Smart Transfer Alert: Beware of Fake Timeshare Deals

In recent years, the timeshare industry has grown tremendously. Although there are many current owners who are trying to get out of their timeshare contracts, many people still choose to choose this form of vacation. On the other hand, the timeshare market has also become an ideal target for many scams. As there are several people who have been the victims of these scams, the authorities are warning timeshare consumers to be aware of some of the many fake vacation clubs.

According to consumer agencies, a growing number of tourists are being targeted by bogus vacation club schemes. The Fair Trade Office added that thousands of bargain-priced luxury getaway promises are read each year, but almost all of them are scams. There are upfront fees that are virtually impossible to recoup once the promised benefits fail to materialize.

With an initial registration fee ranging from hundreds to thousands of pounds, victims are told they will be able to book five-star resort vacations and pay only two or three-star prices. So, people realize that they have fallen into a sophisticated sales trap by discovering that their membership counts for nothing when it comes to booking a vacation.

Fraudulent schemes

Susan Marks of Citizens Advice’s consumer affairs policy says that fraudulent schemes use sophisticated sales techniques to attract people. In most cases, there are representatives who work in large resorts. In some, there are scratch cards that are often used to attract tourists. They are usually promised a guaranteed prize via something like a scratch card, and this draws them to the club office to claim their prize. Once in the office, the actual sale can begin.

New laws

On the other hand, Citizens Advice suggests tourists not to sign up for anything that requires money up front.

Likewise, they are warned never to hand over the money unless they are given a written purchase agreement. And they should not withdraw if they are not offered an unconditional 14-day cooling-off period. Additionally, Citizens Advice recommends reporting issues to the OFT and business regulations.

Meanwhile, new legislation to standardize timeshare-like products will become law across Europe in 2011. According to the Timeshare Directive, long-term vacation products of less than 36 months known as Vacation Clubs or Clubs Discount travel membership will now be protected by such legislation. This law will be a real improvement for consumers who have yet to decide whether to go ahead with a deal before paying for something, rather than having to try to get the money back once it’s already been paid.