Timeshare exit scams

[andre10056]

I found this article interesting for multiple reasons:

Timeshare Exit Scammers Cheat Seniors Out of $90 Million Says FTC - Planner at Heart

In another massive timeshare exit scam, they scammed consumers—mostly older adults—out of more than $90 million. Yet another broken record tale of seniors being duped with deceptive and flat-out false claims about how to end their timeshare ownership.

planneratheart.com

One reason is that it involves a business entity (the defendant in the FTC's lawsuit) with whom tuggers might be quite familiar. They advertised available timeshares for sale on this site. I happened to have responded to one such ad and had a less than satisfactory experience which I wrote about in detail on a TUG thread. Their response: a cease and desist letter (so that shows that they were actively monitoring this site).

Let's just say I didn't respond quite in the manner that they thought I would.

But I find it interesting that these alleged scammers made quick use of a cease and desist letter. I'm wondering how many "clients" who didn't get what they thought they were getting and threatened to compain or complained, got a cease and desist letter.

I'm furthermore wondering if the defendants' attempts to sell/give away any timeshares might have been a means by which they got the "exitter" to exit all their timeshares with them, and not just the one that they may have tried to exit initially. I can see some hypothetical timeshare exit company saying, "Give us one. If we get you out of that one, you'll know we're legit and can trust us with all your timeshares".

I feel so sorry for unsuspecting people getting scammed and/or threatened.

By the way, from a page on the ftc.gov website:

"The Missouri-based scam has operated under a number of names, including Square One, Consumer Law Protection, Premier Reservations Group, Resort Transfer Group, and Timeshare Help Source. Since at least 2018, the defendants used direct mail and in person “seminars” to pitch a dizzying array of deceptive claims to pressure consumers into paying for their services."

I'm wondering if they sent the ftc a cease and desist letter. :}

 

[dioxide45]

I know this is unrelated, but I find it interesting that two different studies turn up the same percentage of people that are both happy and unhappy with timeshare. According to ARDA (the timeshare developer trade group) 85% of owners are happy with their timeshare. Yet a University of Central Florida study shows that 85% regret buying. I mention this because the article mentions the 85% that regret buying. Certainly ARDA is biased, but we don't know who funded the UCF study.

 

[rickandcindy23]

Another scam operation going down. It's good news, but how much jail time are they going to get? None, probably.

Resort Transfer Group is familiar, but none of the other company names ring a bell.

We have been warning people about this for years. It seems that so few find TUG.

 

[andre10056]

The article states, "Out of the 10 million timeshare owners in the U.S., approximately 850,000 owners are looking to get rid of their timeshares."

That's 850,000 out of 10,000,000 which is only 8.5% which suggests that 91.5% are elated with their timeshare ownership.

Only 8.5% want out of their timeshares???!!! I'll go so far as to question even the UCentral Florida estimate of 85% as I believe that it would be more than that.

But, of course, there are different levels of disappointment. Some experience non-stop anguish and worry about owning their timeshares (who are therefore ripe to be scammed). Some recognize there's little they can do about it and try to make the best of it. Some may, indeed, be happy NOW after prior years of disappointment, somehow getting out of those timeshares, and ultimately using their experience and knowledge to get into something acceptable (usually after benefitting from someone else's anguish a la buying a foreclosure property).

I believe if there were a law passed in Congress whereby all timeshare owners could turn in their timeshares and immediately end their ownerships and annual maintenance fees, a HUGE percentage would surrender some or all of their timeshares.

 

[kanerf]

First you get looped into to buying a sub-par timeshare product and then you get preyed on by these exit companies in order to get rid of it. Just do your due diligence and read up on any timeshare before you attend a sales meeting.

 

[andre10056]

Resort Transfer Group is familiar, but none of the other company names ring a bell.

Apparently, all the same company.

 

[dioxide45]

The article states, "Out of the 10 million timeshare owners in the U.S., approximately 850,000 owners are looking to get rid of their timeshares."

That's 850,000 out of 10,000,000 which is only 8.5% which suggests that 91.5% are elated with their timeshare ownership.

Only 8.5% want out of their timeshares???!!! I'll go so far as to question even the UCentral Florida estimate of 85% as I believe that it would be more than that.

Yeah, my math was bad on that. But it still doesn't change the context of my post. There is a UCF survey that indicates 85% regret buying their timeshare.

I am not sure that 85% of owners want out of their timeshare. Many owners love using their timeshare.

 

[dioxide45]

First you get looped into to buying a sub-par timeshare product and then you get preyed on by these exit companies in order to get rid of it. Just do your due diligence and read up on any timeshare before you attend a sales meeting.

That isn't how the sale or business model even works...

Of course, it is all buyer beware.

 

[TUGBrian]

Robert Clements, vice president of regulatory affairs at ARDA-ROC.

wasnt even aware there was a "regulatory affairs" department....much less enough staff to warrant executive positions within it.

they clearly dont do a whole lot given ARDA still actively promotes upfront fee resale companies.

 

[andre10056]

I think the University of Florida (obviously impartial) estimate that 85% want out is a tad more accurate than ARDA's estimate that 85% love every aspect of their timeshares. Indeed, any entity in Florida might better recognize timeshare owners' desperation in that its state legislature has passed laws that allow people to get foreclosed upon without the resort having any ability to collect a deficiency judgment. I think the details of that law necessitates that you NOT object to the foreclosure.

That's my understanding and not any legal advice. Please contact an attorney, and preferably a Florida attorney with knowledge of timeshare foreclosures, if any such strategy to end your Florida timeshare purchase bills plus maintenance fees might work for you.

But it shows you the extent to which Florida timeshare buyers have complained.

 

[TUGBrian]

id imagine that number varies wildly based on who you ask, and how you phrase the question.

ask 100 westgate owners who bought within the last 5 years....

vs

100 dvc owners who have owned for 10y or more?

 

[dioxide45]

I think the University of Florida (obviously impartial) estimate that 85% want out is a tad more accurate than ARDA's estimate that 85% love every aspect of their timeshares. Indeed, any entity in Florida might better recognize timeshare owners' desperation in that its state legislature has passed laws that allow people to get foreclosed upon without the resort having any ability to collect a deficiency judgment. I think the details of that law necessitates that you NOT object to the foreclosure.

The impartiality can't be gauged without knowing who funded the study or as Brian asks, how the study was actually done. Deficiency and recourse varies state by state. So best to know the state laws from where the timeshare is located.

 

[LannyPC]

The article states, "Out of the 10 million timeshare owners in the U.S., approximately 850,000 owners are looking to get rid of their timeshares."

How exactly do they know this? Did they ask all 10 million owners? If not (which I highly doubt they did), then no one can really put any stock into the above-quoted statistic.

 

[dioxide45]

How exactly do they know this? Did they ask all 10 million owners? If not (which I highly doubt they did), then no one can really put any stock into the above-quoted statistic.

They use statistical sampling, kinda like political polls. There would be a margin of error in any poll

 

[andre10056]

They use statistical sampling, kinda like political polls. There would be a margin of error in any poll

The author of the article didn't cite any polling that was allegedly done. Seems like the "statistic" was of the "figment of her imagination" variety.

 

[RX8]

Partners George Reed and Christopher Carroll are related to exit company Square One too. Both George and Christopher share another distinction - they are both child porn felons. Finally, if their so called exit business scam wasn’t enough, they have also been charged with $1.6M in PPP fraud. Such good humans.

DOJ files suit against another Upfront Fee Exit Scammer - Square One Development

Some great news today as we are very happy to see yet another upfront fee exit company scammer be taken to task in federal court after stealing tens of millions from victims...

tugbbs.com

 

[amycurl]

And, apparently, pretty incompetent criminals, if they keep getting caught for all of this.


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