PerryM
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The FTC has a new timeshare brochure, link: http://www.ftc.gov/bcp/conline/pubs/homes/resales.htm
Hopefully the FTC and ARDA (Link: http://www.arda.org//AM/Template.cfm?Section=Home) will make this a mandatory brochure that MUST be handed out at every timeshare sales presentation.
(Can you imagine the panic setting in at the developers if the truth about timeshares ever got out – like what’s in this brochure?)
Here are some quotes that caught my eye:
In calculating the total cost of a timeshare or vacation plan, include mortgage payments and expenses, like travel costs, annual maintenance fees and taxes, closing costs, broker commissions, and finance charges. Maintenance fees can rise at rates that equal or exceed inflation, so ask whether your plan has a fee cap. You must pay fees and taxes, regardless of whether you use the unit.
Calculating the total cost of the timeshare, including MF, interest payments, taxes? When was the last time the salesrep brought up those topics? I must have missed that part of the spiel in the 50+ sales presentations we’ve now been on.
To help evaluate the purchase, compare these costs with the cost of renting similar accommodations with similar amenities in the same location for the same time period. If you determine that purchasing a timeshare or vacation plan makes sense, comparison shopping is your next step.
Compare timeshares to renting? Why that’s exactly what the salesrep does right off the bat – you know – “How much are you paying at the flee-bag hotel you’re now staying at”. You mean that we are supposed to add up all the costs, including the 50% fat that is lost immediately from the sales price and compare that to renting the same exact unit from the developer or Orbitz?
Don’t act on impulse or under pressure. Purchase incentives may be offered while you are touring or staying at a resort.
How long can the timeshare world survive if the mark////client isn’t forced into making a decision in 90 minutes?
Get a handle on all the obligations and benefits of the timeshare or vacation plan purchase. Is everything the salesperson promises written into the contract? If not, walk away from the sale.
This had me rolling on the ground, I’m still trying to catch my breath.
Ask about your ability to cancel the contract, sometimes referred to as a “right of rescission.” Many states — and maybe your contract — give you a right of rescission, but the amount of time you have to cancel may vary. State law or your contract also may specify a “cooling-off period” — that is, how long you have to cancel the deal once you’ve signed the papers. If a right of rescission or a cooling-off period aren’t required by law, ask that they be included in your contract.
I’m sure the salesrep spent 20 minutes informing our new owner about the “Right of Rescission”.
To File a Complaint
Timesharing usually is regulated through the Real Estate Commission in the state where the timeshare property is located. The sale of vacation plans generally is not regulated at all. However, if you believe you’ve been the victim of false or deceptive advertising or marketing of a vacation plan, contact the Federal Trade Commission.
Sure, the salesrep notified our new owner about filing a complaint with the FTC. I wonder if he will teach you how to put their phone number on speed dial?
Conclusion:
All in all, the new FTC brochure is very enlightening and let’s see if ARDA can get it into the hands of everyone taking a sales presentation.
I’m sure many of you will find passages that have you rolling on the ground too.
Hopefully the FTC and ARDA (Link: http://www.arda.org//AM/Template.cfm?Section=Home) will make this a mandatory brochure that MUST be handed out at every timeshare sales presentation.
(Can you imagine the panic setting in at the developers if the truth about timeshares ever got out – like what’s in this brochure?)
Here are some quotes that caught my eye:
In calculating the total cost of a timeshare or vacation plan, include mortgage payments and expenses, like travel costs, annual maintenance fees and taxes, closing costs, broker commissions, and finance charges. Maintenance fees can rise at rates that equal or exceed inflation, so ask whether your plan has a fee cap. You must pay fees and taxes, regardless of whether you use the unit.
Calculating the total cost of the timeshare, including MF, interest payments, taxes? When was the last time the salesrep brought up those topics? I must have missed that part of the spiel in the 50+ sales presentations we’ve now been on.
To help evaluate the purchase, compare these costs with the cost of renting similar accommodations with similar amenities in the same location for the same time period. If you determine that purchasing a timeshare or vacation plan makes sense, comparison shopping is your next step.
Compare timeshares to renting? Why that’s exactly what the salesrep does right off the bat – you know – “How much are you paying at the flee-bag hotel you’re now staying at”. You mean that we are supposed to add up all the costs, including the 50% fat that is lost immediately from the sales price and compare that to renting the same exact unit from the developer or Orbitz?
Don’t act on impulse or under pressure. Purchase incentives may be offered while you are touring or staying at a resort.
How long can the timeshare world survive if the mark////client isn’t forced into making a decision in 90 minutes?
Get a handle on all the obligations and benefits of the timeshare or vacation plan purchase. Is everything the salesperson promises written into the contract? If not, walk away from the sale.
This had me rolling on the ground, I’m still trying to catch my breath.
Ask about your ability to cancel the contract, sometimes referred to as a “right of rescission.” Many states — and maybe your contract — give you a right of rescission, but the amount of time you have to cancel may vary. State law or your contract also may specify a “cooling-off period” — that is, how long you have to cancel the deal once you’ve signed the papers. If a right of rescission or a cooling-off period aren’t required by law, ask that they be included in your contract.
I’m sure the salesrep spent 20 minutes informing our new owner about the “Right of Rescission”.
To File a Complaint
Timesharing usually is regulated through the Real Estate Commission in the state where the timeshare property is located. The sale of vacation plans generally is not regulated at all. However, if you believe you’ve been the victim of false or deceptive advertising or marketing of a vacation plan, contact the Federal Trade Commission.
Sure, the salesrep notified our new owner about filing a complaint with the FTC. I wonder if he will teach you how to put their phone number on speed dial?
Conclusion:
All in all, the new FTC brochure is very enlightening and let’s see if ARDA can get it into the hands of everyone taking a sales presentation.
I’m sure many of you will find passages that have you rolling on the ground too.