There’s been lots of chatter online about a survey that was conducted that showed, shocker, that consumers favored a 24 hour cooling off period when purchasing a timeshare.
A cooling off period differs from a rescission period. In a nutshell, a rescission period gives the consumer a mandated time period to cancel/rescind the purchase and get all their money back. In the US, rescission periods vary from 3 to 10 days depending on jurisdiction. A cooling off period would entail no money being paid until 24 hours after the initial sales pitch and presumably, the consumer being given all the documents related to the sale prior to signing any of them.
Now, let’s be serious here. I’m all for transparency. I’m also all for consumers getting some education regarding timeshares. However, the chances of this getting a hearing in any state’s legislature, much less passing, is nil.
So, what should be done? Buckle up…it involves two major paradigm shifts.
Paradigm Shift Number 1
Change the sales presentation to 120 minutes over 2 days. First day is the realm of the salesperson. The usual discovery, uncovering of a vacation problem, and the presentation of the solution, I.e. whatever they’re selling. Documents, including the document that ARDA and I co-wrote last year, https://www.arda-roc.org/important-information-for-buying-timeshareare presented and given to the consumer to review. No bribes, I mean gifts given.
The following day, the consumer returns with the documents and asks all the questions they need in order to make a decision. The sale is either made or not. The documents are either filled in or returned. The bribes are collected.
Paradigm Shift Number 2
The consumer comes in armed with at minimum my list of 19 Questions You Must Ask Before Purchasing A Timeshare (available for $18.99) and doesn’t make a decision until/unless they receive answers to those questions.
I’ve heard every reason why this won’t work, but think about it…the timeshare industry has taught the consumer to believe that the current sales paradigm is normal. It isn’t of course outside of timeshareland.
Frankly, I have more faith that one or more developers will change their current antiquated sales paradigm than I do that consumers will change their behavior. Years of telling consumers to absolutely, unequivocally not do business with any company or individual that initiates contact only to have hundreds if not thousands of them cry foul when it becomes clear that they thought they’d be the exception, only to be the victim of a scammer that you guessed it, initiated contact.
Disney Vacation Club operates in a similar manner to what I’ve suggested here. They actively encourage consumers to not purchase right there and then. In 20 years of doing thus, I’ve heard ZERO complaints against them.
This can be done. Who is going to step up to the plate?
2 comments:
I just can't imagine an OPC in a booth in Branson or Gatlinburg telling a couple that they will have to "drop by" for a presentation two days in a row - to get a gift card or a free dinner. The pitch is that it is 60 - 90 minutes. In and out. Easy - peazy. The lie is that it's really 2 - 5 hours. I wouldn't agree to 2 sessions for a stupid gift card. Heck, I won't do one session for a gift card.
I was surprised to see this in the ARDA article you linked "Maintenance fees are paid to your homeowners' association - not to your developer."
Surely that's not the whole truth. There's a good chance that a chunk of the maintenance fees end up getting paid to the developer in the form of management fees, and it's in the developer's interest that maintenance fees increase, as then the developer can collect more management fees that are almost pure profit.
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