ARDA-ROC Pushes for Resale Legislation in South Carolina
Legitimate companies in the secondary market provide timeshare owners with assistance in exiting their vacation ownership. Unfortunately, the secondary market also allows for some fraudulent companies to prey on timeshare owners’ interests. Often by using aggressive and misleading telemarketing and seminar sales techniques, these companies offer to help timeshare owners to sell or transfer their ownership, but instead defraud those owners out of large sums of money for services that were never rendered. And in most cases, no contract or description of services are provided and a payment is required in advance. The actions by these companies not only hurt the timeshare owner, but also puts a burden on owners’ associations through uncollectible debt.
ARDA-ROC has renewed its efforts to pass legislation for the protection of timeshare owners in the secondary market in South Carolina. Bill HB 3647 addresses the deceptive business practices by fraudulent companies in the secondary market.
A secondary market with a lot of fraudulent activity burdens timeshare owners and owners’ associations, as well as takes credibility away from the market. Timeshare owners looking to sell or exit their ownership are susceptible to fraudulent companies. Owners that fall victim to these companies are defrauded out of thousands of dollars for services that were never completed and are still responsible for all unpaid fees and ownership obligations. In many cases, the owner is no longer able to make payments leaving the remaining timeshare association members with momentous fees and taxes that eventually become unpaid and uncollectible. Delinquencies, bad debt, and added expenses can reach insurmountable levels that eventually lead an association to bankruptcy.
Position/Call to Action
ARDA-ROC continuously works to introduce or pass pro-consumer legislation that protects owners from falling victim to scams.
Bill HB3647 was introduced and referred to the House Labor Commerce & Industry Committee on February 2, 2017.