SCAM: Timeshare Victims Compensation Fund

Consumer Defense Resource Group

There is a scam currently being perpetrated against people who have lost money through timeshare frauds. The perpetrators apparently have obtained a list of names and contact information for people who lost money. So, when the unsuspecting victim receives a phone call, they assume it must be legitimate since the caller appears to know things that only an official government agency would know.

Apparently some funds are being dispersed, perhaps to establish the victim’s trust prior to stealing their money — taking back the funds that were disbursed as well as additional funds paid.

The perpetrators of this scam claim that there is a Timeshare Victims Compensation Fund. If you do a Google search for Timeshare Victims Compensation Fund, you’ll notice that no official government website shows up with any information about such a fund.

UPDATE: A group of criminals, thought to be operating out of Miami, Florida, claiming to be the Consumer Defense Resource Group, are engaged in the above illegal activity. Please be advised that they are not affiliate with us or ResourcesForLife.com. For more information, read our statement.

* * *

The following information is from an FBI notice on 15 January 2012 [source] which was also posted on the IC3.gov website:

Timeshare Marketing Scams

01/25/12—Timeshare owners across the country are being scammed out of millions of dollars by unscrupulous companies that promise to sell or rent the unsuspecting victims’ timeshares. In the typical scam, timeshare owners receive unexpected or uninvited telephone calls or e-mails from criminals posing as sales representatives for a timeshare resale company. The representative promises a quick sale, often within 60-90 days. The sales representatives often use high-pressure sales tactics to add a sense of urgency to the deal. Some victims have reported that sales representatives pressured them by claiming there was a buyer waiting in the wings, either on the other line or even present in the office.

Timeshare owners who agree to sell are told that they must pay an upfront fee to cover anything from listing and advertising fees to closing costs. Many victims have provided credit cards to pay the fees ranging from a few hundred to a few thousand dollars. Once the fee is paid, timeshare owners report that the company becomes evasive—calls go unanswered, numbers are disconnected, and websites are inaccessible.

In some cases, timeshare owners who have been defrauded by a timeshare sales scheme have been subsequently contacted by an unscrupulous timeshare fraud recovery company as well. The representative from the recovery company promises assistance in recovering money lost in the sales scam. Some recovery companies require an up-front fee for services rendered, while others promise no fees will be paid unless a refund is obtained for the timeshare owner. The IC3 (Internet Crime Complaint Center) has identified some instances where people involved with the recovery company also have a connection to the resale company, raising the possibility that timeshare owners are being scammed twice by the same people.

If you are contacted by someone offering to sell or rent your timeshare, the IC3 recommends using caution. Listed below are tips you can use to avoid becoming a victim of a timeshare scheme:

Be wary if a company asks you for up-front fees to sell or rent your timeshare.
Read the fine print of any sales contract or rental agreement provided.
Check with the Better Business Bureau to ensure the company is reputable.
To obtain more information on Internet schemes, visit www.LooksTooGoodToBeTrue.com.

Anyone who believes they have been a victim of this type of scam should promptly report it to the IC3’s website at www.IC3.gov. The IC3’s complaint database links complaints together to refer them to the appropriate law enforcement agency for case consideration.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s