You’ve probably heard about timeshare claims and how you can get money back after being scammed. But did you know that the FTC has a process for timeshare claims? If you’re looking to save time and money when purchasing a timeshare, follow these steps.
KNOW YOUR RIGHTS
First, you have to know what your rights are before going through the claims process. The FTC has a website called Your Rights as a Timeshare Owner which provides information about your consumer rights in regards to timesharing. Additionally, you can find this information on their website by searching for “timeshare”. Most importantly, make sure that you register with the FTC and provide your contact information.
KNOW THE PROCESS
First, you have to know what to do when purchasing a timeshare. When looking for a time share, do your research on the company and the resort before buying. Once you’re done, make sure that you read reviews of other people who have bought a timeshare from the same company. Reviews are an important part of your research.
You also need to know what to expect during the process. In order to file a claim with the FTC, you will need:
- The original contract
- A list of all fees and deposits paid
- Proof that you made payments on time for taxes, maintenance fees and points
- Documents proving when you took possession of the room or property
- Documents proving when your ownership ended
After all these steps are completed, you can file a claim with FTC online or in person at their offices in Washington D.C., Atlanta, or Memphis.
KNOW THE FEES
There are fees associated with filing a timeshare claim, but you should know the fee before you file.
- For example, if you’re filing for $3,000 or less, it will cost you $200 to file your claim.
- If your claim is for more than $3,000 and less than $10,000, it will cost you $400 to file your claim.
- If your claim is for more than $10,000 and less than $25,000, it will cost you $600 to file your claim.
- If your claim is for more than $25,000 and less than $50,000, it will cost you $800 to file your claim.
If you don’t want to pay those fees then there are other ways to go about filing a claims:
- You can try using an attorney of legal services such as having one on contingency basis.
- You can also use a firm that offers free representation in exchange for a future referral fee.
The FTC has also provided resources such as the “Timeshare Claim Starter Kit” which covers all aspects of getting started in regards to making a timeshare complaint.
FIGURING OUT HOW MUCH YOU’RE ENTITLED TO
First, you’ll need to calculate how much money you’re entitled to. For example, if you bought a $50 timeshare in 2014 and it’s now worth $5,000, that means you can get half of the difference back for a refund.
Next, determine what your purchase price was. Next, subtract the value of whatever you already got. This is your refund amount.
Now that you know what you’re entitled to and what your purchase price was, calculate how much time your timeshare is worth. For example, let’s say the value of your timeshare is $8 per hour and it’s been used 16 hours this year so far. So now multiply the number of hours used by the value they are worth per hour to get your total refund amount: 8 hours multiplied by $8 equals $64.
GET YOUR MONEY BACK.
The first step to getting your money back from a timeshare is filing a complaint with the FTC. If you haven’t filed a complaint, there are other options for you to consider. You can file a lawsuit or a class action lawsuit. In addition, if you have an attorney that you trust, they may be able to help with filing a lawsuit or class action suit.
Regardless of whether you decide to file the complaint or go through the process of going through litigation, it will take time. The FTC doesn’t usually move quickly on timeshare cases and will give the company many opportunities before deciding on any potential judgments against them.
Buying a timeshare isn’t a decision to be taken lightly or without consideration. Before you sign on the dotted line, make sure you’ve done your homework.