The Tell-Tale Signs You Should Look For To Avoid A Timeshare Scam

Timeshare scams are nothing new; they’ve been around for a long, long time and were at their height in the 1980s and 1990s. This type of scam is still as prevalent today as they were 20 or 30 years ago. In March this year, a timeshare scam in London resulted in prison sentences for the couple involved.

Which? carried out a survey in April 2021 that discovered a 33% increase in scams in England, Wales and Northern Ireland to 413,553. So, how can you avoid timeshare selling scams?

What Is A Timeshare Selling Scam?

Timeshares can be structured in various ways and buyers can purchase a timeshare in weeks, i.e. they have access to the property or resort for a number of specific or floating weeks each year, or by points which are used as ‘currency’ for booking holidays. The higher the number of points, the more choice and availability there is for the holidaymaker.

Many legitimate timeshares exist, and their owners are very happy with their agreement. However, timeshares are open to fraud and leave people losing out on their agreed time at their property, sales practices that are decidedly suspect, such as being charged annual maintenance fees and can be left with a timeshare that they can’t sell on, or back to the timeshare company, and being conned into paying upfront fees to negotiate a sale.

But timeshare selling scams also come in the form of fake listings for accommodation, fake sales and even reviews that are not true. Today’s timeshare scammers are getting cleverer and it’s becoming harder to spot the scams.

The Signs Of Spotting A Timeshare Selling Scam

A timeshare broker, agent, or company may appear completely honest and genuine. They often have a professional website and branding, and speak in a way that is convincing and knowledgeable but hides the illegitimacy of their operation.  But there are several typical signs that can tell you the ‘timeshare opportunity of a lifetime you are being offered is not all it seems.

These are the signs you should be aware of when talking to any timeshare representative:

• If they’re offering a guaranteed return without any risk, or very little, it’s highly unlikely to be true.
• When you ask for evidence, statistics, or ‘concrete proof’, the representative is dismissive or ends the conversation.
• If offered an investment, check with the regulatory body that the investment fund is registered; if it’s not, don’t invest.
• If you ask for details of the investment and its strategy, and you are told that it is ‘too complex, a ‘secret formula’ or told you wouldn’t understand how it works, it’s because there is no investment fund or strategy.
• If they avoid questions about the purchase price or don’t tell you the exact price, it’s a scam.
• If there is no paperwork or official documentation, there is no investment.
• If you ask about getting your money out of the fund or selling the property back to them within a ‘cooling-off period, or at any other time, walk away.

Most timeshare scams are considered a ‘hard sell’ approach; some even go to the lengths of inviting potential investors to lunch with free food and drink (or accommodation!) to persuade them to sign a contract that they don’t necessarily understand or aren’t given time to read through in detail.

The most overriding piece of advice to take away with you is that if it sounds too good to be true, it probably is!