Misleading Conduct and Incorrect Sales Information from a Timeshare Company

Timeshare companies, also known as holiday ownership companies, have become well-known for their high-pressure sales tactics and fine-print hidden charges. The approach is generally similar: You receive a flyer in the mail stating that you will get _____ free just for attending a seminar on vacation packages in the Caribbean (or someplace similar). Upon attending the seminar, however, you find yourself locked in an intense negotiation battle over whether or not you can afford to invest several thousand dollars in a timeshare condo (or something similar) in a faraway exotic destination.

Some Common Misleading Conduct

Some timeshare company claims, however, extend into the realm of misleading conduct and/or unfair trade practices. For example, promises that the investment will increase in value or that the owner will be able to turn around and sell their timeshare at a huge profit are obviously impossible to keep. There are a number of other areas that timeshare companies regularly misrepresent in order to make the sale:

• Maintenance fees. All timeshares have maintenance fees, and those fees will go up over time. Anything said to the contrary constitutes misleading sales practices.
• A false sense of urgency. "If you join today, you will receive these fabulous benefits…if you come back tomorrow, we can't give you any of these."
• Seminar length. The maximum accepted time for a timeshare sales pitch is 90 minutes. Anytime the buyer has been made to wait for 3 hours or longer there may be coercion involved.
• Failure to properly explain cancellation. All timeshare companies are required to clearly explain the right to cancel, usually within a certain time period.
• Hurried closing of the sale. Anything that you sign must be clearly explained by the sales agent. If you are hurried out the door after signing something you don't understand, chances are that is unfair business practices.

Three Basic Options

If you find yourself locked in a timeshare you don't want or didn't intend to own, you have basically three options:

• rent out the timeshare;
• sell the timeshare;
• cancel and try to recoup your money.

Should you wish to pursue the last option, and feel that you have a solid case for misleading information on the part of the timeshare company, you may need to contact an attorney for legal advice. Be aware, however, that the timeshare companies have been doing this for years and that you're probably not the first person they have swindled (if that's the case).

Finding Legal Help

The complex nature of timeshares means that it is fairly common for people to sign something they don't understand. To help get unentangled from the contract, however, your best bet is to contact an attorney for advice in your particular situation.