It seems every day now I hear another timeshare scam . The timeshare industry is full of scams. After you read the story about the scam you always wonder how people fall victim to the scam. That's until the scam happens to someone you know . Recently, a family member (Walter) told me he was contacted by his timeshare resort company to rent his week out for him. The more I heard about the story, the more I smelled a scam. Let me tell you about timeshare scams, the signs of a scam, and how to avoid timeshares scams so you don't find yourself falling into their trap. Walter told me that the resort developer could rent the week for $2,500 and they would charge him a $1,300 up-front fee. I thought that sounded a little too optimistic . I was surprised that a resort of that stature would do that. So I asked some more questions. I told him to have them call me to talk it over. Let the fun begin. When they called me I asked a few questions right away . It turns out that it wasn't the resort developer at all. It was some company from Florida. They explained to me that they could rent out his studio week in Cancun for the "customary rate" of $2,500. Obviously I challenged that. The more I dug, the more I found out. They weren't "renting" the week since they were not Realtors. They weren't handling the transaction. The only thing they were offering was to advertise it. And if it didn't rent, there were no refunds. No specifics about how they advertised either. While on the phone I did a quick Google search on their name and story after story came up about people they had ripped off. The company took the customer's money and ran. The amounts of money they charged varied but the ending was the same. Suffice it to say I told them to never call me or my family again. SCAM! So what are the telltale signs of a timeshare scam? Let's review them. * Don't pay an upfront fee - As soon as they ask for that, run. Once they have your money, they have absolutely no incentive to work. * They tell you what you want to hear so verify it. Every scam is always the same. It's some boiler room operation in Florida making outbound calls to elderly timeshare owners. They sound very friendly on the phone but you have no idea who they are. They will tell you what you want to hear. Check Google, the BBB, and the State Attorney General. * Tell them you are recording the call - To ward off scammers I always tell them I am recording the call and ask for their permission. That usually puts them back on their heels. You'll know right away who is full of it. * Ask specific questions - I asked them specifically "You are going to rent this for $2,500?" The answer I got back: "No, we are not realtors. We can only advertise. And there is no guarantee we can get $2,500. It depends on how flexible you are on the offers we get." Once I started asking questions, the whole story came crashing down like a house of cards. * Ask Questions! : What specifically are you doing for this money? What if it doesn't rent or sell then what? Are there any complaints currently filed against you with the Better Business Bureau ? Can you show me proof in writing that you have rented units before for this price? Can we put the fee into escrow so you get paid once I rent the unit? Timeshares are fun but the industry does have its fair share of scams and then some. However you get there, IntervalWorld or RCI.com, timeshare vacations are great for the family. But remember "Caveat Emptor" (Buyer Beware). The victim feels overwhelmed by the caller. Trust me; you are smart enough to handle this . Just ask a few questions and you'll be surprised at how quickly you get that feeling in your gut. And once you get that…hang up.
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