Check this list to avoid a nightmare reselling timeshare

Q: I decided to purchase a timeshare about a year ago. A decision I now regret. I tried putting it on the market, but had no luck with prospective buyers. I was contacted by a company that offered to purchase said timeshare, I just needed to pay a $2,000 upfront fee. That was half a year ago. Since then, I’ve had to pay a total of $3,000 in various extra fees to the company. Fees that were not initially in the contract, mind you. Finally, I put my foot down. I just want my money back, but the company refuses to give me a single dime. Do you have any advice on how I should proceed?

A: It’s a good thing that you refused to pay any more of those surprise fees. People have reported losing over $20,000 to scam artists while trying to sell their timeshare. Not long ago, a timeshare resale company was accused of similar business practices as described in your letter (extra/surprise fees, no refunds, etc.). The company ended up paying out over $3 million in a settlement with the Federal Trade Commission.

If you think that you have been cheated out of your end of the deal, you should file a complaint with the FTC (www.ftc.gov/complaint). You can also file a complaint with the Better Business Bureau and on Scamtracker (www.bbb.org/scamtracker/us). I cannot guarantee that doing this will get all your money back, but I believe this is your best bet. All of this being said, it’s important to note that not all timeshare resale businesses are frauds. Most are legitimate; some are accredited by the BBB.

If you are considering reselling your timeshare and are approached by a company offering to help, the BBB recommends the following:

▪ Do not agree to anything over the telephone until you have had a chance to check out the company.

▪ Ask the person to send you written materials.

▪ Ask for references, including address and phone number and contact them.

▪ Ask where the company is located and in what states it does business.

▪ Ask if the company’s salespeople are licensed to sell real estate where your timeshare is located. If so, verify this with the state licensing board.

▪ Find out if the company charges a commission. Do they handle the entire closing and provide escrow services? Do they charge an up-front listing or advertising fee? What does it cover and is it refundable?

▪ Be wary of companies charging an advance “appraisal” fee for services. Consider opting for a company that offers to sell for a fee only after the timeshare is sold.

▪ Contact the Better Business Bureau, state Attorney General’s office, and local consumer protection agencies in the state where the company is located to find out if complaints have been lodged against the company.