As the number of owners eager to get out of their timeshare is increasing every year, scams are also surfacing every now and then. Recently, we have been made aware that timeshare owners are making complaints that they are receiving unsolicited phone calls from Equity Secure. This is a company that operates using a website but does not appear to have office in the UK.
The said firm purports to secure equity release from your timeshare commitments and owners are informed that the law is to change in January next year, which will result in a doubling of their maintenance fees. However, there is no truth whatsoever in this statement and owners should be on their guard about this claim. This is a scare tactic to persuade people to pay a fee to sign up for their service.
Meanwhile, in February 2011, a new Directive comes in to force that provides timeshare buyers with additional levels of protection, namely a 14-day cooling off period and a ban on deposits. This law does not extend to maintenance fees. Thus, such claims that these are to double next year are totally unfounded.
On the other hand, RDO is extremely concerned that Equity Secure, which has links to Travel Connect Ltd and Connections 6, is offering to recover up to £12,000 on behalf of timeshare owners. RDO does not endorse this type of cashback scheme and is doubtful that owners would receive their money.
Moreover, owners who wish to get rid of their timeshares by selling it must be aware of such scams nowadays. They must bear in mind that timeshare resale companies are not allowed to take an upfront registration fee, cannot make unsolicited calls and must give buyers a cooling off period (i.e. time in which they may change their minds without financial penalty). Thus, companies cold calling should be avoided at all costs as it is more than likely that they are looking to obtain money from you without supplying a service.