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Buying a vacation home can be out of reach for many people. But what about buying a “piece” of a vacation home? That’s the idea behind timeshares – pay a fraction of the cost for a property and have access to it for a set amount of time each year.
And you're not stuck going to just one place! As the industry has grown, it has expanded to include opportunities to trade your timeshare for time in another property – meaning you can pick a different location for your vacation every year. The business of re-selling timeshares has also boomed.
There are many ethical timeshare companies and many are even BBB Accredited Businesses. But, of course, every industry also has its share of bad actors.
The Better Business Bureau based in St. Louis, which serves southern Illinois and most of Missouri, did an in-depth study in 2017 of the timeshare industry centered in Branson, MO. The town of 7,500 attracts more than 8 million tourists annually from all over the country and many of those tourists attend timeshare sales presentations during their visits. BBB St. Louis reports that travel/timeshare complaints were among the most-complained-about businesses to the Missouri Attorney General’s Office during the year of the report.
There is much to be learned from this case study. BBB St. Louis offers tips for both consumers and the industry.
For Consumers:
· Do your research.
· Look on the secondary market for properties being resold.
· Don’t give in to high pressure sales pitches; take your time to make your decision.
· If you have second thoughts, make sure you act quickly. There is a short window of time to cancel your contract.
Recommendations for the Industry:
· Develop ethical standards to combat the use of high-pressure and deceptive sales practices.
· Deliver honest and accurate pitches.
· Honor your promises and delivery incentives quickly and simply.
· Be clear about the rules involved in timeshare inheritance.
· Be transparent with consumers and answer their questions clearly.
· Use neutral, third-party mediation rather than a company’s internal program for resolving disputes.
· Make it easier to exit from a timeshare agreement.
You can read the full report here. You can also read about vacation scams here.
