13/08/2024 | Press release | Distributed by Public on 14/08/2024 22:59
August 13, 2024
Chicago - Attorney General Kwame Raoul today urged timeshare owners trying to sell the properties to be on the lookout for resale scams. Scammers typically claim to be escrow agents or representatives of brokerage firms, travel agencies or title companies who make unsolicited contact with timeshare property owners and attempt to pressure owners into paying thousands of dollars in bogus upfront costs and fake processing fees for sales that never happen.
The Attorney General's office is aware of scams related to timeshares where scammers, mimicking legitimate timeshare resale companies, operate under many different names and use many different phone numbers, websites and email addresses to avoid detection by law enforcement. Raoul is warning consumers that once they send a payment to a timeshare scammer, they are not likely to recover their money.
"As the summer vacation months wind down, timeshare owners may decide their vacation rental is no longer the right fit for their family," Raoul said. "Unfortunately, bad actors are ready to target owners with scams and misinformation. I encourage timeshare owners to take precautions before paying upfront fees or signing any agreements when dealing with an unfamiliar individual or entity claiming they can assist in exiting a timeshare contract."
Raoul is warning consumers who receive unsolicited timeshare resale communications that the following are red flags of a scam:
Attorney General Raoul advises consumers who want to sell their timeshares to work with a licensed real estate broker, and ensure the company is registered to do business in the state where the timeshare is located. Consumers can also check with the Better Business Bureau to research any available reviews or complaints received against a company. More information on timeshare fraud prevention is available through the American Resort Development Association, the Resort Owners' Coalition, the Federal Trade Commission (FTC), and the Securities and Exchange Commission's Office of Investor Education and Advocacy.
Consumers affected by possible timeshare resale scams can file complaints with the FTC, the FBI's Internet Crime Complaint Center or the Consumer Financial Protection Bureau. Consumers who sent payments by mail can file a complaint through the U.S. Postal Inspection Service.
Attorney General Raoul encourages those who believe they have been the victim of fraud to file a complaint on the Attorney General's website or to call one of the Attorney General's Consumer Fraud Hotlines:
1-800-386-5438 (Chicago)
1-800-243-0618 (Springfield)
1-800-243-0607 (Carbondale)
1-866-310-8398 (Spanish-language hotline)