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Travel and timeshare fraud cases more than double in 2007, says government

The number of travel and timeshare complaints filed with the Federal Trade Commission nearly doubled last year, jumping from 6,712 cases to 14,903 cases. As a whole, the travel category rose from 12th to 9th place, accounting for roughly 2 percent of all consumer grievances received by the federal agency.

The 2007 figures, released today by the FTC, show identity theft remains the top category for consumer complaints, accounting for 258,427 cases, or roughly 32 percent of grievances. That’s up slightly from last year’s 246,035 complaints, but a smaller overall percentage of the complaints received by the agency.

Consumers reported fraud losses totaling more than $1.2 billion, according to the FTC. The median monetary loss per person was $349.

Albany, NY, drew the most FTC complaints in 2007, with 642 grievances, or 575.8 complaints per 100,000 people. Greeley, Colo., came in second, with 1,359 grievances, or 573.8 complaints per 100,000 people.

Although no reason was given for the spike in travel complaints, 2007 was one of the worst years for airline service in recent memory.

Here’s the entire 2007 report as a PDF.

February 13, 2008 · Filed under: Elliott Blog · Tags: , , ·

Comments

8 Responses to “Travel and timeshare fraud cases more than double in 2007, says government”

  1. On February 13th, 2008 at 12:58 pm Annette from Tropicaltravel.net said

    Timeshares are one of the main annoyances of travelling somewhere popular. We always have to warn our clients when they travel about the possible, and un-avoidable, hassel of having to deal with the un-relenting people who work for the time share companies, and that swarm and weed their way into airports, and hotel entrances to try to catch you when your off-guard.

  2. On February 14th, 2008 at 10:50 pm Charles said

    Timeshares have to be the biggest fraud ever invented - they depreciate faster than a new car being driven off the lot. If someone tries to get you to a timeshare/vacation club presentation while on vacation - run! I have never known ANYONE who bought a timeshare and was happy with their decision.

  3. On February 17th, 2008 at 12:53 am Kango Suz said

    I’ve always wondered if Timeshares wern’t fraudy. The whole idea just seems a bit weak to me. I mean, is someone going to really want to trade you their Hawaii week for your Death Valley week? really.

    That said, several of my friend’s parents have them and like them. So long as they are in an area where you want to go each and every year. Not exactly my bag.

  4. On February 17th, 2008 at 1:09 pm Kaye said

    We have owned a timeshare in New Orleans for more than 25 years, we love it!! Have met some great people and made lifetime friends. We recently bought 2 timeshares in Florida in a location that we will want to return to for years to come.

    However, we only rarely trade and did not buy timeshares for that reason. Also, they were not bought as an investment and should not be as you will probably be disappointed when you want to resell.

    Signed: ANYONE

  5. On February 18th, 2008 at 10:46 am Mary said

    I think I missed something here… I thought this post was reporting on statistics for consumer fraud complaints (not customer service complaints). How is poor airline service relevant?

  6. On February 19th, 2008 at 6:43 pm Ed said

    I have to agree with Kaye. I own three timeshares and while I don’t believe that I completly enjoy them all, I will have to say, I’ve never been disappointed. My timeshares are in Virginia Beach and Orlando, not Death valley, but I can say that both my Orlando timeshare and my Va Beach timeshare have gotten me to Hawaii on several occations, Kauai and Maui to be exact. I’ve traded my VA Beach one to multiple locations including overseas to Germany, Las Vegas several times and islands in the caribean. Sure, it can be a hassle to coordinate trading, but if you use a reputable trading organization, you can basically get what you want..if you are reasonable…I have never been turned down for a trade.
    If you buy a timeshare for the investment, then no…it’s not a good buy…it will NOT go up in value…but people buy cars all the time, and they don’t go up in value either! Buy your timeshare, and use it! It’s as simple as that! The same way you buy a car and use that!
    Sure, there are some cars that *may* go up in value…and there are some timeshares that may go up in value too! but it’s a risk.
    Just enjoy your vacations…that’s what timeshare is all about!
    Here is an example.
    Last september, I used my timeshare branded rewards credit card points to redeem two round trip tickets to Hawaii (Maui), I traded my Orlando timeshare for a two bedroom condo on the beach in Kihei and had enough points on my rewards credit card to get me a rental car for a week. Basically, I had a free week in Hawaii for the cost of the trade transfer! It works and is worth it if you like to vacation!
    Ed
    web/gadget guru

  7. On July 20th, 2008 at 5:13 pm TimeshareRevealed.com said

    I think the government’s numbers are very underestimated because according to my knowledge, very small percentage of people who think that they were scammed actually report it or do much about it.

    Anyway, after i’ve heard from so many people, i decided to post my own experience and facts about a Vancouver based timeshare company calle Point To Point Destinations (PTP Destinations, West Coast Timeshare)

    Check the facts here:

    http://www.TimeshareRevealed.com

  8. On September 9th, 2008 at 5:56 pm Cleanranger said

    When once you purchase your timeshare you cannot get out of it.
    When you do not pay the maintenance fee, your credit rating is fucked by companies like WEST GATE ORLANDO FL.
    BLUE TREE RESORT, BUENA VISTA ETC.

    ONLY GOD CAN STOP THIER GREED.
    BEST WISHES,
    CLEANRANGER

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