11 Fake Companies Exposed for Scamming Timeshare Owners
February 1, 2014
The importance of this post cannot be overlooked. Read and heed!
Posted: May 29, 2013 11:46 AM PDT - Updated: May 29, 2013 11:53 AM PDT
by Lindsey LaBelle - email
ST. PAUL, Minn. (KMSP) -
Eleven companies are under fire after scamming timeshare owners, the Minnesota Department of Commerce announced Wednesday.
After claiming they could sell or rent various timeshare properties, the companies scammed timeshare owners into paying thousands of dollars in transaction costs while the unit was never sold or rented.
"The Department took swift and decisive action against these alleged schemes duping timeshares owners," said Commerce Commissioner Mike Rothman. "These sham companies are preying on people desperate to sell their timeshares with the intent to scam and defraud them out of thousands of dollars."
All 11 companies claimed fake street addresses and went by the following names: Global Properties Specialists, Integrated Escrow Services, Platinum Resort Services, ABS Consulting Company, World Transfer Title, Premium Properties Management, Net Management Group, Concord International Title, Continental Property Solutions, Twin Cities Property Advisors and World Event Management.
The Department's investigation found a similar pattern in the false transactions, Global Properties Specialists as an example: The company cold-called a Michigan timeshare owner about selling a Costa Rica property, telling the owner there was a potential buyer. The owner agreed to wire $6,550 as a transaction fee. The company then said an additional payment of $11,790 was needed to pay a 15 percent sales sax plus 3 percent foreign investment tax. The company continued to request additional payments from the Michigan owner, but after declining to make a final payment, Global Properties Specialists stopped answering the owner's phone call and emails.
"Minnesotans need to exercise due diligence when selling their timeshares," said Commissioner Rothman. "These scams are becoming increasingly prevalent and sophisticated, and Minnesotans should check with the Department of Commerce to confirm the licenses of purported timeshare resellers. Further, those who are considering the initial purchase of timeshares need to educate themselves on the potential benefits and disadvantages of timeshare ownership."
The Commerce Department offers the following advice to avoid a timeshare scam:
1. Always check with the Minnesota Department of Commerce to confirm the licensing claims of any reseller. Anyone selling timeshares in Minnesota must have a Minnesota real estate license.
2. Resellers identify timeshare owners through public databases and real estate records. An agent will cold call or mail materials to consumers offering resale terms that are often too good to be true. Be very cautious of high pressure sales tactics and offers requiring you to pay up front fees. These tactics are a red flag the offer could be a scam.
3. A search of the caller's telephone number, address or reseller contact information on an internet search engine will quickly expose a fraudulent company. Do this before signing a contract or sending any money.
4. Resale values are generally a fraction of the original purchase price. Anyone offering a purchase price that sounds too good to be true is too good to be true.
Read more: 11 fake companies exposed for scamming timeshare owners - KMSP-TV http://www.myfoxtwincities.com/story/22449055/11-fake-companies-exposed-for-scamming-timeshare-owners#ixzz2s8YhrVWL
Eleven alleged companies! Think about it! All these individuals have to do is create a five page website, claim they have been in business for a period of time and hustle! Unfortunately, they are offering nothing of value and taking inocent, trusting people's money.
Don't be a victim....just say no!!