Attorney General Pam Bondi turned her campaign against timeshare-resale fraud into some truly crackerjack legislation, but it hasn't gathered the accolades her pill mill bill did a year ago.
I hope it will.
Both bills -- pill-mill and timeshare-resale crackdowns -- go a long way toward sanitizing the tainted national image of the Sunshine State as a place where scoundrels, sharps and all manner of swindlers come to ply their trade, virtually in plain sight. But Bondi admits straight-out that timeshare-resale monkey business is the most frequent fraud complaint her office gets.
Right now the FBI is getting all the action.
Last October, for example, after a joint FBI-Fort Lauderdale Police Department investigation, 13 individuals from a Florida timeshare resale company were charged in federal court in Miami in a massive telemarketing scheme to defraud timeshare owners trying to sell. The Federal Trade Commission then filed a complaint against the defendants company -- Timeshare Mega Media -- to shut operations down. Those operations allegedly had bilked millions from owners across the U.S.
Earlier this year, the FBIs Internet Crime Complaint Center issued an alert on rapidly increasing timeshare telemarketing scams. Victims were scammed by criminals posing as representatives or employees of timeshare resale companies. The bad guys promised a quick sale, often within 60-90 days. Some victims reported that sales reps pressured them into a quick decision, claiming they had a buyer on the premises. Owners who agreed to sell had to pay an upfront fee -- anywhere from a few hundred to a few thousand dollars, and many gave up their credit card numbers.
The Timeshare Resale Accountability Act doesn't really need a boost from me or any opinion writer at this point. It's a slam dunk. Sponsored by Eric Eisnaugle, R-Orlando, it passed the House unanimously more than two weeks ago and with Majority Leader Andy Gardiner, R-Orlando, leading the charge in the Senate, it likely will breeze through that chamber, too.
Still, I can't resist.
This bill is essential in stopping unscrupulous individuals from misleading and defrauding our consumers who are attempting to sell their timeshares, Bondi said after her bill had passed the House.
I feel like she was talking directly to me, albeit a little late.
As a once-upon-a-timeshare owner who tried for years to sell, got taken and ended up giving our unit away to charity for a small tax break, I have a special appreciation for Bondi, HB 1001 and SB 1408.
Florida should have addressed timeshare-resale fraud a long time ago. The timeshare industry is huge, a $10 billion-a-year business nationwide, but by far it has its largest footprint in Florida. Some 25 percent of all timeshare resorts in the United States are located in the Sunshine State. Timeshares represent a significant share of Floridas tourism market --a market, surprisingly, even in this economy, that is growing.
Howard Nusbaum, president and CEO of the American Resort Development Association -- umbrella organization for timeshare resorts -- praised Bondi's bill. "This legislation is a needed first step by state authorities to take action against dishonest companies whose actions taint the industrys reputable resale companies," he said.
Nusbaum told Sunshine State News that the timeshare industry continues to work with its members to keep both the buying and selling process in the sunshine. ARDA isn't perfect, he admitted, but over the years it has freely provided information to consumers on the resale process, monitored resale company practices, sponsored symposiums for its members, and created think tanks with industry leaders "to discuss the best solutions to ensure consumer protections and adherence to resale standards."
You would like to believe Nusbaum right down the line; but be honest, timeshare-sale fraud has blossomed into a lucrative way of life for the bad guys in Florida.
What the bill aims to do for timeshare owners wanting to sell is this:
- Requires timeshare resale companies to disclose all terms and conditions of their business relationship with a consumer.
- Provides for a right of rescission for consumers to cancel a contract for resale services.
- Imposes penalties on companies that continue deceptive practices.
While Bondi's bill clearly isn't the be-all and end-all, it's likely to flush at least some of the offenders into the open simply by educating consumers. Everybody involved -- the attorney general, Eisnaugle and Gardiner -- deserve a tip of the cap for this one.
Reach Nancy Smith at nsmith@sunshinestatenews.com or at (850) 727-0859.
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