Top Ten Myths Stated In Timeshare Presentations:
In the last eight years, we have assisted a wide variety of clientele get out of their timeshare contracts. Although our clients’ timeshare presentation stories differ, the myths and over-reaching assurances are always the same. Here are the top ten statements made at timeshare presentations (and my responses) we hear at our law firm during our initial consultations:
10. “The maintence fees generally stay the same and rarely go up.”
-In my legal practice I have never seen maintence fees go down. They without fail always go up even if you’ve owned the timeshare for several years.
9. “Booking your room is extremely easy. We rarely have blackout dates.
-The folks that book you for the timeshare presentation are a lot easier to get a hold of then the actual people that book your room.
8. “We know the 15-19% interest rate is expensive but your credit union will easily refinance the loan.”
-Your credit union will most likely not finance an “asset” when you buy points and “own” a room with tens of thousands of other people
7. “The presentation will only last 90 minutes”
-Usually our clients tell us the presentation ends up lasting over three hours at which point they are willing to sign anything for any price.
6. “You will be able to resell or sublet the room to others and potentially make a profit every year.”
-Do the math first on how much your maintence fees were for the year plus the total payments made for the year on the timeshare contract. If you’ve had the timeshare for more than five years, ask yourself how many years you’ve actually rented your timeshare to others?
5. “Buying a timeshare is the best real estate investment you can make for your family.”
-Do the math and then go on a legitimate travel website to see how much rooms go for during a week long vacation
4. “If you join a third party “travel club” you can bank your points and go to other destination.
-Most of the time to join this “club” it costs hundreds of dollars more.
3. “You can redeem your free trip with this voucher by calling this number”-Most of the time the number to call doesn’t work or you are then asked to upgrade the gift by paying more money.
2. “This is a great asset to pass on to your children and heirs.”
-The only reason why this statement seems to be made is so your heirs can take on this debt in perpetuity. Talk to a Wills and Trust attorney about this.
1. “If for some reason you want to change your mind about this timeshare contract or want to cancel, you have a legal right to cancel it within a state mandated timeframe.
-Unfortunately if timeshare reps told you about this legal right; most people would exercise this clause right after they walk out of a high pressure timeshare sales pitch. Most of the time this statement is buried deep in the paperwork that most people don’t take the time to read.