Jan. 28, 2012 – This past week, a Colorado representative introduced new legislation in hopes of cutting down on timeshare resale scams. The bill, HB-1116 “Concerning Trade Practices Related to Timeshare Resale Transactions” was brought about by Representative Carole Murray and is very similar to the Florida timeshare bill. However, unlike similar bills it aims to specifically benefit the consumer by regulating timeshare relief companies.
The bill has three main parts that it hopes will deter fraudulent practices by timeshare resale companies and protect timeshare owners who are trying to get rid of their timeshare properties. It forces companies to disclose their requirements for “timeshare resale transfer agreements, allows customers to opt out of the agreement under Colorado’s 5-day cancellation policy, and bans upfront fees – customers are only required to pay after the company provides its services. While this provides obvious benefits to consumers, resorts and timeshare resale companies are concerned about the complications this may impose on their ability to collect fees from people who are trying to sell their timeshare, though it also aims to protect resorts and developers from fraud as well and will allow legitimate companies to continue with business as usual and eliminate some of the fraudulent competition.
However, it is important to realize that the only real way to avoid timeshare resale scams is to do your research before you agree to begin working with a company and to only use trusted resources when trying to find a timeshare resale company. If they want you to pay a lot of money up front or refuse to release the terms of their agreement before you agree to commit is a dead giveaway that you are probably working with a scam company and it is best that you walk away before they cause any serious damage to your bank account.
About Donna Connelly
