The Federal Trade Commission (FTC), America’s consumer protection agency, has issued a comprehensive warning about the timeshare industry’s pitfalls and the many scams that target both buyers and owners. This crucial guide, available on the FTC website, serves as a powerful reminder of the risks involved.
For timeshare owners seeking a way out, the FTC’s advice isn’t just a list of warnings it’s a roadmap to finding a legitimate solution and avoiding another costly mistake.
The Problem Starts at the Sales Presentation
The FTC’s article opens with a detailed breakdown of the high-pressure tactics used during sales presentations. The entire atmosphere is designed to wear you down and get you to sign on the spot. The FTC warns against these common methods:
- The “Now or Never” Lie: Promoters will tell you the offer is only good for today to force you into a quick decision.
- The Exhaustion Tactic: They hope that by making you wait for hours, you’ll be so tired you’ll sign anything just to leave.
- The Promise of “Free Prizes”: The free vacation or prize is often just a lure to get you in the door.
The FTC’s advice is clear: “Don’t act quickly or under pressure.” They urge you to take all paperwork home and review it on your own or with a trusted advisor. This is the first, most crucial step to avoiding a timeshare purchase you will later regret.
The Two Biggest Threats to Timeshare Owners: Resale and Exit Scams
Once you own a timeshare, your problems don’t end. In fact, they can get worse. The FTC dedicates entire sections to detailing the two most common types of scams that target timeshare owners.
- Resale Scams: These are companies that promise to sell your timeshare for a high price in a “hot market.” The FTC states these are lies, and a major red flag is when they demand a large upfront fee for advertising or listing services. The FTC is unequivocal: “Anyone who guarantees a sale or big returns is a scammer.”
- Timeshare Exit Scams: These scams, often initiated by unsolicited calls, “guarantee” they can cancel your contract. They demand large, up-front fees and might even instruct you to stop paying your mortgage or fees—a move that can severely damage your credit.
- The FTC warns that once they have your money, they often do nothing, or simply send a letter you could have sent yourself.
A Legitimate Approach: How Lonestar Transfer Aligns with FTC Advice
The FTC’s guidance is not just a list of things to avoid; it’s a prescription for what a legitimate solution should look like. A reputable timeshare exit company adheres to these principles:
- Do Your Research: The FTC advises you to “search online for the company’s name, plus the words ‘scam’ or ‘complaint.'” A trustworthy company will have a transparent track record and a clear reputation with organizations like the Better Business Bureau.
- Get Everything in Writing: The FTC stresses your right to get all promises and terms in writing. A legitimate timeshare exit company provides a clear, detailed contract that outlines the services they will perform, the fees, and the timeline. There are no hidden charges.
- Avoid Upfront Fee Scams: The FTC’s biggest warning is about paying for a “guaranteed” outcome upfront. Reputable services, on the other hand, often use escrow accounts, so your payment is held securely and is only released after a successful exit.
- Acknowledge Your Legal Rights: A legitimate exit company understands the law. They don’t tell you to recklessly stop paying. Instead, they develop a strategic plan based on legal and contractual leverage to achieve a safe and permanent exit, protecting your credit in the process.
The FTC’s warnings serve as a vital wake-up call for anyone in the timeshare industry. While the landscape may be full of bad actors, a legitimate path to timeshare freedom is available.
By heeding the FTC’s advice and choosing a reputable partner committed to transparency and results, you can finally put your timeshare nightmare behind you.
