Timeshare Resale Scams Targeted by Legislation

Senate Majority Leader Andy Gardiner, R-Orlando, and Rep. Eric Eisnaugle, R-Orlando, have filed legislation intended to eliminate loopholes they and state Attorney General Pam Bondi say have allowed scam artists to thrive on people seeking to quickly sell timeshares.

The legislation targets people and companies who contact timeshare owners, claim to have a buyer available if the timeshare owner wants to sell, but the timeshare owner must pay a set amount of money upfront.

Bondi noted that since she took office in January, her office has received 6,863 complaints regarding timeshare resale companies. Last year, the office fielded 12,000 complaints on the same topic, four times the next four highest complaint categories combined.

We cannot allow unscrupulous individuals to mislead and defraud our consumers who are attempting to sell their timeshares, many of whom have invested their life savings into their dream vacation homes, Bondi said.

Under the proposed legislation:

A timeshare resale advertiser may not misrepresent a pre-existing interest in the owners timeshare.

A timeshare resale advertiser may not mislead a customer as to the success rate of the advertisers sales.

A timeshare resale advertiser may not provide brokerage or direct sale services.

A timeshare resale advertiser must honor a cancellation request made within seven days following a signed agreement.

A timeshare resale advertiser must provide a full refund by a timeshare owner within 20 days of a valid cancellation request.

A timeshare resale advertiser must not collect any payment or engage in any resale advertising activities until the timeshare owner delivers a signed, written agreement for the services.

A timeshare resale advertiser must also provide a full disclosure statement printed in bold type, with no smaller than a 12-point font, and printed immediately preceding the space provided for the timeshare owners signature.

A timeshare advertising agreement must be put in writing.

A company that violates these provisions has committed a violation of the Unfair and Deceptive Trade Practices Act with a penalty not to exceed $15,000 per violation.