AARP Fraud Watch: Time-Share Resale Scam

Harrisburg, Pa. (WHTM)- Someone offering to help you sell your time share may be trying to cash in.

AARP says this is how it works, you get a call from a supposed broker who claims to have a buyer lined up and ready. They might even give you a name and phone number for the buyer, who confirms their interest in your time share. Then the scammer sends over signed purchase documents that look legitimate, asks you to provide a credit card number or make a wire transfer but the deal never closes, the scammer pockets the money, and by the time you figure it out, it is too late to get your money back and you are still stuck with the time-share.

Do's
Do ask your resort if it has a resale program, rather than relying on a cold-calling stranger to make a deal. Consumer Reports recommends checking to see if the resort imposes any restrictions, fees or other limitations on time-share sales.
Do check with the Better Business Bureau and your state’s consumer protection office to see whether a resale company has a history of complaints.
Do read the fine print. Go over a sales contract carefully to make sure it matches all the reseller’s promises. If you can, run it by an attorney. If the terms aren’t what you were led to expect, don’t sign.
Do be realistic about what you expect to make from a resale, and be skeptical of a seller who guarantees a big return.

Don'ts
Don’t agree to anything on the phone. Do a background check on the resale company before moving forward.
Don’t assume you’ll recoup your original investment, especially if you’ve owned the time-share for only a few years or it’s not in a well-known resort.
Don’t pay fees upfront. The Federal Trade Commission (FTC) recommends doing business with a reseller that collects fees only after the sale goes through.
Don’t overlook alternatives to selling, even if you’re tired of your time-share. For example, the Better Business Bureau suggests looking into exchange programs that allow you to trade with owners of time-shares in other locations.

If you think you’ve been the victim of a time-share resale scam, report it to the FTC online or by calling 877-382-4357.