warns of fraud as timeshare owners seek to evade financial burdens of long-term deals
LOS ANGELES, CAS, USA, Aug. 1, 2022 /EINPresswire.com/ — Vacation real estate innovator and entrepreneur Ed Kushins is hardly surprised by the recent lawsuit filed by the Attorney General of Los Angeles. Alaska targeting companies and individuals who defraud people trying to terminate their timeshare vacation contract.
Case No. 3AN-22-___CI
“I’m not a timeshare advocate,” says Kushins, pointing to a United Consumer Financial Services report stating, “The average timeshare churn rate is 15%. This reflects the daily percentage of people who buy a timeshare after attending a sales presentation. In essence, trying to get out of a timeshare is as common as buying one. Kushins also cites a University of Central Florida study which “found that approximately 85% of timeshare owners regret signing on the dotted line”.
Estimated at $10 billion, the timeshare industry is huge. While many owners are happy with their commitment, at least as many or more are looking for ways to get out of the lifetime financial obligations of their contract. This has resulted in an increasing number of unscrupulous companies and individuals “targeting people who want to opt out of their timeshare purchases, for whatever reason, so it’s hard to blame Alaska’s action. “, explains Kushins. It refers to the June 23 lawsuit filed by Alaska AG Treg Taylor against seven companies and eight individuals that operated a fraudulent timeshare outing scheme that defrauded Alaska’s elderly consumers. The lawsuit alleges that the defendants promised to release consumers from their timeshare contracts in exchange for large upfront payments, often in excess of $10,000, but then failed to deliver on their promises.
Owners seeking to terminate their timeshare agreement legally and safely generally do so by one of four means:
* Resell. The owner almost always suffers a significant loss.
*Timeshare Relief Funding. A cancellation company takes care of the bureaucracy and paperwork. Client makes low monthly payments and finds a way out of unwanted timeshare.
*Timeshare cancellation company. These companies know the ins and outs of the timeshare industry and binding contracts, which is why they are valuable resources for customers. They handle the legal side of things, so the client doesn’t have to deal with outrageous monthly payments to a developer or resort.
* Litigation. While it doesn’t take a lawyer to release someone from their timeshare, more and more people are hiring a legal expert to handle their timeshare disposal. The process is expensive and time-consuming, but still the safest way to exit timeshare.
Whichever method a timeshare owner may choose, Kushins offers the following advice:
* Determine if the resort management company has an exit program. The American Resort Development Association can help identify which company to contact: https://responsibleexit.com/#sectionfour.
* If you decide to hire someone to sell your timeshare, make sure the person you hire is a licensed real estate agent or broker.
* Beware of any company that requires upfront payment for timeshare outing services.
* The timeshare market is saturated. It may be difficult, if not impossible, to resell your timeshare at the full purchase price. Set reasonable expectations and don’t fall for scammers who make promises that sound too good to be true.
Says Kushins, “In any case, the matter under investigation appears to be related to outright fraud,” and this can best be achieved by avoiding the timeshare market altogether instead of alternatives.
BIO: A former US Navy submarine officer and successful businessman, Ed founded HomeExchange.com in 1992, one of the first online communities on the Internet, pioneering the sharing economy even before the term is invented, paving the way for companies such as Uber, Airbnb and others. A sought-after travel and sharing economy expert, he has spoken at seminars, panels, and conferences around the world and been featured in major media outlets, including feature articles in the NY Times, the Wall Street Journal, the Los Angeles Times and many international editions.
After selling HomeExchange.com in 2017, Ed saw the opportunity to combine owning and sharing to help millions of families realize their dream of owning a vacation home. His vision for VacationPropertyPartners.com is an easy-to-use website that incorporates tools and features that make owning a vacation home with a partner affordable, comfortable, and worry-free. Vacation Property Partners makes owning a vacation home more affordable for everyone by cutting the cost of ownership in half.
Ed is an active member of Rotary International and a longtime supporter of the Wounded Warrior Project. When he’s not traveling the world with his wife, Terry, he stays active by hiking, swimming and golfing. They live in Hermosa Beach, California.
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