You Want Timeshare Change? Here’s How

After reading yet another sob story from a consumer who said among other things:  

>he was kept at his sales pitch for 5 hours, 

>he was under the impression that he was buying one thing when it turns out he was buying something different,

>the monthly payments increased and maintenance fees magically appeared in between the sales table and the closing office

I’m again floored.  

He rant started this way:  I just left Florida recently and of course to get my free gift went to the diamond resort presentation that was supposed to last 120 min and lasted 5 hours at mystic dunes resort in Orlando...

I swore I was not going to comment on these type of posts any longer, but here’s what I said:

I am a long time consumer advocate focused on timeshare issues. I do not condone any misrepresentation or lying by any developer’s employees or agents. 

Having said that, when will people understand that there is no such thing as a “free gift”?  When will people understand that when you agree to the sales pitch in exchange for your “free gift” you are only obligated to stay the length of time that’s in writing?  Yes, it’s in writing because it’s the law. 

The system that is in place is in place because it’s working for the developers. Once consumers stop accepting the status quo and the “free gifts”, the system will be changed.

This Isn’t A Property Brothers Show People

I know I’m The Timeshare Crusader. I know I’m a passionate advocate for consumers in all things timeshare. I know I can not tolerate lying by timeshare sales staff. I know. I know. I know. 

But I also can’t tolerate consumers abdicating their responsibility and just making stupid choices no matter how clever, masterful or deceitful the sales people are. 

This issue was recently brought to my attention. I have no doubt that the sales staff lied. But at a certain point you have to wonder if the consumers were on some nifty mind altering drugs to believe this stuff. 

Owner indicated that they wanted to take advantage of the developers’s voluntary surrender program, which they were eligible to do since the timeshare was paid off. All they had to do was fill out the paperwork and pay $1,000 to the developer. Instead, they willingly handed over $12,000 because they were told that in order to take advantage of this voluntary surrender program, they would have to purchase $12,000 in additional timeshare points.

Now think about this for a minute. They weren’t looking to sell back the timeshare, they were going to have to pay $1,000 and then voluntarily surrender their ownership. This isn’t the case where they owned a house built in the 1970s and The Property Brothers convinced them that they should spend $40,000 on upgrades so that they’ll be able to sell the house for top dollar. 

They wanted to give back their timeshare because they didn’t use it any longer. Instead, they bought $12,000 MORE because the salesperson said it was the only way to do so. 

Another play on this came in last week. A couple was told that they had to upgrade to the highest point level this developer offered in order to take advantage of the voluntary surrender program. The same voluntary surrender program that is clearly outlined on the webpage when you log in as an owner. 

The couple is now both crying and crying foul to anyone who’ll listen as they can’t afford the additional timeshare that they purchased and are facing foreclosure. 

Don’t misunderstand me for a minute; these sales agents need to be thrown out and if I had my say, financially punished. This is deplorable. But in my opinion, the consumer bears some responsibility for this. The larger question is this:  What is it about timeshare matters that opens the door for so much shenanigans?  People are getting ripped off at all stages, from being mislead into thinking its only a 90 minute presentation that turns into 4 hours, to not understanding what they are buying, to being coerced into buying more in order to accomplish what they want to do on vacation and finally to being fleeced when it comes time that they want out. 

I don’t pretend to have all the answers. I bring up the questions. Let’s hope the industry is fixable. 

An Open Letter to the Timeshare Industry

Dear bigwigs and not so bigwigs, I hope that at least one of you answers this letter, even anonymously. 

Here’s the question:  Why do timeshares in the secondary market have such low value compared with the original purchase price?

Let us assume that Joe and Mary purchase one of your timeshares for $20,000. They use it annually and pay all the maintenance fees, even when you increase them. 10 years go by and they don’t want it any longer. They are disheartened to find out that similar timeshares have only managed to sell for $1,500.  

Joe and Mary will now do one of three things; a) they’ll fall prey to a scammer who will promise that they can sell it for $20,000 because its real estate, for a $6,000 upfront fee, b) stop paying the annual fees and be faced with a foreclosure and everything that goes along with it when you start legal proceedings or c) end up selling the timeshare for only $1,500. All three of these options will have the effect of negating the positive experiences Joe and Mary have had vacationing and you can bet that they will not be recommending timeshare to anyone. 

You, on the other hand could have offered to buy back Joe and Mary’s timeshare for $15,000 (actually you could buy it back for $20,000, but I’m feeling generous today) and turn around and sell it the following day for $30,000 as that is what you’re charging now. There has been no depreciation on the timeshare because Joe and Mary faithfully paid what you billed them every year and you maintained the unit and the resort...you did, didn’t you?

Joe and Mary will not fall prey to any scammers now, because there’s no need for them to even exist. Joe and Mary feel good about their purchase and their years of vacationing at timeshare resorts and are likely to recommend this way if vacationing to their friends and family. 

Why don’t you do this???

The Truth About Timeshare Exit Companies

As you probably know, there’s been a lot of talk lately about so-called timeshare exit companies. Major timeshare developers are filing lawsuits left and right against these companies as well as licensed law firms. Heck, I’ve even been interviewed by the CBS affiliate in Charlotte about these companies. https://www.wbtv.com/video/2019/05/13/timeshare-problems/

Timeshare developers, ARDA and ARDA-ROC have been putting out press releases about how their goal is to protect consumers from the ‘evils’ of any person, company, organization or firm that claims to assist beleaguered owners. I’ll leave the discussion about what their actual goal is for another post.  

At a recent legislative workshop in Florida at least two individuals from the industry, Ken McKelvey of ARDA-ROC and Jason Gamel (who was with Wyndham at the time) of ARDA made impassioned speeches about how timeshare developers have programs to take back timeshares from owners who want out. 

But that really isn’t the case, is it?  If you’re a timeshare owner who wants out for whatever reason, your first course of action is not going to Google ‘timeshare exit’, is it?  No. It goes something like this:

Step 1-Contact the resort where you purchased your timeshare. Chances are pretty darn good that you’ll be shuffled from department to department because there’s not really any dedicated staff at the resort to deal with these situations. You’ll either be told that you signed a contract that can’t be broken, given a number to someone at corporate or worse, invited to an “information session” where you can learn new ways to use your timeshare. 

Step 2-Contact the developer where you’ll play yet another round of telephone transfer to no avail. 

Step 3-Try to sell your timeshare. This is where you’ll find out one of two things. First, if it’s paid in full it’s only worth a tiny fraction of what you originally paid and the secondary market is awash with listings, many of them for under $100. More often than not, it’s not paid in full and then you discover that you can’t sell it because no one is going to buy it when there’s a balance owed. 

At this point, weeks or months have gone by and you are in the same situation; you want out and out quickly before another maintenance bill hits. 

Only after exhausting these options to no avail will you go online in hopes of finding an exit company. 

Now, I’d be remiss if I didn’t mention that some developers have instituted some programs where they will take back their own timeshare. For a fee. If it’s paid in full. At their own discretion. If they decide to. 

It’s pretty easy to see why there’s been such an increase in the number of organizations that promise to get an owner “out” of their obligation.

Are people within the industry truly that blind to what is going on?  They don’t really believe their own spin, do they?  The ONLY reason for the increasing number of organizations that are advertising their methods to get someone out of a timeshare is because the industry won’t let owners out. 

This Is What You Need To Know About Timeshare Charges

When you purchase a timeshare, either on the primary or the secondary market, there are a number of charges that you will encounter aside from the purchase price.  

Read this to understand the basic, not so basic and red flag charges you may encounter. 

Standard Timeshare Fees

Maintenance Fees

Regular maintenance fees cover normal wear and tear on the timeshare units and common areas, such as the pool, the clubhouse and the grounds.  Most resorts have a timetable for replacing items such as televisions, bedding, kitchen appliances, etc. This timetable and more information on annual fees can usually be found in the Public Offering Statement (POS).

Real Estate Taxes

If a timeshare is in fact real estate-based, there are taxes to be paid, similar to a home or condo.  Some resorts combine the annual maintenance fee and the real estate taxes into one payment, but it is a good idea to get the breakdown, as the real estate tax you pay on your timeshare may be tax deductible.

Special Assessments

While maintenance fees are regularly occurring, special assessments are by their nature “special” or assessed on a non-regular basis.  Special assessments are levied to cover costs over and above normal wear and tear and replacement of items.  A typical example of when a special assessment is needed and what it covers is hurricane damage.

Exchange Company Membership/Subscriber Fees

The primary exchange companies, RCI and Interval International, charge an annual membership fee, which you need to pay in order to take advantage of any trades/exchanges.  Some of the other exchange companies do not charge any annual fee.  

Exchange/Trade/Usage Fees

In addition to the exchange company membership fee, there are exchange or usage fees charged in order to use your timeshare.  Exchange/usage fees vary depending on if the exchange is domestic or international; made on the phone or online, or if the exchange is internal or external

Charges You May be Asked to Pay

With the exception of the “Administration Fee” which I do not like at all, these fees must be factored into the overall cost of purchasing/owing. Nearly all of them are negotiable.  It pays to ask.

Title Transfer Fee

Guest Certificate from Exchange Company

Wi-Fi

Administrative Charges

Cleaning

Gym

Pool Towel

$300 Marriott New Member Education Fee (covers usage and benefits)

Questions to Ask Before Purchase

Who is in charge of collection of the fees and when will they be assessed?

Who is the resort’s management company?

Who serves on the resort’s HOA board?

How much have the fees increased over the past five years?

Is there a cap to how much these fees can be raised annually?

If you don’t get full answers to these questions and are shown the answers in writing, not merely on a piece of paper, do not proceed with the purchase. This isn’t the only timeshare fir sale. You deserve better. 

What Swedish Death Cleaning Taught Me About Timeshare

Last week I did something called Swedish Death Cleaning. Sounds morbid but it actually was very good for me both physically and psychically. The idea is to go through your possessions, in my case I focused on carefully curated papers, and get rid of whatever you don’t want or need saving someone from having to go through piles of stuff when you die in hopes of finding something important. 

In my case, this resulted in over 25 pounds of paperwork being shredded and making a memory book of what I considered to be my most important professional accomplishments, timeshare and other. 

I discovered something really interesting and slightly unexpected. I’ve been fortunate enough to have worked for a few timeshare resorts from 2000 to about 2006. Summer Bay, Silver Lake and Celebration World Resort spring to mind. I’ve also had the opportunity to be a featured speaker at some great conferences; The Maryland Timeshare Owners Association, The National Timeshare Owners Association, DAE’s Vacation Owners Conference, The Miami Herald Travel Show, The Adventure and Luxury Travel Show in Chicago, TATOC and CRDA. 

By virtue of the fact I wrote two books and co-authored a college text, I’ve been honored with a few television appearances such as WGN and ABC in Chicago as well as CNBC. 

I’ve hosted seminars for timeshare owners and prospective timeshare owners put on by both Holiday Group and RedWeek. 

And then there were the articles that I either wrote or appeared in. (I know this is getting tedious, but hang in there, there is a point to this I promise.) These ranged from outlets that everyone knows such as The New York Times, The Chicago Tribune, the in-flight publications for Air-Tran and Alaska Airlines, WalletPop, AOL Travel, The Los Angeles Times, The Orlando Business Journal, BankRate.com, The Orlando Sentinel, The Baltimore Sun, AARP Magazine, Barron’s, and Ladies Home Journal to long forgotten or defunct publications such as Grand Magazine, Cents Magazine, Smart Traveler, Hiatus Magazine and Girlfriend Getaways. 

Lastly, there were the timeshare industry trade publications: Perspective, RCI Ventures, The Resort Trades, Sharetime and TimeSharing Today. 

Trip down memory lane complete. 

What I found fascinating is that up until a few years ago, my perspective on timeshare was mostly positive. What changed?  Why do people in the industry view me with destain? Did I change?

No, it wasn’t me that changed. It is the industry that’s changed and not for the better. Where misleading sales pitches were once the exception, they’ve become more the norm. Where once it could be said that timeshare offered vacationers cost effective accommodations, there are increasingly more and better options available. Where once timeshare resorts offered a true value proposition, now anyone can stay on property as a renter usually for less than the cost of annual maintenance fees, to say nothing of initial purchase price. Where once the idea of willing your timeshare to your children was looked at as a positive, it’s now something to be avoided due to increasing costs and the fact that it’s devolved into nothing more than a reservation system. 

And where once I held out hope that the timeshare industry would grasp the fact that consumers do not like to be sold anything but prefer to buy, I have now come to the realization that they are their own worst enemy as they stubbornly cling to the “you have to buy it today and you can’t review the contract” paradigm. 

Hey, Trustpilot-Where’s The Justice For This Timeshare Owner?

A reader recently submitted a review of a major timeshare company to the online rating site Trustpilot. While I agree with Trustpilot’s attempts to verify all submitted ratings, this exchange clearly shows bias towards the developer in my opinion. 

I’ve redacted both the developer’s and the consumer’s name for obvious reasons:

My mother was talked into buying a timeshare at REDACTED NAME Vegas. She had a timeshare via another company in Arizona. She was notified it went bankrupt and that REDACTED NAME purchased her deed from them. They claimed she owned it but because it went bankrupt, there were no points to be used and she was on the hook for continued maintenance fees to REDACTED NAME for a timeshare she could NOT use for vacations. They further claimed said maintenance fees would be passed down to her children who would be just as responsible for paying money for a timeshare that could not be used.

Long story shorter, they got her to sign a contract for $35,000 plus $2000 a year in maintenance fees -- which we are told are going to increase. This took place in August of 2018.

Recently, REDACTED NAME contacted her via mail to invite her to a group meeting so owners could air their grievances and address concerns about their business. They claimed they wanted to help. When she was there, the representative she spoke with had her file and said her REDACTED NAME sales person lied to her about the points she purchased. That she wasn't a "true" silver member and was not eligible to take vacations to the places she expected to be able to go. He talked her into purchasing an additional points package for another $15,000. This happened last week. I found out the next day and went through the roof. I had her cancel the transaction via FAX (per their instruction) -- but I don't trust them. They can claim they never received the cancellation just as they can claim they never said any of the things they said to talk my mother into purchasing this property.

At NO time did any representative at this meeting bring up the issue of AIRING GRIEVANCES of ANY KIND. My mom said they proceeded to divide up the groups, separating owners so they could deal with them one on one. NO mention of the stated reason for the meeting at any point in time. This was a fishing expedition on the part of REDACTED NAME and that fishing trip turned into a hunting trip to further victimize previous victims.

This is the very definition of theft by deceit. It is in fact a white collar crime. 

How is it this company has free reign to use lies and deception to sign their income away with such impunity? This is the very definition of theft by deceit. It is in fact a white collar crime. Where is law enforcement protecting and serving? WHERE IS JUSTICE?

Now, in my opinion and I’m sure your opinion, this is a well written, well thought out and honest review. Unfortunately Trustpilot did not think so and responded:

Thanks for reviewing REDACTED NAME on Trustpilot.

REDACTED NAME has reported your review because they don’t believe you’ve had a genuine buying or service experience. Reported reviews are temporarily moved offline.

We’d like to verify your experience so that we can put your review back online. Help us do that by sending documentation showing your buying or service experience with REDACTED NAME

All you need to do is:

1 Find your order confirmation, invoice, delivery report or proof of service with REDACTED NAME. The documents should show: the name of the business, the name of the buyer (your name), the date, and a reference number. See more here.

2 Send your documents by replying to this email. We accept forwarded emails from REDACTED NAME, screenshots of user registration/profile or similar, and pdf attachments.

Please don't send us any sensitive documents such as copies of passports, medical records, or bank account details. If your documentation does contain sensitive information, please be sure to redact or black out those parts before sending it to us.

When we receive your documentation, we’ll review it and get back to you. We won’t share your documentation but your reference number will be visible to the reviewed company. If you don’t want this information shared let us know and we’ll be happy to honor your request.

If we don't hear from you within 7 days, we’ll have to keep your review offline. We won’t delete it though, so if you send your valid documentation at a later stage we can reinstate it.

Best regards,

The consumer then provided required information and received this response:

Thank you for getting back to us and addressing your concerns. Unfortunately, we will have to keep the review offline as you didn't have an experience with REDACTED NAME you (sic) mom is the one with the experience with the company. On Trustpilot per our Guidelines (https://legal.trustpilot.com/user-guidelines) the reviewer must of had an buying and/or service experience with the company. 

To which the consumer responded:

Katherine, I’m sorry, but your statement is incorrect. My mother can’t post her experiences because she is a 73 year old woman who barely knows how to deliver an email. I speak on her behalf. 

I was there with my mother to witness the deceptive sales practices of this company.  I was there when she signed the contract after a 7 hour convoluted marathon of game playing. I was there when the sales person distracted us while my mother signed a paper not knowing it negated everything we were told by the sales person, and, contained language protecting the company from any responsibility to what we were told by the sales person. AND I have been there every step of the way since.  

Is the intent of your service to defend the rights of company who commits elder abuse? No, it is to inform the public of the practices of the company at issue. Your company is called “TRUST” pilot is it not?  How can you defend keeping accurate information about this company’s deceptive practices based on a hair splitting argument like my name isn’t on the paper? 

Please reconsider. This company is predatory in their practices. This is about preventing other victims. This is about to blow wide open. My intention is to prevent others from falling victim to their weaponization of contract law that I witnessed firsthand. 

His review was again turned down by TrustPilot to which he responded:

Katherine, just so you know, you are denying this posting based on the letter of the rules of your service. 

Every judge and first year law student knows the law is never supposed to be enforced based on the letter of its written word. It’s supposed to be enforced based on the spirit of its intent. 

The same goes for the rules of your company. 

The intent of the rules of your company is to prevent false reports from being posted. This is not the case here. I have provided documentation showing we had the experience with REDACTED NAME. That proves I did not simply make up this story. I wouldn’t have those papers without a firsthand encounter. You know it. I know it.

Please do the right thing here. If you were in my mothers position,  you would want the same consideration. Better yet, what if it happened to your mom, and you were being denied the same way you are denying me? 

It seems to me that this person’s mother was at the very least, taken advantage of by this timeshare developer. In an attempt to both vent and more importantly, warn others about this developer’s shady practices, this consumer submitted an honest review only to be turned down. 

I ask the same question he did, “Where is justice?”