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

February 13, 2008

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.

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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18 comments

  • http://www.tropicaltravel.net Annette from Tropicaltravel.net

    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.

  • Charles

    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.

  • http://www.startgo.com Kango Suz

    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.

  • Kaye

    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

  • Mary

    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?

  • Ed

    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

  • http://www.TimeshareRevealed.com TimeshareRevealed.com

    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

  • http://none Cleanranger

    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

  • Roxanne

    Thank you for publishing honest news on this site!

    A few years back my husband insisted that we buy a Fairfield Resorts timeshare with the option of also using RCI resorts around the world. The first three years were great. We made reservations with no problems. However, then they sold to Wyndham and now I cannot make any type of reservation using my points. I have three years saved up and I am going to lose one week on December 31. I have called to see where in the world I can go and there are “no availabilities for up to two years.” This means I will lose more points next December. We paid $15,000 and now we cannot go anywhere on our timeshare. I tried a night stay in a cheap motel and could even get a room there but when I called it directly, they had plenty of space! Wyndham and RCI was willing to book me a room for more money than it would have cost me to do it myself! Also booking with airlines directly is hundreds of dollars cheaper than to use their so called “discounted” service.

    My father told me about his friend who had an RCI timeshare that he stopped making the $80 monthly maintenance fees on because he had a stroke and he was financially strapped with medical bills. RCI didn’t care about his health, and neither does the government and they calously came after him legally for the money and ruined his credit. Once you buy one of these rip off scams, you cannot undo it. They are a blood sucking leach. The government which is making millions in taxes on this will not do anything about consumer fraud. The United States is so corrupt!

  • Carolyn Leyboldt

    We were totally scammed by a salesman for Coral Resorts, Hilton Head SC
    When we complained we were told he no longer worked for them and they were not responsible for anything he said or did concerning our purchase of their product and the trade-in of another product we owned. We disappointed our four combined families by not really having the place in Hilton Head that we had promised them.
    It is a little known fact that the salespeople are “independent contractors” and the company is not responsible for them. Scott Keller was very good at what he does which is scamming people that think they are smart enough to know how to buy a timeshare! Thankfully, he is the only person who ever scammed us, and it was a
    sad, very expensive lesson to learn at our age.

  • http://rcivip.com RCI VIP

    If something sounds too good to be true, it probably is – and this is most certainly the case with timeshares! I had thought about purchasing a timeshare awhile back until I started doing research and discovered all of the scams and injustices prevalent in timesharing today. For those interested in gaining more insight into the world of timesharing, check out RCI VIP – http://rcivip.com One of my favorite articles is titled 5 Timeshare Lies – http://rcivip.com/2008/top-5-timeshare-lies/ – which shows a few of the many ways in which timeshare salespeople try to scam unsuspecting vacationers in hopes of personal riches. Buyer beware, timeshares are a bad investment.

  • Amber Taylor

    My husband Earl and I took a vacation to Mexico. What appeared to be a relaxing trip, turned in to a nightmare on the second day when we were invited to a ¨Free Breakfast¨ for ninty minutes and cross our path with a real scam artist who convice us to purchase $36.000 two Bedroom unit we don´t need with a scamming investment pitch. we would rent each week for $2.500 and have it paid for in three years. We sign a waiver rescinding our 5 day cancellation right.

    Twelve days after, when we got back and realized we couln´t afford this purchase, we tried to cancel, no one from Mayan Palace accepted our Cancelation petition.
    although our five days were up and didn´t have the waiver, we contacted a Law Firm who specializes in timeshare fraud and within 15 days we were able to get our Down payment back. the link is http://www.GonzalezGonzalezLawFirm.com

    Ask for Cindy. She was very proffessional and empathetic. Hope they can help you with your issues.

    Best Regards!!!
    Amber Taylor

  • Shaun

    Hi There, I made the mistake of buying a timeshare from Point to Point Destinations in Vancouver and I am very disappointed. It has turned out to be nothing that they claimed it would be. I have joined a group of others that are currently suing them. If you have also purchased a timeshare from Point to Point Destinations (West coast Timeshare) and are not happy with what they sold you or the way that they sold it to you I would like to help you to get your money back. Please email me anytime I will give you the information. Thank you Shaun timesharereturn@gmail.com

  • Tom

    Hi There, I believed this is my most unhappy experience to be with the Point to Point Destinations in Vancouver ( West Coast Timeshare Ltd. ). We were totally tricked into the transaction of signing the contract. The contract itself was totally set tricky tricky, it comes with a Company’s Disclosure Statement written in a CD that was put in a small-side-zipped-log bag which the salesman wish you never see it, of course no body had mentioned about the CD. The contract signed is just the outline and telling nothing about the 7 days cooling period to cancel our purchase. I had not seen the CD, and never had known about the 7 days cancellation policy. Anyway, I had request to cancel just the second days by calling the sale, and we had a meeting on the 4th day with the sale, but they had used all kinds of tricks to trap us tightly with the purchase we really don’t want to. Our cancellation right within the 7 days had been refused by their lie because we just didn’t know about the 7 days rescinding policy. We negotiated with the company many times, but they said that we didn’t had written of request to cancel so we won’t be able to get out but have to keep it and abide the signed contract.

    It is not only the saleman but also the whole company, they are all big liers. If you are going to the presentation, take the shit and run, if you have signed the scam tricky contract and not happy with them, please email me, we are going to take legal action to fight against the company. We as the victims also should stand together one day at their location with your experience and slogans, if you also the victims, you are not alone, don’t be quiet….we should stop them from keeping the dirty trick now. my emall is: victimoftimeshare@yahoo.ca

  • Carver

    As an attorney who specializes in business transacations and litigation I cannot strongly enough state that time shares are among the biggest scams around. Is it possible to get a good deal on a timeshare. Yes. However, there are a few caveats:

    1. Avoid anyone that requires an immediate decision.
    2. Any deal which sounds too good to be true probably is
    3. Can you really afford this purchase
    4. Avoid “free” presentations. I mean really, no one can afford to stay in business giving away away anything of value
    5. Serious consider the resale market.

    Basically, just because you’re satisfied with something doesn’t mean its not a scam.

  • Michael and Julia

    Coral Resorts are fraud.

    I hope that our experience will help anyone who deals with Coral Resorts, Hilton Head SC.
    We do not know the full name of the agent ( Jack ). When we felt something is wrong and asked for the business card he promised to provide it later.
    We have already two time shares and we do not need to have the third one.
    On the presentation he offered ot buy out timeshare and provide us with more benefits using Hilton Head property ( we told about the second timeshare later ) having an extra week and pay only $300 maintenance fee and using the
    developer week which we can rent for profit. The Purchase Proposal looks like we buy the their timeshare for the proposed price. Verbally we were told that the property we already have will be sold by their broker and we will be even. Checkin the internet using my blackberry I noticed fraud information and the “deal” was cancelled. We suggested the broker sells our property first and we can then buy but Jack said that they can not do it this way…

    Coral Resorts still are fraud, fraud, fraud.

  • Donna

    We signed a contract then read your comments before 5 day contract cancellation period expired. We sent the certified letter today. Has anyone had problems with getting them to honor cancellation policy in contract?

  • Norm

    I purchased couple timeshares in Mexico in 2003 and 2004. About 16,000 each. Used them a few years but then started to try to exchange to different places. Had . no problem being able to exchange for “winter” resorts in the summer, or “summer” resorts in the winter (which we never did). But for a charge of anywhere from $299.00 (last call) to $1500.00 (getaway) we could get to some of the resorts we would have preferred. So last year I started “advertising” everywhere attempting to sell these properties, which are choice locations in Cabo and Mazatlan. Nothing! And I kept lowering price until they were almost a “giveaway”. I attended a couple advertised meetings with companies that gaurenteed they would “take my timeshares off my hands”. That was a waste of time because I couldn’t see paying them as much as $6,000.00 each (I’m not lying) to take them “off my hands”. My wife finally stepped in and said, “I’m tired of your laying in bed, worrying about this situation- have you tried writing to the resorts in question and asking if they will release you from your timeshare contract”? DUH! So I did! Long story short– both of the resorts agreed to release me from my contracts. But why wouldn’t they– they both got $16,000.00 out of me.

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