Consumer Reports - USA (2020-02)

no further obligations. Marriott Vaca-

tions Worldwide, Club Wyndham,

and other timeshare companies have

also made it easier for owners to do

the same thing, says Robert Clements,

general counsel for ARDA, which has

created a guide to legitimate exit

strategies (at responsibleexit.com).

But for consumers who feel chained

to their timeshare by a contract they

can’t break, there are strategies to

help you part ways.

Ask the corporate owner about a

deed-back program. As noted, some

operators will now help owners unload

their shares, but you may be on the

hook for maintenance fees while they

seek to resell the unit.

Sell it or give it away on an open

forum. Numerous online forums and

websites exist for owners seeking buyers

for their shares. Among the most active

is eBay, where the keyword “timeshare”

will turn up hundreds of listings. You

can also find them on Craigslist, the

Timeshare Users Group, and RedWeek.

Be sure to hire an attorney to prepare (or

at least review) all paperwork related to

the transaction and, given the weakness

of the secondary market, be prepared

to take a significant loss. But at the very

least, you’ll get closure.

Suspend maintenance payments.

Though it’s not a recommended

strategy, you could stop making these

payments as a last resort. Doing so

could lead to foreclosure, damaging

your credit score for up to seven years,

and possible legal action, but some

owners may find this approach to be the

lesser of two evils.

Barbara Prideaux, 80, of St. Louis

says she and her late husband let their

timeshare go into foreclosure after a

Missouri relief company they hired

failed to get them released from their

deed. “Our children never used the

timeshare, and the fees just got to be too

much,” Prideaux says. “I wasn’t happy

about doing it this way, but we are

moving on with our lives.”

WHAT TO KNOW

BEFORE BUYING

Timeshares, also

known as “vacation

ownership plans,”

have evolved since

they were first

marketed in the

1960s and ’70s,

commonly as a fixed

week at a specific

resort. Today there

are also “floating

week” timeshares

that let you pick

different weeks each

year and points-

based plans that

let you book stays

of varying lengths

at different resorts,

among other types.

Established names,

including Disney,

Hilton, Marriott,

and Wyndham, sell

timeshares, but all

vacation ownership

plans come with

a unique set of

concerns. Keep these

things in mind.

WEIGH THE COSTS

The average price

of a new timeshare

is $21,455, which

buys you the use

of a property for

one week each

year, according

to a recent survey

by the American

Resort Development

Association (ARDA).

You can pay a

fraction of the

purchase price of

a new timeshare

by buying one

secondhand on

websites like eBay

or on dedicated

timeshare sites

such as RedWeek

and the Timeshare

Users Group. Annual

maintenance fees

average $1,000,

according to ARDA,

but can climb to

more than $3,000.

Timeshares don’t

appreciate in value,

but if you hold on to

one long enough—

at least 13 years,

according to a 2016

Consumer Reports

estimate—you can

begin to save on

what you would

have spent taking

similar vacations on

your own.

CONSIDER THE

HASSLE FACTOR

If you buy a floating

week timeshare, you

may have to reserve

your vacation nine

to 12 months in

advance to get a

desirable location.

Points-only plans

offer the most

flexibility; you can

vary both the length

of the stay and the

locale. But planning

is essential to

getting your money’s

worth. And if you

bought a timeshare

because it was

cheap in the hope of

swapping it for stays

at nicer properties

(via membership

platforms like RCI),

you may be out

of luck. If you’re

not thrilled about

staying there, you

probably won’t get

many takers.

AVOID AN

IMPULSE BUY

Many timeshares are

bought by people

on vacation. There

may be a brief

window of as many

as 15 days to back

out, depending on

the state. Arizona

recently increased its

window to 10 days

while also requiring

sellers to more clearly

disclose the nature

of the purchase.

Always insist on time

to think it over, away

from the piña colada

parties.

but doesn’t identify them. (Be sure to

check out the bona fides of any licensed

attorneys who are involved.)

Rogers says that in most cases he’s

aware of, clients of these companies

never receive the promised service,

or they pay a substantial sum

for something they could have done

themselves for far less money.

Making a Graceful Exit

As part of a 2016 settlement with the

state of Arizona on behalf of disgruntled

timeshare owners, Diamond Resorts,

a timeshare company with 380 affiliated

resorts in 33 states and 32 countries,

established a program that allows

certain consumers to relinquish fully

IC paid but unwanted timeshares with
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FEBRUARY 2020 CR.ORG 41