Fraudsters target timeshare owners as more than £7 million of losses are reported to Action Fraud

Fake Timeshare Exit Plans 

Several investors have been contacted by bogus firms offering attractive deals to get higher compensation/profits through property investment. Many are offering early exit on timeshare deals only to gain the fee associated with the transaction, and they may stop responding to emails once the funds (fees) are transferred into their account.

The UK authorities warned people of bogus lodging schemes, fake vaccine passports, and other social media projects offered during relaxations in the lockdowns when most travellers are looking to grab a rock-bottom deal in holiday packages or real estate. 

How Do The Scammers Work?

The protection against infections offered by vaccination programs and relaxation in travel regulations created long-awaited opportunities for eager travellers.

However, the regulatory bodies warned people of the increasing incidents of airline travel broker calls from spoofed numbers and emails from legitimate websites offering low-cost travel – hotels, rental cars and other products. 

The spammers sell hotel stays at a heavily discounted rate and call buyers to access the bank or personal data. In the last year, people lost to travel timeshare and holiday packages, and even now, they are signing up for offers with such risks.

Most such offers promise refunds through the safe exit on the timeshare, and in most cases, people believe an illegitimate institution to be a reputable organisation and lose money. 

The victims who spend on timeshare get a call from an unknown firm that offers an exit strategy to reclaim the money. The scammer knows of the investment and the related details, and they ask for a fee to cover the legal and maintenance costs to provide the exit plan. 

The dealers say they have a license and may offer tools to check the details and reports related to the project. In addition, they offer limited-time offers where you can claim a refund through a well-defined resale or exit scheme.

But once the funds are transferred, they do not respond. Instead, they may call you on behalf of the government to tell you have been scammed, and they can help get back the invested money. Then, they seek further fund transfers to file a lawsuit against the unidentified firm. 

What Are Timeshare Deals?

Timeshare provides shared ownership of a holiday resort, and many buyers invest in the collective schemes as it offers opportunities in different properties like apartments, resorts and hotels. The schemes are based on shared deeded contracts that divide the ownership, where all who have bought it can use it for the designated duration. 

The right to use divides the ownership between the people involved in the timeshare, allowing one owner a certain number of years to use the property. However, one cannot sell it, and the contract does not provide direct ownership rights.  

So, people who own a resort through timeshare can spend their time every year, depending on the agreement, and you can get discounts on dining or shopping at such resorts. 

It is not considered ideal ownership as one may find it difficult to get an exit (buyer), and the sale cost & taxation remain unclear and complex. Buyers have to hire experts to resolve legal and contractual issues.    

How To Protect Yourself?

• Always check the credentials of the firm offering, contacting you out of the blue. Check their phone numbers with legitimate sites and gain information about the recovery fraud associated with the exit options offered by such firms.

• They call or send emails from unknown companies to offer profitable deals on timeshare exit plans.

• Such businesses are unauthorised/unlicensed, and the buyer enters the trap to spend money on bogus projects.

• They ask for annual maintenance fees, where you spend a hefty amount on the resort's maintenance, which you can spend on any hotel you choose anywhere.

• You should be alerted to the calls from the government that offer help even before you report the scam. However, no government or consumer protection calls customers to help them in exchange for money.

• If you transfer money through a debit or credit card, cancel immediately. 

• If they call as a follow-up for the previous loss, ask how they found you and seek protection from local regulatory agencies against the bogus firms that hack the buyers' information.