Timeshares can be ticking time bombs
I know there’s at least one person out there who is happy with the timeshare they purchased. There has to be at least one.
Having said that, I have talked to hundreds of consumers over the years who are very sorry they ever let themselves be talked into a timeshare by a wide-tied, fast-talking salesperson.
To me, the whole idea of going on vacation is all about going to new places and discovering new things to see and do, not the same-old, same-old.
Many are seduced into listening to the spiel of the timeshare salespeople in return for a few days of an “all expense paid vacation” in some sub-tropical location. Like the Nibelungenlied and the Song of the Lorelei, the promises of the salespeople might come to no good in the end.
There are basically three reasons proffered to induce a prospect to buy a timeshare:
1. Fixed cost (except for the unpredictable and usually escalating annual maintenance charges);
2. The ability to “trade” timeshare locations with other owners around the world;
3. The availability of the same dates for your vacation, year in and year out.
Upon close examination, and in reality, the above three reasons evaporate like a bad smell in a stiff breeze. There are many, many provisions in your contract that put the buyer of a timeshare at a severe disadvantage. Often, timeshare contracts specifically state that you can’t hold the offering company to any promises a salesperson made and the contract you sign contains all promises. In other words, the new clubhouse, event center and Olympic-sized pool the salesperson promised that is going in next year, may be just so much hot air.
The secondary market for timeshares has collapsed. If you don’t believe me, ask one of your friends who owns a timeshare if they want to sell it. They’ll probably give it to you and throw in a bucket of fried chicken.
Oh, and if you take a loss on the sale of your timeshare, the IRS doesn’t allow you to write it off on your taxes, unlike a loss on real property.
If you’re stuck with an unwanted timeshare, consult with a local attorney who specializes in real estate. It will be money well spent.
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AVISTA: a number of callers have been asking about the sale of Avista to a Canadian company. As a person who believes in the free market, I have no problem with the sale, presuming that the new owners are still required to get Idaho regulatory permission for rate hikes and costly construction projects. As a consumer advocate, the sale to a company outside the U.S. makes me very nervous relative to the quality and responsiveness of the company to consumer problems and complaints. Let’s all keep a close eye on this one.
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BILL’s RANT: When did problems become “issues?” I call a Customer Service (or disservice) Representative when I have a problem with my service, product or bill. The use of the word “issue” is just one more example of language creep. Let’s call it what it is — a PROBLEM!
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Credit or Debit or Secured Credit: What’s the difference? You are always better off using a credit card or a secured credit card for making ANY purchase. Why? Because under the federal Fair Credit Reporting Act, consumers using credit cards can challenge any charge made to their card. The credit card company MUST fully investigate all circumstances relative to the charge. This is not true when you use a debit card. Your bank may or may not allow you to put the transaction on hold while it’s investigated. The bank is not required to look into the charge, no matter how questionable.
Some of us may not “qualify” to get a credit card. You almost certainly can get a secured credit card. This means that you will deposit a few hundred or thousand dollars with the issuer. You are then allowed to charge up to that amount. The clerk at the store has no idea that your card is a secure card. If you choose the right secured card, the company will report your on-time payments to the various credit reporting agencies.
A secured card can be a very useful tool. It provides you the protection of a credit card and helps you establish good things on your credit report.
I have personal experience with this one. A few years ago, due to a very expensive brush with Agent Orange cancer, I ran through all my private insurance coverage, all my savings and all my available credit sources. Finally I was forced to declare Chapter 7 bankruptcy. My credit was so bad that I prayed someone would steal my identity because it would raise my credit score! I mean my credit score was LOW! By the use of a secured card, over the next few years I built my credit score up well over a respectable 700. Since then, I have successfully applied for various cards.
LESSON: Try not to use debit cards. Get a credit card.
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CHECK OUT THE CHARITIES: The other day I was called by a young lady soliciting funds for the Childhood Leukemia Foundation. Upon close questioning, she admitted that only 12 percent of the money collected went to the named foundation, and that’s still not getting to the kids.
I recorded the call. You can hear it on my blog at www.cdapressconsumerguy.com. You can check out any charity at the following websites: CharityWatch, GuideStar and Give Well. If you’re going to give money, check it out first. NEVER give money over the phone. Insist that they mail you printed information. It’s always best to discuss it with family or friends BEFORE giving any money to any organization.
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I have many more interesting cases that I’m working on as The CDA Press Consumer Guy. Call me at (208) 699-0506, email me at CDAPressConsumerGuy@gmail.com or fax me at (866) 362-9266. Also include your full name and a phone number. I am available to speak about consumerism to schools, and local and civic groups.
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Bill Brooks is the CDA Press Consumer Guy and an active Associate Real Estate Associate Broker for Tomlinson-Sotheby’s International Realty in Coeur d’Alene.