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Better Business Bureau Consumer Alert -

Posts Tagged ‘upfront fee’

BBB Alerts Consumers to Timeshare Postcard Circulating Locally

Thursday, September 15th, 2011

Better Business Bureau of Southern Arizona is alerting consumers to Southwest Airlines-branded mailers being sent out across Tucson, claiming the recipient has been “selected” to receive two round trip airfares on Southwest Airlines.

Consumers who call the number on the back of the card are told that in order to claim the airline vouchers they must own a timeshare, and they must attend a seminar this Saturday, Sunday or Monday at the Hilton Tucson East, located at 7600 E Broadway Blvd, in Tucson.

BBB advises consumers that the offer of airlines tickets in the mailer is not in any way affiliated with Southwest Airlines, despite the company’s logo appearing on the front of the card. In BBB’s experience “airline vouchers” given as incentives for attending presentations often include hidden fees and a numerous blackout dates for travel.

In the past two years BBB has seen a marked increase in timeshare related scams across the country. The scam usually involves a reseller that charges timeshare owners thousands of dollars upfront, promising to quickly sell the timeshare property. Victims of these scams tell BBB that a buyer for the timeshare never materializes, and the reseller often disappears, or points to fine print in the contract as a reason to not refund the upfront fee.

BBB offers the following advice to timeshare owners who are looking for help in selling their timeshare:

Use a Business You can Trust – Make sure the timeshare reseller you use is a BBB Accredited (more…)

Timeshare Owners Warning: Be Wary of City Resorts

Wednesday, September 14th, 2011

Better Business Bureau of Southern Arizona is warning timeshare owners who are trying to sell or rent their timeshares to beware of Las Vegas-based company, City Resorts.

City Resorts has been the subject of 23 complaints from around the country since March 2011 and holds an F rating with BBB for failing to respond to complaints.

Complainants allege that City Resorts contacts consumers stating they’ve found a buyer for their timeshare. Complainants are then told to send a cashier’s check between $2,000-$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.

“After City Resorts got my money, I never heard from them again,” bemoaned a consumer from Massachusetts who lost $2,000. “They completely fooled me into believing I had a buyer for my timeshare.”

BBB representatives confirm that the phone number, website, and email have been disconnected and the current address is a mail-drop. Nationwide, BBBs processed 2,804 complaints on timeshare resale services in 2010.

“Timeshare owners who want to sell or rent their timeshare should be wary of timeshare resale services that pressure customers to pay thousands of dollars up front, claiming that buyers are at hand,” said Kim States, BBB President. “Too often, the companies don’t deliver and customers can’t get refunds.” (more…)

Smart Solutions Financial Services Promised To Fix Credit, Broke Promises Instead, Customers Tell BBB

Tuesday, August 30th, 2011

Frustrated customers of a Smart Solutions Financial Services company say the business abandoned them after charging them hundreds of dollars each to repair their credit or help them buy homes.

One woman said her involvement with Smart Solutionsultimately could cost her more than $20,000 if she is forced out of her house.  Another said that problems with the company could jeopardize the family’s chances of adopting a child by further damaging their credit.  Still another disgruntled customer warned: “They robbed me without a pistol.”

Better Business Bureau of Southern Arizona suggests caution when dealing with Smart Solutions, which lists an address at 940 Lemay Ferry Rd. in South St. Louis County.  Officers of the company have been identified as Steve Scharf, owner and president; Michael Hathman, vice president, and Terry K. Madden, area manager. BBB was unable to determine whether all of the officials remain with the company.

The company has an “F” grade with the BBB, the lowest grade possible, after generating more than 30 customer complaints, about half of them since March. Consumers claim that representatives of the company took up-front payments – usually ranging from $800 to $1,500 each – to improve their poor credit ratings and assist them in purchasing a home through a lease-to-own program.  Customers said Smart Solutions did little or nothing to help them and then refused to refund their money.

Kim States, BBB President, said the actions of Smart Solutions reported to the BBB have been “nothing (more…)