It seems every day now I hear another timeshare scam . The timeshare industry is known for scams. And when you hear the scam you wonder how people fall the scam. That's until the scam happens to someone close to you. Recently, a family member (Walter) told me he was called 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 tell-tale signs of a scam, and how to avoid timeshares scams so you don't find yourself falling them . 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 fishy . 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. The company rep called me and I had my questions ready. 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 "standard 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 story was always the same. 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 Walter again. SCAM! So what are the 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. * Verify everything they tell you . Every scam is always the same. It's some call center 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.* Tip: Tell them you are recording - 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.* Get specific - 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. * Suggested Questions: What specifically are you doing for this money? Is there a refund? 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? Is there a way for you to get paid out of the proceeds of the rental?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 powerless 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 thathang up.
