said okay and hung up.

Several days later I received another phone call from the gift center. She asked, did I receive my pink card, I said no. She said, "I'm calling to set up an appointment for you to pick-up your television, and I'll send you another pink card."

I asked her what was the value of the television? She said "$179.00, and you also get a $40.00 gas voucher, and a $1000.00 bonus."

She said, "How about Thursday for the appointment, or would a weekend be better?" I said "Saturday", she said "Okay, Saturday at 1:30."

Friday night I received another call from the gift center to verify my appointment Saturday. She said we are located in Robertsdale, you'll need your pink card or remember your prize # RK10.

Saturday, I told my husband let's go pick up the television we won. Working for Walmart, I know how much televisions cost. So for $179.00 I figured it had to be 13 or 19 inches.

We called Saturday for directions. She told me the road to take and to look for the sign Gift Parking. We went to the front door. They had a sheet to sign in.

We signed in and the guy at the desk said, John will be with you in a minute. He took us to a picnic table and said, "Okay, so they promised you a million dollars or something like that to get you here, huh?" We said a television.

It turns out to be a vacation park where you need to buy a timeshare membership to join. The gifts are conditional upon hearing a sales presentation.

We walked the park. They have places to park RV's. They have small mobile homes that look like log cabins. They have a building with an indoor pool, and an outdoor pool. He said they were in the process of buying water world, it would be added to the park and be free to members.

He said a timeshare membership, was $6000.00. We couldn't afford that, so he said a 10 year was $3999.00 and you have 36 months to upgrade to the lifetime membership. $395.00 down & $91.00 a month. Plus $300.00 in maintenance fees per year.

They make this seem like part of what you have won. This deal is only good for the day you go.

We asked, "You mean we can't go home and think about it, and let you know Monday." He said "Absolutely not, the price then would be $12,000.00."

I asked so what if you pay your down-payment and make some payments and then decide you're not going to use the facility. He said, "If you're asking, have we ever sued anyone? No, we have not."

We signed the paperwork, then asked about the television, we had won. The television was black and white, and 5 inches, the $1000.00 bonus was grocery coupons.

It was about this time I realized I hadn't won anything but they refused to tear up my check or the contract for my timeshare membership, saying it was a binding contract.

I sent a certified letter two days later stating: "I rescind my contract due to your fraud in enticing us to your location."

I went to the courthouse for a judgment search. The timeshare resort has a string of scams where they sued people for breach of contract. The same situation as mine, I'm sure. I've spoken with several people, who paid Styx River Timeshare Resort because of this timeshare scam. They didn't know if this was legal and if you could get out.

After crying for nearly three days solid, I went on-line to look for some kind of information to help, and I found your website. I couldn't believe you actually wrote me back. When you've been lied to like these people do, you feel like there's no one to trust.

After using the information of who to contact from your site, I wrote a letter of my situation, and made copies and mailed to Alabama's Attorney General, the Better Business Bureau, and several other people. A week later the Better Business Bureau received a letter from Styx River Resort ending my timeshare scam.

I had a friend call them last week, and ask about pricing over the phone, they quoted her $3999.00 for a 10 year membership. So I know for a fact there is no one day deal, as they tell you. Hope my timeshare scam story helps keep someone from making the same mistake I made.

2006-05-05T05:04:00.000-07:00

Are Travel Offer Faxes From Reputable Companies A Timeshare Scam?

Most of the time, the travel offers you see come over your fax machine are not the best deal. Often, the "banner price" used in the advertising isn't the real price for the offer -- the sender "forgets" to include expensive add on charges that double or even triple the cost stated on the initial ad.

Other times, the "travel agency" that sends the offer is really a front company for a timeshare property. The trip may be inexpensive, but you'll spend a lot of your time being pitched on buying into the timeshare, or a timeshare scam. There are so many other ways to book your vacation that relying on a "special offer" that arrived by fax is a bit foolish. A local travel agency or many of the widely-advertised online travel sites are much better at tailoring their services to what you want out of a vacation.

This might not be a timeshare scam, but it might not be the best vacation deal on the market.

2006-05-04T07:04:00.000-07:00

TimeShare Scam Or Timeshare Mistake?

So I got a $50 certificate for going to that lame timeshare/tradewest thing. We went there and first asked if they took the coupons/checks. They did. Prime Rib was ordered, a while into the order the waiter comes back and says they don't have any, so we had to order something crappy. Crab legs was ordered (not for me), and they forgot it, then didn't have any butter for it. They had a salad but the lettus was all brown (old). I ordered well done steak, they gave it to me raw. They then brought it back completely burnt. For the bill I had to pay $13 over so $63. So I got it all for $13. But the meal was so crappy might as well not gone almost. A Chilis meal tastes better. I don't have any plans on going back there. Their desert was really good, some ice cream thing.

Yesterday we went to a presentation. They were such aholes calling me every day for like a month. They kept signing me up for times without asking then saying when I was going. Their timeshare spots for going were stupid too like Torrance, Oceanside, and San Dimas. I finally signed up for Saturday at 2 p.m. The guy on the phone lied saying it would take 15-30 minutes to get there but it took 1 hour and 20 minutes. I told him there's no way 30 minutes. First they had me 1 on 1 with some guy and fill out some sheet. Then they passed me off to another guy who 1 on 1. Then they put us in a room and did a presentation. Apparently the company is owned by Cendant which used to own my company. Their deal is different where you pay in and then get vacation points to spend at their 58 timeshare resorts or their partner RCI that has tons more of the timeshare resorts.

They then took me upstairs to this nice party area. It was really shady then. They had me 1 on 1 again at a table. They stopped us at one point to play credit card bingo. They said whoever has the most 6's on their credit card won some trip, another timeshare scam. I had 3 some guy had 6 and won. I figure they wanted to see how much credit cards we had. I asked the guy to continue the pitch but he wouldn't until the game was over. Lame.

Then it just drug on forever. The guy had no real sales pitch and didn't really explain what was going on at all. They just wanted money for who knows what. Their first offer was like $19,000 + $500 a year and someting like 14% financing (crazy). I said f that, after like 20 mins of him bullshitting. Then I finally told him I'm not signing anything today, maybe later. They would not take no for an answer.

At their presentation they claimed they would take no for an answer but they lied. They also put down a sheet of contacts for me to fill out for all my friends. I said no but they wouldn't let me go without it.They then passed me off to the next boss. It took like 20 minutes of me sweating it out to get to him. Then he started making other timeshare scamming deals. I said no, it was this really sleezy mexican guy with a gold watch/chain. Then I would not sign so he said something like I don't know why you come to a vacation place if you don't want to get a vacation. CUZ YOU'RE GIVING ME FREE STUFF! He knows. Then he passed me off to boss #3. The offer got down to $689 for 2 years in the club. It was actually a good deal, I maybe should have signed but I just don't trust anyone with 1 day offers that expire when you leave the building or the high pressure sales tactics. So for all that, which was about 1 hour 40 minutes I got timeshare scammed.

The $50 black angus dinner, 3 days hotel in Las Vegas, $100 "online shopping spree" which I doubt is worth anything is what I got for my time. The location was on the Oceanside docks/harbor so it was really nice. Got food at some fish and chips spot. Then some ice cream/candy. Then went to the beach for about 2 hours. I am not sure if this was a timeshare scam or just a timeshare mistake on my part.

2006-05-02T04:34:00.000-07:00

Beating the Timeshare Jungle Around The Corner Waits Paradise Or A Really Big Scam

I was washing dishes one rainy evening when the phone rang. "You have won a four-day vacation for two at a resort in Hawaii, Cabo San Lucas and Las Vegas," an automated voice said. "To confirm your prize, press 1."

I've grown inured to computerized phone solicitations from mortgage warehouses promising me 1-percent loans, and at the first utterance of their treacly digitized sales pitch I slam down the receiver. But after months of chilly monsoon weather, the thought of baking on a tropical beach proved irresistible.

I obeyed the voice and pressed 1. A man came on the line. He outlined an "unbeatable" offer involving sitting through a time-share sales pitch, then getting vouchers for three trips that needed to happen within a certain time frame. All that was required was payment of a mere $99.95 now.

I asked lots of questions -- including a request for the company's name and the man's phone number so I could call him back after discussing the deal with my husband. He told me the offer was only available now.

When I pressed him for details, he hung up on me -- only to call back and tell me that his supervisor thought I deserved a second chance. When I asked him exactly how the program worked, who owned it and how I might get in touch with them at a later date, he told me it wasn't for people like me and hung up.

Thanks to companies like this one, timeshares, the faux real estate product invented in Europe during the 1960s, don't always enjoy the finest of reputations. Indeed, they represent a motley crew that ranges from legitimate businesses to shameless timeshare scammers.

Technically, all timeshares involve shared use of a vacation property, although there are timeshare scams that don't even provide this. Whether the properties are beachfront cabanas in Indonesia or studio apartments in Paris, the idea is that each member pays for a portion of the year (typically a week) as well as annual maintenance fees.

But as the industry has evolved into a multibillion-dollar, timeshares have come to take on an array of shapes and sizes. This is complicated by the fact that most people treat time-shares as commodities to be traded through international timeshare exchange companies or rented through agencies.

Rather than buying them with the expectation of having a nice, consistent vacation site, they expect to trade their timeshares for more desirable locations or rent them out for a profit.

Some companies sell deeded property (that means actual real estate -- shared between 51 owners each owning a week per year). Others sell long-term leases of 40 years or more. Still others offer only the "right to use" (RTU) -- with, typically, shorter terms that don't necessarily include the option to extend the contract.

Within these categories, there are other distinctions. Fixed timeshares sell you a specific unit for a specific week of the year -- say, Bungalow 104 for Christmas week. Floating time-shares sell a generality -- that is, a kind of unit for a kind of week (for example, a one-bedroom unit in the high season).

Beyond traditional timeshares, there are many other transmutations. Points club companies sell time-shares with a specific point value, which can be used for a vacation rental or be exchanged for other kinds of services -- such as rental cars, airplane flights and restaurant dining. The idea behind points clubs is that you get maximum flexibility to spend your points in whatever way you see fit -- whether it's on multiple shorter trips or extra services.

Holiday or vacation clubs supposedly sell you a lifetime discount rate to certain resorts, although some experts warn that their "discounted" rates are often higher than if you simply decided to rent a place on your own. Fractionals and private residence clubs typically target the ultra-affluent and share the ownership of a resort or collection of vacation properties among a smaller group of owners, with added amenities like staff to buy your groceries, take care of your children and cook your food. Buying a membership in a private residence club typically tops $100,000, with additional maintenance fees.

Although residence clubs members are not getting any actual real estate, they do seem to be helping the club owners expand their real estate portfolio. One recently launched residence club, Signature Destinations, offers access to single-family homes in exclusive locations near major urban hubs. Right now, the membership fee is a whopping $150,000, with a yearly maintenance fee of $9,500 for eight weeks of vacation time.

The company Web site promises to provide several homes at 10 hubs in the United States as well as 10 residences around the world. But to date, the company owns only nine homes worldwide.

To make matters all the more complicated for the prospective timeshare shopper, most timeshares are tradable through exchange companies -- the two biggest being Resort Condominiums International and Interval International -- which allow you to "bank" your timeshares and trade them for other timeshares at other places and times.

This promise of using your time-share in Reno to vacation in Hawaii is what often sells timeshares to people who have little interest in the actual timeshare being sold. But this system -- run by computer programs calculating supply and demand -- doesn't always live up to the promises made by salespeople.

In fact, there are no real promises -- everything is "based on availability" -- and I've known many folks who bought on the premise that their place was easily tradable, only to discover it wasn't.

Over the years, the industry has added new products, offering more varied services with seemingly more flexibility. This flexibility has allowed the industry -- boasting a 16 percent annual growth rate -- to pretend to be all things to all people. But the reality for many consumers is that the system is too complicated.

Many people end up wanting to unload their timeshares (and with them the liability in perpetuity of the maintenance fee), but this is easier said than done. Because resort companies are often more committed to selling new timeshares (at top dollar), they don't want resales to dilute their market. Out of this scenario, a plethora of resale agencies -- some of them less than reputable -- have popped up to "help."

One of the common timeshare scams involves companies promising to sell your timeshare for an unrealistically high price in exchange for a fee. When the timeshare doesn't sell, you're simply out your money. Another timeshare scam involves resale companies that promise to sell your timeshare if you buy into their bogus vacation club. The consumer is left with two liabilities -- the timeshare that never gets sold and the new vacation club membership.

Indeed, the problem of actually using timeshares seems to be endemic. Craigslist and eBay are full of offers to rent or sell timeshares at a fraction of their original cost. Sometimes, these listings make their purpose plain: "Just pay my maintenance fees!"

Other owners discover that the promise of the timeshare as an investment doesn't always pan out. Entrepreneur Robert Pellissier (my brother-in-law) realized this after purchasing four timeshares at Mayan Palace, a company that operates six timeshare resorts in Mexico.

The couple was convinced to buy more timeshares than they could ever use, with the prospect of renting them out and thereby covering the cost of their initial investment of $30,000 for four timeshares ($7,500 each). "They told me that they had a rental agency that could rent each unit for $2,300 a week. At that price, we realized we could cover our costs within a couple of years."

To sweeten the pot, the agents added four free timeshares as well, on which Pellissier would only pay maintenance fees if he used them. Renting out his eight timeshares at about $2,000 a week -- minus the $600 maintenance fee -- would recoup his investment in no time.

The first year, the rental agency made good on its promise, but since then none of Pellissier's timeshares have been rented. "Every couple of months I call them and they tell me not to worry," he said. "So I don't know."

At this point it's hard to know if the timeshares are an investment or a liability. No matter what, Pellissier still owes maintenance costs on the four timeshares, an amount that exceeds $2,000 a year.

According to many angry Mayan Palace timeshare buyers who have posted their experiences on the Web, the promise of renting out time-shares seems to be integral to the company's sales pitch. But no matter what salespeople may say, the contract doesn't make any promises.

Unlike some of the other owners who have discovered their timeshares are not as easily exchanged or rented as promised, Pellissier isn't bitter. "It was great when we went," he said of the resort in Cancun. "You can't be mad at them. We haven't taken advantage of it as much as we should have."

2006-04-26T08:45:00.000-07:00

Developer Was Defendant In A Securities Class Action Timeshare Scam

A man who hopes to develop an 18-acre parcel in Stateline was sued by shareholders of his former timeshare company, Sunterra Corp., in 2000.

The class action alleged top executives cooked their books by $40 million and issued false financial statements to make the company look profitable, so they could sell it to a larger timeshare company. Imagine that, a timeshare company scamming another timeshare company!

The suit was settled for $4.5 million last May. Settlement papers state the defendants, including Steven Kenninger, denied all liability and only chose to settle to avoid expensive litigation.

When contacted via e-mail last week, Kenninger referred comments to his lawyer Leif Reid. Reid referred comments on the class action to Bob McKirgan, who represented Kenninger in the lawsuit. McKirgan could not be contacted Tuesday because he was on an airplane.

Kenninger was the chief operating officer of Sunterra Timeshare Scam. He was co-founder, president and co-chairman of Signature, which changed its name to Sunterra in 1998.

Sunterra is formerly Argosy/ KOAR, which owned Tahoe Seasons Resort and Tahoe Beach and Ski Resort.

The class action alleged the timeshare company's top executives committed accounting fraud by overstating their financial situation. Timeshare scam.

Accounting irregularities were discovered during a routine audit as the company was sealing a merger deal, according to the original complaint. The deal was dropped after the audit and Sunterra declared bankruptcy.

Once under new leadership, Sunterra disclosed that all financial statements issued in 1999 or before should not be relied upon, and said it was suing its former timeshare managers, timeshare directors, timeshare auditors and timeshare IT consultants, according to the complaint.

Kenninger was named 41 times in the 143-page complaint. The case number is 6:00-cv-79-Orl-28B. The settlement was largely paid by insurance companies and accounting firm Arthur Andersen, which was also a defendant, according to the settlement agreement.

On Jan. 20, 2000, the timeshare company announced its fourth quarter earnings would come in far below analysts' predictions and that its balance sheet was off by between $38 million and $45 million, according to the complaint. Stock plummeted from $13.50 in late 1999 to eight cents a share in October 2000 on the New York Stock Exchange. What a timeshare scam!!!!!

2006-04-25T04:53:00.000-07:00

Timeshare Scams

The sale of real estate by dividing it into 'timeshare' units has become an extremely profitable way for developers to sell real estate - particularly condos in vacation hot spots.

Essentially, buying a timeshare means that you and other people are all buying one property -- and sharing the time you spend in it (hence the name).

Some timeshare properties guarantee you a week a year, others allow for up to 3 weeks annually.

All of them have you pay a portion of the property value itself, and all of them have you pay a 'common area' cost for upkeep on the building and grounds, etc.

Most timeshare units are sold at a 'presentation.' There is almost always some attractive incentive for you to attend the presentation.

Common incentives include discount or free hotel rooms, weekend getaway packages, or prizes. Some of these are legitimate -- the company makes it clear that you need to attend a presentation and they know they can afford to give away incentives because they profitably sell timeshare units.

(We'll talk about a timeshare as an investment in a moment.)

There are also many timeshare scams, and the incentives are where the trouble usually begins...

Timeshares that are scams will offer everything from a new car or boat... to a two-week luxury holiday. It's one thing if they offer you a discount or free hotel room for a couple of nights. It's a totally different thing if they offer a free car or boat or luxury two-week holiday to everyone who just listens to a presentation!

Either way, you'll usually find that the presentation involves very high-pressure sales tactics. Know that going in.

However, the real timeshare scams don't deliver what they promise. For example, one timeshare scam in England involved people being told they had either won a sports boat with an outboard motor, a car or £1000. To claim what they'd won, all they had to do was attend a presentation.

When they arrived at the presentation, everyone had won the sports boat. All they had to do was pay £49.99 for delivery.

The 'prize' they received was a toy dinghy with a small motor, not a real boat. The £49.99 easily paid for the 'prize' and the delivery!

Other scams include having to pay an 'administration fee' for a holiday, or having the company 'go out of business' after they take your deposit.

Another ploy is that attendees are told they can sell the timeshare they already own -- at a very attractive price. However, the sale does not occur... so they are now stuck with two timeshares!

Travel club timeshare scams may work the same way: people are invited to a presentation, and offered an amazing prize just for attending. Travel clubs often promise discounted airfares, special travel packages, and remarkable rates on accommodations.

2006-04-21T04:24:00.000-07:00

Stuck With A Timeshare From A Scam

If you a bought a timeshare and lived to regret it, be forewarned -- the outlook for resale isn't pretty. And when the units do sell, it's usually for a fraction of what the original owner paid.

There's another whopping negative in the timeshare resale market, too. Hucksters find desperate owners are easy targets. In fact, many who offer to resell timeshares not only don't sell them, they take owners for a ride by charging nonrefundable upfront fees.

Debra Speyer, an attorney with a national practice that specializes in elder law and securities fraud, says, "You shouldn't be paying upfront money to anybody to sell a timeshare." Could it be the usual timeshare scam.

2006-04-19T04:42:00.000-07:00

Is The Timeshare Salesman Scamming Your Money?

As in all walks of life there are 'goodies' and 'baddies' and unfortunately timeshare has plenty of 'baddies' which has got timeshare a bad name in England, and no doubt in other parts of the World.

One timeshare scam that happened a few years ago in England was that people were mailed to say they had won a prize and the prizes on offer were either a car, £1000 or a sports boat with an outboard motor. All the person had to do was attend a presentation. Obviously, with such prizes on offer a lot of people attended the presentation and were told they had won the sports boat, but they had to pay £49.99 for delivery. Instead of a van turning up with the boat on a trailer it arrived in a large cardboard box and turned out to be a blow up dinghy with a very small motor. In fact, what they paid would no doubt have covered the cost of it anyway.

Another timeshare scam is to attract people along to a presentation by saying they have won a free holiday, but this normally involves payment of an admin fee and the holidays are short notice ones which, if you cannot go on holiday when contacted, would mean you would not get another opportunity. The offer lasts normally for 18 months but in some cases the company goes out of business before the end of that time. For some people it will turn out well and they will get their free holiday, but a lot of people end up being scammed.

Some people are told when attending a presentation that the company can sell the timeshare they already own for a very attractive price if they purchase one of their timeshares. Of course, the sale does not happen and they then end up owning two which was not their intention. I spoke to a lady once that this had happened to and she had then attended another timeshare presentation and been told her two timeshares could be sold for her if she bought a timeshare from them. She ended up with three timeshares!! That is no joke - it really happened. You may thinksomething like that could not happen to you but the sales people can be extremely persuasive and likeable so you are tempted to put your trust in them.

The Timeshare Consumers Association set out the type of timeshare scams that are operating regarding buying and selling timeshare and have gone into far more detail than I would be able to so I would recommend that you have a look at their site for details of other scams that are used.

Crimeshare This is another website that I am sure you will find interesting which gives details of timeshare scams and firms you should avoid. However, on their site for firms to avoid when buying and selling timeshare they give TAG and TORO. I purchased a resale from TOR and it all went through very quickly with no problems, and my daughter bought resale through TAG, and although it did take quite a while to go through it was partly because she forgot to sign a document and because of the American legal system, so they must have some good points!!

2006-04-18T04:52:00.000-07:00

Don't be scammed into timeshare

If you are looking to unload your timeshare, do not get scammed by a crafty salesperson. Timeshare scams are running rampant today. Read some of the timeshare scams happening today at EZ Timeshare. If you have a timeshare scam to report, go to EZ Timeshare Scams and report to others.

2006-04-13T09:31:00.000-07:00

Sour truth About Timeshare Holidays: Share Money, Not Time

Do not take the salesman’s tall claims at face value. Even the company he works for does not take responsibility for his words.

Why pay Rs 1,02,000 for a week’s holiday abroad when you can do it with just Rs 9, 000' - screams the advertisement of a timeshare resort and chances are you would definitely bite the bait. Timeshare or vacation ownership is a concept whereby you can avail of a week’s holiday every year for around 25 years in the resort’s several locations spread across India and even abroad.

And companies such as Club Mahindra, Sterling Holiday Resorts are trying to make the most of the holiday season to rope in vacationers. What you have on offer is a week's holiday each year for 25 years in over 20 of their properties spread across India and over 3500 RCI affiliated timeshare resorts abroad for about Rs 1 lakh.

But wait. Take a closer look at the contract of a timeshare resort. It clearly states that there are no verbal/written promises not mentioned in the membership rules that have been made by the company. So do not take the salesman’s tall claims at face value. Read between lines and ascertain whether your investment is worth it.

Here’s what a Club Mahindra member has to say, “I invested Rs 2,25,000 in 2002 for a one bedroom Red holiday and am regretting. Firstly getting a holiday booking has been extremely difficult. We stay in Mumbai but have had to make umpteen STD calls to the Chennai office for bookings even 7 -8 months in advance for a week’s holiday."

" And inspite of that we are not sure of the availability. The annual maintenance charges that were Rs 2,000-3,000 then have now suddenly shot up to Rs 9,000 and we can’t help but pay up else lose our initial investment. Besides since we wanted to holiday even during the peak season we decided to invest more and go for a Red membership. That has hardly helped us. Moreover, the resorts are located far away from the centre place and we had to spend a huge sum only to reach the place.”

However Ramesh Ramanathan, MD, Club Mahindra Holidays disagrees. He says “Holiday bookings are accepted as early as six months in advance. Barring the rush of the Christmas/New Year week at certain resorts, we are able to accommodate timeshare member booking requests. We have a member-booking refusal tracking system in place which also enables us to proactively call back a timeshare member and help them book a suitable alternative / their next holiday. For international holidays it is recommended that members book (through RCI only) anytime between 6 months to even one year in advance, especially if members are specific about destination and time of holiday.”

But it doesn't appear to be as smooth sailing as Ramanathan puts it. At least from the number of grievances faced by consumer courts against these kind of packages. Says Advocate Hemant Jariwala, a Consumer court lawyer, “I have been handling around 5-6 complaints a month on timeshare resort companies and the issue with most is deficiency of service. There’s serious lack of transparency when it comes to allotting bookings. Either the property at a location is under construction or the amenities are not as promised. Why can’t the entire system of booking and allotment of holidays be online like the railways? These resorts are also let-out to outsiders at a premium cost perhaps the reason why it is not available to members."

He adds, “I have myself invested Rs 55,000 for a 1 Bedroom in 1994 with Sterling Resorts. Initially the service was good but later I began to face major hassles. For instance I paid Rs 13,000 for 10 years to RCI and I parked my week with them. I called them in January 2006 requesting for a holiday in Diwali this year or in December to any of their 15 resorts across the country except Shimla and Mussourie but they said its all booked.”

And chances of exiting are dim. While Ramanathan says that they do offer a 10-day recession period within which a member can rescind his timeshare contract and they allow cancellation up to six months from the date of purchase, for those who've stayed for over 6 months, its a relationship for life.

Also it helps to be aware of who benefits the most. Is it the member or the outsider? As an outsider if you take a trip to the resort’s Varka Beach timeshare resort at Goa your package for 3 nights and 4 days would be Rs 14000 plus taxes (Year 2005 rates) for 2 adults and 2 children below 12. Now that would be for a Superior room with benefits such as Airport/Margao Railway station pickup and drop, welcome drink, breakfast, lunch, dinner plus several other attractions such as Bottle of Goan wine, 50% discount on all in-house alcoholic brands, complimentary use of swimming pool & gymnasium, one half-day sightseeing trip during stay at no extra cost

Now as a timeshare member visiting Varka Beach you would pay an annual maintenance cost of around Rs 6246 for a studio apartment for a week for 2 adults and 2 children below 12 years. However, you would not be entitled to all the abovementioned services free of cost. Inspite of being a timeshare member you would still have to pay extra for your food - 3 meals a day and fork out a good sum for several of the above mentioned benefits. What you however get is a paltry 20 % discount on ayurvedic and aroma massages that cost upto Rs 1,600 besides the 30% discount on steam, sauna that would actually cost around Rs 150 each.

If you’re the type who prefers to take a planned holiday every year here’s what you should be prepared to pay up as a timeshare member. The annual subscription fee, the exchange fee of Rs 3,000 payable to RCI if you plan to take a holiday at a location (in India ) wherein your base resort does not have property of their own or around Rs 9,000 for an international destination not to mention the utility charges and sundry other expenses.

But if you're lucky, you could strike gold. Like Himanshu Bhatt - a member of Club Mahindra since the year 2000 the going has been good. "I became a member of Club Mahindra in 2000 by investing Rs 1,20,000 and have taken 6 holidays so far to places such as Goa, Binsar in Uttaranchal, Panchgani etc. There is an annual maintenance of Rs 5,000 plus food and other sundry expenses that I have to fork up on a regular basis."

As is obvious though, all this is not a one-time pay-and-forget-it kind of affair. Also, it is important to remember that after using these timeshare schemes for 6 months, you are hooked, booked and reeled in - for a lifetime. So if you feel you have been timeshare scammed you can file a case under Section 1(1)(g) of the Consumer Protection Act 1986 for deficiency of service.

Do not be timeshare scammed!!!!

2006-04-13T09:25:00.000-07:00

2006-04-11T07:27:00.000-07:00

How I Became A Timeshare Sucker

My family and I recently visited Sedona, Arizona, land of pinion-juniper forest, redrock spires and bluffs, resorts and spiritual energy-field vortexes.

The only vortex we found, though, was the one our credit card number went into.

We headed down to the self-proclaimed “New Age” capital of the West thanks to a friend, who gave us a free three-day stay at a resort. All we had to do was sit through a short sales pitch for the timeshare program our friend was a member of.

Our show began at 9 a.m. on the second day of our stay. We and another dozen-or-so free-loading couples were herded into a room with expansive windows looking over a courtyard backed by the area’s trademark sandstone monoliths. As we dissolved into the room, each couple was ushered by a sales person to a small, round table. Once there, like an orchestrated military movement, the sales pitches commenced all at once.

Our personal timeshare scammer sales agent was Travis. He was a nice guy. Young. Intense. Good looking. Good at what he did. And what he did was make us understand why we, as a traveling family, would be morons and child abusers for not buying into this program. He then brought out a personal photo album of him and his pretty fiancée in Hawaii on their own recent timeshare excursion.

“Don’t you want to spend quality time with your kids?” he concluded with the sincerity and intensity of a minister.

Yes. I did. Right then, in fact. But our kids were back in the room engorging themselves on sodas, snacks and TV. Around me, chatter filled the room, dense and energetic. “Buy today … buy today … buy today.”

Buy today, Travis continued, urging us, doing us a huge favor, because there were extras being offered right now and only now – in fact if we were to leave this room, the only thing we’d ever again be eligible for is the standard package at the retail rate.
Corks popped around us as other couples signed on the dotted line and celebrated with little bottles of champagne.

It may have been the excellent and endless free coffee setting fire to my cerebral cortex, but … there was an alluring reasoning unfolding here. At its best, this timeshare deal seemed a brilliant sort of for-profit world-wide commune, a kind of capitalistic socialism for travelers. A valid train of thought at least worth considering.

Of course, at its worst, it was $14,000 worth of advance hotel reservations.

But we couldn’t get enough space alone to discuss these concerns because Travis kept interrupting our deliberations with sweeteners: Two free airline tickets. A free week of lodging. No fees the first year. And more coffee?

Our kids called our cell phone. How much longer would be?

“Just a few minutes,” I whispered gruffly into the phone, feeling the “average to high stress” Travis had scribbled secretly, yet clearly, on the top of the interview form.

“They sound like great kids,” Travis cooed, as I pocketed the phone and sat back down.

It sounds insane now, but before we left that room we had put a fat deposit on our credit card. Actually it sounded insane then, too. And so that night was one of tense, awkward hours filled with a mildly psychotic blend of giggling and soft whimpering. Finally, we called a lawyer friend who, after he stopped laughing, did some quick research and found that Arizona has a seven-day contract rescission law, just for suckers like us. It should even be written into the contract, he added.

We looked again. It was. Right above our signature.

And right then I understood right then how old folks get swindled out of their savings. How kids get sucked into cults. How 25 years earlier I had gotten conned out of my money after only fifteen minutes in New York City. How salespeople make their living.

Still, it’s hard to blame Travis and his time-share shilling compatriots. We signed the contract, willingly, earnestly. I’ll admit that I even feel some admiration for Travis. He was good at what he did. And I know my wife and I learned some helpful, important lessons about ourselves and the big scary world out there.

Given those positives, maybe this predatory hard-selling has a function in natural selection. Maybe these time-share sales people are like, say, hyenas or dingoes, performing their own Darwinian culling of the dumb, the weak and the confused from the economic herd, and thereby strengthening the survivors.

Maybe. All I know is, I hope my wife and I evolved.

Timeshare Scam or Nice Salesperson?

2006-04-10T09:14:00.000-07:00

Zimbabwe: Zim Holiday Timeshare Club Takes Locals On Wild Timeshare Scam

MORE than 5 000 prominent business executives, lawyers and doctors have allegedly lost billions of dollars following the closure of offices of the Holiday Club Zimbabwe (HCZ) Private Limited, a leisure enterprise designed to facilitate cheap holidays in South African resorts through a timeshare scam.

The HCZ, linked to Holiday Club South Africa (HCSA), has closed its offices in Zimbabwe and is now being run from South Africa by an administrator although the directors -- Amanda and Steven Deller -- still reside in Kariba. Investigations by Standardbusiness have revealed that local investors in the HCZ have been left in the cold as they can no longer access South African timeshare resorts.

The Leisure Property Trust Management Association (LPTMA) is supposed to safeguard levies and membership fees collected through a timeshare scheme yet members have never been given a copy of the constitution.

They have not even attended a single annual general meeting of the holiday club as per provisions of the LPTMA constitution. The financial records of the Holiday Club Zimbabwe have not been made public since 1995, leaving members worried about the financial status of the company.

Members, who have not accessed holiday timeshare resorts for more than two years, were recently shocked when they received bills averaging $45 million per person indicating that they needed to update their HCZ levies, subscriptions and timeshares.

Although Steven and Amanda Deller refused to comment on the issue saying in a statement that "we can not respond to any of your questions", Sammy Yeo -- based in South Africa and currently the Administration Services Manager of the Holiday Club headquarters in Johannesburg -- acknowledged that the HCZ was facing serious problems.

Yeo said the HCZ stopped marketing in the country in 2003 due to crippling effects of hyperinflation which has resulted in the acute shortages of fuel for tourism activities in Zimbabwe.

She said the HCZ has been facing difficulties stemming from lack of petrol for tourists to travel from South Africa to tourism destinations in Zimbabwe while at the same time, "there is no fuel to run our houseboats in the country".

Yeo, without elaborating, said members of the HCZ should not feel cheated as their levies and related subscriptions were used for maintaining resorts in Zimbabwe, which include Hakuna Matata, and some houseboats in Kariba.

"We have further costs such as staff salaries, this includes cleaning staff, gardeners, receptionists ... There is also certain maintenance involved in order to keep the timeshare resorts in a decent state. These fees are only covering operational expenses."

However, responding to recent queries by members about the running of the HCZ, she noted that there were financial irregularities in the HCZ that led to the closure of the company's offices in Zimbabwe and lack of access by members to international holiday resorts.

Members have questioned the levying of membership and reservation fees every year which are not backed up by audited financial statements despite such requirements under the Companies Act. Kudenga and Company, a Zimbabwean firm of chartered accountants, is believed to be looking into the finances of the HCZ.

A spokesman for the company said that "we are working on the finances of the Holiday Club Zimbabwe but I cannot tell you anything more than this." According to the chairman of an association of concerned HCZ members, Feny Mlambo, the operations of the club have been shrouded in mystery since 1995.

In 2000, there were over 5 000 members but the number has since dropped to 1 312 in 2006 owing to lack of accountability by the Timeshare Holiday Club Zimbabwe.

A prominent Bulawayo lawyer, Joseph James, who is one of the members of the HCZ, said: "We are exploring all the avenues to ensure that we get to the bottom of the whole thing. Members are depressed as they may have lost billions of dollars to the Holiday Club."

The members paid varying amounts to the HCZ between 1995 and 2005 but have been irked by lack of financial accountability and access to South African holiday timeshare resorts due to the recent closure of the offices of the HCZ and lack of information on their invested funds. This is one expensive timeshare scam!

2006-04-04T04:46:00.000-07:00

'Free' Cruises Can Dent Your Budget, But Is It A Timeshare Scam?

The neighbors were understandably excited when their daughter gifted them with a "complimentary" Caribbean cruise she received as a perk for listening to a timeshare pitch.

They were excited but smart.

They didn't rush to buy new swimwear and dancing shoes. Didn't call immediately to confirm space. Instead, they read the fine print. Wrote the sponsoring company for specific details. Checked the company's credentials. Requested input from someone — me — who has seen more than a few of these offers. Is it a timeshare scam?

Bottom line: They learned that the free cruise likely would cost them $1,500 to $2,000. And they'd have no guarantees about a specific ship, departure port, itinerary or sailing date. It is a timeshare scam.

Unlike too many unsolicited mailings and phone calls, this particular promotion, offered by a California-based firm, doesn't appear to be a timeshare scam. It's a seven-night cruise with either Carnival, Royal Caribbean or Norwegian lines, not an overnight gambling junket. It doesn't ask for a credit-card number in advance. Doesn't involve repeated pressure.

Strange "freebies"
But here's the deal:

The neighbors would be required to pay "between $198 and $284 per person" for port charges and government taxes.

They would be assessed "a $99 per person processing fee."

They would be required to pay round-trip airfare for any Florida or California cruise departures; that's another $250 per person minimum. Or if they were fortunate enough to be assigned a Texas-based ship, transportation and parking would cost at least $100.

If they wanted accommodations in anything other than an "entry-level stateroom" (read that "no ocean view"), they would pay an undisclosed upgrade fee.

Tips are extra; figure $10 per person per day minimum, or about $150 for a seven-night cruise. Factor in at least $50 per person per port — probably more — for shore excursions; that's another $300. Then there are expenditures for soft drinks, wine or liquor, the temptation of spa treatments and dozens more potential budget-busters. You'd pay for these on-board services no matter where you booked a cruise, but you've got to allow for them. They're not free, but it was not a timeshare scam after all.

2006-03-31T04:38:00.000-08:00

Vacation Timeshare Scam A Parcel Of Trouble

In April 2004 I bought a timeshare package from Club Navigo. When a family reunion and an injury made the trip to Orlando a no-go, I called Club Navigo to cancel. I was told that because it had been over 30 days since I’d paid, a refund was not allowed. I later got a call from a Club Navigo representative saying that we have to use the vacation by Feb. 10 or we will forfeit our $349. Is there anything that can be done? — A.W., Kansas City

DEAR A.W.: Although you wrote to us the first of February and we sent your letter right away to Club Navigo, the club didn’t respond until mid-March.

Before you decide to buy a timeshare or vacation package, we hope you check out the company. Consumers should be sure they are familiar with all the details and restrictions.

Sheila Morris, vice president of communications at Club Navigo, told us this was a case of miscommunication not a timeshare scam. She said the company will gladly extend your vacation usage for another 12 months and asked only that your travel be completed by March 31, 2007. She sent you the name of the contacts at Club Navigo who can reschedule your vacation. We forwarded those names and numbers to you. Started out as a timeshare scam, finished as a good deal.

--------------------------------------------------------------------------------

2006-03-29T04:35:00.000-08:00

Sour Truth About Timeshare Holidays: Share Money, Not A Timeshare scam.

Do not take the salesman’s tall claims at face value. Even the company he works for does not take responsibility for his words.

Why pay Rs 1,02,000 for a week’s holiday abroad when you can do it with just Rs 9, 000' - screams the advertisement of a timeshare resort and chances are you would definitely bite the bait and have a timeshare scam in your lap. Timeshare or vacation ownership is a concept whereby you can avail of a week’s holiday every year for around 25 years in the resort’s several locations spread across India and even abroad.

And companies such as Club Mahindra, Sterling Holiday Resorts are trying to make the most of the holiday season to scam in timeshare vacationers. What you have on offer is a week's holiday each year for 25 years in over 20 of their properties spread across India and over 3500 RCI affiliated resorts abroad for about Rs 1 lakh.

But wait. Take a closer look at the contract of a timeshare resort. It clearly states that there are no verbal/written promises not mentioned in the membership rules that have been made by the company. So do not take the salesman’s tall claims at face value. Read between lines and ascertain whether your investment is worth it or a timeshare scam.

Here’s what a Club Mahindra member has to say, “I invested Rs 2,25,000 in 2002 for a one bedroom Red holiday and am regretting. Firstly getting a holiday booking has been extremely difficult. We stay in Mumbai but have had to make umpteen STD calls to the Chennai office for bookings even 7 -8 months in advance for a week’s holiday."

" And inspite of that we are not sure of the availability. The annual maintenance charges that were Rs 2,000-3,000 then have now suddenly shot up to Rs 9,000 and we can’t help but pay up else lose our initial investment. Besides since we wanted to holiday even during the peak season we decided to invest more and go for a Red membership. That has hardly helped us, but more of another part of the timeshare scam. Moreover, the resorts are located far away from the centre place and we had to spend a huge sum only to reach the place.”

However Ramesh Ramanathan, MD, Club Mahindra Holidays disagrees. He says “Holiday bookings are accepted as early as six months in advance. Barring the rush of the Christmas/New Year week at certain resorts, we are able to accommodate member booking requests. We have a member-booking refusal tracking system in place which also enables us to proactively call back a member and help them book a suitable alternative / their next holiday. For international holidays it is recommended that members book (through RCI only) anytime between 6 months to even one year in advance, especially if members are specific about destination and time of holiday.”

But it doesn't appear to be as smooth sailing as Ramanathan puts it. At least from the number of grievances faced by consumer courts against these kind of packages. Says Advocate Hemant Jariwala, a Consumer court lawyer, “I have been handling around 5-6 timeshare scam complaints a month on timeshare resort companies and the issue with most is deficiency of service. There’s serious lack of transparency when it comes to allotting bookings. Either the property at a location is under construction or the amenities are not as promised. Why can’t the entire system of booking and allotment of holidays be online like the railways? These resorts are also let-out to outsiders at a premium cost perhaps the reason why it is not available to members."

He adds, “I have myself invested Rs 55,000 for a 1 Bedroom in 1994 with Sterling Resorts. Initially the service was good but later I began to face major hassles. For instance I paid Rs 13,000 for 10 years to RCI and I parked my week with them. I called them in January 2006 requesting for a holiday in Diwali this year or in December to any of their 15 resorts across the country except Shimla and Mussourie but they said its all booked, what a timeshare scam.”

And chances of exiting are dim. While Ramanathan says that they do offer a 10-day recession period within which a member can rescind his contract and they allow cancellation up to six months from the date of purchase, for those who've stayed for over 6 months, its a relationship for life.

Also it helps to be aware of who benefits the most. Is it the member or the outsider? As an outsider if you take a trip to the resort’s Varka Beach resort at Goa your package for 3 nights and 4 days would be Rs 14000 plus taxes (Year 2005 rates) for 2 adults and 2 children below 12. Now that would be for a Superior room with benefits such as Airport/Margao Railway station pickup and drop, welcome drink, breakfast, lunch, dinner plus several other attractions such as Bottle of Goan wine, 50% discount on all in-house alcoholic brands, complimentary use of swimming pool & gymnasium, one half-day sightseeing trip during stay at no extra cost

Now as a member visiting Varka Beach you would pay an annual maintenance cost of around Rs 6246 for a studio apartment for a week for 2 adults and 2 children below 12 years. However, you would not be entitled to all the abovementioned services free of cost. Inspite of being a member you would still have to pay extra for your food - 3 meals a day and fork out a good sum for several of the above mentioned benefits. What you however get is a paltry 20 % discount on ayurvedic and aroma massages that cost upto Rs 1,600 besides the 30% discount on steam, sauna that would actually cost around Rs 150 each. Just another timeshare scam.

2006-03-28T04:16:00.000-08:00

When Timeshare Travel Scam Trouble Pops Up

I live in England, and I called a company named Celebration Promotions (CP) in Florida in response to a pop-up ad on my computer. They offered me a vacation package of five nights at Celebration World Resort in Orlando, two nights in Cocoa Beach, and a two-night cruise to the Bahamas, all for the bargain price of £598 (about $1046) for four people. Is this a timeshare scam?

I was talked into giving my credit card details by a very persuasive salesperson, but I quickly regretted it after talking to my sons, who said it was probably a timeshare scam. I called CP back to cancel under their own seven-day cancellation rules and guidelines policy, but they would not accept my cancellation. Instead, the company offered me the holiday for £198 for four people, plus an immediate refund of £400, which I'm still waiting for. This is a timeshare scam!

I then e-mailed CP and said we would never use the holiday and could they please refund the whole £598 under their terms, but they refused and said that we had agreed to the holiday and that was that. I got so weary of e-mails back and forth that I have given in now, so in effect they have taken, or should I say stolen, our money for nothing. I wish you could show your readers this letter, just to let them know not to part with any money unless they are absolutely sure that they want the holiday. Watch out for this timeshare scam on your computer!

2006-03-27T04:22:00.000-08:00

DTI Winds Up Holiday Club (Timeshare Scam) Marketing Company

A Yorkshire couple were spared from shelling out £5000 in a timeshare scam after they contacted the government funded Consumer Direct helpline for advice. They also set in motion a chain of events which led to the company being wound up by the DTI.

Consumer Direct took the call from a woman and her husband who had been to a presentation by PR Holidays LTD, a Liverpool based company offering membership of an internet based holiday club called Network Vacations. It offered lifetime access to a wide range of highly discounted timeshare accommodation all over the world through an internet site.

The idea appealed to the couple who were looking to end a timeshare deal which tied them to the same place every year. They had also been convinced by the company's 'soft-sell' approach and at the end of the presentation agreed to sign a membership contract which gave them the option to trade-in their timeshare as part payment. Now that is a timeshare scam!

After returning home they became suspicious when they noticed that some of the accommodation the company offered was, in fact, available at cheaper rates through other deals. They contacted Consumer Direct, the DTI backed consumer helpline, for advice.

Consumer direct advised the couple that Network Vacations, the website being promoted by PR Holidays, was in fact already in liquidation after a separate DTI action, saving them from a costly mistake. Consumer Direct also referred the matter to local Trading Standards for action.

Unfortunately others were not so lucky and at least 10 people between them paid a total of at least £40,000 for memberships. Timeshare scammed.

Gerry Sutcliffe, Consumer Affairs Minister said:

"Consumer Direct gives thousands of people high quality consumer advice every day.

"It's great news that a phone call to the Government funded service helped this couple steer clear of a scam and led to the perpetrators being brought to justice.

"Consumer Direct is playing a crucial role in helping consumers and in ensuring that its Trading Standards partners are able to focus on clamping down on rogue traders."

The company was closed down at the High Court in Manchester and in his summing up Judge McGrath agreed there were "serious
irregularities" and an "unsavoury feel" to the company's dealings.

The registered office of PR Holidays Ltd is at Bartleet House, 165a Birmingham Road, Bromsgrove, West Midlands. The trading address is at 905 Beetham Tower, Old Hall Street, Liverpool. The directors are Peter Fraser and Rhian Howells.

The petition to wind up the company was presented on 10th January 2006 under section 124a of the Insolvency Act 1986 and followed investigations carried out by the Department's Companies Investigation Branch ("CIB") under Section 447 of the Companies Act 1985.

Network Vacations Ltd of Carleton Suite, Grange House, 11 Grange Place, Kilmarnock was wound up by the Court of Session in Edinburgh on 8th July 2005 following the appointment of a provisional liquidator, Mr David Hunter on 15th June 2005. The company and its predecessor Intasun Holidays (UK) Ltd were wound up following a DTI investigation after it was found that the 2,000 members were mislead as to the benefits they would receive for their £4,950 fee. This is a big dollar timeshare scam.

2006-03-26T06:47:00.000-08:00

Beach Road Surveys For Timeshare Scam

If you have ever walked along Pattaya's Beach Road then you will surely have been stopped by attractive young people carrying clipboards asking you to fill out a 'timeshare survey'.

They appeal to people's better nature by saying that they will receive 20 Baht commission for each completed timeshare survey.

Of course the survey is a scam, and they are actually after contact details so that high pressure salesman can ring your hotel and try and sell you timeshare holiday homes.

Alternatively, there is a thank you entry into a prize draw which you always win and somehow get taken to luxury apartments in Jomtien to claim the prize. Guess what, there are high pressure timeshare salesman waiting there to scam you.

If you don't want the attentions of the Beach Road youngsters, the merest shooing away gesture is sufficient. If you feel like a chat with a cutie, at least give them a false address, otherwise you will only have to take the hotel phone off the hook.

From Pattaya Talk

I fell for this in October last year, answered the questions because I felt sorry for the cutie who explained that she was on commission and smiled ever so nicely - she told me I had won a prize and must go with her to Jomtien to claim the prize - I went along with it and ended up talking with a guy from Amsterdam who was trying to sell timeshare holidays anywhere in the world for an immediate payment of £200.

I was introduced to the owner of the 'Timeshare Company' a guy who originates from Oldham in Lancashire - went to Pattaya 9 years ago and didn't go home.

Asked him for contract to inspect the small print and was told, you can see the contract after you pay the £200.

Ever so politely declined the offer, thanked them for the free coffee, lunch and taxi back to Soi 7.

Saw the timeshare scam girl the next day who thanked me because she got her commission - no problem as long as you don't get sucked in and pay for the timeshare thing.

The prize was a two week holiday in the back of beyond - ended up giving that to the taxi driver! Just another famous timeshare scam.

2006-03-24T04:26:00.000-08:00

Are TimeShares A Good Investment Or A Scam?

Dear Lou,

I was wondering why you think time shares are a bad idea? Also, what do you do if you've already signed up for the free trip and tour?

Matt

--------------------------------------------------------------------------------

Dear Matt,

Don't buy it! You get no value for your dollar, and you're also not building any equity in the thing. Equity implies that you could turn around, sell it and make money off the deal. The reason you can't make any money off timeshares is that there's virtually no market for them. Nobody in their right mind wants to buy one, mostof the time it is a scam to get your money.

Once you get stuck with a timeshare, it's like being lost in a black hole. You never get to use it enough to justify the cost, plus you've got things like maintenance fees and the possibility of borrowing the money and paying interest on something you'll hardly ever use. For what you'd shell out for a timeshare, you could go to Europe every summer for the rest of your life, without the timeshare scam!

Timeshares are a really bad deal Travis, but if you need to unload a timeshare, try EZ Timeshare.

Lou

2006-03-23T04:25:00.000-08:00

Resisting The Timeshare Scam For The Sake Of Free Airfare, Is It Worth It?

Why would anyone turn down the opportunity to possibly receive free airline tickets at a value of more than $3000 in exchange for listening to a 90-minute sales pitch?

The first phone call came on my cell phone from 715-236-2206 on Wednesday, March 8 in the late afternoon. I didn't know who the phone number belonged to so I ignored it. The assumption is that if the phone call is important, the caller will leave a message. This time the caller left no message, so I assumed the call must not have been important.

The next call came three hours later from 715-236-2214 followed by one from the same number an hour later and then again two hours later. Not a single message. The next call came the next day just before 9 a.m. This time the number was from 715-236-2217. An hour later 2214 popped up again and finally the caller decided to leave a message:

Jeff wrote:
“Hi Jesse, my name’s Jeff and I’m calling on behalf of Fairfield Resorts. You filled out the Ride, Air, Cash sweepstakes at the East Towne Mall and your name was selected to receive four round trip airfares that are good for the next 18 months. For all the details you can reach me at…”

I’m a very skeptical person. Immediately I thought, this had to be a timeshare scam. For one, I remembered putting my name in the box and the main prize was a new BMW. I also remembered checking a box on the ballot saying I didn’t want to be contacted with information on promotions from Fairfield Resorts. Apparently being selected in a drawing isn’t the same as being contacted for a promotion. Second, if I had won a prize, why would they call me six times before eventually leaving a message?

Still, my curiosity was peaked so after discussing it with a friend at work and determining it was probably a trick to get me to go and stay at a timeshare, I called. Sure enough, it was a trick to get me to go check out a timeshare in the Wisconsin Dells. All I had to do was sit through a 90-minute presentation at the Wilderness Resort (America’s largest water park resort) and I would receive my gift even if I didn’t sign up. To sweeten the deal, they would give me a coupon book with $40 worth of gas vouchers to help pay for driving to the Dells. It's a timeshare scam.

The airline tickets were described on the confirmation letter as being “4 round-trip airfares to your choice of Honolulu, Hawaii; Cancun, Mexico; Las Vegas, Nevada; Freeport Bahamas; Daytona, Fort Lauderdale; Orlando or Tamp, FL. Minimum purchases 5-10 nights for each 2 airfares used. If you choose to use all four airfares together, you must purchase two rooms. Not valid a full 7 days before or after major holidays.”

The restrictions as written in the letter didn’t seem all that bad and it looked like my main obligation would be to stay in one of their hotels. In my head I justified a drive to the Dells as an opportunity to write a story. Either they would try to screw me and I would come home and write a scathing expose of Fairfield Resorts or it would be a reasonably pleasant experience and I would come home and write about how easy it is to sit through a 90-minute presentation for the purpose of receiving free airfare.

Sadly, this story is neither.

On Friday I was away from my cell phone until late at night. When I finally had a chance to look at the incoming calls five of them were from Fairfield Resort numbers (715-236-2200, 2201, 2213). Were they calling to cancel? Nope, they called add even more smoke and mirror sweetness to the pot. Surely a tactic to ensure that I wouldn't jump ship at the last minute:

Rob wrote:
“Hi Jesse, this is Rob with Fairfield Resorts. Just wanted to give you a quick call to double check to make sure you didn’t have any questions about your confirmation letter for tomorrow at three o’clock. Be sure to bring that letter with you tomorrow because they will refer to the prize code in then upper right hand corner. Also you have been selected to receive a $1,000 online shopping spree which happens to be a leftover prize from an earlier promotion…”

Wow! A $1,000 shopping spree that you just happened to have lying around! How wonderful! That doesn’t make me anymore suspicious.

The next step was spending time doing internet research so I could be prepared when I was face-to-face with a sales rep. One site spoke of an incident in Nashville where the representative made a bride-to-be cry by telling her that if they couldn’t commit to a timeshare, their relationship would never last because they didn’t have trust. Another timeshare review forum is a mixed bag of negative and positive comments. What I read over and over again throughout the internet was “high-pressure, high-pressure, and high-pressure timeshare scam.”

Before leaving I decided to return Rob’s call and first asked him about the shopping spree:

“The shopping spree was selected to be given to a handful of special people.”

Then I asked about the hotel stay and I find out Fairfield Resorts is owned by the Cendant Corporation. I’m led to believe that because of Cendant’s ownership of a vast array of hotel properties, including Howard Johnson, Days Inn, Super 8 and Travelodge, I will have my choice of places to choose from when I travel (for the record, Cendant also owns Orbitz, Century 21, Avis and recently acquired Windham Resorts).

Finally, I ask if I’m going to be faced with high pressure sales tactics. Rob seems caught of guard by this question as he stalls and searches his computer for the right script. He replies, “There won’t be any high pressure sales. Fairfield is only trying to get its name out. You are under no obligation to buy. I am a robot.”

Good to know.

I soon find myself in the Dells in front of my Fairfield representative. I think her name was Leslie. What followed was fairly irrelevant. Anyone who takes part in one of these sessions is going to be faced with a different sales person who will try to read you and figure out what will make you break. Leslie knew I was a journalist. Her line of questioning quickly revealed that I had done some research on the program and I wasn't completely unprepared. She tailored the pitch to a skeptic who could also very well go out and reach an audience. She did her job well as I'm shocked to admit, she did change my mind on timeshares.

Case in point, she asked me early on "what is the first thing you think of when I say ‘timeshares?’”

I replied, “A timeshare scam.”

She didn't hesitate and thanked me for my honesty and then asked me where that impression came from. I explained and then she attempted to paint the Fairfield program as not being like traditional timesharing. She did a stellar job. During her evaluation I gave her high marks on her presentation, her friendliness and her ability to answer my questions. She didn’t upset me and I only felt pressured at the very end when I had to tell her I wasn’t interested three times in a row.

In addition to not being able to afford a timeshare at this time in my life, I really don’t want to be tied to that type of vacation. Essentially you need to know where you want to go 10 to 13 months in advance. I read that in advance and when I brought it up, Leslie didn’t sugar coat it. She said if you wait until the last minute, you aren’t guaranteed the timeshare you want. If you can plan 10 to 13 months in advance, you will most likely get what you want.

At this point in my life, when my vacations are spent traveling between cities, camping and staying with friends, I don’t see the value for paying $100 a month to invest in two weeks a year until I pay off the $25,000 for the minimum amount of points (the more you invest the more points you have to play with each year). It might be a different story if I was in my late 40s with a family.

Then again, if you have a family and are a fan of the Dells and all of its touristy goodness, in addition to being from Illinois, investing in a timeshare so you can spend time at the Wilderness Resort might make fiscal sense. Currently, as Leslie pointed out, they are building condos just for Fairfield members. Attached to those condos will be even more waterslides pushing Wilderness past Noah’s Ark as biggest waterslide park in the world. One night at the Wilderness is going to cost you $300 - unless you are a member of Fairfield. You have to decide, is spending $250 a month for 10 years worth it for that week of waterslides with the kids?

That was the problem. I couldn’t be angry because while a timeshare system isn’t for me, I can see how it could work for certain other people. Does that mean they won? I’m not sure. They didn’t get my money, but Leslie did pretty much do her job. I’m not sitting here right now writing a venomous post about how Fairfield Resorts swindled me and played me like a patsy. In order to do that, we need to take a moment and look at the “prizes.”

Remember the gas vouchers? In order to activate them you have to send in a form. Then after you send in that form they send you a coupon book with four $10 vouchers. Then you have to send in a receipt with each voucher and they will send you a rebate for every $10 of gas you buy. Not a bad deal, just some unexpected work.

What about the airfare that convinced me to take this trip in the first place? Not exactly choose your own adventure. In addition to all of the restrictions listed above, if you want to go to Hawaii, for example, you also have to book 10 days at one of two hotels. There is the Outrigger Reef on the Beach for $199 per night or Outrigger Waikiki on the Beach for $239 per night. It actually isn’t a bad deal, but there is a stipulation that prices may change in the material. The problem comes if you are looking for adventure and want to spend a night or two off of the big island. You’re going to eat at least $400, but then again, you do get around $1400 in free airfare.

Finally, what about that added incentive of a shopping spree because I was a special person? You won’t find a better timeshare scam than this one. The company that runs the $1000 shopping spree gimmick owns multiple shopping spree sites. The one my voucher referred to was KEShoppingSpree.com. The back of the voucher tells you to type the website into the address bar and not to use “Google or any other search engine.” Why? Not because they want you to go to the right site, but most likely because you will find yourself looking at a host of sites talking about what a rip off the shopping spree turns out to be.

“All items are free (up to $1,000 worth) except for the small item delivery fee to offset shipping, handling and administrative costs.”

There is some great stuff on the website, just take a look at this Mikasa “Fine Dinnerware Palatial Platinum 20pc Set.” They list the price at a whopping $448.00. So how much does it go for on the Mikasa website?
Mikasa has it listed as on sale for $159.99. Huh, well, you still get it for free, right? Not quite. What is the processing fee for an item listed as $448 on their website? $149! That’s right, you save $10. Nice work.

For more on the shopping spree, check out More of the Different. He received his "spree" via a car dealership.

Now the question is, were these prizes worth it? Well, the spree will go right in the garbage. I’ll definitely make sure I use the gas vouchers even if it is some extra work. And that airfare? I would be a liar if I said I wasn’t pondering the Vegas option. Maybe they will get my money after all, or maybe it is just another timeshare scam.

2006-03-21T04:28:00.000-08:00

The Mexican Timshare Scam

You buy a timeshare because you love to vacation, you love the timeshare resort, or you love the location. Period. It is a perk, it is a wonderful luxury. There are some beautiful, relaxing, and wonderful timeshares in Mexico. Read more about some great timeshares.

I would like to warn you of a growing concern about the fraudulent timeshare sales practice that is in effect at a few resorts in Mexico. You think you are buying a Mayan palace, but what you really get is scammed.

1. Be aware that Mexico laws require a 5 business day “cool down” contract cancellation period for timeshare purchases, and this right cannot be waived for any reason, under any circumstances. All monies are to be refunded.

2. Timeshare sales values do not increase, aftermarket prices are a great value and at least 40% discounted. (Check Ebay and Google).

3. Timeshare rentals are prices typically at, just over, or actually below the cost of your maintenance fees. (Check Ebay and Google)

If you are told anything contrary to the three rules above – walk away from the presentation! They are trying to scam you!

Most of the timeshare salesmen use high pressure tactics and are very persistent. They stretch the truth, state half truths, and they omit much. Expect this.

Read your contract. Make sure you have every document you signed. Insist on copies of everything they write, or at least take a picture of each document. If you try to cancel, take along a video recorder or a tape recorder.

Some salesmen are actually using illicit sales practices, and actually committing fraud in the case of telling you that you do not have the right to cancel in the next 5 business days.

We actually have copies of Mayan Palace training manuals and a cancellation waiver.

Cancellation Period

You must waive your 5 day cancellation period because you are buying a repossessed or "traded in" unit, and you can only have the cancellation protection once. SCAM Mexican law does not allow you to waive this right.

You must waive your 5 day rescission period because you are using an Equity Exchange. (trading in a different timeshare.) SCAM Mexican law does not allow you to waive this right.

You must waive your 5 day rescission period because you received a "young family" discount. SCAM Mexican law does not allow you to waive this right. Are you getting the picture?

You cancel your contract within the 5 day period - but they will not accept it. SCAM By Mexican law they must cancel and return all monies. Get proof you tried to cancel and they refused (bring a recorder) (call Profeco).

Make Money - Rent your unit

You can rent out the units for $1700 - 2500 a week. SCAM Some people are trying - but in actuality they are not renting for much beyond your maintenance fee, and often below. The developer is actually renting excess weeks at less than your maintenance fees.

There are timeshare rental services you can use for only $300 for a lifetime contract with no limit on weeks you sell. SCAM Yes they may list your rental unit - but the market does not command those prices and you just sit there, and sit there.

Use a reseller that does not charge so much upfront but charges commission per sale. They will work harder for you. SCAM. They already have your $150 joining fee. Find someplace that will only take a percentage - no join fee (Redweek or eBay).

Here - Phone this travel agency right now and ask them how much they can rent out your unit for. You then pick up the phone and talk to the agency. They will tell you they rent for $2500 and their supply cannot keep up with their demand. SCAM The rental company is in on the scam. Watch out for the Mexican Timeshare Scam.

2006-03-15T04:27:00.000-08:00

Indiana Attorney General Steve Carter Wants Hoosiers To Carefully Research Timeshare Scams.

Indiana Attorney General Steve Carter is urging Hoosiers looking to escape on vacation this spring to be cautious of timeshare scams. Carter also reminds consumers that timeshare resorts, travel club and vacation certificates may be tempting this time of year, spending time to research the offer will pay off in the long run.

“Last minute timeshare packages offering great deals or free accommodations can be tempting,” Attorney General Carter said. “But a paradise timeshare vacation could quickly turn into a nightmare if the accommodations aren’t to your liking or the entire package ends up costing more because you didn’t read the fine print.”

The best way to avoid falling victim to a timeshare scam or a deal that doesn’t meet your expectations is to do research on the company selling the package and on the offer itself.

The attorney general’s office recommends researching a company’s reputation using a variety of resources like online searches, the attorney general’s office and the Better Business Bureau.

Timeshare companies will also use a variety of ways to promote timeshare packages that often include free airfare and accommodations. These resort, travel club, or membership campground packages frequently require your participation at a sales seminar or presentation or even may even require a purchase.

Vacation certificates often include free hotel room or timeshare resort stays for several days and nights. Sometimes, certificates include airfare or a cruise, or provide one complimentary ticket with the purchase of a second. Some vacation certificates offer discounts at restaurants and other attractions in the area. Companies offering vacation certificates can require a fee or refundable deposit to reserve a vacation offer. It the deposit is refundable, written confirmation should be sent when the deposit is received.

The attorney generals office recommends the following tips to prevent consumers from falling victim to a timeshare scam:

· Avoid high pressure sales tactics and check with friends and local travel agents before signing up for a timeshare deal.

· Read the fine print carefully and determine all costs involved before signing any documents. Remember that if it’s not specifically mentioned, you will have to pay for it. Timeshare scam.

· Confirm all reservations in advance with the airline industry, hotel or resort, and the discounted business.

· Know your rights. You have the right to cancel or change the trip without penalty if a major change is made by the operator. Department of Transportation rules say that major changes include changes in departure or return date; change in destination; substituting hotels to one not named in the contract or a package price increase of more than 10 percent.

· Don’t pay with cash. A credit card gives you more protection. Timeshare scam.

Determine if the promotion boxes you in to a specific time period before making your reservation, and it you can’t make the specific time, find out if you can get your money back.

Also, if the accommodations are free, find out if you must use a specific travel agent. If you attend a land sales presentation, obtain a copy of the Property Report, often required by federal law, and read it before signing any contract or written agreement.

“Similar to many scams out there, if the trip sounds too good to be true it probably is,” Carter added. “Thoroughly checking all the details associated with the vacation promotion will ensure that you and your family have an enjoyable trip.”

2006-03-14T04:30:00.000-08:00

Timeshare Trip Contest 'Just A Big Scam,' Says Winner

Codiac RCMP are investigating a timeshare contest draw at the East Coast Women's Expo that one winner says is more like a scam.

Genevieve Robichaud attended the expo earlier this month, where she filled out a ballot for a contest that promised a trip to Florida as its top prize.

A week later, she got a call that she'd won. All she had to do was pay her own airfare to Florida to hear a pitch on timeshare ownership.

Total costs were going to be more than $1,000, says Robichaud.

"It was just a big scam. I did not win that timeshare trip and everybody could go and be part of this little contest or whatever," says Robichaud. "I'm not even sure I'm going to go next time they have a women's expo."

Heather Gunning, who represents the expo, says she sympathizes with Robichaud and others who have complained about the timeshare scam. But she says the RCMP has told her the company that ran the contest is above board.

"Unfortunately, I can't speak for the individuals that were upset. I'm sorry that they're upset and I would kind of hope that they come next year…and check out the trade show," says Gunning. "Was it just that particular booth, or was it the whole trade show?"

The company that held the draw is Bluegreen Corporation, a Florida-based Fortune 500 firm. Bluegreen develops, markets and sells planned residential, lake and golf communities mostly in the southeastern and south-central United States.

It has not offered any apologies to contest winners in Moncton.

Bluegreen spokesperson Lisa Thornhill says people who enter the contest give permission for the company to call when they sign an entry form.

2006-03-13T04:39:00.000-08:00

Timeshare Industry Comes Into Its Own

Timeshare has shaken off its dodgy image and is set for growth, writes Martin Kelly
February 18, 2006

THE old expression "time is money" has never been more appropriate, with Australia's timeshare industry shaking off a somewhat murky past and operators forecasting membership growth of up to 25 per cent this year.

Big brands -- such as Accor Asia Pacific -- are involved and the industry boasts a new respectability, thanks in part to increased legislation driven by the Australian Securities and Investments Commission.

Essentially, legislative changes mean that timeshare memberships can no longer be sold as a financial investment with the potential for capital gains, a criticism of these schemes in the past. As a result, timeshare is now marketed as an "investment in your lifestyle", and the industry is booming.

Thousands of Australians are buying into the timeshare dream with a minimum one-off membership costing between $12,500 and $17,000, plus annual fees starting at $300.

In return, members receive points, much like frequent-flyer schemes, that can be redeemed for resort accommodation, which is typically four star, with features such as a pool, gym, water-sports centre, day spa, shops and restaurant.

The entry-level fee will generally get a week's worth of accommodation (in perpetuity), possibly high season, depending on demand, which can be broken down into smaller blocks if required.

The appeal of these schemes is clear with one operator declaring: "Lifestyle is the buzz word these days."

Market leader Trendwest South Pacific, with 30,000 members, is forecasting 25 per cent membership growth over next year, and branching into new areas.

Major rival Accor Premiere Vacation Club, a joint venture between Accor Asia Pacific and developer Becton Corporation, has 12,000 members (up from 8500 in May) and is bullish about the future.

APVC chief operating officer Jim Sabot says that while the laws governing timeshare are necessary, there is scope to relax the legislation, which includes making timeshare operators place developed properties into a special trust.

"The regulations are better than nothing and have stood the Australian public in good stead, but there are high barriers to entry and I think the laws could be changed to more reflect the reality," Mr Sabot says. 'That is, timeshare is not an investment in a capital appreciating asset, it's a lifestyle investment. If we were not regulated tomorrow we would not sell it any other way."

Australian timeshare got its bad rap in the early 1990s when apartment oversupply in key markets, such as the Gold Coast, prompted unscrupulous developers to pump unwanted stock into timeshare schemes, which sold them at inflated prices.

Unlucky consumers at the time also bought themselves a lack of choice: the same holiday apartment every year, with availability often an issue. But that's one area where timeshare -- an industry which claims six million members around the world -- has changed dramatically.

Both major schemes each own around a dozen resorts in Australia, New Zealand and Fiji, with reciprocal or upgrade rights in "thousands" of other resorts through affiliate companies such as Interval International.

Transwest Asia Pacific chief executive officer Barry Robinson, a former managing director of Choice Hotels, says "the points are like currency" and that the range of redeemable options is continually expanding.

"In the last two years, we've been trying to expand beyond traditional timeshare. For example, we had a box for members at the Indy (car race)," Mr Robinson says.

Whatever the changes, direct marketing remains a cornerstone of the industry.

Letters, phone calls and time-sensitive special offers are the major marketing tools of both companies, while finance at interest rates of around 11 per cent is available to qualified applicants who don't have ready cash.

This is a popular option, with around 50 per cent of new members taking up finance.

Trendwest and APVC each employ about 200 tele-sales staff -- working the phones, encouraging new prospects to attend sales seminars -- while many others work in linked marketing departments. A typical approach is the one used by APVC last week in a letter to potential clients, which begins: "Congratulations! You are in a in a very select group!"

It says the recipient is eligible to receive accommodation or a "gift" valued at up to $800 but must call within 72 hours of receiving the letter, earn more than $50,000 a year and "complete an APVC holiday ownership preview" for at least 90 minutes.

"If married or in a life partnership, we ask that both you and your partner attend the preview together," the letter reads. Jim Sabot says the strongest sales tools for the sector are word of mouth and personal contact.

"The ideal way for us to acquire a member is for them to sample the product," he says.

Trendwest operates a similar strategy, but has in the past crossed the line, with ASIC taking it to the Federal Court after receiving complaints from consumers who purchased holiday credits from the company or attended its seminars.

As a result Trendwest agreed not to make the following representations to consumers: the purchase of holiday credits is a good financial investment; over time the resale price of holiday credits in a secondary market will remain stable or increase relative to their acquisition price; or, a strong market exists for the secondary sale of holiday credits.

Not that the change in approach has stifled momentum. According to Trendwest's boss Barry Robinson, who joined the company after the ASIC action, the future is extremely bright.

"We've had exponential growth each year and this year we predict we'll get another 10,000 members," he says.

Mr Sabot from APVC is also optimistic.

"Clearly the ageing of the population is very much in our favour, and a second home has become too expensive for many people to own or maintain, while lifestyle is the buzz word these days."

2006-03-10T05:02:00.000-08:00

Tenn. Targets Boca Timeshare Firm Over Taxes

The Tennessee taxman cometh: Bluegreen (NYSE: BXG, $15.48) is tussling over a possible $28 million tax bill with that state's Department of Revenue, a bill big enough to damp earnings of the fast-growing Boca Raton timeshare firm that has interests in that state.

The dispute turns on the question of what, exactly, is sold when a timeshare changes hands. Tennessee contends timeshare sales

Both Tennessee and Bluegreen declined comment on specifics of the case, but a senior tax analyst with Tennessee says that as timeshare sales have grown more sophisticated, calculating the tax bill has, too. Some transactions are neither fish nor fowl, she said: "Our law is pretty clear when it comes to right-to-use properties versus ownership of properties, but there are companies doing business in a way that maybe grays that line."

Condo conversion specialist Michael Halpin has another two West Palm Beach properties in his sights. In addition to Clear Lake Colony on Executive Drive, Halpin said he is looking at a multifamily property in the Villages, and "one other in the area, which I'm not at liberty to discuss."

Halpin is best known in Orlando for building or renovating more than 1,000 units in the city's urban core.

Last year, he detoured into condos, at one point handling $90 million in projects. He likes conversions. "The owner can come in and kick the tires," he says of the existing properties. Another plus: "It's yesterday's construction pricing," not the kind of prices generated by today's soaring cost of materials.

"It's just pencils and pens," snorted one online critic of Office Depot Inc. (NYSE: ODP, $33.24). "It ain't no Google."

It sure tain't: Google lost $17 a share, or 4 percent of its value, last Monday, the same day Delray Beach-based Office Depot hit a new 52-week high of $33.81.

Sure, Google's market cap is $107 billion, while Office Depot is making do with a modest $10 billion. But look at it this way: Google stock slipped on no particular news at all. Office Depot shares rose on no particular news at all. CEO Steve Odland will try to justify that blind faith Wednesday afternoon, when he takes to the Internet to unveil the Office Depot's fourth quarter and year-end earnings.

The face-lift remains on hold. Simon Property Group (NYSE: SPG, $79.91) last fall announced plans to announce plans to reinvigorate its 1 million-square-foot Palm Beach Mall. The 38-year-old property — the first indoor shopping mall in Florida — has been showing its age. But the situation remains elastic: "Soon," promises Les Morris, director of corporate public relations for the real estate investment trust. "Soon. I really can't say anything more than that."

Simon has sold off several properties, and any sale of this mall would be a boon to the bottom line: The 3 acres Dillard's sits on alone, valued at $3 million in 1999, is now valued at $8 million — and a conservative valuation, at that.

However, the brace of upscale Cityside condos across the street (Palm Beach Lakes Boulevard) represents a market niche Simon covets, points out Morris.

And the company isn't hurting for cash: Better-than-expected fourth quarter earnings touched off a shopping spree early last week as investors splurged on the Indianapolis-based real estate investment trust. Shares shot up by 22 cents, or 3 percent, just shy of the new 52-week high of $84.78 reached Jan. 27.

2006-03-09T04:36:00.000-08:00

Yucatan Timeshare Resort Investors Granted $20 Million In Settlement

The Arizona Corporation Commission has approved a $20 million dollar settlement reached with five defendants who sold investments in Yucatan Timeshare Resorts, an international investment program. The commission already has received a $4 million down payment from the defendants.

The money will be returned to the more than 350 Arizonans who invested in the timeshare program.

They had been promised that their money would be used to buy a timeshare that would result in an 11 percent return on their investment. However in many cases, the money was spent on other things without their knowledge.

The named defendants in the case are: Michael E. Kelly, South Bend, Ind., and Cancun, Mexico; Yucatan Resorts Inc., South Bend, Ind.; Resort Holdings International, Cancun; Yucatan Resorts, SA, Cancun and Panama; and Resort Holding International, Cancun and Panama.

2006-03-05T06:47:00.000-08:00

Timeshare Scams And Trickery

Most timeshare scams are no more than a variation on an old theme. It is rare that a week passes by without someone asking whether they should invest in the latest pyramid-selling scheme, or perhaps transfer funds to a foreign lottery in order to claim their prize money. The line ‘Your details have been selected at random’ should sound alarm bells but unfortunately this does not always happen.

Many of you will no doubt have heard of the so-called Nigerian 419 scam (named after section 419 of Nigeria’s penal code). This usually begins with an email from a wealthy African prince in exile who needs your assistance to release money from his bank account. The idea is that you will receive a percentage of the huge sum in return for agreeing to clear the funds through your bank account. Little by little the victim is drawn in until it is too late and they find their account has been cleared.

Much closer to home, I have recently come across an outfit operating on the Costa Blanca who claim to have purchasers ready to buy your timeshare. To many owners this news comes as a huge relief since they had previously been informed that it would not be possible to sell on their ‘investment’. The way it works is as follows. First of all a database containing the names and contact details of thousands of timeshare owners exchanges hands. The majority of people contacted are UK based. Initial approaches are made by telephone and promises made that a willing buyer has been found. Once sufficient interest has been generated the owners are told that they must come to Spain in person to complete the sale before a Notary (this part is also untrue). Having purchased flights, accommodation etc. and arrived in Spain the owner is then told that they have to pay an up-front administration fee of around €3,000 euros in cash. No doubt you’ve already guessed that once the money is paid across, the sellers return to the UK only to discover that the deal falls through and their €3,000 euros is forfeited.

I expect many readers will know of someone who owns a timeshare, others may come across a hopeful seller in a hotel lobby or restaurant who is about to be scammed. The basic rule is that if an offer sounds too good to be true, it usually is. The best way of defeating any timeshare scam is to spread the word so please do so.

2006-03-01T14:01:00.000-08:00

Sunset Group Timeshare Fraud

We purchased a timeshare from Sunset Lagoon in Cancun, MX while vacationing there in September 2005. We were sold an "investment" timeshare and were given the GUARANTEE of rental income for 2005 and 2006, and were also told that their U.S. subsidiary marketing company "Resorts International Marketing Corp" would sell our existing timeshare for $10,000 within 90 days. Under the terms of the guarantee, we should have received $6800 rental income in January 2006 and same amount in March 2006. We were given a document called "VIP Rental and Resale Enrollment Form" on Resorts International paper that included our Sunset Lagoon contract number. When we questioned where the guarantee appeared in our contract, the VLO called for the Sales Manager who pointed out that the VIP form was to serve as the guarantee. He confirmed that this was a part of the contract. Sunset Lagoon refuses to honor this guarantee and we have requested termination of contract and refund of $6129.86 due to gross misrepresentation of the contract and deceptive sales practices. Sunset Lagoon has defrauded us and refuses to rectify this situation. We advise everyone to STAY AWAY FROM SUNSET LAGOON - they are crooks, what a timeshare scam.

2006-02-27T04:46:00.000-08:00

BBB Warning: Watch For Timeshare Travel Scams

Watch out for deceptive timeshare travel scams, warns the Better Business Bureau. Told that they have won a "free" trip and must call a number to claim their prize.
Or they receive a fax at the office promoting an unbelievable vacation deal that looks as if it came through inter-office channels.

The BBB said that some bogus promoters take your money without providing the travel or trip that was promised. Other promoters advertise rock-bottom prices, but hide fees until the deal is sealed. Some promise luxurious timeshare accommodations and services but deliver a scam. Still others don't reveal that the deal includes an obligation to sit through a timeshare pitch at the destination. Finally, some promoters guarantee consumers that they can get a full refund if they decide to cancel the purchase of the timeshare, but fail to make good on their promise. The BBB recommends that you get the details of the promotion in writing, including the refund and cancellation policy, before sending a check or giving them your credit card number information.
Has this scam ever happened to you? Help others avoid the pitfall you experienced. Don't you get into a timeshare scam.

2006-02-22T04:25:00.000-08:00

North Not Amused By Timeshare Telemarketing Scam

POLICE at Oshikango in the North have arrested four representatives of a South African company promoting timeshare investments.

The Commander of Police in Ohangwena, Deputy Commissioner Armas Shivute, says the four representatives of Future Vest are being held on charges of fraud and attempted fraud, and a timeshare scam.

They will appear in the Ohangwena Magistrate's Court this week.

The four were arrested while giving a presentation for eight business people from Okalongo in the Omusati Region.

According to Deputy Commissioner Shivute, some of the Okalongo business people complained that the sales representatives had misled them.

One of the businessmen, Josua Mwetupunga, told The Namibian that telemarketers representing Future Vest had called them from South Africa and told them that they had won prizes such as free trips to Mauritius and home appliances.

They were invited to attend a presentation at the Oshikango Country Lodge on Saturday morning, Mwetupunga said.

When they arrived at the lodge, they were told that they would only qualify for the prizes by investing in timeshare properties, what a timeshare scam.

The upset businessmen then called the Police.

"We are worried about where this company got our names and other particulars, such as our telephones, cell phones and our bank account details," said Mwetupunga.

When approached by The Namibian, the owner of Future Vest in Durban, Daryl Gray, said he had heard about the arrests and had instructed lawyers to go to the aid of the representatives doing the timeshare scam.

He denied that the representatives had been doing anything wrong, saying it was a standard Holiday Club timeshare scam, which is often made in Namibia.

Gray said Government knew about their operations and Holiday Club had obtained approval for a timeshare resort at Swakopmund.

2006-02-21T04:23:00.000-08:00

Bogus Holiday Club Scams

How they hook you in

They phone you at home and tell you that you have won a 'free' holiday. Or they approach you on the street whilst on holiday and give you a scratchcard which reveals that you have won a 'free' holiday. All you need to do is go to a presentation to collect your prize and learn more about a new holiday venture. You will be told that this is not about timeshare, but it is a scam.

You will later find out that the 'free' holiday isn't free, as you must pay for extras, such as flights and other add-ons and go somewhere you don't want to go at a time that doesn't suit you.

At the presentation

Often the presentation will be at a plush hotel. The brochures will look glossy and convincing. You will be made to feel as if you are joining an exclusive holiday club which will offer exciting and great value holidays all over the world in top class accommodation, but a scam.

What they don't tell you

Unlike the law covering timeshare arrangements, you are not necessarily given a chance to cancel if you have second thoughts.

The reality

What are you buying?

Don't believe everything you hear. What the bogus holiday club tells you in the sales pitch and what is in the contract you sign could be two very different things:

'You will have holidays in fabulous places at times of year that fit in with your needs.'
Reality: no dates or destinations are guaranteed and holidays are often not available when and where you want them. You might end up going nowhere.

'You will get your all your cash back after four years.'
Reality: the contract will not guarantee you getting back all your money.
There is also no guarantee that the company will still be here in four years.

'Look how much cheaper we are than the regular tour operators.'
Reality: the advertised discounts are not guaranteed and some deals are available elsewhere anyway. You could end up paying as much as the high street brochure price.

'The holiday club's subscription is worth a lot. You can sell it on later or leave it to your children as a bequest.'
Reality: the resale value may be zero and you may not even be able to find a buyer. There are annual subscription charges to pay whether you use the holiday club or not.

'This club will give you everything you ever wanted from a holiday.'
Reality: the holiday clubs won't be held accountable for any spoken promises made by their sales reps. They will only provide what is agreed to in the contracts that you have signed.

The contract

Don't be pressurised

The timeshare scam will try to get you to sign on the spot - but do not let yourself be pressurised - ask for time to think it over. Seek independent advice.

Watch out for the techniques the bogus club uses:

the presentation has lasted so long you are tempted to sign just because you are desperate to leave
you are offered unlimited free alcohol to get you into the mood to sign up
they have made you a special discounted offer only valid for that day
you are not left alone to discuss anything with your partner and you are given very limited time to view the contract.
The three-point checklist

Not all holiday clubs are disreputable. To avoid being caught by a holiday club that is bogus use this checklist and take your time to think things through:

1. Can you take the contract away and come back in a few days' time with your decision?
2. Do you have any cancellation rights, and are they written down?
3. Is everything in writing in the contract that was promised to you at the presentation?

DO NOT sign anything, no matter how much you are pressurised, unless you are sure it is exactly what you want. Do not get in the middle of a timeshare scam.

2006-02-15T04:35:00.000-08:00

Paradise Lost

If you have been offered a 'free holiday' or a chance to join a 'holiday club' to be very careful, as the old 'timeshare scam' seems to be back, under a slightly different guise. Citizens Advice has now published Paradise lost, which documents the failure of current timeshare legislation to protect consumers from rogue traders. You can download the report at the bottom of this page.

Increase in complaints

European Consumer Centres are seeing an increase in complaints from people who have bought 'holiday club' membership at high-pressure sales presentations, often after winning a 'free' holiday. The holiday turns out not to be free and is poor value and inflexible. Problems in the timeshare and holiday club market are not new. Trading standards departments in the UK had over 4,400 complaints in 2002 alone.

High pressure sales tactics

At presentations people are bombarded with facts and figures, and pushed into signing a contract. They are often persuaded to pay a deposit on the spot, which is non-refundable and there is usually no cooling off period.

To combat pressure selling, the Timeshare Act gave consumers a cooling-off period and made it a requirement for timeshare companies to provide information about the contract; it also banned taking deposits from consumers when they first signed up. Rogue traders avoid current legislation by not selling timeshare, but a slightly different product through 'holiday clubs'.

Consumers not protected

The new 'holiday clubs' escape the definition of timeshare by not applying to fixed accommodation - they are either on boats or in a range of different locations. They also bypass the protection given to consumers by limiting the holiday club packages to under 3 years.

2006-02-10T05:35:00.000-08:00

Timeshare Resale Scam No Walk On The Beach

Time-share ownership can be worthwhile, but it also can be very frustrating. Just take a look at some comments and questions from readers, along with my responses:
John Bredstrand from Vancouver, Wash., said: "You mentioned that a time share should not be looked at as an investment. That is an understatement. You are very likely to be very disappointed if you try to resell a time share with the idea of recovering even half of your investment. For the purpose of time-share research, a great resource is the Timeshare Users Group at http://www.tug2.net . This is a topic I think the public should definitely be informed about."

And I definitely agree. I also concur that the volunteer-run Timeshare Users Group is a useful Web site for potential time-share owners, current owners and those interested in selling their time shares. Most of the information the organization provides comes from time-share owners. TUG collects reviews and ratings on more than 2,000 time-share resorts. I suggest if you're interested in buying a time share, visit this Web site first.

It will cost you $15 for the first year of membership. The fee pays the expenses of running the Web site. For your money, you get access to the part of the site that provides resort reviews and ratings. The reviews include pictures, general information and a list of e-mail addresses of owners willing to answer questions. Members also are able to list their time shares for sale ($10 for a four-line ad).
If you want general information and advice about the time-share industry, you don't have to become a member. That information is free. Look for the heading in the bar on the left, "Timeshare News/Info." There you will find material on time-share scams along with tips on buying and selling.

Colleen Lohnes from Morrison, Colo., said in an e-mail: "I wonder if you have any ideas in the area of time-share resales? My experience has probably been typical and very frustrating and disappointing. The promises of the companies that say they can rent or sell your time-shares are overinflated and I wonder if they even try . . . or they do very little. Unfortunately, I paid almost $1,000 to two companies. Despite regular calls from me, they have never rented or sold either of the two time-shares we placed with them. Any suggestions that don't require up-front payments?"
As this reader found out, selling a time share can be very difficult. Here again, TUG has some great information. First, the group says you should never pay an upfront fee as a condition to buy, sell or rent your time share. Time-share owners desperate to sell often fall victim to time-share resale scams. TUG recommends that owners deal only with a licensed broker/agent who works on commission from proceeds of a sale.
It's important to note that time shares sell for 30 to 50 percent of what you originally paid (and that's if you're fortunate -- some owners can't give them away). You may do better on the resale market if you own a time share at a premium, brand-name resort developed by such companies as Starwood Hotels & Resorts, Disney, Marriott, Hilton and Hyatt.
Certainly you can try to sell your time share yourself on any number of online auction sites, such as eBay. Also, contact the developer to see if the company has a resale program; many of the brand-name time-share sellers do. When selling, keep in mind that even if you don't get much for your time share, you could be freeing yourself from annual maintenance and exchange fees. In some cases that can amount to more than a $1,000 a year.

One time-share owner, who asked that he not be identified, wanted to reemphasize those high costs. He wrote: "Annual maintenance fees plus exchange fees, plus exchange company membership fees plus . . . add up quickly so that it is often as cheap to rent as to [buy] a time-share."
If you don't want to go the do-it-yourself route to sell your time share, try Timeshare Resales Worldwide ( http://www.alltimeshare.com ), which specializes in resales of vacation time-share ownership. If nothing else, visit the site for tips on selling your time share.

2006-02-08T05:14:00.000-08:00

Residents Receive Timeshare Sales Pitch Or Timeshare Scam Pitch?

A timeshare resort in South Lee, Mass., is sending residents mailings that promise cash and prizes if they attend a sales presentation. Scam tip off!!

NewsCenter 5's Susan Wornick reported Thursday that the Oak n' Spruce Resort recently sent residents two mailings.

The first mailing is described as a "free entry" with a "guaranteed prize" of a shopping spree, fancy car, cash or vacation. But the small print says, "you must attend a 90-minute timeshare sales presentation scam to be eligible to receive your prize and gift(s)."

The second mailer claims that the person who received the letter, won a "great prize." But, the resident has to pick up the prize in person. There is no mention of the timeshare scam, but the mailer is also for the Oak 'n Spruce Resort.

When NewsCenter 5 called the phone number on each of the mailings, a telemarketer said residents would need to come in to the company in person with their spouse to collect the prize.

The timeshare scam telemarketer also said that the resident would have to make an appointment at the time of the initial phone call, or they would forfeit the prize.

Just another timeshare scam!

2006-02-06T08:21:00.000-08:00

Holiday Club Scam

If you have been offered a 'free holiday' or a chance to join a 'holiday club' to be very careful, as the old 'timeshare scam' seems to be back, under a slightly different guise. Citizens Advice has now published Paradise lost, which documents the failure of current timeshare legislation to protect consumers from rogue traders. You can download the report at the bottom of this page.

Increase in complaints

European Consumer Centres are seeing an increase in complaints from people who have bought 'holiday club' membership at high-pressure sales presentations, often after winning a 'free' holiday. The holiday turns out not to be free and is poor value and inflexible. Problems in the timeshare and holiday club market are not new. Trading standards departments in the UK had over 4,400 complaints in 2002 alone.

High pressure sales tactics

At presentations people are bombarded with facts and figures, and pushed into signing a contract. They are often persuaded to pay a deposit on the spot, which is non-refundable and there is usually no cooling off period.

To combat pressure selling, the Timeshare Act gave consumers a cooling-off period and made it a requirement for timeshare companies to provide information about the contract; it also banned taking deposits from consumers when they first signed up. Rogue traders avoid current legislation by not selling timeshare, but a slightly different product through 'holiday clubs'.

Consumers not protected

The new 'holiday clubs' escape the definition of timeshare by not applying to fixed accommodation - they are either on boats or in a range of different locations. They also bypass the protection given to consumers by limiting the holiday club packages to under 3 years.

2006-02-01T13:22:00.000-08:00

TIMESHARE SUIT - Royal Oasis Owners May Be Taken To Court

Several timeshare owners of the now defunct Royal Oasis resort are talking with lawyers and plan to file a class action suit.

Among those expected to be named in the suit are resort owner Driftwood Freeport, David Buddeyemer, president of Driftwood Freeport Limited, and Lehman Brothers.

The situation is leaving a bad taste in the timeshare owners' mouths and a terrible impression on the government of The Bahamas.

"We don't want it to come to this, but with no information forthcoming, it seems we have no other recourse," says one frustrated owner, who has yet to use her timeshare since her purchase in 2003.

Fifteen months ago, the Crowne Plaza Golf Resort and Casino at the Royal Oasis closed down, reportedly for much needed repairs after Hurricane Frances in September 2004.

The closure forced the lay-off of some 1,300 employees and subsequently the timeshare arm.

With no word from the timeshare resort for several months regarding a pending sale or reopening of the resort, and virtually stuck with a timeshare point system that is useless to them, several owners are threatening legal action.

Darlene Barber from Stafford, Virginia, paid cash for her timeshare "points" in July 2004 and says unlike many she can't stop her payment.

"I didn't take a loan, I didn't make monthly payments, I wrote a check for $12,000," Mrs. Barber told The Freeport News yesterday.

Just four weeks ago, she received a letter from RCI stating that there was a hold on her timeshare points.

She said, according to the letter, the "management company" (Driftwood or Royal Oasis) had notified RCI that she had not paid her maintenance fees. But Mrs. Barber explained that she had never received a bill.

With her points being frozen, she is unable to take advantage of any other timeshare properties like she had anticipated.

"Now we are out in limbo. We can't go anywhere because RCI says our points are blocked and no one will return my e-mails or my phone calls and so I'm out of $12,000 and can't even go on a vacation," she said.

After the resort closed, she was told the owners were rebuilding, but she said red flags started shooting up when she received the letter.

"That's when I started making phone calls and realized that Driftwood had abandoned everything down there," she said.

Now, she says she doesn't understand how Driftwood can have property all over the Untied States and elsewhere and still be running and totally abandon the people who have invested in their project in Grand Bahama.

The resort closed only two months after she bought her points, adding insult to injury.

She says the situation is upsetting and even admits it makes her want to cry at times.

"Hopefully, I would get my money back," said Mrs. Barber, who is willing to go all the way. "Whatever I have to do."

Some owners even took out loans to buy their time-share, while others have been making monthly installments.

A number of owners continued with their monthly payments out of fear they would lose their points, but they now question where the funds were going since the resort remained closed and their points have been frozen.

Owners Francis Becker and Diane Sgro of Vernon, Connecticut, say they had not been impressed with the timeshare unit's "unprofessional system" even before the hurricanes.

The couple purchased their points in February 2004 and Ms. Sgro says it has been chaotic ever since they returned to the U.S., trying to get through to the time-share unit.

"It's unfortunate that they were hit with the hurricane; however, all of this could have been handled more appropriately," she said yesterday.

Ms. Sgro revealed they were unable to use their points in the first year before the hurricanes hit.

While she is not saying whether they are joining in on the class action suit, she said they are going to take some action for the thousands they have invested.

"We're going to do what we feel we have to do to recoup our money and also make sure that others are aware of their unprofessional manner of doing business," she said.

Some owners also feel the government is not helping either and have made attempts to get their plight heard via e-mails and telephone calls, but to no avail.

One Alberta, Canada, father and husband, in a recent e-mail to Prime Minister Perry Christie, explained that they had such a wonderful time here, they invested in the Royal Oasis timeshare, but now they fear their investment is lost.

In fact, they were planning to send their daughter and her friends on vacation here after they graduate high school next year.

Still anticipating his return to the island to bask on our "beautiful" beaches, he beseeched the prime minister, "I would like to ask for your attention to this situation so that this can be resolved quickly."

To-date, there has been no word on the status of the resort or the time-share unit.

2006-01-30T04:33:00.000-08:00

Violence And Corruption Scams Speed Timeshare's Demise

They once offered holidaymakers the dream of their own place in the sun. But years of bad press about scams, violence and corruption has shattered consumer confidence in timeshares to such an extent that the industry may be in terminal decline, a report obtained by The Observer reveals.

With sales falling, many leading companies in the industry are reporting losses. And the law has failed to keep up with the rogue traders, with reports that local police in Spain and Portugal have been bribed to turn a blind eye to any complaints from wronged customers.

Only last week, the business was back in the spotlight after the gangland-style murders of Billy and Florence Robinson, the British couple who made millions of pounds from their timeshare business in Tenerife. Robinson, a former associate of notorious conman John 'Goldfinger' Palmer, was believed to the victim of a timeshare turf war, possibly involving Eastern European gangs.

A report by the Timeshare Consumers' Association describes an industry in crisis. It warns: 'Unless action is taken soon which will result in a recovery of consumer confidence there is every possibility that sales of timeshare in Europe will cease in the foreseeable future.'

A timeshare is the purchase of a right to occupy accommodation for a period of time - usually a week - on a regular basis for a number of years, with Spain and the Canary Islands most popular among Britons. The industry took off in the Seventies but was plagued by tales of couples cheated by con men.

The TCA's report found: 'The timeshare industry has sought to enhance its profits by applying corruption and bribery at all levels. Individual timeshare owners are targeted - wined and dined - to encourage them to act as "independent" endorsers of the product.

'Local police (mainly Spain and Portugal) are believed to be provided with "benefits" so as to turn a blind eye to complaints from consumers. TCA have identified a major upsurge in reports of harassing, intimidatory and threatening practices against consumers who refuse to buy or cancel or encourage others to cancel. Female consumers are being sworn at; males are being threatened with physical harm.

'Fraud against consumers has increased in intensity, sophistication and spread during the last year. More companies are now acting fraudulently, with more complex and clever frauds against more people. And some of the newer entrants to the fraud game are those businesses which, until a couple of years ago, were regarded as being respectable.'

The TCA listed some of the complaints it has received. One person said their experience had left them frightened to answer the telephone, another was in tears for hours and a pregnant woman was told by a manager that he hoped she would lose her baby.

But operators were still shaken by the double murder, said Sandy Grey, chairman of the TCA. 'Somebody who knew the Robinsons said to me: "It's getting close to home." In Tenerife, Eastern European gangs are a growing factor. Touts who seize on holidaymakers with a sales pitch want to keep rivals off their patch, so they employ heavies from abroad. It becomes a turf war.'

In recent years gangs from Russia, Albania, Kosovo and Romania are believed to have sought a slice of the multi-million-pound industry. There are even reports that profits from timeshare scams have funded terrorist groups in the Middle East.

Palmer was recently released early from an eight-year jail term for selling fake timeshares to 16,000 holiday- makers, who lost a total of £30m. Associates of Robinson say he had become over-confident since Palmer's release and was no longer giving other criminals involved in the timeshare business the proper amount of 'respect'.

A new 20-man police unit is to be permanently installed on Tenerife from March to target criminals operating in the industry. The Costa del Sol already has such a unit.

The TCA receives around 3,000 complaints per year. Three court cases are to be heard in the Canaries, London and Madrid against timeshare operators, each accused of stealing more than £100m from consumers. Some operators get round legislation by rebranding as 'discount holiday clubs' but still sell bogus schemes.

Peter van der Mark, secretary general of the Organisation for Timeshare in Europe, denied there was a crisis. 'It's been cleaned up remarkably since the mid-Nineties,' he said. 'When legislation came in in Spain in 1999, we saw a lot of the scammers going away. Complaints are down and decreasing. Last year across Europe we received 144 member complaints, of which more than 90 per cent were solved.'

2006-01-26T04:47:00.000-08:00

Violence And Corruption Speed Timeshare's Demise

They once offered holidaymakers the dream of their own place in the sun. But years of bad press about scams, violence and corruption has shattered consumer confidence in timeshares to such an extent that the industry may be in terminal decline, a report obtained by The Observer reveals.
With sales falling, many leading companies in the industry are reporting losses. And the law has failed to keep up with the rogue traders, with reports that local police in Spain and Portugal have been bribed to turn a blind eye to any complaints from wronged customers.

Only last week, the business was back in the spotlight after the gangland-style murders of Billy and Florence Robinson, the British couple who made millions of pounds from their timeshare business in Tenerife. Robinson, a former associate of notorious conman John 'Goldfinger' Palmer, was believed to the victim of a timeshare turf war, possibly involving Eastern European gangs.

A report by the Timeshare Consumers' Association describes an industry in crisis. It warns: 'Unless action is taken soon which will result in a recovery of consumer confidence there is every possibility that sales of timeshare in Europe will cease in the foreseeable future.'

A timeshare is the purchase of a right to occupy accommodation for a period of time - usually a week - on a regular basis for a number of years, with Spain and the Canary Islands most popular among Britons. The industry took off in the Seventies but was plagued by tales of couples cheated by con men.

The TCA's report found: 'The timeshare industry has sought to enhance its profits by applying corruption and bribery at all levels. Individual timeshare owners are targeted - wined and dined - to encourage them to act as "independent" endorsers of the product.

'Local police (mainly Spain and Portugal) are believed to be provided with "benefits" so as to turn a blind eye to complaints from consumers. TCA have identified a major upsurge in reports of harassing, intimidatory and threatening practices against consumers who refuse to buy or cancel or encourage others to cancel. Female consumers are being sworn at; males are being threatened with physical harm.

'Fraud against consumers has increased in intensity, sophistication and spread during the last year. More companies are now acting fraudulently, with more complex and clever frauds against more people. And some of the newer entrants to the fraud game are those businesses which, until a couple of years ago, were regarded as being respectable.'

The TCA listed some of the complaints it has received. One person said their experience had left them frightened to answer the telephone, another was in tears for hours and a pregnant woman was told by a manager that he hoped she would lose her baby.

But operators were still shaken by the double murder, said Sandy Grey, chairman of the TCA. 'Somebody who knew the Robinsons said to me: "It's getting close to home." In Tenerife, Eastern European gangs are a growing factor. Touts who seize on holidaymakers with a sales pitch want to keep rivals off their patch, so they employ heavies from abroad. It becomes a turf war.'

In recent years gangs from Russia, Albania, Kosovo and Romania are believed to have sought a slice of the multi-million-pound industry. There are even reports that profits from timeshare scams have funded terrorist groups in the Middle East.

Palmer was recently released early from an eight-year jail term for selling fake timeshares to 16,000 holiday- makers, who lost a total of £30m. Associates of Robinson say he had become over-confident since Palmer's release and was no longer giving other criminals involved in the timeshare business the proper amount of 'respect'.

A new 20-man police unit is to be permanently installed on Tenerife from March to target criminals operating in the industry. The Costa del Sol already has such a unit.

The TCA receives around 3,000 complaints per year. Three court cases are to be heard in the Canaries, London and Madrid against timeshare operators, each accused of stealing more than £100m from consumers. Some operators get round legislation by rebranding as 'discount holiday clubs' but still sell bogus schemes.

Peter van der Mark, secretary general of the Organisation for Timeshare in Europe, denied there was a crisis. 'It's been cleaned up remarkably since the mid-Nineties,' he said. 'When legislation came in in Spain in 1999, we saw a lot of the scammers going away. Complaints are down and decreasing. Last year across Europe we received 144 member complaints, of which more than 90 per cent were solved.'

2006-01-20T15:08:00.000-08:00

Walnut Creek Real Estate Scam Bilked Scores Of Investors

Contra Costa County authorities are investigating a timeshare real estate investment scam that bilked scores of investors out of about $9 million.

The district attorney's office says John Slade Banker, 83, of Walnut Creek, is the "prime suspect" behind the timeshare real estate scam, which involved by some estimates at least 120 investors in several states, including California, Colorado and Texas.

Prosecutors are still investigating the case, and Banker has not been charged, said Jim Sepulveda, a senior deputy district attorney.

The timeshare real estate involved purchasing land beneath fast-food restaurants and leasing the property to companies such as PepsiCo, which once owned Taco Bell, KFC and other restaurants.

A PepsiCo spokeswoman said the company's name was used fraudulently, and the firm is prepared to cooperate with investigators.

Banker, who has a history of involvement in fraudulent business timeshare real estate, is believed to have fled to Mexico. A Danville attorney who has represented Banker in other matters said he doesn't know anything about the latest allegations and has been unable to contact Banker for three weeks.

Banker served more than three years in prison after he pleaded guilty to two counts of timeshare real estate scam in 1980. He is alleged to have sold 29 pieces of property that he didn't own, according to court records.

In 1989, Banker served three years of probation after pleading guilty to working as a real estate banker without a license, prosecutors said.

One of Banker's associates, Conrad Colbrandt, pledged $112 million over several years to St. Mary's College, prompting ambitious construction, such as a recently built $26 million science center on its Moraga campus. Earlier this month, Colbrandt told school officials he couldn't fulfill the pledge.

Colbrandt's attorney says his client was one of the timeshare real estate scam's victims. Investigators say Colbrandt notified them about the scam and is cooperating in the investigation.

Among the timeshare real estate scam's victims was James Cravens, 54, of Antioch, who handed over $13,700 after Banker told him his investment would grow to $5 million over 35 years. Cravens and his wife had hoped the investment would help them send their 16-year-old son to college and save money for retirement.

"It was going to help us get ahead," Cravens told the San Francisco Chronicle. "We thought we were smart enough to (see) something like this coming. We thought we would certainly be able to identify a timeshare real estate scam."

2006-01-18T14:19:00.000-08:00

Tenerife Timeshare Couple Beaten To Death

Spanish police are investigating the murder of a British couple in Tenerife.
It is understood the couple, in their 50s, had lived there for more than 15 years and ran a scam of a timeshare business.

Their bodies were found near their home at San Miguel, close to Playa de las Americas, in the south of the island. Lucky for the ocean.

The Foreign Office said it would not confirm the couple's names until relatives had been told.

A police spokesman told the Daily Telegraph: "The couple had severe head injuries and everything points to them being the victims of a brutal attack with a heavy object, probably a maintanance fee!

"There are no signs of anything being stolen from either of the victims."

The couple once worked for fraudster John "Goldfinger" Palmer, according to The Daily Telegraph.

The Spanish island's timeshare industry is yet to emerge from his shadowof scam after he was jailed for eight years in 2001 for a complex scam.

Up to 17,000 investors, many of them elderly, paid up to £30m for shares in holiday homes they never received.

Palmer, dubbed "Goldfinger" after being acquitted of handling gold from the £26m 1983 Brinks-Mat bullion robbery, was declared bankrupt in 2005.

Tenerife journalist Karl McLaughlin told BBC Five Live that Spanish police are investigating whether the couple may have been victims of a timeshare turf war.

He said: "South Tenerife and particularly Playa de las Americas have been in the headlines quite a lot in recent years because of considerable criminal activity.

"There have been many stories of violent patch wars in the timeshare industry. It is amazing how this scam can happen.

"There's also an increasing presence of eastern European mafia on the island, we've had several cases of shootings involving Albanians, Kosovars and lately Romanians."

Is it that easy to pull off a timeshare scam?

2006-01-15T07:19:00.000-08:00

Conman Jailed For Timeshare Scam

Jeffrey Armstrong, 51, who originally came from Stockport, pleaded guilty to 14 counts of obtaining property by deception or timeshare scam.

He also admitted 27 counts of obtaining credit while bankrupt in May last year.

Armstrong was sentenced to three years and three months in prison at Minshull Street Crown Court on Thursday for timeshare scam.

He was also banned for five years from any involvement in a commercial company.

A father-of-one who sent his eight-year-old daughter to private school, Armstrong had previous convictions for dishonesty.

Many victims of the timeshare scam were elderly and disabled who wanted to ensure they could secure holidays in the future, the court heard.

Between 2001 and 2003, he ran several timeshare scam businesses from his former home on Dialstone Lane in Offerton, placing adverts in national newspapers.

He traded under a variety of business names, including European Timeshare Association, Timeshare Overseas European Services (TOES) and Trading Places International.

The timeshares he advertised included locations in Spain, Florida, Portugal, England and Scotland.

He asked interested parties to sign a contract and requested deposits ranging from £500 to £7,000. He used other people's credit card details to pay for services such as hire cars, flights and newspaper advertising.

'Arrogant manner'

The certificates customers received were either bogus photocopies or out of date.

Police were alerted after a large number of customers began to complain of the timeshare scam to Trading Standards officers nationwide.

Det Sgt Steve Taylor, who headed the investigation, said: "Jeffrey Armstrong preyed on vulnerable people.

"A number of his clients were elderly or had disabled or seriously ill children or partners."

He added: "He operated in a confident and arrogant manner and jumped on people's weaknesses to satisfy his own greed."

A true timeshare scam!

2006-01-12T04:46:00.000-08:00

Jail For Timeshare Scam Conman

A GREEDY timeshare smam man has been jailed after he fleeced thousands of pounds from more than 70 would-be holidaymakers who dreamed of their own place in the sun.

Jeffrey Armstrong, 51, from Offerton, Stockport, put adverts in national newspapers with the promise of bargain timeshare deals.

He visited those who replied, offering them big discounts on holidays to Spain, Florida and Portugal, and in England and Scotland. Nothing but a timeshare scam.

Victims handed over between £500 and £7,000 as deposits, but the certificates he gave them for shares in holiday complexes either did not exist or were worthless. It is thought he may have pocketed more than £200,000.

Armstrong was jailed for three years and three months at Minshull Street Crown Court in Manchester. But it emerged he could be released after just six months because of time already served on remand since May.

The policeman who investigated the case, Det Sgt Steve Taylor from GMP's commercial fraud unit, said he was "disappointed" with the sentence, describing Armstrong as a timeshare scam man who "believed he was above the law".

Armstrong - who had a string of convictions, including a two-and-half year sentence for dishonesty - pleaded guilty to 14 counts of obtaining property by deception and 27 counts of obtaining credit while bankrupt.

Embarrassed

The court heard there were 72 victims, although police believe there may be many more who were simply too embarrassed to come forward. Many victims were elderly and disabled people. Police found no extravagant signs of wealth at his Offerton three-bed semi and it is believed he gambled away much of the money.

Judge Lever told Armstrong: "This is a serious case involving timeshare scam fraud which obviously causes great concern to victims and to the timeshare industry and, of course, the public at large who look to the court to protect commerce against the sort of practices I have heard of in this case."

Between 1999 and 2003, Armstrong ran several timeshare businesses from his home on Dialstone Lane.

He traded under a variety of business names including European Timeshare Association, Timeshare Overseas European Services and Trading Places International.

When customers started to complain, an investigation was launched by trading standards officers and police.

Armstrong was arrested in Chertsey, Surrey, in December 2003.

Det Sgt Taylor, said: "I'm pleased he has been jailed today. I hope it gives his victims some peace of mind to know GMP and trading standards will not let conmen, like Armstrong, get away with it."

2006-01-09T08:52:00.000-08:00

Tennessee Man Sentenced For $20 Million Timeshare Fraud Scam

A Tennessee man was sentenced in federal court for defrauding hundreds of victims of more than $20 million through an investment timeshare scam involving two Branson, Mo., timeshare hotels.

Dennis Ray Weaver, 56, of Jackson, Tenn., was sentenced by U.S. District Judge Richard E. Dorr to eight years and nine months in federal prison without parole. The court also ordered Weaver pay more than $53 million in restitution to the timeshare scam victims of his fraud – $32,204,525 to his victims in the Western District of Missouri and $20,976,660 to his victims in a separate timeshare scam in the Northern District of Indiana.

2006-01-05T06:00:00.000-08:00

Narrow Boat Timeshare Fraud

A Department of Trade & Industry investigation has caused a high-pressure sales scam operation marketing timeshare on narrow boats to be wound up. Charter International and its successor business, Charterline, sold over 250 timeshares, ranging from £3,000 to £9,000, for a week each year on a narrow boat. In total they took over £1,000,000 in sales receipts. The company owned six boats moored at Penton Hook Marina, at Chertsey, on the Thames.

Customers were recruited via cold-calling and street marketing surveys to sales presentations at hotels in Maidenhead and Chester, having been tempted by offers of free overnight stays, food and drink. UK consumers are usually protected against timeshare pressure sales scams. The law entitles people to a 14-day cooling off period during which they can withdraw from the contract. The seller cannot accept any money from the buyer until the end of this period.

Boats are not covered by timeshare legislation because they are not a building or a caravan, but all timeshare sales methods and agreements are subject to broader consumer protection legislation, covering misleading advertising, distance selling, and unfair terms in consumer contracts.

Once at the presentations, sales staff made a series of misleading promises in a bid to win customers. They claimed that the timeshares were also an investment opportunity, as owners could opt to rent out their allocated weeks over the 35-year lifetime of the timeshare holding. The company had no means of supporting this claim.

The sales staff inferred that timeshare holders would own a share of a specified boat, when in fact the timeshare was only available for a pool of boats. It was also claimed that the boats would be replaced every five years, with contributions from yearly management fees allocated to a replacement fund. No such provisions had been made.

The High Court in London heard that Charter International continued to trade while insolvent. The company fell into financial difficulty in July 2004, severely exceeding its overdraft limit. However, sales staff continued to sign up new members, even though they no longer had any boats to offer. The company owed debts to the Inland Revenue dating back over two years, as well as unpaid VAT bills. There were also numerous unexplained cash withdrawals made from the Charter International bank accounts throughout its trading history. Scam, Scam, scam

2006-01-04T13:34:00.000-08:00

Shady Deal Or Made In The Shade? Timeshares Can Pay, But Beware!!

NEARLY 20 years ago, Sandy Grey literally stumbled into a holiday timeshare development in Cornwall, England. It was a twist of fate that now has the British executive moonlighting as a co-founder of one of the first time-share owner-advocacy groups in Europe.

Timesharing is aptly named. Investors buy time, usually in increments of a week, in a vacation property. Every year, they have the right to use the property for their assigned weeks; or they can swap for different periods at the same resort or other sites, or rent out their holdings. Some time shares last for a set number of years, others are perpetual. Costs typically run from $5,000 to $50,000 a week

A concept begun in Europe in the late 1960s and subsequently made mainstream in the United States, vacation timeshares have become a big business, generating $7 billion annually in sales. Today there are more than 4,000 resorts in 80-plus countries. The American Resort Development Association estimates there are 6 million timeshare owners around the world, the bulk of whom reside in the United States and Europe.

Popular they may be, but time shares also are controversial. Historically sold by tactics that included promotional offers of questionable value, many buyers found they could not sell their units for anything near what they paid for them, let alone at a profit. Even today, proponents suggest that time shares are not meant as investment tools but rather as a cost-efficient way of vacationing.

Someone who has seen both the best and worst of what vacation time shares have to offer, Mr. Grey helped found the Timeshare Consumers Association of the United Kingdom in part to counter the unsavory sales practices. The three-year-old group is pushing for British legislation that will help do away with the scam artists and arm-twisting practices that have given timeshare ownership a bad reputation. It also works closely with a recently established German group, the Schutzvereingung fuer TimeSharing, based in Wiesbaden.

Bill Rogers, a time-share owner in the United States, tells a similar tale. Thanks to a time-share exchange vacation that went grossly awry, Mr. Rogers founded the Timeshare Users Group. The Internet-driven nonprofit organization is run by 40 volunteers supporting an active membership of 5,000 time-share owners worldwide.

On the group's comprehensive Web site, which grew out of a Prodigy chat room, members post their time shares, looking for possible exchanges. They can share experiences about resort properties good and bad, with ratings of each site. There is an archive of articles and perspectives pertaining to nearly every facet of time-share ownership, including legal and tax issues. Every Sunday, the site is host to a timeshare users chat.

Both Mr. Grey and Mr. Rogers said that while they had been frustrated by the poor reputation of the industry, they have also had positive experiences that convinced them that time-sharing is a good thing. They are seeking to get consumers to band together and help push scammers out of the market.

According Joyce Kessler, a longtime timeshare owner, the investment was a life-changing experience for her and her husband, Don.

"It has forced us to do what we absolutely love to do," she said. "We have traveled all over the world and have felt very lucky that we can afford to travel in luxury, and, in reality, the cost is minimal."

The Kesslers own a handful of time shares that carry top ratings from the two organizations that dominate the swapping and renting of units, Resorts & Condominiums International LLC and Interval International Inc. As a result, they have been able to trade for time shares that Mrs. Kessler said would have been out of their reach had they had to pay on a per night basis. They have visited resorts in Spain, the Netherlands, Scotland, Mexico and Canada as well as many in the United States.

Before reaching for your checkbook, take note: Timeshares, generally speaking, are not a terrific investment in terms of capital gains. Like automobiles, they almost always depreciate from the original sale price. This is particularly the case with primary sales, meaning new properties bought directly from developers, who build marketing costs into the prices the first buyers pay. The new owners rarely are able to recoup that premium in a secondary sale.

Timeshare properties sold for limited periods, under what are called right-to-use terms, will go down in value every year; it is the nature of the beast. With a right-to-use timeshare, occupancy rights are specified across a number of years, usually 20 to 25. This option is particularly popular in places like Spain and Mexico that have legal restrictions regarding vacation-property ownership.

"A timeshare is not an investment," said Jim Perkins, resort services director for Stroman Realty Inc. in Conroe, Texas, a leading resale agency. "A time share's value is in its use. If you were to rent hotels weeks for 10 years or 20 years, what do you have left? Memories."

There are exceptions to the rule. There have been people who have sold deeded ownerships in low-inventory, high-profile time-share properties in such key destinations as the Vail ski resort in Colorado or Sanibel Island off Southwest Florida. Owners holding on to the latter are presently able to sell their intervals —as weeks at time shares are known — for twice their initial investments because no new time-share properties are being built on the island.

But in nearby Orlando, a hotbed of time-share resorts, you do not stand a snowball's chance in Florida of getting a return on your investment, said Chip Ballew, owner and founder of Timeshares.com, an Internet information service that has a free classified section, among other things.

"There is such as a glut of timeshare properties on the market today," he said. "It is really a buyer's market."

But Mr. Ballew, a former member-services manager for RCI, warned prospective buyers to be careful about how and what they buy. For as much as the market has evolved in its legitimacy, he said that incidents of scam and pressure selling remained too prevalent.

One of the biggest developments to hit the industry in recent years — and one that has added immensely to its legitimacy — is the entry of such major American resort developers as Marriott International Inc., Walt Disney Co., and Hilton Hotels Corp.

Other major hoteliers and developers, especially outside the United States, have shown little interest in the concept. A spokesman at Granada Group PLC's Forte Hotel Group said: "Timeshare is not something that we are considering. We do not see it as part of our business plan or core to what we do. We see time share as a specialist sector and not one we wish to enter."

Marriott, on the other hand, has three timeshare offerings, all of which are tied into its Marriott Reward Point, a frequent-stay program that also covers business travel and other resort use. Marriott visitors can earn points while staying at a resort — typically a point for every $10 spent

Most of Marriott's timeshares are in the United States, though the company has properties in Spain. A spokeswoman said it would soon have one in Asia, although she refused to specify where.

When it comes to purchasing a week of timeshare from Marriott — or anyone else, for that matter — you can expect quite a range in price. Low-end offerings start around $5,000, but Marriott's top-end time-share properties, which are sold under the Ritz-Carlton Club brand, sell for $49,000

Timesharing continues to evolve. What began as mostly fixed weeks now offers prospective buyers the option of floating weeks, split or fractional shares in properties, or more recently buying points in resort clubs. At Disney, the point system allows time-share buyers to purchase the right to use any of its vacation properties until 2042 for $10,500 and up, according to its Web site.

When you buy a timeshare, either as right to use or as deeded property, you will have to pay at least a couple of hundred dollars a year in maintenance and homeowners' fees. At first, these fees may seem nominal, but that might be because the developer is subsidizing them to make the time share attractive to potential buyers, the Timeshare Users Group Web site says. Eventually, a homeowners' association takes over, and the fees may then quickly rise to unsubsidized levels.

Likewise, the site notes, special assessments are sometimes added to maintenance fees to cover unexpected expenses, such as storm damage.

2006-01-03T12:37:00.000-08:00

Omni Cancun Hotel and Villas Is One Big Timeshare Scam

The Omni Cancun Hotel and Villas is a terrible place to stay. First of all, it is an independently owned franchise and is barely affiliated with the Omni Hotels, which is a privately owned company.

We stayed at a Villa for 5 days, which was poorly maintained - the air conditioner froze up, the dishwasher did not work, and we found a condom in the corner of the living room. We called for the facilities man, and he did nothing to alleviate any of the problems.

The hotel was gross -- the food from all five restaurants comes from one main kitchen under the hotel. For instance -- nachos? You would think that's something you can't mess up. Well, the entire plate was stale chips with watered-down Cheez Wiz. The 'fish tacos' were some kind of gross concotion of old fish stew and tomato paste wrapped in a corn tortilla, nuked to death in a microwave. Bad.

When you check into the registration desk, you are approached by a very, very friendly person who turns out to be a Timeshare saleswoman. Yes, this entire hotel is one big Timeshare scam. You can't even sit down in the bar without being approched to buy a share in this awful property.

While in the registration 'room' (they trap and corral you there to make it less easy to escape the sales people), i witnessed at least three separate people complaining about their rooms. Promised a king sized bed? Forget it. Have a beach front timeshare lined up? No such luck -- you're facing the road, it is a scam.

The Ku-Ku's Jaccuzi bar is pretty disgusting. The water is about body temperature, and the surrounding greenery smells like vomit from someone who couldn't handle the almost-virgin 2-for-1 happy hour margaritas. Get out quick, it is a scam.

Additionally, not one, but TWO of the people in my party contracted a skin bacteria infection from the pool. I actually obtained a copy of the sampling data from the pool, and facilities insisted that they sample every MONTH. Hello? Reputable hotels sample their pools every HOUR or so in order to regulate contamination. Gross. Get out of the pool quickly too, people, it is a scam!

Our room was terrible. On one of the small 'double' beds my friend pulled back the comforter to reveal a pubic hair in the sheets. One of the lightshades was damaged/broken, and there was mold on the ceiling. The air conditioner BARELY put out a stream of semi-cold air (this too, was what a LOT of people were complaining about in the Time-Share sales room). We were only staying one night, luckily, but we ran into some people who were there for honeymoons, anniversaries, etc. We felt extremely sorry for them.

I'm not sure who is giving the Omni Cancun Hotel and Villas five star ratings on this website. No one in their right mind would be able to after setting foot on this property, it is a scam.

Oh, and I did call Customer Relations, and actually spoke with someone in their corporate office (her name was Mary Galles). She swore she would get back to me after a few days. Well, she did call me back once, but could not give me an update on my request to get my money back for the night we stayed. I called her back twice, left my number and name, and I've never heard back from her. So much for good Customer Relations.

I'll never stay at an Omni Timeshare scam again. The five other people with me won't either. And I'm spreading the word to my family and friends, many of them business and pleasure travellers. I advise anyone reading this review to avoid this property -- stay at the Casa Magna Marriot!

2005-12-29T10:16:00.000-08:00

Timeshare Scams Abound This Holiday Season

I want to warn people this holiday season that there are scams galore. I received a call from woman named "Lucky." She told me that I won a gift and that I must go to a hotel and listen to a timeshare presentation. Oh! Do not forget to bring your Visa or MasterCard. In order to receive the gift, I must show it to them. They said that if you do not have one, you're not the traveling type. I called her on it and she hung up. I called her back and told her to stick her timeshare scam up her ass!!!!!!

2005-12-28T12:18:00.000-08:00

Law Is Last Resort In Timeshare Scam Tussle

A DISPUTE involving thousands of timeshare owners and one of Scotland’s biggest hotel groups is poised to spill over into an acrimonious court battle over unpaid fees.

Loch Rannoch Highland Club in Perthshire has been at loggerheads with Macdonald Resorts since last summer after club members removed a lucrative management contract from the subsidiary of the Macdonald hotel and leisure chain.

Macdonald retaliated by barring more than 4,000 timeshare owners, and their families and friends, from entering its flagship Loch Rannoch Hotel next door and from using leisure and marina facilities there.

Now they face a season of uncertainty as a court threat hangs over their heads. Macdonald is understood to be preparing to claw back almost £1m in fees and costs it claims remain outstanding.

However, an overwhelming number of club members voted earlier this month to stay with new managers, Timeshare Management Services Limited.

TMSL is run, in effect, by former committee members of the club and according to one long-standing timeshare owner, represents a last attempt to wrest control of the contract from Macdonald.

Retired solicitor Roger Willis said: "The mean act of continuing to bar everyone from their premises is testament to the treatment the chain has consistently meted out to us. But we are galvanised in our attempt to put Macdonald behind us."

The septuagenarian has travelled back-and-forth for many years to his lochside timeshare, despite living in the attractive location of Ambleside in the Lake District.

Willis claimed under the new regime management fees were 16% lower compared with the last year under Macdonald’s control. Furthermore, had the contract stayed with the hotel group, access to leisure facilities and the hotel itself would now cost the average member about £157 for each lodge week during the season. The only advantage gained would be access to an on-site pool.

TMSL expects to replace most of the facilities, except access to the hotel, within the next couple of years.

Resort manager Margaret Hodge said families now compensated by visiting nearby Dunalastair Hotel and going to pools at Tummel Valley and Aberfeldy.

Also, TMSL reports that demand for the timeshare rentals at Rannoch is outstripping supply. It takes a 20% commission to handle the rentals, compared with the situation under Macdonald when, it claims, commission stood at 40% and at times as much as 70%.

TMSL adds that owners now pay £60 to register a transfer and claims that under the old regime the fee had been hiked up to £690.

Referring to a possible court of session interdict by the hotel chain, Willis said: "We understand the hotel chain now claims that the so-called unpaid fees total close to £900,000, which is ludicrous, with expensive legal bills on top of that. But we will fight it all the way."

For its part, Macdonald will try to prove in the Court of Session a "loss in value" of business caused by the failure by club members to pay back fees. The hotel chain assumed control of the contract in the early 1990s, when it took over former owners Barrett Resorts.

Company secretary Gordon Fraser recently wrote to club members warning that the total cost to them of a successful recovery of unpaid fees "could be over £1m". Macdonald has tried, unsuccessfully, in the recent past to win interdicts to prove its case.

Fraser claimed it was in members’ best interests that the club was managed by a substantial company, such as Macdonald Resorts, one able to provide on-site leisure facilities.

However, a vast majority of members decided otherwise. Club official David Monteith-Hodge said: "Since the decision we have heard nothing from the hotel group.

"We are sitting in a state of trepidation wondering what they are going to do next."

Another timeshare owner, who asked not to be named, added: "There has never been an effective on-site management or maintenance programme since Macdonald took over. In contrast, TMSL had already displayed a keen eye for detail and that’s what we have needed for years."

The row is happening against the backdrop of rumours that the leisure chain is to offload the Loch Rannoch Hotel, one of 15 from the 70 it owns in the UK

that may be sold.

Willis said club members had heard hints that the hotel was to be sold: "This rumour appears to be hardening now that they need cash to fund their latest business venture. It may also be about offloading a hot potato."

Certainly the Macdonald group appears to have bigger fish to fry at the moment. The company is busy preparing a £350m bid with HBOS and private investors the billionaire brothers David and Simon Reuben, for the UK assets of debt-crippled Queens Moat Houses.

The outcome of the bid should be known in about a month. But it is likely to be matched by other contenders, leading to an auction with speculation that the eventual price will be nearer £400m.

The Macdonald group was taken private by founder Donald Macdonald last year in a £620m buy-out. HBOS is a 50% stakeholder, after leading its exit from the stock market. The chain’s portfolio includes more than 100 hotels and resorts in Britain and Spain.

Sandy Gray, chief executive of English-based Timeshare Consumers Association, said the last thing the hotel and leisure chain needed now was a public bloodletting in its own backyard.

"I am glad that at last the owners of the timeshare club at Rannoch have had it confirmed that they are in control," he remarked. "I am already hearing reports that costs are starting to show at a much lower level than when Macdonald managed the scheme.

"There is little doubt that Macdonald has made life hard for the owners who I believe are right in what they are doing and the association is wholly supportive of their actions."

Macdonald Hotels did not reply to calls.

2005-12-27T12:34:00.000-08:00

Former Travel Agent Gets Probation In Timeshare Scam

When Honolulu resident Gladys Chun left on a trip for China in September 1998, she recalls vividly her travel agent, Gautier Tienni Fang, telling her, "Have a good trip, enjoy your timeshare."

Little did she know at the time that Fang never sent the money she paid him, and she was left stranded in Beijing with no choice but to pay an additional $3,221 to continue the tour. Seven years later she is still waiting for her money back.

Fang, 73, was sentenced yesterday in Circuit Court to five years' probation with credit for 244 days he served in prison following his arrest in 2004. He pleaded guilty in June to nine counts of second-degree theft involving approximately $50,000 and no contest to money laundering.

But yesterday, after earlier attempts to withdraw his pleas and dismiss the charges against him were shot down, Fang continued to profess his innocence. He expressed confidence that he will prevail on appeal and that the charges will eventually be dismissed.

Circuit Judge Michael Town rejected Fang's request for a deferral of his plea, agreeing with prosecutors that Fang is in denial and will not admit to wrongdoing.

"I hope in good conscience he's not going to do it again, but I can't say he won't, given the record," Town said.

Chun, one of nine victims, said she was annoyed to learn upon arrival in Beijing that the timeshare unit had not been paid for, "but what the heck, I was already there so I just paid it and moved on."

When she returned to Honolulu later that month, she confronted Fang, who admitted he did not send the money to the travel service in China. Instead, he said he invested the money, believing they would pay off and enable him to pay the tour operators in China.

She confronted Fang again at a hearing last week, but he maintained he was not to blame.

"I would like to see this process come to a close," Chun told the court. "He remains arrogant and has not admitted anything."

Deputy prosecutor Marvin Rampey said prison is appropriate in this case, given Fang's refusal to accept responsibility, but asked for five years' probation and restitution if the court would not order incarceration.

Attorney Jerry Wilson, a standby counsel to Fang, who chose to represent himself, said because of Fang's age, health and absence of prior record, he is eligible for a deferral.

Fang calls himself a terrible businessman who had no intention of cheating his customers and is remorseful, Wilson said. Fang has been in the travel business for years and planned many successful tours until this happened in 1998, Wilson said.

Town ordered Fang to repay the $3,221 owed to Chun and will consider other restitution amounts at a March 20 hearing.

Customers who paid for their tours with credit cards received some reimbursement from their credit card companies. At least three customers, including Chun, have yet to be reimbursed, Rampey said.

2005-12-24T07:49:00.000-08:00

Feds Spring Trip Trap

The Federal Trade Commission and 21 other agencies opened a major offensive against travel-related fraud today, charging 25 companies with misleading consumers about vacation packages.

The Commission said the 25 companies misled consumers about the vacation packages they were selling, overstated the amenities included, told travelers they had won trips when in fact they had not, hid extra charges in "all-inclusive" packages, or charged consumers for products and services they never received.

As a result, the agency said, many people saw their "dream vacation" turn into a nightmare that wound up costing them hundreds of dollars more than they expected, or included a timeshare tour that most people had not been told about when they booked their trip.

The announcement was the kick-off of "Operation Trip Trap," a joint law enforcement and consumer education effort.

The FTC filed five complaints in federal District Courts asking the courts to permanently enjoin the alleged law violations and to award consumer redress. In three of the cases, against American International Travel Services; Air-Land-Sea Reservations, Inc.; and Resort World, Inc., the Commission is seeking an ex-parte temporary restraining order with asset freeze, appointment of a receiver, and immediate access to the business premises, pending a hearing for a preliminary injunction.

In the other two cases, against Cervenick-Anderson Travel and All Around Travel Club, the Commission is seeking a preliminary injunction, pending resolution of the complaints.

"Hundreds of unwary consumers got caught in this odious trip trap," said Jodie Bernstein, Director of the FTC's Bureau of Consumer Protection. "These cases demonstrate the Commission's continuing commitment to helping consumers get what they pay for." Travel-related complaints received by the FTC have climbed into the top ten list in the past year, she said.

According to the FTC complaints, the companies involved in "Operation Trip Trap" have bilked consumers out of thousands of dollars per month by promising "free" trips or discounted travel deals. In many instances, the defendants received the customers' names either through "drawings" at public places such as state fairs or restaurants, over the Internet or through other means (including direct mail solicitations), then telemarketers would give them a high-pressure sales pitch over the phone.

While promising "dream vacations," however, they often failed to disclose material facts about the vacation packages or tours they were selling, including total costs, refund policies, dates the consumers could travel, specific destinations, or type of accommodations offered. In addition, they overstated the special benefits provided and, in some cases, did not make it clear that the consumer was required to spend part of his or her vacation hearing a lengthy sales pitch for timeshare accommodations.

Finally, some telemarketers told the consumer that he or she had won--or had been specially selected--for a trip, while failing to disclose the real costs involved; or "baited and switched" the consumer into spending additional money for "upgraded" hotel or other accommodations.

Some of the companies also failed to inform the consumer regarding their "no refund" policy, or misrepresented this policy over the phone.

2005-12-20T05:09:00.000-08:00

Two Arrested In Hawaii Timeshare Vacation Scam

Two people are in custody charged with mail fraud in Sacramento, California for a Hawaii vacation timeshare scam that bilked thousands of dollars from Colorado residents and residents in other states.

In October 2004, the Better Business Bureau of Hawaii began an investigation to alert the BBB of Southern Colorado about numerous calls from Colorado residents checking on a Vacation Properties International timeshare offer. Colorado residents reported that they saw a “Hawaiian vacation deal” in an advertisement in Colorado newspapers. Some residents paid out money to this company for deposits on their vacations; no one received tickets for any air trip for a Hawaii vacation.

According to the Assistant U.S. Attorney in Sacramento, the defendants are charged with 14 counts of mail fraud, which includes a sentencing enhancement because the crime involved telemarketing fraud.

The defendants offered vacations in locations such as Hawaii and Las Vegas and advertised hotel stays at chains including Hilton Hotels, Outrigger Hotels and Holiday Inns. These ads contained mostly false statements, and instructed customers to send checks and money orders to private postal mail boxes. The defendants were “paid,” but failed to deliver, or respond.

“This arrest was the result of our extensive, collaborative investigation with the U.S. Postal Inspector, the Honolulu Police Department “CrimeStoppers” unit and the BBB of Southern Colorado,” said Anne Deschene, president, Better Business Bureau of Hawaii.

In its initiation of this investigation, the BBB of Hawaii validated through property management that the operating address advertised was false. The company directed all correspondence and money to an address in Oakland, California.

“In addition, the company also claimed that they were members of a ‘Hawaii Timeshare Bureau’ and had been recognized by a ‘Hawaii Trade Association’; there is no verification that these groups even exist,” reported Deschene.

Checks cashed by Vacation Properties International were traced to an account at World Savings Bank in California, which involved the U.S. Postal Inspector in Sacramento who froze the account listed under the name Vacation Properties International. Some checks written by Colorado residents were not cashed; but most “customers” lost money to the scam.

The BBB offers the following tips when considering a timeshare opportunity:
• Be wary of "great deals" and low-priced offers. Few legitimate businesses can afford to give away products and services of real value or substantially undercut other companies' prices.
• Don't be pressured into buying. A good offer today will be a good offer tomorrow. Legitimate businesses don't expect you to make snap decisions.
• Ask detailed questions. Find out exactly what the price covers and what it doesn't. Be sure to ask about additional charges, as well.
• If you do decide to buy, get all information about the trip in writing. Once you receive the written information, make sure it reflects what you were told over the phone and the terms you agreed to and call the businesses or places listed to confirm their participation.
• Don't give your credit card number or bank information over the phone unless you know the company with whom you are working.
• Don't send money by messenger or overnight mail. Some "scam artists" may ask you to send them money immediately. If you pay with cash or check, as opposed to using a credit card, you lose your right to dispute any potential fraudulent charges under the Fair Credit Billing Act.
• When in doubt, say "no." If you have any doubts about the trustworthiness of a company, trust your instincts. It's less risky to turn down the offer and say “no.”
• Before doing business with an unfamiliar or new company, check with the Better Business Bureau at 536-6956 or toll-free 1-877-222-6551 or online at www.hawaii.bbb.org.

The Better Business Bureau of Hawaii is a private, non-profit business organization funded entirely by its members committed to promoting ethical business conduct through voluntary self-regulation. The Bureau works within an international system of 128 Bureaus and with government agencies to protect Hawaii’s economy. Services provided include consumer and business education and business dispute resolution.

2005-12-16T05:39:00.000-08:00

Mayan Palace Lies - TimeShare

In June 2002 my wife and I Visited Puerto Vallarta Mexico. As soon as we got off the plane we were approached by a local offering us a free ride to town and promising various "Freebies" if we would agree to attend a one hour presentation for Mayan Palace.

Unfortunately we went along and it basically ruined our vacation. The next morning we were picked up at our hotel and driven to Nuevo Vallarta, (in the next time zone). Over the course of the next several hours we were held captive and tagged teamed by skilled con artists who used every trick in the book to convince us that buying their time share would be the best "investment" we would ever make. And that we would be able to rent our time share every year for a profit. They even told us that we were getting such a great deal that we had to waive our five day right of rescission (another outright lie). You can buy the same package online from lots of disgruntled "owners for about half what we paid. We were also "given" two extra week for that year that they PROMISED (although they weren't allowed to put it in writing) we would be able to rent out within the next 90 days for (get this) $2,200.00 each, ($4,400.00 total) therefore recovering most of or down payment before Christmas. When I asked the sales guy point blank "What are the chances they won't rent?" He looked me straight in the eye and replied "Zero chance". He claimed their was a golf tournament in early December and "its as if the moneys in the bank". Needless to say after listing the weeks with various listing agencies on the list they provided (and spending hundreds of more dollars) we never got so much as a single inquiry. I even contacted the agencies and reduced the price by half but still not a single offer. The following year we couldn't afford a vacation (Thanks to the thousands Mayan Palace cheated us out of) So I listed the weeks again and wasted even more money.

Of course Mayan Palace insist on the large monthly payments and excessive maintenance fees weather you use it or not. Finally in 2004 we decided to use our time share and called to book our reservations. I first called about 8 months early and was told I couldn't make reservations earlier than 6 months before we intended to use them. I marked my calendar and called the first day I was allowed to. I booked the reservation for Puerto Penasco (Rocky Point) as we could drive there rather than fly, and money was short (Thanks to Mayan Palace). I confirmed our reservations twice before we left and was told both times everything was fine. They even emailed printed conformations. The day we arrived the desk manager seemed confused and told us we didn't have reservations. When I produced the printed conformations he seemed to imply that they weren't real. Finally after hours of us refusing to just leave with the other couple we had along as our guests ( the suite sleeps up to eight) he tried to put us in separate small lock off rooms. As a last resort we very reluctantly agreed only to find other guests in these rooms as well. It looked like we might have to sleep in the lobby when we were told they were preparing a suite for us. After 2 more hours we were taken to the suite in an unfinished building. It was obvious it was an unfinished suite they had rushed furniture into. Their was no hot water, no pictures, only beds a couch and some end tables. We had to hike to the spa to take showers while we were there. By this time I was out well over $15,000.00 and this was our first attempt to use our timeshares. I did complain to a guy who Claimed to be a Vice President and before we checked out we met in his office. He promised to make it up to us by giving us a free week with the maintenance fee waived. Since then he has ignored all attempts to get him to keep his promise although I have managed to get him on the phone and he always repeats the promise. Recently I tried to book reservations again (by now we're out almost $20,000.00) I guess they have a pretty small window as it's four months early and they say theirs nothing available. I think once your an "owner" they try to keep you away to make room for more victims. I'm convinced its Mayan Palaces policy to lie at every opportunity and to cheat Americans out of our hard earned money. I intend to make every effort to warn folks about them. The next time we stay at Mayan palace I'm taking a thousand flyers to pass out in the surrounding area warning tourist about their scam.
There's even more I could say about the Mayan Palace tourist trap but I'm afraid if I write it all it here it will be so long no one will read it.
Sincerely, Bill Howland.

2005-12-15T07:50:00.000-08:00

Members Of Timeshare Companies Take Legal Action To Recover Money.

Members of timeshare companies take legal action to recover money By Pearl Forss, Channel NewsAsia http://www.channelnewsasia.com/stories/singaporelocalnews/view/146426/1/.html

Tired of holiday dreams that have gone awry, consumers are hitting back at timeshare companies with lawsuits, citing misrepresentation.

But some timeshare companies are now threatening to sue some of these consumers for voiding their contracts.

Started in the 1960s, timeshare is a holiday concept which has a group of people sharing the purchase cost of a vacation accommodation.

And members get to use it in increments of one week (or more) per year of use.

This accommodation can range from hotel rooms to condos, or even yachts and cruise ships.

Under the various schemes, members make a one-time downpayment of between $10,000 and $40,000 and get to stay at a premier holiday resort for a week once a year for a number of years.

That was the promise timeshare companies made to more than 15,000 members in Singapore.

But, as many of the members found out, the payments do not stop there.

Timeshare owners found they still have to pay an annual maintenance fee of a few hundred dollars for the resort shared.

Jean Yew, who paid $32,480 for a membership, said: "After paying 21k for timeshare, we still have to pay $300 in membership fees and this is ever increasing, up to $400. And in order to get out of this cycle, they asked us to purchase concept vacation club."

And some do spend another $8,000 to $20,000 buying into a concept vacation club or CVC - which also goes by other names - like vacation ownership schemes or holiday rewards club.

The scheme is supposed to help them access other timeshare resorts

But in 2003, this same group of consumers were asked to buy into the cashback scheme instead.

Adding up the dollars, a timeshare owner could have spent anything from $22,300 to $75,600.

Kenny Tan said: "They enticed me by giving me cashback, saying I can get back all my investments."

He paid $30,000 to join a timeshare scheme.

George K Krishnan, Former Timeshare Consultant, said: "Cashback scheme is just to tell people after a certain number of years, you can get money back and they guarantee you, they tell you how they put money into the FTSC index. Has anybody ever gotten any money back? No, not that I know of."

Frustrated by the endless rounds of payment, some have stopped their monthly payments on all schemes and started legal proceedings.

But a class action suit filed by 13 timeshare owners was turned down by the courts last September as each case involved different circumstances.

Undeterred, the plaintiffs are now proceeding with individual lawsuits.

Ng Soo Kok, who paid $25,000 to a timeshare company, said: "They are trapped in a rut. By paying the money they will be paying for a scam that they know it is, if they don't pay, they receive a letter from a lawyer suing them and it's really a hassle."

Lawyer Ismail Atan, Director, Gabriel Law Corporation, is representing five of them.

So far he has won one case against Leisure Marketing Group in January.

The court ordered the company to return his client $15,000 under the Consumer Act.

He said: "What this could mean is that consumers who had purchase such a product could go to courts and perhaps succeed on their own claims."

But the Consumer Association of Singapore says consumers should try to resolve their disputes with timeshare companies through CASE before seeing their lawyers.

Seah Seng Choon, Executive Director, Consumers Association of Singapore, said: "Certainly the successful court action by this member is going to encourage others to go to court but I would suggest that the consumer come to us first so we can help them to resolve the case without having to incur legal costs."

And this could be be more than $3,000.

2005-12-05T10:15:00.000-08:00

Marina Fiesta Resort And Hotel In Mexico. Timeshare In Cabo San Lucas Is Evil.

This is a case where the Marina Fiesta Resort sales staff promised the world only to find out later that it was all a bunch of lies. A Mexico Cabo San Lucus hotel.

Marina Fiesta Resort timeshare sales employee stated:

"You can use your marina fiesta timeshare weeks whenever you want."
"You can accumulate the weeks as you go or use them all at once."
"You can use multiple weeks to upgrade your room if you have them to use."
"No buyers remorse."
marina fiesta hotel
Of course this was not the case when we called to book a room. Originally purchasing this in 1999 as a half timeshare, available every odd year, we were told in 2005 that we could not have a room until 2006. They even said that we had LOST the rooms we were told we could accumulate over the course of 1999-2005 and that we'd have to deposit the weeks in an RCI account inorder to get anything from them. In addition, they have refused to show me on my contract where it says I would lose my weeks if I didn't use them.

Marina fiesta resort lies continued:
But never mind that. The sales rep told us we could 'use all 12 weeks at once, if you've paid for them all'. We paid for everything within the first year so that we'd be able to use the weeks when we wanted and rent upgraded rooms. They then told us, and made us sign the paperwork that stated that there would be no buyers remorse. We still have the paperwork for this document.

We sold the Mexico timeshare to another individual in 2004 and all of this came up when they tried to book a room for the first time.

Don't you think we should be able to use the rooms that we PAID for from 1999-2005? They're changing the rules on us after the fact. The mice-type in the contract is unclear. They have ignored my requests to show me in my contract where we'd lose the weeks if we didn't use them. The whole thing is a bad investment. Yes we did sell it to a business, but we may have to refund the lost week or two.

I make web pages rank for a living. My goal is to educate people about Mexico timeshares and Marina Fiesta Resort's lack of customer skills. It is a nice resort to visit, but I'll never go back. I'm hoping you will consider carefully even attending a timeshare presentation in any mexico hotel. It would be nearly impossible to get your money back if something like this happens to you. It is also nearly impossible to sell a timeshare once you buy it. Don't buy into their hype like we did. The internet is full of horror stories about timeshares in Mexico.

2005-12-02T05:22:00.000-08:00

Nixon Sues Branson Timeshare Broker For High-Pressure And Misleading Sales Tactics.

Alleging high-pressure and misleading sales tactics, Attorney General Jay Nixon is suing Festiva Resorts L.L.C., which sells timeshares at the Cabins at Green Mountain, located in Branson.

In a suit filed in Taney County Circuit Court, Nixon says Festiva violated Missouri consumer protection laws by misleading and scamming customers into buying timeshares. The lawsuit alleges Festiva lured consumers by falsely promising to:

Help them sell other timeshares they owned.

Help them rent out timeshares they bought from Festiva.

Help them get good deals on condo rentals in attractive locations.

Help them get good deals on vacation packages.

Give refunds to those dissatisfied with their purchase.

Nixon also says Festiva didn’t give consumers enough time to make decisions, creating a sense of urgency and a high-pressure sales environment.

"Consumers buy vacation property because they want a place to relax. For these consumers, Festiva delivered anything but that," Nixon said. "Branson is one of the nation’s most popular tourist destinations, and I want to keep it that way. This kind of lawsuit is intended to punish those who give Branson a bad name and put other abusers and timeshare companies that scam, on notice that we’re watching them."

In the lawsuit, Nixon is asking the court to order Festiva to refund more than $200,000 to consumers who were misled into buying timeshares from the company. The lawsuit also seeks preliminary and permanent injunctions, fines of up to $1,000 per violation of the law and reimbursement to the state for its investigative and legal costs.

2005-12-01T04:26:00.000-08:00

Cancelling A Timeshare Agreement

Once you have signed a timeshare agreement, the law gives you a cooling off period, during which you can cancel the agreement and have your money back without having to pay a cancellation fee. You are entitled to a cooling off period only if the timeshare lasts at least three years and is for a property or caravan in the European Economic Area (EEA).

The length of the cooling off period depends upon the country you were in when you signed the timeshare agreement. If you signed the agreement in:-

the UK, the cooling off period is 14 days.
a member country of the European Union the cooling off period is 10 days, and this starts from the day you signed the agreement. In some countries, a lawyer has to witness you signing the agreement. The timeshare seller does not have to refund the cost of this if you cancel the agreement.

Timeshare sellers in the UK and European Union must tell you about the cooling off period when you sign the agreement. If they don't, the cooling off period will be extended, usually by three months.

If you were not given a cooling off period and you used your credit card to buy the timeshare, you may be able to cancel the agreement and get a refund from the credit card company under the equal liability provisions of the Consumer Credit Act. In such circumstances, it is essential that you write to both the timeshare seller and the credit card company, notifying them that you wish to cancel the agreement, within 10 days of signing the timeshare agreement.

After the cooling off period, you can cancel the agreement if the terms of the agreement allow for this. If you want to sell your timeshare, a timeshare resale company or the timeshare company may be able to arrange this for you, although they will charge you commission.

If you want to cancel your timeshare agreement, and you paid for the timeshare with your credit card, your credit card company might agree to refund the money, if they have signed up to a voluntary code of practice. In these circumstances, it is essential that you write to both the timeshare seller and the credit card company, notifying them that you wish to cancel the agreement, within 10 days of signing the timeshare agreement.

2005-11-26T06:28:00.000-08:00

Top 5 Travel Scams

Scams are all around us and unfortunately, travel scams tend to be near the top of the heap. It seems that for every legitimate travel offer there is one that isn’t.

According to the National Fraud Information Center, the average loss to fraud in 2004 was $803 per incident — up from $468 two years before. While travel is not at the top of the fraud list (that is reserved for online auctions), it is number two in frequency of complaints. Be sure to steer clear of the folks who are only out to separate you from your travel money.

Don’t be a victim of these 5 top travel scams.

1. Discount travel clubs. Usually a bad idea. If your travel club is asking for more than a few dollars for membership, they are probably scamming you. They will offer a discounted menu of trips (of course it is discounted — they said so didn’t they?), only available to members. For this membership, you get the privilege of booking the trip, probably a substandard product and a newsletter. They get your money plus the commission paid by the travel supplier. It’s a great asset to anyone’s cash flow. Travel clubs should be geared towards social engagement and any dues or membership paid should be reasonable and cover only the true costs.

2. Become a travel agent. This is a scam that is running rampant now. Once you pay a fee to a company, it will issue “credentials” allowing you access to travel agent freebies and discounts and commissions on selling travel. First off, the days of freebies and discounts are done — trust me, they are few and far between. Secondly, in order to sell travel and be recognized by a supplier, you need to be affiliated with either a travel agency or be registered as an independent seller of travel with either the Cruise Lines International Association or the Airlines Reporting Corporation. Believe me, this is a perfect example of the old axiom, “if it seems too good to be true, it probably is.”

3. Deceptive pricing. Know the real price. Know the final price. Look at any major airline ad and you will see their too good to be true fares. The problem is the fine print. The ads are for a one way fare based on round trip purchases. Presto, your cost has doubled. It seems the airlines are more adept at creative pricing than flying their own planes. From frequent flier redemption to unavailable seats, to bogus two-for-one offers, they know all the tricks. But be careful, while the airlines are masters of this scam, they do not have a patent on the practice. Be sure you read all of the fine print before you hand over the credit card or click on the “buy” button.

4. Timeshares. People marketing timeshares are slick. They are not afraid to lie, cheat, or steal to make a sale. Most timeshare offers are made while you are already on vacation and your guard is down, but many are from contest entry forms where you fill out a form while waiting for your Chinese take-out. Very simply, never agree to a meeting or a presentation. Ask that any information be sent to you. Once in a presentation, you have put yourself in physical and fiscal danger. A client of ours just returned from Mexico where he thought he agreed to extend his stay to try out a timeshare. When he returned, he found that his credit card had been charged $37,000 and he was a proud new owner of a timeshare — Spanish contracts tend to be confusing if you are not fluent in the language.

5. Out of business. If you want to make a donation, do it to a charity for Tsunami Aid and not some corrupt or failing business. Cruise lines, tour operators, airlines, and yes, even travel agencies, have all gone under and left the consumer holding the bag.

While life offers no guarantees, you can hedge your bets a little.

Check out the company. Are they members of a professional organization such as the American Society of Travel Agents, Association of Retail Travel Agents, or the Cruise Lines International Association? Do they belong to a local Chamber of Commerce? These are all indicative of someone who is serious about doing business with you.

How long have they been around? Question the experience and tenure of the employees. Are there any complaints with the Better Business Bureau? Don’t pay with cash or checks. Remember, just because someone says they have the best deal, does not mean it is so. Anyone can open an online store in less than ten minutes for less than $200? It will take less time than that to recoup the investment tenfold.

Do your due diligence. ASTA’s consumer site, TravelSense offers more tips for keeping your travel purchases safe from the con artists. If you suspect you have been a victim of travel fraud, notify ASTA’s consumer affairs office, or call the National Fraud Information Center’s hotline at (800) 876-7060, and check with your local law enforcement agencies to see if they can help you.

2005-11-21T06:49:00.000-08:00

Deceptive Timeshare, Campground And Travel Club Sales

You receive mailings and calls encouraging you to attend a sales presentation for a travel club membership. You are promised "guaranteed lowest price" travel along with large savings and rebates on travel arrangements if you purchase a timeshare. Membership in the club is said to also include access to vacation condos at a reduced rate and special packaged trips and/or cruises.

To get you to buy a timeshare, costing $1995 to $4995, plus annual dues of up to $200, they promise exaggerated savings, and state that the Attorney General controls their sales methods by (1) requiring them to sell only a limited number of memberships, (2) offering for sale only certain packages for certain prices, and (3) requiring "one day only" prices.

Even though they say the sales presentation will last only about sixty minutes yours exceeds three hours in length during which time they state;

*the travel club membership can be canceled at any time even though the contract states it is non-cancelable and non-refundable;
*that it's in your best interest to sign an excessively one-sided contract giving them the option to cancel, create or change conditions without your approval or a corresponding right to cancel;
*you are to get a five percent rebate on all travel booked through Vacations Outlet, when in fact, the rebates only apply to certain types of travel;
*you are to get free airline tickets for attending the presentation but fail to say they require a seven to ten night hotel stay at your expense; and
*that they are a member of various tour operator and travel agency associations, when, in fact, they are not.

They fail to: make requested travel arrangements; obtain the lowest price; honor their cancellation policy; deliver on promises that you would save thousands of dollars in airfare and other travel expenses; or disclose that flights will be canceled unless 50% of each charter flight is booked in advance.

In addition to making false promises, they use "free prize" offers to lure people to attend the sales presentations and fail to give refunds within the required cancellation period. To take advantage of these so-called savings, you would have to constantly be on the go as your membership fees are more than what you would spend in a year for travel.

2005-11-16T10:59:00.000-08:00

Time-share firms Settle With Vermont Attorney General

Two developers of time-share lodging have agreed to pay $25,000 toward affordable housing and change their marketing practices to settle claims by the Attorney General's Office that they were violating the state's consumer fraud act.

Attorney General William Sorrell said the two timeshare companies and two marketing companies failed to tell consumers that they were being solicited to take tours of timeshare developments. The companies also allegedly misrepresented the purpose of the tours, misrepresented vacation package incentives as complimentary and placed a maximum age on the promotions.

A settlement between the state and the companies was filed Wednesday in Washington Superior Court. It involved North Star Lodge Limited Partnership of West Bridgewater, The Summit at Bolton Valley LLC of Waitsfield, Sage Marketing Group Inc. of South Burlington, and C&S Marketing Inc. of West Bridgewater.

The attorney general claimed that Sage contacted consumers inside and outside Vermont in 2003 and 2004 through telemarketing and at least 90,000 postcards, inviting them to attend timeshare sales presentations at North Star and Summit at Bolton. Vacation packages were used as incentives.

Summit at Bolton contracted directly with Sage. C&S contracted to do North Star's marketing and then subcontracted with Sage.

Vermont law requires explicit disclosures in written and verbal offers of vacation packages when a timeshare tour is involved.

Sage's telephone scripts misstated the purpose of the contracts as promoting tourism, when the real purpose was to sell timeshares, Sorrell said. The company also violated state law in claiming the packages were free or complimentary because guests were required to pay such things as a $50 deposit, hotel taxes and "seasonal surcharges."

Sorrell's claim also said that most of the timeshare promotions by Sage included a maximum permitted age of 65 or 68. Vermont's fair housing act prohibits any age qualifications to negotiate real estate sales.

Because it was difficult to identify individual consumers who might have been involved, the companies were required to pay $20,000 to the Vermont Housing and Conservation Board to support affordable housing and $5,000 to the state to reimburse the costs of the investigation.

2005-11-14T09:32:00.000-08:00

TIMESHARE SCAMS AND SHONKY DEALS

The following information has been compiled from reputable sources in New Zealand, Australia, Europe and the USA and is freely available on the Internet.

Timeshare seems to attract more than its fair share of scam merchants. They come up with some plausible ideas for transferring money from your pocket to theirs. During our years in timeshare we've seen a few come and go, some more than once.

CURRENT SCAMS:

"We have a buyer in England waiting now to pay $16,000 for your timeshare".
"NZ and Australian timeshare sells in the UK for as much as 20,000 English Pounds"
No such luck I'm afraid. This is the "catch cry" from companies whose only goal is to extract from you a listing fee. There is an international standard on resale timeshare pricing. Ask for a copy of our Timeshare Resales Valuation guide available from the address above.

Unfortunately, there is almost NO CHANCE of New Zealand or Australian timeshare selling in England so:

ANYONE SAYING THOSE WORDS MAY BE SETTING YOU UP FOR A SCAM

We have reports and complaints about companies operating out of Australia, one even with an Auckland telephone number, that are "promising" to sell NZ and Australian timeshare in England for unusually high prices. The listing fee is approximately $NZ500.00.

OUR ADVICE IS TO BE SUSPICIOUS OF ANYONE WHO PROMISES TO GET YOU A HIGH FIGURE FOR YOUR TIMESHARE WEEK!

2005-11-13T05:45:00.000-08:00

Ernie Uncovers Timeshare Scam

Media personality Ernie Dingo is to become the new face of a growing Gold Coast-based timeshare company.

The well-known identity has signed a two-year deal with Accor Premiere Vacation Club to encourage Australians to consider timeshare as a holiday option and warn of timeshare scams.

The deal with Dingo comes as APVC readies to expand its sales offices and develop resorts in Asia and New Zealand.

APVC has increased its investment in the tourism and leisure industry in 2005 to $71 million.

APVC chief operating officer Jim Sabot said the company's management and staff were excited to have secured Dingo as its ambassador.

"Publicly, Ernie is an Australian icon who reminds us all of the importance of holidays," said Mr Sabot. "He is a passionate, deeply principled family man and a joy to work with.

"Ernie's involvement with APVC marks another milestone in the acceptance of our product as a highly desirable holiday alternative for Australia, and soon, the Asia Pacific region."

The multi-award-winning Dingo appears on the weekly television series The Great Outdoors, has starred in movies and TV shows, has presented special features and has appeared in live theatre productions.

He has been awarded the Order of Australia and in 1997, was voted a National Living Treasure in a poll conducted by the National Trust. In 1994, Ernie was voted 'Aboriginal of the Year' by the National Aborigines and Islanders Day Observance

Committee).

"In choosing a corporate ambassador for APVC we had what we thought was an impossible wishlist: a high-profile Australian icon, strong principles and family values, close association with holidays and travel, and a sense of humour and fun that would complement the company's culture," said Mr Sabot.

"When Ernie agreed to join our team and bust timeshare scams we got it all. Ernie epitomises the APVC experience and his participation is a milestone for us as we become the preferred way to holiday for so many Australians."

APVC is a joint venture between international hotel operator Accor Asia Pacific and property developer Becton Corporation. It has been operating in Australia since 2000 and has more than 11,000 members.

2005-11-12T04:42:00.000-08:00

Timeshare Telemarketers Settle Do Not Call Charges

Two timeshare sellers and their telemarketer will pay more than $500,000 to settle Federal Trade Commission charges that they violated the Do Not Call Rule by calling thousands of consumers who placed their phone numbers on the FTC's Do Not Call Registry. The Registry currently contains more than 85 million numbers.

Under the settlement, the timeshare sellers are barred from violating the Do Not Call Registry in the future. Two individuals who own the telemarketing company that made calls for the timeshare sellers are banned from owning or controlling any telemarketing operation in the future.

"You cannot hire subcontractors to break the law for you and then walk away free of consequences," said FTC Chairman Deborah Platt Majoras. "Millions of Americans have indicated that they do not want telemarketers calling them, and we intend to enforce the law that gives them the right to make that choice."

In August 2004, the FTC charged that Braglia Marketing Group (BMG) and its owners, Frank and Kate Braglia, unlawfully called hundreds of thousands of consumers who had placed their numbers on the Registry, and that they had not paid the Registry access fee for some of the area codes they called.

They also allegedly abandoned calls to consumers. Under the FTC's Telemarketing Sales Rule (TSR), a call is "abandoned" if the seller or telemarketer fails to connect the consumer with a live sales agent within two seconds after the consumer answers the phone, resulting in "dead air."

According to the FTC's complaint, BMG made calls on behalf of the two timeshare and vacation properties in Atlantic City, New Jersey - Flagship Resort and Atlantic Palace. The FTC sought civil penalties and a permanent order prohibiting BMG and the Braglias from violating the law.

After further investigation, the FTC filed a second lawsuit charging Flagship Resort and Atlantic Palace with hiring BMG to telemarket their timeshares, and that while calling on their behalf, BMG violated federal law by calling registered numbers.

The complaint further charges that Flagship Resort itself called consumers who were protected by the Registry. The FTC's complaint also charges that the defendants abandoned calls to consumers and failed to pay required fees to access the Registry.

2005-11-11T07:38:00.000-08:00

Timeshare Fraud Leads To Prison

A Gilbert man convicted of defrauding time-share owners was sentenced Wednesday to more than eight years in prison for bilking about 2,000 victims.

Ingo Melvin Rewald, 51, was ordered to serve the prison time by U.S. District Judge Frederick Martone after pleading guilty in April to mail fraud, according to federal prosecutors.

Rewald admitted that from 1998 to 2003 he operated three companies - Aventure-Time-Marketing, TimeShares-R-US and Condos-R-US - in connection with the scam.

Using an assumed name, Rewald contacted victims and told them he would connect them with a buyer for their time shares in return for a $395 finder's fee. There were no buyers, and he collected the funds via postal boxes.

For sentencing purposes, the judge ruled that Rewald had taken in up to $1 million. The defendant was ordered to pay $264,412 and serve three years of probation.

2005-11-10T07:23:00.000-08:00

Timeshare Spammer Pleads Guilty

A Florida man known as the "Timeshare Spammer" has pled guilty to violating the US CAN-SPAM Act. Peter Moshou, who was alleged to have sent millions of unsolicited e-mails offering to help people sell their timeshare properties, entered the plea Thursday in U.S. District Court for the District of Northern Georgia, according to Earthlink, which has launched a civil lawsuit against the spammer.

Moshou is among the first to be convicted under the federal law, known as the Controlling the Assault of Non-Solictied Pornography and Marketing Act, said Alexandra Trask, an Earthlink spokeswoman. He now faces sentencing by the Court, she said.

Under the law, Moshou could face jail time or possibly millions of dollars in fines, which can be assessed at up to US$250 per unsolicited email.

Earthlink is also seeking unspecified financial damages from Moshou, who was sued by the Atlanta Internet service provider in January. In addition to the CAN-SPAM violations, Earthlink's lawsuit also charges him racketeering and Computer Fraud and Abuse Act violations, the company said in a statement.

2005-11-09T07:05:00.000-08:00

Timeshares: Take Your Time Before Signing On Dotted Line

QUESTION: While vacationing last December in Cancún, my partner and I were bombarded by time-share sellers. They promised free meals and tours for attending a "short presentation." We finally agreed to hear what Krystal Cancún had to offer.

The sales rep put on an impressive show. When I balked at the $29,900 asking price for a 26-week timeshare, the rep came back with a deal at less than half the cost, $12,500, which included a way for us to resell unused weeks. He also offered us membership in an exclusive discount travel club — a big selling point because we travel frequently. I signed on the dotted line.

Later, I reviewed the contract against my written notes and noticed that it did not include all the benefits that were verbally promised. And some of the discounts that were offered came with different restrictions than what was explained. I went back to Krystal the next day and got a bunch of excuses. When I asked for a refund, they offered to reduce the price even more.

The red flags were now up. I returned to my hotel and faxed a letter to Krystal canceling the agreement. At the same time, I filed a dispute of the charges with Citibank Mastercard.

It has been several months. Krystal denied my request for a refund, saying that I waived my right to a five-day cooling-off period in exchange for a "special deal." Citibank continues to send me a variety of computer-generated letters, one of which dismissed my request because the purchase was made outside the country.

I thought I was doing everything right, but things seem to be going very wrong. What happened?

Answer: Like many travelers south of the border, our reader was seduced by a salesman offering a slice of paradise. He should have walked away. Instead, Rohde signed on the dotted line — and took home an expensive souvenir.

It's easy to understand why people get snagged. Mexican resorts are crawling with time-share wranglers hawking deals at gleaming pleasure palaces.

"Their properties are beautiful. Your mouth just drops," said Vernon Penner, a Phoenix-based attorney who represents U.S. consumers in Mexican timeshare disputes "Most people think, 'Hey, I can get in on the ground floor.' It's a common mistake."

Increasingly, U.S. consumers are falling into the hands of operators who use high-pressure practices to close the sale. These tactics can include promises of free or deeply discounted vacations and failure to disclose all the costs of the deal.

As a result, complaints about Mexican timeshares from foreign visitors were up 23% (to 428) in 2004 from the previous year, according to Profeco, the Mexican consumer-protection agency, based in Mexico City. At the same time, websites such as the Timeshare Users Group, http://www.tug2.net , are buzzing with discussion from travelers.

One of the problems they report is the "cooling-off waiver."

Under Mexican law, buyers have five working days to cancel a timeshare contract without penalty. It's similar to California law, which allows three calendar days to back out of a timeshare purchase.

But some timeshare operators reportedly ask would-be owners to sign a release waiving that right, which is "illegal, an outright lie and a misrepresentation," said Eileen Harrington, director of the marketing practices division, U.S. Federal Trade Commission.

"It's a fraud that started with one timeshare company and is now rampant throughout Mexico," said Andrea Hackman, editor of the Timeshare Beat, an industry website and newsletter, http://www.timesharebeat.com .

Rohde apparently was one who got tangled in the waiver dispute. To qualify for a special deal at Krystal, he was asked to sign the waiver.

The catch is, most buyers don't review timeshare contracts until they return home and then it's too late; the cooling-off period has expired.

"Timeshare operators bank on that," said Gail Kaufman, a timeshare owner who had a waiver problem and runs the website http://www.mexicantimesharefraud.com .

Because a copy of the signed waiver is rarely included in the documents new buyers take home, it's tough to make a case for a refund with the timeshare or credit card company.

"No one ever gets a copy," said Kaufman, who added that she receives about 10 complaints a month about waivers. "It comes down to 'he said, she said.' "

Rohde thought he was safe; he filed a dispute with Krystal and Citibank within five days. But after months of calls and letters, he still came up empty-handed.

At Citibank, Rohde's dispute apparently had fallen into a bureaucratic black hole.

The claim should never have been denied for making an out-of-country purchase, said Janis Tarter, a bank representative. "We sent him the wrong letter," she said. "That's what held up his investigation."

After our call, Citibank issued Rohde a provisional credit for the price of his timeshare. When asked about the chances that credit would actually go through, Tarter responded, "We have no reason to believe that the merchant bank won't refund the money, based on the documentation Rohde provided."

Because his refund was not assured, we filed a complaint on Rohde's behalf with Profeco. The agency claims a high success rate at negotiating refunds for timeshare complainants.

Last year, Profeco recovered $2.1 million in timeshare funds, more than twice the amount it collected the previous year. The service is free, but it can take up to four months to get a refund. And it's not always guaranteed.

Profeco "can call a timeshare company to the table but can't force them to accept a deal," said attorney Penner, explaining that the agency offers conciliation services, not arbitration or litigation.

The outcome is based strictly on the timeshare contract.

"If a consumer cancels within five days, we usually can get all their money back," said Martha Carrillo, who heads the division handling foreigners' complaints. "But we can't guarantee anything."

To avoid getting caught in timeshare trouble:

Just say no. Don't let timeshare sharks get a nibble. A free breakfast is not worth the cost and aggravation of making a bad financial decision. "Most of the timeshare disputes we handle are a case of buyer's remorse," said Citibank's Tarter. If you're truly set on buying a timeshare, do it at home, on your own timetable.

Slow the pace. Too many buyers sign without understanding the terms of the agreement — or making sure all verbal promises are in writing. Take the contract back to your hotel to review.

File disputes and get proof. You can change your mind, no matter what you've signed. But do it quickly. Send certified letters to the timeshare operator, your credit card company and Profeco while you're still on vacation.

"For Profeco to help the buyer, the buyer must help Profeco," advised attorney Penner, "and the more means of showing intent to cancel the better." He also urged consumers to get the letters notarized in Mexico: "It's the best way to prove that you canceled within five days."

Ask others for help. At the website http://www.mexicantimesharefraud.com , as well as Mescam (www.sws-llc.com/mescam) and Timeshare Users Group, you'll find people who fought the refund battle and won, even outside the five-day grace period. The sites are rich with facts, information, timeshare company complaints, sample cancellation letters and more. They'll even help get your money back.

Alert authorities. Although the tactics of timeshare sellers are similar to those in this country, "there's no protection from the U.S. government," said the FTC's Harrington. "You'll have to deal with Mexican consumer-protection and law-enforcement authorities." Profeco has been working closely with the FTC and the U.S. Embassy to resolve consumer complaints and has set up permanent help desks at airports, beaches and bus stations throughout Mexico.

Aggrieved consumers can file gripes on the spot or contact Profeco through its website, http://www.profeco.gob.mx . (Click the link called "Attention to Foreigners.") Also, register your complaint with http://www.econsumer.gov , a joint effort of 13 countries to address cross-border fraud.

Missed the deadline? Don't give up. Some timeshare contracts allow buyers to cancel outside the five-day period and still get a refund, minus a penalty. Worst case, Profeco says it can get some type of compensation for owners, even if it's a certificate for a free vacation, airline discounts or extra timeshare weeks. "We won't close a case until the consumer has the certificates in hand," Carrillo said.

2005-11-07T07:53:00.000-08:00

2 Arrested In Timeshare Sales Scam

Martin Kane got the first call in 2000.

Recently diagnosed with cancer, he wanted to unload his timeshare property in Myrtle Beach to pay mounting medical bills.

Then, out of the blue a man from a company called Timeshares xxxxxxxx phoned offering to link him with a buyer. All Kane had to do was pay a $300 processing fee. When the sale was completed, he would get the money back along with the proceeds.

"We were in pretty bad shape at that time," said Kane, 69, of Shelby, N.C. "I sent him the money he requested, like a dummy."

He still is trying to find a buyer.

There are legitimate companies that help people sell their time shares. But Timeshares xxxxxxxxx wasn't one of them. Kane never got his money back.

Apparently he wasn't alone. Authorities say two local men, Jeremiah C. Peyton and Andre D. Bustamante, scammed at least 1,150 people around the country out of an estimated $350,000.

Following an investigation by the Hillsborough County Consumer Protection Agency, the state Attorney General's Office has arrested Peyton, 26, of Tampa, and Bustamante, 24, of Temple Terrace. They face first-degree grand theft and money laundering charges. Peyton already was in the Citrus County jail on federal drug charges.

Temple Terrace police arrested Bustamante at his father's home. He is being held in the Hillsborough County Jail on $100,000 bail.

The two men face up to 60 years in prison if convicted, Assistant Attorney General Mark Campbell said.

The ruse continued for years, but in 2003 complaints started trickling in, said Rob Robillard, an investigator with the Hillsborough County Consumer Protection Agency. The pair worked from at least two locations in Hillsborough County, targeting out-of-state victims they found through listings for time share owners, he said.

The scam involved an ever-changing array of companies - none of them legally registered in Florida, Robillard said.

Many people are eager to unload their time shares because they are too old to travel or, like Kane, have bills to pay. After people sent their service fees - anywhere from $299 to about $350 - they called to find out about the sale only to get excuses or find the phone disconnected. Their money had been transferred to bank accounts set up in other people's names around the country, Robillard said.

Authorities think they know at least two of the locations where the scam operated.

Peyton's home on Vista Point Drive in Tampa may have been the most recent one. They may also have worked out of The Marquis apartment complex off Bruce B. Downs in New Tampa where Peyton once lived, Robillard said.

The investigation is ongoing, and more arrests are "very possible," he said.

Kane is glad for the arrests, but it doesn't ease the sting of his loss. He said he got another unsolicited call, and this time he asked for a written contract before sending in a $325 fee. After that, nothing happened. He has told investigators about this episode as well. His cancer is now in remission, and Kane finally believes he's found a legitimate company to sell the time share. He's asking $11,500. It can't happen too soon.

"I'd take $8,000 if I can get it," he said. "I need to pay some bills."

2005-11-04T07:10:00.000-08:00

Woman Says Internet Company Failed To Sell Timeshare

Christina Richardson decided to sell her family's timeshare condo in Myrtle Beach using an Internet company. When the condo didn't sell, Richardson claims, the company failed to keep promises and she says she wants her money back.

Richardson paid Resorts International Unlimited $685 upfront to promote the sale of her timeshare for 180 days. But she says they never received any offers from buyers through the company.

Richardson said they were also promised airline vouchers from Resorts International Unlimited if their timeshare didn't sell within 180 days. She said she talked to several people at the company to try to get the vouchers.

"I asked them about the airline vouchers and he said he would send them out. (I) never received them. Two months went by, I called again and spoke with a different person and she said she would get the airline vouchers out," said Richardson.

But still the vouchers never came. Action 9 got in touch with the Florida-based company. A representative denied they ever promised to sell Richardson's timeshare.

"We make it very clear that when we start to do the advertisement that we're not a real estate agent and not a broker. We are strictly an advertising company and it clearly states on her contract that the marketing fee that she paid is for marketing expenses," said a company representative.

Resorts International Unlimited made the decision to refund Richardson's $685 advertising fee.

If a company approaches you about reselling your timeshare, don't agree to anything over the phone. Ask for written materials. Is the company promising to sell your timeshare or just advertise it? Find out before you pay any money upfront.

2005-11-02T04:46:00.000-08:00

Krystal Cancun Timeshare Fraud

We arrived in Cancun, Mexico August 8, 2005 on vacation and attended a timeshare sales presentation on Saturday, the 9th at the Krystal Cancun Hotel in Cancun Mexico. After listening to the presentation, we were offered a timeshare package with a price of $14,900, which we informed the sales man was not in our budget. He then walked away and returned with a sheet of paper in which he claimed were timeshare foreclosures. He then offered us a timeshare package with a Price of $11,090 and then explained to us how good of an investment this would be. My wife and I were told that we could rent five of our 13 “Power Weeks” (Holiday weeks) for $3,150 per week per year minus maintenance fees and five regular weeks per year for $5,600. That was a total of $18,675, in which we were told we would receive on November 9th (90 days later). Then on January 1st, we were to receive another check for $18,675 and so on for the next five years until our weeks were all sold. We were told that a broker named Vacation Network Advertising Corporation would rent our vacations and that companies such as American Airlines would be eager to purchase our vacations due the amount of money American Airlines could profit. He also explained that Krystal could not rent the vacations directly to American Airlines because of legalities. The sales representative then encouraged us not to use any of our weeks but to rent them all and use either I.C.E or RCI for our vacationing arrangements. When we finally agreed to the offer, we were told that this deal was only good for today and that we had to sign a form witch waived our right to a five-day cooling off period in order to receive this “special deal”. At the time we did not think much about it, we signed it and proceeded to pay for the timeshare. Mysteriously the 5 day cancellation form giving up our right to rescind the agreement was NOT included in our packet.
After returning to our Hotel, my wife felt doubt about the timeshare purchase and felt that we should cancel it while still in Cancun. I then reminded her that we signed a waiver in which we gave up our right to cancel. Even though I was feeling my own doubts, I believed that we could not cancel because of the waiver. We decided that our only option was to look forward to the rental of our weeks. Almost 2 years have now past and not one of our vacations have rented, even after we lowered the price of our “Power weeks” by more than a $1000.

After finally conducting research on the Krystal Cancun timeshare we found that not only has the Krystal run the same scam on others but they are using same sales pitch that was given to us even though they know that none of the vacation weeks are renting at the price that they claim they will rent for. I have spoken to people that have fallen for the same fraudulent practices as recently as October 2005. Also, there are Mexican laws in place to protect any timeshare purchase by granting a 5-day cancellation period. What Krystal Cancun stated was ILLEGAL and blatantly against the law!

I have tried to contact the Krystal Cancun by email and by phone concerning a maintenance fee payment and the issue of my timeshare weeks not renting. I was given multiple excuses as to why the vacations were not renting and other times I did not receive a reply at all. Only when I threaten to report them to the Mexican Federal Government Agency "PROFECO” did they reply to one of my emails. I then received a call from one of their employees who informed me that I did have to pay a maintenance fee for a week that I did not use. I informed her that I did not use the week because I was told during the sell that I would have no problem renting the week. She then offered me a RCI voucher for the week and offered to get me information on another Vacation Broker that would buy my weeks. I received the voucher but never received the information on the Vacation Broker. I've also requested a full refund and all they have done is try to convince me that none of this happened even though they know that I have spoken to other people who went through the same ordeal with them.

2005-11-01T04:30:00.000-08:00

Millionaire Timeshare Fraudster Made Bankrupt

There is good news for the victims of notorious timeshare fraudster, John 'Goldfinger' Palmer. The convicted fraudster has been made bankrupt at a hearing in the Bankruptcy Division of the High Court. Palmer is still in prison but hoping for parole in late 2005.

The bankruptcy proceedings are the result of civil claims made by over 350 people for compensation from Palmer for the sums they have lost. Mr Palmer owes his victims in excess of £5.5 million. Trustees appointed by the victims will now raise this money from Palmer's assets to pay the compensation claims.

The victims obtained judgement against Palmer in February 2004 and started bankruptcy proceedings against him in August 2004. He was forced to disclose to the Claimants details of his worldwide assets. Palmer repeatedly convinced the court to postpone his bankruptcy petition, claiming he was trying to sell his timeshare assets in Tenerife. His delaying tactics are finally over.

Jonathan Wheeler, partner at the London office of law firm Irwin Mitchell represents the victims. He says: "This is a major achievement. Our clients took the brave step of pursuing Mr Palmer through civil proceedings when they realised that the criminal justice system was not going to help them. Their determination has been rewarded by the bankruptcy order and we can get on with selling the timeshare resorts and other assets to pay the compensation due to our clients."

2005-10-31T05:39:00.000-08:00

Timeshare Appraisal Scam

Timeshare appraisal scams are among the worst scams in the timeshare industry. Many timeshare resale companies will tell you before we can sell timeshare for you, you must have it appraised so we can determine the resale value of your property. They will then turn around and charge you any where from $300-$600 dollars for the service. What they are charging you for is something that can and should be done for free. Timeshare appraisals are something that is physically impossible to do. You see what you own is a piece of time not t physical piece of property. Only a physical piece of property can be appraised. What you own is a piece of time. Time cannot be appraised. You and 52 other people own a share time or interval timeshare or timeshare which is essentially a piece of time allotted to you every year or every other year to use at your home resort. Because what you own is a piece of time these companies are charging you for a service that is physically impossible do. At Timeshare Resort Sales we offer a Free Market Analysis of you timeshare sales property. One of our timeshare specialist can assist you in determining the true resale value of your time share. So don't be scammed out of your money if you come across a timeshare resales company trying to charge you an appraisal fee. Don' t do it.

2005-10-29T05:54:00.000-07:00

I Wanted To Let You Know About What I Think Is A Scam!!!

I am being pestered by a company calling themselves CVC Travel. I filled in a questionnaire in the highstreet and gave my phone number as they said I could win a prize. I have tried checking the company out and cannot find their name anywhere but I understand they represent an agressive time share company called www.cunterra.com. The prize is a holiday in any one of many locations including the Canaries or the Balearics. Anyway I am told that we have to pay a booking fee of £39 per person but we would enjoy a lovely 5 star timeshare for a week. It sounds too good to be true ( I never win anything!) I have started checking this out and found that if you do give them your address details and book the holiday you will be pestered for life by the pushy sales team asking you to sign up for the timeshare where you buy points. If anyone gets a call like this ignore it from the start!! The number they say to call is 871 232 8028 and they give you some funny reference number to make it sound genuine. Thanks - Alice

2005-10-27T08:42:00.000-07:00

Florida Distances Itself From Bogus Travel Promotions.

Visit Florida has warned that UK consumers are being misled by bogus travel promotional companies masquerading as the state’s official tourism bureau.

The tourist office stressed that it does not “sell or solicit” travel packages over the telephone or engage in “high pressure tactics” to sell Florida holidays.

A statement added: “Consumers are never required to make any form of payment to enter or win a Visit Florida sponsored or endorsed promotion or sweepstake. No other entity officially represents the states, even if they are using a name that sounds like they are.”

Visit Florida cautioned consumers not to give their credit card details to anyone unless they are absolutely sure the vendor is credible and reliable.

“If in doubt, always check the credibility of a vendor before providing financial or personal information,” the statement added.

The tourist organisation recommended that holiday packages be booked through and ABTA or ATOL-bonded company to ensure passenger protection is in place.