The Oklahoma Department of Securities (ODS) is warning timeshare owners about a rise in solicitations from companies and individuals falsely claiming to have buyers lined up for timeshare resales, or offering services to help cancel timeshare contracts.
ODS has received numerous reports from Oklahomans who have lost money to these schemes.
The scheme typically begins with a caller offering to purchase a victim’s timeshare, often located at a resort destination outside the United States, for far more than the owner originally paid. Once the victim agrees to sell, the caller introduces a series of fees, including a transfer fee, a sales commission, a fee to release a supposed government tax lien, and an escrow fee. The caller tells the victim these fees are refundable at closing, butwitheachpayment,anew obstacle appears, along with a new charge.
When it becomes clear the sale will never close, the caller may pivot to a second scam, claiming a foreign government is offering restitution funds to repay victims, but only after additional fees are paid. Some callers threaten legal action for breach of contract, while others offer to refund the original fees in exchange for one final payment.
These scammers typically use false identities and addresses, and ask victims to wire fees to bank accounts overseas. Some have used fake Oklahoma addresses andphonenumbers,orstolen the identities of legitimate companies entirely.
ODS recommends the following steps before working with any company offering to resell a timeshare or cancel a timeshare contract: Research the company first. Search the company’s name alongside the words “complaints” or “scam” and contact ODS, the Oklahoma Attorney General’s Office, and the Federal Trade Commission to check for any complaints or enforcement actions.
Confirm the company’s address is valid, and meet a representative in person before agreeing to anything. Never finalize an agreement over the phone.
Favor companies that collect payment only after a timeshare sale or cancellation is complete.
Be skeptical of any company that asks for payment up front to help recover money lost to a previous timeshare scam. This is often a sign of a second scam targeting the same victim.
Never wire money to a foreign bank account or pay by money order, cashier’s check, cryptocurrency, or cash for a timeshare sale or cancellation.
Get all terms in writing, and verify the names, addresses, and services listed in any documents provided. Be cautious if that information is missing or hard to find.
Watch for pressure tactics. Scammersoftencreateafalse sense of urgency.
Be wary of money back guarantees.
If seeking legal help to cancel a timeshare contract, work only with a licensed U.S. attorney. Confirm the attorney is in good standing with a state bar association, ask about a free consultation, and meet in person at a business office.
Oklahomans who believe they have been targeted by a timeshare resale or cancellation scam are encouraged to file a complaint with ODS at securities.ok.gov or by calling 405-280-7700.
The Oklahoma Department of Securities protects the investing public and maintains market integrity through the administration and enforcement of Oklahoma's securities laws. The Department also educates investorsaboutinvestingand helps them learn to identify and avoid securities fraud. For more information, visit securities.ok.gov and investedok. org. This notice is for informational and educational purposes only and reflects reported allegations; it is not a finding or determination by theOklahomaDepartmentof Securities that any person or entity has violated the law.