The timeshare change of address scam leaves many of its victims with CCJ (County Court Judgments) against their names. This scam can bankrupt its victims 10 years after they “terminated their timeshare contracts”!
Here at Timeshare Compensation, we here from victims of all types of scams. However, the timeshare change of address scam is truly the worst, it leaves timeshare owners with mountains of debt which has caused some owners to lose their homes.
The earliest we have heard this scam taken place dates back to 2006. However, we expect there are many owners who are unaware that they have fallen victim and these types of scams and it could date back even further.
Many timeshare owners have regretted making that decision to buy the timeshare and with maintenance fees increasing above inflation, the timeshare becomes an unwanted debt. They do not want to pay this dept for the life of the contract and certainly do not want to pass the debt onto their children.
How the timeshare change of address scam works
- The victim receives a cold call from a timeshare relinquishment company offering their services of terminating their timeshare agreement. Using scare tactics, they convince the timeshare owner that they will soon not be able to afford the fees. they will often also guilt them into thinking that the timeshare will eventually force their children into bankruptcy if the contract is in perpetuity.
- The victims are informed that the cost to terminate their contract is between £1500 – £6000 (legal fees). This figure varies depending on how much money the fraudsters think they can get out of the victim.
- The fraudsters then request all of the important documentation. Original timeshare deeds as well as copies of passports for identification.
- They then send the victims a legitimate contract stating payment instructions and service that they will be providing.
- The Victim then pays the “legal fees” by bank transfer.
- Using the original deeds and identification, the fraudsters contact the timeshare resort pretending to be the owners and notify them of a change of address.
- They will then confirm to the client that the job has been completed with a fake letter of authenticity.
- It is now time to pay the maintenance bill. No bill arrives in the post so the job looks to be complete.
Not the worst part of the scam!
This is how they victim is scammed out of the £1500 – £6000 “legal fees”. However this is not the worst part of the scam for the victim.
The contract between the timeshare management company and the timeshare owner is a legally binding contract. These bills keep arriving to the wrong address and the debt builds up with added late fee charges. Once the bill has reached an amount worth chasing up, the resort will pass the debt onto a debt collecting agency.
The debt collecting agency will investigate the whereabouts of the victim, who is unaware that they still own the timeshare. Once contact is made, the fees need to be paid or it will be taken to County Court. As this contract is a legally binding contract the court will only examine the evidence which is the contract signed by the timeshare owner and the timeshare management company. They will not take into consideration that the victim has been scammed as this is not the responsibility of the timeshare management company.
By the time the owner is located the maintenance bill has reached an unmanageable debt and the owner is likely to have thrown away all paperwork linked to the timeshare or the fraudsters. Not only does this bill need to be paid, the victim is still the legal owner of the timeshare and is still responsible for all future maintenance costs.
If you pay to terminate your timeshare contract make sure that the contract stipulates that if the relinquishment is unsuccessful you are entitles to your money back. Keep all paperwork and make sure that you are notified from your timeshare resort once the relinquishment has been successful. Keep all documentation to avoid any nasty surprises years down the line.
More information regarding timeshare scams can be found here https://timeshare-compensation.com/category/timeshare-scams/
If you would like to speak to a specialist about terminating your timeshare contract legally, please arrange a free telephone consultation.
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