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Timeshare Bait and Switch
There is confusion about timeshare properties. Unfortunately, Timeshare Bait and Switch happens. Contact the Timeshare Defense Attorneys if this happens to you.
Timeshare Contracts
Many people try to secure a yearly vacation to make lasting memories for less money. Timeshares allow customers to save money on vacations. Thus, deceptive advertising companies can use timeshare sales to commit fraud.
Timeshare contracts may contain hidden obligations, costs, or restrictions. A prospective buyer will need an experienced timeshare attorney in Las Vegas to look out for misleading statements or red flags in the contract before finalizing the purchase.
The Bait and Switch Tactics
The bait-and-switch tactic has gained popularity among unscrupulous people in the United States. The bait-and-switch scam begins with a fraudulent seller making an appealing but inauthentic offer to sell a particular product or service offered at a low rate that they have no intention of selling.
The initial sales presentation is the bait that lures unsuspecting customers to accept the offer. To gain a higher commission, the advertiser switches the customer to a more expensive product or service of inferior quality than that mentioned during the sale.
The idea behind the tactic is to indirectly coerce customers into purchasing other services or products at a higher price due to the limited number, unavailability, or poor quality of the one advertised in the sale.
Note that it is not a bait and switch if the company advertises a low-priced item that sells out.
Timeshare Bait and Switch Scam
Customers may fall victim to a timeshare bait and switch during a timeshare sale. The unethical seller paints a picture of a luxury resort in an exotic location on a website with a guarantee of vacation ownership of that site in exchange for money.
The customers make a booking on the website, sign the agreement, and then travel to an unknown location to discover it is less appealing than advertised.
Customers become angry when they realize they have been duped and complain to the resort developer. Unfortunately, the developer or timeshare company often points out that the fine print in the contract prevents them from requesting a refund. Consumers believe they may have no way out of the contract after their complaints have been dismissed.
Laws That Protect Against Timeshare Bait and Switch
Several countries consider bait-and-switch tactics illegal because of their false advertising. In the United States, consumers are protected from false advertising by state and federal regulations, such as section 5 of the Federal Trade Commission (FTC) Act.
False advertisers may be liable under section 43 of the Lanham Act. The advert may also be a potential breach of the Consumer Fraud and Deceptive Business Practices Act.
Is Bait and Switching Illegal?
Bait and switch sales practices have been labeled unlawful by the Federal Trade Commission (FTC) and contravene the FTC Act. The FTC monitors and enforces laws that protect customers from falling prey to deceptive advertising.
A company that employs deceptive and unethical bait-and-switch tactics using false advertising to drive business will be liable for consumer fraud. The Commission’s Bureau of Consumer Protection prevents unjust, misleading, and dishonest business methods by collecting information and investigating corporations violating the law.
A retailer may be able to avoid prosecution under the law if they include a disclaimer on their ads limiting discounts to the availability of a product or service.
Examples of Timeshare Bait & Switch Scams
Timeshare bait and switch scams can be difficult to notice. Some ways of identifying them include looking out for offers that look or sound unbelievable. For example, an unavailable product on sale with little or no specifications is usually a red flag. The sale of property worth millions of dollars at a rock-bottom price may also be a scam.
The bait-and-switch scam is also prevalent in the mortgage market through timeshare loans. The interest rates on these loans are often higher than those offered by banks. In addition, the resort developer or timeshare company informs the vacationer that this is the only financing option available and convinces the vacationer to agree to the resort developer’s financing terms.
The loans are advertised on the mortgage market at teaser rates that applicants do not qualify for. Basically, these teaser rates are low-priced introductory offers intended to pique the interest of vacationers and lure them to the advertiser’s office. Upon arrival at the office, they will be given higher rates according to their qualifying rates.
The vacationers act on impulse in a bid to quickly secure the timeshare. However, what looks like a good investment quickly turns into a nightmare. The mortgage bait-and-switch tactic leaves customers with an increasing debt arising from the unpaid mortgage balance and accumulating maintenance fees. With such rates, one could buy or secure better accommodation at a similar destination.
As a result of all these elaborate strategies, it is crucial to be patient and consult with experienced timeshare defense attorneys before accepting an offer.
Cancellation of a Timeshare
A timeshare owner who wishes to cancel an existing timeshare contract will require guidance on the appropriate steps to take to ensure a successful timeshare cancellation.
Many states have a cooling-off period that customers should take advantage of if they decide to cancel. If the consumer decides to cancel their contract later, they must continue making payments until the cancellation is finalized to prevent getting a low credit score.
The statement would disclose specific information regarding the timeshare to the consumer. Consumers who have missed their cooling-off period should contact a timeshare attorney who can thoroughly examine their case and negotiate a better settlement plan through litigation.
To Identify Timeshare Exit Scams, Consult a Timeshare Defense Lawyer
Getting out of a timeshare scam can be strenuous, and exit companies may take advantage of this to further scam customers. A timeshare attorney in Las Vegas can provide sound legal representation to customers who are unsure of what to do next.
