Timeshare Customer Complaints Continued to Rise in 2012

According to a recent article on Forbes.com, timeshare complaints continued to increase in 2012 from both potential buyers and current owners. The nature of these complaints are similar to those found in past years, but, unfortunately, they continue to grow in regularity.

For prospective buyers, the root of their frustration remained unchanged. Many reported being lured into presentations by luxurious prize offerings that were often times not delivered. Meanwhile, the presentations have been known to last up to 6 hours, and many potential buyers have felt bullied by resort sales representatives.

As far as owners are concerned, there are two primary complaints – unfortunately, we are all too familiar with both. The first is that timeshare owners who are no longer satisfied with their arrangement are still forced to pay their steep maintenance fees, even if they no longer use their property. These fees can extend well into the thousands of dollars, which can cripple the finances of many families, leaving them stressed, frustrated, and anxious about their future.

The other common complaint had to do with the owners’ inability to end their timeshare contracts and the dozens of scam companies that thrive off of this desperation. It seems as though the number one perpetrator of these scams come in the form of false resale companies. These companies usually charge around 3,000 to resell your property, and they often do nothing more than cash your check and vanish.

Unfortunately, in some cases, that’s only the half of it. Once the check has cleared and the scammers have disappeared, the owner will receive another phone call from a related scammer claiming to be a “resale recovery service.” They offer to recoup the owners costs from the initial scammers, but they charge a large fee to do so, and they disappear for good after they’ve cashed this second check.
Basically, there are two very important things to keep in mind depending on whether you are a prospective buyer or a current owner.

1. If you plan on attending a sales presentation, just know what you’re getting yourself into before going in. Many people really enjoy timeshare ownership, and they get a lot of use out of their property. But if you have any reservations at all, it’s best to really consider your options before you commit to anything. It’s also very important to read your contract thoroughly and be aware of possible exit solutions should you ever wish to terminate ownership.
2. If you already own a timeshare, but you no longer use it, be very careful when looking for viable exit solutions. Make sure to do you homework: check with the BBB, contact your state attorney general’s office, research the company’s website and look for a permanent mailing address to ensure authenticity. Just a few easy steps to verify a company’s legitimacy could save you and your family thousands of dollars in the long run.

At Newton Group Transfers, we encourage you to learn as much about our services as possible. You can visit our website at newtongrouptransfers.com to learn about our process, read our customer testimonials, and reference our FAQ section for answers to common curiosities. If you’d like to learn even more about how we conduct our business, please call one of our expert Consumer Advisors at (866) 202-1106.

Timeshare Transfer 101: Do Your Homework!

As I’ve stated before, my primary purpose is to educate readers on the many aspects of the timeshare industry and to offer an alternative solution to those families who are no longer happy with their property – not to bash the timeshare ownership at large. For some people, timeshares are a great fit. If you and your family know that you love the resort, and can afford the fees and travel costs associated with timeshare ownership, more power to you. One thing I always like to stress, however, is for potential owners to do their homework before signing on the dotted line.

Now, it’s no secret that most of us don’t like doing homework. We didn’t want to study our multiplication tables when we were in 3rd grade, and we don’t want to agonize over every single aspect of our lives now. However, when you’re looking for viable alternatives to removing your family from the burden of timeshare ownership, it’s absolutely vital that you thoroughly research whichever company you plan on working with.

There is a long, sordid history of disingenuous behavior that runs rampant throughout the timeshare industry. It starts at the initial sales pitch (who hasn’t heard of these or experienced them firsthand), intensifies as your annual fees increase and your usage decreases (for any number of reasons), and it usually doesn’t end until the deed has officially been transferred out from under your name. This is the life cycle of timeshare ownership for many former owners, so please don’t feel too anxious is you can relate – many others have been in your shoes before.

Traditionally, ending a timeshare agreement was next to impossible, but within the last decade, more and more disgruntled owners have begun utilizing timeshare transfer companies to rid themselves of their properties once and for all. This has been a blessing for unhappy owners desperately seeking an end to their timeshare nightmare, as well as for the industry as a whole, but certain businesses have manipulated this emerging trend, ripped off their customer base, and then disappeared as quickly as they arrived.

In the timeshare recapture industry, many brand names have come and gone, but the same ownership of these brands remains intact. The common practice is for companies to perform their business under a vast collection of different brand names. This way, they can quickly abort any temporary brands that have earned unwanted liabilities or poor reputations. New names are being introduced all the time, but they fade away just as quickly as they arrived, leaving no evidence that they ever existed.

So why do so many companies abort these new brands shortly after they’ve been established? The answer is simple, really; it’s so much easier for them to simply fold up their temporary operations and begin anew with a new brand name (and the same dishonest business plan) rather than spending the time, money, and effort to provide the support that every customer deserves. Given this flippant and irresponsible attitude, many timeshare owners trying to transfer their property have been burned with no way to recover their losses. Therefore, timeshare owners looking to rid themselves of their contracts are strongly urged to investigate the history of any company they deal with, along with the history of their ownership.

Meanwhile, as many timeshare recapture companies try and disguise their poor reputations by representing themselves as several different entities, Newton Group Transfers continues to maintain our core values of transparency and integrity. Our reputation is everything to us. To that end, all subsidiaries and brands under the umbrella of the Newton Group ESA operate with the exact same moral criteria. By sticking to a strict set of principles, Newton Group Transfers has become synonymous with excellence in the timeshare recapture industry in less than a year.

In other words: It may seem boring, but doing your homework always pays off!

Thankfully, with Newton Group Transfers, you can do all of your research in one spot! When you visit newtongrouptransfers.com, you can learn about the history of our company, our commitment to our customers, and how our process operates. If you’re convinced that we’re the right company to assist your family we invite you to participate in a webinar or call us at (866) 202-1106. Our expert Customer Advisors are waiting to answer any questions you may have and get you on the track to financial freedom immediately.

8 Reasons to Reconsider a Timeshare

Hello friends!  I’ve compiled a list of 8 reasons to be cautious when thinking about purchasing a timeshare.  None of these pitfalls are new, but they seem to be just as true today as they have ever been.  Unfortunately, we continue to hear these same complaints from our customers on a daily basis, but hopefully, a few of you will read this blog and take a moment to evaluate your options.

Timeshares are NOT an Investment

As expressed time and time again, timeshares are a liability, and their financial value depreciates over any given period of time.  This means that the instant you purchase a timeshare, the value plummets, along with the resale value.

Maintenance Fees

Fees that were promised to remain low during the initial sales pitch can begin to spiral out of control rather quickly.  Along with general maintenance fees that will surely rise, there are other fees to keep in mind, such as special assessments, taxes, membership fees, and exchange-transaction fees.  The owner must pay these fees whether they use their timeshare or not.

Travel Expenses 

Another item that is often overlooked by overzealous timeshare purchasers is the question of travel.  Sure, it might seem like an affordable vacation locale if one can account for the annual taxes and fees, but people often forget how expensive it is to travel to certain destinations.  As anyone with a timeshare can tell you, airfare is not cheap and neither is fuel.

The Timeshare Industry is Complicated

The timeshare industry is extremely complicated, and entering into a contract should not be taken lightly.  Resort developments are counting on their prey to not do their homework, thus making them easier to sell.  If one isn’t well versed in the language of timeshares (e.g. fixed-week, point based systems, leased timeshares), it becomes even easier to fall victim to manipulation and predatory sales tactics.

You’ll Likely Never Break Even

Timeshares seem cheap at the initial time of purchase, but when compared with the cost of practical hotels over the lifetime of the contract, it’s likely that you’ll never reach a break-even point.

Little Vacation Flexibility

Trading your time for a unit in a new vacation location is not as easy as a timeshare salesperson would have you believe.  It could nearly a year’s worth of advanced planning, and trading costs can add up quickly.  Further, there’s no guarantee that you’ll be able to get your desired location during your desired time.

Timeshare Prices are Negotiable

Even more than regular real estate or the local farmer’s market, the sticker price on a timeshare is highly negotiable.  The salesperson doesn’t expect you to pay the initial price tag on the timeshare, and they are willing to come down on it.  However, since timeshare salespersons expect to negotiate, there is a high mark up on the original price of the property.

Timeshares are Nearly Impossible to Get Rid Of 

A timeshare is a liability, not an asset.  Therefore, the value will only depreciate over time, which makes the resale market virtually non-existent.  There are many listing agencies and exchange companies who will make empty promises about the value of your property and the abundance of buyers lining up to purchase it, only to cash a large check without providing adequate service.  The bottom line is that it is nearly impossible to sell a timeshare.  The market has decreased significantly and shows no signs of rebounding.

This list is by no means exhaustive, but it should be a starting point for anyone interested in taking an honest look at what timeshare ownership really involves.  Timeshare ownership can be a wonderful experience for many families, but it is important to do all the necessary research before signing on the dotted line.  If you or someone you know is locked into a timeshare contract and looking for an exit solution, please contact Newton Group Transfers at (877) 354-4321.

ARDA and the Timeshare Transfer Industry: United at Opposite Ends of the Spectrum

“In the end, you make your reputation and you have your success based upon credibility and being able to provide people who are really hungry for information with what they want.” – Brit Hume

A Credible Organization

Credibility breeds trust, and trust is the unifying element of any great relationship. Throughout our lives, we strive to build this credibility with friends and family, to build it with our coworkers, and to build it in our business enterprises. Without trust, creating a strong network of communication would be impossible. The key to developing an association based on good faith is taking an honest approach in everything we do. Is it any wonder, then, that trust is so difficult to establish in the timeshare industry, a veritable desert of ethical conduct?

However, there are a few individuals and companies in this seemingly desolate landscape that are working to bring a degree of trust and integrity to the timeshare arena. One such group that has been establishing standards for good business practices for over forty years is the American Resort Development Association (ARDA).

Based in Washington D.C., ARDA is a trade association that seeks to cultivate the progress of the timeshare industry throughout the United States. In short, they work to establish business standards throughout the industry via several different means. They were first established in 1969 as the American Land Development Association, and today they have grown to include nearly 1,000 corporate members. ARDA’s primary purpose, as declared in their mission statement is to “foster and promote the growth of the industry and to serve its members.”

A Necessary Good

A lot of people might read that quote and immediately think that there is some sort of spite between ARDA and the timeshare transfer industry (with ARDA taking the side of the resort developers and the transfer industry taking the side of angry consumers), but this just isn’t the case. Like any competitive industry, there are always going to be multiple layers and multiple perspectives. We live in a world of opposites, and these opposites are in place to maintain a sense of harmony, a sense of balance throughout the universe. Why would the timeshare business be any different?

The fact is, sometimes timeshare owners simply want out of their contracts.  Maybe it’s become too expensive, or maybe the owners just don’t have the time to use it, but either way, they don’t want the property anymore. With the resale market being what it is, being released from a timeshare contract would be nearly impossible if it weren’t for transfer companies. We hope that ARDA continues to help the timeshare business grow and prosper, but for individuals who feel that they’ve erred in purchasing a vacation property, we’re here to help.

Fostering the Industry

ARDA’s mission is accomplished through a number of different avenues. For one, ARDA serves as a highly influential advocate on behalf of resort developments and consumers by engaging in lobbying efforts centered on legislative and regulatory issues such as “unwarranted taxes and excessive regulation.” They also work to enact public policy involving the timeshare industry and timeshare owners.

Further, ARDA seeks to educate its members with timeshare information by conducting industry research, hosting webinars, and by publishing Developments magazine, “the voice of the timeshare industry.” Throughout the year, there are ten issues circulated that are full of informative articles that focus on industry trends concerning both consumers and developers.

Finally, ARDA also offers a major networking opportunity by holding the ARDA Annual Convention and Exposition. The conventions consist of dozens of educational seminars that cover marketing, technology, finance, and design, among many other topics.  Last year, the convention was held in Las Vegas, and this year’s conference will be held in Hollywood, Florida – just north of Fort Lauderdale.

ARDA isn’t only concerned with catering to the corporate side of the industry, however. ARDA-ROC (Resort Owner’s Coalition) works to defend timeshare owners against legislation that could have potentially disastrous consequences. According to their website, through ARDA-ROC, “Owners can be part of an effective grassroots lobbying coalition of timeshare unit owners dedicated to preserving, protecting, and enhancing vacation ownership.” This organization gives owners a significant political voice in an industry where it can sometimes be difficult to be heard.

A Trusted Leader

With all of this in mind, it’s easy to see why ARDA is such a major player in the timeshare industry. They maintain an influential presence in Washington, and they offer a valuable service to their many constituents. They are a trusted leader in the timeshare development arena, and they are fighting to protect the interests of the industry and their members. At the end of the day, their primary goal is a noble one – to enhance the vacation resort development industry – and we applaud them in this endeavor.

At Newton Group Transfers, we have a distinct appreciation and respect for ARDA (although we do not endorse them, nor are we endorsed by them). They attempt to regulate the timeshare industry in a manner that they feel best represents their members’ wishes, and they’ve worked tirelessly to establish a great deal of trust and credibility, which is always an admirable enterprise. In fact, we’ve learned a lot about consumer advocacy from ARDA that we attempt to implement in our own business practices on a daily basis.

We don’t believe that the resort development advocacy that ARDA strives for and the consumer rights that Newton Group Transfers works to protect are mutually exclusive. Although the timeshare transfer business may occasionally be at cross purposes with ARDA, we feel that our two general ethos align pretty closely. In fact, we think that the timeshare transfer business and ARDA balance each other out perfectly, as we are both dedicated to increasing the credibility of the industry. Newton Group Transfers advocates for the group of owners that no long have a need for keeping their timeshares, while ARDA strives to advocate for the entire industry as a whole, which, in some cases may not specifically address the segment of owners who are seeking an exit. We seek to gain our client’s trust through our core values of integrity and transparency, while ARDA seeks to gain the same through similar upstanding ethical conduct.

A Model of Excellence
So, there you have it. ARDA has over 40 years of timeshare-related regulation under their belt. They’ve established themselves as leaders in the timeshare industry, and they’ve built credibility along the way, both in Washington and throughout the country. They stand for something in a business that often shudders when asked to perform with integrity. Although Newton Group Transfers hasn’t been around as long as ARDA, we’re dedicated to doing things the right way, and we plan on using ARDA as an ethical model in our pursuit of excellence as we continue to perform a valuable service on behalf of our customers.

ARDA attempts to maintain and enhance the timeshare experience, while Newton Group Transfers offers assistance to those seeking an exit. We’re both looking out for the best interests of our clients and members, and, at the end of the day, it’s a commitment to remaining true to our core values that really counts.

With nearly a decade of experience, we have accumulated a vast expanse of knowledge on the industry, and, as a result of this experience, we have heard literally thousands of different owner's
stories. Many of these stories detail an ownership experience that was everything the consumer could have asked for and more. This is the type of experience that ARDA has been fighting for throughout their history. Unfortunately, not every story we hear has a happy ending. Sometimes, timeshare owners are desperate to get rid of their properties, and we feel that we give them the best opportunity to do so in an honest and trustworthy fashion.

If you and your family feel like you may have reached this point, please contact us at (877) 354-4321, or visit us online at newtongrouptransfers.com.