Attorney General Kwame Raoul today urged timeshare owners attempting to sell their properties to be vigilant against resale scams. Scammers often pose as escrow agents or representatives of brokerage firms, travel agencies, or title companies, making unsolicited contact with timeshare property owners and pressuring them into paying substantial upfront costs and fake processing fees for sales that never materialize.
The Attorney General’s office has identified scams where fraudsters mimic legitimate timeshare resale companies, operating under various names and using different phone numbers, websites, and email addresses to evade law enforcement. Raoul cautioned consumers that once they send a payment to a scammer, recovery of the money is unlikely.
"As the summer vacation months wind down, timeshare owners may decide their vacation rental is no longer the right fit for their family,” Raoul said. “Unfortunately, bad actors are ready to target owners with scams and misinformation. I encourage timeshare owners to take precautions before paying upfront fees or signing any agreements when dealing with an unfamiliar individual or entity claiming they can assist in exiting a timeshare contract.”
Raoul highlighted several red flags indicative of a scam:
- Unsolicited communication regarding your timeshare.
- Requests for upfront fees labeled as taxes, processing fees, title-search fees, appraisal fees, or commission fees.
- Guarantees of selling your timeshare within a specific timeframe or claims of having a buyer lined up.
- Requests for payment through cash, money order, cashier’s check, cryptocurrency or wire transfer.
- Use of post office boxes or mail forwarding services without providing an actual physical address.
- Poor quality reseller websites containing misspellings or lacking information.
- Refusal to identify the buyer during negotiations.
- High-pressure sales tactics rushing you into signing contracts without sufficient review time.
- Guarantees of profitable returns on the sale.
Attorney General Raoul advises consumers wanting to sell their timeshares to work with licensed real estate brokers registered in the state where the timeshare is located. He also recommends checking reviews and complaints through the Better Business Bureau. More information on preventing timeshare fraud can be found through organizations such as the American Resort Development Association, Resort Owners’ Coalition, Federal Trade Commission (FTC), and Securities and Exchange Commission’s Office of Investor Education and Advocacy.
Consumers affected by potential resale scams can file complaints with entities like the FTC, FBI’s Internet Crime Complaint Center or Consumer Financial Protection Bureau. Those who sent payments by mail can file complaints through the U.S. Postal Inspection Service.
Attorney General Raoul encourages victims of fraud to file complaints via his office's website or call one of his Consumer Fraud Hotlines:
1-800-386-5438 (Chicago)
1-800-243-0618 (Springfield)
1-800-243-0607 (Carbondale)
1-866–310–8398 (Spanish-language hotline)