During the last week, timeshare resale related stories have appeared in the news twice – which is actually a lot for a niche industry! Additionally, both stories relate to previous posts here at Helptimeshare.com:
The Good
Back in May, I pointed out the threat posed to timeshare owners by timeshare recovery companies. Yesterday this issue was highlighted in an article by Diane Lade of the Sun Sentinel. In it, she states that the “Florida Attorney General has received more than 600 complaints in the past 12 months” regarding recovery companies. While it’s great to see these fraudulent entities receiving some attention from the media and regulators, I have to wonder how many thousands of timeshare owners have been victimized in the four months since I originally reported on the problem. Lade goes on to point out that some timeshare resale companies have “closed down but then reopened as a timeshare recovery business” – an astute observation echoing my post describing a recovery company as “a failed timeshare resale company.”
According to Lade, Florida Department of Agriculture and Consumers Services regulators are hard-at-work investigating “about 20 timeshare recovery businesses.” Hopefully, these efforts will protect timeshare owners from being conned out of their hard-earned money. …and Kudos to Lade and the Sun Sentinel for calling attention to this phenomenon!
The Bad
On September 3rd, an article by Jon Burnstein (also of the Sun Sentinel), provided some follow-up information on the ongoing timeshare fraud saga of Timeshare Mega Media. In what the FTC has called a “naked fraud,” Timeshare Mega Media contacted timeshare owners claiming “we have a buyer for your timeshare.” According to Burnstein, the operation collected an “estimated $5 million in less than a year,” before closing their doors in May 2010. Not to sound like a broken record, but HelpTimeshare.com reported on the “It’s Already Sold” scam back in February of 2010. Apparently, our warning went unheeded by some 10,000+ consumers in Florida alone… More to the point of why I consider this a ‘bad’ story, Burnstein repeatedly refers to Timeshare Mega Media as a “timeshare resale company.” He goes on to refer to the timeshare resale industry as “fraud-riddled,” and states that “many of the unscrupulous resale companies operate the same way.” I suggest that, for anyone in the media, using this sort of language is, at best, irresponsible: Timeshare Mega Media was clearly anything but a timeshare resale company. According to Burnstein’s own article the company was no more than a criminal front, operated not by timeshare industry professionals but by felons and associates of major crime families.
Please, call them “fake” timeshare resale companies or something, but a distinction needs to be drawn by the media between criminals and timeshare resale companies. There is nothing to suggest Timeshare Mega Media, or its affiliates, had any connection whatsoever to the actual timeshare resale industry. No one in the press refers to the Swiss Watch Industry as “fraud-riddled,” though fake Rolex watches are still a-dime-a-dozen throughout the U.S.
September 7th, 2011
Celebrity Resorts LLC made headlines in March of last year when it filed for Chapter 11 bankruptcy protection, but according to an Orlando Sentinel article financial problems may have started as early as 2008. While these types of bankruptcy filings rarely affect individual ownerships, they certainly undermine consumer confidence in a specific resort or developer, bringing down resale values. For owners of Celebrity Resorts timeshares, the company’s recent reorganization is welcome news: The new company is called Legacy Vacation Club.
Will the new name mean a new legacy for Celebrity Resorts and its owners? Quite possibly. The family-owned company has been selling timeshares for over 30 years, making it one of the most experienced resort developers in America. According to company lawyers, Celebrity Resorts exited bankruptcy intact, and with no job losses. In addition, Legacy Vacation Club has announced plans to implement its own internal “points” program, that will offer owners more flexibility. What may ultimately mean success for Celebrity Resorts, however, will be whether it can adapt its sales strategy to the tastes of a new generation of buyers. There are only so many upgrades that can be sold to aging timeshare owners; lasting success for any timeshare developer hinges on bringing new and younger buyers into the fold.
Just as generational differences have proven difficult for the timeshare industry, it’s generational differences within the Meyers family that have been blamed for the bankruptcy and subsequent reorganization of Celebrity Resorts. Brothers Neil and Hillel Meyers were the original developers of Resort World, predecessor to Celebrity Resorts, and remain legendary figures in Orlando’s insular timeshare community. Reportedly, disputes between Hillel Meyers and Neil Meyers’ son Jared led to partitioning the company in 2003. During last year’s bankruptcy proceedings, control of the company was hotly disputed between various family members, but the company’s reorganization plan approved this January leaves 34 year-old Jared Meyers in control as President and CEO. With a gen-xer at the helm, perhaps Legacy Vacation Club will succeed where Celebrity Resorts failed; retooling the timeshare sales process for internet-savvy younger buyers.
For now, all former Celebrity Resorts properties have been renamed to reflect the Legacy Vacation Club brand, and all resorts are now listed with both RCI and Interval International. Existing owners that want to sell their Celebrity timeshares will, no doubt, benefit from the re-branding; gradually escaping the stigma of bankruptcy. And while there are parts of the timeshare community that might still be skeptical of the new entity, I’m excited to see what the future holds. Best of luck to Jared Meyers and Legacy Vacation Club!
Popular Legacy Vacation Club Timeshares Include:
Legacy Vacation Club Orlando – Oaks
Legacy Vacation Club Orlando – Spas
Legacy Vacation Club Steamboat Springs – Hilltop
June 21st, 2011
Timeshare recovery companies pose a new threat to timeshare owners; undermining resale values, and negatively affecting public trust in the secondary timeshare market.
Timeshare resales are still relatively new; after all, timeshare itself has only been in America for around 30 years. Added to that, there was no affordable way to mass-market anything prior to the advent of the Internet, or more specifically before Google defined the modern search engine. For all intents and purposes then, the secondary market for timeshares is about 10 years old. As with any emerging market, timeshare resale has faced obstacles and impediments, along with some spectacular successes. Owners that decide to sell find themselves faced with conflicting information, an abundance of uncertainty, and, yes, some scams to be avoided.
While most objective observers will admit that timeshare scams are the exception, rather than the rule, they exist, and many an unsuspecting owner has been led astray by silver-tongued fraudsters. Thankfully, the timeshare resale market is evolving and growing. Legitimate and committed companies are making a difference every day. That said, owners still have to be careful… Many have paid fees to have their timeshares advertised or marketed, but are still waiting for a buyer. During this time is when I think owners are most vulnerable, and this is the very vulnerability that timeshare recovery companies exploit.
Just what is a timeshare recovery company? Typically a failed timeshare resale company with some sort of loose association with a law firm. These recovery (or timeshare advocacy) companies cold-call timeshare owners offering to ‘recover’ funds paid to a timeshare resale company. The catch is that their services require the owner to pay yet another upfront fee. If that sounds fishy to you, then you’re not alone. In a recent case involving a timeshare recovery company that came before the U.S. District Court, Middle District of Florida, the Judge included the following in his report:
The Court views Plaintiff’s description of its business with some skepticism. The intended customer base includes individuals who previously made disappointing purchases of time share units (often as the result of sophisticated sales techniques) and who thereafter availed themselves of high priced resale services that failed to deliver as promised. Such individuals must be seen a vulnerable population. Plaintiff’s business includes inducing these individuals to purchase yet additional services with respect to their time shares.
Beyond the dubious nature of timeshare recovery companies, the strategies these firms encourage owners to use in order to pursue a refund often constitute criminal behavior! Owners are given form letters, and told to sign and mail them to the timeshare resale company in question. These letters regularly violate state and federal extortion laws, contain slanderous statements, and constitute defamation; making the timeshare owner themselves criminally liable, and subject to prosecution.
There are free and legal ways for owners to address grievances with resale companies. By getting involved with timeshare recovery companies, owners have nothing to gain and potentially everything to lose… Consider yourself warned.
May 26th, 2011
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