I don’t know what is worse these days, people selling timeshares, people buying timeshares or people claiming to be able to resell timeshares.
Well the FTC just recently took action against some timeshare resellers who were out to inflict pain on consumers.
I love the title for the press release from the FTC on this as well. Funny.
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At the Federal Trade Commission’s request, a federal district court has put a stop to a deceptive telemarketing operation that allegedly scammed millions of dollars from property owners hoping to sell their timeshares. The FTC charged that the ring, operating out of South Florida, conned consumers by promising that they had buyers lined up and waiting.
Only after making a hefty up-front payment did the consumers learn that there were no buyers, and that it was nearly impossible to get their money back from the defendants, many of whom have long criminal histories.
“When cash-strapped consumers are trying to sell their property, the last thing they need is to lose thousands of dollars to scam artists who promise a quick sale, but then provide no services at all,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection.
The case is part of an ongoing FTC effort to crack down on con artists who use fraud and deception to take advantage of consumers hit hard by the recent economic downturn. Many of the defrauded consumers needed to sell their timeshares to help pay their living expenses. According to the FTC, the number of complaints related to fraudulent timeshare resales has more than tripled over the past three years, as more consumers have attempted to sell their timeshares.
In this case, the defendants allegedly defrauded consumers nationwide out of millions of dollars before being shuttered by the court. They also are well known to the South Florida Better Business Bureau (BBB) which, together with the FTC and the Florida Attorney General’s Office, has received hundreds of complaints from consumers about their conduct. The BBB has given the firm, Timeshare Mega Media and Marketing Group, an F rating, the lowest rating it can give a business.
According to the FTC’s complaint, Timeshare Mega Media, two related companies, and six individuals used a telemarketing boiler room in Ft. Lauderdale, Florida. They told timeshare owners who were attempting to sell their units that a buyer was lined up and a deal had been negotiated on their behalf, but that before the sale could be completed, consumers would have to pay an up-front fee, usually $1,996, by credit card.
The FTC’s complaint charges that Timeshare Mega Media’s representatives typically claimed the fee was for sale-related costs, such as realtor fees, closing costs, title searches, or document processing. They also told consumers that this fee would be refunded at closing. In some cases, if a consumer owned an expensive timeshare, the fee could be more than $1,996, ranging up to 10 percent of the asking price. Consumers also were told that their timeshare sales would close quickly, often in as few as 30 days.
The FTC alleges that, after the consumers paid the fee, they were told to expect a contract from Timeshare Mega Media. What they received turned out to be a contract to market and advertise their timeshare, and not a sales contract. According to the FTC’s complaint, many consumers signed and returned the contract thinking it was a sales contract. Those who questioned its validity were given the run-around by the company and falsely told that a sales contract would follow. In fact, according to the agency, the company never had any timeshare buyers lined up. When consumers discovered this and demanded their money back, they found it nearly impossible to get a refund, or even get a call back.
The FTC’s complaint was filed against Timeshare Mega Media and Marketing Group, Inc., also doing business as (d/b/a) Timeshare Market Pro, Inc.; Timeshare Market Pro, Inc.; Tapia Consulting, Inc.; Joseph Crapella, also known as Joseph John Philbin; Pasquale Pappalardo; Lisa Tumminia Pappalardo; Pasqualino Agovino; Louis Tobias Duany; and Patricia A. Walker. – Source
Timeshare Mega Media and Marketing Group, Timeshare Market Pro, Tapia Consulting, Joseph Crapella, Joseph John Philbin, Pasquale Pappalardo, Lisa Tumminia Pappalardo, Pasqualino Agovino, Louis Tobias Duany, Patricia A. Walker
Timeshares have become such kryptonite that in years past non-profits would accept them as charitable donations, no more. The timeshare companies don’t want them back and they have no value. The irony is that for most every timeshare deal I look at these days from consumers they have no value and in fact are worth a negative amount because of the lingering liability.
That just gives people an opportunity to prey on consumers stuck in timeshares.
There are at least 30 more between W Palm & Ft Lauderdale. They move around alot, change names. The FTC needs to do more. This isn’t even a drop in the bucket. Nearly all of their leads have been scammed by now & they’re not buying like they used to. These companies are now using the same leads to “get their money refunded”. Another scam…. I know more details. South Florida phone rooms…
There are at least 30 more between W Palm & Ft Lauderdale. They move around alot, change names. The FTC needs to do more. This isn’t even a drop in the bucket. Nearly all of their leads have been scammed by now & they’re not buying like they used to. These companies are now using the same leads to “get their money refunded”. Another scam…. I know more details. South Florida phone rooms…
Timeshares have become such kryptonite that in years past non-profits would accept them as charitable donations, no more. The timeshare companies don’t want them back and they have no value. The irony is that for most every timeshare deal I look at these days from consumers they have no value and in fact are worth a negative amount because of the lingering liability.
That just gives people an opportunity to prey on consumers stuck in timeshares.
I am very glad to see this. These guys make most debt settlement companies look like saints. At least with the settlement sales people, there is at least a small chance the client will have a favorable outcome. With these guys it is almost zero.
Time shares are a horrible product and consumers should never buy them. I have never had a client tell me how happy they were with their time share. It is always this thing that they bought, rarely used, and now can’t even give it away for free.
From a financial standpoint. Don’t Buy Timeshares.
Think about it. If they have to fly you in for a weekend for free and give you a hard, two day pitch to convince you to buy it in the first place, how are these reseller guys going to be able to sell it by slapping it up on a website and waiting for someone to go looking for it? Don’t ever pay anyone upfront to resell your time share. Offer them 50% more in commission due after it is sold. The next sound you will usually hear is a click.
I am very glad to see this. These guys make most debt settlement companies look like saints. At least with the settlement sales people, there is at least a small chance the client will have a favorable outcome. With these guys it is almost zero.
Time shares are a horrible product and consumers should never buy them. I have never had a client tell me how happy they were with their time share. It is always this thing that they bought, rarely used, and now can’t even give it away for free.
From a financial standpoint. Don’t Buy Timeshares.
Think about it. If they have to fly you in for a weekend for free and give you a hard, two day pitch to convince you to buy it in the first place, how are these reseller guys going to be able to sell it by slapping it up on a website and waiting for someone to go looking for it? Don’t ever pay anyone upfront to resell your time share. Offer them 50% more in commission due after it is sold. The next sound you will usually hear is a click.