# Help: Parents bought a timeshare



## briant (Jun 23, 2009)

*Jan 13 2011*
Hi everyone,

My family needs desparate help here. My parents were lured into a timeshare purchase while visiting Las Vegas. The timeshare company is RCI. The membership purchased is called "RCI Points". 

It works as follows:
Every year you get a specified amount of points. You use those points towards vacations. If points are not used in a certain year, they can be carried over to the next year. A transaction fee applies for carrying points over for additional years.

Membership dues are paid annually and accure interest of 18%. I'm not sure how much this fee is, I'll have to look at the documentation.

The original amount paid for the "property" was ~$26,000 which includes numerous handling fees.

One vacation package I looked at was $500 for 2 weeks. Flight costs are not included. In addition there is a $677/year maintenance fee.

I'm going through the documentation line by line so that I can explain to my parents exactally what they've gotten themselves into.

Here is the terms and conditions for this "plan" 
http://www.rci.com/docs/KnowledgeBase/Documents/en_US/TermsandConditionsofRCIPoints.pdf

Does anyone have personal experience on how to get out of this kind of mess ? If I can't understand the legalities, I'll get a lawyer. I'll update this original post as I figure out more details. Thanks everyone.

*Jan 16 2011*
Here is an update everyone. It's been a few days since the shock hit me about my parents TS. Unfortunately, we are well past the 5 day recission period so the contract is binding. Since then I've done a few things to help them out. 

1. Helped them realize that the value of the TS they bought was less than a few hundred dollars. I've also outlined the annual costs of the TS.

2. I'm in the process of learning now to sell the TS so that they can relieve themselves from the burden of paying the annual dues.

3. Designed together with my Mom a spreadsheet to give them a better picture of their overall financial situation. First we determined their networth. Second we documented their monthly net income and expenses. From that, I advised them on how to repay back the debt they accumulated from the TS purchase. A quick calculation showed them how much in interest payments they would incurr repaying back the debt.

I would never wish something like this to happen to anyone, and I've been deeply sadened that this happened to my parents. Thanks everyone for the best wishes and advice. I really appreciate it.


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## Plugging Along (Jan 3, 2011)

I could be wrong, but in Canada, there used to be a cooling off period for these types of deals. Usually the time was 14 or 30 days where the buyers could get out of tough. It was usually subject to some penalties or fees though. I'm not sure if they still have this or if it is applicable in the US.

I would look into this quickly.


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## dogcom (May 23, 2009)

I am sure you can buy a house in Vegas for what a time share costs.

These guys offer you a free show and then give you their rip off speech. I did this in 1997 and at first I was nice and then after being pushed enough I told the manager or whatever he was that it was just a big rip off. I was holding myself back from punching him in the face rather then buying the crap he was selling.

I am not sure what they can do except sell it to another sucker at a lower price.


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## atrp2biz (Sep 22, 2010)

A few years ago, my wife and I went down to Orlando and went through TWO presentations. We tried to reason with the reps that it wasn't a good deal by punching through the numbers. Our math couldn't convince them. In any case, we ended up with three nights accommodation, two tickets for three days at Disney and $100 for our time. It was a cheap vacation.


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## Spidey (May 11, 2009)

These timeshares are selling for as little as $500-$1000 on the secondary market, so your parents really got stung. My wife's late father and step-mother bought 3 RCI timeshares in Florida. Nice places, but usually the maintenance costs would pay for alternative accommodation. My wife's step-mother offered to give us one of the timeshares for free and we declined the offer as we didn't want to be obligated to the maintenance payments. 

The only advice that I can give, is that we usually have enough aggravation dealing with our own personal bone-headed decisions. Taking on those of other adults will drive you crazy.


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## kcowan (Jul 1, 2010)

I agree that there is no resale market for TS. So the legal cooling off period is their best bet. I also agree that the parents should sort this out for themselves with advice from their children.


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## canadianbanks (Jun 5, 2009)

I'm sorry to hear for your trouble, but if there's no cooling off period than there's not much you can do I think. Keep in mind that getting a lawyer will be likely very costly, and there's no guarantee it will work.


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## marina628 (Dec 14, 2010)

My advise ship them off to the retirement home immediately and throw away the key ! Just Kidding ,my friends own a time share and they sell off some of their credits to friends and family .They paid $18,000 USD recently for one , plan to use it for half time and let others use it rent of time.
Not the end of the world if the parents can afford it and will use it.


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## OhGreatGuru (May 24, 2009)

According to this web site http://www.enotes.com/everyday-law-encyclopedia/timeshares the cooling off period in Nevada is only 5 business days.


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## DavidJD (Sep 27, 2009)

atrp2biz said:


> A few years ago, my wife and I went down to Orlando and went through TWO presentations. We tried to reason with the reps that it wasn't a good deal by punching through the numbers. Our math couldn't convince them. In any case, we ended up with three nights accommodation, two tickets for three days at Disney and $100 for our time. It was a cheap vacation.


I did this too and it was the worst 2-3 hours of my life. They would send in another goof to come over and point how stupid we were for not taking up this offer.

You should show your parents how many timeshares are available after the heavy handed sales pitch - some are for sale for $1 so long as someone buys the annual fee off their hands so they can walk away.

Having said that my inlaws own two and use them up. They trade them too and whisking away to various destinations. They are really amazing places BUT THEY ARE OFF SEASON. 

I am so sorry for your parents' loss.

I am sure there are American lawyers who can get you out of this and specialize in this company's tactics.


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## Plugging Along (Jan 3, 2011)

I know off topic (a little) where would one find these timeshares being sold $1?


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## Spidey (May 11, 2009)

Plugging Along said:


> I know off topic (a little) where would one find these timeshares being sold $1?


Just did a quick Google search.

http://www.timeshareresalevacations.com/property.asp?Location=$1%20Sale

or 

http://daytona.ebayclassifieds.com/...mond-beach-florida-timeshare-1-nr/?ad=7327309

P.S. I don't know why that 1st link isn't active but if you copy and paste it into the Google search engine it works.


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## the-royal-mail (Dec 11, 2009)

It all seems too good to be true, which means it probably is.


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## spirit (May 9, 2009)

*Timeshare knowledge*

Hi. Your parents were victims of aggressive salesmen who know all the buttons to press. They will have bought a luxury good at "retail" price in a severe recession. It is time to get them educated as to their best options. A very good place is Timeshare Users Group on line. Volunteers with a wealth of knowledge keep up this site. First of all can your parents afford the timeshare? They have certainly bought it and will be held liable for all costs so they need to realize this first of all. No one will buy their timeshare for what they paid for it. They will even have a hard time GIVING it away because very few people want the obligation of yearly payments for 4o years. So they will need to know how to use it, rent it legally etc. Again TUG is the best place to get unbiased knowledge. I know because it worked for me.


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## kcowan (Jul 1, 2010)

FIL bought a 30-year TS in Mexico in 1984, paying $40k USD for 3-weeks. In 2007, we bought a condo outright and sold the 3 weeks for $4k US. The next year, 2009, they raised the maintenance fee to $915/week.

We are so glad to finally get out from under the ongoing costs. Surprisingly, the buyers have remained friends with us, blaming the bad deal on the TS company. We are meeting them for dinner this week.


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## DavidJD (Sep 27, 2009)

This is my favourite title of any thread.

Thanks OP.


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## Larry6417 (Jan 27, 2010)

My condolences to your parents. There is no TS worth what they paid (I own from eBay sales). In the interest of fair marketing, TS should be renamed "recurring debt obligations." I second Spirit's suggestion about TUG. It's far and away the best available source. Here's a sticky thread about selling a TS. http://tugbbs.com/forums/showthread.php?t=44 Unfortunately, I think your parents are past the recission period.


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## briant (Jun 23, 2009)

Larry6417 said:


> My condolences to your parents. There is no TS worth what they paid (I own from eBay sales). In the interest of fair marketing, TS should be renamed "recurring debt obligations." I second Spirit's suggestion about TUG. It's far and away the best available source. Here's a sticky thread about selling a TS. http://tugbbs.com/forums/showthread.php?t=44 Unfortunately, I think your parents are past the recission period.


Thanks for the resources Larry. I have lots of reading to do so get this off of my parents hands. I've updated the OP.


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