ATLANTA, Ga. (Atlanta News First) - Spring break is right around the corner and if a timeshare presentation is on your agenda, there are important things you should know before you sit down, listen to the pitch, and especially before you sign anything.

The timeshare industry is much better than it used to be. Big-name hotel brands are in the game, points-based systems and international exchange programs offer flexibility, and younger buyers are signing up. According to the American Resort Development Association, the average age of a first-time timeshare buyer has dropped to 39.

But consumer and law enforcement agencies said the legal risks and fraud threats that have long surrounded timeshare ownership haven’t gone away.

Before walking into that presentation

Watch for high-pressure tactics. Some sales presentations are low pressure, but the Federal Trade Commission (FTC) warns high-pressure tactics are common. Presentations are specifically designed to get you to say “yes” on the spot.

Promoters may make you wait a long time between parts of the meeting, cycle you through multiple salespeople, and tell you the offer is “only good today.” That kind of urgency is a red flag, designed to prevent you from talking to a trusted adviser or taking time to think.

If you go for the free meal, be ready for the sales pitch that follows. Unless you’re a contract attorney, don’t sign that same day.

Don’t act quickly. You’re potentially committing to thousands of dollars and obligations that could last decades. Ask the salesperson why the offer is only available today. If they can’t give you a straight answer, that tells you something.

Know what you’re actually buying. A timeshare is not full real estate ownership. It is a right to use a property for specific dates, with long-term financial obligations attached. Some timeshares are deeded, meaning they can be inherited. Others are points-based, giving you flexibility across properties but with varying costs depending on location, season, and availability.

Get every promise in writing. The FTC is clear: if it’s not in the contract, it doesn’t exist.

Those maintenance fees don’t stop. The purchase price is just the beginning. Timeshare owners are also responsible for ongoing maintenance fees and special assessments, and the FTC notes those fees can go up every year, even if you never use the timeshare.

Before you commit, add up the full cost: the purchase price, annual fees, travel costs, and any exchange program fees. Ask whether there is a cap on annual fee increases.

Getting out is not easy. The FTC is direct on this point: the timeshare resale market is overcrowded, and selling may be difficult or impossible. Your original contract may also limit your ability to sell or transfer your interest. Any company that guarantees a quick resale or big returns is, according to the FTC, scamming you.

If you’ve already signed

If you are past the cancellation window, the terms are binding. Use it. Enjoy it. Timeshare exit companies were big business for a long time, but many have disappeared as the industry evolved. Be wary.

Find your rescission period immediately if you’re still within it. Every timeshare contract includes a rescission period, a cancellation window. The length varies by state. Miss that deadline and you are likely locked in. LegalShield provider attorney Ben Farrow, who regularly handles these cases, said consumers should get the contract to a lawyer as soon as possible, because your options depend on strict deadlines.

If you decide to cancel, the FTC says to do it in writing via certified mail with a return receipt, so you have a documented record.

Watch out for what comes next: third-party scammers

Once you own a timeshare, a separate and serious threat emerges. Third-party criminals — who have nothing to do with your resort — target people with buyer’s remorse. They may contact you posing as brokers, law firms, or government officials, asking for money to help you cancel or sell.

According to the FBI, these scams typically play out in three phases:

• Phase 1: A scammer contacts you by phone or email, posing as a broker or resale agent. They say they have a buyer or can help you exit, but first, you need to pay an upfront fee.
• Phase 2: A different scammer contacts you, now posing as a law firm employee, claiming they can help you recover the money you lost in Phase 1 for another fee.
• Phase 3: Scammers impersonate government officials — including from the U.S. Treasury, the Mexican government, or even INTERPOL — threatening legal consequences unless you pay more money.

The FBI warns these criminals use fake documents, forge official letterheads, and mimic legitimate email addresses to appear credible.

The FBI also says some of these operations are run by Mexican drug cartels — including the Jalisco New Generation Cartel — which have used timeshare fraud to fund their criminal enterprises for more than a decade. As of June 2024, these scams have cost victims more than $300 million.

Be extremely cautious of any unsolicited call, text, or email from anyone claiming to have a buyer for your timeshare or offering to help you get out. The FTC says scammers use public records to find timeshare owners and target them directly. Never pay upfront fees to anyone promising to help you sell or exit.

If you want to explore your options, start by contacting your timeshare company directly.

If you’ve been targeted, here’s how to report it

• FBI Internet Crime Complaint Center. File a detailed report including the names of businesses and individuals involved, phone numbers, email addresses, and any money transferred.
• FTC. Report fraud, scams, and bad business practices directly to the FTC.
• Your state attorney general’s office. Search for complaints about any resale company or individual who contacted you.

The FBI said the more detail you provide in your report, the better. Stop sending money to anyone you suspect is a scammer and report immediately.

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