Carrying on with our theme of news from across the “Great Lake”, Irene Parker has again sent her article which will be of interest to timeshare owners in Europe, especially those who own in the USA.
This article focuses on a new initiative by one of the largest timeshare concerns in the USA, Wyndham, which is based in Parsippanny New Jersey. It seems the company is going to be leading the way in providing a more accessible relinquishment program for owners. This could also pave the way for the demise of those unscrupulous companies that offer relinquishment or “guaranteed deed-back” and resale scams, which many owners in Europe are familiar with. These scams cost timeshare owners all over the world thousands of dollars, pounds and euros in upfront fees, these fees are being charged to beleaguered timeshare owners who are unable to keep up with the rapidly rising maintenance fees and assessments.
Unfortunately a relinquishment or “voluntary surrender” program does not help those owners who have outstanding loans or finance agreements, usually having succumbed to high interest payments on these loans, typically 14% to 18%. Inside Timeshare has published articles on these loans and the predatory practices of UK bank lending.
If the Wyndham model proves to be successful, could it pave the way for other timeshare companies to copy, saving the industry from the bad image of holding prisoner elderly owners and those who can no longer afford the maintenance fees. Only time will tell.
Wyndham Launches “Ovation” Timeshare Surrender Program
By Irene Parker, October 27, 2016
Wyndham Vacation Ownership has been among timeshare industry pioneers in providing owners with comprehensive information about reselling and helping them exit timeshare units they no longer want to use.
The company’s exit program differs from many competitors in its detail and helpfulness. Many timeshare companies do not offer well-articulated policies. A number of them make it difficult to resell timeshare properties. That is reflected in the high number of units that timeshare owners continue to relinquish because of age or an inability to carry maintenance fee costs.
Wyndham Worldwide has been operating for 50 years. The company’s well-established names include Club Wyndham, WorldMark and Shell Vacations. In addition to timeshares, Wyndham Worldwide Corporation offers lodging and vacation exchange and rentals through RCI.
The company’s timeshare exit program, Ovation, offers a number of options for relinquishing a Wyndham timeshare with no fees, hidden costs or additional purchases required to participate. That differs from a number of timeshare companies and also from transfer and cancellation companies.
“Our goal is to help owners transition to the next phase of their life and reach as many owners as possible, before they are contacted by fraudulent companies,” said media contact Lori Ford. “The program offers various options based on individual ownership, eligibility and circumstance and we continue to see a strong owner response, with over 47,000 owner inquiries since its introduction.”
The timeshare industry has improved its reputation, but is still struggling to overcome years of questionable practices by a number of major operators, and some companies continue to make it difficult for timeshare owners to relinquish their shares in properties. The industry also continues to include unsavory practices among operators and companies that provide supporting services. Among the major issues:
Transfer agents offering beleaguered timeshare owners “guaranteed deed-backs” at a cost averaging $3,500 to $7,000, fraudulent listing agents offering to list your timeshare for an upfront ad fee only to disappear, callers claiming to have someone interested in your timeshare, bogus timeshare “renters” claiming to represent the timeshare developer.
Wyndham Vacation Ownership even offers their members a “Scambusters Hotline” providing owners with informational scam reports and updates along with a hotline to call if an owner suspects suspicious activity or feels they are being targeted.
Wyndham’s first buyback program, known as “Pathways“, came under intense scrutiny in that it was accused of being a scheme designed to get owners to buy more points. The one-sided contract, signed only by the timeshare owner, promised an “opportunity” to sell a timeshare back to Wyndham, if the owner purchased an additional 20% of the points they already owned.
Clearly, the “cottage industry” of timeshare scams developed because or the lack of a secondary market. The industry in general has been reluctant to face the issue of unwanted timeshares. I asked Gregory Crist, President of the National Timeshare Owners Association (NTOA) why is there such a disparity of opinion when it comes to consumer reviews of timeshare companies and especially timeshare resale programs.
“Until the timeshare industry supports a robust secondary timeshare market, we will continue to see an increase in predatory timeshare exit companies clamoring to take thousands of dollars from timeshare owners to get them released from their timeshare obligations. Until now, it has been difficult to get anyone’s attention,” said Crist.
Voluntary surrender programs leave owners with nothing. While no one should expect a timeshare to be a lucrative investment, legitimate resale programs do allow an owner to recoup, at best, fifteen percent of an owner’s overall investment. At least a secondary market allows a nominal dollar amount back to the timeshare share owner in an age where affordable vacation options abound outside of timeshare.
Inside Timeshare would like to thank Irene Parker for her article, it is very enlightening and will show owners here in Europe that there are some companies out there who are at least making a sensible effort. Inside Timeshare has published articles on one company which is renowned for not letting people out of there contracts, or if it does charges a hefty price for doing so.
If you have any questions about this or any other article, contact Inside Timeshare and we will be pleased to help. If you require any information about any company you may be thinking of dealing with or just want to know how to find it, Contact us through the comments section, we will then contact you via personal email.