The Better Business Bureau has compiled a top 10 list of consumer scams based on complaints it collects.

Coming in number 4 on a list that includes debt relief rip-offs, work at home and job cons, is timeshare scams. The method is almost always the same. Timeshare sellers are asked to pay an upfront fee while an unscrupulous company does nothing to sell the timeshare.

Consumers who do their homework know that timeshare have little or know resale value so anyone who says they have buyers for timeshares or claim they can sell it, are likely lying.

People who own timeshares often enjoy them for a number of years but sometimes life circumstances, such as illness, death in the family, retirement or divorce alter an owner’s ability to use and enjoy it year after year. Sometimes rising maintenance fees make continued timeshare ownership cost prohibitive.

For people in those circumstances, it is important to find a company that is highly rated by the Better Business Bureau. They will work to transfer the timeshare legally and will relieve owners of the financial burden unused timeshares often bring.

July 19, 2011

The Federal Trade Commission scored a win Tuesday when a federal court temporarily shut down a telemarketer accused of conning people trying to sell their timeshares.

According to court papers, the Orlando based National Solutions, Inc. would call distressed vacation timeshare owners claiming it had buyers lined-up and ready to purchase timeshares. They would then send sellers a document that required $3,150 to secure the deal. The owners were told the money would be refunded once the sales were complete.

The FTC complaint alleges that the agreement the company sent was nothing more than a contract to advertise the property and not a sales agreement, as sellers were told. Once the timeshare owners sent back the contract with payment, they were never heard from the company again. Those who attempted to get refunds were stonewalled, according to the FTC. In addition, the timeshare owners were also told that sales were reviewed and approved by the FTC but in truth, the FTC does not review or approve timeshare sales.

National Solutions operated under nearly two dozen different names. Seven defendants were also named in the action. The court froze assets and appointed a receiver to take control of the businesses. The FTC is looking to permanently shut down the companies and is seeking reimbursement for consumers caught in the scam.

The FTC offers advice to people who need to sell their timeshares through the following website. As with all big financial transactions, it is important for consumers to do extensive research before signing any contracts.

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt185.shtm

July 14, 2011

Marriott International announced the headquarters for its new timeshare spin-off will be located in Orlando, Florida.

Marriott is the first major hotel operator to create a separate company for its timeshare division, with a separate board of directors and with exclusive focus on selling timeshares.

The new company will be known as Marriott Vacations Worldwide. Under papers filed with the Federal Trade Commission, the Marriott Vacations Worldwide will pay Marriott International $50 million a year to license the brand.

Like many real estate and tourist based industries, the timeshare business has been hammered by the recession. The Marriott timeshare division lost a half billion dollars in 2009 but reported a $67 million dollar profit last year.

The spin-off is expected to have little or no impact on timeshare owners.

July 11, 2011

Federal prosecutors are again targeting Palm Beach County, Florida telemarketers in alleged schemes to rip-off people trying to sell timeshares.

Complaints filed last week say James Michael Tomasso, Wensley Robin McFarlane and Nicholas Charles Higgins conspired to commit fraud from boiler rooms set up in Boca Raton and Boynton Beach.

Federal Prosecutors say the trio conned $3 million from numerous clients under the guise that they would sell their owners timeshares but those sales never actually took place. Feds say they operated under various names, including Euroamerica Timeshares LLC, E.A.T. Sales LLC and National Timeshare Liquidators.

These and other recent cases where prosecutors have reached plea deals point out the mine field timeshare owners step into once they decide its time to get rid of a timeshare they no longer want or use. Authorities advise people never to do business with a company that claims it has buyers waiting to purchase your timeshare. Sadly, the timeshare resale market is nearly non-existent so that in all likelihood is a bold faced lie.

Reputable companies put upfront money in escrow and don’t take payment until the transfer is complete. They offer 100% guarantees and don’t make false promises about the value of your timeshare.

Attorneys General in many states have issued warning and list tips for timeshare owners. Check out that advice and check with the Better Business Bureau before signing on the dotted line.

July 8, 2011

The Federal Trade Commission has released some alarming news about the number of complaints made by consumers regarding fraudulent timeshare resale businesses.

Over the past three years, as more and more consumers attempt to sell unwanted timeshares in a poor economy complaints have tripled, according to the Federal Trade Commission. This has led more and more states to issue consumer warnings.

Within the last couple of weeks, Connecticut Attorney General William Rubenstein’s office released information aimed at helping timeshare sellers weed out the legitimate companies from the bad ones.

“If you are a timeshare owner receiving unsolicited offers to sell your timeshare, or are unsure about who these companies are and what services they are offering, the Department of Consumer Protection has some guidance to offer,” Consumer Protection Commissioner William M. Rubenstein said.

Connecticut is part of a multi-state national task force that is sharing information about and taking action against timeshare resale companies and their illegal practices. The Department of Consumer Protection is currently conducting a multi-faceted investigation of timeshare resale companies that have allegedly been defrauding Connecticut consumers out of thousands of dollars.

While many people enjoy their timeshares for many years, if they get to the point where they are in a financial jam, they may think about selling a timeshare they no longer want or use.

With a growing number of resale scam complaints crossing his desk, West Virginia Attorney General Darrell McGraw is warning timeshare owners to beware of phony resale offers.

Complaints filed in the state of West Virginia indicate that these unscrupulous companies charge anywhere from $1200 to $2400 upfront promising to sell timeshares owners no longer want or use.

Typically the scammers send a legitimate looking contract requiring an immediate payment via credit or debit card either by mail or through a website. The companies claim the fee will be used to advertise, inspect and close on the sale.

“Do not agree to pay an advance fee in order to sell your timeshare,” Attorney General McGraw warns. “Legitimate timeshare sellers do not require an up-front fee.” The companies then use stall tactics to prevent consumers from obtaining refunds through their credit card banks. “Consumers must be diligent in disputing the charge with their credit card company within 60 days, and they must do so in writing.”