Q: My elderly, cognitively impaired, partially blind spouse traveled to Cabo San Lucas, where she was in the care of friends. She attended a timeshare presentation at the Pueblo Bonito Sunset Beach Resort & Spa and made a down payment of $2070 for an $8280 timeshare.According to my wife, these are some key points the salespeople used:
- Rental income was presented as a “sure thing."
- If she didn’t want the timeshare after a period of time, it would be easy to resell it for a profit.
- There is worldwide access to other properties through an associate group—after many months, we have still not received any information about this.
- She was told she could not cancel under any circ*mstances, when there was actually a five-day cancellation clause.
When my wife returned home, we tried to cancel, but were unsuccessful. Anything you could do to get the deposit back would be greatly appreciated.
A: The first thing to remember about any purchase is that verbal promises are difficult to verify, particularly when you sign a contract that does not make the same claims you may have heard in a presentation. In most cases, it’s nearly impossible to secure a refund for a timeshare, unless you cancel the contract within the rescission period—something I once did myself. I actually returned the contract by hand and forced the company to sign and date it when I exercised my right to cancel. It then took 45 days, numerous phone calls and two letters, the second certified and copied to the Washington State Attorney General, to get my money back.
Still, even though our reader did not meet the conditions to cancel the contract, we decided to pursue this case because his wife’s doctor sent a letter that clearly stated she is cognitively impaired. Given the circ*mstances, it seemed reasonable to ask Pueblo Bonito to consider a refund. In less than a week, it agreed to return the deposit, which was a welcome surprise for all. It does offer proof that, as I said before when I talked about how to complain, sometimes when you give people the opportunity to do the right thing, they do the right thing.
There are various reasons people decide they want to cancel a timeshare contract, from buyer’s remorse, to an incorrect assessment of disposable cash, to a property and/or benefits that don’t live up to promises made by salespeople. If you happen to be interested in a timeshare or vacation club, or you’re about to take advantage of a “free” vacation that requires you to sit through a presentation, here are a few things to keep in mind:
- No matter what a salesperson says, read the contract. This isn’t a $300 night in a hotel room. It’s likely to be a purchase in the thousands. Make sure you know exactly what you’re signing up for and whether you have any remedies should problems occur or you wish to cancel.
- If it’s a timeshare or club that allows you to use various properties at any time of the year, find out if there are blackout dates or upcharges for certain periods.
- Make sure you know what additional charges come with your purchase, such as cleaning and maintenance fees or potential assessments for property improvements.
- Unless you know you’re getting exactly what you want, the best sales pitch to walk away from is the one with the most pressure. Give yourself time to think about whether the deal works for you. While I can’t guarantee this, most likely, unless the entire inventory miraculously sells overnight, you can get the same deal the next day. Yes, the salespeople will probably tell you the opportunity will evaporate if you walk away, but if there was a commission on Friday based on a given price, I bet there’s the same commission on Saturday.
- Use the cooling off period to research the secondary market, where you might find the same timeshare or club membership for less. When I searched Ebay a few minutes ago, there were 1,126 timeshare listings.
- If you do buy on the secondary market, do your research to make sure you’re dealing with a reputable owner or resale company.
- Don’t sign a contract without a cancellation period. It gives you a little more time to think about whether it works for you and to make sure you’re getting everything you expect.
- If you do decide to cancel, follow all of the required steps and make sure you receive an acknowledgment that your request for cancellation was received.
- If at all possible, pay with a credit card. It should offer protection if you discover that the timeshare or club does not deliver what was stated in the contract, or if you have proof of cancellation and the company won’t return your money. Remember that there is a time limit for disputes, usually 60 days. Read your credit card agreement so you know how much time you have.
Timeshares and vacation clubs work well for many people. As a friend of mine says, it forces him to take a vacation every year to make sure he uses his points. For others, they’re too limiting, tying them to a particular place, time or type of accommodation. Before you purchase one, think about whether it meets your style of travel. If it does, don’t rush into the first one that comes along. There are many options and, no matter what a salesperson says, you can take the time to make an informed decision.
Have a travel question you want answered? Email ombudsman@cntraveler.com, or tweet us @CNTraveler #dearombudsman.
