Know Red Flags Before Committing Timeshare Purchase

Timeshares and camping clubs are becoming popular alternatives for many Americans and can be great ways to enjoy a much-needed vacation. But, like everything else, it is important to do some research before you “show them the money.”

A timeshare is the right to use and occupy a unit in a building on a periodic basis, generally for a period of one week annually. A camping club allows consumers to keep a trailer, tent, camper or similar equipment at a land-based site for a designated period of time.

Indiana law gives the purchaser the right to cancel a timeshare or camping club purchase within three days after the execution of the sales contract. Sundays and legal holidays do not count in computing this period. Developers must provide purchasers with a cancellation form, and the cancellation notice is effective on the date postmarked.

If you are thinking about one of these two options, here are some guidelines to follow:

♦Resist high-pressure sales. You are under no obligation to make a purchase because you are given a prize, a free dinner, or a reduced-price vacation as an incentive to attend a sales presentation.

♦Read the entire contract and any literature you are given and understand what you are purchasing. Not all timeshare properties are of equal value, depending on their location and the time of year you are purchasing.

♦Ask others you know who have a timeshare or are in a camping club if they are happy with the guidelines of their contract, and find out as much as you can from them. This will give you the information you need to ask the questions you might not have considered.

♦Get a reliability report from the BBB about the company before you attend the presentation.

♦Verify everything before you pay. Be cautious about prepaying for multiple years. Timeshares, campgrounds or travel clubs may offer to sell membership vacation accommodations for five years or more. Take into account your physical and financial health, a company’s solvency, potential rising membership and maintenance fees, and the often poor appreciation of such investments, and take your time before committing.

When considering any vacation promotion, here are some “red flags” that can signal fraudulent acts. Be wary of salespeople who use high pressured tactics such as:

♦Demanding your credit card number before explaining all the conditions of an offer.

♦Requesting that you identify yourself by your credit card number (a sign of possible misuse of your card).

♦Refusing to provide all the information about the total cost of a vacation or travel offer.

♦Postcard or fax promotional mailings that require you to pay a fee or to purchase membership in a travel club to claim a vacation or travel prize.

♦Low rates on air travel requiring you to purchase an additional ticket for a companion.

♦Offers by companies attempting to undermine U.S. postal authorities by requiring a messenger or courier to deliver the timeshare package to you in exchange for your payment.