BBB Warns Timeshare Owners of Exit Risks
The Better Business Bureau (BBB) is issuing a caution to timeshare owners regarding “Post Card” companies that offer services to help exit timeshare agreements. These companies, which send thousands of postcards nationwide, often promise swift and guaranteed solutions for relinquishing timeshare contracts. However, they frequently employ high-pressure sales tactics, particularly targeting older adults who may be more vulnerable to such persuasive methods. Jo Ann Deal, a spokesperson for the BBB, advises timeshare owners to approach these offers with skepticism, conduct thorough research on the companies involved, and be aware of the potential risks, as many of these services do not fulfill their promises despite charging substantial fees.
Attractive Offers Designed to Lure Owners
“Post Card” companies derive their name from the extensive postcard campaigns they execute across the United States. These postcards invite timeshare owners to attend informational sessions that often feature enticing incentives like complimentary lunches, prize giveaways, and free gas cards. While these events are marketed as casual gatherings to discuss timeshare exit strategies, the incentives are strategically used to attract owners and establish a sense of trust. Once attendees arrive, they may face intense sales pitches that push expensive and potentially ineffective services, prioritizing the company’s interests over those of the owners.
Hosting Events in Familiar Venues to Build Trust
To create an inviting and trustworthy atmosphere, “Post Card” companies typically host their sessions in hotels, restaurants, or similar public venues. These locations lend an air of legitimacy and professionalism, making attendees feel more comfortable and confident in the company’s credibility. Additionally, using well-known establishments helps attract a larger audience, especially when combined with offers of free meals or other perks. This environment encourages timeshare owners to remain open to the sales presentations, increasing the likelihood of signing up for the company’s services.
Mobility Across States to Evade Regulations
“Post Card” companies often operate in multiple states, a strategy that allows them to bypass various licensing requirements, local permits, and consumer protection laws. By frequently changing their locations, these companies can avoid regulatory scrutiny, making it difficult for authorities to track and monitor their activities.
Their sales representatives typically work on commission and may lack formal training or qualifications in timeshare law, leading to unaccountable and aggressive sales practices. This transient approach heightens the risk for unsuspecting timeshare owners who may fall victim to misleading promises.
Red Flags Raised by “Post Card” Companies
The BBB highlights several warning signs associated with “Post Card” companies offering timeshare exit services. These companies often guarantee definitive solutions for exiting timeshare agreements without clearly outlining the terms or substantiating their claims.
The BBB urges timeshare owners to exercise caution, thoroughly investigate any company they consider, and familiarize themselves with their rights, including the ability to cancel contracts under certain conditions, to avoid falling prey to scams.
Recommended Precautions Before Engaging an Exit Company
According to Jo Ann Deal, “The best way to avoid timeshare exit scams is to have an exit strategy from the start.” Before hiring a company to assist with exiting a timeshare contract, the BBB advises owners to take several precautionary steps:
- Conduct Comprehensive Research: Investigate the company’s reputation by searching for online reviews, complaints, and any history of scams.
- Review Documentation Carefully: Independently examine all paperwork to ensure that all promises and terms are documented in writing.
- Understand Cancellation Policies: Ask about contract cancellation policies and determine if there is a “cooling-off period” during which you can cancel the timeshare exit agreement without penalty.
- Consider Legitimate Alternatives: Explore exit programs offered directly by the timeshare companies, which may provide safer and more reliable options for ending your ownership.
Deal emphasizes in her interview with KNOE that legitimate timeshare companies typically offer their own exit programs, which can be a more secure first step to explore for those seeking to terminate their timeshare agreements.
Actions to Take if You Suspect a Scam by a “Post Card” Company
If you believe you have been scammed by a “Post Card” company, act quickly:
File a Complaint: Submit a detailed complaint to the BBB in the state where the event took place, including specifics such as the date, location, and any documents received during the event.
Notify Consumer Protection Agencies: Provide your complaint to local consumer protection agencies to aid in investigations and help identify patterns of fraudulent activity.
Contact the Attorney General: Reach out to your state’s Attorney General’s office to report the scam, increasing the likelihood of regulatory action against the offending company.
Final Thoughts
In an era where timeshare commitments can become burdensome, the attraction of a quick and guaranteed exit solution from a “Post Card” company is understandable. However, as highlighted by the Better Business Bureau, timeshare owners must stay alert and discerning when approached by such entities. By recognizing the red flags, conducting thorough research, and understanding their rights, owners can protect themselves from falling victim to aggressive and potentially fraudulent practices.
The BBB’s guidance serves as an essential resource in overcoming these challenges, empowering consumers to make informed decisions and seek out legitimate avenues for resolving their timeshare issues. Ultimately, prioritizing caution and due diligence can help ensure that timeshare owners achieve a satisfactory and legitimate exit from their contracts.
About Finn Law Group
With over 75 years of combined legal experience, timeshare attorneys J. Andrew Meyer and Michael D. Finn lead Finn Law Group, a national firm dedicated to consumer protection in Timeshare Law. If you are considering legal assistance with a timeshare matter, contact us at (727) 214-0700 or email us at info@finnlawgroup.com. Stay informed by following us on Twitter X.
Disclosure: This article is for informational purposes and references a recent BBB interview with KNOE.com.
