New Florida Resale Law

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Well, almost law . . . awaiting governor action.

[gandalf252002 Senior Member Find all posts View Profile Close gandalf252002]

An interesting, albeit dry read

Of course, it comes with mixed reactions, (mostly positive) in that I like the idea of getting rid of the frauds, PCC's etc. On the flipside, with an already small resale market does anyone else see this possibly having an adverse effect?

Is this going to make things more difficult for legitimate resellers like Jim and Richard? Not knowing who wrote this proposed bill, is it possible that this is the developers influencing politicians, or simple naivety in order to cripple the low cost resale market?

Well, almost law . . . awaiting governor action.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

I guess I don't have to say that if the legitimate industry dealt with resales responsibly, there would be no need for scam resale companies.

Yeah, I told Ms. Bondi, and Florida legislators and regulators that.

[sbkyoshi Member Find all posts View Profile Close sbkyoshi]

We received an email about this in August '11.

It is intended to attack scam "resale" companies. NOT legitimate resale companies that are actually making transactions that benefit the previous owner.

Q&A
Q: What is the Timeshare Resale Accountability Act?
A:This is the most comprehensive piece of legislation in the US regarding timeshare resales. It protects consumers and our industry. Florida's Attorney General is going after those unscrupulous companies with deceptive practices.

Q: What does the proposed legislation provide?
A: The key components include disclosure of all terms and conditions of services offered by timeshare resale companies, a seven-day rescission right for consumers to cancel a contract for timeshare resale services, regulation of timeshare transfer and rescue companies and penalties for companies who continue their fraudulent practices.

Q: What is Wyndham's position on the Timeshare Resale Accountability Act?
A: (quote from Franz Hanning about resale companies being held to certain standards like developers are, etc.) Additionally this ground-breaking legislative effort to aggressively pursue an end to these DECEPTIVE practices is a great moment for consumers and the timeshare industry.

So long story short it's to attack those companies that claim they will sell your timeshare, charge you an upfront fee, and then basically do nothing for you. It's to attack the companies that profit from blatantly deceiving people who are desperate to get rid of their ownerships.

At least that's what they're telling us. It's supported by ARDA & AARP also.

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

I spoke with Eisnaugle briefly about this bill. It was handed to him by the Attorney General as a prepared piece. He really got involved though, so I truly commend him for his research and concern as well as some of the changed that he worked on to improve the final version (his neighbor is actually a timeshare resale broker so I have to assume that also helped!)...

He stated that the primary intention was to give "teeth" to the AG's office to try and target non-licensed marketers. In the past, it has been difficult since the state agencies really haven't been working together (imagine that!) and timeshare resale fraud has been a bit of a hot potato passed from dept to dept. In reality, most of the fraud that occurs in the industry is in reality telemarketing fraud- and just touches on real estate and deceptive advertising. Since the "advertising" companies don't actually sell anything, normal real estate reguatations don't come into play. And since most of the victims sign and return "marketing" contracts, there is rarely ever any proof that they were lied to on the phone...

I don't expect this law to have any negative impact on legitimate resales. As a licensed brokerage, there is already a tremendous amount of regulation that governs our transactions so most of this bill is just business as usual for brokers.

What this bill does is create guidelines and "jurisdiction" for the AG to target the non-brokerage "timeshare resale marketers". In other words, this helps to level out the playing field and creates similar disclosure and rescission mandates that the non-licensed companies will have to follow.

I don't think this legislation will really do anything to stop the naked fraud. Those individuals and companies are already breaking the law, so additional legislation won't slow them down. However, hopefully it will make it easier for the AG to take action against the con artists when they are discovered.

The area's I'm still concerned with are the potential loopholes..

A “resale service provider” is defined as any person who uses unsolicited telemarketing, direct mail, or email in connection with the offering of resale brokerage and/or advertising services to owners of timeshare interests. This definition explicitly states that it does not include developers, managing entities, or exchange companies, to the extent that they offer brokerage and/or advertising services to owners of timeshare interests in their own timeshare plans or members of their own exchange programs.

There is quite a bit of ambiguity herein.. If the customer contacts the advertiser from a website or billboard- does that exempt them from disclosure requirements? Also, what qualifies a company as an "exchange company"?

As always, the scams will likely find ways around the regulations- but hopefully the ones that don't have quality legal counsel will leave room for the AG to sue them, and if nothing else this should help fill the AG's coffers when settlement arrangements are reached..

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

I understand why legislators and authorities don't understand it, that the resale scam fiasco is because the legitimate TS industry does not provide an exit strategy, and I understand why some people don't feel the people that sell timeshares should be obligated to their customers past taking their money.

I understand why people who are enamored with their timeshares don't want to think about the day when they won't be, or what they will do when all it means to them is money out of their pocket.

But, that does not change the fact that that is why TS owners are ripe to be plucked when they want to get out . . . because no way to do that has been provided.

If someone bought the very latest unit in Orlando today, the best on the market, in two weeks they would have a hard time getting rid of it for any price. Most likely they would have to pay a PCC to take it off their hands.

[Jasonb334 Member Find all posts View Profile Close Jasonb334]

This definition explicitly states that it does not include developers, managing entities, or exchange companies, to the extent that they offer brokerage and/or advertising services to owners of timeshare interests in their own timeshare plans or members of their own exchange programs.

The scams, fraud and deceit starts at the top of the food chain. It will be a great day when they finally pass some legislation in favor of the consumer over the developer. It would really be eye awakening if 20/20 or other media outlets would tape or record a timeshare pitch from a "developer".

ARDA is a joke and it's about time the hundreds of thousands of timeshare owners that pay into ARDA expose ARDA for what they truly stand for, "the developer" and not the consumer. More smoke and mirrors!

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Wow! You don't even sound like you got a few good years out of it.

[Jasonb334 Member Find all posts View Profile Close Jasonb334]

JLB...
Actually somewhere close to 12 years... GREAT family vacations and reasonable MF increases. Never fell for the BS point system and warned others as I could see the writing on the wall. I've attended "several" presentations and they are so filled with lies and misleading information. I am pretty real estate savvy so I feel bad for the average vacationer that just goes in and expect the truth out of a reputable resort, because realistically that is who they think is selling the deal.... the deal of a lifetime... haha

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

JLB...
Actually somewhere close to 12 years... GREAT family vacations and reasonable MF increases. Never fell for the BS point system and warned others as I could see the writing on the wall. I've attended "several" presentations and they are so filled with lies and misleading information. I am pretty real estate savvy so I feel bad for the average vacationer that just goes in and expect the truth out of a reputable resort, because realistically that is who they think is selling the deal.... the deal of a lifetime... haha

Why do you think it is that when so many who have been timesharing for so long now see it for what it is, others don't seem to be able to see it at all?

Experience maybe? Or lack or bad experiences? Or lack of a comparison? Or . . .

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Yeah, I told Ms. Bondi, and Florida legislators and regulators that.

Their reply is below. Maybe if enough people sent them similar ideas concerning resales, and the lack of the legitimate industry providing an exit strategy, they will take note.

If any of this reply should not be posted, feel free to do your magic eraser thingie.

Mr. (Me),

Thank you for following up with the Florida Attorney General's Office
regarding the timeshare and timeshare resale industries. I understand
your frustration, and appreciate your persistence. We have taken your
comments under advisement, and will retain your information in our
consumer files.

If you have not already done so, I suggest that you reach out to the
Florida Department of Business and Professional Regulation (DBPR),
Division of Florida Condominiums, Timeshares, and Mobile Homes. Attached
below, you will find contact information for the DBPR or you can visit the
agency's website for more information:

LSCMH Timeshare FAQs
LSCMH Timeshare FAQ Resales

In addition, timeshare resales is the number one complaint the Attorney
General's Office has received in the past two years. That is why Attorney
General Bondi joined Senate Majority Leader Andy Gardiner (R-Orlando) and
Representative Eric Eisnaugle (R-Orlando) to unveil a legislative
initiative that will protect consumers from timeshare resale fraud. The
bill strengthens existing laws by addressing unfair and deceptive
marketing and advertising practices by timeshare resale companies. If you
would like more information, please review the following link to the
Attorney General's website:

News Release - Attorney General Bondi Unveils Legislative Initiative to Protect Consumers from Timeshare Resale Fraud

We also encourage you to contact your legislative delegation to convey
your views on this issue. The Florida Legislature's website provides
contact information for senators and representatives, as well as
legislative committees:

The Florida Senate - The Florida Senate
Florida House of Representatives - MyFloridaHouse.gov

Again, thank you for contacting Attorney General Bondi's Office.

Sincerely,

Office of Citizen Services
Florida Attorney General's Office
The Capitol, PL-01
Tallahassee, Florida 32399-1050
Telephone: (850) 414-3990
Toll-free in Florida: (866) 966-7226
Website: Florida Attorney General - Home Page

[Jasonb334 Member Find all posts View Profile Close Jasonb334]

Why do you think it is that when so many who have been timesharing for so long now see it for what it is, others don't seem to be able to see it at all?

Experience maybe? Or lack or bad experiences? Or lack of a comparison? Or . . .

No, I just think it is the euphoria of being relaxed on vacation in a very nice place, you let your guard down, and then being told whatever they can think of to make a deal. They make everything smell like roses, show you the Taj Mahal and when you ask questions they will mislead you or spin it so it sounds like such a wonderful offer and one that you will not get again if you do not sign today....and we will finance it for you (at 14%).

I think that most people that make it out of the presentation w/o dotting the line, think about the offer and then do some research and typically do not buy. That's why its such a "hard sell" because they know that 99% will not return. This is how they are trained and they deal with new vacationers everyday....so maybe 1,000 presentation annually versus that first-time presentation that they entice you to come to.