Bogus Buyers
If you own Timeshare, it's likely you're no stranger to that chirpy voice at the end of the phone saying they have found a buyer for your Timeshare who is prepared to pay far more for it than you did. We reveal the latest shady scheme so you don't fall victim to the resale scammers.
- Who is targeted?
- What is their line of attack?
- Then what happens?
- What's the problem?
- What action is being taken against them?
Who is targeted?
The tricksters target their public by taking on the guise of an apparently reputable company, under a variety of pretexts - but ultimately their aim is to defraud you of your money.
They are no amateurs when it comes to extracting large sums of money from Timeshare owners struggling under the effects of the recession. Preying on those with the most at stake, their con is all the more shocking.
What is their line of attack?
More often than not, the scam begins with a "cold call" by a seemingly professional caller who is delighted to inform you that they know of a corporate buyer or a wealthy client who is willing to pay an impressive amount of money for your Timeshare - up to two or three times its original price.
The unsuspecting victim is then given details of the bogus company's glossy website, perhaps some other marketing material and a "contract" - all tools of trickery to build up credibility in the consumer's mind before they unwittingly fall headlong into the scam. Turning up the pressure on their victims, the fraudsters request payments to cover a range of fictitious costs - such as tax expenses, legal fees, security bonds, registration costs or administration fees - which can all add up to a substantial outlay, usually between £500 and £1,500.
Then what happens?
This depends on the nature of the fraudulent resale company. Some simply disappear without trace, while other more sophisticated outfits move to the next stage of the scam and insist that the seller produce a particular type of tax form, which is allegedly an essential requirement of the sale. However, the form is entirely non-existent so the seller is of course unable to obtain such a document - the perfect excuse for the resale scam company to deny any obligation to complete the sale.
Other fraudsters will go even further in their efforts to swindle owners out of their cash. With an upfront fee safely in the bank, they will tell the unsuspecting seller that unfortunately their "buyer" has turned down the deal - but not to worry as they have another buyer lined up, who is keen to purchase their Timeshare and wants to meet in person to discuss the deal.
What's the problem?
There is a catch to all of this. An episode of BBC Watchdog broadcast on November 17th 2008 revealed a strong link between these resale scammers and fraudulent Holiday Pack companies. The couple who appeared on the programme had paid out almost £1,000 in upfront fees after being contacted by a telemarketer who claimed they could sell their Timeshare.
Several weeks later, the couple was informed that their prospective buyer was a corporate client and they would need to fly to Spain to meet the buyer and secure the deal. Added to their initial payout, they then had to purchase flights to Spain to meet their buyer.
Unfortunately, when they arrived in Spain the person they met was not a potential buyer at all, but a salesman for a dubious Holiday Pack. Far from being interested in purchasing their Timeshare, his only intention was to try and sell his product to the couple for an extra £4,500. What at first appeared to be a lifeline for this couple desperate to sell their Timeshare became a nightmare situation - where the only winner was the bogus resale company.
What action is being taken against them?
The Office of Fair Trading is working with the Spanish authorities to help stamp out this fraud. In a series of guidelines to help protect consumers from these devious fraudsters, they recommend caution if approached by a company that:
- demands an upfront administration fee or other such payment for VAT, land registry or insurance charges
- suggests an improbable purchase price which is often higher than the original price
- claims that they have a buyer, or a "corporate buyer" for your Timeshare ready and waiting to hear from you
- says you will need to travel abroad to finalise a sale
If you are looking to sell your Timeshare there are legitimate, reputable companies who can help you. Always seek advice and check out the company before you enter into any agreement or make any payments. A good rule of thumb is to check that they are members of the RDO (Resort Development Organisation) formerly known as the OTE (Organisation for Timeshare in Europe) - if not, they are best avoided.
