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Arizona proposed changes to rescission periods!

TUGBrian

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TheHolleys87

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Yes, that would be incredible. It would be wonderful if just the 14-day rescission period would pass - I don’t think the other provisions have much of a chance, so if I lived in Arizona I’d be focusing on that one and defending it against what will obviously be intense opposition to the entire bill.
 

Iggyearl

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14 day rescission clause - big disclosures on lifetime costs - 1 year cancellation with 90% refund - ability to give back the timeshare at 10 years. WOW!! Oh WOW!! This is the same state that got a $800K settlement out of Diamond. Who knows... At least the subject of consumer protection will be brought up and discussed.
 

vacationtime1

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Were the "strong" version of this bill to pass, it would likely reduce new timeshare sales efforts by developers in Arizona -- developers would sense higher rescission rates for new buyers because they would have more time to become educated and rescind.

Not a bad thing as will reduce sales pressure on owners/renters/exchangers and it may increase TUG membership as more folks have more time to stop by and learn.
 
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bizaro86

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Yeah, I wouldn't expect too many new AZ resorts to be built if the strong version passes. Might be good for the resale value of existing timeshares in the state in the very long run.
 

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It's good to see strong consumer action on the issue. Would love to see more states take up the issue.

I wonder if it would apply to residents of Arizona who buy elsewhere?

Also would it apply to resale purchases? Although it could probably be listed as an "as is" real estate deal but having such constraints on a consumer selling their week could be onerous.
 
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dayooper

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Do you think ARDA will be for or against the Arizona bill?

If only Costco sold timeshares....
Return it any time if not satisfied.

The problem would be that people would just use them for Super Bowl parties and return them the next day.
 

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Such extreme measures like refunding 90% of an "unused" timeshare will kill timeshare sales business altogether. It will not be good for folks who already own timeshare. The major brand management companies want to make more money than simply 10% from MF as their management fees.
 

Panina

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“ 1 year cancellation with 90% refund”...don’t see how this can pass, how about a car, or a home, or high end appliance or boat, I can go on and on.
 

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Are they going to reach into the sales staff pockets and take commissions back after a year?

This bill is horrible and would kill the industry.
 

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eh, i dont think there is a problem at all with a 90% refund prior to first use.

as for the car analogy, heck even used car dealers are offering 14-30 day "bring it back for any reason" clauses now...and thats even if you use the car during that time!

what it WOULD end nearly overnight...were the shady sales presentation practices that rely on misleading a customer to get them to buy then and there with little to no time to research and discover they were taken advantage of.
 

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eh, i dont think there is a problem at all with a 90% refund prior to first use.

as for the car analogy, heck even used car dealers are offering 14-30 day "bring it back for any reason" clauses now...and thats even if you use the car during that time!

what it WOULD end nearly overnight...were the shady sales presentation practices that rely on misleading a customer to get them to buy then and there with little to no time to research and discover they were taken advantage of.

So what is a fair sales price then?
 

TUGBrian

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not sure what the sales price has to do with it?

I dont find it unreasonable at all to allow for a partial refund for an unused product.
 

buzglyd

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not sure what the sales price has to do with it?

I dont find it unreasonable at all to allow for a partial refund for an unused product.

90% isn’t exactly a partial refund.
 

CalGalTraveler

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The key difference here is that the product has not been used to get the 90% refund. Cars, appliances, and boats are taken off the lot.

Besides 10% of 100k is $10k. Not a bad return to cover sales presentation costs, zero usage of the property, and interest on the cash paid. I could envision sales representatives coming up with a new scheme. "Sign now you have nothing to lose."
 
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buzglyd

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The key difference here is that the product has not been used to get the 90% refund. Cars, appliances, and boats are taken off the lot.

Commissions have been paid. Financing has been arranged. Construction loans have been amortized. Title companies have been paid. On and on.

It’s not free to build a hotel/condo.
 

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Like a roach, the developers will find another way to survive. Perhaps they would evolve away from deeded ownership and become more RTU and points vacation club (aka "prepaid hotel rent") oriented to circumvent the law. Given the trend to points this would not be a stretch.
 

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Like a roach, the developers will find another way to survive. Perhaps they would evolve away from deeded ownership and become more RTU and points vacation club (aka "prepaid hotel rent") oriented to circumvent the law. Given the trend to points this would not be a stretch.

Most state laws require a deeded ownership. Personally I think RTU is better but state laws don’t support it. Tax laws also don’t support it.
 

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Could you elaborate on the state law? I could envision less favorable tax law treatment, however I cannot imagine a law limiting developers from leasing small portions of the units back to buyers as a "prepaid hotel plan."

Disney does quite well with RTU and it's not illegal.
 
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Are they going to reach into the sales staff pockets and take commissions back after a year?

This bill is horrible and would kill the industry.
I don't see why not...I work in the life insurance industry and my contract (and all contracts, for that matter) says that if someone cancels a policy that I have sold within the first (2) years, I have to give back the commission on a pro-rated basis...

Cheers!
 

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90% isn’t exactly a partial refund.
Technically it is...and in more than one way. It "relates to a part rather than the whole" and "favors one party more than the other" :)
 

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It may work to the advantage of ethical (a word that is not commonly associated with:) timeshare developers. They could use the Arizona law as an indication of their commitment to their potential customers. Those people considering a timeshare could use this as part of their purchase equation.
 
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