Over the past several years I’ve written about the nightmares that timeshare owners lived through, both when first purchasing — often under physical and mental duress — and then when attempting to get themselves out of their contracts.
I never said, “Don’t ever buy a timeshare!”
But no more. I now believe that because of the nature of timeshare contracts — and sales practices — they are the most dangerous purchase anyone can make. I urge federal action to nullify provisions in existing contracts that keep buyers on the hook for thousands of dollars in yearly fees glued to a contract they can’t walk away from — even after years of paying for something they no longer use or are able to use.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Great Vacation! We’ll All Come Back Here Every Year
Picture yourself on vacation with your family in Florida, Las Vegas, Cabo San Lucas, Mexico or other tourist destinations, staying in a spacious condominium-type unit in a beautiful resort.
It truly is lovely, you are all having the time of your lives, and are told, “For a one-time payment (which we can finance) of $15,000, plus modest yearly maintenance fees, you will have the right to come back, with your family, year after year.”
It would be far cheaper to pay as you go, but you don’t do the math, nor do you run this decision by your accountant or lawyer as you are convinced of how economical a decision it is.
Maybe for a few years your family uses the property, and then the kids grow up and there are no more family vacations.
Or your wife gets cancer.
But the yearly maintenance bills keep on coming, first hundreds, and then thousands of dollars out the window.
As is the case with every person who has contacted this column, after asking to be let out of the contract, their request, “Please, just take the thing back!” is refused.
The singular, diabolical feature of timeshare contracts is that they last in perpetuity. The contract permits no way out. And unless your heirs reject the inheritance, they will also be burdened with this monstrosity!
It is the only such contract like this I have ever seen. And timeshares — because of maintenance fees — are almost impossible to sell. You will find them offered online for one dollar!
‘We Have a Buyer for Your Mexican Timeshare’
It’s no wonder that people get excited when someone offers to buy their timeshare from them. But be very careful, because that proposition can be fraught with danger as well.
In 2017, Joe Corriveau of Lynchburg, Va., purchased a timeshare at the Villa del Palmar in Cancun, Mexico, for slightly over $14,000.
In early March of this year, he received a $25,000 offer from an organization calling itself Travel Pirates Mexico to buy it, and a few days later he was contacted by the Eric H. Anderson Law Group. In reality, there was no buyer, only an appeal to greed, and “sellers” are required to wire thousands of dollars for various fees for what is a nonexistent purchase.
“I researched the Eric H. Anderson Law Group based out of San Jose, Calif.,” Corriveau wrote me. “Their website is very professional looking, but I could not find the actual Eric H. Anderson in San Jose, Calif. I only found him in Palo Alto, Calif., but could not locate a phone number. I came across your article online ‘Beware of the Mexican timeshare resale scam’ and called you.”
His research led to the discovery of a new Mexican timeshare resale scam, which became obvious when, on a conference call with him, I tried to reach attorney Eric Anderson. Coming on the line, was a nasty sounding guy who claimed to be an attorney, yet he would provide no name or other identifying information and when learning that I am a journalist researching Mexican timeshare scams, he hung up!
My calls to the “Eric Anderson Law Group” yielded 30 minutes on hold, and a refusal to connect me with anyone. Further research showed that Anderson was supposedly working for the Baker McKenzie law firm in Palo Alto, but they had never heard of him. The California State Bar shows such an attorney, but no telephone number is listed.
U.S. Attorney Names Ripped Off
According to Scott Morse, chief operating officer of Rockford, Ill.-based Resort Release, a BBB-accredited company that for years has helped to get people out of timeshares:
“This scam has been refined over many years. They rip off the name of a real U.S. attorney, and create a fake website. The average person would have no idea how to quickly spot the scam, so I applaud your reader’s intuition for sensing that something was just not right.”
Morse is a great detective and discovered:
- The images on the firm’s website were stolen from a law firm in North Carolina.
- The website was set up on March 3, 2019, making it, literally, just a few days old.
- The footer of the website stated, "Anderson Law Group, Inc." yet it's a "PC" (Professional Corporation.) That's a small detail, but one a lawyer would never get wrong.
Morse provides this advice to anyone contacted by these cons:
“These guys are the worst of the worst. Don't respond to them, don't call them, don't answer them. ... Block their number with your telephone provider. If you have provided them ANY banking information — change it immediately.”
Final Words to Anyone Tempted by Timeshare Vacation Deals
If you are wondering if there is anything redeeming about timeshares, there is indeed. The big players in this industry woo potential buyers to their properties by offering a “Vacation Package,” which is usually a three-day/four-night stay at a huge discount.
The catch is a requirement to sit through their “90-minute sales presentation,” which typically feels more like 90 years!
These high-pressure sales events are conducted by some of the slickest salespeople — I was about to say con artists, but that wouldn’t be nice — you’ll ever encounter, so just pretend you are a 2-year-old and only say ‘No!’ when pushed to buy. You are free to walk out of the sales room after going through the presentation, and do not hesitate if the pressure becomes too much.
If couples are strong enough and can tolerate being in the company of morally bankrupt people who will tell you anything — who will lie with a lovely, sincere smile — then go for it and enjoy an inexpensive get-away, in some of the nicest vacation properties, all over North America.
But if you can’t say no, feel guilty when a long, sad face almost starts to cry when you refuse to sign this grotesque real estate contract, then stay away! I hope that the Federal Trade Commission or some U.S. senator will propose legislation that outlaws those sections of timeshare contracts that are simply unconscionable.
-
Investing for Charitable Giving: Discipline Reaps RewardsConsider doing nothing when markets get volatile, rather than shifting your charitable investing strategy in the moment.
-
Feel Free to Disagree, But Here's How to Bridge DifferencesRather than remaining at odds with those who disagree with you or simply shutting them down, here's how to lower the temperature.
-
Five Year-End Strategies You Can't Afford to MissInstead of making New Year's resolutions, consider making some money moves that could help save you big bucks on your taxes.
-
Buying an Insurance Policy: Three Ways to Do ItYou can buy an insurance policy through an insurance agent or broker or on the internet. Which way works best for you?
-
Your Loved One Fell for a Romance Scam: What Not to DoConfronting them probably won't work, but asking them some key questions and urging them to take certain actions could.
-
Do You Feel Like Somebody's Watching You? It's Your CarWhat's worse, you gave your vehicle manufacturer permission to watch you — no matter what you're doing. What are the car companies doing with that information?
-
The Best Ways to Use Your Year-End Bonus (and the Worst)'National Lampoon's Christmas Vacation' shouldn't be anyone's go-to for financial advice, but it does remind us how not to spend a holiday bonus.
-
Never Talk About Money? For Women, That Can Spell DisasterHow can you plan for retirement when your husband holds the purse strings and talking about money is taboo? Help is at hand for this common problem for women.
