BBB Article on Timeshare Exit Scams

I have never really understood the draw to most timeshares (especially out of the country), I understand paying someone to make them go away even less. This is an interesting read. The concept of timeshare exit companies has grown as I hear several of them advertised on radio, it stands to reason there are some that are a scam.

BBB ARTICLE

Oh boy, this industry. Now they are getting people on the other end!!!!

This is nothing new as I have heard the ads for several years now and people are falling for it.

After many years of having a timeshare at the Pelican the annual fees got to expensive. We were able to just turn it back into them for no additional cost to us. We did get good value since we bought the 2 weeks second hand (for $1750 per week) and used them for about a dozen years.

There are some good timeshares - I've owned at the Royal Islander for over twenty years and never had any complaints. And you rarely hear any complaints about the RI. While it's true the maintenance fee increases every year (what doesn't?) I could never afford two weeks at a decent hotel for the price of my maintenance fees - twenty years of savings has worked well for me. But the industry itself has a well deserved shady reputation. A buyer needs to do extensive research and of course there's little legal protection outside the U.S. -

I see on the vacation shows on TV where people pay a few, to several hundred dollars a month for condo fees. In St Martin people pay a few, to several hundred dollars per week for every week they own!! I sthat not correct? Monthly fees are the only way companies have to make money once the units are sold, and the fees only increase. Then they have special assessment fees for hurricanes and other unexpected events. Buying a condo is the cheap part. Then the fees start!!!

If you mean "time-share" not "condo" you're essentially correct. We've never been assessed any fees beyond our annual maintenance fees at the Royal Islander, and years when we couldn't use the units because of hurricane damage the maintenance fees were waived. But every time-share is different. My annual maintenance fee for a one-bedroom was a little under $800 last year - that strikes me as a pretty good deal for a week in SXM in January. The unit is large with a full kitchen and a balcony overlooking the pool and the ocean.

We have been happy with our timeshare, with non-mandatory maintenance fees, surviving a bankruptcy many years ago, having destination and seasonal options available, no reason to want to exit.

I personally only would purchase a timeshare out of the US, and on the resale market and only if paid for and no financing. Then at purchase you do not give your SS#, there is no need for it and if you decide to walk away you pretty much can and you avoid the scenario of companies like this. I have purchased 8 time shares not using my SS#, sold one, walked away from one, one closed and still have 5. We like to travel.

Like buying a car, you do your research and make the decision of if it makes sense knowing that it is pretty unlikely that your vehicle will increase or even hold its value. You could instead lease, rent, walk, ride a bus or bicycle or you find the value and enjoyment of the car you purchase. Sometimes you get a lemon, sometimes you get an enjoyable ride but the more you research the better odds you have of it being a positive experience.

I have no complaints about any of the time shares I have purchased, I do however regret a couple of my car purchases.

Countdown says 42 days until SXM!

While we got to enjoy a few years at The Caravanserai the bankruptcy wasted a lot of our money. Will never buy timeshare on SXM again unless they change the laws to provide some protection.

Bob--Like the timeshare law that has been just sitting there in government without any action since 2017, right Minister De Weever?

This article is not about the merits of a timeshare but some unscrupulous "timeshare exit companies".

Todd,
The car purchase analogy is perfect! Not an investment and there can be risks. We've owned three timeshares and currently own two. We also like to travel and always use our weeks, so never had the need or desire to find exit help. The concept still works for us and so far, no "lemons".
MC

What avenue do people normally take when exiting their timeshare? We are charter owners at Oyster Bay Beach Resort, and leave on Saturday for a 3 week stay (providing our Covid tests come back negative and in a timely manner!). It has become extremely hard for us to travel out of the country, and we are considering exiting our timeshare after this visit. Fully paid for, original owners, any suggestions? It is a Studio every year, with the option to upgrade to a 1BR or 2BR. This is our only timeshare, we have had it for about 24 years but are fairly "green" about how all this works!

Some people will just walk away and forget it, others go through the resort and pay a fee to give it back, some donate to charity (if they will still accept them), some sell it on their own, and it sounds like some use the "exit companies". If you are "charter owners" it will likely not have anything close to the value you paid. I know several people who have simply quit paying the maintenance fee and walked away.

Good luck.

I know of several people who 'gave back' their week at Oyster Bay a few years ago. OBBR will send you $1 and when you cash it, you relinquish your rights to that week. No fees involved. Can't confirm that they still operate that way but if you call the corporate office, I'm sure they can tell you.

Guess we bought a unicorn among timeshares. We purchased in Divi Aruba in the early 90's. Can transfer among Divi resorts for a nominal fee. Transferred it into Divi sxm many times, some years using multiple weeks. We only pay maintenance fee when we use it. Years we don't use it we don't pay a fee.

I’d at least try to sell it either myself or through a company that doesn’t charge upfront fees. Some money is better than no money. I know folks who have bought them on eBay.

I certainly would not pay money to get out of it though.

Thanks all for your advice, I will talk with the resort when we are down there to see what our options are. Will also have to pull out the paperwork and see what it says, our sons are joking that if the plane goes down one gets the house, and the other gets the timeshare with 99 years of Maintenance fees!

We owned at OBBR for about 15 years and decided to move on from a fully paid off studio floating unit. A call to the Philadelphia office was made and they took it back with no problem. Didn't cost a penny and the only requirement was that our annual dues be all paid up which they were.

Found the whole think simple and stress free.

I have offered this advice many times, on this board and others. I feel that most timeshare lessors will allow you to end a timeshare without any penalty. After all, they are able to resell or rent that timeshare unit again in the future.
1. READ your original timeshare paperwork. If your timeshare terms and conditions are based in SXM it is very likely that you can simply walk away without paying additional fees. You may well attempt to sell your timeshare(s) but if that takes too long you might accrue more fees.
2. Some timeshare lessors will offer exit fees, transfer fees, and or return fees, all of which are not enforceable if they are not included in the original contract.
3. Some timeshare lessors will threaten to negatively impact your credit status if you walk away. This also is not enforceable and if they choose to post any negative item on your credit report you need only "dispute" this action and you will see it disappear in a month or two. "Dispute" of a submitted unpaid debt on a credit report requires the creditor to justify with valid documentation that listing.

In summary, the lack of governmental protection in SXM timeshares cuts both ways. While there is no control to limit maintenance and other "created" assessments for those that continue their timeshare(s), there are normally few if any additional costs that can be legally added to the original contract to exit a SXM timeshare.

Hope this information helps. Many timeshare lessees have unnecessarily paid when they did not have to only because they wanted to avoid any confrontation and or they believed invalid information provided to them. Some timeshare lessors will use this to their advantage.