Timeshare Scams: Mexico vs US, why are there more situations of fraud in Mexico?
Mexico has one of the worst reputations for scamming innocent vacationers into purchasing timeshare fraudulent timeshare contracts. In this article, we discover why more timeshare scams happen in Mexico than in the US or Canada and what timeshare scam victims can do to resolve their timeshare problem.
There are several reasons why timeshare scams are more prominent in Mexico than they are in the US or Canada.
1) Mexico is still considered a third world country, and they rely heavily on tourism and timeshare sales for the health of their economy. With their beautiful beaches and lush surroundings, it should be easy to sell timeshares based on the inherent qualities of the resort and the destination; however, many timeshare companies in Mexico use fraudulent sales tactics to boost their sales even more. Their rental and resale promises seem too good to be true, and induce clients that wouldn't normally purchase, to take the plunge and invest thousands of dollars.
2) The government in Mexico has very lenient regulations for timeshare companies that do not cover the regulation of sales practices. If a tourist falls victim to timeshare scam in Mexico, the government agencies are not very effective in helping to resolve the problem, because the loss of the income from timeshare would result in less employment and wealth within Mexico.
3) The salespeople in Mexico use high-pressured sales tactics to to ensure that their sales occur on a one-day only basis so that the client does not have time to properly research the company. They are often successful because the clients are on vacation, have let their normal guard down, and do not have time to make an informed decision. One would think that the fraudulent sales practices would inhibit the resort's ability to sell because it would tarnish their reputation, however, most timeshare consumers do not plan in advance to buy a timeshare. By the time that most clients find out that they have been scammed, they are outside of their 5 day cancellation period, and are not sure how to approach cancelling a timeshare in a foreign country.
4) Most victims of timeshare scam in Mexico do not speak Spanish, so the process of cancelling a timeshare in Mexico because very daunting as they cannot communicate effectively with the resort or government agencies. The timeshare scam companies are very aware of this fact, and often use it to their advantage to frustrate complaining clients by not offering English speaking staff. Many timeshare scam victims feel helpless at this point, and give up, but our staff at Mexican Timeshare Solutions can advocate for clients who cannot contact or communicate with the resort.
5) Another difference is that timeshares in the US and Canada are more highly regulated to abide by federal laws than timeshares in Mexico. There are also important organizations, such as ARDA, the American Resort Development Association, that act as a marketing tool for resorts but also provide consumer protection measures by not endorsing companies that are involved in situations of fraud. In addition, the Better Business Bureau in the US and Canada serve as an open forum for clients to rate and review the reputation of the timeshare company in which they plan to purchase. The clients that buy in the US and Canada are typically citizens of those countries, and are aware of their legal rights and the correct avenues to deal with situations of fraud. All of these factors help to limit the number of timeshare scams that occur in the US and Canada, and facilitate the cancellation process if the client has been defrauded.
6) Unfortunately, if US and Canadian citizens have previously owned timeshares in their own country, and have had successful experiences with those timeshares, they are more susceptible to being scammed by a timeshare company in Mexico. As they have already purchased from a salesperson that accurately outlined their timeshare details, they place more trust in the fact that what the Mexican timeshare salespeople promise is true. This can put them in a potentially vulnerable position if they encounter a Mexican timeshare salesperson that lies in order to increase their sales. With any financial investment of this magnitude, whether it is in the US, Canada, or Mexico, it is important not to take the salesperson's word at face value. All consumers must take the time to research the timeshare company, and check with current timeshare owners to see if it is a reputable company to invest in for their vacation needs. All one-day offers sold under high pressure circumstances should be avoided, or rejected as this is a prime indicator that the organization is a scam.
There are several reasons why timeshare scams are more prominent in Mexico than they are in the US or Canada.
1) Mexico is still considered a third world country, and they rely heavily on tourism and timeshare sales for the health of their economy. With their beautiful beaches and lush surroundings, it should be easy to sell timeshares based on the inherent qualities of the resort and the destination; however, many timeshare companies in Mexico use fraudulent sales tactics to boost their sales even more. Their rental and resale promises seem too good to be true, and induce clients that wouldn't normally purchase, to take the plunge and invest thousands of dollars.
2) The government in Mexico has very lenient regulations for timeshare companies that do not cover the regulation of sales practices. If a tourist falls victim to timeshare scam in Mexico, the government agencies are not very effective in helping to resolve the problem, because the loss of the income from timeshare would result in less employment and wealth within Mexico.
3) The salespeople in Mexico use high-pressured sales tactics to to ensure that their sales occur on a one-day only basis so that the client does not have time to properly research the company. They are often successful because the clients are on vacation, have let their normal guard down, and do not have time to make an informed decision. One would think that the fraudulent sales practices would inhibit the resort's ability to sell because it would tarnish their reputation, however, most timeshare consumers do not plan in advance to buy a timeshare. By the time that most clients find out that they have been scammed, they are outside of their 5 day cancellation period, and are not sure how to approach cancelling a timeshare in a foreign country.
4) Most victims of timeshare scam in Mexico do not speak Spanish, so the process of cancelling a timeshare in Mexico because very daunting as they cannot communicate effectively with the resort or government agencies. The timeshare scam companies are very aware of this fact, and often use it to their advantage to frustrate complaining clients by not offering English speaking staff. Many timeshare scam victims feel helpless at this point, and give up, but our staff at Mexican Timeshare Solutions can advocate for clients who cannot contact or communicate with the resort.
5) Another difference is that timeshares in the US and Canada are more highly regulated to abide by federal laws than timeshares in Mexico. There are also important organizations, such as ARDA, the American Resort Development Association, that act as a marketing tool for resorts but also provide consumer protection measures by not endorsing companies that are involved in situations of fraud. In addition, the Better Business Bureau in the US and Canada serve as an open forum for clients to rate and review the reputation of the timeshare company in which they plan to purchase. The clients that buy in the US and Canada are typically citizens of those countries, and are aware of their legal rights and the correct avenues to deal with situations of fraud. All of these factors help to limit the number of timeshare scams that occur in the US and Canada, and facilitate the cancellation process if the client has been defrauded.
6) Unfortunately, if US and Canadian citizens have previously owned timeshares in their own country, and have had successful experiences with those timeshares, they are more susceptible to being scammed by a timeshare company in Mexico. As they have already purchased from a salesperson that accurately outlined their timeshare details, they place more trust in the fact that what the Mexican timeshare salespeople promise is true. This can put them in a potentially vulnerable position if they encounter a Mexican timeshare salesperson that lies in order to increase their sales. With any financial investment of this magnitude, whether it is in the US, Canada, or Mexico, it is important not to take the salesperson's word at face value. All consumers must take the time to research the timeshare company, and check with current timeshare owners to see if it is a reputable company to invest in for their vacation needs. All one-day offers sold under high pressure circumstances should be avoided, or rejected as this is a prime indicator that the organization is a scam.
