Utah Sen. John Curtis joined personal finance expert Dave Ramsey on “The Ramsey Show” on Friday to discuss the timeshare industry and Curtis’ plan to protect consumers through the Timeshare Transparency Act.
Ramsey called the timeshare industry a “legal fraud.”
In interviews, Ramsey and Curtis highlighted years of financial data and consumer complaints that show most timeshare buyers regret their decisions but are locked into long-term contracts with rising fees.
Ramsey said 85 percent of timeshare buyers regret their purchase but are unable to cancel due to a short revocation window.
“Let’s face it, if 85 percent of people regret getting into it, there needs to be some way to get them out of it,” Curtis said.
Ramsey said many people try to get out of their timeshares by selling them because they can’t get out of the contract.
“No one is quitting and there’s no way to sell these stupid things because no one wants to buy them. There are hundreds of them on eBay for $1,” he said.
Both agreed that many seniors who vacation away from people they trust are tied to contracts.
“When they get into these very, very high-pressure sales techniques, they’re removed from the normal support structure, and then they may make the wrong decision, and then they don’t have the opportunity to change that decision,” Curtis said. “That’s wrong.”
The Timeshare Transparency Act seeks to regulate the timeshare business while giving consumers a clearer picture of what they are actually purchasing.
The legislation was recently introduced by Curtis and California Democratic Sen. Adam Schiff. Curtis briefly explained its purpose to Ramsay.
“Firstly, you should know what you are buying – there should be transparency; secondly, you should know whether what you are buying is going to fundamentally change; and thirdly, you should be able to change your mind within an agreed-upon timeframe.”
The bill includes a 14-day free cancellation period, which Ramsey claims will reduce timeshare sales by 70%.
