Outsmart timeshare hucksters

Scammers love to prey on consumers who are at their most vulnerable -- during difficult economic times -- and the timeshare business isn't immune from their damage, according to an industry leader who is warning would-be timeshare sellers to tread cautiously.

Indeed, attorneys general in Arkansas, Massachusetts, North Carolina and Oklahoma recently have issued warnings about dubious timeshare-resale companies -- particularly about reseller companies charging upfront fees that might run into the thousands of dollars, according to Howard Nusbaum, chief executive of the American Resort Development Association (ARDA), a trade group.

"This economy brings out the best and worst in people," said Nusbaum, who warns that timeshare owners who promise huge profits at resale aren't to be trusted.

Nusbaum estimates there are more than 5 million timeshare owners, representing properties at about 1,650 resorts in the United States.

Five things to keep in mind in order not to run afoul of resale hucksters, according to ARDA:

1. Many scammers operate by cold-calling or writing to timeshare owners who may not even have tried to sell their units, Nusbaum said.

"You might get a phone call from somebody saying, 'I have a buyer who wants to give you $20,000 for your timeshare,' " Nusbaum said. "And you say, 'Times are rough -- sure, I'll take it.'

"And then you give him your credit card (to pay upfront 'fees'), and guess what -- the buyer goes away," he said.

That request for a credit card is a red flag, Nusbaum said.

2. There are numerous unrisky ways to get the word out that you're interested in selling your timeshare, Nusbaum said. ...CONTINUED

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