Tips to Avoid Scams in the Timeshare Cancellation Process
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Scams are a universal constant in all markets, if there is someone looking for a service, there is someone with the little ethics necessary to sell them a false product or advertise it with lies, unfortunately in the timeshare world, scams and dishonest tactics are extremely normalized and are employed even by resorts´s sellers to achieve their commissions
a. Is a Timeshare a Good Purchase? Timeshare Value
- Potential Risks to Consider When Buying a Timeshare, Scams in the Timeshare Acquisition Process
- Canceling a Timeshare
- Most common scams used by timeshare Cancellation Companies
- Tips to Avoid Scams in the Timeshare Cancellation process
Is a Timeshare a Good Purchase? Timeshare Value
The answer to this depends on your standards and personal views on the value of purchases. To arrive at a satisfactory conclusion about the potential value of a timeshare, it is good to consider some characteristics of timeshares:
- Limited Uses: A timeshare serves no practical purpose other than as a vacation stay. It does not serve as an investment because the market is limited, and the properties have no real value. It is also not a good gift since it comes with maintenance costs.
- Negligible Value: As mentioned earlier, a timeshare has virtually no real value, meaning the property's size, age, and appearance are worth almost nothing. Additionally, timeshare properties have the unique characteristic of not only not appreciating in value over time but also losing value. Therefore, seeking to acquire a timeshare with the intention of selling, renting, or generally treating it as an investment is a guaranteed money loss.
- Costs: A timeshare not only comes with an upfront payment but also with monthly and annual maintenance fees and additional fees in case of natural disasters or accidents on the property. Combined with its negligible real value, a timeshare is, in the most pragmatic sense of the word, a waste of money.
Potential Risks to Consider When Buying a Timeshare
With the given information, you may have decided that buying a timeshare is not worthwhile. However, if that is not the case and you are determined, there is an additional consideration: scams in the timeshare market. There are several types of scams, the most common ones being
- Empty words: In Mexico, spoken words hold no value in terms of agreements. To avoid falling for scams based on empty promises, it is crucial to thoroughly examine the contract and ensure that any verbal promises are recorded in it.
- Exaggerations regarding the nature, characteristics or uses of a timeshare: Deceptive promises regarding property or timeshares are unfortunately common. Sellers often create false expectations about the properties or the potential use in timeshare plans to lure unsuspecting buyers. This is particularly problematic because these promises result in a scam, as the uses and values of Timeshares are restricted.
- Cost of the Timeshare: At times, resorts promise fixed or even non-existent maintenance fees to persuade you to buy the plan. However, this tactic is a ruse, as maintenance fees tend to increase annually.
Even without being scammed when buying a timeshare, you must consider the significant expense that timeshares represent. It is highly likely that these costs will increase year after year, making the purchase of one a risky decision for your finances if you do not manage your money well.
Canceling a timeshare
If you were scammed or no longer wish to continue with your timeshare your best option is to cancel it, since the contract will be terminated and the annual and monthly payments will end definitively; as for how to cancel, sometimes it is possible to resolve the matter with the resort itself during the first 5 days after signing the contract, but this is almost impossible to achieve since the resort will be reluctant to cancel the plan and will try to discourage you from doing so, so it is better to go directly to a company that specializes in canceling timeshares.
This may seem intimidating to many people, as hiring a specialist is often expensive. However, hiring is more effective and economical in the long run than trying to resolve the problem through other means.
With assistance, you can cancel your contract even outside of the 5-day period after purchase, something that would be difficult to accomplish without their help. If you don't know a timeshare cancellation specialist, don't worry. There are companies that can guide you through the entire process.
Before hiring a company to cancel your timeshare, we invite you to know the most common scams that can occur through these companies, so you can avoid being scammed a second time.
Most common scams employed by timeshare cancellation companies
Just as resorts have developed a kit of tricks to convince you to buy a timeshare, some timeshare cancellation companies have developed their own fraudulent techniques to convince you to hire their services to cancel your timeshare; some of the most common ones are:
- Exaggerating the uses or nature of their services: it is important to always remember this fact as some companies will try to get your attention with exaggerated promises about the scope of their services.
- Advance payments: This scam format is extremely common in all types of markets; it consists of promoting a service, asking for a payment in advance and cutting off communication after receiving it.
- Identity change fraud: The company changes its name or uses fake names to avoid negative track records and continue with repeated scams, if the company has little history and little time in the market, we recommend you go with caution.
- False promises of refund: They promise a full or partial refund of the money paid if they are unable to cancel the contract, but never deliver on the promise.
- Manipulation of documentation: Modification of legal documents to make it appear that the timeshare contract has been canceled when in fact it has not.
- Denial of service: After receiving payment, the company denies any attempt to contact you and does not provide cancellation services.
It is essential to remain vigilant and conduct thorough research before engaging with any timeshare cancellation company to avoid falling for these scams. Always consult professionals before making important decisions.
Tips to avoid scams in the timeshare cancellation process
Maybe when you start looking for resources to cancel your timeshare you think you are "safe" and you can let your guard down and go with the first company you find; but as we mentioned before, this is unfortunately not the case, no market is immune to scams and there are companies that offer services with fraudulent promises or that do not fulfill their part of the deal after receiving a payment; you can learn how to avoid scams on your own by following these tips:
- Thorough research: Thoroughly research the company or professional that will offer you cancellation services. Check their reputation and reviews.
- Don't pay upfront: Avoid paying high upfront fees before receiving services. Legitimate companies do not usually require full payment in advance.
- Review the contract thoroughly: Read any contract carefully before signing. Make sure you understand all terms and conditions, especially those related to payments and cancellations.
- Demand written proof: Ask for all information in writing, including services offered, rates, terms and cancellation guarantees. Keep these documents for future reference.
- Confirm cancellation: Be sure to confirm the cancellation of your timeshare before assuming the process is complete.
- Check the company's track record: Check that the company has been in business for at least 10 years; a new company can disappear at any time.
- Be skeptical of offers that are too good to be true: If it sounds too good to be true, it probably is. Be on the lookout for overly promising offers or extremely low prices to cancel a timeshare.
By following these tips, you'll be better equipped to avoid potential scams and make informed decisions during the timeshare cancellation process.
As with any other purchase of services, when seeking help in canceling a timeshare, it is crucial to make sure you are dealing with legitimate companies. A good tip when seeking these services, not just when canceling timeshares, is to avoid companies that ask for upfront payments. Specifically in the case of canceling timeshares, it is advisable to avoid companies that promise full refunds of resort payments or charge for consultations.
If you are interested in receiving a free consultation, at Mexican Timeshare Solutions we can advise you, contact us, send us a WhatsApp message +52 1 333 239 6589 or call us +1 714 277 3662, and get rid of your unwanted timeshare.