Summer scamwatch: timeshare fraud

Stay one step ahead of the fraudsters this summer with our series of articles on the scams they use to trick holidaymakers out of their hard-earned cash.

This week, timeshare frauds that include the sale of non-existent properties.

How does it work?
Timeshare property companies do not have the best reputation, probably because a lot of them make impossible promises to convince holidaymakers - and people in the UK - to invest. That's not the worst of it, though.

Scams related to timeshare properties include when people are invited to a presentation where they will receive a gift or prize, before being asked to pay an administration fee that actually more than covers the cost of this "gift" and being pressured into signing a timeshare contract.

In other cases, the property being marketed does not exist, while in many instances it falls well below the standards described.

Timeshare owners are also often targeted by fraudsters who claim they can sell it on for a fee, but in reality simply take the money and run.

How can I avoid being caught out?
It is always sensible to be wary of any unsolicited letters, phone calls or emails from people trying to sell you something or asking for your personal details - even if it supposedly to claim a prize.

If you are interested in investing in a timeshare property, you should also research the company and the development thoroughly, as well as the rental market, before signing anything.

Never sign anything on the spot - always get a lawyer to look over the contract first. And make sure all the things you are promised verbally are included in it.

It is worth pointing out that the timeshare resale market is virtually non-existent, something to think about if you are considering investing or if you are contacted by a company claiming to be able to sell yours for you.

I've been defrauded. What should I do?
If you are caught out by a fraudulent timeshare company, you should report it immediately to Action Fraud www.actionfraud.police.uk (0300 123 2040). You should also cease contact with the fraudsters immediately.

Under the Timeshare Regulations 2010, all timeshare agreements signed in the UK are subject to a 14-day cooling off period, while those signed elsewhere in the European Union come with 10 days to change your mind.

So make use of this right if you feel you have made the wrong decision, and cancel the agreement in writing (preferably by recorded delivery).

Other common scams
Holiday club fraud
Lottery fraud
Holiday fraud