If you think the bottom fell out of the real estate market, just think what happened to the timeshare market. Hundreds of thousands of consumers have found themselves stuck with timeshares they would like to sell, if only there were a market for them.
This has created fertile ground for companies promising quick and lucrative solutions that usually turn out to be little more than shams.
In one such case, Vacation Property Services, Inc., has been permanently banned from the timeshare resale and rental business, and from all telemarketing, under a settlement with the Federal Trade Commission. The settlement followed a court ruling that the company violated the FTC Act and Telemarketing Sales Rule (TSR). Â
Ivette of New City, NY, described her experience with the company in a ConsumerAffairs posting: "The gentlemen promised that my time share will be sold within 90 days. It has been several years and I am still waiting."
Kristale of Ft Washington, MD, had a similar experience: "I paid $700 for this company to sell my Orlando timeshare unit. It included 2 bonus weeks for $17,000 or to rent it for $750 a week. This was over 5 years ago."Â
The FTC charged that Vacation Property Services made tens of thousands of unsolicited telemarketing calls to timeshare owners falsely claiming that they already had, or could quickly find, buyers for the owners' timeshares. The defendants demanded that consumers pay a large up-front fee to facilitate the sale.
The FTC's complaint charged that the company and its manager and owner, Albert M. Wilson, misrepresentied the company's refund policy and the existence of potential buyers. The complaint also charged the defendants with calling hundreds of thousands of consumers whose phone numbers are on the FTC's Do Not Call Registry.
In May, the United States District Court for the Middle District of Florida entered a summary judgment order against Vacation Property Services, Inc. and Wilson. The court held that the company deceived consumers into paying large up-front fees by claiming that it had buyers lined up or would find buyers to purchase consumers' timeshare properties, and that it had violated the TSR by calling telephone numbers listed on the National Do Not Call Registry.
The settlement order announced last week resolves the FTC's remaining claims against Wilson. The order permanently bans him from all telemarketing and from participating in the timeshare resale and rental business. It also prohibits him from misrepresenting material facts about any goods or services, and from selling or otherwise benefitting from consumers' personal information.
The order imposes a judgment of more than $4.2 million, which will be suspended when Wilson has surrendered $120,000, a 2002 Porsche 911, a Spectre Sportfish boat, and his interest in Vacation Property Services.
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