When you are on vacation and you are having the time of your life, the last thing you want to think about is home, and your bills.  A salesperson approaches you, and you have someone telling you that if you listen to what they say, they will give you $100.  Sounds great, right?  So you take a walk through a suite of your dreams, for only $150 per month this could be yours (for one week a year).  For some reason our psyche thinks this sounds like the best idea we have ever heard.  We will even try to make it sound rational to our spouses who are thinking clearly.

Next thing you know you are home, with a $30,000 mortgage on a timeshare, and $10,000 charged to your credit card as a down payment.  You don’t think you can actually afford it now, and you don’t know how to get around it.  Do to the tremendous amount of “Buyer’s Remorse” after signing a timeshare contract; the required Right of Rescission is considered the “cooling-off” period when related to time shares. The is a predetermined set of days from after you return home, there is a Federal guideline and usually a more generous state law, which supercedes the Federal.  This should tell you right here why timeshares are a high risk category.  When people find themselves out of the right of rescission the only other way to break the contract is by fighting the charges on the credit card.   A lot of companies express that credit cards are great funding options for smaller priced timeshares. 

Once someone comes to terms that they have been scammed they will do whatever it takes to get their hard earned money back.  Timeshare salespeople are perceived as hunters, and the potential customers as their prey.  Some people even feel obligated to sign up, just to get the free mini vacation, but have no intention of actually keeping the contract.  They wait until the get their gift and cancel immediately.  This is a great tactic for the strong willed, but also very treacherous.

Occasionally there is the problem of a salesperson being so aggressive they suggest things that are impossible.  Which in turn can lead to a sort of false advertising.  If a salesperson suggests there is a high probability that you can get a 10% return on using your timeshare as an investment, but knowingly says this just for a pure sale, this could also be reason to file not only a chargeback, but also possibly false advertisement, or even theft by deception.  There is a very minimal chance that a timeshare would even earn a 3% return.  It is up to the salesperson to be aware of what he is promising.  This will come back on the financial company (if there is a lien), the timeshare company who sold the timeshare, the salesperson’s commission, and also the merchant account provider.  A timeshare company needs to keep their liability to a minimum by knowing exactly what their salespeople are promising or even implying.  With more and more people having discrepancies with timeshare companies, the regulations are getting stricter and the industry as a whole is getting a bad name.