Timeshare industry has been considered on the top list of consumer complaints due to the scams and mis-selling practices involved. The scams operate in various ways targeting prospective buyers and are those owners who are eager to get out of their timeshares. Recently in Spain and other neighboring areas, there are cases reported about a timeshare scam that involves a company accepting illegal deposits from prospective buyers.
In the last three months, the Claims Directive has processed several illegal selling claims on timeshare purchases in Spain, Tenerife, Fuerteventura, Lanzarote, Mallorca, Menorca and Ibiza.
Based on timeshare contracts displayed by the Claims Directive, there are a number of timeshare developers who are still accepting illegal deposits from prospective buyers, which goes against laws set by the European timeshare directive. The banning of timeshare deposit was implemented under the 1994 Timeshare Directive. However, most European countries did not adopt such directive until years later.
Moreover, numerous timeshare developers did not return the initial payment deposits, even though prospective buyers had cancelled within the allotted cooling off period. In Spain, the acceptance of these deposits is considered illegal. However, fraudsters have come up with new ways to work around the directive and operate their illegal deeds.
These days, we usually hear stories about owners trying to get rid of their timeshares. Some of these owners even hire a timeshare transfer company such as the Transfer Smart. While those owners are finding ways to exit from such property, other prospective owners on the other hand are facing a certain kind of scam that involves illegal deposits such as the case mentioned above.