The Better Business Bureau is warning timeshare owners who are trying to sell or rent their timeshares to beware of a Las Vegas-based company, City Resorts, after two Wisconsin residents lost almost $3,500 in an alleged scam.
A Fond du Lac resident and an Oconomowoc resident paid $1,890 and $1,560, respectively, to City Resorts after the company told them that it had a buyer for their timeshares. However, after paying the fee, buyers for the timeshare never materialized, as promised.
City Resorts has been the subject of 23 complaints from around the country since March 2011 and has an “F” rating with the BBB for failing to respond to complaints.
Complainants allege that City Resorts contacts consumers stating it has found a buyer for their timeshare. Complainants are then told to send a cashier’s check for up to $6,000 for closing costs or processing fees. Complainants report that no buyers or renters emerged and customers were unable to get responses to calls or their money back.
The Federal Trade Commission (FTC) also has a pending government action against City Resorts’ parent company, Red Solutions of Orlando, Florida, for similar issues – that it misrepresented to numerous consumers that it had a buyer for their timeshare when it didn’t.
Nationwide, BBBs processed 2,804 complaints on timeshare resale services in 2010.
“Timeshare owners interested in selling or renting their timeshare should be wary of a company that claims a buyer is waiting, and then asking for an upfront fee,” said Ran Hoth, CEO and president for the BBB of Wisconsin. “We often see complaints from consumers who say the service wasn’t provided and they’re unable to get a refund.”
