Timeshare Complaint #1 – Guaranteed Rental Income
The most common timeshare complaint is the promise of guaranteed rental income for timeshare weeks. Many clients are enticed into buying a timeshare, or buying a larger package than they need or can afford, because the salesperson presents the timeshare as a financial investment. The timeshare salespeople claim that the client’s timeshare weeks will be deposited into their marketing program and rented out in house. In reality, after the client has purchased and returned home, they are referred to an outside rental agency. The rental agency will charge an upfront fee to list the property. The timeshare weeks are typically never rented, and when the client tries to contact the rental agency or the timeshare resort their calls and emails are ignored.
Timeshare Complaint # 2 – Guaranteed Resale of Previously Owned Timeshare
Most vacationers who already have a timeshare membership are not interested in purchasing another membership due to the high maintenance fees involved in timeshare ownership. The timeshare salespeople are very aware of this, and as a sales tactic, they promise to resell, trade in, or do an equity exchange for the previously owned timeshare in order to subsidize the purchase of a new timeshare contract. Some organizations will create an equity exchange agreement. The client believes that the resort will take over their old timeshare, which means that they will no longer be responsible for paying the maintenance fees. Other resort refer clients to an outside resale agent. The resale agents draft up a contract stating that the sale of the other property will be completed in 90 – 120 days. Within this time period, the timeshare resort tries to offer incentives, such as discounts, if the client pays for the timeshare in full. This is because they are aware that the previously owned timeshare will not sell, but they still want to ensure that the client remits their full payment. The promised of a guaranteed resale or trade in of an old timeshare is one of the most financially detrimental timeshare complaints because the client is left buying a new membership, without the profit from the old membership, and has to pay maintenance fees on both properties.
Timeshare Complaint # 3 – False Annuity Programs
Some timeshare salespeople claim that the resort has relationships with major banks that will offer an annuity program. The timeshare salesperson claims that if the purchaser pays an additional 5% of the timeshare purchase upfront to an outside organization, the purchaser will get the benefit of the use of the timeshare, and receive the entire purchase price of the timeshare back at the end of the contract from the annuity program. This is another ploy to ask for upfront fees for a service that does not exist.
Timeshare Complaint # 4 – False claims that Maintenance Fees will not increase
Another common timeshare complaint is the verbal promise that the maintenance fees are fixed and will not increase for the life of the contract, essentially, locking in the cost of the vacation. Unfortunately, this claim is not true, and the timeshare owners find themselves responsible for maintenance fees that increase far more rapidly than the rate of inflation. The increasing costs of maintenance fees, coupled with the affordable online travel deals available today, negates any benefit of owning a timeshare. In fact, taking a vacation to a timeshare resort is often more expensive, when you factor in the flights, maintenance fees, food etc. than booking an all-inclusive deal to the same resort online.
Timeshare Complaint # 5 – Special Assessments
Increasing maintenance fees are not the only timeshare complaint that owners experience. Some timeshare resorts are also implementing special assessments every 5 years or so, which in effect, double the maintenance fee for that year. The timeshare resorts claim to be using the special assessment for special projects or to cover costs incurred by unexpected circumstances; however, most of the resorts that are imposing special assessments do not have valid reasons to do so. If you have been sent a bill for a special assessment, ask the resort to clearly outline each expenditure that it will be used for, as well as how your maintenance fees were spent. If it does not seem valid, contact G&G Timeshare Solutions for a free assessment of how we can help you to cancel your timeshare contract.