June 4, 2024, Updated June 18, 2024 due to Briana resolving her dispute
Many timeshare members have reported being harmed because of timeshare sales agents falsely promising the ability to rent to offset costs. This Developer-engineered rental strategy is either unfeasible, or not allowed. Some have called it an inventory grab. Complaints are industry-wide. The result is often the buyer driven to default, with little, if anything, in the contract to protect the consumer if the contract states the purchaser can rent, omitting extra fees and obstacles that makes renting to cover costs unfeasible. This report details seven timeshare buyers who bought from six different Developers. All report that they were assured renting would cover the cost of the timeshare.
By Irene Parker, TARDA volunteer
The Florida Attorney General's office expresses concern about telemarketing companies, but no attention, that we are aware of, has been directed towards timeshare companies:
The Attorney General's Office protects timeshare owners by investigating the business practices of telemarketing companies that market their advertising services to timeshare owners interested in selling or renting their timeshare interests.
https://www.myfloridalegal.com/timeshare-resale-fraud/timeshare-resale
A Westgate Resorts public records request from last year produced 585 complaints. Nearly half mentioned renting:
251 mention “rent”
88 mention “profit”
111 mention “investment”
The Better Business Bureau lists 598 Westgate complaints over the last three years:
Sherida, and Cassandra in Georgia, both bought timeshares from Vacation Village (Better Business Bureau rating of F). Sherida was assured by her Colonies sales agent that her “personal friend” and a licensed realtor, could easily sell her Westgate Resorts week so she could afford to buy at Vacation Villlage’s The Colonies resort. The purchase price for The Colonies week was $45,000.
Following up on her agent’s advice, she contacted her agent’s friend, Ed McGee, at Vacation Services International. It is proof enough of a bait and switch that he charged Sherida $299 to list her Westgate week for a ludicrous listing price of $37,000. Westgate charges $2,500 to take back a timeshare. She was also encouraged to rent out bonus weeks. She paid Mr. McGee an additional $199 to list her Vacation Village bonus week. Nothing sold or rented. She is stuck with two timeshares.
Cassandra and Sherida were both guests on our June 17 Timeshare Solution or Surrender episode. To view a show, select a date from the drop down menu provided. An archive of shows is provided below.
https://podtv.tv/timeshare-showcase
Cassandra bought a week at Vacation Village at Westin in Orlando while staying at Vacation Village Grandview Resort in Las Vegas. Cassandra said her agent assured her that she could rent out the week she bought during the Super Bowl to pay for the entire cost of the timeshare.
In addition to Sherida and Cassandra, five additional reports are detailed below. Briana in South Carolina and Ashley in Texas are both single mom’s. Ashley was forced to default, falsely accused of commercial activity. Briana's resort resolved her dispute. Past PodTV guest (May 27, 2024) Gary is a Vietnam Navy veteran who purchased Club Wyndham points. Anne Marie, her husband active duty Army National Guard, purchased from Hilton Grand Vacations. Andrew is an active duty Air National Guard service member who purchased from Westgate Resorts. Tracy purchased from Holiday Inn Club Vacations.
Bluegreen has suspended hundreds of accounts. Wyndham members have reported receiving cease and desist letters after their agents encouraged them to buy points to rent. The definition of “commercial activity” is murky at best.
There is nothing to protect the consumer from this scam if the resort allows renting, because there is nothing in the contract disclosing the obstacles to this strategy. Vacation Village and Westgate Resorts both state in their contracts that renting is allowed.
Wyndham and Bluegreen don’t allow the use of a third party platform, but we’re told that agents dismiss this disclosure, explaining that the rental restriction is only for people using the rental platform as a business. Wyndham does allow two Wyndham sponsored rental sites, but recovering costs is unfeasible.
One of our greatest concerns is that active duty service members, or those who work in a field requiring a security clearance, are finding their security clearances in jeopardy because of a timeshare loan default. Once up-sold, assured of the ability to rent to offset costs, active duty service members may be driven to default when that doesn’t work out. Since 2016, hundreds of veterans and active duty service members have reached out to report unfair and deceptive timeshare sales and lending practices.
Five Additional Reports of Rental Scam
Navy Vietnam veteran Gary in Colorado
#1 Gary reported that he was convinced to buy additional Wyndham points to be able to rent to offset costs. An upcoming guest and others have reported receiving a cease and desist letter from Wyndham warning that their accounts could be suspended. All have reported that their sales agents encouraged them to buy additional points to rent. One of our upcoming guests reported that his sales agent even referred him to a rental platform called Points 356, LLC.
Gary's May 27, 2024 Timeshare Solution or Surrender interview
https://podtv.tv/timeshare-showcase
Gary: What enticed us was our Club Wyndham sales agent’s explanation that we would be able to rent out points with Wyndham’s Extra Holidays programs. He mentioned several times how many owners had been able to rent out unused points and had received checks that could cover all or part of their costs. Marcus said that he offsets much of his costs by renting and added that his parents do this as well. We were familiar with Extra Holidays and had tried renting points through that program a few years ago with no success. However, he explained that the program was much better now because Wyndham takes care of everything. Upon further research, it rarely is possible to cover costs, because Wyndham keeps 40% of the income earned, and often if depositing a week, less than seven days rent.
#2 Anne Marie in Oklahoma, Gary’s fellow May 27 guest
Anne Marie reported that she and her husband, active duty Army National Guard, were presented with the opportunity to rent Hilton Grand Vacation points: The agent explained the benefits of ownership, including how we could use RCI to book a 7-night stay in Europe for less than $400 and then turn around and sell it for the going rate, like $1,500. In speaking with other Hilton owners, I am told that this is not feasible.
#3 Andrew in Utah, active duty Air Force National Guard, has served 8 ½ years with the Utah Air National Guard. Timeshare Solution or Surrender July 8 and July 16 shows
I am still enlisted and plan to serve 20 years. I have a security clearance. We purchased a 4 BR unit in September of 2021, at Westgate Lakes in Orlando for $50,954, financing $44,711. believing it to be an investment property. There are only the two of us who travel and a young daughter. There was no way that we needed 4 bedrooms. Our monthly payments are $667 per month.
Our Westgate sales agent said they had a deal because someone was giving up a 4 BR unit. They said if we ever wanted to sell we could. He said the original price was $75,000. We were told about an owner who rents her unit online on AirBnb, explaining that Westgate doesn’t touch any of the money she receives. The agent said Westgate has a policy against commercial activity, but there is a loophole to rent so that we get the money and Westgate doesn’t.
The agents talked about “Unlimited Getaways” that we could buy and sell to others. We could use the weeks or rent them out to others for profit. We would pay a variable rate of $49 to $399 and pocket the difference. When we attempted to do this, we were told the resort would charge us $400 for each reservation. The agents had said that we could turn around and rent out Getaways for around $1,000 or whatever the market would bear, adding that theoretically, we could rent out Getaways every week of the year. We were told we would receive money reimbursing us for maintenance fees from money that Westgate would make from using our property if we didn’t use it. They said they would pay us more in the year than the $1,666 we would owe in maintenance fees.
Before we went to sign documents, our agent said we should not mention anything we discussed, just sign the documents.
We booked a week in 2022 planning to pay the maintenance fees for 2022. They made it sound like we owned the unit year round because we have a unit number. They said it was our property and year round we would be entitled to income. We had no choice to default. We now can’t rent or buy a new place to live.
#4 Tracy in Wisconsin - (May 20 guest)
Our Holiday Inn Club Vacation sales agent said not to worry about the HOA fees because most people rent out their weeks or send in referrals which they will pay us for to help offset fees. They said I could possibly even cover some of the mortgage payments so it would be almost like getting the week for free. I tried to promote rentals on social media and passed out the certificates they gave us for a month, but I got a lot of backlashes advising me to run away from that. We learned that it is unfeasible to earn back costs by renting due to extra fees and obstacles.
#5 Briana in South Carolina, Briana resolved her dispute
I filed a complaint with the South Carolina and the Tennessee Attorneys General.
I am a single mom, working full time. I told our sales agents that I could not afford additional points or the $4,000 down payment for the package they proposed. They said that if I bought more points, I would be referred to a “member of their team” who specializes in rentals to cover all costs. One of the agents thought I would be able to “pay off my loan in 2 to 2 ½ years” and make back my down payment “within a couple of months” by renting. I would receive income wired to my bank.
I later learned the team member worked for another company and charged a $1,000 upfront fee and $800 for a required minimum of eight listings. She works for “Travel Rent Sell.” https://travelrentsell.com/
I was asked if I could afford loan payments of $782. I said no. They stepped away. The first agent came back and showed me a PowerPoint slide illustrating the amount of rental income I would accrue monthly to cover my loan payments and maintenance fees.
Before signing, I was advised not to mention renting, and to say yes when the closing people ask if I could afford the payments. I asked why since renting was what the upgrade was based on. Sales agent Andy stated that while members are allowed to rent it can’t seem as if it is for “income gain.” I told him I just needed it to balance out so I could afford the points.
I purchased additional points for $56,121. I was given an equity credit from my original membership of $3,162.53. I financed $48,898.61 at 14.63%. I went from loan payments of $286 to $782 not including the maintenance fees.
I messaged the agent that showed me the PowerPoint requesting a picture with the benefit breakdown and the point rentals illustrating how much I’d receive monthly and annually. I never received the PowerPoint.
The renting agent, LaToya, said that her contact would set everything up and I would only have to accept or decline renters. She showed me her rental accounts, some months showing up to $12K in income. She said that once the listings were posted, I would be “getting rentals left and right” and that I would “easily make up the $1,800 cost for her services as well as my $4K down payment.” I paid $1,800. I never had any rentals.
In March of 2024, I received a call from the resort's corporate representative. He said I signed a contract stating that I wasn’t purchasing for financial gain and that the rentals not doing well, wasn’t a reason to breach the contract. He said, “They asked specifically ‘can you afford these payments, correct?’” You said, “Yes.”
I explained that his employees told me to say yes. He said, “So what you’re telling me is you LIED ON A LEGAL DOCUMENT?” I said “No, I believed what they instructed me to say.” It went on in circles until I was crying. He said “Right now, it looks like you’ve lied on the contract." THERE WAS NO CONCERN THAT THE SALE AGENTS CAUSED THIS. He said, “I’m just telling you what they are going to see when they review it.” He added that I had hurt the sales agent’s feelings” because I had complained about his lack of responsiveness. He said I should send the first sales agent an email thanking him for his help because that will show the review committee that you are trying to work with us and not against us to paint you in a better light.”
The next time I spoke to the sales agent I was crying. I said “I’m sorry if I hurt your feelings, but you know you said there would be rentals to cover this. You know I said I couldn’t afford the payments and you TOLD me to say I could afford them, and now I’m being told that I lied on a legal document. He apologized and then mentioned the email I should write thanking him for his help. I sent the email. Further attempts to speak to him were answered with reasons why he was unable to call.
I reached out to customer service. Some representatives gave me phone numbers to call that would go to voicemails. Some representatives stated there's no option besides paying off the loan. One representative stated she sent a “financial hardship form” to the corporate offices, and I would hear back within 4-5 business days. Another representative told me there is no such thing.
The fine print: “Purchaser(s) acknowledge that this Membership is being purchased for their own personal vacation use and enjoyment and not because of any financial or monetary advantage such as rental income, price appreciation or tax advantage. Purchaser(s) further acknowledge that their Membership and Points may not be used for any commercial purpose whatsoever (“commercial purpose” includes, but is not limited to, a use or purpose that the Seller, Club Manager, or the Board of the Club Association could reasonably conclude constitutes a commercial enterprise or which otherwise suggest an intent or expectation to derive profit), all of which Purchaser(s) acknowledges and agree are prohibited and not part of the subject transaction”
“Purchaser(s) acknowledges that they have been advised that (i) No one is authorized to guarantee that Seller or any of its affiliates or partners will repurchase or resell your Membership (or rent usage in connection therewith), or that you will be able to locate potential renters, and (ii) neither the Seller, Seller nor any of its agents, or affiliates is engaged in the resale of any timeshare interest on behalf of any owners and that all owners must secure their own independent real estate broker for resales or handle any such transaction themselves. Manager.
#6 Ashley in Texas
Ashley's Bluegreen Account Suspension
Ashley is a single mom with a medically compromised five-year-old son. She agreed to take over her grandmother’s Bluegreen Vacations points only after her grandmother inquired and was told that Bluegreen had a “Relief Program” that allowed members to deed-back points at no cost. Ashley’s son has twelve doctors. His symptoms include lung disease and heart failure. Ashley must rely on friends and family to help with maintenance fees. Maintenance fees increased by $600 to $5,500 in 2023.
Despite only renting to friends and relatives, which Ashley could prove, Bluegreen suspended her account. Worse, frustrated and angry, when she inquired about Bluegreen’s Relief Program to give back her points, she was told that the free program had changed. She would now have to pay $8,165 to relinquish her points, 1 1/2 years of maintenance fees. If she waited, she would be charged an additional $5,543 for 2024 maintenance fees. Ashley’s grandparents paid over $100,000 for points they had accumulated since their original purchase in 2003. The family’s Big Cedar weeks in Branson, MO are high-demand weeks and, after foreclosure, will be quickly resold.
https://tarda.org/bluegreen-vacations-suspend-hundreds-of-accounts