WASHINGTON, June 7, 2019 – The American Resort
Development Association — Resort Owner’s Coalition (ARDA-ROC), representing over
1.5 million timeshare owners, recommends that owners read the full
report that the Better
Business Bureau of Eastern & Southwest Missouri & Southern Illinois issued
on June 6, 2019, to better understand the unscrupulous and deceptive practices in
the timeshare exit industry. The report cites 700 complaints from 46 states and
millions of dollars of losses to consumers.
After issuing several consumer warnings over the past
two years about the timeshare exit industry, the Missouri BBB released its
in-depth study on the dishonest practices of the timeshare exit industry in
Springfield, MO and the substantial harm that many of those exit companies are
causing consumers. The study revealed that “Consumers across the U.S., many of
them senior citizens and many on fixed incomes, are falling victim to timeshare
exit companies at an alarming rate.”
“Despite knowing that the consumers were older and in
difficult financial situations, the timeshare exit companies examined by the
BBB took advantage of them by charging large upfront fees for services they
knew they couldn’t deliver,” said VP of Regulatory Affairs and General Counsel
of ARDA, Robert Clements. “The losses that consumers are suffering because of
the misrepresentations and fraud of many of these exit companies is staggering.
Most of the 100% money-back guarantees are worthless,” continued Clements.
In its study, the “BBB urges local law enforcement
officials, attorney generals’ offices across the U.S., the Federal Trade
Commission (FTC) and the Justice Department to investigate and pursue timeshare
exit companies that participate in fraudulent activities.” Clements noted that
ARDA-ROC and the industry have worked tirelessly to warn consumers about fraud
in the exit industry. “With the help of law enforcement, Attorneys General and
the Federal Trade Commission, we believe criminal actions in the exit industry can
be stopped. ARDA-ROC and the industry are currently working with and will
continue to work with these agencies to go after these individuals and
companies to protect consumers,” said Clements.
The timeshare industry, which has over nine million owners,
and generates over 540,000 jobs and $10.8 billion in
federal, state and local taxes in the U.S., has become a target for
unscrupulous individuals and companies. As a result, the industry has committed
to better communicating with owners who want to understand safe timeshare
exit options, often directly through
their developer or property manager, which may be available for exiting their
product. This information can be found at www.responsibleexit.com
Among the red flags of exit and resale scams for timeshare
owners to be aware of are:
- Calls or emails claiming to have an
"interested buyer" for a timeshare;
- Caller claiming to be a representative of
ARDA or ARDA-ROC. Fact:
ARDA and ARDA-ROC only responds to inquiries from owners after an inbound
request – there are absolutely no unsolicited calls, emails or
communications;
- A company promises to modify, cancel or
transfer an owner's timeshare for a large upfront fee;
- A company requests an upfront fee, or the
wire transfer of money for a "service," "tax" or other
"requirement" for the sale or transfer to be completed;
- If an offer sounds too good to be true,
it likely is.
Owners who believe they have been unfairly taken advantage
of or defrauded by an exit company should contact their state’s Attorney
General (ConsumerResources.org), the Attorney General in the state where the business is
located, their local BBB office or local law enforcement. For additional help contacting these
resources, consumers can contact the ARDA-ROC Consumer Support Team at
1-855-939-1515.
For more information on options for exiting timeshare, visit
www.responsibleexit.com and www.ardaroc.org.
The ARDA-Resort Owners’
Coalition (ARDA-ROC) is a 501(c)4 non-profit entity funded by over 1.5 million
individual timeshare owner’s voluntary contributions. ROC is dedicated to
preserving, protecting, and enhancing vacation ownership through smart policy
and sensible regulation. We advocate for local, state, and federal policies
that enable the vacation ownership industry to thrive and provide consumers
with an enriched vacation ownership experience. For more information,
visit www.ardaroc.org.