In the U.S., there are up to 200,720 timeshare units. Approximately 3% of the American population owns one of these timeshare units, and many regret buying them almost as soon as the ink is dry on their contract.
Timeshare donation is one of the most common suggestions made to those who want to cancel timeshare contracts. Unfortunately, timeshare donation comes with its own fair share of problems for timeshare owners.
Timeshare Donations: Beware Of The Risks
You may have heard of timeshare resale scams who steal the money of unsuspecting timeshare owners looking to get out of their timeshare contracts. But timeshare donation scams are just as much of a risk as timeshare resale scams.
In fact, in 2015, the U.S. Justice Department filed a lawsuit for tax fraud against two Bozeman residents who ran a timeshare donation scam.
For five years, siblings James and Suzanne Tarpey ran Donate for a Cause, a timeshare donation scam that allowed timeshare owners to get rid of their timeshares. Timeshare owners would pay up to $2,000 in resort closings and transfer ownership of the timeshares to Donate for a Cause.
Appraisers then illegally inflated the value of the timeshare properties to give customers larger tax deductions. Donate for a Cause then sold the timeshares online for a low price. The Tarpeys sold more than 5,500 timeshares and made up to $2.2 million.
Most timeshares don’t retain any of their value once sold. It’s actually for this reason that the Department of Justice was tipped off by the Donate for a Cause scam. Timeshare owners may put themselves at risk for these types of scams when they choose to donate their timeshares or sell them.
Get Rid Of Your Timeshare Safely
When you’re looking to figure out how to cancel timeshare contracts, you’re going to face the risk of running into timeshare scams. It’s for this reason that it may be in your best interest to hire a timeshare cancellation attorney.
A timeshare cancellation attorney can help you get out of a timeshare without falling victim to donation scams. To learn more about how to cancel timeshares or to receive timeshare advice, contact the law offices of Susan Budowski today for a consultation.